Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 $0.001 per share | |
Trading Symbol | EXLS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,457,656 | |
Amendment Flag | false | |
Entity Central Index Key | 0001297989 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 177,121 | $ 218,530 |
Short-term investments | 198,721 | 184,286 |
Restricted cash | 5,295 | 4,690 |
Accounts receivable, net | 159,296 | 147,635 |
Prepaid expenses | 12,709 | 11,344 |
Advance income tax, net | 7,580 | 5,684 |
Other current assets | 35,828 | 37,109 |
Total current assets | 596,550 | 609,278 |
Property and equipment, net | 90,153 | 92,875 |
Operating lease right-of-use assets | 88,777 | 91,918 |
Restricted cash | 2,298 | 2,299 |
Deferred tax assets, net | 10,657 | 7,749 |
Intangible assets, net | 56,243 | 59,594 |
Goodwill | 349,098 | 349,088 |
Other assets | 29,669 | 32,099 |
Investment in equity affiliate | 2,921 | 2,957 |
Total assets | 1,226,366 | 1,247,857 |
Current liabilities: | ||
Accounts payable | 8,304 | 6,992 |
Current portion of long-term borrowings | 25,000 | 25,000 |
Deferred revenue | 14,764 | 32,649 |
Accrued employee costs | 43,492 | 67,645 |
Accrued expenses and other current liabilities | 73,241 | 66,410 |
Current portion of operating lease liabilities | 18,476 | 18,894 |
Income taxes payable, net | 14,443 | 3,488 |
Total current liabilities | 197,720 | 221,078 |
Long-term borrowings, less current portion | 202,687 | 201,961 |
Operating lease liabilities, less current portion | 81,948 | 84,874 |
Income taxes payable | 1,790 | 1,790 |
Deferred tax liabilities, net | 877 | 847 |
Other non-current liabilities | 15,119 | 18,135 |
Total liabilities | 500,141 | 528,685 |
Commitments and contingencies (Refer to Note 24) | ||
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, 39,273,989 shares issued and 33,526,889 shares outstanding as of March 31, 2021 and 38,968,052 shares issued and 33,559,434 shares outstanding as of December 31, 2020 | 39 | 39 |
Additional paid-in capital | 428,882 | 420,976 |
Retained earnings | 673,310 | 641,379 |
Accumulated other comprehensive loss | (78,753) | (74,984) |
Total including shares held in treasury | 1,023,478 | 987,410 |
Less: 5,747,100 shares as of March 31, 2021 and 5,408,618 shares as of December 31, 2020, held in treasury, at cost | (297,253) | (268,238) |
Stockholders’ equity | 726,225 | 719,172 |
Total equity | 726,225 | 719,172 |
Total liabilities and stockholders’ equity | $ 1,226,366 | $ 1,247,857 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 39,273,989 | 38,968,052 |
Common stock, outstanding (in shares) | 33,526,889 | 33,559,434 |
Treasury stock (in shares) | 5,747,100 | 5,408,618 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Income Statement [Abstract] | |||
Revenues, net | $ 261,415 | $ 245,990 | |
Cost of revenues | [1] | 158,821 | 162,656 |
Gross profit | [1] | 102,594 | 83,334 |
Operating expenses: | |||
General and administrative expenses | 30,703 | 28,941 | |
Selling and marketing expenses | 18,235 | 14,456 | |
Depreciation and amortization expense | 12,101 | 12,450 | |
Total operating expenses | 61,039 | 55,847 | |
Income from operations | 41,555 | 27,487 | |
Foreign exchange gain, net | 434 | 1,377 | |
Interest expense | (2,474) | (3,072) | |
Other income, net | 1,410 | 2,529 | |
Income before income tax expense and earnings from equity affiliates | 40,925 | 28,321 | |
Income tax expense | 8,958 | 5,855 | |
Income before earnings from equity affiliates | 31,967 | 22,466 | |
Loss from equity-method investment | 36 | 55 | |
Net income attributable to ExlService Holdings, Inc. stockholders | $ 31,931 | $ 22,411 | |
Earnings per share attributable to ExlService Holdings, Inc. stockholders: | |||
Basic (in dollars per share) | $ 0.95 | $ 0.65 | |
Diluted (in dollars per share) | $ 0.93 | $ 0.65 | |
Weighted-average number of shares used in computing earnings per share attributable to ExlService Holdings Inc. stockholders: | |||
Basic (in shares) | 33,734,118 | 34,401,565 | |
Diluted (in shares) | 34,318,318 | 34,720,603 | |
[1] | Exclusive of depreciation and amortization expense. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 31,931 | $ 22,411 | |
Other comprehensive income/(loss): | |||
Unrealized gain/(loss) on cash flow hedges | 568 | (14,846) | |
Foreign currency translation loss | (1,911) | (21,571) | |
Reclassification adjustments | |||
Gain on cash flow hedges | [1] | (2,829) | (929) |
Retirement benefits | [2] | 179 | 101 |
Income tax effects relating to above | [3] | 224 | 9,033 |
Total other comprehensive loss | (3,769) | (28,212) | |
Total comprehensive income/(loss) | $ 28,162 | $ (5,801) | |
[1] | These are reclassified to net income and are included either in cost of revenues or operating expenses, as applicable in the unaudited consolidated statements of income. Refer to Note 16 - Derivatives and Hedge Accounting to the unaudited consolidated financial statements. | ||
[2] | These are reclassified to net income and are included in other income, net in the unaudited consolidated statements of income. Refer to Note 19 - Employee Benefit Plans to the unaudited consolidated financial statements. | ||
[3] | These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gains/(losses). Refer to Note 21 - Income Taxes to the unaudited consolidated financial statements. |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2019 | 38,480,654 | (4,295,413) | ||||
Beginning balance at Dec. 31, 2019 | $ 670,001 | $ 39 | $ 391,240 | $ 551,903 | $ (84,892) | $ (188,289) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued against stock-based compensation plans (in shares) | 333,121 | |||||
Stock issued against stock-based compensation plans | 921 | 921 | ||||
Stock-based compensation | $ 4,778 | 4,778 | ||||
Acquisition of treasury stock (in shares) | (175,765) | (202,366) | ||||
Acquisition of treasury stock | $ (13,995) | $ (13,995) | ||||
Other comprehensive loss | (28,212) | (28,212) | ||||
Net income | 22,411 | 22,411 | ||||
Ending balance (in shares) at Mar. 31, 2020 | 38,813,775 | (4,497,779) | ||||
Ending balance at Mar. 31, 2020 | $ 655,904 | $ 39 | 396,939 | 574,314 | (113,104) | $ (202,284) |
Beginning balance (in shares) at Dec. 31, 2020 | 33,559,434 | 38,968,052 | (5,408,618) | |||
Beginning balance at Dec. 31, 2020 | $ 719,172 | $ 39 | 420,976 | 641,379 | (74,984) | $ (268,238) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued against stock-based compensation plans (in shares) | 305,937 | |||||
Stock issued against stock-based compensation plans | 74 | 74 | ||||
Stock-based compensation | $ 7,832 | 7,832 | ||||
Acquisition of treasury stock (in shares) | (313,032) | (338,482) | ||||
Acquisition of treasury stock | $ (29,015) | $ (29,015) | ||||
Other comprehensive loss | (3,769) | (3,769) | ||||
Net income | $ 31,931 | 31,931 | ||||
Ending balance (in shares) at Mar. 31, 2021 | 33,526,889 | 39,273,989 | (5,747,100) | |||
Ending balance at Mar. 31, 2021 | $ 726,225 | $ 39 | $ 428,882 | $ 673,310 | $ (78,753) | $ (297,253) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 31,931 | $ 22,411 |
Adjustments to reconcile net income to net cash provided by / (used for) operating activities: | ||
Depreciation and amortization expense | 12,266 | 12,472 |
Stock-based compensation expense | 7,832 | 4,778 |
Amortization of operating lease right-of-use assets | 6,761 | 6,853 |
Unrealized (gain) / loss on short term investments | (1,103) | 267 |
Unrealized foreign exchange (gain), net | (1,139) | (6,490) |
Deferred income tax (benefit)/expense | (2,695) | 3,539 |
Allowance for expected credit losses | 48 | 195 |
Loss from equity-method investment | 36 | 55 |
Amortization of non-cash interest expense related to convertible senior notes | 673 | 635 |
Others, net | 216 | (26) |
Change in operating assets and liabilities: | ||
Accounts receivable | (11,818) | (17,518) |
Prepaid expenses and other current assets | (21) | (1,871) |
Advance income tax, net | 9,057 | (1,109) |
Other assets | 1,268 | 925 |
Accounts payable | 1,902 | 1,400 |
Deferred revenue | (17,986) | 2,579 |
Accrued employee costs | (23,611) | (37,046) |
Accrued expenses and other liabilities | 8,456 | 972 |
Operating lease liabilities | (6,868) | (6,576) |
Net cash provided by /(used for) operating activities | 15,205 | (13,555) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (12,680) | (12,347) |
Proceeds from sale of property and equipment | 129 | 73 |
Investment in equity affiliate | 0 | (700) |
Purchase of investments | (18,835) | (23,830) |
Proceeds from redemption of investments | 5,357 | 72,844 |
Net cash (used for) /provided by investing activities | (26,029) | 36,040 |
Cash flows from financing activities: | ||
Principal payments of finance lease liabilities | (57) | (67) |
Proceeds from borrowings | 25,000 | 110,000 |
Repayments of borrowings | (25,000) | (10,201) |
Acquisition of treasury stock | (29,015) | (13,995) |
Proceeds from exercise of stock options | 75 | 921 |
Net cash (used for)/provided by financing activities | (28,997) | 86,658 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (984) | (2,653) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (40,805) | 106,490 |
Cash, cash equivalents and restricted cash at the beginning of the period | 225,519 | 127,044 |
Cash, cash equivalents and restricted cash at the end of the period | 184,714 | 233,534 |
Cash paid during the period for: | ||
Interest | 610 | 775 |
Income taxes, net of refunds | 2,415 | 2,646 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Assets acquired under finance lease | $ 10 | $ 28 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the state of Delaware. ExlService Holdings, together with its subsidiaries and affiliates (collectively, the “Company”), operates in the Business Process Management (“BPM”) industry providing operations management services and analytics services that helps its clients build and grow sustainable businesses. By orchestrating its domain expertise, data, analytics and digital technology, the Company looks deeper to design and manage agile, customer-centric operating models to improve global operations, drive profitability, enhance customer satisfaction, increase data-driven insights, and manage risk and compliance. The Company’s clients are located principally in the United States of America (“U.S.”) and the United Kingdom (“U.K.”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Preparation and Principles of Consolidation The unaudited consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The unaudited consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. 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 unaudited consolidated statements of income. (b) Use of Estimates The preparation of the unaudited 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 unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the unaudited 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 March 31, 2021, 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) Recent Accounting Pronouncements In January 2021, Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2021-01, Reference Rate Reform (Topic 848): Scope , to clarify that all derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment (commonly referred to as the discounting transition) are within the scope of Accounting Standard Codification (“ASC”) 848. The amendments in this ASU further clarify that certain optional expedients and exceptions for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of the discontinuation of the use of LIBOR as a benchmark interest rate due to reference rate reform. This ASU is effective immediately for all entities with the option to be applied retrospectively as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, and prospectively to any new contract modifications made on or after January 7, 2021 through December 31, 2022. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. 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 London Inter-Bank Offered Rate (“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 impact of adoption of this ASU on its consolidated financial statements. ( d ) Recently Adopted Accounting Pronouncements In December 2019, FASB issued ASU No. 2019-12, Income Taxes Simplifying the Accounting for Income Taxes . This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The Company adopted this ASU on January 1, 2021. The adoption of this ASU has a minimal impact on the Company’s unaudited consolidated financial statements. In October 2020, FASB issued ASU No. 2020-10, Codification Improvements , to provide 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 improve the consistency of the ASC 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 ASC. The Company adopted this ASU on January 1, 2021. The adoption of this ASU did not have a material impact on the Company’s unaudited consolidated financial statements. |
Segment and Geographical Inform
Segment and Geographical Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information The Company operates in the BPM industry and is a provider of operations management and analytics services. The Company manages and reports financial information through its four strategic business units: Insurance, Healthcare, Analytics and Emerging Business. These business units develop client-specific solutions, build capabilities, maintain a unified go-to-market approach and are integrally responsible for service delivery, customer satisfaction, growth and profitability. 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 the three months ended March 31, 2021 and 2020, respectively, for each of the reportable segments, are as follows: Three months ended March 31, 2021 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 91,160 $ 30,265 $ 37,668 $ 102,322 $ 261,415 Cost of revenues (1) 56,093 17,391 20,844 64,493 158,821 Gross profit (1) $ 35,067 $ 12,874 $ 16,824 $ 37,829 $ 102,594 Operating expenses 61,039 Foreign exchange gain, interest expense and other income, net (630) Income tax expense 8,958 Loss from equity-method investment 36 Net income $ 31,931 (1) Exclusive of depreciation and amortization expense. Three months ended March 31, 2020 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 83,739 $ 27,029 $ 42,791 $ 92,431 $ 245,990 Cost of revenues (1) 58,965 19,593 25,482 58,616 162,656 Gross profit (1) $ 24,774 $ 7,436 $ 17,309 $ 33,815 $ 83,334 Operating expenses 55,847 Foreign exchange gain, interest expense and other income, net 834 Income tax expense 5,855 Loss from equity-method investment 55 Net income $ 22,411 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Three months ended March 31, 2021 2020 BPM and related services (1) $ 159,093 $ 153,559 Analytics services 102,322 92,431 Revenues, net $ 261,415 $ 245,990 (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. Three months ended March 31, 2021 2020 Revenues, net United States $ 224,368 $ 207,880 Non-United States United Kingdom 24,751 23,278 Rest of World 12,296 14,832 Total Non-United States 37,047 38,110 Revenues, net $ 261,415 $ 245,990 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 March 31, 2021 December 31, 2020 Long-lived assets India $ 93,329 $ 97,261 United States 47,676 46,659 Philippines 27,486 29,434 Rest of World 10,439 11,439 Long-lived assets $ 178,930 $ 184,793 |
Revenues, net
Revenues, net | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues, net | Revenues, net Refer to Note 3 - Segment and Geographical Information to the unaudited 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 March 31, 2021 December 31, 2020 Accounts receivable, net $ 159,296 $ 147,635 Contract assets 3,984 4,437 Contract liabilities: Deferred revenue (consideration received in advance) 12,971 30,450 Consideration received for process transition activities $ 2,280 $ 2,774 Accounts receivable includes $78,502 and $63,995 as of March 31, 2021 and December 31, 2020, 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 unaudited consolidated balance sheets. The revenues are recognized as (or when) the performance obligation is fulfilled under the contract with customer. Revenue recognized during the three months ended March 31, 2021 and 2020, which was included in the contract liabilities balance at the beginning of the respective periods: Three months ended March 31, 2021 2020 Deferred revenue (consideration received in advance) $ 23,621 $ 5,968 Consideration received for process transition activities $ 679 $ 274 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 Quarter Ended Year Ended Quarter Ended Year Ended March 31, 2021 March 31, 2020 December 31, 2020 March 31, 2021 March 31, 2020 December 31, 2020 Opening Balance $ 1,027 $ 1,307 $ 1,307 $ 5,631 $ 7,255 $ 7,255 Additions — — 310 6 284 779 Amortization (242) (92) (590) (1,218) (623) (2,403) Closing Balance $ 785 $ 1,215 $ 1,027 $ 4,419 $ 6,916 $ 5,631 There was no impairment for contract acquisition and contract fulfillment costs as of March 31, 2021 and December 31, 2020. The capitalized costs are amortized over the expected period of benefit of the contract. Allowance 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. 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 March 31, 2021 December 31, 2020 Accounts receivable, including unbilled receivables $ 160,479 $ 148,824 Less: Allowance for expected credit loss (1,183) (1,189) Accounts receivable, net $ 159,296 $ 147,635 The movement in allowance for expected credit loss on customer balances for the three months ended March 31, 2021 and year ended December 31, 2020 was as follows: Three months ended Year ended March 31, 2021 March 31, 2020 December 31, 2020 Balance at the beginning of the period $ 1,189 $ 1,163 $ 1,163 Additions during the period 50 195 300 Charged against allowance (60) — (269) Translation adjustment 4 (12) (5) Balance at the end of the period $ 1,183 $ 1,346 $ 1,189 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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 17 - Borrowings to the unaudited consolidated financial statements for further details. The following table sets forth the computation of basic and diluted earnings per share: Three months ended March 31, 2021 2020 Numerators: Net income $ 31,931 $ 22,411 Denominators: Basic weighted average common shares outstanding 33,734,118 34,401,565 Dilutive effect of share based awards 342,993 319,038 Dilutive effect of conversion premium on convertible notes 241,207 — Diluted weighted average common shares outstanding 34,318,318 34,720,603 Earnings per share attributable to ExlService Holdings Inc. stockholders: Basic $ 0.95 $ 0.65 Diluted $ 0.93 $ 0.65 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share — 170,313 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash For the purpose of unaudited statements of cash flows, cash, cash equivalents and restricted cash comprise of the following: As of March 31, 2021 March 31, 2020 Cash and cash equivalents $ 177,121 $ 224,874 Restricted cash (current) 5,295 6,369 Restricted cash (non-current) 2,298 2,291 Cash, cash equivalents and restricted cash $ 184,714 $ 233,534 |
Other Income, net
Other Income, net | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income, net | Other Income, net Other income, net consists of the following: Three months ended March 31, 2021 2020 Gain on sale and mark-to-market of mutual funds $ 1,103 $ 2,056 Interest and dividend income 602 532 Others, net (295) (59) Other income, net $ 1,410 $ 2,529 |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consists of the following: Estimated useful lives As of (Years) March 31, 2021 December 31, 2020 Owned Assets: Network equipment and computers 3-5 $ 107,695 $ 107,109 Software 3-5 100,395 99,708 Leasehold improvements 3-8 46,889 48,052 Office furniture and equipment 3-8 21,888 22,117 Motor vehicles 2-5 597 599 Buildings 30 1,088 1,089 Land — 712 712 Capital work in progress — 5,316 4,647 284,580 284,033 Less: Accumulated depreciation and amortization (194,854) (191,629) $ 89,726 $ 92,404 Right-of-use assets under finance leases: Leasehold improvements $ 816 $ 817 Office furniture and equipment 347 348 Motor vehicles 669 688 1,832 1,853 Less: Accumulated depreciation and amortization (1,405) (1,382) $ 427 $ 471 Property and equipment, net $ 90,153 $ 92,875 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 three months ended March 31, 2021, 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 unaudited consolidated statements of income was as follows: Three months ended March 31, 2021 2020 Depreciation and amortization expense $ 8,740 $ 8,297 The effect of foreign exchange gain/(loss) upon settlement of cash flow hedges recorded under depreciation and amortization, was as follows: Three months ended March 31, 2021 2020 Effect of foreign exchange gain $ 165 $ 22 Internally developed software costs, included under Software, was as follows: As of March 31, 2021 December 31, 2020 Cost $ 18,608 $ 18,371 Less : Accumulated amortization (7,022) (5,998) Internally developed software, net $ 11,586 $ 12,373 The amortization expense on internally developed software recognized in the unaudited consolidated statements of income was as follows: Three months ended March 31 2021 2020 Amortization expense $ 1,024 $ 831 As of March 31, 2021 and 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
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 January 1, 2020 $ 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 31 (16) (455) (1) — — — (441) Balance at December 31, 2020 $ 50,499 $ 21,953 $ 49,348 $ 227,288 $ — $ — $ — $ 349,088 Currency 21 — (11) — — — — 10 Balance at March 31, 2021 $ 50,520 $ 21,953 $ 49,337 $ 227,288 $ — $ — $ — $ 349,098 (1) Represents the reallocation of goodwill resulting from the Company reorganizing its operating segments as described in Note 3 - Segment and Geographical Information to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. During the fourth quarter of 2020, the Company performed its annual impairment test of goodwill for those reporting units that had goodwill recorded. Based on the results, the fair values of each of the Company’s reporting units exceeded their carrying value and the goodwill was not impaired. As of March 31, 2021, 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 the quarter 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 in the first quarter and business forecasts for the remainder of the year, 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 annual impairment test performed during the fourth quarter of 2020. The Company did not identify any triggers or indications of potential impairment for its reporting units as of March 31, 2021. 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. 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 its reporting units. The Company continues to maintain its focus on cultivating long-term client relationships as well as attracting new clients. Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of March 31, 2021 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 73,373 $ (29,378) $ 43,995 Developed technology 23,523 (12,984) 10,539 Trade names and trademarks 5,100 (4,291) 809 $ 101,996 $ (46,653) $ 55,343 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 102,896 $ (46,653) $ 56,243 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization 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 The amortization expense recognized in the unaudited consolidated statements of income was as follows: Three months ended March 31, 2021 2020 Amortization expense $ 3,361 $ 4,153 The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 6.68 Developed technology 2.48 Trade names and trademarks (Finite lived) 2.29 Estimated future amortization expense related to finite-lived intangible assets as of March 31, 2021 was as follows: 2021 (April 1 - December 31) $ 9,410 2022 11,342 2023 9,053 2024 6,711 2025 5,959 2026 and thereafter 12,868 Total $ 55,343 |
Other Current Assets
Other Current Assets | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consist of the following: As of March 31, 2021 December 31, 2020 Derivative instruments $ 9,651 $ 9,755 Advances to suppliers 2,816 3,906 Receivables from statutory authorities 15,515 15,658 Contract assets 1,778 1,814 Deferred contract fulfillment costs 2,344 2,888 Interest accrued on term deposits 210 169 Others 3,514 2,919 Other current assets $ 35,828 $ 37,109 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: As of March 31, 2021 December 31, 2020 Lease deposits $ 9,635 $ 9,788 Derivative instruments 5,856 6,933 Deposits with statutory authorities 6,339 6,341 Term deposits 219 216 Contract assets 2,206 2,623 Deferred contract fulfillment costs 2,075 2,743 Others 3,339 3,455 Other assets $ 29,669 $ 32,099 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [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 March 31, 2021 December 31, 2020 Accrued expenses $ 38,562 $ 39,951 Payable to statutory authorities 17,245 10,594 Accrued capital expenditures 5,791 7,857 Derivative instruments 290 435 Client liabilities 5,333 4,740 Interest payable 2,734 1,399 Other current liabilities 3,077 1,205 Finance lease liabilities 209 229 Accrued expenses and other current liabilities $ 73,241 $ 66,410 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Liabilities, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consist of the following: As of March 31, 2021 December 31, 2020 Derivative instruments $ 645 $ 29 Unrecognized tax benefits 907 907 Retirement benefits 9,174 8,940 Deferred transition revenue 823 924 Accrued capital expenditures — 3,486 Other liabilities 3,314 3,568 Finance lease liabilities 256 281 Other non-current liabilities $ 15,119 $ 18,135 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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 unaudited consolidated balance sheets until the settlement of those contracts. The balances as of March 31, 2021 and March 31, 2020 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, 2021 $ (86,185) $ 13,799 $ (2,598) $ (74,984) Gains / (losses) recognized during the period (1,911) 568 — (1,343) Reclassification to net income (1) — (2,829) 179 (2,650) Income tax effects (2) 284 (9) (51) 224 Accumulated other comprehensive loss as of March 31, 2021 $ (87,812) $ 11,529 $ (2,470) $ (78,753) Balance as of January 1, 2020 $ (87,591) $ 4,098 $ (1,399) $ (84,892) Losses recognized during the period (21,571) (14,846) — (36,417) Reclassification to net income (1) — (929) 101 (828) Income tax effects (2) 4,234 4,808 (9) 9,033 Accumulated other comprehensive loss as of March 31, 2020 $ (104,928) $ (6,869) $ (1,307) $ (113,104) (1) Refer to Note 16 - Derivatives and Hedge Accounting and Note 19 - Employee Benefit Plans to the unaudited consolidated financial statements for reclassification to net income. (2) These are income tax effects 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 21 - Income Taxes to the unaudited consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of March 31, 2021 and December 31, 2020. Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs As of March 31, 2021 Level 1 Level 2 Level 3 Total Assets Mutual funds* $ 161,868 $ — $ — $ 161,868 Derivative financial instruments — 15,507 — 15,507 Total $ 161,868 $ 15,507 $ — $ 177,375 Liabilities Derivative financial instruments $ — $ 935 $ — $ 935 Total $ — $ 935 $ — $ 935 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 * 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 16 - Derivatives and Hedge Accounting to the unaudited 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: |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 3 Months Ended |
Mar. 31, 2021 | |
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 $509,860 as of March 31, 2021 and $451,935 as of December 31, 2020. 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 unaudited consolidated statements of income as either a part of “Cost of revenues,” “General and administrative expenses,” “Selling and marketing expenses”, “Depreciation and amortization expense”, as applicable. The Company evaluates hedge effectiveness at the time a contract is entered into as well as on an ongoing basis. For hedging positions that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related amounts recorded in equity are reclassified to earnings. The Company estimates that approximately $8,996 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 March 31, 2021. At March 31, 2021, 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 unaudited 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 (GBP) and the Philippine peso. The Company also has exposure to Colombian pesos (COP), Czech koruna, the Euro (EUR), South African ZAR and other local currencies in which it operates. Outstanding foreign currency forward contracts amounted to USD 147,228, GBP 7,727, EUR 1,978 and COP 8,172,868 as of March 31, 2021 and USD 143,394, GBP 6,753, EUR 2,447 and COP 8,287,950 as of December 31, 2020. All of 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 of the assets and liabilities related to our foreign exchange forward contracts on a gross basis, with no offsets, in our unaudited 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 unaudited consolidated financial statements: Derivatives designated as hedging instruments: As of Foreign currency exchange contracts March 31, 2021 December 31, 2020 Other current assets $ 9,261 $ 9,740 Other assets $ 5,856 $ 6,933 Accrued expenses and other current liabilities $ 265 $ 176 Other non-current liabilities $ 645 $ 29 Derivatives not designated as hedging instruments: As of Foreign currency exchange contracts March 31, 2021 December 31, 2020 Other current assets $ 390 $ 15 Accrued expenses and other current liabilities $ 25 $ 259 The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income and accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020: Three months ended March 31, Forward Exchange Contracts: 2021 2020 Unrealized (loss)/gain recognized in AOCI Derivatives in cash flow hedging relationships $ 568 $ (14,846) Loss recognized in unaudited consolidated statements of income Derivatives not designated as hedging instruments $ (394) $ (4,214) Location and amount of gain/(loss) recognized in unaudited consolidated statements of income for cash flow hedging relationships and derivatives not designated as hedging instruments Three months ended March 31, 2021 2020 As per unaudited consolidated statements of income Gain/(loss) on foreign currency exchange contracts As per unaudited consolidated statements of income Gain/(loss) on foreign currency exchange contracts Cash flow hedging relationships Location in unaudited consolidated statements of income where gain was reclassed from AOCI Cost of revenues $ 158,821 $ 2,424 $ 162,656 $ 812 General and administrative expenses $ 30,703 252 $ 28,941 73 Selling and marketing expenses $ 18,235 13 $ 14,456 4 Depreciation and amortization expense $ 12,101 140 $ 12,450 40 Total before tax 2,829 929 Income tax expense relating to above (389) (102) Net of tax $ 2,440 $ 827 Derivatives not designated as hedging instruments Location in unaudited consolidated statements of income where gain/(loss) was recognized Foreign exchange gain, net $ 434 $ (394) $ 1,377 $ (4,214) $ 434 $ (394) $ 1,377 $ (4,214) |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The following tables summarizes the Company’s debt position as of March 31, 2021 and December 31, 2020. As of March 31, 2021 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 — (10,562) (10,562) Unamortized debt issuance costs* — (751) (751) Long-term borrowings $ 64,000 $ 138,687 $ 202,687 Total borrowings $ 89,000 $ 138,687 $ 227,687 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 *Unamortized debt issuance costs for the Company’s revolving Credit Facility of $426 and $490 as of March 31, 2021 and December 31, 2020, respectively, is presented under “Other current assets” and “Other assets” in the consolidated balance sheets. Credit Agreement The Company’s $300,000 revolving credit facility pursuant to its credit agreement (the “Credit Agreement”) with certain lenders and Citibank N.A. as Administrative Agent (the “Credit Facility”) carried an effective interest rate as shown below. Three months ended March 31 2021 2020 Effective Interest Rate 2.0 % 3.0 % As of March 31, 2021 and December 31, 2020, the Company was in compliance with all financial and non-financial covenants listed under the Credit Agreement. 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 carried an effective interest rate as shown below: Three months ended March 31, 2021 2020 Effective Interest Rate 3.7 % 3.7 % During the three months ended March 31, 2021 and 2020, the Company recognized interest expense and amortization of debt discount, on the Notes as below: Three months ended 2021 2020 Interest expense on the Notes $ 1,313 $ 1,313 Amortization of debt discount on the Notes $ 673 $ 635 Payments / maturities for all of the Company's borrowings as of March 31, 2021 were as follows: Notes Revolving Credit Facility Total 2021 (April - December) $ — $ 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 March 31, 2021 and December 31, 2020, the Company had outstanding letters of credit of $461, each, that were not recognized in the consolidated balance sheets. |
Capital Structure
Capital Structure | 3 Months Ended |
Mar. 31, 2021 | |
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 units and performance-based restricted stock units, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Three months ended March 31, 2021 25,450 $ 2,015 $ 79.18 Three months ended March 31, 2020 26,601 $ 2,012 $ 75.63 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"). Under the 2019 Repurchase Program, 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, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Three months ended March 31, 2021 313,032 $ 27,000 $ 86.25 Three months ended March 31, 2020 175,765 $ 11,983 $ 68.18 (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. 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. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
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. Components of net periodic benefit costs, were as follows: Three months ended March 31, 2021 2020 Service cost $ 889 $ 678 Interest cost 235 243 Expected return on plan assets (201) (161) Amortization of actuarial loss, gross of tax 179 101 Net gratuity cost $ 1,102 $ 861 Income tax benefit on amortization of actuarial loss (51) (9) Amortization of actuarial loss, net of tax $ 128 $ 92 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 expects to earn a return of approximately 7.0% per annum on the India Plan for the year ended December 31, 2021. Change in Plan Assets Plan assets at January 1, 2021 $ 11,512 Actual return 201 Employer contribution — Benefits paid (283) Effect of exchange rate changes (6) Plan assets at March 31, 2021 $ 11,424 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 4.0% of employee compensation within certain limits. The Company's accrual for contributions to the 401(k) Plans were as follows: Three months ended March 31, 2021 2020 Contribution to the 401(k) Plan $ 1,299 $ 226 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: Three months ended March 31, 2021 2020 Contributions to the defined benefit plans $ 3,294 $ 2,977 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
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. As part of the Company’s effort to moderate the impact of COVID-19, the Company continued to evaluate its office facilities to determine where it can exit, consolidate, or otherwise optimize its use of office space. During the year ended December 31, 2020, the Company changed the lease term for certain of its leases and recognized the resultant amount of the remeasurement of the lease liability as an adjustment to the ROU assets. 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 March 31, 2021 December 31, 2020 Operating Lease Operating lease right-of-use assets $ 88,777 $ 91,918 Operating lease liabilities - Current $ 18,476 $ 18,894 Operating lease liabilities - Non-current 81,948 84,874 Total operating lease liabilities $ 100,424 $ 103,768 Finance Lease Property and equipment, gross $ 1,832 $ 1,853 Accumulated depreciation (1,405) (1,382) Property and equipment, net $ 427 $ 471 Finance lease liabilities - Current $ 209 $ 229 Finance lease liabilities - Non-current 256 281 Total finance lease liabilities $ 465 $ 510 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 unaudited consolidated statements of income, are as follows: Lease cost Three months ended March 31, 2021 Three months ended March 31, 2020 Finance lease: Amortization of right-of-use assets $ 52 $ 62 Interest on lease liabilities 17 30 Operating lease (a) 6,761 6,853 Total lease cost $ 6,830 $ 6,945 (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Three months ended March 31, 2021 2020 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 6,868 $ 6,576 Operating cash outflows for finance leases $ 17 $ 30 Financing cash outflows for finance leases $ 57 $ 67 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,054 $ 16,366 Right-of-use assets obtained in exchange for new finance lease liabilities $ 10 $ 28 Weighted-average remaining lease term (in years) Finance lease 1.7 years 2.3 years Operating lease 6.2 years 6.8 years Weighted-average discount rate Finance lease 10.7 % 10.2 % Operating lease 7.3 % 7.4 % 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 three months ended March 31, 2021 and year ended December 31, 2020, the Company modified certain of its operating leases, resulting in a reduction of its lease liabilities by $0 and $3,143 respectively, with a corresponding reduction in ROU assets. Maturities of lease liabilities as of March 31, 2021 were as follows: Operating Leases Finance Leases 2021 (April 1 - December 31) $ 19,102 $ 212 2022 24,613 169 2023 22,931 120 2024 17,262 46 2025 9,971 14 2026 and thereafter 34,414 — Total lease payments $ 128,293 $ 561 Less: Imputed interest 27,869 96 Present value of lease liabilities $ 100,424 $ 465 Maturities of lease liabilities as of December 31, 2020 were 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. As part of the Company’s effort to moderate the impact of COVID-19, the Company continued to evaluate its office facilities to determine where it can exit, consolidate, or otherwise optimize its use of office space. During the year ended December 31, 2020, the Company changed the lease term for certain of its leases and recognized the resultant amount of the remeasurement of the lease liability as an adjustment to the ROU assets. 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 March 31, 2021 December 31, 2020 Operating Lease Operating lease right-of-use assets $ 88,777 $ 91,918 Operating lease liabilities - Current $ 18,476 $ 18,894 Operating lease liabilities - Non-current 81,948 84,874 Total operating lease liabilities $ 100,424 $ 103,768 Finance Lease Property and equipment, gross $ 1,832 $ 1,853 Accumulated depreciation (1,405) (1,382) Property and equipment, net $ 427 $ 471 Finance lease liabilities - Current $ 209 $ 229 Finance lease liabilities - Non-current 256 281 Total finance lease liabilities $ 465 $ 510 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 unaudited consolidated statements of income, are as follows: Lease cost Three months ended March 31, 2021 Three months ended March 31, 2020 Finance lease: Amortization of right-of-use assets $ 52 $ 62 Interest on lease liabilities 17 30 Operating lease (a) 6,761 6,853 Total lease cost $ 6,830 $ 6,945 (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Three months ended March 31, 2021 2020 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 6,868 $ 6,576 Operating cash outflows for finance leases $ 17 $ 30 Financing cash outflows for finance leases $ 57 $ 67 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,054 $ 16,366 Right-of-use assets obtained in exchange for new finance lease liabilities $ 10 $ 28 Weighted-average remaining lease term (in years) Finance lease 1.7 years 2.3 years Operating lease 6.2 years 6.8 years Weighted-average discount rate Finance lease 10.7 % 10.2 % Operating lease 7.3 % 7.4 % 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 three months ended March 31, 2021 and year ended December 31, 2020, the Company modified certain of its operating leases, resulting in a reduction of its lease liabilities by $0 and $3,143 respectively, with a corresponding reduction in ROU assets. Maturities of lease liabilities as of March 31, 2021 were as follows: Operating Leases Finance Leases 2021 (April 1 - December 31) $ 19,102 $ 212 2022 24,613 169 2023 22,931 120 2024 17,262 46 2025 9,971 14 2026 and thereafter 34,414 — Total lease payments $ 128,293 $ 561 Less: Imputed interest 27,869 96 Present value of lease liabilities $ 100,424 $ 465 Maturities of lease liabilities as of December 31, 2020 were 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 | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company determines the tax provision for interim periods using an estimate of its annual effective tax rate. Each quarter, the Company updates its estimate of annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. The impact of COVID-19 on the economic environment is uncertain and may change the annual effective tax rate, which could impact tax expense. The Company's effective tax rate increased from 20.7% during the three months ended March 31, 2020 to 21.9% during the three months ended March 31, 2021. The Company recorded income tax expense of $8,958 and $5,855 for the three months ended March 31, 2021 and 2020, respectively. The increase in the income tax expense was primarily as a result of higher profit during the three months ended March 31, 2021 compared to the three months ended March 31, 2020. Income tax (deferred) recognized in other comprehensive income/(loss) were as follows: Three months ended March 31, 2021 2020 Deferred taxes benefit / (expense) recognized on: Unrealized gain / (loss) on cash flow hedges $ (398) $ 4,706 Reclassification adjustment for cash flow hedges 389 102 Reclassification adjustment for retirement benefits (51) (9) Foreign currency translation loss 284 4,234 Total Income tax benefit recognized in other comprehensive income / (loss) $ 224 $ 9,033 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock-Based Compensation The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income: Three months ended March 31, 2021 2020 Cost of revenues $ 1,536 $ 1,418 General and administrative expenses 3,298 1,568 Selling and marketing expenses 2,998 1,792 Total $ 7,832 $ 4,778 As of March 31, 2021, the Company had 1,887,604 shares available for grant under the 2018 Omnibus Incentive Plan. Stock Options Stock option activity under the Company’s stock-based compensation plans is shown below: Number of Weighted-Average Aggregate Weighted-Average Outstanding at December 31, 2020 31,265 $ 25.43 $ 1,866 1.85 Granted — — — — Exercised (3,016) 24.77 188 — Forfeited — — — — Outstanding at March 31, 2021 28,249 $ 25.50 $ 1,826 1.69 Vested and exercisable at March 31, 2021 28,249 $ 25.50 $ 1,826 1.69 Restricted Stock Units Restricted stock unit activity under the Company’s stock-based compensation plans is shown below: Restricted Stock Units Number Weighted-Average Outstanding at December 31, 2020* 903,666 $ 67.84 Granted 342,656 83.86 Vested (302,921) 64.00 Forfeited (13,182) 70.05 Outstanding at March 31, 2021* 930,219 $ 74.96 * As of March 31, 2021 and December 31, 2020 restricted stock units vested for which the underlying common stock is yet to be issued was 181,638 each. As of March 31, 2021, unrecognized compensation cost of $64,277 is expected to be expensed over a weighted average period of 3.01 years. Performance Based Stock Awards Under the 2018 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. During the three months ended March 31, 2021, the Company granted PRSUs that cliff vest at the end of a three year period based on a market condition that is contingent on the Company's meeting the total shareholder return relative to a group of peer companies specified under the program measured over a three-year performance period. The award recipient may earn up to two hundred percent (200%) of the PRSUs granted based on the actual achievement of targets. Unlike the three months ended March 31, 2020, the Company did not grant PRSUs that cliff vest at the end of a three-year period based on an aggregated revenue target for such three year period. 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, 2020 105,892 $ 72.32 105,867 $ 97.85 Granted — — 121,180 119.80 Vested — — — — Forfeited — — — — Outstanding at March 31, 2021 105,892 $ 72.32 227,047 $ 109.57 As of March 31, 2021, unrecognized compensation cost of $20,882 is expected to be expensed over a weighted average period of 2.34 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 unaudited consolidated statements of income. |
Related Party Disclosures
Related Party Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
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 each as of March 31, 2021 and December 31, 2020 and interest accrued of $2,625 and $1,313 as of March 31, 2021 and December 31, 2020, respectively, related to the Investment Agreement. The Company recognized interest expense on the Notes related to the Investment Agreements as below. Refer to Note 17 – Borrowings to the unaudited consolidated financial statements for details. Three months ended March 31 , 2021 2020 Interest expense on Notes $ 1,313 $ 1,313 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital Commitments At March 31, 2021, the Company had committed to spend approximately $3,300 under agreements to purchase property and equipment. This amount is net of capital advances paid which are recognized in the unaudited consolidated balance sheets as property and equipment. Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the Software Technology Parks of India or Special Economic Zone 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. 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 March 31, 2021. 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 March 31, 2021 and December 31, 2020 is $16,739 and $16,748, respectively, of which the Company has made payments and/or provided bank guarantees to the extent $8,116 and $8,120, respectively. Amounts paid as deposits in respect of such assessments aggregating to $6,304 and $6,307 as of March 31, 2021 and December 31, 2020, respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $1,812 and $1,813 as of March 31, 2021 and December 31, 2020, respectively, are included in “Restricted cash” in the non-current assets section of the Company’s unaudited 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 unaudited 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) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation and Principles of ConsolidationThe unaudited consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. |
Principles of Consolidation | The unaudited consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. 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 unaudited consolidated statements of income. |
Use of Estimates | Use of EstimatesThe preparation of the unaudited 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 unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the unaudited 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 March 31, 2021, 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. |
Recent Accounting Pronouncements and Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements In January 2021, Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2021-01, Reference Rate Reform (Topic 848): Scope , to clarify that all derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment (commonly referred to as the discounting transition) are within the scope of Accounting Standard Codification (“ASC”) 848. The amendments in this ASU further clarify that certain optional expedients and exceptions for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of the discontinuation of the use of LIBOR as a benchmark interest rate due to reference rate reform. This ASU is effective immediately for all entities with the option to be applied retrospectively as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, and prospectively to any new contract modifications made on or after January 7, 2021 through December 31, 2022. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. 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 London Inter-Bank Offered Rate (“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 impact of adoption of this ASU on its consolidated financial statements. ( d ) Recently Adopted Accounting Pronouncements In December 2019, FASB issued ASU No. 2019-12, Income Taxes Simplifying the Accounting for Income Taxes . This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The Company adopted this ASU on January 1, 2021. The adoption of this ASU has a minimal impact on the Company’s unaudited consolidated financial statements. In October 2020, FASB issued ASU No. 2020-10, Codification Improvements , to provide 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 improve the consistency of the ASC 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 ASC. The Company adopted this ASU on January 1, 2021. The adoption of this ASU did not have a material impact on the Company’s unaudited consolidated financial statements. |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenues and Cost of Revenues for Company's Reportable Segments | Revenues and cost of revenues for the three months ended March 31, 2021 and 2020, respectively, for each of the reportable segments, are as follows: Three months ended March 31, 2021 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 91,160 $ 30,265 $ 37,668 $ 102,322 $ 261,415 Cost of revenues (1) 56,093 17,391 20,844 64,493 158,821 Gross profit (1) $ 35,067 $ 12,874 $ 16,824 $ 37,829 $ 102,594 Operating expenses 61,039 Foreign exchange gain, interest expense and other income, net (630) Income tax expense 8,958 Loss from equity-method investment 36 Net income $ 31,931 (1) Exclusive of depreciation and amortization expense. Three months ended March 31, 2020 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 83,739 $ 27,029 $ 42,791 $ 92,431 $ 245,990 Cost of revenues (1) 58,965 19,593 25,482 58,616 162,656 Gross profit (1) $ 24,774 $ 7,436 $ 17,309 $ 33,815 $ 83,334 Operating expenses 55,847 Foreign exchange gain, interest expense and other income, net 834 Income tax expense 5,855 Loss from equity-method investment 55 Net income $ 22,411 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Three months ended March 31, 2021 2020 BPM and related services (1) $ 159,093 $ 153,559 Analytics services 102,322 92,431 Revenues, net $ 261,415 $ 245,990 (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. Three months ended March 31, 2021 2020 Revenues, net United States $ 224,368 $ 207,880 Non-United States United Kingdom 24,751 23,278 Rest of World 12,296 14,832 Total Non-United States 37,047 38,110 Revenues, net $ 261,415 $ 245,990 |
Property, Plant and Equipment 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 March 31, 2021 December 31, 2020 Long-lived assets India $ 93,329 $ 97,261 United States 47,676 46,659 Philippines 27,486 29,434 Rest of World 10,439 11,439 Long-lived assets $ 178,930 $ 184,793 |
Revenues, net (Tables)
Revenues, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contracts with Customer, Receivables and Liabilities | The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers: As of March 31, 2021 December 31, 2020 Accounts receivable, net $ 159,296 $ 147,635 Contract assets 3,984 4,437 Contract liabilities: Deferred revenue (consideration received in advance) 12,971 30,450 Consideration received for process transition activities $ 2,280 $ 2,774 Revenue recognized during the three months ended March 31, 2021 and 2020, which was included in the contract liabilities balance at the beginning of the respective periods: Three months ended March 31, 2021 2020 Deferred revenue (consideration received in advance) $ 23,621 $ 5,968 Consideration received for process transition activities $ 679 $ 274 |
Contract Acquisition and Fulfillment Costs | Contract Acquisition Costs Contract Fulfillment Costs Quarter Ended Year Ended Quarter Ended Year Ended March 31, 2021 March 31, 2020 December 31, 2020 March 31, 2021 March 31, 2020 December 31, 2020 Opening Balance $ 1,027 $ 1,307 $ 1,307 $ 5,631 $ 7,255 $ 7,255 Additions — — 310 6 284 779 Amortization (242) (92) (590) (1,218) (623) (2,403) Closing Balance $ 785 $ 1,215 $ 1,027 $ 4,419 $ 6,916 $ 5,631 |
Movement in Allowance for Expected Credit Loss | As of March 31, 2021 December 31, 2020 Accounts receivable, including unbilled receivables $ 160,479 $ 148,824 Less: Allowance for expected credit loss (1,183) (1,189) Accounts receivable, net $ 159,296 $ 147,635 The movement in allowance for expected credit loss on customer balances for the three months ended March 31, 2021 and year ended December 31, 2020 was as follows: Three months ended Year ended March 31, 2021 March 31, 2020 December 31, 2020 Balance at the beginning of the period $ 1,189 $ 1,163 $ 1,163 Additions during the period 50 195 300 Charged against allowance (60) — (269) Translation adjustment 4 (12) (5) Balance at the end of the period $ 1,183 $ 1,346 $ 1,189 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share: Three months ended March 31, 2021 2020 Numerators: Net income $ 31,931 $ 22,411 Denominators: Basic weighted average common shares outstanding 33,734,118 34,401,565 Dilutive effect of share based awards 342,993 319,038 Dilutive effect of conversion premium on convertible notes 241,207 — Diluted weighted average common shares outstanding 34,318,318 34,720,603 Earnings per share attributable to ExlService Holdings Inc. stockholders: Basic $ 0.95 $ 0.65 Diluted $ 0.93 $ 0.65 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share — 170,313 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | For the purpose of unaudited statements of cash flows, cash, cash equivalents and restricted cash comprise of the following: As of March 31, 2021 March 31, 2020 Cash and cash equivalents $ 177,121 $ 224,874 Restricted cash (current) 5,295 6,369 Restricted cash (non-current) 2,298 2,291 Cash, cash equivalents and restricted cash $ 184,714 $ 233,534 |
Restrictions on Cash and Cash Equivalents | For the purpose of unaudited statements of cash flows, cash, cash equivalents and restricted cash comprise of the following: As of March 31, 2021 March 31, 2020 Cash and cash equivalents $ 177,121 $ 224,874 Restricted cash (current) 5,295 6,369 Restricted cash (non-current) 2,298 2,291 Cash, cash equivalents and restricted cash $ 184,714 $ 233,534 |
Other Income, net (Tables)
Other Income, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Summary of Other Income, net | Other income, net consists of the following: Three months ended March 31, 2021 2020 Gain on sale and mark-to-market of mutual funds $ 1,103 $ 2,056 Interest and dividend income 602 532 Others, net (295) (59) Other income, net $ 1,410 $ 2,529 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consists of the following: Estimated useful lives As of (Years) March 31, 2021 December 31, 2020 Owned Assets: Network equipment and computers 3-5 $ 107,695 $ 107,109 Software 3-5 100,395 99,708 Leasehold improvements 3-8 46,889 48,052 Office furniture and equipment 3-8 21,888 22,117 Motor vehicles 2-5 597 599 Buildings 30 1,088 1,089 Land — 712 712 Capital work in progress — 5,316 4,647 284,580 284,033 Less: Accumulated depreciation and amortization (194,854) (191,629) $ 89,726 $ 92,404 Right-of-use assets under finance leases: Leasehold improvements $ 816 $ 817 Office furniture and equipment 347 348 Motor vehicles 669 688 1,832 1,853 Less: Accumulated depreciation and amortization (1,405) (1,382) $ 427 $ 471 Property and equipment, net $ 90,153 $ 92,875 The depreciation and amortization expense, excluding amortization of acquisition-related intangibles, recognized in the unaudited consolidated statements of income was as follows: Three months ended March 31, 2021 2020 Depreciation and amortization expense $ 8,740 $ 8,297 The effect of foreign exchange gain/(loss) upon settlement of cash flow hedges recorded under depreciation and amortization, was as follows: Three months ended March 31, 2021 2020 Effect of foreign exchange gain $ 165 $ 22 Internally developed software costs, included under Software, was as follows: As of March 31, 2021 December 31, 2020 Cost $ 18,608 $ 18,371 Less : Accumulated amortization (7,022) (5,998) Internally developed software, net $ 11,586 $ 12,373 The amortization expense on internally developed software recognized in the unaudited consolidated statements of income was as follows: Three months ended March 31 2021 2020 Amortization expense $ 1,024 $ 831 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 January 1, 2020 $ 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 31 (16) (455) (1) — — — (441) Balance at December 31, 2020 $ 50,499 $ 21,953 $ 49,348 $ 227,288 $ — $ — $ — $ 349,088 Currency 21 — (11) — — — — 10 Balance at March 31, 2021 $ 50,520 $ 21,953 $ 49,337 $ 227,288 $ — $ — $ — $ 349,098 (1) Represents the reallocation of goodwill resulting from the Company reorganizing its operating segments as described in Note 3 - Segment and Geographical Information to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. |
Schedule of indefinite lived Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of March 31, 2021 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 73,373 $ (29,378) $ 43,995 Developed technology 23,523 (12,984) 10,539 Trade names and trademarks 5,100 (4,291) 809 $ 101,996 $ (46,653) $ 55,343 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 102,896 $ (46,653) $ 56,243 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization 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 |
Schedule of amortization of Intangible Assets | The amortization expense recognized in the unaudited consolidated statements of income was as follows: Three months ended March 31, 2021 2020 Amortization expense $ 3,361 $ 4,153 |
Schedule of finite lived Intangible Assets useful lives | The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 6.68 Developed technology 2.48 Trade names and trademarks (Finite lived) 2.29 |
Schedule of estimated future amortization of Intangible Assets | Estimated future amortization expense related to finite-lived intangible assets as of March 31, 2021 was as follows: 2021 (April 1 - December 31) $ 9,410 2022 11,342 2023 9,053 2024 6,711 2025 5,959 2026 and thereafter 12,868 Total $ 55,343 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following: As of March 31, 2021 December 31, 2020 Derivative instruments $ 9,651 $ 9,755 Advances to suppliers 2,816 3,906 Receivables from statutory authorities 15,515 15,658 Contract assets 1,778 1,814 Deferred contract fulfillment costs 2,344 2,888 Interest accrued on term deposits 210 169 Others 3,514 2,919 Other current assets $ 35,828 $ 37,109 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: As of March 31, 2021 December 31, 2020 Lease deposits $ 9,635 $ 9,788 Derivative instruments 5,856 6,933 Deposits with statutory authorities 6,339 6,341 Term deposits 219 216 Contract assets 2,206 2,623 Deferred contract fulfillment costs 2,075 2,743 Others 3,339 3,455 Other assets $ 29,669 $ 32,099 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of March 31, 2021 December 31, 2020 Accrued expenses $ 38,562 $ 39,951 Payable to statutory authorities 17,245 10,594 Accrued capital expenditures 5,791 7,857 Derivative instruments 290 435 Client liabilities 5,333 4,740 Interest payable 2,734 1,399 Other current liabilities 3,077 1,205 Finance lease liabilities 209 229 Accrued expenses and other current liabilities $ 73,241 $ 66,410 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Liabilities, Noncurrent [Abstract] | |
Summary of Other Non-Current Liabilities | Other non-current liabilities consist of the following: As of March 31, 2021 December 31, 2020 Derivative instruments $ 645 $ 29 Unrecognized tax benefits 907 907 Retirement benefits 9,174 8,940 Deferred transition revenue 823 924 Accrued capital expenditures — 3,486 Other liabilities 3,314 3,568 Finance lease liabilities 256 281 Other non-current liabilities $ 15,119 $ 18,135 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The balances as of March 31, 2021 and March 31, 2020 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, 2021 $ (86,185) $ 13,799 $ (2,598) $ (74,984) Gains / (losses) recognized during the period (1,911) 568 — (1,343) Reclassification to net income (1) — (2,829) 179 (2,650) Income tax effects (2) 284 (9) (51) 224 Accumulated other comprehensive loss as of March 31, 2021 $ (87,812) $ 11,529 $ (2,470) $ (78,753) Balance as of January 1, 2020 $ (87,591) $ 4,098 $ (1,399) $ (84,892) Losses recognized during the period (21,571) (14,846) — (36,417) Reclassification to net income (1) — (929) 101 (828) Income tax effects (2) 4,234 4,808 (9) 9,033 Accumulated other comprehensive loss as of March 31, 2020 $ (104,928) $ (6,869) $ (1,307) $ (113,104) (1) Refer to Note 16 - Derivatives and Hedge Accounting and Note 19 - Employee Benefit Plans to the unaudited consolidated financial statements for reclassification to net income. (2) These are income tax effects 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 21 - Income Taxes to the unaudited consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of March 31, 2021 and December 31, 2020. Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs As of March 31, 2021 Level 1 Level 2 Level 3 Total Assets Mutual funds* $ 161,868 $ — $ — $ 161,868 Derivative financial instruments — 15,507 — 15,507 Total $ 161,868 $ 15,507 $ — $ 177,375 Liabilities Derivative financial instruments $ — $ 935 $ — $ 935 Total $ — $ 935 $ — $ 935 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 * 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) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Foreign Currency Exchange Contracts | The following tables set forth the fair value of the foreign currency exchange contracts and their location on the unaudited consolidated financial statements: Derivatives designated as hedging instruments: As of Foreign currency exchange contracts March 31, 2021 December 31, 2020 Other current assets $ 9,261 $ 9,740 Other assets $ 5,856 $ 6,933 Accrued expenses and other current liabilities $ 265 $ 176 Other non-current liabilities $ 645 $ 29 Derivatives not designated as hedging instruments: As of Foreign currency exchange contracts March 31, 2021 December 31, 2020 Other current assets $ 390 $ 15 Accrued expenses and other current liabilities $ 25 $ 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 unaudited consolidated statements of income and accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020: Three months ended March 31, Forward Exchange Contracts: 2021 2020 Unrealized (loss)/gain recognized in AOCI Derivatives in cash flow hedging relationships $ 568 $ (14,846) Loss recognized in unaudited consolidated statements of income Derivatives not designated as hedging instruments $ (394) $ (4,214) Location and amount of gain/(loss) recognized in unaudited consolidated statements of income for cash flow hedging relationships and derivatives not designated as hedging instruments Three months ended March 31, 2021 2020 As per unaudited consolidated statements of income Gain/(loss) on foreign currency exchange contracts As per unaudited consolidated statements of income Gain/(loss) on foreign currency exchange contracts Cash flow hedging relationships Location in unaudited consolidated statements of income where gain was reclassed from AOCI Cost of revenues $ 158,821 $ 2,424 $ 162,656 $ 812 General and administrative expenses $ 30,703 252 $ 28,941 73 Selling and marketing expenses $ 18,235 13 $ 14,456 4 Depreciation and amortization expense $ 12,101 140 $ 12,450 40 Total before tax 2,829 929 Income tax expense relating to above (389) (102) Net of tax $ 2,440 $ 827 Derivatives not designated as hedging instruments Location in unaudited consolidated statements of income where gain/(loss) was recognized Foreign exchange gain, net $ 434 $ (394) $ 1,377 $ (4,214) $ 434 $ (394) $ 1,377 $ (4,214) |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Debt Position | The following tables summarizes the Company’s debt position as of March 31, 2021 and December 31, 2020. As of March 31, 2021 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 — (10,562) (10,562) Unamortized debt issuance costs* — (751) (751) Long-term borrowings $ 64,000 $ 138,687 $ 202,687 Total borrowings $ 89,000 $ 138,687 $ 227,687 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 *Unamortized debt issuance costs for the Company’s revolving Credit Facility of $426 and $490 as of March 31, 2021 and December 31, 2020, respectively, is presented under “Other current assets” and “Other assets” in the consolidated balance sheets. |
Schedule of Credit Facilities Carried an Effective Interest Rate | effective interest rate as shown below. Three months ended March 31 2021 2020 Effective Interest Rate 2.0 % 3.0 % Three months ended March 31, 2021 2020 Effective Interest Rate 3.7 % 3.7 % |
Schedule of Interest Expense Debt Recognized | During the three months ended March 31, 2021 and 2020, the Company recognized interest expense and amortization of debt discount, on the Notes as below: Three months ended 2021 2020 Interest expense on the Notes $ 1,313 $ 1,313 Amortization of debt discount on the Notes $ 673 $ 635 |
Schedule of Maturities of Long-term Debt | Payments / maturities for all of the Company's borrowings as of March 31, 2021 were as follows: Notes Revolving Credit Facility Total 2021 (April - December) $ — $ 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) | 3 Months Ended |
Mar. 31, 2021 | |
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 units and performance-based restricted stock units, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Three months ended March 31, 2021 25,450 $ 2,015 $ 79.18 Three months ended March 31, 2020 26,601 $ 2,012 $ 75.63 |
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, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Three months ended March 31, 2021 313,032 $ 27,000 $ 86.25 Three months ended March 31, 2020 175,765 $ 11,983 $ 68.18 (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. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit costs, were as follows: Three months ended March 31, 2021 2020 Service cost $ 889 $ 678 Interest cost 235 243 Expected return on plan assets (201) (161) Amortization of actuarial loss, gross of tax 179 101 Net gratuity cost $ 1,102 $ 861 Income tax benefit on amortization of actuarial loss (51) (9) Amortization of actuarial loss, net of tax $ 128 $ 92 |
Change in Plan Assets | Change in Plan Assets Plan assets at January 1, 2021 $ 11,512 Actual return 201 Employer contribution — Benefits paid (283) Effect of exchange rate changes (6) Plan assets at March 31, 2021 $ 11,424 |
Schedule of Company's Contribution Plan | The Company's accrual for contributions to the 401(k) Plans were as follows: Three months ended March 31, 2021 2020 Contribution to the 401(k) Plan $ 1,299 $ 226 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: Three months ended March 31, 2021 2020 Contributions to the defined benefit plans $ 3,294 $ 2,977 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of supplemental balance sheet information | Supplemental balance sheet information As of March 31, 2021 December 31, 2020 Operating Lease Operating lease right-of-use assets $ 88,777 $ 91,918 Operating lease liabilities - Current $ 18,476 $ 18,894 Operating lease liabilities - Non-current 81,948 84,874 Total operating lease liabilities $ 100,424 $ 103,768 Finance Lease Property and equipment, gross $ 1,832 $ 1,853 Accumulated depreciation (1,405) (1,382) Property and equipment, net $ 427 $ 471 Finance lease liabilities - Current $ 209 $ 229 Finance lease liabilities - Non-current 256 281 Total finance lease liabilities $ 465 $ 510 |
Schedule of components of lease cost | The components of lease cost, which are included in the Company's unaudited consolidated statements of income, are as follows: Lease cost Three months ended March 31, 2021 Three months ended March 31, 2020 Finance lease: Amortization of right-of-use assets $ 52 $ 62 Interest on lease liabilities 17 30 Operating lease (a) 6,761 6,853 Total lease cost $ 6,830 $ 6,945 (a) Includes short-term leases, which are immaterial. |
Schedule of supplemental cash flow informaton related to leases | Supplemental cash flow and other information related to leases are as follows: Three months ended March 31, 2021 2020 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 6,868 $ 6,576 Operating cash outflows for finance leases $ 17 $ 30 Financing cash outflows for finance leases $ 57 $ 67 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,054 $ 16,366 Right-of-use assets obtained in exchange for new finance lease liabilities $ 10 $ 28 Weighted-average remaining lease term (in years) Finance lease 1.7 years 2.3 years Operating lease 6.2 years 6.8 years Weighted-average discount rate Finance lease 10.7 % 10.2 % Operating lease 7.3 % 7.4 % |
Schedule of maturities of lease liabilities | Maturities of lease liabilities as of March 31, 2021 were as follows: Operating Leases Finance Leases 2021 (April 1 - December 31) $ 19,102 $ 212 2022 24,613 169 2023 22,931 120 2024 17,262 46 2025 9,971 14 2026 and thereafter 34,414 — Total lease payments $ 128,293 $ 561 Less: Imputed interest 27,869 96 Present value of lease liabilities $ 100,424 $ 465 Maturities of lease liabilities as of December 31, 2020 were 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 March 31, 2021 were as follows: Operating Leases Finance Leases 2021 (April 1 - December 31) $ 19,102 $ 212 2022 24,613 169 2023 22,931 120 2024 17,262 46 2025 9,971 14 2026 and thereafter 34,414 — Total lease payments $ 128,293 $ 561 Less: Imputed interest 27,869 96 Present value of lease liabilities $ 100,424 $ 465 Maturities of lease liabilities as of December 31, 2020 were 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 (Tabl
Income Taxes Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Recognized in Other Comprehensive Income | Income tax (deferred) recognized in other comprehensive income/(loss) were as follows: Three months ended March 31, 2021 2020 Deferred taxes benefit / (expense) recognized on: Unrealized gain / (loss) on cash flow hedges $ (398) $ 4,706 Reclassification adjustment for cash flow hedges 389 102 Reclassification adjustment for retirement benefits (51) (9) Foreign currency translation loss 284 4,234 Total Income tax benefit recognized in other comprehensive income / (loss) $ 224 $ 9,033 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of costs related to company's stock-based compensation plan | The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income: Three months ended March 31, 2021 2020 Cost of revenues $ 1,536 $ 1,418 General and administrative expenses 3,298 1,568 Selling and marketing expenses 2,998 1,792 Total $ 7,832 $ 4,778 |
Schedule of stock options activity | Stock option activity under the Company’s stock-based compensation plans is shown below: Number of Weighted-Average Aggregate Weighted-Average Outstanding at December 31, 2020 31,265 $ 25.43 $ 1,866 1.85 Granted — — — — Exercised (3,016) 24.77 188 — Forfeited — — — — Outstanding at March 31, 2021 28,249 $ 25.50 $ 1,826 1.69 Vested and exercisable at March 31, 2021 28,249 $ 25.50 $ 1,826 1.69 |
Schedule of restricted stock and RSU activity | Restricted stock unit activity under the Company’s stock-based compensation plans is shown below: Restricted Stock Units Number Weighted-Average Outstanding at December 31, 2020* 903,666 $ 67.84 Granted 342,656 83.86 Vested (302,921) 64.00 Forfeited (13,182) 70.05 Outstanding at March 31, 2021* 930,219 $ 74.96 * As of March 31, 2021 and December 31, 2020 restricted stock units vested for which the underlying common stock is yet to be issued was 181,638 each. |
Schedule of performance based stock awards activity | 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, 2020 105,892 $ 72.32 105,867 $ 97.85 Granted — — 121,180 119.80 Vested — — — — Forfeited — — — — Outstanding at March 31, 2021 105,892 $ 72.32 227,047 $ 109.57 |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 17 – Borrowings to the unaudited consolidated financial statements for details. Three months ended March 31 , 2021 2020 Interest expense on Notes $ 1,313 $ 1,313 |
Segment and Geographical Info_3
Segment and Geographical Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021operating_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 (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||
Revenues, net | $ 261,415 | $ 245,990 | |
Cost of revenues | [1] | 158,821 | 162,656 |
Gross profit | [1] | 102,594 | 83,334 |
Operating expenses | 61,039 | 55,847 | |
Foreign exchange gain, interest expense and other income, net | (630) | 834 | |
Income tax expense | 8,958 | 5,855 | |
Loss from equity-method investment | 36 | 55 | |
Net income attributable to ExlService Holdings, Inc. stockholders | 31,931 | 22,411 | |
BPM and related services | |||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||
Revenues, net | 159,093 | 153,559 | |
Analytics services | |||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||
Revenues, net | 102,322 | 92,431 | |
Insurance | |||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||
Revenues, net | 91,160 | 83,739 | |
Cost of revenues | 56,093 | 58,965 | |
Gross profit | 35,067 | 24,774 | |
Healthcare | |||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||
Revenues, net | 30,265 | 27,029 | |
Cost of revenues | 17,391 | 19,593 | |
Gross profit | 12,874 | 7,436 | |
Emerging Business | |||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||
Revenues, net | 37,668 | 42,791 | |
Cost of revenues | 20,844 | 25,482 | |
Gross profit | 16,824 | 17,309 | |
Analytics | |||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||
Revenues, net | 102,322 | 92,431 | |
Cost of revenues | 64,493 | 58,616 | |
Gross profit | $ 37,829 | $ 33,815 | |
[1] | Exclusive of depreciation and amortization expense. |
Segment and Geographical Info_5
Segment and Geographical Information - Revenues based on Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, net | $ 261,415 | $ 245,990 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, net | 224,368 | 207,880 |
Total Non-United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, net | 37,047 | 38,110 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, net | 24,751 | 23,278 |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues, net | $ 12,296 | $ 14,832 |
Segment and Geographical Info_6
Segment and Geographical Information - Property, Plant and Equipment, Net Based On Geographical Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 178,930 | $ 184,793 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 93,329 | 97,261 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 47,676 | 46,659 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 27,486 | 29,434 |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 10,439 | $ 11,439 |
Revenues, net - Contracts with
Revenues, net - Contracts with Customer, Receivables, Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Jan. 01, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Accounts receivable, net | $ 159,296 | $ 147,635 | $ 147,635 | |
Contract assets | 3,984 | 4,437 | ||
Contract liabilities: | ||||
Deferred revenue (consideration received in advance) | 12,971 | 30,450 | ||
Consideration received for process transition activities | 2,280 | $ 2,774 | ||
Deferred revenue (consideration received in advance) | 23,621 | $ 5,968 | ||
Consideration received for process transition activities | $ 679 | $ 274 |
Revenues, net - Additional Info
Revenues, net - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounts receivable not billed | $ 78,502,000 | $ 63,995,000 |
Contract Acquisition Costs | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impairment loss in relation to costs capitalized | 0 | 0 |
Contract Fulfillment Costs | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impairment loss in relation to costs capitalized | $ 0 | $ 0 |
Revenues, net - Contract Acquis
Revenues, net - Contract Acquisition and Fulfillment Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Contract Acquisition Costs | |||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | |||
Opening Balance | $ 1,027 | $ 1,307 | $ 1,307 |
Additions | 0 | 0 | 310 |
Amortization | (242) | (92) | (590) |
Closing Balance | 785 | 1,215 | 1,027 |
Contract Fulfillment Costs | |||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | |||
Opening Balance | 5,631 | 7,255 | 7,255 |
Additions | 6 | 284 | 779 |
Amortization | (1,218) | (623) | (2,403) |
Closing Balance | $ 4,419 | $ 6,916 | $ 5,631 |
Revenues, net - Accounts Receiv
Revenues, net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | |||||
Accounts receivable, including unbilled receivables | $ 160,479 | $ 148,824 | |||
Less: Allowance for expected credit loss | (1,183) | $ (1,189) | (1,189) | $ (1,346) | $ (1,163) |
Accounts receivable, net | $ 159,296 | $ 147,635 | $ 147,635 |
Revenues, net - Allowance for C
Revenues, net - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | $ 1,189 | $ 1,163 | $ 1,163 |
Additions during the period | 50 | 195 | 300 |
Charged against allowance | (60) | 0 | (269) |
Translation adjustment | 4 | (12) | (5) |
Balance at the end of the period | $ 1,183 | $ 1,346 | $ 1,189 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | Mar. 31, 2021$ / shares |
3.50% Convertible Senior Notes due October 1, 2024 | Convertible Notes Payable | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Debt instrument, conversion price (in dollars per share) | $ 75 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerators: | ||
Net income | $ 31,931 | $ 22,411 |
Denominators: | ||
Basic weighted average common shares outstanding (in shares) | 33,734,118 | 34,401,565 |
Dilutive effect of share based awards (in shares) | 342,993 | 319,038 |
Dilutive effect of conversion premium on convertible notes (in shares) | 241,207 | 0 |
Diluted weighted average common shares outstanding (in shares) | 34,318,318 | 34,720,603 |
Earnings per share attributable to ExlService Holdings Inc. stockholders: | ||
Basic (in dollars per share) | $ 0.95 | $ 0.65 |
Diluted (in dollars per share) | $ 0.93 | $ 0.65 |
Weighted average potentially dilutive considered anti-dilutive and not included in computing diluted earnings per share (in shares) | 0 | 170,313 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 177,121 | $ 218,530 | $ 224,874 | |
Restricted cash (current) | 5,295 | 4,690 | 6,369 | |
Restricted cash (non-current) | 2,298 | 2,299 | 2,291 | |
Cash, cash equivalents and restricted cash | $ 184,714 | $ 225,519 | $ 233,534 | $ 127,044 |
Other Income, net - Summary of
Other Income, net - Summary of Other Income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | ||
Gain on sale and mark-to-market of mutual funds | $ 1,103 | $ 2,056 |
Interest and dividend income | 602 | 532 |
Others, net | (295) | (59) |
Other income, net | $ 1,410 | $ 2,529 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Owned Assets: | ||
Owned assets, gross | $ 284,580 | $ 284,033 |
Less: Accumulated depreciation and amortization | (194,854) | (191,629) |
Owned assets, net | 89,726 | 92,404 |
Right-of-use assets under finance leases: | ||
Property and equipment, gross | 1,832 | 1,853 |
Less: Accumulated depreciation and amortization | (1,405) | (1,382) |
Accumulated depreciation | 427 | 471 |
Right-of-use asset under finance lease, after accumulated depreciation and amortization | 90,153 | 92,875 |
Network equipment and computers | ||
Owned Assets: | ||
Owned assets, gross | 107,695 | 107,109 |
Software | ||
Owned Assets: | ||
Owned assets, gross | 100,395 | 99,708 |
Leasehold improvements | ||
Owned Assets: | ||
Owned assets, gross | 46,889 | 48,052 |
Right-of-use assets under finance leases: | ||
Property and equipment, gross | 816 | 817 |
Office furniture and equipment | ||
Owned Assets: | ||
Owned assets, gross | 21,888 | 22,117 |
Right-of-use assets under finance leases: | ||
Property and equipment, gross | 347 | 348 |
Motor vehicles | ||
Owned Assets: | ||
Owned assets, gross | 597 | 599 |
Right-of-use assets under finance leases: | ||
Property and equipment, gross | 669 | 688 |
Buildings | ||
Owned Assets: | ||
Owned assets, gross | $ 1,088 | 1,089 |
Right-of-use assets under finance leases: | ||
Estimated useful lives | 30 years | |
Land | ||
Owned Assets: | ||
Owned assets, gross | $ 712 | 712 |
Capital work in progress | ||
Owned Assets: | ||
Owned assets, gross | $ 5,316 | $ 4,647 |
Minimum | Network equipment and computers | ||
Right-of-use assets under finance leases: | ||
Estimated useful lives | 3 years | |
Minimum | Software | ||
Right-of-use assets under finance leases: | ||
Estimated useful lives | 3 years | |
Minimum | Leasehold improvements | ||
Right-of-use assets under finance leases: | ||
Estimated useful lives | 3 years | |
Minimum | Office furniture and equipment | ||
Right-of-use assets under finance leases: | ||
Estimated useful lives | 3 years | |
Minimum | Motor vehicles | ||
Right-of-use assets under finance leases: | ||
Estimated useful lives | 2 years | |
Maximum | Network equipment and computers | ||
Right-of-use assets under finance leases: | ||
Estimated useful lives | 5 years | |
Maximum | Software | ||
Right-of-use assets under finance leases: | ||
Estimated useful lives | 5 years | |
Maximum | Leasehold improvements | ||
Right-of-use assets under finance leases: | ||
Estimated useful lives | 8 years | |
Maximum | Office furniture and equipment | ||
Right-of-use assets under finance leases: | ||
Estimated useful lives | 8 years | |
Maximum | Motor vehicles | ||
Right-of-use assets under finance leases: | ||
Estimated useful lives | 5 years |
Property and Equipment, net - D
Property and Equipment, net - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 8,740 | $ 8,297 |
Depreciation and Amortization | ||
Property, Plant and Equipment [Line Items] | ||
Effect of foreign exchange gain | $ 165 | $ 22 |
Property and Equipment, net - I
Property and Equipment, net - Internally Developed Software Costs, Included under Software (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Cost | $ 18,608,000 | $ 18,371,000 | |
Less : Accumulated amortization | (7,022,000) | (5,998,000) | |
Internally developed software, net | 11,586,000 | 12,373,000 | |
Amortization expense | 1,024,000 | $ 831,000 | |
Impairment charges | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Company's Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 349,088 | $ 349,529 |
Goodwill reallocation | 0 | |
Currency translation adjustments | 10 | (441) |
Ending Balance | 349,098 | 349,088 |
Insurance | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 50,499 | 38,276 |
Goodwill reallocation | 12,192 | |
Currency translation adjustments | 21 | 31 |
Ending Balance | 50,520 | 50,499 |
Healthcare | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 21,953 | 19,276 |
Goodwill reallocation | 2,693 | |
Currency translation adjustments | 0 | (16) |
Ending Balance | 21,953 | 21,953 |
Emerging Business | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 49,348 | 0 |
Goodwill reallocation | 49,803 | |
Currency translation adjustments | (11) | (455) |
Ending Balance | 49,337 | 49,348 |
Analytics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 227,288 | 227,289 |
Goodwill reallocation | 0 | |
Currency translation adjustments | 0 | (1) |
Ending Balance | 227,288 | 227,288 |
TT&L | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 12,457 |
Goodwill reallocation | (12,457) | |
Currency translation adjustments | 0 | 0 |
Ending Balance | 0 | 0 |
F&A | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 46,905 |
Goodwill reallocation | (46,905) | |
Currency translation adjustments | 0 | 0 |
Ending Balance | 0 | 0 |
All Other | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 5,326 |
Goodwill reallocation | (5,326) | |
Currency translation adjustments | 0 | 0 |
Ending Balance | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 101,996 | $ 101,967 |
Accumulated Amortization | (46,653) | (43,273) |
Total | 55,343 | 58,694 |
Indefinite lived intangible assets [Abstract] | ||
Total intangible assets, gross carrying amount | 102,896 | 102,867 |
Total intangible assets, net carrying amount | 56,243 | 59,594 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 73,373 | 73,357 |
Accumulated Amortization | (29,378) | (27,464) |
Total | 43,995 | 45,893 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 23,523 | 23,510 |
Accumulated Amortization | (12,984) | (11,858) |
Total | 10,539 | 11,652 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 5,100 | 5,100 |
Accumulated Amortization | (4,291) | (3,951) |
Total | 809 | 1,149 |
Trade names and trademarks | ||
Indefinite lived intangible assets [Abstract] | ||
Trade names and trademarks | $ 900 | $ 900 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 3,361 | $ 4,153 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Weighted Average Life of Intangible Assets (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 6 years 8 months 4 days |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 2 years 5 months 23 days |
Trade names and trademarks (Finite lived) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 2 years 3 months 14 days |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 (April 1 - December 31) | $ 9,410 | |
2022 | 11,342 | |
2023 | 9,053 | |
2024 | 6,711 | |
2025 | 5,959 | |
2026 and thereafter | 12,868 | |
Total | $ 55,343 | $ 58,694 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Derivative instruments | $ 9,651 | $ 9,755 |
Advances to suppliers | 2,816 | 3,906 |
Receivables from statutory authorities | 15,515 | 15,658 |
Contract assets | 1,778 | 1,814 |
Deferred contract fulfillment costs | 2,344 | 2,888 |
Interest accrued on term deposits | 210 | 169 |
Others | 3,514 | 2,919 |
Other current assets | $ 35,828 | $ 37,109 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Lease deposits | $ 9,635 | $ 9,788 |
Derivative instruments | 5,856 | 6,933 |
Deposits with statutory authorities | 6,339 | 6,341 |
Term deposits | 219 | 216 |
Contract assets | 2,206 | 2,623 |
Deferred contract fulfillment costs | 2,075 | 2,743 |
Others | 3,339 | 3,455 |
Other assets | $ 29,669 | $ 32,099 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 38,562 | $ 39,951 |
Payable to statutory authorities | 17,245 | 10,594 |
Accrued capital expenditures | 5,791 | 7,857 |
Derivative instruments | 290 | 435 |
Client liabilities | 5,333 | 4,740 |
Interest payable | 2,734 | 1,399 |
Other current liabilities | 3,077 | 1,205 |
Finance lease liabilities - Current | 209 | 229 |
Accrued expenses and other current liabilities | $ 73,241 | $ 66,410 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Summary of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Liabilities, Noncurrent [Abstract] | ||
Derivative instruments | $ 645 | $ 29 |
Unrecognized tax benefits | 907 | 907 |
Retirement benefits | 9,174 | 8,940 |
Deferred transition revenue | 823 | 924 |
Accrued capital expenditures | 0 | 3,486 |
Other liabilities | 3,314 | 3,568 |
Finance lease liabilities - Non-current | 256 | 281 |
Other non-current liabilities | $ 15,119 | $ 18,135 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 719,172 | $ 670,001 | |
Gains / (losses) recognized during the period | (1,343) | (36,417) | |
Reclassification to net income | (2,650) | (828) | |
Income tax effects | [1] | 224 | 9,033 |
Ending balance | 726,225 | 655,904 | |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (74,984) | (84,892) | |
Ending balance | (78,753) | (113,104) | |
Foreign currency translation (loss)/gain | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (86,185) | (87,591) | |
Gains / (losses) recognized during the period | (1,911) | (21,571) | |
Reclassification to net income | 0 | 0 | |
Income tax effects | 284 | 4,234 | |
Ending balance | (87,812) | (104,928) | |
Unrealized (loss)/gain on cash flow hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 13,799 | 4,098 | |
Gains / (losses) recognized during the period | 568 | (14,846) | |
Reclassification to net income | (2,829) | (929) | |
Income tax effects | (9) | 4,808 | |
Ending balance | 11,529 | (6,869) | |
Retirement benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2,598) | (1,399) | |
Gains / (losses) recognized during the period | 0 | 0 | |
Reclassification to net income | 179 | 101 | |
Income tax effects | (51) | (9) | |
Ending balance | $ (2,470) | $ (1,307) | |
[1] | These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gains/(losses). Refer to Note 21 - Income Taxes to the unaudited consolidated financial statements. |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Mutual funds | $ 161,868 | $ 160,441 |
Derivative financial instruments | 15,507 | 16,688 |
Total | 177,375 | 177,129 |
Liabilities | ||
Derivative financial instruments | 935 | 464 |
Total | 935 | 464 |
Level 1 | ||
Assets | ||
Mutual funds | 161,868 | 160,441 |
Derivative financial instruments | 0 | 0 |
Total | 161,868 | 160,441 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets | ||
Mutual funds | 0 | 0 |
Derivative financial instruments | 15,507 | 16,688 |
Total | 15,507 | 16,688 |
Liabilities | ||
Derivative financial instruments | 935 | 464 |
Total | 935 | 464 |
Level 3 | ||
Assets | ||
Mutual funds | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Level 2 | ||
Business Acquisition [Line Items] | ||
Fair value of convertible notes | $ 152,636 | $ 152,384 |
Derivatives and Hedge Account_3
Derivatives and Hedge Accounting - Additional Information (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands | 3 Months Ended | |||||||
Mar. 31, 2021USD ($) | Mar. 31, 2021GBP (£) | Mar. 31, 2021EUR (€) | Mar. 31, 2021COP ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020EUR (€) | Dec. 31, 2020COP ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 8,996 | |||||||
Maximum outstanding term of the cash flow hedges | 45 months | |||||||
Derivatives designated as hedging instruments | Derivatives in cash flow hedging relationships | Foreign currency exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Foreign exchange contracts outstanding | $ 509,860 | $ 451,935 | ||||||
Derivatives not designated as hedging instruments | Foreign currency exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Foreign exchange contracts outstanding | $ 147,228 | £ 7,727 | € 1,978 | $ 8,172,868 | $ 143,394 | £ 6,753 | € 2,447 | $ 8,287,950 |
Derivatives and Hedge Account_4
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Details) - Foreign currency exchange contracts - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 9,261 | $ 9,740 |
Derivatives designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 5,856 | 6,933 |
Derivatives designated as hedging instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 265 | 176 |
Derivatives designated as hedging instruments | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 645 | 29 |
Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 390 | 15 |
Derivatives not designated as hedging instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 25 | $ 259 |
Derivatives and Hedge Account_5
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized in unaudited consolidated statements of income | $ 434 | $ 1,377 |
Derivatives in cash flow hedging relationships | Derivatives designated as hedging instruments | Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized (loss)/gain recognized in AOCI | 568 | (14,846) |
Reclassification out of Accumulated Other Comprehensive Income | Derivatives not designated as hedging instruments | Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized in unaudited consolidated statements of income | $ (394) | $ (4,214) |
Derivatives and Hedge Account_6
Derivatives and Hedge Accounting- Location of Gain or Loss Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cost of revenues | $ 158,821 | $ 162,656 |
General and administrative expenses | 30,703 | 28,941 |
Selling and marketing expenses | 18,235 | 14,456 |
Depreciation and amortization expense | 12,101 | 12,450 |
Income before income tax expense and earnings from equity affiliates | 40,925 | 28,321 |
Income tax expense relating to above | (8,958) | (5,855) |
Net income attributable to ExlService Holdings, Inc. stockholders | 31,931 | 22,411 |
Foreign exchange gain, net | 434 | 1,377 |
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 | 2,424 | 812 |
General and administrative expenses | 252 | 73 |
Selling and marketing expenses | 13 | 4 |
Depreciation and amortization expense | 140 | 40 |
Income before income tax expense and earnings from equity affiliates | 2,829 | 929 |
Income tax expense relating to above | (389) | (102) |
Net income attributable to ExlService Holdings, Inc. stockholders | 2,440 | 827 |
Reclassification out of Accumulated Other Comprehensive Income | Derivatives not designated as hedging instruments | Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign exchange gain, net | $ (394) | $ (4,214) |
Borrowings - Company's Debt Pos
Borrowings - Company's Debt Position (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | $ 25,000 | $ 25,000 |
Long-term borrowings | 214,000 | 214,000 |
Unamortized debt discount | (10,562) | (11,235) |
Unamortized debt issuance costs | (751) | (804) |
Long-term borrowings, less current portion | 202,687 | 201,961 |
Total | 227,687 | 226,961 |
Convertible Notes Payable | ||
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | 0 | 0 |
Long-term borrowings | 150,000 | 150,000 |
Unamortized debt discount | (10,562) | (11,235) |
Unamortized debt issuance costs | (751) | (804) |
Long-term borrowings, less current portion | 138,687 | 137,961 |
Total | 138,687 | 137,961 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | 25,000 | 25,000 |
Long-term borrowings | 64,000 | 64,000 |
Unamortized debt discount | 0 | 0 |
Unamortized debt issuance costs | 0 | 0 |
Long-term borrowings, less current portion | 64,000 | 64,000 |
Total | 89,000 | 89,000 |
Unamortized debt issuance costs | $ 426 | $ 490 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Oct. 01, 2018 | |
Credit Facilities [Line Items] | ||||
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% | |||
Convertible senior notes, interest rate | 3.70% | 3.70% | ||
Revolving Credit Facility | New Credit Agreement | ||||
Credit Facilities [Line Items] | ||||
Line of credit interest rate during period | 2.00% | 3.00% | ||
Revolving Credit Facility | Credit Agreement | ||||
Credit Facilities [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 300,000 |
Borrowings - Interest Expense o
Borrowings - Interest Expense of Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Amortization of debt discount on the Notes | $ 673 | $ 635 |
3.50% Convertible Senior Notes due October 1, 2024 | Notes | ||
Debt Instrument [Line Items] | ||
Interest expense on the Notes | 1,313 | 1,313 |
Amortization of debt discount on the Notes | $ 673 | $ 635 |
Borrowings - Principle Maturiti
Borrowings - Principle Maturities of Borrowings (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
2021 (April - December) | $ 25,000 |
2022 | 64,000 |
2023 | 0 |
2024 | 150,000 |
Total | 239,000 |
Notes | 3.50% Convertible Senior Notes due October 1, 2024 | |
Debt Instrument [Line Items] | |
2021 (April - December) | 0 |
2022 | 0 |
2023 | 0 |
2024 | 150,000 |
Total | 150,000 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
2021 (April - December) | 25,000 |
2022 | 64,000 |
2023 | 0 |
2024 | 0 |
Total | $ 89,000 |
Capital Structure - Additional
Capital Structure - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021class_of_common_stock | Dec. 16, 2019USD ($) | |
Equity, Class of Treasury Stock [Line Items] | ||
Number of classes of common stock outstanding | class_of_common_stock | 1 | |
2019 Repurchase Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Additional authorized amount | $ | $ 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 | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Shares repurchased (in shares) | 25,450 | 26,601 |
Total consideration | $ 2,015 | $ 2,012 |
Weighted average purchase price per share (in dollars per share) | $ 79,180 | $ 75,630 |
Capital Structure - Purchased S
Capital Structure - Purchased Shares of its Common Stock, Including Commissions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Shares repurchased (in shares) | 313,032 | 175,765 |
Total consideration | $ 27,000 | $ 11,983 |
Weighted average purchase price per share (in dollars per share) | $ 86,250 | $ 68,180 |
Employee Benefit Plans - Net Gr
Employee Benefit Plans - Net Gratuity Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 889 | $ 678 |
Interest cost | 235 | 243 |
Expected return on plan assets | (201) | (161) |
Amortization of actuarial loss, gross of tax | 179 | 101 |
Net gratuity cost | 1,102 | 861 |
Income tax benefit on amortization of actuarial loss | (51) | (9) |
Amortization of actuarial loss, net of tax | $ 128 | $ 92 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Expected return on plan assets, percentage | 7.00% |
Discretionary contributions towards 401(k) plan, maximum percentage | 4.00% |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Plan Assets (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Plan assets at January 1, 2021 | $ 11,512 |
Actual return | 201 |
Employer contribution | 0 |
Benefits paid | (283) |
Effect of exchange rate changes | (6) |
Plan assets at March 31, 2021 | $ 11,424 |
Employee Benefit Plans - Contri
Employee Benefit Plans - Contribution Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Compensation Related Costs [Abstract] | ||
Contribution to the 401(k) Plan | $ 1,299 | $ 226 |
Contributions to the defined benefit plans | $ 3,294 | $ 2,977 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Lease | ||
Operating lease right-of-use assets | $ 88,777 | $ 91,918 |
Operating lease liabilities - Current | 18,476 | 18,894 |
Operating lease liabilities - Non-current | 81,948 | 84,874 |
Total operating lease liabilities | 100,424 | 103,768 |
Finance Lease | ||
Property and equipment, gross | 1,832 | 1,853 |
Accumulated depreciation | (1,405) | (1,382) |
Property and equipment, net | 427 | 471 |
Finance lease liabilities - Current | 209 | 229 |
Finance lease liabilities - Non-current | 256 | 281 |
Total finance lease liabilities | $ 465 | $ 510 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 52 | $ 62 |
Interest on lease liabilities | 17 | 30 |
Operating lease | 6,761 | 6,853 |
Total lease cost | $ 6,830 | $ 6,945 |
Leases - Cash Flow and Other In
Leases - Cash Flow and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash payments for amounts included in the measurement of lease liabilities : | |||
Operating cash outflows for operating leases | $ 6,868 | $ 6,576 | |
Operating cash outflows for finance leases | 17 | 30 | |
Financing cash outflows for finance leases | 57 | 67 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 2,054 | 16,366 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 10 | $ 28 | |
Weighted-average remaining lease term (in years) | |||
Finance lease | 1 year 8 months 12 days | 2 years 3 months 18 days | |
Operating lease | 6 years 2 months 12 days | 6 years 9 months 18 days | |
Weighted-average discount rate | |||
Finance lease | 10.70% | 10.20% | |
Operating lease | 7.30% | 7.40% | |
Reduction in lease liabilities | $ 0 | $ 3,143 | |
Reduction in lease assets | $ 0 | $ 3,143 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 (April 1 - December 31) | $ 19,102 | |
2022 | 24,613 | $ 25,829 |
2023 | 22,931 | 24,316 |
2024 | 17,262 | 22,066 |
2025 | 9,971 | 17,084 |
2026 and thereafter | 34,414 | 34,334 |
Total lease payments | 128,293 | 133,378 |
Less: Imputed interest | 27,869 | 29,610 |
Present value of lease liabilities | 100,424 | 103,768 |
Finance Leases | ||
2021 (April 1 - December 31) | 212 | |
2022 | 169 | 262 |
2023 | 120 | 194 |
2024 | 46 | 114 |
2025 | 14 | 36 |
2026 and thereafter | 0 | 0 |
Total lease payments | 561 | 617 |
Less: Imputed interest | 96 | 107 |
Present value of lease liabilities | $ 465 | $ 510 |
Leases - Maturities of Lease _2
Leases - Maturities of Lease Liabilities Prior Year (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 | $ 24,613 | $ 25,829 |
2022 | 22,931 | 24,316 |
2023 | 17,262 | 22,066 |
2024 | 9,971 | 17,084 |
2025 | 9,749 | |
2026 and thereafter | 34,414 | 34,334 |
Total lease payments | 128,293 | 133,378 |
Less: Imputed interest | 27,869 | 29,610 |
Present value of lease liabilities | 100,424 | 103,768 |
Finance Leases | ||
2021 | 169 | 262 |
2022 | 120 | 194 |
2023 | 46 | 114 |
2024 | 14 | 36 |
2025 | 11 | |
2026 and thereafter | 0 | 0 |
Total lease payments | 561 | 617 |
Less: Imputed interest | 96 | 107 |
Present value of lease liabilities | $ 465 | $ 510 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate, current income tax expense (benefit) | 21.90% | 20.70% |
Income tax expense | $ 8,958 | $ 5,855 |
Income Taxes - Recognized in Co
Income Taxes - Recognized in Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Deferred taxes benefit / (expense) recognized on: | |||
Unrealized gain / (loss) on cash flow hedges | $ (398) | $ 4,706 | |
Reclassification adjustment for cash flow hedges | 389 | 102 | |
Reclassification adjustment for retirement benefits | (51) | (9) | |
Foreign currency translation loss | 284 | 4,234 | |
Total Income tax benefit recognized in other comprehensive income / (loss) | [1] | $ 224 | $ 9,033 |
[1] | These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gains/(losses). Refer to Note 21 - Income Taxes to the unaudited consolidated financial statements. |
Stock-Based Compensation - Cost
Stock-Based Compensation - Costs Related to Company's Stock-Based Compensation Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expenses | $ 7,832 | $ 4,778 |
Cost of revenues | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expenses | 1,536 | 1,418 |
General and administrative expenses | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expenses | 3,298 | 1,568 |
Selling and marketing expenses | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expenses | $ 2,998 | $ 1,792 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number available for grant (in shares) | 1,887,604 | |
Restricted Stock and Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 64,277 | |
Cost not yet recognized, period for recognition | 3 years 3 days | |
Performance Based Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 20,882 | |
Cost not yet recognized, period for recognition | 2 years 4 months 2 days | |
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] | ||
Award vesting period | 3 years | 3 years |
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] | ||
Award vesting period | 3 years |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Stock Option Activity (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Options, Outstanding, Beginning Balance (in shares) | 31,265 | |
Number of Options, Granted (in shares) | 0 | |
Number of Options, Exercised (in shares) | (3,016) | |
Number of Options, Forfeited (in shares) | 0 | |
Number of Options, Outstanding, Ending Balance (in shares) | 28,249 | 31,265 |
Number of Options, Vested and exercisable at end of period (in shares) | 28,249 | |
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) | $ 25.43 | |
Weighted-Average Exercise Price, Granted (in dollars per share) | 0 | |
Weighted-Average Exercise Price, Exercised (in dollars per share) | 24.77 | |
Weighted-Average Exercise Price, Forfeited (in dollars per share) | 0 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance (in dollars per share) | 25.50 | $ 25.43 |
Weighted Average Exercise Price, Vested and exercisable at end of period (in dollars per share) | $ 25.50 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Aggregate Intrinsic Value, Outstanding | $ 1,826 | $ 1,866 |
Aggregate Intrinsic Value, Exercised | 188 | |
Aggregate Intrinsic Value, Vested and exercisable at end of period | $ 1,826 | |
Weighted-Average Remaining Contractual Life | 1 year 8 months 8 days | 1 year 10 months 6 days |
Weighted-Average Remaining Contractual Life, Vested and exercisable at end of period | 1 year 8 months 8 days |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock and Restricted Stock Units Activity Under Company's Stock Plans (Details) - Restricted Stock Units | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, Outstanding, at Beginning Balance (in shares) | 903,666 |
Number, Granted (in shares) | 342,656 |
Number, Vested (in shares) | (302,921) |
Number, Forfeited (in shares) | (13,182) |
Number, Outstanding, at Ending Balance (in shares) | 930,219 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Fair Value, Outstanding, at Beginning Balance (in dollars per share) | $ / shares | $ 67.84 |
Weighted-Average Fair Value, Granted (in dollars per share) | $ / shares | 83.86 |
Weighted-Average Fair Value, Vested (in dollars per share) | $ / shares | 64 |
Weighted-Average Fair Value, Forfeited (in dollars per share) | $ / shares | 70.05 |
Weighted-Average Fair Value, Outstanding, at Ending Balance (in dollars per share) | $ / shares | $ 74.96 |
Units vested for which the underlying common stock is yet to be issued (in shares) | 181,638 |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Based Stock Awards (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue Based PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, Outstanding, at Beginning Balance (in shares) | 105,892 | |
Number, Granted (in shares) | 0 | |
Number, Vested (in shares) | 0 | |
Number, Forfeited (in shares) | 0 | |
Number, Outstanding, at Ending Balance (in 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, at Beginning Balance (in dollars per share) | $ 72.32 | |
Weighted-Average Fair Value, Granted (in dollars per share) | 0 | |
Weighted-Average Fair Value, Vested (in dollars per share) | 0 | |
Weighted-Average Fair Value, Forfeited (in dollars per share) | 0 | |
Weighted-Average Fair Value, Outstanding, at Ending Balance (in dollars per share) | $ 72.32 | |
Revenue Based PRSUs | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Award vesting period | 3 years | 3 years |
Market Condition Based PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, Outstanding, at Beginning Balance (in shares) | 105,867 | |
Number, Granted (in shares) | 121,180 | |
Number, Vested (in shares) | 0 | |
Number, Forfeited (in shares) | 0 | |
Number, Outstanding, at Ending Balance (in shares) | 227,047 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Fair Value, Outstanding, at Beginning Balance (in dollars per share) | $ 97.85 | |
Weighted-Average Fair Value, Granted (in dollars per share) | 119.80 | |
Weighted-Average Fair Value, Vested (in dollars per share) | 0 | |
Weighted-Average Fair Value, Forfeited (in dollars per share) | 0 | |
Weighted-Average Fair Value, Outstanding, at Ending Balance (in dollars per share) | $ 109.57 | |
Market Condition Based PRSUs | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Award vesting period | 3 years | |
Market Condition Based PRSUs | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Percentage of target shares earned | 200.00% |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Oct. 01, 2018 | |
Related Party Transaction [Line Items] | ||||
Debt outstanding | $ 227,687,000 | $ 226,961,000 | ||
Convertible Notes Payable | ||||
Related Party Transaction [Line Items] | ||||
Debt outstanding | 138,687,000 | 137,961,000 | ||
Convertible Notes Payable | 3.50% Convertible Senior Notes due October 1, 2024 | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument face amount | $ 150,000,000 | |||
Debt outstanding | 150,000,000 | 150,000,000 | ||
Interest accrued | 2,625,000 | $ 1,313,000 | ||
Interest expense on Notes | $ 1,313,000 | $ 1,313,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Capital commitments | $ 3,300 | |
Export-oriented units established, percentage | 100.00% | |
Aggregate disputed amount amount related to transfer pricing and permanent establishment | $ 16,739 | $ 16,748 |
Total bank guarantees and deposits in respect of contingencies | 8,116 | 8,120 |
Amounts paid as deposits in respect of contingencies | 6,304 | 6,307 |
Bank guarantee issued | $ 1,812 | $ 1,813 |