Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 22, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33089 | ||
Entity Registrant Name | EXLSERVICE HOLDINGS, INC. | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,109,568,361 | ||
Entity Common Stock, Shares Outstanding | 33,474,596 | ||
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, 2020. | ||
Entity Central Index Key | 0001297989 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 218,530 | $ 119,165 |
Short-term investments | 184,286 | 202,238 |
Restricted cash | 4,690 | 5,453 |
Accounts receivable, net | 147,635 | 171,864 |
Prepaid expenses | 11,344 | 13,246 |
Advance income tax, net | 5,684 | 4,698 |
Other current assets | 37,109 | 24,594 |
Total current assets | 609,278 | 541,258 |
Property and equipment, net | 92,875 | 79,142 |
Operating lease right-of-use assets | 91,918 | 86,396 |
Restricted cash | 2,299 | 2,426 |
Deferred tax assets, net | 7,749 | 11,855 |
Intangible assets, net | 59,594 | 73,982 |
Goodwill | 349,088 | 349,529 |
Other assets | 32,099 | 36,016 |
Investment in equity affiliate | 2,957 | 2,484 |
Total assets | 1,247,857 | 1,183,088 |
Current liabilities: | ||
Accounts payable | 6,992 | 6,564 |
Current portion of long-term borrowings | 25,000 | 40,867 |
Deferred revenue | 32,649 | 13,436 |
Accrued employee costs | 67,645 | 68,885 |
Accrued expenses and other current liabilities | 66,410 | 74,017 |
Current portion of operating lease liabilities | 18,894 | 24,148 |
Income taxes payable, net | 3,488 | 1,432 |
Total current liabilities | 221,078 | 229,349 |
Long-term borrowings, less current portion | 201,961 | 194,131 |
Operating lease liabilities, less current portion | 84,874 | 74,709 |
Income taxes payable | 1,790 | 1,790 |
Deferred tax liabilities, net | 847 | 966 |
Other non-current liabilities | 18,135 | 12,142 |
Total liabilities | 528,685 | 513,087 |
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, 38,968,053 shares issued and 33,559,435 shares outstanding as of December 31, 2020 and 38,480,654 shares issued and 34,185,241 shares outstanding as of December 31, 2019 | 39 | 39 |
Additional paid-in capital | 420,976 | 391,240 |
Retained earnings | 641,379 | 551,903 |
Accumulated other comprehensive loss | (74,984) | (84,892) |
Total including shares held in treasury | 987,410 | 858,290 |
Less: 5,408,618 shares as of December 31, 2020 and 4,295,413 shares as of December 31, 2019, held in treasury, at cost | (268,238) | (188,289) |
Stockholders' equity | 719,172 | 670,001 |
Total equity | 719,172 | 670,001 |
Total liabilities and stockholders’ equity | $ 1,247,857 | $ 1,183,088 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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) | 38,968,053 | 38,480,654 |
Common stock shares outstanding (in shares) | 33,559,435 | 34,185,241 |
Held in treasury at cost (in shares) | 5,408,618 | 4,295,413 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Statement [Abstract] | ||||
Revenues, net | $ 958,434 | $ 991,346 | $ 883,112 | |
Cost of revenues | [1] | 623,936 | 655,490 | 584,855 |
Gross profit | [1] | 334,498 | 335,856 | 298,257 |
Operating expenses: | ||||
General and administrative expenses | 113,891 | 126,909 | 116,202 | |
Selling and marketing expenses | 60,123 | 71,842 | 63,612 | |
Depreciation and amortization expense | 50,462 | 51,981 | 48,566 | |
Impairment and restructuring charges | 0 | 8,671 | 20,056 | |
Total operating expenses | 224,476 | 259,403 | 248,436 | |
Income from operations | 110,022 | 76,453 | 49,821 | |
Foreign exchange gain, net | 4,432 | 3,752 | 4,787 | |
Interest expense | (11,190) | (13,612) | (7,227) | |
Other income, net | 12,065 | 16,507 | 12,989 | |
Income before income tax expense and earnings from equity affiliates | 115,329 | 83,100 | 60,370 | |
Income tax expense | 25,626 | 15,172 | 3,397 | |
Income before earnings from equity affiliates | 89,703 | 67,928 | 56,973 | |
Loss from equity-method investment | 227 | 269 | 247 | |
Net income attributable to ExlService Holdings, Inc. stockholders | $ 89,476 | $ 67,659 | $ 56,726 | |
Earnings per share attributable to ExlService Holdings, Inc. stockholders: | ||||
Basic (in dollars per share) | $ 2.61 | $ 1.97 | $ 1.65 | |
Diluted (in dollars per share) | $ 2.59 | $ 1.95 | $ 1.62 | |
Weighted-average number of shares used in computing earnings per share: | ||||
Basic (in shares) | 34,273,388 | 34,350,150 | 34,451,008 | |
Diluted (in shares) | 34,555,164 | 34,732,683 | 35,030,984 | |
[1] | Exclusive of depreciation and amortization expense. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 89,476 | $ 67,659 | $ 56,726 | |
Other comprehensive income/(loss): | ||||
Unrealized gain/(loss) on cash flow hedges | 12,665 | 8,773 | (13,724) | |
Foreign currency translation loss | (547) | (2,857) | (31,798) | |
Retirement benefits | (2,401) | (2,539) | 382 | |
Reclassification adjustments | ||||
Gain on cash flow hedges | [1] | (801) | (3,951) | (3,149) |
Retirement benefits | [2] | 394 | (159) | (153) |
Income tax benefit/(expense) relating to above | [3] | 598 | (692) | 10,685 |
Total other comprehensive income/(loss) | 9,908 | (1,425) | (37,757) | |
Total comprehensive income | $ 99,384 | $ 66,234 | $ 18,969 | |
[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 - Derivatives and Hedge Accounting 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 - Employee Benefit Plans to the consolidated financial statements. | |||
[3] | These are income tax (expense)/benefit recognized on cash flow hedges, retirement benefits and foreign currency translation gains/(losses). Refer to Note 22 - Income Taxes to the consolidated financial statements. |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive (Loss)/Income | Accumulated Other Comprehensive (Loss)/IncomeCumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance | Non - Controlling Interest | Non - Controlling InterestCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2017 | 36,790,751 | 36,790,751 | (2,902,018) | 2,902,018 | ||||||||||||
Beginning balance at Dec. 31, 2017 | $ 600,045 | $ 454 | $ 600,499 | $ 37 | $ 37 | $ 322,246 | $ 322,246 | $ 427,064 | $ 454 | $ 427,518 | $ (45,710) | $ (45,710) | $ (103,816) | $ (103,816) | $ 224 | $ 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) | (674,604) | (726,050) | ||||||||||||||
Acquisition of treasury stock | $ (43,109) | $ (43,109) | ||||||||||||||
Allocation of equity component related to issuance costs on convertible notes | 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 | 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) | (643,486) | (667,345) | ||||||||||||||
Acquisition of treasury stock | $ (41,364) | $ (41,364) | ||||||||||||||
Allocation of equity component related to issuance costs on convertible notes | (13) | (13) | ||||||||||||||
Other comprehensive income (loss) | (1,425) | (1,425) | ||||||||||||||
Purchase of non-controlling interest | (232) | 18 | (250) | |||||||||||||
Net income | $ 67,659 | 67,659 | ||||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 34,185,241 | 38,480,654 | (4,295,413) | |||||||||||||
Ending balance at Dec. 31, 2019 | $ 670,001 | $ 39 | 391,240 | 551,903 | (84,892) | $ (188,289) | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Stock issued against stock-based compensation plans (in shares) | 487,399 | |||||||||||||||
Stock issued against stock-based compensation plans | 1,501 | 1,501 | ||||||||||||||
Stock issued, business acquisition | 0 | |||||||||||||||
Stock-based compensation | $ 28,235 | 28,235 | ||||||||||||||
Acquisition of treasury stock (in shares) | (1,085,153) | (1,113,205) | ||||||||||||||
Acquisition of treasury stock | $ (79,949) | $ (79,949) | ||||||||||||||
Other comprehensive income (loss) | 9,908 | 9,908 | ||||||||||||||
Net income | $ 89,476 | 89,476 | ||||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 33,559,435 | 38,968,053 | (5,408,618) | |||||||||||||
Ending balance at Dec. 31, 2020 | $ 719,172 | $ 39 | $ 420,976 | $ 641,379 | $ (74,984) | $ (268,238) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 89,476 | $ 67,659 | $ 56,726 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 50,513 | 52,193 | 48,719 |
Stock-based compensation expense | 28,235 | 26,070 | 23,901 |
Amortization of operating lease right-of-use assets | 27,146 | 27,335 | 0 |
Unrealized gain on short term investments | (7,174) | (10,116) | (7,696) |
Unrealized foreign exchange (gain)/loss, net | 402 | (321) | (8,620) |
Deferred income tax (benefit)/expense | 2,697 | (12,345) | (625) |
Allowance for expected credit losses | 297 | 614 | (573) |
Loss from equity-method investment | 227 | 269 | 247 |
Amortization of non-cash interest expense related to convertible senior notes | 2,616 | 2,472 | 600 |
Impairment charges | 0 | 3,627 | 20,056 |
Others, net | (542) | (1,204) | 303 |
Change in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | 24,696 | (7,093) | (10,046) |
Prepaid expenses and other current assets | (5,133) | 1,215 | (4,509) |
Advance income tax, net | 696 | 7,194 | (14,147) |
Other assets | 6,505 | (2,204) | (6,800) |
Accounts payable | 243 | 134 | (360) |
Deferred revenue | 18,222 | 6,679 | (4,929) |
Accrued employee costs | 335 | 16,915 | 1,272 |
Accrued expenses and other liabilities | (9,895) | 14,141 | (1,084) |
Operating lease liabilities | (26,589) | (24,813) | 0 |
Net cash provided by operating activities | 202,973 | 168,421 | 92,435 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (42,224) | (40,545) | (40,789) |
Proceeds from sale of property and equipment | 916 | 407 | 352 |
Investment in equity affiliate | (700) | 0 | 0 |
Purchase of non-controlling interest | 0 | (241) | 0 |
Business acquisition (net of cash acquired) | 0 | 0 | (231,829) |
Purchase of investments | (102,462) | (187,974) | (133,434) |
Proceeds from redemption of investments | 126,154 | 176,968 | 128,208 |
Net cash used for investing activities | (18,316) | (51,385) | (277,492) |
Cash flows from financing activities: | |||
Principal payments of finance lease liabilities | (249) | (336) | (152) |
Proceeds from borrowings | 110,000 | 46,000 | 246,614 |
Repayments of borrowings | (120,867) | (98,247) | (155,209) |
Proceeds from convertible notes | 0 | 0 | 149,000 |
Payment of debt issuance costs | 0 | (117) | (762) |
Acquisition of treasury stock | (79,949) | (41,364) | (43,109) |
Proceeds from exercise of stock options | 1,501 | 986 | 1,397 |
Net cash (used for)/provided by financing activities | (89,564) | (93,078) | 197,779 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,382 | (1,045) | (2,868) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 98,475 | 22,913 | 9,854 |
Cash, cash equivalents and restricted cash at the beginning of the period | 127,044 | 104,131 | 94,277 |
Cash, cash equivalents and restricted cash at the end of the period | 225,519 | 127,044 | 104,131 |
Cash paid during the period for: | |||
Interest | 7,626 | 10,649 | 4,725 |
Income taxes, net of refunds | 20,571 | 19,087 | 18,508 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Restricted common stock issued for business acquisition | 0 | 0 | 4,080 |
Assets acquired under finance lease | $ 45 | $ 506 | $ 277 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | OrganizationExlService 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, 2020 | |
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 Inc. 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 gains and losses arising from intra-group transactions, are eliminated while preparing consolidated 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 purchase consideration paid 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 after its acquisition is recognized in the consolidated statements of income. Effective January 1, 2020, the Company made certain operational and structural changes to more closely integrate the Company’s businesses and to simplify its organizational structure. Under the new structure, the Company reports its financial performance based on new segments described in Note 3 - Segment and Geographical Information to the consolidated financial statements. In conjunction with the new reporting structure, the Company has recast certain prior period amounts, wherever applicable, to conform to the way the Company internally manages and monitors segment performance. This change primarily impacted Note 3 - Segment and Geographical Information and Note 10 - Goodwill and Intangible Assets to the consolidated financial statements, with no impact on the consolidated balance sheets, statements of income, comprehensive income, equity and cash flows. (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 expected credit losses, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and variable consideration in a customer contract, expected recoverability from customers with contingent fee arrangements, estimated costs to complete fixed price contracts, 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 amortization of ROU, depreciation and amortization periods, purchase price allocation and recoverability of long-lived assets, goodwill and intangibles. As of December 31, 2020, the extent to which the global Coronavirus Disease 2019 pandemic (“COVID-19”) will ultimately impact the Company's business depends on numerous dynamic factors, which the Company still cannot reliably predict. As a result, many of the Company's estimates and assumptions herein required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve with respect to COVID-19, the Company’s estimates may materially change in future periods. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. (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 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 Company's 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. Share capital and other equity items are translated at exchange rates that prevailed on the date of inception of the transaction. 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. 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. 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 the 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 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 identifies 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 defers 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 expected duration of the relationship with customers, 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 duration of the relationship with customers and recorded under Selling and marketing expenses in the consolidated statements of income. Upfront Payments Made to Customers 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 as a result of 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 - Cash, Cash Equivalents and Restricted Cash to the consolidated financial statements for details). These deposits with banks have maturity dates after December 31, 2020. Restricted cash presented under current assets represents funds held on behalf of clients in dedicated bank accounts. The corresponding liability against the same is included under “Accrued Expenses and other current liabilities”. 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”). The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period and any changes in fair value are included in other income, net. 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 other income. (g) Accounts Receivable and Allowance for Expected Credit Losses Accounts receivable are recorded net of allowances for expected credit losses. The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future and estimates relating to the possible effects resulting from COVID-19. As of December 31, 2020 and 2019, the Company had $1,189 and $1,163, respectively, of allowances for expected credit losses. 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, 2020 and 2019, the Company had $63,995 and $73,920, 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. Expenditures for replacements and improvements are capitalized, if they enhance the production capacity and future benefits whereas the costs of maintenance and repairs are charged to earnings as incurred. 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 property and equipment which are abandoned and disposed other than by sale, are assessed for revision of their useful life, thereby revising the future depreciation to reflect the use of property and equipment over the remaining shortened life. 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, whereby such 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. The Company also assesses any potential goodwill impairment for all its reporting units immediately prior to any segment changes and reallocates goodwill to its new reporting units using a relative fair value approach. Refer to Note 10 - Goodwill and Intangible Assets to the consolidated financial statements 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 goodwill quantitative 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 also uses the “Market approach” to corroborate the results of the income approach for some of the Company’s reporting units. 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: Useful Lives Customer relationships 3-15 Developed technology 5-10 Trade names and trademarks 3-10 (k) Investment in Equity Affiliate Investments in equity affiliate are initially recorded at cost and any excess purchase consideration paid 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 after its acquisition 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. Th |
Segment and Geographical Inform
Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2020 | |
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 made certain operational and structural changes to more closely integrate its businesses and to simplify its organizational structure. The Company since then manages and reports financial information through its four strategic business units: Insurance, Healthcare, Analytics and Emerging Business, which reflects how management reviews financial information and makes operating decisions. These business units will develop client-specific solutions, build capabilities, maintain a unified go-to-market approach and be integrally responsible for service delivery, customer satisfaction, growth and profitability. In line with the Company’s strategy of vertical integration and focus on domain expertise, the Company has integrated its Finance & Accounting and Consulting operating segments within each of the Insurance and Healthcare operating segments based on the corresponding industry-specific clients. Finance & Accounting and Consulting services to clients outside of the Insurance and Healthcare industries are part of the Company’s “Emerging Business” segment. In addition, the Company integrated its former Travel, Transportation and Logistics, Banking and Financial Services, and Utilities operating segments under Emerging Business to further leverage and optimize the operating scale in providing operations management services. The Company’s reportable segments effective January 1, 2020 are as follows: • Insurance, • Healthcare, • Emerging Business, and • Analytics In conjunction with the new reporting structure, the Company has recast its segment disclosures for prior periods presented to conform to the way the Company internally manages and monitors segment performance. 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, certain 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, 2020, 2019 and 2018, respectively, for each of the reportable segments, are as follows: Year ended December 31, 2020 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 341,770 $ 101,315 $ 152,670 $ 362,679 $ 958,434 Cost of revenues (1) 231,884 73,143 89,459 229,450 623,936 Gross profit (1) $ 109,886 $ 28,172 $ 63,211 $ 133,229 $ 334,498 Operating expenses 224,476 Foreign exchange gain, interest expense and other income, net 5,307 Income tax expense 25,626 Loss from equity-method investment 227 Net income $ 89,476 (1) Exclusive of depreciation and amortization expense. Year ended December 31, 2019 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 346,434 $ 97,465 $ 190,118 $ 357,329 $ 991,346 Cost of revenues (1) 238,580 77,048 108,617 231,245 655,490 Gross profit (1) $ 107,854 $ 20,417 $ 81,501 $ 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 (1) Exclusive of depreciation and amortization expense. Year ended December 31, 2018 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 311,152 $ 89,845 $ 196,825 $ 285,290 $ 883,112 Cost of revenues (1) 211,818 70,446 117,987 184,604 584,855 Gross profit (1) $ 99,334 $ 19,399 $ 78,838 $ 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 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Year ended December 31, 2020 2019 2018 BPM and related services (1) $ 595,755 $ 634,017 $ 597,822 Analytics services 362,679 357,329 285,290 Revenues, net $ 958,434 $ 991,346 $ 883,112 (1) BPM and related services include revenues of the Company's Insurance, Healthcare and Emerging Business reportable segments. Refer to the reportable segment disclosure above. The Company attributes the revenues to regions based upon the location of its customers. Year ended December 31, 2020 2019 2018 Revenues, net United States $ 814,672 $ 817,878 $ 732,589 Non-United States United Kingdom 88,659 113,036 114,515 Rest of World 55,103 60,432 36,008 Total Non-United States 143,762 173,468 150,523 Revenues, net $ 958,434 $ 991,346 $ 883,112 Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets, were as follows: As of December 31, 2020 December 31, 2019 Long-lived assets India $ 97,261 $ 78,244 United States 46,659 52,375 Philippines 29,434 26,006 Rest of World 11,439 8,913 Long-lived assets $ 184,793 $ 165,538 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data Summarized quarterly results for the years ended December 31, 2020 and 2019 are as follows: Three months ended 2020 (Unaudited) Year ended (Audited) March 31 June 30 September 30 December 31 December 31, 2020 Revenues, net $ 245,990 $ 222,473 $ 241,018 $ 248,953 $ 958,434 Gross profit (1) $ 83,334 $ 64,072 $ 88,931 $ 98,161 $ 334,498 Income before equity method investment activity, net and income tax expense $ 28,321 $ 12,567 $ 34,979 $ 39,462 $ 115,329 Net income $ 22,411 $ 8,429 $ 26,418 $ 32,218 $ 89,476 Earnings per share: Basic (2) $ 0.65 $ 0.24 $ 0.77 $ 0.95 $ 2.61 Diluted (2) $ 0.65 $ 0.24 $ 0.76 $ 0.94 $ 2.59 Weighted-average number of shares used in computing earnings per share: Basic (2) 34,401,565 34,486,202 34,327,477 33,882,013 34,273,388 Diluted (2) 34,720,603 34,597,688 34,536,049 34,370,023 34,555,164 Stock compensation expense $ 4,778 $ 7,726 $ 8,346 $ 7,385 $ 28,235 Amortization of intangibles $ 4,154 $ 3,430 $ 3,413 $ 3,415 $ 14,412 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 Income before equity method investment activity, net and income tax expense $ 18,962 $ 15,296 $ 24,814 $ 24,028 $ 83,100 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 (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, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues, net | Revenues, net Refer to Note 3 - Segment and Geographical Information 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, 2020 December 31, 2019 Accounts receivable, net $ 147,635 $ 171,864 Contract assets $ 4,437 $ 5,391 Contract liabilities: Deferred revenue (consideration received in advance) $ 30,450 $ 11,259 Consideration received for process transition activities $ 2,774 $ 3,036 Accounts receivable includes $63,995 and $73,920 as of December 31, 2020 and 2019, 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 represent upfront payments such as deal signing discounts or deal signing bonuses made to customers. These costs are amortized over the expected period of the benefit and are recorded as an adjustment to transaction price and reduced from revenues. The Company’s assessment did not indicate any impairment losses on its contract assets for the periods presented. Contract liabilities represent that portion of deferred revenue for which payments have been received in advance from customers. The Company also defers revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. Consideration received from customers, if any, relating to such transition activities are classified under contract liabilities and 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, 2020 and 2019, which was included in the contract liabilities balance at the beginning of the respective periods: Year ended December 31, 2020 2019 Deferred revenue (consideration received in advance) $ 10,949 $ 6,077 Consideration received for process transition activities $ 1,424 $ 844 Contract acquisition and fulfillment costs The following table provides details of the Company’s contract acquisition and fulfillment costs: Contract Acquisition Costs Contract Fulfillment Costs Year ended December 31, Year ended December 31, 2020 2019 2020 2019 Opening Balance $ 1,307 $ 713 $ 7,255 $ 4,051 Additions 310 1,222 779 4,652 Amortization (590) (628) (2,403) (1,448) Closing Balance $ 1,027 $ 1,307 $ 5,631 $ 7,255 There was no impairment for contract acquisition and contract fulfillment costs as of December 31, 2020 and 2019. The capitalized costs are amortized over the expected period of benefit of the contract. Allowance for expected credit losses On January 1, 2020, the Company adopted ASC Topic 326, Financial Instruments-Credit Losses . Accounts receivable and contract assets are in the scope for which assessment is made. The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future and estimates relating to the possible effects resulting from COVID-19. The duration and severity of COVID-19 and continued market volatility is highly uncertain and, as such, the impact on expected losses is subject to significant judgment, including but not limited to changes in customers’ credit rating, and may cause variability in the Company’s allowance for credit losses in future periods. As of January 1, 2020 the Company’s provision for credit losses was $1,163. There was no material impact on the provision when calculated by applying the Topic 326 guidance. As of December 31, 2020 January 1, 2020 Accounts receivable, including unbilled receivables $ 148,824 $ 173,027 Less: Allowance for lifetime expected credit loss (1,189) (1,163) Accounts receivable, net $ 147,635 $ 171,864 The movement in allowance for current expected credit loss on customer balances for the year ended December 31, 2020 and December 31, 2019 was as follows: Year ended December 31, 2020 2019 Balance at the beginning of the year $ 1,163 $ 956 Additions during the period 300 354 Charged against allowance (269) (156) Translation adjustment (5) 9 Balance at the end of the year $ 1,189 $ 1,163 |
Other Income, net
Other Income, net | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income, net | Other Income, net Other income, net consists of the following: Year ended December 31, 2020 2019 2018 Gain on sale and mark-to-market of mutual funds $ 9,521 $ 12,965 $ 9,970 Interest and dividend income 2,595 2,399 1,873 Others, net (51) 1,143 1,146 Other income, net $ 12,065 $ 16,507 $ 12,989 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
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, and assumed conversion premium of outstanding convertible notes, using the treasury stock method. Common stock equivalents and the conversion premium of outstanding convertible notes 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 Company has a choice to settle the Notes in cash, shares or any combination of the two. The Company presently intends and has the ability to settle the principal balance of the Notes in cash, and as such, the Company has applied the treasury stock method. The dilution related to the conversion premium, if any, of the Notes is included in the calculation of diluted weighted-average shares outstanding to the extent the issuance is dilutive based on the average stock price during the reporting period being greater than the conversion price of $75. Refer to Note 18 - Borrowings to the consolidated financial statements for further details. The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2020 2019 2018 Numerators: Net income $ 89,476 $ 67,659 $ 56,726 Denominators: Basic weighted average common shares outstanding 34,273,388 34,350,150 34,451,008 Dilutive effect of share based awards 254,717 382,533 579,976 Dilutive effect of conversion premium on convertible notes 27,059 — — Diluted weighted average common shares outstanding 34,555,164 34,732,683 35,030,984 Earnings per share attributable to ExlService Holdings Inc. stockholders: Basic $ 2.61 $ 1.97 $ 1.65 Diluted $ 2.59 $ 1.95 $ 1.62 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 289,061 106,375 121,344 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 December 31, 2018 Cash and cash equivalents $ 218,530 $ 119,165 $ 95,881 Restricted cash (current) 4,690 5,453 5,608 Restricted cash (non-current) 2,299 2,426 2,642 Cash, cash equivalents and restricted cash $ 225,519 $ 127,044 $ 104,131 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. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Owned assets: Network equipment and computers 3-5 $ 107,109 $ 98,309 Software 3-5 99,708 79,746 Leasehold improvements 3-8 48,052 44,982 Office furniture and equipment 3-8 22,117 22,046 Motor vehicles 2-5 599 601 Buildings 30 1,089 1,114 Land — 712 729 Capital work in progress — 4,647 10,309 284,033 257,836 Less: Accumulated depreciation and amortization (191,629) (179,331) $ 92,404 $ 78,505 Right-of-use assets under finance leases: Leasehold improvements $ 817 $ 738 Office furniture and equipment 348 308 Motor vehicles 688 711 1,853 1,757 Less: Accumulated depreciation and amortization (1,382) (1,120) $ 471 $ 637 Property and equipment, net $ 92,875 $ 79,142 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. During the year ended December 31, 2020, and 2019 there were no changes in estimated useful lives of property and equipment. 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, 2020 2019 2018 Depreciation and amortization expense $ 36,050 $ 30,423 $ 28,189 The effect of foreign exchange gain / (loss) upon settlement of cash flow hedges recorded under depreciation and amortization, was as follows: Year ended December 31, 2020 2019 2018 Effect of foreign exchange gain/(loss) $ 51 $ 212 $ 153 Internally developed software costs, included under Software, was as follows: As of December 31, 2020 December 31, 2019 Cost $ 18,371 $ 15,784 Less : Accumulated amortization (5,998) (4,989) Internally developed software, net $ 12,373 $ 10,795 The amortization expense on internally developed software recognized in the consolidated statements of income was as follows: Year ended December 31, 2020 2019 2018 Amortization expense $ 4,894 $ 2,745 $ 1,417 As of December 31, 2020, the Company believes no impairment exists because the long-lived asset's future undiscounted net cash flows expected to be generated exceeds its carrying value; however, there can be no assurances that long-lived assets will not be impaired in future periods. 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. It is reasonably possible that the judgments and estimates described above could change in future periods. The duration and severity of COVID-19 and continued market volatility is highly uncertain and, as such, the impact on undiscounted cash flows is subject to significant judgment and may cause variability in the Company’s assessment of the existence of any impairment. 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 - Impairment and Restructuring Charges to the consolidated financial statements for further details. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company transitioned to new segment reporting structure effective January 1, 2020, which resulted in certain changes to its operating segments and reporting units. The Company reallocated goodwill to its reporting units using a relative fair value approach. In addition, the Company completed an assessment of any potential goodwill impairment for all its reporting units immediately prior to the reallocation and determined that no impairment existed. The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare Emerging Business Analytics TT&L F&A All Other Total Balance at January1, 2019 $ 38,203 $ 19,276 $ — $ 227,289 $ 12,697 $ 47,193 $ 5,326 $ 349,984 Currency translation adjustments 73 — — — (240) (288) — (455) Balance at December 31, 2019 $ 38,276 $ 19,276 $ — $ 227,289 $ 12,457 $ 46,905 $ 5,326 $ 349,529 Goodwill reallocation (1) 12,192 2,693 49,803 — (12,457) (46,905) (5,326) — Currency translation adjustments 31 (16) (455) (1) — — — (441) Balance at December 31, 2020 $ 50,499 $ 21,953 $ 49,348 $ 227,288 $ — $ — $ — $ 349,088 (1) Represents the reallocation of goodwill because of the Company reorganizing its operating segments as described in Note 3 - Segment and Geographical Information to the consolidated financial statements. As of March 31, 2020, due to the deteriorating macroeconomic conditions arising from COVID-19, the Company performed an interim goodwill quantitative impairment test for its reporting units. The Company considered the effects of COVID-19 on its significant inputs used in determining the fair value of the Company’s reporting units. 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. During the second and third quarters of 2020, the Company evaluated the continuing effects of COVID-19 and its impact on the global economy on each of the Company’s reporting units to assess whether there was a triggering event during these quarters requiring the Company to perform a goodwill impairment test. The Company considered certain improvements in current and forecasted economic and market conditions and qualitative factors, such as the Company’s performance and business forecasts, stock price movements and expansion plans. The Company reviewed key assumptions, including revisions of projected future revenues for reporting units against the results of the interim quantitative impairment test performed during the first quarter of 2020. The Company did not identify any triggers or indications of potential impairment for its reporting units as of June 30, 2020 and September 30, 2020. During the fourth quarter of 2020, the Company performed its annual goodwill quantitative impairment test for those reporting units that had goodwill recorded. Key assumptions used in determining the fair value of the Company’s reporting units were, a long-term revenue growth rate in the terminal year of 3.0%, which was based upon expected long-term inflation rate and real gross domestic product growth over a long-term, and discount rates ranging from 10.4% to 12.0%, which vary based upon the risks and uncertainties inherent in each individual reporting unit. 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. The recoverability of goodwill is dependent upon the continued growth of cash flows from the Company’s business activities. This growth is based on business forecasts and improvement in profitability of the respective reporting units. The Company continues to maintain its focus on cultivating long-term client relationships as well as attracting new clients. The Company believes there are significant opportunities for additional growth within its existing clients, and can expand these relationships by: • Increasing the depth and breadth of the services the Company provides across its clients’ value chains and geographies; • Offering the full suite of the Company's services that includes operations management and data and analytics; and • Supporting the Company's clients’ geographic expansion leveraging its global footprint. The Company also considers selective strategic relationships with industry leaders that add new long-term client relationships, enhance the depth and breadth of its services and solutions, and complement its business strategy. Through its Connected Intelligence Partnership programs, the Company expands its technology and innovation ecosystem with select partnerships, alliances or investments that the Company expects will enhance go-to-market opportunities and expand the scope and effectiveness of the Company’s services and solutions by adding digital assets and intellectual property, which will help the Company to win new clients or allowing it to enter new industry verticals and geographic markets. 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. The duration and severity of COVID-19 and continued market volatility is highly uncertain and, as such, the impact on cash flows, long-term debt-free net cash flow growth rate in the terminal year and discount rates are subject to significant judgments and may cause variability in the Company’s assessment of existence of any impairment. The Company will continue to monitor the impacts of COVID-19 on the Company and significant changes in key assumptions that could result in future period impairment charges. During the fourth quarter of 2019, the Company performed its annual goodwill quantitative impairment test for all of its reporting units. These reporting units were based on the segment reporting structure that existed prior to the Company's transition to its new segment reporting structure effective January 1, 2020, which resulted in the former SCIO reporting unit being reflected as an integrated business within the Healthcare Analytics operating segment and reporting unit. Based on the results of the 2019 annual goodwill quantitative impairment test, the fair values of each of the Company’s reporting units exceeded their carrying values and the Company’s goodwill was not impaired. However, for the former SCIO reporting unit within the Analytics reportable segment, the fair value was not substantially in excess of its carrying value. The former 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 former 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 former SCIO reporting unit exceeded the carrying value as of the date of the annual impairment test was approximately 10.0%. Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of December 31, 2020 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 73,357 $ (27,464) $ 45,893 Developed technology 23,510 (11,858) 11,652 Trade names and trademarks 5,100 (3,951) 1,149 $ 101,967 $ (43,273) $ 58,694 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 102,867 $ (43,273) $ 59,594 As of December 31, 2019 Gross Accumulated Net Carrying 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 The amortization expense recognized in the consolidated statements of income was as follows: Year ended December 31, 2020 2019 2018 Amortization expense $ 14,412 $ 21,558 $ 20,377 The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 6.89 Developed technology 2.71 Trade names and trademarks (Finite lived) 2.04 Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2020 was as follows: 2021 $ 12,765 2022 11,341 2023 9,052 2024 6,710 2025 5,958 2026 and thereafter 12,868 Total $ 58,694 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Derivative instruments $ 9,755 $ 4,076 Advances to suppliers 3,906 1,581 Receivables from statutory authorities 15,658 12,608 Contract assets 1,814 1,414 Deferred contract fulfillment costs 2,888 1,673 Interest accrued on term deposits 169 439 Others 2,919 2,803 Other current assets $ 37,109 $ 24,594 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: As of December 31, 2020 December 31, 2019 Lease deposits $ 9,788 $ 9,983 Derivative instruments 6,933 3,433 Deposits with statutory authorities 6,341 6,237 Term deposits 216 1,983 Contract assets 2,623 3,977 Deferred contract fulfillment costs 2,743 5,582 Others 3,455 4,821 Other assets $ 32,099 $ 36,016 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Accrued expenses $ 39,951 $ 50,097 Payable to statutory authorities 10,594 9,247 Accrued capital expenditures 7,857 3,035 Derivative instruments 435 1,783 Client liabilities 4,740 6,378 Interest payable 1,399 1,492 Other current liabilities 1,205 1,732 Finance lease liabilities 229 253 Accrued expenses and other current liabilities $ 66,410 $ 74,017 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Liabilities, Noncurrent [Abstract] | |
Other Non-Current liabilities | Other Non-Current Liabilities Other non-current liabilities consist of the following: As of December 31, 2020 December 31, 2019 Derivative instruments $ 29 $ 1,250 Unrecognized tax benefits 907 1,047 Retirement benefits 8,940 6,517 Deferred transition revenue 924 1,911 Accrued capital expenditure 3,486 — Other liabilities 3,568 987 Finance lease liabilities 281 430 Other non-current liabilities $ 18,135 $ 12,142 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss (“AOCI”) consists of actuarial gain/(loss) on retirement benefits and 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. Cumulative 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, 2020 and 2019 are as follows: Accumulated Other Comprehensive Loss Foreign currency translation (loss)/ gain Unrealized (loss)/gain on cash flow hedges Retirement benefits Total Balance as of January 1, 2019 $ (84,105) $ (333) $ 971 $ (83,467) Gains / (losses) recognized during the year (2,857) 8,773 (2,539) 3,377 Reclassification to net income (1) — (3,951) (159) (4,110) Income tax benefit / (expense) (2) (629) (391) 328 (692) Accumulated other comprehensive loss as of December 31, 2019 $ (87,591) $ 4,098 $ (1,399) $ (84,892) Gains / (losses) recognized during the year (547) 12,665 (2,401) 9,717 Reclassification to net income (1) — (801) 394 (407) Income tax benefit / (expense) (2) 1,953 (2,163) 808 598 Accumulated other comprehensive loss as of December 31, 2020 $ (86,185) $ 13,799 $ (2,598) $ (74,984) 1. Refer to Note 17 - Derivatives and Hedge Accounting and Note 20 - Employee Benefit Plans to the consolidated financial statements for reclassification to net income. 2. These are income tax benefit / (expense) recognized on changes in the fair values of cash flow hedges, actuarial (loss) / gain on retirement benefits and foreign currency translation (loss) / gain, net of reclassifications related to the period activity. Refer to Note 22 - Income Taxes to the consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
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. 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, 2020 and 2019. Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs As of December 31, 2020 (Level 1) (Level 2) (Level 3) Total Assets Mutual funds* $ 160,441 $ — $ — $ 160,441 Derivative financial instruments — 16,688 — 16,688 Total $ 160,441 $ 16,688 $ — $ 177,129 Liabilities Derivative financial instruments $ — $ 464 $ — $ 464 Total $ — $ 464 $ — $ 464 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs 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 * Represents those short-term investments which are carried at the fair value option under ASC 825 "Financial Instruments". 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 - Derivatives and Hedge Accounting 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 investments in mutual funds, as disclosed above), restricted cash, accrued interest on term deposits, accrued capital expenditures, accrued expenses and interest payable on borrowings for which fair values approximate their carrying amounts due to their short-term nature. The carrying value of the Company’s outstanding revolving credit facility approximates its fair value because the Company’s interest rate yield is near current market rates for comparable debt instruments. Convertible Senior Notes: The total estimated fair value of the convertible senior notes as of December 31, 2020 and 2019 was $152,384 and $149,934, respectively. The fair value was determined based on the market yields for similar convertible notes as of December 31, 2020 and 2019, respectively. The Company considers the fair value of the convertible senior notes to be a Level 2 measurement due to the limited inputs available for its fair valuation. Nonrecurring fair value measurements of assets: Nonrecurring fair value measurements include impairment tests of goodwill conducted by the Company during the year ended December 31, 2020 and 2019. The fair value determination of the Company's reporting units was based on a combination of the income approach, using DCF model, which are Level 3 inputs, and also the market approach, as applicable, using market multiples for reporting units, which are Level 2 inputs. During the year ended December 31, 2020 and 2019, the Company did not recognize any impairment charges on goodwill as the fair values of the reporting units exceeded their carrying value. Refer to Note 10 - Goodwill and Intangible Assets to the consolidated financial statements for further details. During the year ended December 31, 2019, the Company conducted impairment tests 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 long-lived assets and ROU assets to write down the carrying value to their fair values. Refer to Note 9 - Property and Equipment, net and Note 21 - Leases to the consolidated financial statements for further details. |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 12 Months Ended |
Dec. 31, 2020 | |
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 $451,935 as of December 31, 2020 and $410,390 (including $4,300 of range forward contracts) as of December 31, 2019. 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 these cash flow hedges is 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 impact of COVID-19 on the economic environment is uncertain and may cause variability in determination of fair value of these cash flow hedges, which could impact the effects of change in fair value that get recorded as a component of accumulated other comprehensive income/(loss) and also resultant exchange gain/(loss) upon settlement of derivative financial instruments . 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 $9,564 of derivative gains, net, 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, 2020. At December 31, 2020, the maximum outstanding term of the cash flow hedges was 45 months. The Company also enters into foreign currency forward contracts to economically hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies, 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 the foreign exchange gain/ (loss) line item. 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 (COP), Czech koruna, the Euro, South African ZAR and other local currencies in which it operates. Outstanding foreign currency forward contracts amounted to USD 143,394, GBP 6,753, EUR 2,447 and COP 8,287,950 as of December 31, 2020 and USD 124,045, GBP 10,843 and EUR 1,289 as of December 31, 2019. All the assets and liabilities related to our foreign exchange forward contracts are subject to master netting arrangements with each individual counterparty. These master netting arrangements generally provide for net settlement of all outstanding contracts with the counterparty in the case of an event of default or a termination event. We have presented all the assets and liabilities related to our foreign exchange forward contracts on a gross basis, with no offsets, in our consolidated statements of financial position. There is no financial collateral (including cash collateral) provided or received by us related to our foreign exchange forward 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, 2020 December 31, 2019 Other current assets $ 9,740 $ 3,945 Other assets $ 6,933 $ 3,433 Accrued expenses and other current liabilities $ 176 $ 1,524 Other non-current liabilities $ 29 $ 1,250 Derivatives not designated as hedging instruments : As of Foreign currency exchange contracts December 31, 2020 December 31, 2019 Other current assets $ 15 $ 131 Accrued expenses and other current liabilities $ 259 $ 259 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, 2020, 2019 and 2018: Year ended December 31, Forward Exchange Contracts: 2020 2019 2018 Unrealized gain/(loss) recognized in AOCI Derivatives in cash flow hedging relationships $ 12,665 $ 8,773 $ (13,724) Gain/(loss) recognized in consolidated statements of income Derivatives not designated as hedging instruments $ 3,802 $ 3,306 $ (3,224) 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, 2020 2019 2018 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 As per consolidated statements of income Gain/(loss) on foreign currency exchange contracts Cash flow hedging relationships Location in consolidated statements of income where gain was reclassed from AOCI Cost of revenues $ 623,936 $ 1,008 $ 655,490 $ 3,269 $ 584,855 $ 2,481 General and administrative expenses $ 113,891 $ (161) $ 126,909 $ 424 $ 116,202 $ 443 Selling and marketing expenses $ 60,123 $ (5) $ 71,842 $ 46 $ 63,612 $ 44 Depreciation and amortization expense $ 50,462 $ (41) $ 51,981 $ 212 $ 48,566 $ 181 $ 801 $ 3,951 $ 3,149 Derivatives not designated as hedging instruments Location in consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 4,432 $ 3,802 $ 3,752 $ 3,306 $ 4,787 $ (3,224) $ 4,432 $ 3,802 $ 3,752 $ 3,306 $ 4,787 $ (3,224) |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The following tables summarizes the Company’s debt position as of December 31, 2020 and 2019. As of December 31, 2020 Revolving Credit Facility Notes Total Current portion of long-term borrowings $ 25,000 $ — $ 25,000 Long-term borrowings $ 64,000 $ 150,000 $ 214,000 Unamortized debt discount — (11,235) (11,235) Unamortized debt issuance costs* — (804) (804) Long-term borrowings $ 64,000 $ 137,961 $ 201,961 Total borrowings $ 89,000 $ 137,961 $ 226,961 As of December 31, 2019 Revolving Credit Facility Structured Payables Notes Total Current portion of long-term borrowings $ 40,000 $ 867 $ — $ 40,867 Long-term borrowings $ 59,000 $ — $ 150,000 $ 209,000 Unamortized debt discount — — (13,851) (13,851) Unamortized debt issuance costs* — — (1,018) (1,018) Long-term borrowings $ 59,000 $ — $ 135,131 $ 194,131 Total borrowings $ 99,000 $ 867 $ 135,131 $ 234,998 *Unamortized debt issuance costs for the Company’s revolving Credit Facility of $490 and $748 as of December 31, 2020 and 2019, respectively, is presented under “Other current assets” and “Other assets” in the consolidated balance sheets. 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 our July 2018 acquisition of SCIO. 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 LIBO rate, plus, in each case, an applicable margin. The applicable margin is tied to the Company’s total net leverage ratio and ranges from 0% 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 revolving Credit Facility carried an effective interest rate as shown below. Year ended December 31, 2020 2019 2018 Effective interest rate 2.3 % 4.0 % 3.4 % 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, 2020, 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. 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. Until October 4, 2020, under the Investment Agreement, the Purchaser was restricted from transferring the Notes or any shares of common stock issuable upon conversion of the Notes, or entering into any transaction that transfers such interests to a third party. 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 presently intends and has the ability to settle the principal amount of the Notes in cash. In 2018, 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 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, 2020, 2019 and 2018 the Company recognized interest expense and amortization of debt discount, on the Notes as below: Year ended December 31, 2020 2019 2018 Interest expense on the Notes $ 5,250 $ 5,206 $ 1,313 Amortization of debt discount on the Notes $ 2,616 $ 2,472 $ 600 Payments/maturities for all of the Company's borrowings as of December 31, 2020 were as follows: Notes Revolving Credit Total 2021 $ — $ 25,000 $ 25,000 2022 — 64,000 64,000 2023 — — — 2024 150,000 — 150,000 Total $ 150,000 $ 89,000 $ 239,000 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, 2020 and 2019, the Company had outstanding letters of credit of $461, each, that were not recognized in the consolidated balance sheets. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Capital Structure | Capital Structure Common Stock The Company has one class of common stock outstanding. The Company purchased shares of common stock from employees in connection with withholding tax payments related to the vesting of restricted stock, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Year ended December 31, 2020 28,052 $ 2,131 $ 75.96 Year ended December 31, 2019 23,859 $ 1,490 $ 62.47 Year ended December 31, 2018 51,446 $ 3,122 $ 60.68 (1) The weighted average purchase price per share 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 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 authorized 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 "2019 Repurchase Program" and together with the 2017 Repurchase Program, the “Repurchase Programs”). Under the Repurchase Programs, 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. Repurchases may be discontinued at any time by the management. The Company purchased shares of its common stock, including commissions, under the 2019 Repurchase Program and the 2017 Repurchase Program, as applicable, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Year ended December 31, 2020 1,085,153 $ 77,818 $ 71.71 Year ended December 31, 2019 643,486 $ 39,874 $ 61.96 Year ended December 31, 2018 674,604 $ 39,987 $ 59.27 Repurchased shares have been recorded as treasury shares and will be held until the Company’s Board of Directors designates that these shares be retired or used for other purposes. The 2019 Repurchase Program may be suspended or discontinued at any time. During the quarter ended March 31, 2020, to enhance the Company’s liquidity position in response to COVID-19, the Company elected to temporarily suspend share repurchases under the 2019 Repurchase Program. The 2019 Repurchase Program remains authorized by the Board of Directors and the Company resumed share repurchases effective July 1, 2020, considering improved market conditions, the Company’s capital and liquidity needs and other factors. Dividends The Company has not paid or declared any cash dividends on its common stock during the years ended December 31, 2020, 2019 and 2018. 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, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company’s Gratuity Plan in India (the "India Plan") provides for a 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. 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"). Liabilities with regard to the India Plan and the Philippines Plan are determined by actuarial valuation using the projected unit credit method. Current service costs for these Plans 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. The benefit obligation has been measured as of December 31, 2020. 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: Change in projected benefit obligation, was as follows: 2020 2019 Projected benefit obligation as of January 1 $ 15,311 $ 11,044 Service cost 2,706 1,953 Interest cost 964 875 Benefits paid (878) (960) Actuarial loss* 2,425 2,577 Effect of exchange rate changes (62) (178) Projected benefit obligation as of December 31 $ 20,466 $ 15,311 Unfunded amount-non-current $ 8,940 $ 6,517 Unfunded amount-current 14 10 Total accrued liability $ 8,954 $ 6,527 Accumulated benefit obligation $ 12,490 $ 10,743 Accumulated benefit obligation in excess of plan assets $ 978 $ 1,959 *During the year ended December 31, 2020, actuarial loss was driven by changes in actuarial assumptions, offset by experience adjustments on present value of benefit obligations. During the year ended December 31, 2019, actuarial loss was driven by experience adjustments on present value of benefit obligations. Components of net periodic benefit costs, were as follows: Year ended December 31, 2020 2019 2018 Service cost $ 2,706 $ 1,953 $ 1,735 Interest cost 964 875 714 Expected return on plan assets (636) (568) (514) Amortization of actuarial loss/(gain) 394 (159) (153) Net periodic benefit cost $ 3,428 $ 2,101 $ 1,782 The components of actuarial (loss) / gain on retirement benefits included in accumulated other comprehensive (loss)/gain, excluding tax effects, were as follows: As of December 31, 2020 2019 2018 Net actuarial (loss)/gain $ (3,772) $ (1,762) $ 940 Net prior service cost (15) (18) (22) Accumulated other comprehensive (loss)/gain, excluding tax effects $ (3,787) $ (1,780) $ 918 The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost were: December 31, 2020 2019 2018 Discount rate 4.6 % 6.5 % 7.5 % Rate of increase in compensation levels 7.1 % 6.0 % 8.2 % Expected long-term rate of return on plan assets per annum 7.0 % 7.5 % 7.3 % The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are either based on current market yields on government securities or yields on government securities adjusted for a suitable risk premium, if available. Expected benefit payments during the year ending December 31, 2021 $ 2,795 2022 $ 2,542 2023 $ 2,413 2024 $ 2,098 2025 $ 1,856 2026 to 2030 $ 6,956 The India Plan is partially funded whereas the Philippines plan is unfunded. The Company makes annual contributions to the employees' gratuity fund of the India Plan established with Life Insurance Corporation of India and HDFC Standard Life Insurance Company. Fund managers manage these funds and calculate the annual contribution required to be made by the Company and manage the India Plan, including any required payouts. These funds are managed on a cash accumulation basis and interest is declared retrospectively on March 31 of each year. The Company earned a return of approximately 7.5% per annum on the India Plan for the year ended December 31, 2020. The duration and severity of COVID-19 and continued market volatility is highly uncertain and, as such, the impact on plan assets and projected benefit obligations related to employee benefit plans is subject to significant judgment and may cause variability in the Company’s net periodic benefit cost in future periods. Change in Plan Assets Plan assets at January 1, 2019 $ 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 Actual return 661 Employer contribution 3,099 Benefits paid* (869) Effect of exchange rate changes (163) Plan assets at December 31, 2020 $ 11,512 * Benefits payments were substantially made from the plan assets during the year. 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's accrual for contributions to the 401(k) Plans were as follows: Year ended December 31, 2020 2019 2018 Contribution to the 401(k) Plans $ 3,577 $ 3,617 $ 3,423 The Company's contribution for various defined benefit plans on behalf of employees in India, the Philippines, the Czech Republic, South Africa, Colombia, Australia and Singapore were as follows: Year ended December 31, 2020 2019 2018 Contribution to the defined benefit plans $ 11,332 $ 10,614 $ 7,663 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
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 lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements. The Company had performed an evaluation of its contracts with suppliers in accordance with Topic 842, Leases , and had 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. During the year ended December 31, 2020, the Company changed the lease term for some leases and recognized the resultant amount of the remeasurement of the lease liability as an adjustment to the ROU assets. The Company accounted for lease-related concessions to mitigate the economic effects of COVID-19 on lessees in accordance with guidance in Topic 842, Leases , whereby the Company assessed on a lease-by-lease basis, whether the concession provided by a lessor should be accounted for as a lease modification. Such concessions had an insignificant impact on the Company’s consolidated financial statements during the year ended December 31, 2020. The impact of COVID-19 on the economic environment is uncertain and has caused variability in the determination of the incremental borrowing rate and extension option, which have an impact on measurement of lease liabilities and ROU assets. Supplemental balance sheet information As of December 31, 2020 December 31, 2019 Operating Lease Operating lease right-of-use assets $ 91,918 $ 86,396 Operating lease liabilities - Current $ 18,894 $ 24,148 Operating lease liabilities - Non-current 84,874 74,709 Total operating lease liabilities $ 103,768 $ 98,857 Finance Lease Property and equipment, gross $ 1,853 $ 1,757 Accumulated depreciation (1,382) (1,120) Property and equipment, net $ 471 $ 637 Finance lease liabilities - Current $ 229 $ 253 Finance lease liabilities - Non-current 281 430 Total finance lease liabilities $ 510 $ 683 Finance lease liabilities are presented as a part of “Accrued expenses and other current liabilities” and “Other non-current liabilities,” as applicable, in the Company’s consolidated balance sheets. 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, 2020 Year ended December 31, 2019 Finance lease: Amortization of right-of-use assets $ 235 $ 255 Interest on lease liabilities 81 93 $ 316 $ 348 Operating lease (a) 27,146 27,335 $ 27,146 $ 27,335 Sublease income — (146) Total lease cost $ 27,462 $ 27,537 (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Year ended Year ended Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 26,589 $ 24,813 Operating cash outflows for finance leases $ 81 $ 93 Financing cash outflows for finance leases $ 249 $ 336 Right-of-use assets obtained in exchange for new operating lease liabilities $ 18,765 $ 36,473 Right-of-use assets obtained in exchange for new finance lease liabilities $ 45 $ 506 Weighted-average remaining lease term (in years) Finance lease 1.8 2.3 Operating lease 6.3 6.0 Weighted-average discount rate Finance lease 10.5% 9.9% Operating lease 7.4% 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. During the year ended December 31, 2020 and 2019, the Company modified certain of its operating leases resulting in a reduction of its lease liabilities by $3,143 and $0 respectively, with a corresponding reduction in ROU assets. During the year ended December 31, 2019, the Company performed an impairment test of its long-lived assets of its Health Integrated business. Based on the results, the operating lease ROU assets carrying value exceeded their 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 on ROU assets 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". Maturities of lease liabilities as of December 31, 2020 are as follows: Operating Leases Finance Leases 2021 $ 25,829 $ 262 2022 24,316 194 2023 22,066 114 2024 17,084 36 2025 9,749 11 2026 and thereafter 34,334 — Total lease payments $ 133,378 $ 617 Less: Imputed interest 29,610 107 Present value of lease liabilities $ 103,768 $ 510 |
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 lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements. The Company had performed an evaluation of its contracts with suppliers in accordance with Topic 842, Leases , and had 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. During the year ended December 31, 2020, the Company changed the lease term for some leases and recognized the resultant amount of the remeasurement of the lease liability as an adjustment to the ROU assets. The Company accounted for lease-related concessions to mitigate the economic effects of COVID-19 on lessees in accordance with guidance in Topic 842, Leases , whereby the Company assessed on a lease-by-lease basis, whether the concession provided by a lessor should be accounted for as a lease modification. Such concessions had an insignificant impact on the Company’s consolidated financial statements during the year ended December 31, 2020. The impact of COVID-19 on the economic environment is uncertain and has caused variability in the determination of the incremental borrowing rate and extension option, which have an impact on measurement of lease liabilities and ROU assets. Supplemental balance sheet information As of December 31, 2020 December 31, 2019 Operating Lease Operating lease right-of-use assets $ 91,918 $ 86,396 Operating lease liabilities - Current $ 18,894 $ 24,148 Operating lease liabilities - Non-current 84,874 74,709 Total operating lease liabilities $ 103,768 $ 98,857 Finance Lease Property and equipment, gross $ 1,853 $ 1,757 Accumulated depreciation (1,382) (1,120) Property and equipment, net $ 471 $ 637 Finance lease liabilities - Current $ 229 $ 253 Finance lease liabilities - Non-current 281 430 Total finance lease liabilities $ 510 $ 683 Finance lease liabilities are presented as a part of “Accrued expenses and other current liabilities” and “Other non-current liabilities,” as applicable, in the Company’s consolidated balance sheets. 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, 2020 Year ended December 31, 2019 Finance lease: Amortization of right-of-use assets $ 235 $ 255 Interest on lease liabilities 81 93 $ 316 $ 348 Operating lease (a) 27,146 27,335 $ 27,146 $ 27,335 Sublease income — (146) Total lease cost $ 27,462 $ 27,537 (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Year ended Year ended Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 26,589 $ 24,813 Operating cash outflows for finance leases $ 81 $ 93 Financing cash outflows for finance leases $ 249 $ 336 Right-of-use assets obtained in exchange for new operating lease liabilities $ 18,765 $ 36,473 Right-of-use assets obtained in exchange for new finance lease liabilities $ 45 $ 506 Weighted-average remaining lease term (in years) Finance lease 1.8 2.3 Operating lease 6.3 6.0 Weighted-average discount rate Finance lease 10.5% 9.9% Operating lease 7.4% 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. During the year ended December 31, 2020 and 2019, the Company modified certain of its operating leases resulting in a reduction of its lease liabilities by $3,143 and $0 respectively, with a corresponding reduction in ROU assets. During the year ended December 31, 2019, the Company performed an impairment test of its long-lived assets of its Health Integrated business. Based on the results, the operating lease ROU assets carrying value exceeded their 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 on ROU assets 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". Maturities of lease liabilities as of December 31, 2020 are as follows: Operating Leases Finance Leases 2021 $ 25,829 $ 262 2022 24,316 194 2023 22,066 114 2024 17,084 36 2025 9,749 11 2026 and thereafter 34,334 — Total lease payments $ 133,378 $ 617 Less: Imputed interest 29,610 107 Present value of lease liabilities $ 103,768 $ 510 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income/ (loss) before income taxes consist of the following: Year ended December 31, 2020 2019 2018 Domestic $ 30,893 $ (16,685) $ (24,442) Foreign 84,436 99,785 84,812 $ 115,329 $ 83,100 $ 60,370 Income tax expense/ (benefit) consists of the following: Year ended December 31, 2020 2019 2018 Current provision/(benefit): Domestic $ 7,946 $ 10,823 $ (13,249) Foreign 14,983 16,694 17,271 $ 22,929 $ 27,517 $ 4,022 Deferred provision/(benefit): Domestic $ 1,343 $ (13,912) $ (1,999) Foreign 1,354 1,567 1,374 $ 2,697 $ (12,345) $ (625) Income tax expense $ 25,626 $ 15,172 $ 3,397 Income taxes (deferred) recognized in other comprehensive income/(loss) are as follows: Year ended December 31, 2020 2019 2018 Deferred tax (expense)/benefit recognized on: Unrealized gain/(loss) on cash flow hedges $ (2,251) $ (683) $ 3,888 Reclassification adjustment for cash flow hedges 88 292 915 Retirement benefits 897 312 (44) Reclassification adjustment for retirement benefits (89) 16 23 Foreign currency translation loss 1,953 (629) 5,903 Total income tax (expense)/benefit recognized in other comprehensive income/(loss) $ 598 $ (692) $ 10,685 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, 2020 2019 2018 Expected tax expense $ 24,219 $ 17,451 $ 12,678 Impact of tax holiday (757) (5,920) (5,448) Foreign tax rate differential (1,991) 1,660 5,014 Deferred tax provision/(benefit) 2,888 3,026 (3,915) Unrecognized tax benefits and interest 6 174 (88) State taxes, net of Federal taxes 3,242 2,137 2,201 Non-deductible expenses 1,467 1,329 3,066 US Tax Reform Act impact — — 176 Excess tax benefit on stock-based compensation (2,378) (2,306) (7,227) Research and development credits (918) (1,650) (1,500) Prior period items (182) (143) (1,466) Others 30 (586) (94) Tax expense $ 25,626 $ 15,172 $ 3,397 The effective tax rate increased from 18.3% during the year ended December 31, 2019 to 22.2% during the year ended December 31, 2020. The Company recorded income tax expense of $25,626 and $15,172 for the year ended December 31, 2020 and 2019, respectively. The increase in income tax expense was primarily as a result of: (i) higher profit during the year ended December 31, 2020 and (ii) recording of a one-time tax expense of $1,320 due to electing a new tax regime for two of the Company’s Indian subsidiaries which provides for a lower tax rate on earnings in exchange for foregoing certain tax credits during the year ended December 31, 2020, compared to a benefit of $1,449 recorded 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 periodically evaluate opportunities to repatriate PTI held by its foreign subsidiaries to fund its operations in the United States and other geographies, and as and when it decides to repatriate such PTI, it may have to accrue additional taxes in accordance with local tax laws, rules and regulations in the relevant foreign jurisdictions. 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 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. In 2019 and 2020, the Company elected this new tax regime for its Indian subsidiaries 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 the Company’s operations centers in the last few years and will expire for other operations centers by year 2022, which may lead to an increase in the Company’s overall tax rate. Following the expiry of the tax exemption, income generated from operations 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 $0.02, $0.17 and $0.16 for the years ended December 31, 2020, 2019 and 2018, respectively. The components of the deferred tax balances as of December 31, 2020 and 2019 are as follows: As of December 31, 2020 December 31, 2019 Deferred tax assets: Depreciation and amortization expense $ 9,710 $ 12,319 Stock-based compensation 9,383 9,313 Accrued employee costs and other expenses 12,208 9,805 Net operating loss carry forward 2,042 2,896 Unrealized exchange loss 391 1,136 Deferred rent 4,782 4,503 Others 281 745 $ 38,797 $ 40,717 Valuation allowance (188) (202) Deferred tax assets $ 38,609 $ 40,515 Deferred tax liabilities: Unrealized exchange gain $ 2,668 $ 505 Intangible assets 19,720 20,696 Unamortized discount on convertible senior notes 2,753 3,395 Others 6,566 5,030 Deferred tax liabilities $ 31,707 $ 29,626 Net deferred tax assets $ 6,902 $ 10,889 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, 2020 and 2019, 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 $188 and $202 as of December 31, 2020 and 2019, respectively. 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, 2020, 2019 and 2018. 2020 2019 2018 Balance as of January 1 $ 1,047 $ 804 $ 824 Increases related to prior year tax positions — 69 — Decreases related to prior year tax positions (324) (156) (320) Increases related to current year tax positions 184 330 300 Balance as of December 31 $ 907 $ 1,047 $ 804 The unrecognized tax benefits as of December 31, 2020 of $907, if recognized, would impact the effective tax rate. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
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 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, 2020, the Company had 2,333,557 shares available for grant under the 2018 Plan (includes 76,145 shares against vested performance-based restricted stock units for which the underlying common stock was issued subsequent to December 31, 2020). 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 within ten years from the date of grant. 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. 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 requisite service period, which is generally the vesting period. The following costs by nature of function related to the Company’s stock-based compensation plan are included in the consolidated statements of income: Year ended December 31, 2020 2019 2018 Cost of revenues $ 6,300 $ 5,895 $ 4,924 General and administrative expenses 11,009 10,012 10,371 Selling and marketing expenses 10,926 10,163 8,606 Total $ 28,235 $ 26,070 $ 23,901 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, 2019 98,161 $ 23.39 $ 4,522 1.86 Granted — — — — Exercised (66,896) 22.44 3,488 — Forfeited — — — — Outstanding at December 31, 2020 31,265 $ 25.43 $ 1,866 1.85 Vested and exercisable at December 31, 2020 31,265 $ 25.43 $ 1,866 1.85 The unrecognized compensation cost for unvested options as of December 31, 2020 was $nil. The Company did not grant any options during the years ended December 31, 2020, 2019 and 2018. The aggregate intrinsic value of options exercised during the years ended December 31, 2020, 2019 and 2018 was $3,488, $3,187 and $4,446, respectively. The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable at December 31, 2020: Options Outstanding, Vested and Exercisable Range of Exercise Prices Shares Weighted-Average $21.01 to $28.00 31,265 $ 25.43 Year ended December 31, 2020 2019 2018 Cash received from options exercised during the year $ 1,501 $ 986 $ 1,397 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- Number Weighted- Outstanding at December 31, 2019 ** 27,386 $ 48.72 913,094 $ 59.61 Granted — — 395,708 76.99 Vested* (27,386) 48.72 (331,340) 56.55 Forfeited — — (73,796) 65.71 Outstanding at December 31, 2020 ** — $ — 903,666 $ 67.84 * Includes 14,368 and 11,517 restricted stock units vested during the years ended December 31, 2020 and 2019, respectively, for which the underlying common stock is yet to be issued. ** As of December 31, 2020 and 2019 restricted stock units vested for which the underlying common stock is yet to be issued are 181,638 and 167,270, 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, 2020, unrecognized compensation cost of $42,317 is expected to be expensed over a weighted average period of 2.51 years. The weighted-average fair value of restricted stock units granted was as follows: Year ended December 31, 2020 2019 2018 Weighted-average fair value $ 76.99 $ 64.29 $ 60.64 The total grant date fair value of restricted stock and restricted stock units vested was as follows: Year ended December 31, 2020 2019 2018 Total grant date fair value $ 20,072 $ 22,084 $ 19,865 Performance Based Stock Awards Under the 2018 Plan, the Company grants PRSUs to executive officers and other specified employees. Generally the grants provide that 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 200% of the PRSUs granted based on the actual achievement of targets. However, the features of the equity incentive compensation program are subject to change by the Compensation Committee of our Board of Directors. 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, 2020 2019 2018 Dividend yield — — — Expected life (years) 2.86 2.86 2.86 Risk free interest rate for expected life 3.85 % 2.46 % 2.38 % Volatility for expected life 34.30 % 20.52 % 21.79 % Performance restricted stock unit activity under the Company’s stock plans is shown below: Revenue Based PRSUs Market Condition Based PRSUs Number Weighted Average Number Weighted Average Outstanding at December 31, 2019 87,685 $ 62.54 87,670 $ 82.10 Granted 61,368 78.29 61,352 102.10 Adjustment upon final determination of level of performance goal achievement* — — (4,701) 70.97 Vested (40,425) 60.58 (35,720) 70.97 Forfeited (2,736) 66.20 (2,734) 85.68 Outstanding at December 31, 2020 105,892 $ 72.32 105,867 $ 97.85 * Represents adjustment of shares vested in respect of PUs and MUs granted in February 2018 upon achievement of the performance targets for such awards for which the underlying common stock was issued subsequent to December 31, 2020. As of December 31, 2020, unrecognized compensation cost of $7,993 is expected to be expensed over a weighted average period of 1.75 years. The impact of COVID-19 on the economic environment is uncertain and has caused variability in the estimation of number of performance based restricted stock units that will eventually vest and the related compensation cost to be recognized in the consolidated statements of income. |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | Impairment and Restructuring Charges In March 2020, the Company completed the wind down of the operations of the Health Integrated business, which was reported within the former Healthcare reportable segment. The Healthcare reportable segment was based on segment reporting structure that existed prior to the Company's transition to new segment reporting structure effective January 1, 2020, which resulted in certain changes to its reportable segments. 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, 2020 and 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 Change in estimated costs during the year (556) — — (556) Payments during the year (1,041) (1,106) (371) (2,518) Balance as of December 31, 2020 $ — $ — $ — $ — Additionally, the Company recognized impairment of ROU assets and long-lived assets of $0 and $3,627 during the years ended December 31, 2020 and 2019, respectively, in the consolidated statements of income under “Impairment and restructuring charges". |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, and interest accrued of $1,313 each as of December 31, 2020 and 2019, related to the Investment Agreement. The Company recognized interest expense on the Notes related to the Investment Agreements as below. Refer to Note 18 – Borrowings to the consolidated financial statements for details. Year ended December 31 2020 2019 2018 Interest expense on Notes $ 5,250 $ 5,206 $ 1,313 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital Commitments At December 31, 2020 and 2019, the Company had committed to spend approximately $6,100 and $6,500, 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 STPI or 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. Contingencies The 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, 2020. 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, 2020 and 2019 is $16,748 and $16,220, respectively, of which the Company has made payments and/or provided bank guarantees to the extent $8,120 and $8,108, respectively. Amounts paid as deposits in respect of such assessments aggregating to $6,307 and $6,252 as of December 31, 2020 and 2019, respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $1,813 and $1,856 as of December 31, 2020 and 2019, 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. In February 2019, there was a judicial pronouncement in India with respect to defined social security 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. The Company will continue to monitor and evaluate its position based on future events and developments in this matter for the implications on the financial statements, if any. In September 2020, the Indian Parliament passed various consolidating labor codes, including the Code on Social Security, 2020 (the “Indian Social Security Code”) which aims to rationalize labor laws. The Indian Social Security Code has implications on defined social security contribution plans, provision of certain benefits or facilities to employees at employer’s costs and post-retirement benefits. Most specifically, it broadens the definition of an employee and wages and liberalizes the definition of “continuous period” for the purpose of determining employee benefits, amongst others. However, the rules for the Indian Social Security Code are yet to be published and the effective date from which these changes are applicable is yet to be notified. The Company will complete its evaluation once the subject rules are notified and will give appropriate impact in the financial statements in the period in which, the Indian Social Security Code becomes effective and the related rules to determine the financial impact are published. 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 Inc. 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 gains and losses arising from intra-group transactions, are eliminated while preparing consolidated 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 purchase consideration paid 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 after its acquisition is recognized in the consolidated statements of income. Effective January 1, 2020, the Company made certain operational and structural changes to more closely integrate the Company’s businesses and to simplify its organizational structure. Under the new structure, the Company reports its financial performance based on new segments described in Note 3 - Segment and Geographical Information to the consolidated financial statements. In conjunction with the new reporting structure, the Company has recast certain prior period amounts, wherever applicable, to conform to the way the Company internally manages and monitors segment performance. This change primarily impacted Note 3 - Segment and Geographical Information and Note 10 - Goodwill and Intangible Assets to the consolidated financial statements, with no impact on the consolidated balance sheets, statements of income, comprehensive income, equity and cash flows. |
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 expected credit losses, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and variable consideration in a customer contract, expected recoverability from customers with contingent fee arrangements, estimated costs to complete fixed price contracts, 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 amortization of ROU, depreciation and amortization periods, purchase price allocation and recoverability of long-lived assets, goodwill and intangibles. As of December 31, 2020, the extent to which the global Coronavirus Disease 2019 pandemic (“COVID-19”) will ultimately impact the Company's business depends on numerous dynamic factors, which the Company still cannot reliably predict. As a result, many of the Company's estimates and assumptions herein required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve with respect to COVID-19, the Company’s estimates may materially change in future periods. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. |
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 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 Company's 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. Share capital and other equity items are translated at exchange rates that prevailed on the date of inception of the transaction. 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. 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. 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 the 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 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 identifies 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 defers 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 expected duration of the relationship with customers, 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 duration of the relationship with customers and recorded under Selling and marketing expenses in the consolidated statements of income. Upfront Payments Made to Customers 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 as a result of 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. |
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 - Cash, Cash Equivalents and Restricted Cash to the consolidated financial statements for details). These deposits with banks have maturity dates after December 31, 2020. Restricted cash presented under current assets represents funds held on behalf of clients in dedicated bank accounts. The corresponding liability against the same is included under “Accrued Expenses and other current liabilities”. 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. |
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”). The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period and any changes in fair value are included in other income, net. 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 other income. |
Accounts Receivable and Allowance for Expected Credit Losses | Accounts receivable are recorded net of allowances for expected credit losses. The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future and estimates relating to the possible effects resulting from COVID-19. As of December 31, 2020 and 2019, the Company had $1,189 and $1,163, respectively, of allowances for expected credit losses.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. Expenditures for replacements and improvements are capitalized, if they enhance the production capacity and future benefits whereas the costs of maintenance and repairs are charged to earnings as incurred. 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 property and equipment which are abandoned and disposed other than by sale, are assessed for revision of their useful life, thereby revising the future depreciation to reflect the use of property and equipment over the remaining shortened life. 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 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. |
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, whereby such 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. The Company also assesses any potential goodwill impairment for all its reporting units immediately prior to any segment changes and reallocates goodwill to its new reporting units using a relative fair value approach. Refer to Note 10 - Goodwill and Intangible Assets to the consolidated financial statements 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 goodwill quantitative 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 also uses the “Market approach” to corroborate the results of the income approach for some of the Company’s reporting units. 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: Useful Lives Customer relationships 3-15 Developed technology 5-10 Trade names and trademarks 3-10 |
Investment in Equity Affiliate | Investments in equity affiliate are initially recorded at cost and any excess purchase consideration paid 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 after its acquisition 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”, or “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). The Company also uses forward contracts designated as net investment hedges to hedge the 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. |
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 recognized 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. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return on plan assets, future compensation increases and attrition rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic benefit cost over the expected remaining period of service of the covered employees using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. These assumptions may not be within the control of the Company and accordingly it is reasonably possible that these assumptions could change in future periods. 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 included in - “Other income, net”. Refer to Note 20 - Employee Benefit Plans to the consolidated financial statements for details. The Company recognizes its liabilities for compensated absences depending on whether the obligation is attributable to employee services already rendered, rights to compensated absences vest or accumulate and payment is probable and estimable. |
Stock-Based Compensation | The Company recognizes stock-based compensation expense in the consolidated statements of income 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. Generally the grants provide that 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 200% of the PRSUs granted based on the actual achievement of both targets. However, the features of the equity incentive compensation program are subject to change by the Compensation Committee of our Board of Directors. 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 at 100% 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 is 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, 2020 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. The grant date fair value for the MUs is determined using a Monte Carlo simulation model and the related compensation expense is expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, regardless of the extent of the market condition achieved. |
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. The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged. |
Financial Instruments and Concentration of Credit Risk | Financial Instruments . For certain financial instruments, including cash and cash equivalents, short-term investments (except investment in mutual funds, as disclosed in Note 16), restricted cash, accounts receivable, accrued interest on term deposits, accrued capital expenditures, accrued expenses and interest payable on borrowings for which fair values approximate their carrying amounts due to their short-term nature. The carrying value of the Company’s outstanding revolving credit facility approximates its fair value because the Company’s interest rate yield is near current market rates for comparable debt 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 short- term investments, and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. The Company’s exposure to credit risk on account receivable is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customer s. To mitigate this risk the Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. |
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 assets”, “Current portion of operating lease liabilities” and “Operating lease liabilities, less current portion” in the Company's consolidated balance sheets. Long-lived assets underlying finance leases are recorded in “Property and equipment” and the current and non-current portion of finance lease liabilities are presented within “Accrued expenses and other current liabilities” and “other non-current liabilities,” respectively, 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 arrangement. 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 terms 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 lease-related concessions to mitigate the economic effects of COVID-19 on lessees in accordance with guidance in Topic 842, Leases , to determine, on a lease-by-lease basis, whether the concession provided by lessor should be accounted for as a lease modification. The Company accounts for a 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. Upon modification, the Company remeasures the lease liability to reflect changes to the remaining lease payments and discount rates and recognizes the amount of the remeasurement of the lease liability as an adjustment to the ROU assets. However, if the carrying amount of the ROU assets is reduced to zero as a result of modification, any remaining amount of the remeasurement is recognized as an expense in consolidated statements of income. On January 1, 2019, the date of initial application, the Company adopted Topic 842, Leases , 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 the opening balance of retained earnings. Refer to Note 21 - Leases 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. Certain units of our Indian subsidiaries were established as 100% Export-Oriented units under the Software Technology Parks of India (“STPI”) or Special Economic Zone ("SEZ") scheme promulgated by the Government of India. These units enjoy exemption from payment of customs, central excise duties, and levies on imported and indigenous capital goods, subject to certain performance conditions being fulfilled by these units. Such exemption is considered as a government grant. Grants from the government are recognized when there is reasonable assurance that these units will comply with those conditions. The carrying amount of an item of property and equipment is reduced by government grants received (i.e. the asset is accounted for on the basis of its net acquisition cost). The grant is recognized in the consolidated statements of income over the life of the depreciable asset in the form of reduced depreciation expense. |
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 and outstanding convertible notes except where the results would be anti-dilutive. 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 Company calculates the dilutive effect of convertible notes using the treasury stock method through the maturity date of the convertible notes, if it has the intent and ability to settle the principal amount of the outstanding convertible notes in cash. Under the treasury stock method, the convertible notes shall have a dilutive impact related to the conversion premium, if any, on diluted earnings per share to the extent the issuance is dilutive based on the average market price of our common stock for a reporting period being greater the conversion price. |
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 March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and LIBOR. The ASU provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are elective and are effective upon issuance for all entities through December 31, 2022. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. In August 2020, FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU removes separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature and hence most of the instruments will be accounted for as a single model (either debt or equity). The ASU also states that entities must apply the if-converted method to all convertible instruments for calculation of diluted EPS and the treasury stock method is no longer available. An entity can use either a full or modified retrospective approach to adopt the ASU’s guidance. The ASU is effective for fiscal years beginning after December 15, 2021 and may be early adopted for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is currently evaluating the potential impact of adoption of this ASU on its consolidated financial statements. In October 2020, FASB issued ASU No. 2020-10, Codification Improvements. This ASU provides guidance for technical corrections such as conforming amendments, clarifications to guidance, simplifications to wording or structure of guidance, and other minor improvements. The amendments in this ASU improves the consistency of the Codification by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to financial statements is codified in the Disclosure Section of the Codification. The amendments are varied in nature and may affect the application of the guidance in cases in which the original guidance may have been unclear. An entity has to apply the amendments retrospectively. The ASU is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the potential impact of adoption of this ASU on its consolidated financial statements. (x) Recently Adopted Accounting Pronouncements In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), 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 Company adopted Topic 326 as of January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment to its retained earnings. The adoption of the ASU had no impact to equity as of January 1, 2020. Further, the impact of adoption of this guidance did not have a material effect on the Company's accounting policies, processes, and systems. Refer to Note 5 - Revenues, net to the consolidated financial statements for details. 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 modify the disclosure requirements on fair value measurements in Topic 820, by prescribing new disclosure requirements, and the 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 early adoption of this ASU, effective January 1, 2020, did not have any material effect on the Company’s disclosures in the 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 was permitted. The early adoption of this ASU, effective January 1, 2020, did not have any material effect on the Company’s disclosures in the 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 and adoption was allowed prospectively. The adoption of this ASU effective January 1, 2020 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 the 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 was permitted. The adoption of this ASU did not 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 provides 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 ASU 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. The Company adopted Topic 326 as of January 1, 2020, whereby no such fair value election was made, accordingly, the adoption of this ASU did not have any material effect on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Estimated Useful Lives | 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 Property and equipment, net consists of the following: As of Estimated useful lives (Years) December 31, 2020 December 31, 2019 Owned assets: Network equipment and computers 3-5 $ 107,109 $ 98,309 Software 3-5 99,708 79,746 Leasehold improvements 3-8 48,052 44,982 Office furniture and equipment 3-8 22,117 22,046 Motor vehicles 2-5 599 601 Buildings 30 1,089 1,114 Land — 712 729 Capital work in progress — 4,647 10,309 284,033 257,836 Less: Accumulated depreciation and amortization (191,629) (179,331) $ 92,404 $ 78,505 Right-of-use assets under finance leases: Leasehold improvements $ 817 $ 738 Office furniture and equipment 348 308 Motor vehicles 688 711 1,853 1,757 Less: Accumulated depreciation and amortization (1,382) (1,120) $ 471 $ 637 Property and equipment, net $ 92,875 $ 79,142 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, 2020 2019 2018 Depreciation and amortization expense $ 36,050 $ 30,423 $ 28,189 The effect of foreign exchange gain / (loss) upon settlement of cash flow hedges recorded under depreciation and amortization, was as follows: Year ended December 31, 2020 2019 2018 Effect of foreign exchange gain/(loss) $ 51 $ 212 $ 153 Internally developed software costs, included under Software, was as follows: As of December 31, 2020 December 31, 2019 Cost $ 18,371 $ 15,784 Less : Accumulated amortization (5,998) (4,989) Internally developed software, net $ 12,373 $ 10,795 The amortization expense on internally developed software recognized in the consolidated statements of income was as follows: Year ended December 31, 2020 2019 2018 Amortization expense $ 4,894 $ 2,745 $ 1,417 |
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: Useful Lives Customer relationships 3-15 Developed technology 5-10 Trade names and trademarks 3-10 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018, respectively, for each of the reportable segments, are as follows: Year ended December 31, 2020 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 341,770 $ 101,315 $ 152,670 $ 362,679 $ 958,434 Cost of revenues (1) 231,884 73,143 89,459 229,450 623,936 Gross profit (1) $ 109,886 $ 28,172 $ 63,211 $ 133,229 $ 334,498 Operating expenses 224,476 Foreign exchange gain, interest expense and other income, net 5,307 Income tax expense 25,626 Loss from equity-method investment 227 Net income $ 89,476 (1) Exclusive of depreciation and amortization expense. Year ended December 31, 2019 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 346,434 $ 97,465 $ 190,118 $ 357,329 $ 991,346 Cost of revenues (1) 238,580 77,048 108,617 231,245 655,490 Gross profit (1) $ 107,854 $ 20,417 $ 81,501 $ 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 (1) Exclusive of depreciation and amortization expense. Year ended December 31, 2018 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 311,152 $ 89,845 $ 196,825 $ 285,290 $ 883,112 Cost of revenues (1) 211,818 70,446 117,987 184,604 584,855 Gross profit (1) $ 99,334 $ 19,399 $ 78,838 $ 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 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Year ended December 31, 2020 2019 2018 BPM and related services (1) $ 595,755 $ 634,017 $ 597,822 Analytics services 362,679 357,329 285,290 Revenues, net $ 958,434 $ 991,346 $ 883,112 (1) BPM and related services include revenues of the Company's Insurance, Healthcare and Emerging Business reportable segments. Refer to the 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, 2020 2019 2018 Revenues, net United States $ 814,672 $ 817,878 $ 732,589 Non-United States United Kingdom 88,659 113,036 114,515 Rest of World 55,103 60,432 36,008 Total Non-United States 143,762 173,468 150,523 Revenues, net $ 958,434 $ 991,346 $ 883,112 |
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, were as follows: As of December 31, 2020 December 31, 2019 Long-lived assets India $ 97,261 $ 78,244 United States 46,659 52,375 Philippines 29,434 26,006 Rest of World 11,439 8,913 Long-lived assets $ 184,793 $ 165,538 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results | Summarized quarterly results for the years ended December 31, 2020 and 2019 are as follows: Three months ended 2020 (Unaudited) Year ended (Audited) March 31 June 30 September 30 December 31 December 31, 2020 Revenues, net $ 245,990 $ 222,473 $ 241,018 $ 248,953 $ 958,434 Gross profit (1) $ 83,334 $ 64,072 $ 88,931 $ 98,161 $ 334,498 Income before equity method investment activity, net and income tax expense $ 28,321 $ 12,567 $ 34,979 $ 39,462 $ 115,329 Net income $ 22,411 $ 8,429 $ 26,418 $ 32,218 $ 89,476 Earnings per share: Basic (2) $ 0.65 $ 0.24 $ 0.77 $ 0.95 $ 2.61 Diluted (2) $ 0.65 $ 0.24 $ 0.76 $ 0.94 $ 2.59 Weighted-average number of shares used in computing earnings per share: Basic (2) 34,401,565 34,486,202 34,327,477 33,882,013 34,273,388 Diluted (2) 34,720,603 34,597,688 34,536,049 34,370,023 34,555,164 Stock compensation expense $ 4,778 $ 7,726 $ 8,346 $ 7,385 $ 28,235 Amortization of intangibles $ 4,154 $ 3,430 $ 3,413 $ 3,415 $ 14,412 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 Income before equity method investment activity, net and income tax expense $ 18,962 $ 15,296 $ 24,814 $ 24,028 $ 83,100 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 (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, 2020 | |
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, 2020 December 31, 2019 Accounts receivable, net $ 147,635 $ 171,864 Contract assets $ 4,437 $ 5,391 Contract liabilities: Deferred revenue (consideration received in advance) $ 30,450 $ 11,259 Consideration received for process transition activities $ 2,774 $ 3,036 Revenue recognized during the year ended December 31, 2020 and 2019, which was included in the contract liabilities balance at the beginning of the respective periods: Year ended December 31, 2020 2019 Deferred revenue (consideration received in advance) $ 10,949 $ 6,077 Consideration received for process transition activities $ 1,424 $ 844 |
Contract Acquisition and Contract Fulfillment Costs | The following table provides details of the Company’s contract acquisition and fulfillment costs: Contract Acquisition Costs Contract Fulfillment Costs Year ended December 31, Year ended December 31, 2020 2019 2020 2019 Opening Balance $ 1,307 $ 713 $ 7,255 $ 4,051 Additions 310 1,222 779 4,652 Amortization (590) (628) (2,403) (1,448) Closing Balance $ 1,027 $ 1,307 $ 5,631 $ 7,255 |
Movement in Allowance for Expected Credit Loss | As of December 31, 2020 January 1, 2020 Accounts receivable, including unbilled receivables $ 148,824 $ 173,027 Less: Allowance for lifetime expected credit loss (1,189) (1,163) Accounts receivable, net $ 147,635 $ 171,864 The movement in allowance for current expected credit loss on customer balances for the year ended December 31, 2020 and December 31, 2019 was as follows: Year ended December 31, 2020 2019 Balance at the beginning of the year $ 1,163 $ 956 Additions during the period 300 354 Charged against allowance (269) (156) Translation adjustment (5) 9 Balance at the end of the year $ 1,189 $ 1,163 |
Other Income, net (Tables)
Other Income, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income, net | Other income, net consists of the following: Year ended December 31, 2020 2019 2018 Gain on sale and mark-to-market of mutual funds $ 9,521 $ 12,965 $ 9,970 Interest and dividend income 2,595 2,399 1,873 Others, net (51) 1,143 1,146 Other income, net $ 12,065 $ 16,507 $ 12,989 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 Numerators: Net income $ 89,476 $ 67,659 $ 56,726 Denominators: Basic weighted average common shares outstanding 34,273,388 34,350,150 34,451,008 Dilutive effect of share based awards 254,717 382,533 579,976 Dilutive effect of conversion premium on convertible notes 27,059 — — Diluted weighted average common shares outstanding 34,555,164 34,732,683 35,030,984 Earnings per share attributable to ExlService Holdings Inc. stockholders: Basic $ 2.61 $ 1.97 $ 1.65 Diluted $ 2.59 $ 1.95 $ 1.62 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 289,061 106,375 121,344 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 December 31, 2018 Cash and cash equivalents $ 218,530 $ 119,165 $ 95,881 Restricted cash (current) 4,690 5,453 5,608 Restricted cash (non-current) 2,299 2,426 2,642 Cash, cash equivalents and restricted cash $ 225,519 $ 127,044 $ 104,131 |
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, 2020 December 31, 2019 December 31, 2018 Cash and cash equivalents $ 218,530 $ 119,165 $ 95,881 Restricted cash (current) 4,690 5,453 5,608 Restricted cash (non-current) 2,299 2,426 2,642 Cash, cash equivalents and restricted cash $ 225,519 $ 127,044 $ 104,131 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | 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 Property and equipment, net consists of the following: As of Estimated useful lives (Years) December 31, 2020 December 31, 2019 Owned assets: Network equipment and computers 3-5 $ 107,109 $ 98,309 Software 3-5 99,708 79,746 Leasehold improvements 3-8 48,052 44,982 Office furniture and equipment 3-8 22,117 22,046 Motor vehicles 2-5 599 601 Buildings 30 1,089 1,114 Land — 712 729 Capital work in progress — 4,647 10,309 284,033 257,836 Less: Accumulated depreciation and amortization (191,629) (179,331) $ 92,404 $ 78,505 Right-of-use assets under finance leases: Leasehold improvements $ 817 $ 738 Office furniture and equipment 348 308 Motor vehicles 688 711 1,853 1,757 Less: Accumulated depreciation and amortization (1,382) (1,120) $ 471 $ 637 Property and equipment, net $ 92,875 $ 79,142 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, 2020 2019 2018 Depreciation and amortization expense $ 36,050 $ 30,423 $ 28,189 The effect of foreign exchange gain / (loss) upon settlement of cash flow hedges recorded under depreciation and amortization, was as follows: Year ended December 31, 2020 2019 2018 Effect of foreign exchange gain/(loss) $ 51 $ 212 $ 153 Internally developed software costs, included under Software, was as follows: As of December 31, 2020 December 31, 2019 Cost $ 18,371 $ 15,784 Less : Accumulated amortization (5,998) (4,989) Internally developed software, net $ 12,373 $ 10,795 The amortization expense on internally developed software recognized in the consolidated statements of income was as follows: Year ended December 31, 2020 2019 2018 Amortization expense $ 4,894 $ 2,745 $ 1,417 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare Emerging Business Analytics TT&L F&A All Other Total Balance at January1, 2019 $ 38,203 $ 19,276 $ — $ 227,289 $ 12,697 $ 47,193 $ 5,326 $ 349,984 Currency translation adjustments 73 — — — (240) (288) — (455) Balance at December 31, 2019 $ 38,276 $ 19,276 $ — $ 227,289 $ 12,457 $ 46,905 $ 5,326 $ 349,529 Goodwill reallocation (1) 12,192 2,693 49,803 — (12,457) (46,905) (5,326) — Currency translation adjustments 31 (16) (455) (1) — — — (441) Balance at December 31, 2020 $ 50,499 $ 21,953 $ 49,348 $ 227,288 $ — $ — $ — $ 349,088 (1) Represents the reallocation of goodwill because of the Company reorganizing its operating segments as described in Note 3 - Segment and Geographical Information to the consolidated financial statements. |
Schedule of Indefinite Lived Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of December 31, 2020 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 73,357 $ (27,464) $ 45,893 Developed technology 23,510 (11,858) 11,652 Trade names and trademarks 5,100 (3,951) 1,149 $ 101,967 $ (43,273) $ 58,694 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 102,867 $ (43,273) $ 59,594 As of December 31, 2019 Gross Accumulated Net Carrying 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 |
Schedule of Amortization of Intangible Assets | The amortization expense recognized in the consolidated statements of income was as follows: Year ended December 31, 2020 2019 2018 Amortization expense $ 14,412 $ 21,558 $ 20,377 |
Schedule of Finite Lived Intangible Assets Useful Lives | The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 6.89 Developed technology 2.71 Trade names and trademarks (Finite lived) 2.04 |
Schedule of Estimated Future Amortization of Intangible Assets | Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2020 was as follows: 2021 $ 12,765 2022 11,341 2023 9,052 2024 6,710 2025 5,958 2026 and thereafter 12,868 Total $ 58,694 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Derivative instruments $ 9,755 $ 4,076 Advances to suppliers 3,906 1,581 Receivables from statutory authorities 15,658 12,608 Contract assets 1,814 1,414 Deferred contract fulfillment costs 2,888 1,673 Interest accrued on term deposits 169 439 Others 2,919 2,803 Other current assets $ 37,109 $ 24,594 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: As of December 31, 2020 December 31, 2019 Lease deposits $ 9,788 $ 9,983 Derivative instruments 6,933 3,433 Deposits with statutory authorities 6,341 6,237 Term deposits 216 1,983 Contract assets 2,623 3,977 Deferred contract fulfillment costs 2,743 5,582 Others 3,455 4,821 Other assets $ 32,099 $ 36,016 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Accrued expenses $ 39,951 $ 50,097 Payable to statutory authorities 10,594 9,247 Accrued capital expenditures 7,857 3,035 Derivative instruments 435 1,783 Client liabilities 4,740 6,378 Interest payable 1,399 1,492 Other current liabilities 1,205 1,732 Finance lease liabilities 229 253 Accrued expenses and other current liabilities $ 66,410 $ 74,017 |
Other Non-Current liabilities (
Other Non-Current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Liabilities, Noncurrent [Abstract] | |
Summary of Non-Current Liabilities | Other non-current liabilities consist of the following: As of December 31, 2020 December 31, 2019 Derivative instruments $ 29 $ 1,250 Unrecognized tax benefits 907 1,047 Retirement benefits 8,940 6,517 Deferred transition revenue 924 1,911 Accrued capital expenditure 3,486 — Other liabilities 3,568 987 Finance lease liabilities 281 430 Other non-current liabilities $ 18,135 $ 12,142 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The balances as of December 31, 2020 and 2019 are as follows: Accumulated Other Comprehensive Loss Foreign currency translation (loss)/ gain Unrealized (loss)/gain on cash flow hedges Retirement benefits Total Balance as of January 1, 2019 $ (84,105) $ (333) $ 971 $ (83,467) Gains / (losses) recognized during the year (2,857) 8,773 (2,539) 3,377 Reclassification to net income (1) — (3,951) (159) (4,110) Income tax benefit / (expense) (2) (629) (391) 328 (692) Accumulated other comprehensive loss as of December 31, 2019 $ (87,591) $ 4,098 $ (1,399) $ (84,892) Gains / (losses) recognized during the year (547) 12,665 (2,401) 9,717 Reclassification to net income (1) — (801) 394 (407) Income tax benefit / (expense) (2) 1,953 (2,163) 808 598 Accumulated other comprehensive loss as of December 31, 2020 $ (86,185) $ 13,799 $ (2,598) $ (74,984) 1. Refer to Note 17 - Derivatives and Hedge Accounting and Note 20 - Employee Benefit Plans to the consolidated financial statements for reclassification to net income. 2. These are income tax benefit / (expense) recognized on changes in the fair values of cash flow hedges, actuarial (loss) / gain on retirement benefits and foreign currency translation (loss) / gain, net of reclassifications related to the period activity. Refer to Note 22 - Income Taxes to the consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019. Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs As of December 31, 2020 (Level 1) (Level 2) (Level 3) Total Assets Mutual funds* $ 160,441 $ — $ — $ 160,441 Derivative financial instruments — 16,688 — 16,688 Total $ 160,441 $ 16,688 $ — $ 177,129 Liabilities Derivative financial instruments $ — $ 464 $ — $ 464 Total $ — $ 464 $ — $ 464 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs 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 * Represents those short-term investments which are carried at the fair value option under ASC 825 "Financial Instruments". |
Derivatives and Hedge Account_2
Derivatives and Hedge Accounting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Other current assets $ 9,740 $ 3,945 Other assets $ 6,933 $ 3,433 Accrued expenses and other current liabilities $ 176 $ 1,524 Other non-current liabilities $ 29 $ 1,250 Derivatives not designated as hedging instruments : As of Foreign currency exchange contracts December 31, 2020 December 31, 2019 Other current assets $ 15 $ 131 Accrued expenses and other current liabilities $ 259 $ 259 |
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, 2020, 2019 and 2018: Year ended December 31, Forward Exchange Contracts: 2020 2019 2018 Unrealized gain/(loss) recognized in AOCI Derivatives in cash flow hedging relationships $ 12,665 $ 8,773 $ (13,724) Gain/(loss) recognized in consolidated statements of income Derivatives not designated as hedging instruments $ 3,802 $ 3,306 $ (3,224) 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, 2020 2019 2018 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 As per consolidated statements of income Gain/(loss) on foreign currency exchange contracts Cash flow hedging relationships Location in consolidated statements of income where gain was reclassed from AOCI Cost of revenues $ 623,936 $ 1,008 $ 655,490 $ 3,269 $ 584,855 $ 2,481 General and administrative expenses $ 113,891 $ (161) $ 126,909 $ 424 $ 116,202 $ 443 Selling and marketing expenses $ 60,123 $ (5) $ 71,842 $ 46 $ 63,612 $ 44 Depreciation and amortization expense $ 50,462 $ (41) $ 51,981 $ 212 $ 48,566 $ 181 $ 801 $ 3,951 $ 3,149 Derivatives not designated as hedging instruments Location in consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 4,432 $ 3,802 $ 3,752 $ 3,306 $ 4,787 $ (3,224) $ 4,432 $ 3,802 $ 3,752 $ 3,306 $ 4,787 $ (3,224) |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Debt Position | The following tables summarizes the Company’s debt position as of December 31, 2020 and 2019. As of December 31, 2020 Revolving Credit Facility Notes Total Current portion of long-term borrowings $ 25,000 $ — $ 25,000 Long-term borrowings $ 64,000 $ 150,000 $ 214,000 Unamortized debt discount — (11,235) (11,235) Unamortized debt issuance costs* — (804) (804) Long-term borrowings $ 64,000 $ 137,961 $ 201,961 Total borrowings $ 89,000 $ 137,961 $ 226,961 As of December 31, 2019 Revolving Credit Facility Structured Payables Notes Total Current portion of long-term borrowings $ 40,000 $ 867 $ — $ 40,867 Long-term borrowings $ 59,000 $ — $ 150,000 $ 209,000 Unamortized debt discount — — (13,851) (13,851) Unamortized debt issuance costs* — — (1,018) (1,018) Long-term borrowings $ 59,000 $ — $ 135,131 $ 194,131 Total borrowings $ 99,000 $ 867 $ 135,131 $ 234,998 |
Schedule of Credit Facilities Carried an Effective Interest Rate | The revolving Credit Facility carried an effective interest rate as shown below. Year ended December 31, 2020 2019 2018 Effective interest rate 2.3 % 4.0 % 3.4 % |
Schedule of Interest Expense Debt Recognized | During the year ended December 31, 2020, 2019 and 2018 the Company recognized interest expense and amortization of debt discount, on the Notes as below: Year ended December 31, 2020 2019 2018 Interest expense on the Notes $ 5,250 $ 5,206 $ 1,313 Amortization of debt discount on the Notes $ 2,616 $ 2,472 $ 600 |
Schedule of Principal Maturities of Borrowings | Payments/maturities for all of the Company's borrowings as of December 31, 2020 were as follows: Notes Revolving Credit Total 2021 $ — $ 25,000 $ 25,000 2022 — 64,000 64,000 2023 — — — 2024 150,000 — 150,000 Total $ 150,000 $ 89,000 $ 239,000 |
Capital Structure (Tables)
Capital Structure (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Purchase of Common Stock from Employees Withholding Tax Payments Related to Vesting of Restricted Stock | The Company purchased shares of common stock from employees in connection with withholding tax payments related to the vesting of restricted stock, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Year ended December 31, 2020 28,052 $ 2,131 $ 75.96 Year ended December 31, 2019 23,859 $ 1,490 $ 62.47 Year ended December 31, 2018 51,446 $ 3,122 $ 60.68 (1) The weighted average purchase price per share 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. |
Summary of Company's Purchased Shares of its Common Stock, Including Commissions | The Company purchased shares of its common stock, including commissions, under the 2019 Repurchase Program and the 2017 Repurchase Program, as applicable, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Year ended December 31, 2020 1,085,153 $ 77,818 $ 71.71 Year ended December 31, 2019 643,486 $ 39,874 $ 61.96 Year ended December 31, 2018 674,604 $ 39,987 $ 59.27 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Summary of Change in Projected Benefit Obligation | Change in projected benefit obligation, was as follows: 2020 2019 Projected benefit obligation as of January 1 $ 15,311 $ 11,044 Service cost 2,706 1,953 Interest cost 964 875 Benefits paid (878) (960) Actuarial loss* 2,425 2,577 Effect of exchange rate changes (62) (178) Projected benefit obligation as of December 31 $ 20,466 $ 15,311 Unfunded amount-non-current $ 8,940 $ 6,517 Unfunded amount-current 14 10 Total accrued liability $ 8,954 $ 6,527 Accumulated benefit obligation $ 12,490 $ 10,743 Accumulated benefit obligation in excess of plan assets $ 978 $ 1,959 *During the year ended December 31, 2020, actuarial loss was driven by changes in actuarial assumptions, offset by experience adjustments on present value of benefit obligations. During the year ended December 31, 2019, actuarial loss was driven by experience adjustments on present value of benefit obligations. |
Components of Net Periodic Benefit Cost | Components of net periodic benefit costs, were as follows: Year ended December 31, 2020 2019 2018 Service cost $ 2,706 $ 1,953 $ 1,735 Interest cost 964 875 714 Expected return on plan assets (636) (568) (514) Amortization of actuarial loss/(gain) 394 (159) (153) Net periodic benefit cost $ 3,428 $ 2,101 $ 1,782 |
Summary of Components Accumulated Other Comprehensive (Loss)/Gain | The components of actuarial (loss) / gain on retirement benefits included in accumulated other comprehensive (loss)/gain, excluding tax effects, were as follows: As of December 31, 2020 2019 2018 Net actuarial (loss)/gain $ (3,772) $ (1,762) $ 940 Net prior service cost (15) (18) (22) Accumulated other comprehensive (loss)/gain, excluding tax effects $ (3,787) $ (1,780) $ 918 |
Summary of Weighted Average Actuarial Assumptions | The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost were: December 31, 2020 2019 2018 Discount rate 4.6 % 6.5 % 7.5 % Rate of increase in compensation levels 7.1 % 6.0 % 8.2 % Expected long-term rate of return on plan assets per annum 7.0 % 7.5 % 7.3 % |
Summary of Expected Benefit Payments | Expected benefit payments during the year ending December 31, 2021 $ 2,795 2022 $ 2,542 2023 $ 2,413 2024 $ 2,098 2025 $ 1,856 2026 to 2030 $ 6,956 |
Change in Plan Assets | Change in Plan Assets Plan assets at January 1, 2019 $ 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 Actual return 661 Employer contribution 3,099 Benefits paid* (869) Effect of exchange rate changes (163) Plan assets at December 31, 2020 $ 11,512 * Benefits payments were substantially made from the plan assets during the year. |
Schedule of Company's Contribution Plan | The Company's accrual for contributions to the 401(k) Plans were as follows: Year ended December 31, 2020 2019 2018 Contribution to the 401(k) Plans $ 3,577 $ 3,617 $ 3,423 The Company's contribution for various defined benefit plans on behalf of employees in India, the Philippines, the Czech Republic, South Africa, Colombia, Australia and Singapore were as follows: Year ended December 31, 2020 2019 2018 Contribution to the defined benefit plans $ 11,332 $ 10,614 $ 7,663 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information As of December 31, 2020 December 31, 2019 Operating Lease Operating lease right-of-use assets $ 91,918 $ 86,396 Operating lease liabilities - Current $ 18,894 $ 24,148 Operating lease liabilities - Non-current 84,874 74,709 Total operating lease liabilities $ 103,768 $ 98,857 Finance Lease Property and equipment, gross $ 1,853 $ 1,757 Accumulated depreciation (1,382) (1,120) Property and equipment, net $ 471 $ 637 Finance lease liabilities - Current $ 229 $ 253 Finance lease liabilities - Non-current 281 430 Total finance lease liabilities $ 510 $ 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, 2020 Year ended December 31, 2019 Finance lease: Amortization of right-of-use assets $ 235 $ 255 Interest on lease liabilities 81 93 $ 316 $ 348 Operating lease (a) 27,146 27,335 $ 27,146 $ 27,335 Sublease income — (146) Total lease cost $ 27,462 $ 27,537 (a) Includes short-term leases, which are immaterial. |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow and other information related to leases are as follows: Year ended Year ended Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 26,589 $ 24,813 Operating cash outflows for finance leases $ 81 $ 93 Financing cash outflows for finance leases $ 249 $ 336 Right-of-use assets obtained in exchange for new operating lease liabilities $ 18,765 $ 36,473 Right-of-use assets obtained in exchange for new finance lease liabilities $ 45 $ 506 Weighted-average remaining lease term (in years) Finance lease 1.8 2.3 Operating lease 6.3 6.0 Weighted-average discount rate Finance lease 10.5% 9.9% Operating lease 7.4% 7.6% |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2020 are as follows: Operating Leases Finance Leases 2021 $ 25,829 $ 262 2022 24,316 194 2023 22,066 114 2024 17,084 36 2025 9,749 11 2026 and thereafter 34,334 — Total lease payments $ 133,378 $ 617 Less: Imputed interest 29,610 107 Present value of lease liabilities $ 103,768 $ 510 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2020 are as follows: Operating Leases Finance Leases 2021 $ 25,829 $ 262 2022 24,316 194 2023 22,066 114 2024 17,084 36 2025 9,749 11 2026 and thereafter 34,334 — Total lease payments $ 133,378 $ 617 Less: Imputed interest 29,610 107 Present value of lease liabilities $ 103,768 $ 510 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income /(Loss) Before Income Taxes | The components of income/ (loss) before income taxes consist of the following: Year ended December 31, 2020 2019 2018 Domestic $ 30,893 $ (16,685) $ (24,442) Foreign 84,436 99,785 84,812 $ 115,329 $ 83,100 $ 60,370 |
Summary of Income Tax Expense/(Benefit) | Income tax expense/ (benefit) consists of the following: Year ended December 31, 2020 2019 2018 Current provision/(benefit): Domestic $ 7,946 $ 10,823 $ (13,249) Foreign 14,983 16,694 17,271 $ 22,929 $ 27,517 $ 4,022 Deferred provision/(benefit): Domestic $ 1,343 $ (13,912) $ (1,999) Foreign 1,354 1,567 1,374 $ 2,697 $ (12,345) $ (625) Income tax expense $ 25,626 $ 15,172 $ 3,397 |
Schedule of Income Tax (Benefit) Recognized in Other Comprehensive Income | Income taxes (deferred) recognized in other comprehensive income/(loss) are as follows: Year ended December 31, 2020 2019 2018 Deferred tax (expense)/benefit recognized on: Unrealized gain/(loss) on cash flow hedges $ (2,251) $ (683) $ 3,888 Reclassification adjustment for cash flow hedges 88 292 915 Retirement benefits 897 312 (44) Reclassification adjustment for retirement benefits (89) 16 23 Foreign currency translation loss 1,953 (629) 5,903 Total income tax (expense)/benefit recognized in other comprehensive income/(loss) $ 598 $ (692) $ 10,685 |
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, 2020 2019 2018 Expected tax expense $ 24,219 $ 17,451 $ 12,678 Impact of tax holiday (757) (5,920) (5,448) Foreign tax rate differential (1,991) 1,660 5,014 Deferred tax provision/(benefit) 2,888 3,026 (3,915) Unrecognized tax benefits and interest 6 174 (88) State taxes, net of Federal taxes 3,242 2,137 2,201 Non-deductible expenses 1,467 1,329 3,066 US Tax Reform Act impact — — 176 Excess tax benefit on stock-based compensation (2,378) (2,306) (7,227) Research and development credits (918) (1,650) (1,500) Prior period items (182) (143) (1,466) Others 30 (586) (94) Tax expense $ 25,626 $ 15,172 $ 3,397 |
Summary of Components of Deferred Tax Balances | The components of the deferred tax balances as of December 31, 2020 and 2019 are as follows: As of December 31, 2020 December 31, 2019 Deferred tax assets: Depreciation and amortization expense $ 9,710 $ 12,319 Stock-based compensation 9,383 9,313 Accrued employee costs and other expenses 12,208 9,805 Net operating loss carry forward 2,042 2,896 Unrealized exchange loss 391 1,136 Deferred rent 4,782 4,503 Others 281 745 $ 38,797 $ 40,717 Valuation allowance (188) (202) Deferred tax assets $ 38,609 $ 40,515 Deferred tax liabilities: Unrealized exchange gain $ 2,668 $ 505 Intangible assets 19,720 20,696 Unamortized discount on convertible senior notes 2,753 3,395 Others 6,566 5,030 Deferred tax liabilities $ 31,707 $ 29,626 Net deferred tax assets $ 6,902 $ 10,889 |
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, 2020, 2019 and 2018. 2020 2019 2018 Balance as of January 1 $ 1,047 $ 804 $ 824 Increases related to prior year tax positions — 69 — Decreases related to prior year tax positions (324) (156) (320) Increases related to current year tax positions 184 330 300 Balance as of December 31 $ 907 $ 1,047 $ 804 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Costs Related to Company's Stock-Based Compensation Plan | The following costs by nature of function related to the Company’s stock-based compensation plan are included in the consolidated statements of income: Year ended December 31, 2020 2019 2018 Cost of revenues $ 6,300 $ 5,895 $ 4,924 General and administrative expenses 11,009 10,012 10,371 Selling and marketing expenses 10,926 10,163 8,606 Total $ 28,235 $ 26,070 $ 23,901 |
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, 2019 98,161 $ 23.39 $ 4,522 1.86 Granted — — — — Exercised (66,896) 22.44 3,488 — Forfeited — — — — Outstanding at December 31, 2020 31,265 $ 25.43 $ 1,866 1.85 Vested and exercisable at December 31, 2020 31,265 $ 25.43 $ 1,866 1.85 Year ended December 31, 2020 2019 2018 Cash received from options exercised during the year $ 1,501 $ 986 $ 1,397 |
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, 2020: Options Outstanding, Vested and Exercisable Range of Exercise Prices Shares Weighted-Average $21.01 to $28.00 31,265 $ 25.43 |
Restricted Stock Activity Under Company's Stock Plans | 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- Number Weighted- Outstanding at December 31, 2019 ** 27,386 $ 48.72 913,094 $ 59.61 Granted — — 395,708 76.99 Vested* (27,386) 48.72 (331,340) 56.55 Forfeited — — (73,796) 65.71 Outstanding at December 31, 2020 ** — $ — 903,666 $ 67.84 * Includes 14,368 and 11,517 restricted stock units vested during the years ended December 31, 2020 and 2019, respectively, for which the underlying common stock is yet to be issued. ** As of December 31, 2020 and 2019 restricted stock units vested for which the underlying common stock is yet to be issued are 181,638 and 167,270, respectively. The weighted-average fair value of restricted stock units granted was as follows: Year ended December 31, 2020 2019 2018 Weighted-average fair value $ 76.99 $ 64.29 $ 60.64 The total grant date fair value of restricted stock and restricted stock units vested was as follows: Year ended December 31, 2020 2019 2018 Total grant date fair value $ 20,072 $ 22,084 $ 19,865 Revenue Based PRSUs Market Condition Based PRSUs Number Weighted Average Number Weighted Average Outstanding at December 31, 2019 87,685 $ 62.54 87,670 $ 82.10 Granted 61,368 78.29 61,352 102.10 Adjustment upon final determination of level of performance goal achievement* — — (4,701) 70.97 Vested (40,425) 60.58 (35,720) 70.97 Forfeited (2,736) 66.20 (2,734) 85.68 Outstanding at December 31, 2020 105,892 $ 72.32 105,867 $ 97.85 * Represents adjustment of shares vested in respect of PUs and MUs granted in February 2018 upon achievement of the performance targets for such awards for which the underlying common stock was issued subsequent to December 31, 2020. |
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, 2020 2019 2018 Dividend yield — — — Expected life (years) 2.86 2.86 2.86 Risk free interest rate for expected life 3.85 % 2.46 % 2.38 % Volatility for expected life 34.30 % 20.52 % 21.79 % |
Impairment and Restructuring _2
Impairment and Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 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 Change in estimated costs during the year (556) — — (556) Payments during the year (1,041) (1,106) (371) (2,518) Balance as of December 31, 2020 $ — $ — $ — $ — |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The Company recognized interest expense on the Notes related to the Investment Agreements as below. Refer to Note 18 – Borrowings to the consolidated financial statements for details. Year ended December 31 2020 2019 2018 Interest expense on Notes $ 5,250 $ 5,206 $ 1,313 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Revenues and Reimbursements (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 1,189 | $ 1,163 |
Unbilled accounts receivable | $ 63,995 | $ 73,920 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment, Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 | |
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 |
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 |
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. 15, 2018 | Dec. 31, 2020 |
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% | |
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, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Operating lease right-of-use assets | $ 91,918 | $ 86,396 | |
Present value of lease liabilities | $ 103,768 | $ 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, 2020operating_segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment and Geographical Info_4
Segment and Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | $ 248,953 | $ 241,018 | $ 222,473 | $ 245,990 | $ 256,872 | $ 251,392 | $ 243,509 | $ 239,573 | $ 958,434 | $ 991,346 | $ 883,112 | ||||
Cost of revenues | [1] | 623,936 | 655,490 | 584,855 | |||||||||||
Gross profit | 98,161 | 88,931 | 64,072 | 83,334 | 88,610 | 83,850 | 81,063 | 82,333 | 334,498 | [1] | 335,856 | [1] | 298,257 | [1] | |
Operating expenses | 224,476 | 259,403 | 248,436 | ||||||||||||
Foreign exchange gain, interest expense and other income, net | 5,307 | 6,647 | 10,549 | ||||||||||||
Income tax expense | 25,626 | 15,172 | 3,397 | ||||||||||||
Loss from equity-method investment | 227 | 269 | 247 | ||||||||||||
Net income attributable to ExlService Holdings, Inc. stockholders | $ 32,218 | $ 26,418 | $ 8,429 | $ 22,411 | $ 21,356 | $ 19,044 | $ 12,564 | $ 14,695 | 89,476 | 67,659 | 56,726 | ||||
BPM and related services | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 595,755 | 634,017 | 597,822 | ||||||||||||
Analytics services | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 362,679 | 357,329 | 285,290 | ||||||||||||
Insurance | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 341,770 | 346,434 | 311,152 | ||||||||||||
Cost of revenues | 231,884 | 238,580 | 211,818 | ||||||||||||
Gross profit | 109,886 | 107,854 | 99,334 | ||||||||||||
Emerging Business | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 152,670 | 190,118 | 196,825 | ||||||||||||
Cost of revenues | 89,459 | 108,617 | 117,987 | ||||||||||||
Gross profit | 63,211 | 81,501 | 78,838 | ||||||||||||
Analytics | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 362,679 | 357,329 | 285,290 | ||||||||||||
Cost of revenues | 229,450 | 231,245 | 184,604 | ||||||||||||
Gross profit | 133,229 | 126,084 | 100,686 | ||||||||||||
Healthcare | |||||||||||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||||||||||||
Revenues, net | 101,315 | 97,465 | 89,845 | ||||||||||||
Cost of revenues | 73,143 | 77,048 | 70,446 | ||||||||||||
Gross profit | $ 28,172 | $ 20,417 | $ 19,399 | ||||||||||||
[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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues, net | |||||||||||
Revenues, net | $ 248,953 | $ 241,018 | $ 222,473 | $ 245,990 | $ 256,872 | $ 251,392 | $ 243,509 | $ 239,573 | $ 958,434 | $ 991,346 | $ 883,112 |
Long-lived assets | |||||||||||
Long-lived assets | 184,793 | 165,538 | 184,793 | 165,538 | |||||||
United States | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 814,672 | 817,878 | 732,589 | ||||||||
Long-lived assets | |||||||||||
Long-lived assets | 46,659 | 52,375 | 46,659 | 52,375 | |||||||
India | |||||||||||
Long-lived assets | |||||||||||
Long-lived assets | 97,261 | 78,244 | 97,261 | 78,244 | |||||||
Philippines | |||||||||||
Long-lived assets | |||||||||||
Long-lived assets | 29,434 | 26,006 | 29,434 | 26,006 | |||||||
United Kingdom | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 88,659 | 113,036 | 114,515 | ||||||||
Rest of World | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 55,103 | 60,432 | 36,008 | ||||||||
Long-lived assets | |||||||||||
Long-lived assets | $ 11,439 | $ 8,913 | 11,439 | 8,913 | |||||||
Total Non-United States | |||||||||||
Revenues, net | |||||||||||
Revenues, net | $ 143,762 | $ 173,468 | $ 150,523 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues, net | $ 248,953 | $ 241,018 | $ 222,473 | $ 245,990 | $ 256,872 | $ 251,392 | $ 243,509 | $ 239,573 | $ 958,434 | $ 991,346 | $ 883,112 | |||
Gross profit | 98,161 | 88,931 | 64,072 | 83,334 | 88,610 | 83,850 | 81,063 | 82,333 | 334,498 | [1] | 335,856 | [1] | 298,257 | [1] |
Income before equity method investment activity, net and income tax expense | 39,462 | 34,979 | 12,567 | 28,321 | 24,028 | 24,814 | 15,296 | 18,962 | 115,329 | 83,100 | 60,370 | |||
Net income | $ 32,218 | $ 26,418 | $ 8,429 | $ 22,411 | $ 21,356 | $ 19,044 | $ 12,564 | $ 14,695 | $ 89,476 | $ 67,659 | $ 56,726 | |||
Earnings per share: | ||||||||||||||
Basic (in dollars per share) | $ 0.95 | $ 0.77 | $ 0.24 | $ 0.65 | $ 0.62 | $ 0.55 | $ 0.36 | $ 0.43 | $ 2.61 | $ 1.97 | $ 1.65 | |||
Diluted (in dollars per share) | $ 0.94 | $ 0.76 | $ 0.24 | $ 0.65 | $ 0.62 | $ 0.55 | $ 0.36 | $ 0.42 | $ 2.59 | $ 1.95 | $ 1.62 | |||
Weighted-average number of shares used in computing earnings per share: | ||||||||||||||
Basic (in shares) | 33,882,013 | 34,327,477 | 34,486,202 | 34,401,565 | 34,253,308 | 34,322,449 | 34,451,671 | 34,374,815 | 34,273,388 | 34,350,150 | 34,451,008 | |||
Diluted (in shares) | 34,370,023 | 34,536,049 | 34,597,688 | 34,720,603 | 34,696,896 | 34,699,497 | 34,702,547 | 34,833,435 | 34,555,164 | 34,732,683 | 35,030,984 | |||
Stock compensation expense | $ 7,385 | $ 8,346 | $ 7,726 | $ 4,778 | $ 4,532 | $ 7,427 | $ 7,155 | $ 6,956 | $ 28,235 | $ 26,070 | $ 23,901 | |||
Amortization of intangibles | $ 3,415 | $ 3,413 | $ 3,430 | $ 4,154 | $ 4,974 | $ 5,502 | $ 5,554 | $ 5,528 | $ 14,412 | $ 21,558 | $ 20,377 | |||
[1] | Exclusive of depreciation and amortization expense. |
Revenues, net - Contracts with
Revenues, net - Contracts with Customer, Receivables and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 147,635 | $ 171,864 | $ 171,864 |
Contract assets | 4,437 | 5,391 | |
Contract liabilities | |||
Deferred revenue (consideration received in advance) | 30,450 | 11,259 | |
Consideration received for process transition activities | 2,774 | 3,036 | |
Deferred revenue (consideration received in advance) | 10,949 | 6,077 | |
Consideration received for process transition activities | $ 1,424 | $ 844 |
Revenues, net - Narrative (Deta
Revenues, net - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | ||||
Accounts receivable not billed | $ 63,995,000 | $ 73,920,000 | ||
Provision for doubtful receivables | 1,189,000 | 1,163,000 | $ 1,163,000 | $ 956,000 |
Previous Accounting Guidance | ||||
Capitalized Contract Cost [Line Items] | ||||
Provision for doubtful receivables | $ 1,163,000 | |||
Contract Acquisition Costs | ||||
Capitalized Contract Cost [Line Items] | ||||
Impairment loss in relation to costs capitalized | $ 0 | $ 0 |
Revenues, net - Contract Costs
Revenues, net - Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contract Acquisition Costs | ||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | ||
Opening Balance | $ 1,307 | $ 713 |
Additions | 310 | 1,222 |
Amortization | (590) | (628) |
Closing Balance | 1,027 | 1,307 |
Contract Fulfillment Costs | ||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | ||
Opening Balance | 7,255 | 4,051 |
Additions | 779 | 4,652 |
Amortization | (2,403) | (1,448) |
Closing Balance | $ 5,631 | $ 7,255 |
Revenues, net - Accounts Receiv
Revenues, net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||||
Accounts receivable, including unbilled receivables | $ 148,824 | $ 173,027 | ||
Less: Allowance for lifetime expected credit loss | (1,189) | (1,163) | $ (1,163) | $ (956) |
Accounts receivable, net | $ 147,635 | $ 171,864 | $ 171,864 |
Revenues, net - Allowance for C
Revenues, net - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at the beginning of the year | $ 1,163 | $ 956 |
Additions during the period | 300 | 354 |
Charged against allowance | (269) | (156) |
Translation adjustment | (5) | 9 |
Balance at the end of the year | $ 1,189 | $ 1,163 |
Other Income, net - Summary of
Other Income, net - Summary of Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Gain on sale and mark-to-market of mutual funds | $ 9,521 | $ 12,965 | $ 9,970 |
Interest and dividend income | 2,595 | 2,399 | 1,873 |
Others, net | (51) | 1,143 | 1,146 |
Other income, net | $ 12,065 | $ 16,507 | $ 12,989 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | Dec. 31, 2020 | Oct. 01, 2018 |
3.50% Convertible Senior Notes due October 1, 2024 | Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Conversion price (in dollars per share) | $ 75 | $ 75 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerators: | |||||||||||
Net income | $ 32,218 | $ 26,418 | $ 8,429 | $ 22,411 | $ 21,356 | $ 19,044 | $ 12,564 | $ 14,695 | $ 89,476 | $ 67,659 | $ 56,726 |
Denominators: | |||||||||||
Basic weighted average common shares outstanding (in shares) | 33,882,013 | 34,327,477 | 34,486,202 | 34,401,565 | 34,253,308 | 34,322,449 | 34,451,671 | 34,374,815 | 34,273,388 | 34,350,150 | 34,451,008 |
Dilutive effect of share-based awards (in shares) | 254,717 | 382,533 | 579,976 | ||||||||
Dilutive effect of conversion premium on convertible notes (in shares) | 27,059 | 0 | 0 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 34,370,023 | 34,536,049 | 34,597,688 | 34,720,603 | 34,696,896 | 34,699,497 | 34,702,547 | 34,833,435 | 34,555,164 | 34,732,683 | 35,030,984 |
Earnings per share attributable to ExlService Holdings Inc. stockholders: | |||||||||||
Basic (in dollars per share) | $ 0.95 | $ 0.77 | $ 0.24 | $ 0.65 | $ 0.62 | $ 0.55 | $ 0.36 | $ 0.43 | $ 2.61 | $ 1.97 | $ 1.65 |
Diluted (in dollars per share) | $ 0.94 | $ 0.76 | $ 0.24 | $ 0.65 | $ 0.62 | $ 0.55 | $ 0.36 | $ 0.42 | $ 2.59 | $ 1.95 | $ 1.62 |
Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share (in shares) | 289,061 | 106,375 | 121,344 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 218,530 | $ 119,165 | $ 95,881 | |
Restricted cash (current) | 4,690 | 5,453 | 5,608 | |
Restricted cash (non-current) | 2,299 | 2,426 | 2,642 | |
Cash, cash equivalents and restricted cash | $ 225,519 | $ 127,044 | $ 104,131 | $ 94,277 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Owned assets: | ||
Owned assets, gross | $ 284,033 | $ 257,836 |
Less: Accumulated depreciation and amortization | (191,629) | (179,331) |
Owned assets, net | 92,404 | 78,505 |
Right-of-use assets under finance leases: | ||
Right of use assets under finance leases, gross | 1,853 | 1,757 |
Less: Accumulated depreciation and amortization | (1,382) | (1,120) |
Property and equipment, net | 471 | 637 |
Property and equipment, net | 92,875 | 79,142 |
Network equipment and computers | ||
Owned assets: | ||
Owned assets, gross | $ 107,109 | 98,309 |
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 | $ 99,708 | 79,746 |
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 | $ 48,052 | 44,982 |
Right-of-use assets under finance leases: | ||
Right of use assets under finance leases, gross | $ 817 | 738 |
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 | $ 22,117 | 22,046 |
Right-of-use assets under finance leases: | ||
Right of use assets under finance leases, gross | $ 348 | 308 |
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 | $ 599 | 601 |
Right-of-use assets under finance leases: | ||
Right of use assets under finance leases, gross | $ 688 | 711 |
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 | $ 1,089 | 1,114 |
Land | ||
Owned assets: | ||
Owned assets, gross | 712 | 729 |
Capital work in progress | ||
Owned assets: | ||
Owned assets, gross | $ 4,647 | $ 10,309 |
Property and Equipment, net - D
Property and Equipment, net - Depreciation and Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 36,050 | $ 30,423 | $ 28,189 |
Depreciation & amortization | |||
Property, Plant and Equipment [Line Items] | |||
Effect of foreign exchange gain/(loss) | $ 51 | $ 212 | $ 153 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Cost | $ 18,371 | $ 15,784 | |
Less : Accumulated amortization | (5,998) | (4,989) | |
Internally developed software, net | 12,373 | 10,795 | |
Amortization expense | $ 4,894 | $ 2,745 | $ 1,417 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Long-lived assets Impairment charges | $ 0 | $ 2,178,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 349,529 | $ 349,984 |
Currency translation adjustments | (441) | (455) |
Goodwill reallocation | 0 | |
Ending Balance | 349,088 | 349,529 |
Insurance | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 38,276 | 38,203 |
Currency translation adjustments | 31 | 73 |
Goodwill reallocation | 12,192 | |
Ending Balance | 50,499 | 38,276 |
Healthcare | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 19,276 | 19,276 |
Currency translation adjustments | (16) | 0 |
Goodwill reallocation | 2,693 | |
Ending Balance | 21,953 | 19,276 |
Emerging Business | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Currency translation adjustments | (455) | 0 |
Goodwill reallocation | 49,803 | |
Ending Balance | 49,348 | 0 |
Analytics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 227,289 | 227,289 |
Currency translation adjustments | (1) | 0 |
Goodwill reallocation | 0 | |
Ending Balance | 227,288 | 227,289 |
TT&L | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 12,457 | 12,697 |
Currency translation adjustments | 0 | (240) |
Goodwill reallocation | (12,457) | |
Ending Balance | 0 | 12,457 |
F&A | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 46,905 | 47,193 |
Currency translation adjustments | 0 | (288) |
Goodwill reallocation | (46,905) | |
Ending Balance | 0 | 46,905 |
All Other | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 5,326 | 5,326 |
Currency translation adjustments | 0 | 0 |
Goodwill reallocation | (5,326) | |
Ending Balance | $ 0 | $ 5,326 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 349,088 | $ 349,529 | $ 349,984 |
Long-term revenue growth rate | |||
Business Acquisition [Line Items] | |||
Reporting unit, measurement input | 0.030 | ||
Discount rate | Minimum | |||
Business Acquisition [Line Items] | |||
Reporting unit, measurement input | 0.104 | ||
Discount rate | Maximum | |||
Business Acquisition [Line Items] | |||
Reporting unit, measurement input | 0.120 | ||
SCIO | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 163,751 | ||
Percentage of total goodwill | 47.00% | ||
Percentage of fair value in excess of carrying amount | 10.00% |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 101,967 | $ 129,678 |
Finite-lived intangible assets, accumulated amortization | (43,273) | (56,596) |
Total | 58,694 | 73,082 |
Total intangible assets, gross carrying amount | 102,867 | 130,578 |
Total intangible assets, net carrying amount | 59,594 | 73,982 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, trade names and trademarks | 900 | 900 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 73,357 | 97,602 |
Finite-lived intangible assets, accumulated amortization | (27,464) | (43,330) |
Total | 45,893 | 54,272 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 23,510 | 26,976 |
Finite-lived intangible assets, accumulated amortization | (11,858) | (10,687) |
Total | 11,652 | 16,289 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 5,100 | 5,100 |
Finite-lived intangible assets, accumulated amortization | (3,951) | (2,579) |
Total | $ 1,149 | $ 2,521 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Amortization expense | $ 3,415 | $ 3,413 | $ 3,430 | $ 4,154 | $ 4,974 | $ 5,502 | $ 5,554 | $ 5,528 | $ 14,412 | $ 21,558 | $ 20,377 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Weighted Average Life of Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 6 years 10 months 20 days |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 2 years 8 months 15 days |
Trade names and trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 2 years 14 days |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 12,765 | |
2022 | 11,341 | |
2023 | 9,052 | |
2024 | 6,710 | |
2025 | 5,958 | |
2026 and thereafter | 12,868 | |
Total | $ 58,694 | $ 73,082 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Derivative instruments | $ 9,755 | $ 4,076 |
Advances to suppliers | 3,906 | 1,581 |
Receivables from statutory authorities | 15,658 | 12,608 |
Contract assets | 1,814 | 1,414 |
Deferred contract fulfillment costs | 2,888 | 1,673 |
Interest accrued on term deposits | 169 | 439 |
Others | 2,919 | 2,803 |
Other current assets | $ 37,109 | $ 24,594 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Lease deposits | $ 9,788 | $ 9,983 |
Derivative instruments | 6,933 | 3,433 |
Deposits with statutory authorities | 6,341 | 6,237 |
Term deposits | 216 | 1,983 |
Contract assets | 2,623 | 3,977 |
Deferred contract fulfillment costs | 2,743 | 5,582 |
Others | 3,455 | 4,821 |
Other assets | $ 32,099 | $ 36,016 |
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, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued expenses | $ 39,951 | $ 50,097 |
Payable to statutory authorities | 10,594 | 9,247 |
Accrued capital expenditures | 7,857 | 3,035 |
Derivative instruments | 435 | 1,783 |
Client liabilities | 4,740 | 6,378 |
Interest payable | 1,399 | 1,492 |
Other current liabilities | 1,205 | 1,732 |
Finance lease liabilities | 229 | 253 |
Accrued expenses and other current liabilities | $ 66,410 | $ 74,017 |
Other Non-Current liabilities -
Other Non-Current liabilities - Summary of Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities, Noncurrent [Abstract] | ||
Derivative instruments | $ 29 | $ 1,250 |
Unrecognized tax benefits | 907 | 1,047 |
Retirement benefits | 8,940 | 6,517 |
Deferred transition revenue | 924 | 1,911 |
Accrued capital expenditure | 3,486 | 0 |
Other liabilities | 3,568 | 987 |
Finance lease liabilities | 281 | 430 |
Other liabilities | $ 18,135 | $ 12,142 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 670,001 | $ 618,319 |
Gains / (losses) recognized during the year | 9,717 | 3,377 |
Reclassification to net income | (407) | (4,110) |
Income tax benefit / (expense) | 598 | (692) |
Ending balance | 719,172 | 670,001 |
Foreign currency translation (loss)/ gain | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (87,591) | (84,105) |
Gains / (losses) recognized during the year | (547) | (2,857) |
Reclassification to net income | 0 | 0 |
Income tax benefit / (expense) | 1,953 | (629) |
Ending balance | (86,185) | (87,591) |
Unrealized (loss)/gain on cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 4,098 | (333) |
Gains / (losses) recognized during the year | 12,665 | 8,773 |
Reclassification to net income | (801) | (3,951) |
Income tax benefit / (expense) | (2,163) | (391) |
Ending balance | 13,799 | 4,098 |
Retirement benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,399) | 971 |
Gains / (losses) recognized during the year | (2,401) | (2,539) |
Reclassification to net income | 394 | (159) |
Income tax benefit / (expense) | 808 | 328 |
Ending balance | (2,598) | (1,399) |
Accumulated Other Comprehensive (Loss)/Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (84,892) | (83,467) |
Ending balance | $ (74,984) | $ (84,892) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | ||
Mutual funds | $ 160,441,000 | $ 166,330,000 |
Derivative financial instruments | 16,688,000 | 7,509,000 |
Total | 177,129,000 | 173,839,000 |
Liabilities | ||
Derivative financial instruments | 464,000 | 3,033,000 |
Total | 464,000 | 3,033,000 |
Impairment charges | 0 | 0 |
(Level 1) | ||
Assets | ||
Mutual funds | 160,441,000 | 166,330,000 |
Derivative financial instruments | 0 | 0 |
Total | 160,441,000 | 166,330,000 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Total | 0 | 0 |
(Level 2) | ||
Assets | ||
Mutual funds | 0 | 0 |
Derivative financial instruments | 16,688,000 | 7,509,000 |
Total | 16,688,000 | 7,509,000 |
Liabilities | ||
Derivative financial instruments | 464,000 | 3,033,000 |
Total | 464,000 | 3,033,000 |
Fair value of convertible notes | 152,384,000 | 149,934,000 |
(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, $ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020EUR (€) | Dec. 31, 2020COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019EUR (€) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Net derivative gains which could be reclassified into earnings within the next 12 months | $ 9,564 | ||||||
Maximum outstanding term of cash flow hedges | 45 months | ||||||
Derivative designated as hedging instruments | Derivatives in cash flow hedging relationships | Foreign currency exchange contracts | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Foreign exchange contracts outstanding | $ 451,935 | $ 410,390 | |||||
Derivative not designated as hedging instruments | Foreign currency exchange contracts | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Foreign exchange contracts outstanding | $ 143,394 | £ 6,753 | € 2,447 | $ 8,287,950 | 124,045 | £ 10,843 | € 1,289 |
Forward contracts | Derivative 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 |
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, 2020 | Dec. 31, 2019 |
Derivative designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 9,740 | $ 3,945 |
Derivative designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 6,933 | 3,433 |
Derivative designated as hedging instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 176 | 1,524 |
Derivative designated as hedging instruments | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 29 | 1,250 |
Derivative not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 15 | 131 |
Derivative not designated as hedging instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | $ 259 | $ 259 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in consolidated statements of income | $ (4,432) | $ (3,752) | $ (4,787) |
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 | 12,665 | 8,773 | (13,724) |
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 | $ 3,802 | $ 3,306 | $ (3,224) |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Cost of revenues | [1] | $ 623,936 | $ 655,490 | $ 584,855 | ||||||||
General and administrative expenses | 113,891 | 126,909 | 116,202 | |||||||||
Selling and marketing expenses | 60,123 | 71,842 | 63,612 | |||||||||
Depreciation and amortization expense | 50,462 | 51,981 | 48,566 | |||||||||
Net income | $ 32,218 | $ 26,418 | $ 8,429 | $ 22,411 | $ 21,356 | $ 19,044 | $ 12,564 | $ 14,695 | 89,476 | 67,659 | 56,726 | |
Foreign exchange gain/(loss), net | 4,432 | 3,752 | 4,787 | |||||||||
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 | 1,008 | 3,269 | 2,481 | |||||||||
General and administrative expenses | (161) | 424 | 443 | |||||||||
Selling and marketing expenses | (5) | 46 | 44 | |||||||||
Depreciation and amortization expense | (41) | 212 | 181 | |||||||||
Net income | 801 | 3,951 | 3,149 | |||||||||
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 | (3,802) | (3,306) | 3,224 | |||||||||
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 | $ 3,802 | $ 3,306 | $ (3,224) | |||||||||
[1] | Exclusive of depreciation and amortization expense. |
Borrowings - Company's Debt Pos
Borrowings - Company's Debt Position (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | $ 25,000 | $ 40,867 |
Long-term borrowings | 214,000 | 209,000 |
Unamortized debt discount | (11,235) | (13,851) |
Unamortized debit issuance costs | (804) | (1,018) |
Long-term borrowings | 201,961 | 194,131 |
Total | 226,961 | 234,998 |
Structured Payables | ||
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | 867 | |
Long-term borrowings | 0 | |
Unamortized debt discount | 0 | |
Unamortized debit issuance costs | 0 | |
Long-term borrowings | 0 | |
Total | 867 | |
Notes | ||
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | 0 | 0 |
Long-term borrowings | 150,000 | 150,000 |
Unamortized debt discount | (11,235) | (13,851) |
Unamortized debit issuance costs | (804) | (1,018) |
Long-term borrowings | 137,961 | 135,131 |
Total | 137,961 | 135,131 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | 25,000 | 40,000 |
Long-term borrowings | 64,000 | 59,000 |
Unamortized debt discount | 0 | 0 |
Unamortized debit issuance costs | 0 | 0 |
Long-term borrowings | 64,000 | 59,000 |
Total | 89,000 | 99,000 |
Unamortized debt issuance costs | $ 490 | $ 748 |
Borrowings (Detail)
Borrowings (Detail) | Oct. 01, 2018USD ($)$ / shares | Nov. 21, 2017USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 02, 2018USD ($) |
Credit Facilities [Line Items] | ||||||
Payment of debt issuance costs | $ 0 | $ 117,000 | $ 762,000 | |||
Allocation of equity component related to issuance costs on convertible notes | (13,000) | 12,555,000 | ||||
Outstanding letters of credit | $ 461,000 | $ 461,000 | ||||
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% | |||||
Conversion rate | 0.0133333 | |||||
Conversion price (in dollars per share) | $ / shares | $ 75 | $ 75 | ||||
Threshold percentage of stock price trigger | 150.00% | |||||
Net proceeds from convertible notes | $ 149,000,000 | |||||
Debt issuance costs | 1,000,000 | |||||
Payment of debt issuance costs | 442,000 | |||||
Liability component of debt issuance costs | 1,279,000 | |||||
Equity component of debt issuance costs | 163,000 | |||||
Convertible notes, liability component | $ 133,077,000 | |||||
Convertible senior notes, interest rate | 5.75% | |||||
Allocation of equity component related to issuance costs on convertible notes | $ 16,923,000 | |||||
Amortization to interest expense over a period | 6 years | |||||
Revolving Credit | ||||||
Credit Facilities [Line Items] | ||||||
Repayments of credit facility | $ 150,000,000 | |||||
Revolving 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 | |||||
Unrestricted domestic cash and cash equivalents | $ 50,000,000 | |||||
Interest coverage ratio, maximum | 3.5 | |||||
Interest coverage ratio, minimum | 3 | |||||
Revolving Credit | Credit Agreement | Minimum | ||||||
Credit Facilities [Line Items] | ||||||
Commitment fee percentage range on unused credit facility | 0.15% | |||||
Revolving Credit | Credit Agreement | Maximum | ||||||
Credit Facilities [Line Items] | ||||||
Commitment fee percentage range on unused credit facility | 0.30% | |||||
Revolving Credit | Credit Agreement | Prime Rate | Minimum | ||||||
Credit Facilities [Line Items] | ||||||
Basis spread on variable rate | 0.00% | |||||
Revolving Credit | Credit Agreement | Prime Rate | Maximum | ||||||
Credit Facilities [Line Items] | ||||||
Basis spread on variable rate | 0.75% | |||||
Revolving Credit | Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Credit Facilities [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Revolving Credit | Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Credit Facilities [Line Items] | ||||||
Basis spread on variable rate | 1.75% |
Borrowings - Credit Facilities
Borrowings - Credit Facilities Effective Interest Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Credit Agreement | Revolving Credit | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 2.30% | 4.00% | 3.40% |
Borrowings - Interest Expense o
Borrowings - Interest Expense of Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Amortization of Debt Discount (Premium) | $ 2,616 | $ 2,472 | $ 600 |
3.50% Convertible Senior Notes due October 1, 2024 | Notes | |||
Debt Instrument [Line Items] | |||
Interest expense on the Notes | 1,313 | ||
Amortization of Debt Discount (Premium) | $ 2,616 | $ 2,472 | $ 600 |
Borrowings - Maturities of Borr
Borrowings - Maturities of Borrowings (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Credit Facilities [Line Items] | |
2021 | $ 25,000 |
2022 | 64,000 |
2023 | 0 |
2024 | 150,000 |
Total | 239,000 |
Revolving Credit | |
Credit Facilities [Line Items] | |
2021 | 25,000 |
2022 | 64,000 |
2023 | 0 |
2024 | 0 |
Total | 89,000 |
Notes | 3.50% Convertible Senior Notes due October 1, 2024 | |
Credit Facilities [Line Items] | |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 150,000 |
Total | $ 150,000 |
Capital Structure (Detail)
Capital Structure (Detail) | 12 Months Ended | ||||
Dec. 31, 2020class_of_common_stock | Dec. 31, 2019USD ($) | Dec. 16, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2017USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of classes of common stock outstanding | class_of_common_stock | 1 | ||||
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 | ||||
2019 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase of common stock authorized by board of directors up to | $ 200,000,000 |
Capital Structure - Purchase of
Capital Structure - Purchase of Common Stock from Employees Withholding Tax Payments Related to Vesting of Restricted Stock (Details - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Shares repurchased (in shares) | 28,052 | 23,859 | 51,446 |
Total consideration | $ 2,131 | $ 1,490 | $ 3,122 |
Weighted average purchase price per share (in dollars per share) | $ 75.96 | $ 62.47 | $ 60.68 |
Capital Structure - Purchased S
Capital Structure - Purchased Shares of its Common Stock, Including Commissions (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Shares repurchased (in shares) | 1,085,153 | 643,486 | 674,604 |
Total consideration | $ 77,818 | $ 39,874 | $ 39,987 |
Weighted average purchase price per share (in dollars per share) | $ 71.71 | $ 61.96 | $ 59.27 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Change in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation | |||
Projected benefit obligation as of January 1 | $ 15,311 | $ 11,044 | |
Service cost | 2,706 | 1,953 | $ 1,735 |
Interest cost | 964 | 875 | 714 |
Benefits paid | (878) | (960) | |
Actuarial loss | 2,425 | 2,577 | |
Effect of exchange rate changes | (62) | (178) | |
Projected benefit obligation as of December 31 | 20,466 | 15,311 | $ 11,044 |
Unfunded amount-non-current | 8,940 | 6,517 | |
Unfunded amount-current | 14 | 10 | |
Total accrued liability | 8,954 | 6,527 | |
Accumulated benefit obligation | 12,490 | 10,743 | |
Accumulated benefit obligation in excess of plan assets | $ 978 | $ 1,959 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Salary escalation rates | 7.10% | 6.00% | 8.20% |
Discount rate | 4.60% | 6.50% | 7.50% |
Percentage of expected return on plan assets | 7.50% | ||
Percentage of discretionary contributions towards 401(k) Plan, maximum | 4.00% |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Period Benefit Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 2,706 | $ 1,953 | $ 1,735 |
Interest cost | 964 | 875 | 714 |
Expected return on plan assets | (636) | (568) | (514) |
Amortization of actuarial loss/(gain) | 394 | (159) | (153) |
Net periodic benefit cost | $ 3,428 | $ 2,101 | $ 1,782 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Components Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax [Abstract] | |||
Net actuarial (loss)/gain | $ (3,772) | $ (1,762) | $ 940 |
Net prior service cost | (15) | (18) | (22) |
Accumulated other comprehensive (loss)/gain, excluding tax effects | $ (3,787) | $ (1,780) | $ 918 |
Employee Benefit Plans - Summ_3
Employee Benefit Plans - Summary of Weighted Average Actuarial Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.60% | 6.50% | 7.50% |
Rate of increase in compensation levels | 7.10% | 6.00% | 8.20% |
Expected long-term rate of return on plan assets per annum | 7.00% | 7.50% | 7.30% |
Employee Benefit Plans - Summ_4
Employee Benefit Plans - Summary of Expected Benefit Payments (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2021 | $ 2,795 |
2022 | 2,542 |
2023 | 2,413 |
2024 | 2,098 |
2025 | 1,856 |
2026 to 2030 | $ 6,956 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the year | $ 8,784 | $ 7,420 |
Actual return | 661 | 606 |
Employer contribution | 3,099 | 1,905 |
Benefits paid | (869) | (957) |
Effect of exchange rate changes | (163) | (190) |
Plan assets at the ending of the year | $ 11,512 | $ 8,784 |
Employee Benefit Plans - Contri
Employee Benefit Plans - Contribution Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation Related Costs [Abstract] | |||
Contributions to the 401(k) Plans | $ 3,577 | $ 3,617 | $ 3,423 |
Company's contribution to the 401(k) Plan | $ 11,332 | $ 10,614 | $ 7,663 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Lease | ||
Operating lease right-of-use assets | $ 91,918 | $ 86,396 |
Operating lease liabilities - Current | 18,894 | 24,148 |
Operating lease liabilities - Non-current | 84,874 | 74,709 |
Total operating lease liabilities | 103,768 | 98,857 |
Finance Lease | ||
Property and equipment, gross | 1,853 | 1,757 |
Accumulated depreciation | (1,382) | (1,120) |
Property and equipment, net | 471 | 637 |
Finance lease liabilities - Current | 229 | 253 |
Finance lease liabilities - Non-current | 281 | 430 |
Total finance lease liabilities | $ 510 | $ 683 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Reduction in lease liabilities | $ 3,143,000 | $ 0 |
Reduction in ROU assets | $ 3,143,000 | 0 |
Operating lease, impairment charge | $ 1,449,000 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease: | ||
Amortization of right-of-use assets | $ 235 | $ 255 |
Interest on lease liabilities | 81 | 93 |
Total finance lease cost | 316 | 348 |
Operating lease | 27,146 | 27,335 |
Sublease income | 0 | (146) |
Total lease cost | $ 27,462 | $ 27,537 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash payments for amounts included in the measurement of lease liabilities : | |||
Operating cash outflows for operating leases | $ 26,589 | $ 24,813 | |
Operating cash outflows for finance leases | 81 | 93 | |
Financing cash outflows for finance leases | 249 | 336 | $ 152 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 18,765 | 36,473 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 45 | $ 506 | |
Weighted-average remaining lease term (in years) | |||
Finance lease | 1 year 9 months 18 days | 2 years 3 months 18 days | |
Operating lease | 6 years 3 months 18 days | 6 years | |
Weighted-average discount rate | |||
Finance lease | 10.50% | 9.90% | |
Operating lease | 7.40% | 7.60% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 25,829 | |
2022 | 24,316 | |
2023 | 22,066 | |
2024 | 17,084 | |
2025 | 9,749 | |
2026 and thereafter | 34,334 | |
Total lease payments | 133,378 | |
Less: Imputed interest | 29,610 | |
Present value of lease liabilities | 103,768 | $ 98,857 |
Finance Leases | ||
2021 | 262 | |
2022 | 194 | |
2023 | 114 | |
2024 | 36 | |
2025 | 11 | |
2026 and thereafter | 0 | |
Total lease payments | 617 | |
Less: Imputed interest | 107 | |
Present value of lease liabilities | $ 510 | $ 683 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 30,893 | $ (16,685) | $ (24,442) |
Foreign | 84,436 | 99,785 | 84,812 |
Income before income tax expense and earnings from equity affiliates | $ 115,329 | $ 83,100 | $ 60,370 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current provision/(benefit): | |||
Domestic | $ 7,946 | $ 10,823 | $ (13,249) |
Foreign | 14,983 | 16,694 | 17,271 |
Total | 22,929 | 27,517 | 4,022 |
Deferred provision/(benefit): | |||
Domestic | 1,343 | (13,912) | (1,999) |
Foreign | 1,354 | 1,567 | 1,374 |
Total | 2,697 | (12,345) | (625) |
Income tax expense | $ 25,626 | $ 15,172 | $ 3,397 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Deferred tax (expense)/benefit recognized on: | ||||
Unrealized gain/(loss) on cash flow hedges | $ (2,251) | $ (683) | $ 3,888 | |
Reclassification adjustment for cash flow hedges | 88 | 292 | 915 | |
Retirement benefits | 897 | 312 | (44) | |
Reclassification adjustment for retirement benefits | (89) | 16 | 23 | |
Foreign currency translation loss | 1,953 | (629) | 5,903 | |
Total income tax (expense)/benefit recognized in other comprehensive income/(loss) | [1] | $ 598 | $ (692) | $ 10,685 |
[1] | These are income tax (expense)/benefit recognized on cash flow hedges, retirement benefits and foreign currency translation gains/(losses). Refer to Note 22 - Income Taxes to the consolidated financial statements. |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense | $ 24,219 | $ 17,451 | $ 12,678 |
Impact of tax holiday | (757) | (5,920) | (5,448) |
Foreign tax rate differential | (1,991) | 1,660 | 5,014 |
Deferred tax provision/(benefit) | 2,888 | 3,026 | (3,915) |
Unrecognized tax benefits and interest | 6 | 174 | (88) |
State taxes, net of Federal taxes | 3,242 | 2,137 | 2,201 |
Non-deductible expenses | 1,467 | 1,329 | 3,066 |
US Tax Reform Act impact | 0 | 0 | 176 |
Excess tax benefit on stock-based compensation | (2,378) | (2,306) | (7,227) |
Research and development credits | (918) | (1,650) | (1,500) |
Prior period items | (182) | (143) | (1,466) |
Others | 30 | (586) | (94) |
Income tax expense | $ 25,626 | $ 15,172 | $ 3,397 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Effective tax rate increased | 22.20% | 18.30% | |
Income tax expense | $ 25,626,000 | $ 15,172,000 | $ 3,397,000 |
Measurement period increase to transition tax obligation | $ 1,320,000 | $ 1,449,000 | |
Effective tax rate in Philippines post tax exemption | 5.00% | ||
Effect of diluted earnings per share, tax holiday (in dollars per share) | $ 0.02 | $ 0.17 | $ 0.16 |
Operating loss carryforward valuation allowance | $ 188,000 | $ 202,000 | |
Unrecognized tax benefits that would impact tax rate if recognized | 907,000 | ||
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% |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Depreciation and amortization expense | $ 9,710 | $ 12,319 |
Stock-based compensation | 9,383 | 9,313 |
Accrued employee costs and other expenses | 12,208 | 9,805 |
Net operating loss carry forward | 2,042 | 2,896 |
Unrealized exchange loss | 391 | 1,136 |
Deferred rent | 4,782 | 4,503 |
Others | 281 | 745 |
Deferred tax assets | 38,797 | 40,717 |
Valuation allowance | (188) | (202) |
Deferred tax assets | 38,609 | 40,515 |
Deferred tax liabilities: | ||
Unrealized exchange gain | 2,668 | 505 |
Intangible assets | 19,720 | 20,696 |
Unamortized discount on convertible senior notes | 2,753 | 3,395 |
Others | 6,566 | 5,030 |
Deferred tax liabilities | 31,707 | 29,626 |
Net deferred tax assets | $ 6,902 | $ 10,889 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of January 1 | $ 1,047 | $ 804 | $ 824 |
Increases related to prior year tax positions | 0 | 69 | 0 |
Decreases related to prior year tax positions | (324) | (156) | (320) |
Increases related to current year tax positions | 184 | 330 | 300 |
Balance as of December 31 | $ 907 | $ 1,047 | $ 804 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Detail) - shares | Jun. 15, 2018 | Feb. 27, 2020 | Dec. 31, 2020 |
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) | 2,333,557 | ||
Stock issued, stock-based compensation plans (in shares) | 76,145 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||
Stock-based compensation expenses | $ 7,385 | $ 8,346 | $ 7,726 | $ 4,778 | $ 4,532 | $ 7,427 | $ 7,155 | $ 6,956 | $ 28,235 | $ 26,070 | $ 23,901 |
Cost of revenues | |||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||
Stock-based compensation expenses | 6,300 | 5,895 | 4,924 | ||||||||
General and administrative expenses | |||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||
Stock-based compensation expenses | 11,009 | 10,012 | 10,371 | ||||||||
Selling and marketing expenses | |||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||||
Stock-based compensation expenses | $ 10,926 | $ 10,163 | $ 8,606 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Options Narrative (Details) - Employee Stock Option - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ 3,488,000 | $ 3,187,000 | $ 4,446,000 |
Stock Based Compensation - St_2
Stock Based Compensation - Stock Based Compensation Stock Option Activity (Detail) - Employee Stock Option - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, outstanding, beginning balance (in shares) | 98,161 | ||
Number of options, granted (in shares) | 0 | ||
Number of options, exercised (in shares) | (66,896) | ||
Number of options, forfeited (in shares) | 0 | ||
Number of options, outstanding, ending balance (in shares) | 31,265 | 98,161 | |
Vested and exercisable at December 31, 2020 | 31,265 | ||
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) | $ 23.39 | ||
Weighted-average exercise price, granted (in dollars per share) | 0 | ||
Weighted-average exercise price, exercised (in dollars per share) | 22.44 | ||
Weighted-average exercise price, forfeited (in dollars per share) | 0 | ||
Weighted-average exercise price, outstanding, ending balance (in dollars per share) | 25.43 | $ 23.39 | |
Weighted average exercise price, vested and exercisable at December 31, 2019 (in dollars per share) | $ 25.43 | ||
Aggregate intrinsic value, outstanding | $ 1,866,000 | $ 4,522,000 | |
Aggregate intrinsic value, exercised | 3,488,000 | $ 3,187,000 | $ 4,446,000 |
Vested and exercisable at December 31, 2020 | $ 1,866,000 | ||
Weighted-average remaining contractual life, outstanding, ending balance | 1 year 10 months 6 days | 1 year 10 months 9 days | |
Vested and exercisable at December 31, 2020 | 1 year 10 months 6 days |
Stock Based Compensation - Comp
Stock Based Compensation - Company's Stock Options Outstanding and Stock Options Vested and Exercisable (Detail) - Range Two | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
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 | 31,265 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 25.43 |
Stock Based Compensation - St_3
Stock Based Compensation - Stock Options Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Cash received from options exercised during the year | $ 1,501 | $ 986 | $ 1,397 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Activity Under Company's Stock Plans (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | 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) | 27,386 | ||
Number, granted (in shares) | 0 | ||
Number, vested (in shares) | (27,386) | ||
Number, forfeited (in shares) | 0 | ||
Number, outstanding, ending balance (in shares) | 0 | 27,386 | |
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) | $ 48.72 | ||
Weighted-average fair value, granted (in dollars per share) | 0 | ||
Weighted-average fair value, vested (in dollars per share) | 48.72 | ||
Weighted-average fair value, forfeited (in dollars per share) | 0 | ||
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ 0 | $ 48.72 | |
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) | 913,094 | ||
Number, granted (in shares) | 395,708 | ||
Number, vested (in shares) | (331,340) | ||
Number, forfeited (in shares) | (73,796) | ||
Number, outstanding, ending balance (in shares) | 903,666 | 913,094 | |
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) | $ 59.61 | ||
Weighted-average fair value, granted (in dollars per share) | 76.99 | $ 64.29 | $ 60.64 |
Weighted-average fair value, vested (in dollars per share) | 56.55 | ||
Weighted-average fair value, forfeited (in dollars per share) | 65.71 | ||
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ 67.84 | $ 59.61 | |
Restricted stock units vested for which underlying common stock to be issued (in shares) | 14,368 | 11,517 | |
Restricted stock units vested (in shares) | 181,638 | 167,270 |
Stock Based Compensation - Re_2
Stock Based Compensation - Restricted Stock and RSU (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 42,317 | ||
Cost not yet recognized, period for recognition | 2 years 6 months 3 days | ||
Number of restricted stock units, vested | $ 20,072 | $ 22,084 | $ 19,865 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value of restricted stock and RSUs granted (in dollars per share) | $ 76.99 | $ 64.29 | $ 60.64 |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Based Stock Awards Narrative (Details) - USD ($) $ in Thousands | Jun. 15, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 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 | |||
Performance Based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 7,993 | |||
Cost not yet recognized, period for recognition | 1 year 9 months |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 for expected life | 3.85% | 2.46% | 2.38% |
Volatility for expected life | 34.30% | 20.52% | 21.79% |
Stock Based Compensation - Pe_2
Stock Based Compensation - Performance Restricted Stock Activity (Details) | 12 Months Ended |
Dec. 31, 2020$ / 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 | 87,685 |
Number, granted (in shares) | shares | 61,368 |
Adjustment upon final determination of level of performance goal achievement (in shares) | shares | 0 |
Number, vested (in shares) | shares | (40,425) |
Number, forfeited (in shares) | shares | (2,736) |
Number, outstanding, ending balance (in shares) | shares | 105,892 |
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 | $ 62.54 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 78.29 |
Weighted-average fair value, adjustment upon final determination of level of performance goal achievement (in dollars per share) | $ / shares | 0 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 60.58 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 66.20 |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 72.32 |
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 | 87,670 |
Number, granted (in shares) | shares | 61,352 |
Adjustment upon final determination of level of performance goal achievement (in shares) | shares | (4,701) |
Number, vested (in shares) | shares | (35,720) |
Number, forfeited (in shares) | shares | (2,734) |
Number, outstanding, ending balance (in shares) | shares | 105,867 |
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 | $ 82.10 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 102.10 |
Weighted-average fair value, adjustment upon final determination of level of performance goal achievement (in dollars per share) | $ / shares | 70.97 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 70.97 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 85.68 |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 97.85 |
Impairment and Restructuring _3
Impairment and Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | $ 3,074 | $ 0 | |
Costs incurred during the year | 5,044 | ||
Payments during the year | (2,518) | (1,970) | |
Change in estimated costs during the year | (556) | ||
Restructuring Reserve, Ending Balance | 0 | 3,074 | $ 0 |
Asset impairment charges | 0 | 3,627 | 20,056 |
Contract Termination Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | 1,597 | 0 | |
Costs incurred during the year | 2,597 | ||
Payments during the year | (1,041) | (1,000) | |
Change in estimated costs during the year | (556) | ||
Restructuring Reserve, Ending Balance | 0 | 1,597 | 0 |
Employee-Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | 1,106 | 0 | |
Costs incurred during the year | 1,375 | ||
Payments during the year | (1,106) | (269) | |
Change in estimated costs during the year | 0 | ||
Restructuring Reserve, Ending Balance | 0 | 1,106 | 0 |
Other Associated Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | 371 | 0 | |
Costs incurred during the year | 1,072 | ||
Payments during the year | (371) | (701) | |
Change in estimated costs during the year | 0 | ||
Restructuring Reserve, Ending Balance | $ 0 | $ 371 | $ 0 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2018 | |
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 226,961,000 | $ 234,998,000 | ||
Convertible Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding | 137,961,000 | 135,131,000 | ||
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 | 150,000,000 | ||
Interest accrued | 1,313,000 | 1,313,000 | ||
Interest expense on Notes | $ 5,250,000 | $ 5,206,000 | $ 1,313,000 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments, net of advances | $ 6,100 | $ 6,500 |
Percentage of export-oriented units established | 100.00% | |
Aggregate disputed amount related to transfer pricing and permanent establishment | $ 16,748 | 16,220 |
Total bank guarantees and deposits in respect of contingencies | 8,120 | 8,108 |
Amounts paid as deposits in respect of contingencies | 6,307 | 6,252 |
Bank guarantee issued | $ 1,813 | $ 1,856 |
Uncategorized Items - exls-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201409Member |