Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 26, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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 $0.001 per share | |
Trading Symbol | EXLS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,062,704 | |
Entity Central Index Key | 0001297989 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 106,304 | $ 135,337 |
Short-term investments | 158,941 | 178,538 |
Restricted cash | 6,840 | 6,174 |
Accounts receivable, net | 237,453 | 194,232 |
Prepaid expenses | 15,621 | 14,655 |
Advance income tax, net | 12,712 | 15,199 |
Other current assets | 23,143 | 34,009 |
Total current assets | 561,014 | 578,144 |
Property and equipment, net | 82,649 | 86,008 |
Operating lease right-of-use assets | 67,962 | 76,692 |
Restricted cash | 2,056 | 2,299 |
Deferred tax assets, net | 40,924 | 21,404 |
Intangible assets, net | 73,298 | 81,082 |
Goodwill | 406,575 | 403,902 |
Other assets | 53,195 | 30,369 |
Investment in equity affiliate | 3,261 | 3,004 |
Total assets | 1,290,934 | 1,282,904 |
Current liabilities: | ||
Accounts payable | 4,377 | 5,647 |
Current portion of long-term borrowings | 35,000 | 260,016 |
Deferred revenue | 22,013 | 20,000 |
Accrued employee costs | 75,698 | 114,285 |
Accrued expenses and other current liabilities | 89,030 | 76,350 |
Current portion of operating lease liabilities | 18,548 | 18,487 |
Income taxes payable, net | 21,348 | 901 |
Total current liabilities | 266,014 | 495,686 |
Long-term borrowings, less current portion | 250,000 | 0 |
Operating lease liabilities, less current portion | 59,224 | 68,506 |
Income taxes payable | 1,790 | 1,790 |
Deferred tax liabilities, net | 841 | 965 |
Other non-current liabilities | 27,412 | 22,801 |
Total liabilities | 605,281 | 589,748 |
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, 39,795,161 shares issued and 33,124,035 shares outstanding as of June 30, 2022 and 39,508,340 shares issued and 33,291,482 shares outstanding as of December 31, 2021 | 40 | 40 |
Additional paid-in capital | 420,306 | 395,742 |
Retained earnings | 828,161 | 756,137 |
Accumulated other comprehensive income/(loss) | (133,374) | (89,474) |
Total including shares held in treasury | 1,115,133 | 1,062,445 |
Less: 6,671,126 shares as of June 30, 2022 and 6,216,858 shares as of December 31, 2021, held in treasury, at cost | (429,480) | (369,289) |
Stockholders’ equity | 685,653 | 693,156 |
Total equity | 685,653 | 693,156 |
Total liabilities and stockholders’ equity | $ 1,290,934 | $ 1,282,904 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
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) | 39,795,161 | 39,508,340 |
Common stock, outstanding (in shares) | 33,124,035 | 33,291,482 |
Treasury stock (in shares) | 6,671,126 | 6,216,858 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Statement [Abstract] | |||||
Revenues, net | $ 346,782 | $ 275,064 | $ 675,990 | $ 536,479 | |
Cost of revenues | [1] | 221,207 | 170,701 | 428,723 | 329,522 |
Gross profit | [1] | 125,575 | 104,363 | 247,267 | 206,957 |
Operating expenses: | |||||
General and administrative expenses | 40,434 | 36,499 | 80,379 | 67,202 | |
Selling and marketing expenses | 23,985 | 19,724 | 48,155 | 37,959 | |
Depreciation and amortization expense | 14,075 | 12,310 | 27,677 | 24,411 | |
Total operating expenses | 78,494 | 68,533 | 156,211 | 129,572 | |
Income from operations | 47,081 | 35,830 | 91,056 | 77,385 | |
Foreign exchange gain, net | 1,423 | 1,353 | 3,179 | 1,787 | |
Interest expense | (1,502) | (2,520) | (2,378) | (4,994) | |
Other income/(loss), net | (174) | 2,215 | 2,237 | 3,625 | |
Income before income tax expense and earnings from equity affiliates | 46,828 | 36,878 | 94,094 | 77,803 | |
Income tax expense | 11,125 | 8,865 | 22,327 | 17,823 | |
Income before earnings from equity affiliates | 35,703 | 28,013 | 71,767 | 59,980 | |
Gain/(loss) from equity-method investment | 143 | 8 | 257 | (28) | |
Net income attributable to ExlService Holdings, Inc. stockholders | $ 35,846 | $ 28,021 | $ 72,024 | $ 59,952 | |
Earnings per share attributable to ExlService Holdings, Inc. stockholders: | |||||
Basic (in dollars per share) | $ 1.07 | $ 0.83 | $ 2.15 | $ 1.78 | |
Diluted (in dollars per share) | $ 1.06 | $ 0.81 | $ 2.13 | $ 1.75 | |
Weighted-average number of shares used in computing earnings per share attributable to ExlService Holdings Inc. stockholders: | |||||
Basic (in shares) | 33,403,411 | 33,571,074 | 33,422,618 | 33,652,146 | |
Diluted (in shares) | 33,830,539 | 34,389,768 | 33,862,597 | 34,353,593 | |
[1]Exclusive of depreciation and amortization expense. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 35,846 | $ 28,021 | $ 72,024 | $ 59,952 | |
Other comprehensive income/(loss): | |||||
Unrealized loss on cash flow hedges | (14,632) | (871) | (15,149) | (303) | |
Loss on net investment hedges | 0 | (1,134) | 0 | (1,134) | |
Foreign currency translation loss | (22,782) | (4,775) | (30,227) | (6,686) | |
Reclassification adjustments | |||||
Gain on cash flow hedges | [1] | (1,459) | (2,866) | (3,448) | (5,695) |
Retirement benefits | [2] | 149 | 176 | 304 | 355 |
Income tax effects relating to above | [3] | 3,656 | 1,478 | 4,620 | 1,702 |
Total other comprehensive income/(loss) | (35,068) | (7,992) | (43,900) | (11,761) | |
Total comprehensive income | $ 778 | $ 20,029 | $ 28,124 | $ 48,191 | |
[1]These are reclassified to net income and are included in cost of revenues and 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/(loss), 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 Income/(Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2020 | 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) | 315,801 | |||||
Stock issued against stock-based compensation plans | 173 | 173 | ||||
Stock-based compensation | $ 17,902 | 17,902 | ||||
Acquisition of treasury stock (in shares) | (600,076) | (625,526) | ||||
Acquisition of treasury stock | $ (57,424) | $ (57,424) | ||||
Other comprehensive (loss)/income | (11,761) | (11,761) | ||||
Net income | 59,952 | 59,952 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 39,283,853 | (6,034,144) | ||||
Ending balance at Jun. 30, 2021 | 728,014 | $ 39 | 439,051 | 701,331 | (86,745) | $ (325,662) |
Beginning balance (in shares) at Mar. 31, 2021 | 39,273,989 | (5,747,100) | ||||
Beginning balance at Mar. 31, 2021 | 726,225 | $ 39 | 428,882 | 673,310 | (78,753) | $ (297,253) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued against stock-based compensation plans (in shares) | 9,864 | |||||
Stock issued against stock-based compensation plans | 99 | 99 | ||||
Stock-based compensation | $ 10,070 | 10,070 | ||||
Acquisition of treasury stock (in shares) | (287,044) | (287,044) | ||||
Acquisition of treasury stock | $ (28,409) | $ (28,409) | ||||
Other comprehensive (loss)/income | (7,992) | (7,992) | ||||
Net income | 28,021 | 28,021 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 39,283,853 | (6,034,144) | ||||
Ending balance at Jun. 30, 2021 | $ 728,014 | $ 39 | 439,051 | 701,331 | (86,745) | $ (325,662) |
Beginning balance (in shares) at Dec. 31, 2021 | 33,291,482 | 39,508,340 | (6,216,858) | |||
Beginning balance at Dec. 31, 2021 | $ 693,156 | $ 40 | 395,742 | 756,137 | (89,474) | $ (369,289) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued against stock-based compensation plans (in shares) | 286,821 | |||||
Stock issued against stock-based compensation plans | 0 | 0 | ||||
Stock-based compensation | $ 24,564 | 24,564 | ||||
Acquisition of treasury stock (in shares) | (427,049) | (454,268) | ||||
Acquisition of treasury stock | $ (60,191) | $ (60,191) | ||||
Other comprehensive (loss)/income | (43,900) | (43,900) | ||||
Net income | $ 72,024 | 72,024 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 33,124,035 | 39,795,161 | (6,671,126) | |||
Ending balance at Jun. 30, 2022 | $ 685,653 | $ 40 | 420,306 | 828,161 | (133,374) | $ (429,480) |
Beginning balance (in shares) at Mar. 31, 2022 | 39,794,154 | (6,465,410) | ||||
Beginning balance at Mar. 31, 2022 | 700,341 | $ 40 | 406,966 | 792,315 | (98,306) | $ (400,674) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued against stock-based compensation plans (in shares) | 1,007 | |||||
Stock issued against stock-based compensation plans | 0 | 0 | ||||
Stock-based compensation | $ 13,340 | 13,340 | ||||
Acquisition of treasury stock (in shares) | (205,716) | (205,716) | ||||
Acquisition of treasury stock | $ (28,806) | $ (28,806) | ||||
Other comprehensive (loss)/income | (35,068) | (35,068) | ||||
Net income | $ 35,846 | 35,846 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 33,124,035 | 39,795,161 | (6,671,126) | |||
Ending balance at Jun. 30, 2022 | $ 685,653 | $ 40 | $ 420,306 | $ 828,161 | $ (133,374) | $ (429,480) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 72,024 | $ 59,952 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 27,739 | 24,734 |
Stock-based compensation expense | 24,564 | 17,902 |
Amortization of operating lease right-of-use assets | 12,005 | 13,632 |
Unrealized Gain (Loss) on Investments | (275) | 6,777 |
Unrealized foreign currency exchange gain, net | (10,280) | (2,634) |
Deferred income tax benefit | (1,462) | (14,737) |
Allowance / (reversal) of expected credit losses | 170 | (390) |
Fair value changes in contingent consideration | 1,000 | 0 |
Gain/(loss) from equity-method investment | (257) | 28 |
Amortization of non-cash interest expense related to convertible senior notes | 0 | 1,364 |
Others, net | 783 | 144 |
Change in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | (46,385) | (34,152) |
Prepaid expenses and other current assets | 2,861 | 189 |
Advance income tax, net | 8,684 | 39 |
Other assets | (6,584) | 1,589 |
Accounts payable | (1,107) | (2,458) |
Deferred revenue | 4,276 | (20,832) |
Accrued employee costs | (34,016) | 3,833 |
Accrued expenses and other liabilities | 11,190 | 12,290 |
Operating lease liabilities | (11,922) | (13,327) |
Net cash provided by operating activities | 53,008 | 53,943 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (25,054) | (19,903) |
Proceeds from sale of property and equipment | 154 | 527 |
Business acquisition (net of cash and cash equivalents acquired) | (2,572) | 0 |
Purchases of investments | (96,082) | (32,987) |
Proceeds from redemption of investments | 82,567 | 64,031 |
Net cash (used for)/provided by investing activities | (40,987) | 11,668 |
Cash flows from financing activities: | ||
Principal payments of finance lease liabilities | (75) | (107) |
Proceeds from borrowings | 35,000 | 25,000 |
Repayments of borrowings | (10,000) | (99,000) |
Acquisition of treasury stock | (60,191) | (57,424) |
Proceeds from exercise of stock options | 0 | 174 |
Net cash used for financing activities | (35,266) | (131,357) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5,365) | (2,237) |
Net decrease in cash, cash equivalents and restricted cash | (28,610) | (67,983) |
Cash, cash equivalents and restricted cash at the beginning of the period | 143,810 | 225,519 |
Cash, cash equivalents and restricted cash at the end of the period | 115,200 | 157,536 |
Cash paid during the period for: | ||
Interest | 2,694 | 3,599 |
Income taxes, net of refunds | 14,301 | 18,710 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Assets acquired under finance lease | $ 118 | $ 50 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2022 | |
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”), is a leading data analytics and digital operations and solutions company that partners with clients to improve business outcomes and unlock growth. By bringing together deep domain expertise with robust data, powerful analytics, cloud, artificial intelligence and machine learning, the Company creates agile, scalable solutions and executes complex operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media, and retail, among others. The Company’s data-led value creation framework enables better and faster decision making, leveraging its end-to-end data and analytics capabilities to drive improved business outcomes, and re-designing of operating models to integrate advanced technology into operational workflows. The Company embeds digital operations and solutions into clients’ businesses and introduces its data led approach to transform operations. Accordingly, as the Company’s operations management services are now a part of its digital operations and solutions, they are referred to as “digital operations and solutions” herein; however, the Company has not changed the way in which it manages its business or its operating segments or segment reporting structure. 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 | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021. 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) Investments The Company’s short-term investments consist of investments in mutual funds and those term deposits with more than three months of original maturity and less than twelve months of remaining maturity as of the reporting date, while long-term investments consist of term deposits with more than twelve months of remaining maturity as of the reporting date. The Company’s investments in term deposits with financial institutions are measured and recognized at cost and approximate fair value. Interest earned on such investments is included in interest income. The Company’s mutual fund investments are in debt funds invested in India. These investments are accounted for in accordance with the fair value option under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments , (“Topic 825”). The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period and any changes in fair value are included in other income/(loss), net. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in other income/(loss), net. (c) 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, estimates of the fair value of the identifiable intangible assets and contingent consideration, purchase price allocation, including revenue projections and discount rate applied within the discounted cash flow model for business acquisitions, 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, and recoverability of long-lived assets, goodwill and intangibles. (d) Recent Accounting Pronouncements In March 2020, FASB issued Accounting Standard Update (“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 October 2021, FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU provides guidance in Topic 805 to require the acquirer entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers, as if it had originated the contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements, if the acquiree prepared financial statements in accordance with U.S. GAAP. The ASU is effective for fiscal years beginning after December 15, 2022. An entity may early adopt the ASU including adoption in an interim period, with retrospective application to all business combinations within the fiscal year that includes such interim period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. |
Segment and Geographical Inform
Segment and Geographical Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information The Company is a provider of data analytics and digital operations and solutions. The Company manages and reports financial information through its four reportable segments: Insurance, Healthcare, Analytics and Emerging Business, which reflects how management reviews financial information and makes operating decisions. 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. The December 2021 and June 2022 acquisition of Clairvoyant AI Inc. (“Clairvoyant”) and Inbound Media Group, LLC (“Inbound”), respectively, are both included in the Analytics reportable segment. Refer to Note 9 - Business Combination, Goodwill and Intangible Assets to the unaudited consolidated financial statements for further details. Revenues and cost of revenues for the three months ended June 30, 2022 and 2021, respectively, for each of the reportable segments, are as follows: Three months ended June 30, 2022 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 108,557 $ 23,051 $ 53,873 $ 161,301 $ 346,782 Cost of revenues (1) 70,645 17,694 31,214 101,654 221,207 Gross profit (1) $ 37,912 $ 5,357 $ 22,659 $ 59,647 $ 125,575 Operating expenses 78,494 Foreign exchange gain, interest expense and other loss, net (253) Income tax expense 11,125 Gain from equity-method investment 143 Net income $ 35,846 (1) Exclusive of depreciation and amortization expense. Three months ended June 30, 2021 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 94,719 $ 28,250 $ 40,690 $ 111,405 $ 275,064 Cost of revenues (1) 59,359 17,685 22,346 71,311 170,701 Gross profit (1) $ 35,360 $ 10,565 $ 18,344 $ 40,094 $ 104,363 Operating expenses 68,533 Foreign exchange gain, interest expense and other income, net 1,048 Income tax expense 8,865 Gain from equity-method investment 8 Net income $ 28,021 (1) Exclusive of depreciation and amortization expense. Revenues and cost of revenues for the six months ended June 30, 2022 and 2021, respectively, for each of the reportable segments, are as follows: Six months ended June 30, 2022 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 211,823 $ 49,207 $ 104,620 $ 310,340 $ 675,990 Cost of revenues (1) 135,727 35,345 60,427 197,224 428,723 Gross profit (1) $ 76,096 $ 13,862 $ 44,193 $ 113,116 $ 247,267 Operating expenses 156,211 Foreign exchange gain, interest expense and other income, net 3,038 Income tax expense 22,327 Gain from equity-method investment 257 Net income $ 72,024 (1) Exclusive of depreciation and amortization expense. Six months ended June 30, 2021 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 185,879 $ 58,515 $ 78,358 $ 213,727 $ 536,479 Cost of revenues (1) 115,452 35,076 43,190 135,804 329,522 Gross profit (1) $ 70,427 $ 23,439 $ 35,168 $ 77,923 $ 206,957 Operating expenses 129,572 Foreign exchange gain, interest expense and other income, net 418 Income tax expense 17,823 Loss from equity-method investment 28 Net income $ 59,952 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Digital operations and solutions (1) $ 185,481 $ 163,659 $ 365,650 $ 322,752 Analytics services 161,301 111,405 310,340 213,727 Revenues, net $ 346,782 $ 275,064 $ 675,990 $ 536,479 (1) Digital operations and solutions 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 June 30, Six months ended June 30, 2022 2021 2022 2021 Revenues, net United States $ 298,520 $ 235,288 $ 580,899 $ 459,656 Non-United States United Kingdom 32,090 26,175 64,863 50,926 Rest of World 16,172 13,601 30,228 25,897 Total Non-United States 48,262 39,776 95,091 76,823 Revenues, net $ 346,782 $ 275,064 $ 675,990 $ 536,479 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 June 30, 2022 December 31, 2021 Long-lived assets India $ 65,899 $ 79,604 United States 54,085 50,095 Philippines 20,921 22,011 Rest of World 9,706 10,990 Long-lived assets $ 150,611 $ 162,700 |
Revenues, net
Revenues, net | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 December 31, 2021 Accounts receivable, net $ 237,453 $ 194,232 Contract assets $ 1,648 $ 2,524 Contract liabilities: Deferred revenue (consideration received in advance) $ 18,617 $ 18,247 Consideration received for process transition activities $ 4,327 $ 2,203 Accounts receivable includes $122,943 and $93,336 as of June 30, 2022 and December 31, 2021, 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 and six months ended June 30, 2022 and 2021, which was included in the contract liabilities balance at the beginning of the respective periods: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Deferred revenue (consideration received in advance) $ 4,306 $ 3,332 $ 13,870 $ 26,953 Consideration received for process transition activities $ 298 $ 508 $ 664 $ 1,187 Contract acquisition and fulfillment costs The following table provides details of the Company’s contract acquisition and fulfillment costs: Contract Acquisition Costs Three months ended Six months ended Year ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 December 31, 2021 Opening Balance $ 927 $ 785 $ 511 $ 1,027 $ 1,027 Additions 180 374 727 374 277 Amortization (124) (292) (255) (534) (793) Closing Balance $ 983 $ 867 $ 983 $ 867 $ 511 Contract Fulfillment Costs Three months ended Six months ended Year ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 December 31, 2021 Opening Balance $ 7,435 $ 4,419 $ 5,795 $ 5,631 $ 5,631 Additions 3,308 158 5,485 164 3,742 Amortization (576) (883) (1,113) (2,101) (3,578) Closing Balance $ 10,167 $ 3,694 $ 10,167 $ 3,694 $ 5,795 There was no impairment for contract acquisition and contract fulfillment costs as of June 30, 2022 and December 31, 2021. 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. As of June 30, 2022 December 31, 2021 Accounts receivable, including unbilled receivables $ 238,297 $ 194,805 Less: Allowance for expected credit losses (844) (573) Accounts receivable, net $ 237,453 $ 194,232 The movement in “Allowance for expected credit losses” on customer balances was as follows: Three months ended Six months ended Year ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 December 31, 2021 Balance at the beginning of the period $ 588 $ 1,183 $ 573 $ 1,189 $ 1,189 Additions / (reductions) during the period 571 (445) 743 (395) (496) Reductions due to write-off of Accounts Receivables (314) (13) (472) (73) (129) Translation adjustment (1) 5 — 9 9 Balance at the end of the period $ 844 $ 730 $ 844 $ 730 $ 573 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
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 an assumed conversion premium of outstanding convertible notes, using the treasury stock method (as discussed further in the subsequent paragraph). Common stock equivalents that are anti-dilutive are excluded from the computation of weighted average shares outstanding. The Company includes performance stock unit awards in dilutive potential common shares when they become contingently issuable and have a dilutive impact per authoritative guidance and excludes such awards when they are not contingently issuable. In 2021, diluted weighted-average shares outstanding was affected by the treatment of the Company’s 3.5% per annum Convertible Senior Notes due October 1, 2024 (the “Notes”). The Company had a choice to settle the Notes in cash, shares or any combination of the two. The Company had the ability to settle the principal balance of the Notes in cash, and as such, the Company 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 for the portion of the period until actual settlement and 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. During the third quarter of 2021, the Company settled the Notes by electing a combination of cash and shares of the Company’s common stock and as such included the count of shares issued on settlement in the calculation of basic earnings per share for the portion of the period outstanding. The following table sets forth the computation of basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Numerators: Net income $ 35,846 $ 28,021 $ 72,024 $ 59,952 Denominators: Basic weighted average common shares outstanding 33,403,411 33,571,074 33,422,618 33,652,146 Dilutive effect of share-based awards 427,128 330,063 439,979 336,528 Dilutive effect of conversion premium on the Notes — 488,631 — 364,919 Diluted weighted average common shares outstanding 33,830,539 34,389,768 33,862,597 34,353,593 Earnings per share attributable to ExlService Holdings Inc. stockholders: Basic $ 1.07 $ 0.83 $ 2.15 $ 1.78 Diluted $ 1.06 $ 0.81 $ 2.13 $ 1.75 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 0 1,748 541 874 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Jun. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash For the purposes of the unaudited statements of cash flows, cash, cash equivalents and restricted cash comprise of the following: As of June 30, 2022 June 30, 2021 December 31, 2021 Cash and cash equivalents $ 106,304 $ 150,211 $ 135,337 Restricted cash (current) 6,840 5,065 6,174 Restricted cash (non-current) 2,056 2,260 2,299 Cash, cash equivalents and restricted cash $ 115,200 $ 157,536 $ 143,810 |
Other Income_(Loss), net
Other Income/(Loss), net | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income/(Loss), net | Other Income/(Loss), net Other income/(loss), net consists of the following: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Gain on sale and mark-to-market of mutual funds and money market funds $ 634 $ 1,655 $ 1,870 $ 2,758 Interest and dividend income 847 689 2,217 1,291 Others, net (1,655) (129) (1,850) (424) Other income/(loss), net $ (174) $ 2,215 $ 2,237 $ 3,625 |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2022 | |
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) June 30, 2022 December 31, 2021 Owned Assets: Network equipment and computers 3-5 $ 123,117 $ 116,023 Software 2-5 105,924 101,884 Leasehold improvements 3-8 44,448 46,401 Office furniture and equipment 3-8 20,892 22,302 Motor vehicles 2-5 595 693 Buildings 30 1,007 1,070 Land — 659 700 Capital work in progress — 8,508 10,288 305,150 299,361 Less: Accumulated depreciation and amortization (222,870) (213,699) $ 82,280 $ 85,662 Right-of-use assets under finance leases:* Network equipment and computers $ 86 $ 91 Leasehold improvements 1,061 1,229 Office furniture and equipment 685 787 Motor vehicles 600 578 2,432 2,685 Less: Accumulated depreciation and amortization (2,063) (2,339) $ 369 $ 346 Property and equipment, net $ 82,649 $ 86,008 *Depreciation on assets held under finance leases are computed using the straight-line method over the shorter of the assets estimated useful lives or the lease term. 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 and six months ended June 30, 2022, there were no changes in estimated useful lives of property and equipment during the ordinary course of operations. 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 June 30, Six months ended June 30, 2022 2021 2022 2021 Depreciation and amortization expense $ 9,929 $ 8,913 $ 19,045 $ 17,653 The effect of foreign exchange gain/(loss) upon settlement of cash flow hedges recorded under depreciation and amortization, was as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Effect of foreign exchange gain/(loss) $ (5) $ 158 $ 62 $ 323 Internally developed software costs, included under Software, was as follows: As of June 30, 2022 December 31, 2021 Cost $ 27,015 $ 19,289 Less : Accumulated amortization (12,788) (10,226) Internally developed software, net $ 14,227 $ 9,063 The amortization expense on internally developed software recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Amortization expense $ 1,549 $ 1,055 $ 2,582 $ 2,079 As of June 30, 2022 and December 31, 2021, 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. |
Business Combination, Goodwill
Business Combination, Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Business Combination | Business Combination, Goodwill and Intangible Assets Clairvoyant AI Inc. On December 16, 2021, the Company, through its wholly owned subsidiary ExlService.com, LLC (“Buyer”), completed the acquisition of Clairvoyant, a Delaware corporation, pursuant to an equity securities purchase agreement dated December 16, 2021 (the “Purchase Agreement”). The Company purchased 100% of the issued and outstanding equity securities in Clairvoyant. Clairvoyant is a global technology consulting and services company that helps organizations in their business transformation by maximizing the value of data through actionable insights. It provides data engineering, analytics, machine learning, product engineering, and cloud-based solutions. The acquisition strengthens the Company’s capabilities by adding additional expertise in data engineering and cloud enablement, further supporting its clients in insurance, healthcare, banking and financial services, and retail. The aggregate purchase consideration payable was $90,325, including cash and cash equivalents acquired, debt, other post-closing adjustments and contingent consideration. The base purchase consideration payable at closing of the acquisition (the “Closing”) was $80,080, excluding cash and cash equivalents acquired, debt and estimated other post-closing adjustments. As of June 30, 2022 and December 31, 2021, of the total purchase consideration, the Company has paid $78,234 and $76,831, respectively, net of cash and cash equivalents acquired. The Purchase Agreement also allows sellers the ability to earn up to $20,000 of contingent consideration, based on the achievement of certain performance goals by Clairvoyant during the 2022 and 2023 calendar years. The contingent consideration had an estimated fair value of $10,000 and $9,000, as of June 30, 2022 and December 31, 2021, respectively, and has been presented as contingent consideration under “Other non-current liabilities” and “Accrued expenses and other current liabilities,” as applicable, in the consolidated balance sheets. Changes in the fair value of contingent consideration were recognized in the unaudited consolidated statements of income and presented as a part of “Other income/(loss), net.” A portion of the purchase consideration otherwise payable was placed into escrow as security for the post-closing working capital adjustments and the indemnification obligations under the Purchase Agreement. To finance the acquisition at the Closing, the Company utilized its revolving Credit Facility in the amount of $75,000 and paid the balance with available cash on hand. The Company accounted for the business combination using the acquisition method of accounting. Pursuant to the Company’s business combinations accounting policy, the aggregate purchase consideration for Clairvoyant was allocated to identifiable net tangible and intangible assets based upon their fair values. The excess of the estimated purchase consideration over fair value of identifiable net tangible and intangible assets was recorded as goodwill. In order to allocate the consideration transferred for Clairvoyant, the fair values of all identifiable assets and liabilities must be established. For accounting and financial reporting purposes, fair value is defined under ASC No. 820, Fair Value Measurement and Disclosure , as the price that would be received upon sale of an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. Use of different estimates and judgments could yield different results. The tables below presents the fair value of the consideration exchanged and the allocation of purchase consideration to the major classes of assets and liabilities of Clairvoyant as of December 16, 2021: Assets: Cash and cash equivalents $ 5,598 Accounts receivable, net 8,709 Other current assets 360 Property and equipment, net 398 Intangible assets, net Customer relationships 31,600 Developed technology 2,070 Trade names and trademarks 300 Non-compete agreements 300 Other assets 217 Total assets $ 49,552 Liabilities: Accounts payable $ (1,199) Accrued expenses and other current liabilities (4,873) Deferred tax liabilities (9,383) Other non-current liabilities (1,226) Total liabilities (16,681) Net assets acquired 32,871 Goodwill 57,454 Total purchase consideration* $ 90,325 * Includes contingent consideration of $9,000 recognized at fair value as of the date of acquisition . During the three and six months ended June 30, 2022, the Company recognized measurement period adjustments, which led to increase in goodwill in an amount of $1,081 and $2,229, respectively. These adjustments primarily relate to an increase in income tax liabilities of $988 included under “other non-current liabilities” and post-closing purchase adjustments. The fair values of customer relationships were determined by using an “income approach,” specifically the Multi-Period Excess Earnings Method. The customer relationship assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 7 years. The fair values of the developed technology intangible assets were determined by using the “cost approach,” specifically the replacement cost method. The technology assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 3 years. The goodwill recognized represents the acquired capabilities, operating synergies and other benefits expected to result from combining the acquired operations with the Company’s existing operations. The amount of goodwill recognized from Clairvoyant’s acquisition is not deductible for tax purposes. The goodwill has been assigned to the Company’s Analytics reportable segment based upon the Company’s assessment of nature of services rendered by Clairvoyant. Acquisition-related costs are being expensed as incurred and are included in general and administrative expenses in the consolidated statements of income. The Company recognized acquisition-related costs of $nil and $134 during the three and six months ended June 30, 2022, respectively, and $761 during the year ended December 31, 2021. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows, and therefore, the Company has not provided supplemental pro forma results. Inbound Media Group, LLC On June 10, 2022, the Company, through its wholly owned subsidiary ExlService.com, LLC, entered into an Asset Purchase Agreement to acquire certain assets of Inbound, a Wyoming limited liability company, which is a digital marketing business focused primarily on lead generation in the insurance space, for cash consideration of $1,469 and contingent consideration with an estimated fair value of $1,439 as of the date of acquisition based on the achievement of certain performance goals by Inbound during the 2022 to 2024 calendar years. The Company accounted for this business combination using the acquisition method of accounting. Goodwill and intangible assets of $1,992 and $916, respectively, were recognized by the Company as a result of this transaction. The goodwill recognized for this business is deductible for income tax purposes. The acquisition strengthens the Company’s capabilities in digital direct-to-consumer marketing by adding performance marketing, lead generation and customer engagement capabilities to its suite of end-to-end marketing solutions, proprietary data sets and robust consumer analytics. The results of operations of the acquired business and the fair value of the net assets acquired are included in the Company’s consolidated financial statements with effect from the date of the acquisition. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows, and therefore, the Company has not provided unaudited supplemental pro forma results. Goodwill The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare Emerging Business Analytics Total Balance at January 1, 2022 $ 50,428 $ 21,942 $ 49,020 $ 282,512 $ 403,902 Acquisition — — — 1,992 1,992 Measurement period adjustments — — — 2,229 2,229 Currency translation adjustments (399) (39) (1,109) (1) (1,548) Balance at June 30, 2022 $ 50,029 $ 21,903 $ 47,911 $ 286,732 $ 406,575 During the fourth quarter of 2021, 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 June 30, 2022, 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 and second quarters, business forecasts for the remainder of the year, stock price movements, generation and availability of cash 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 2021. The Company did not identify any triggers or indications of potential impairment for its reporting units as of June 30, 2022. 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 continues 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 June 30, 2022 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 99,146 $ (34,139) $ 65,007 Developed technology 24,878 (18,326) 6,552 Trade names and trademarks 1,700 (1,157) 543 Non-compete agreements 336 (40) 296 $ 126,060 $ (53,662) $ 72,398 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 126,960 $ (53,662) $ 73,298 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Finite-lived intangible assets: Customer relationships $ 103,016 $ (33,018) $ 69,998 Developed technology 25,040 (15,850) 9,190 Trade names and trademarks 1,700 (1,006) 694 Non-compete agreements 300 — 300 $ 130,056 $ (49,874) $ 80,182 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 130,956 $ (49,874) $ 81,082 The amortization expense recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Amortization expense $ 4,146 $ 3,397 $ 8,632 $ 6,758 The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 6.0 Developed technology 1.6 Trade names and trademarks (Finite lived) 2.0 Non-compete agreements 3.3 Estimated future amortization expense related to finite-lived intangible assets as of June 30, 2022 was as follows: 2022 (July 1 - December 31) $ 8,445 2023 14,595 2024 12,084 2025 10,648 2026 10,313 2027 and thereafter 16,313 Total $ 72,398 |
Goodwill and Intangible Assets | Business Combination, Goodwill and Intangible Assets Clairvoyant AI Inc. On December 16, 2021, the Company, through its wholly owned subsidiary ExlService.com, LLC (“Buyer”), completed the acquisition of Clairvoyant, a Delaware corporation, pursuant to an equity securities purchase agreement dated December 16, 2021 (the “Purchase Agreement”). The Company purchased 100% of the issued and outstanding equity securities in Clairvoyant. Clairvoyant is a global technology consulting and services company that helps organizations in their business transformation by maximizing the value of data through actionable insights. It provides data engineering, analytics, machine learning, product engineering, and cloud-based solutions. The acquisition strengthens the Company’s capabilities by adding additional expertise in data engineering and cloud enablement, further supporting its clients in insurance, healthcare, banking and financial services, and retail. The aggregate purchase consideration payable was $90,325, including cash and cash equivalents acquired, debt, other post-closing adjustments and contingent consideration. The base purchase consideration payable at closing of the acquisition (the “Closing”) was $80,080, excluding cash and cash equivalents acquired, debt and estimated other post-closing adjustments. As of June 30, 2022 and December 31, 2021, of the total purchase consideration, the Company has paid $78,234 and $76,831, respectively, net of cash and cash equivalents acquired. The Purchase Agreement also allows sellers the ability to earn up to $20,000 of contingent consideration, based on the achievement of certain performance goals by Clairvoyant during the 2022 and 2023 calendar years. The contingent consideration had an estimated fair value of $10,000 and $9,000, as of June 30, 2022 and December 31, 2021, respectively, and has been presented as contingent consideration under “Other non-current liabilities” and “Accrued expenses and other current liabilities,” as applicable, in the consolidated balance sheets. Changes in the fair value of contingent consideration were recognized in the unaudited consolidated statements of income and presented as a part of “Other income/(loss), net.” A portion of the purchase consideration otherwise payable was placed into escrow as security for the post-closing working capital adjustments and the indemnification obligations under the Purchase Agreement. To finance the acquisition at the Closing, the Company utilized its revolving Credit Facility in the amount of $75,000 and paid the balance with available cash on hand. The Company accounted for the business combination using the acquisition method of accounting. Pursuant to the Company’s business combinations accounting policy, the aggregate purchase consideration for Clairvoyant was allocated to identifiable net tangible and intangible assets based upon their fair values. The excess of the estimated purchase consideration over fair value of identifiable net tangible and intangible assets was recorded as goodwill. In order to allocate the consideration transferred for Clairvoyant, the fair values of all identifiable assets and liabilities must be established. For accounting and financial reporting purposes, fair value is defined under ASC No. 820, Fair Value Measurement and Disclosure , as the price that would be received upon sale of an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. Use of different estimates and judgments could yield different results. The tables below presents the fair value of the consideration exchanged and the allocation of purchase consideration to the major classes of assets and liabilities of Clairvoyant as of December 16, 2021: Assets: Cash and cash equivalents $ 5,598 Accounts receivable, net 8,709 Other current assets 360 Property and equipment, net 398 Intangible assets, net Customer relationships 31,600 Developed technology 2,070 Trade names and trademarks 300 Non-compete agreements 300 Other assets 217 Total assets $ 49,552 Liabilities: Accounts payable $ (1,199) Accrued expenses and other current liabilities (4,873) Deferred tax liabilities (9,383) Other non-current liabilities (1,226) Total liabilities (16,681) Net assets acquired 32,871 Goodwill 57,454 Total purchase consideration* $ 90,325 * Includes contingent consideration of $9,000 recognized at fair value as of the date of acquisition . During the three and six months ended June 30, 2022, the Company recognized measurement period adjustments, which led to increase in goodwill in an amount of $1,081 and $2,229, respectively. These adjustments primarily relate to an increase in income tax liabilities of $988 included under “other non-current liabilities” and post-closing purchase adjustments. The fair values of customer relationships were determined by using an “income approach,” specifically the Multi-Period Excess Earnings Method. The customer relationship assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 7 years. The fair values of the developed technology intangible assets were determined by using the “cost approach,” specifically the replacement cost method. The technology assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 3 years. The goodwill recognized represents the acquired capabilities, operating synergies and other benefits expected to result from combining the acquired operations with the Company’s existing operations. The amount of goodwill recognized from Clairvoyant’s acquisition is not deductible for tax purposes. The goodwill has been assigned to the Company’s Analytics reportable segment based upon the Company’s assessment of nature of services rendered by Clairvoyant. Acquisition-related costs are being expensed as incurred and are included in general and administrative expenses in the consolidated statements of income. The Company recognized acquisition-related costs of $nil and $134 during the three and six months ended June 30, 2022, respectively, and $761 during the year ended December 31, 2021. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows, and therefore, the Company has not provided supplemental pro forma results. Inbound Media Group, LLC On June 10, 2022, the Company, through its wholly owned subsidiary ExlService.com, LLC, entered into an Asset Purchase Agreement to acquire certain assets of Inbound, a Wyoming limited liability company, which is a digital marketing business focused primarily on lead generation in the insurance space, for cash consideration of $1,469 and contingent consideration with an estimated fair value of $1,439 as of the date of acquisition based on the achievement of certain performance goals by Inbound during the 2022 to 2024 calendar years. The Company accounted for this business combination using the acquisition method of accounting. Goodwill and intangible assets of $1,992 and $916, respectively, were recognized by the Company as a result of this transaction. The goodwill recognized for this business is deductible for income tax purposes. The acquisition strengthens the Company’s capabilities in digital direct-to-consumer marketing by adding performance marketing, lead generation and customer engagement capabilities to its suite of end-to-end marketing solutions, proprietary data sets and robust consumer analytics. The results of operations of the acquired business and the fair value of the net assets acquired are included in the Company’s consolidated financial statements with effect from the date of the acquisition. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows, and therefore, the Company has not provided unaudited supplemental pro forma results. Goodwill The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare Emerging Business Analytics Total Balance at January 1, 2022 $ 50,428 $ 21,942 $ 49,020 $ 282,512 $ 403,902 Acquisition — — — 1,992 1,992 Measurement period adjustments — — — 2,229 2,229 Currency translation adjustments (399) (39) (1,109) (1) (1,548) Balance at June 30, 2022 $ 50,029 $ 21,903 $ 47,911 $ 286,732 $ 406,575 During the fourth quarter of 2021, 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 June 30, 2022, 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 and second quarters, business forecasts for the remainder of the year, stock price movements, generation and availability of cash 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 2021. The Company did not identify any triggers or indications of potential impairment for its reporting units as of June 30, 2022. 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 continues 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 June 30, 2022 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 99,146 $ (34,139) $ 65,007 Developed technology 24,878 (18,326) 6,552 Trade names and trademarks 1,700 (1,157) 543 Non-compete agreements 336 (40) 296 $ 126,060 $ (53,662) $ 72,398 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 126,960 $ (53,662) $ 73,298 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Finite-lived intangible assets: Customer relationships $ 103,016 $ (33,018) $ 69,998 Developed technology 25,040 (15,850) 9,190 Trade names and trademarks 1,700 (1,006) 694 Non-compete agreements 300 — 300 $ 130,056 $ (49,874) $ 80,182 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 130,956 $ (49,874) $ 81,082 The amortization expense recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Amortization expense $ 4,146 $ 3,397 $ 8,632 $ 6,758 The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 6.0 Developed technology 1.6 Trade names and trademarks (Finite lived) 2.0 Non-compete agreements 3.3 Estimated future amortization expense related to finite-lived intangible assets as of June 30, 2022 was as follows: 2022 (July 1 - December 31) $ 8,445 2023 14,595 2024 12,084 2025 10,648 2026 10,313 2027 and thereafter 16,313 Total $ 72,398 |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consist of the following: As of June 30, 2022 December 31, 2021 Receivables from statutory authorities $ 13,299 $ 18,023 Derivative instruments 2,865 8,682 Advances to suppliers 2,172 1,464 Deferred contract fulfillment costs 1,315 1,483 Contract assets 872 1,319 Interest accrued on term deposits 645 892 Others 1,975 2,146 Other current assets $ 23,143 $ 34,009 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: As of June 30, 2022 December 31, 2021 Long-term investments $ 22,997 $ 186 Lease deposits 9,251 9,649 Deferred contract fulfillment costs 8,852 4,312 Deposits with statutory authorities 6,516 6,417 Derivative instruments 1,043 6,307 Contract assets 776 1,205 Receivable from Statutory authorities 225 222 Others 3,535 2,071 Other assets $ 53,195 $ 30,369 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 December 31, 2021 Accrued expenses $ 47,611 $ 44,405 Payable to statutory authorities 15,032 13,902 Derivative instruments 6,617 1,852 Client liabilities 6,461 6,097 Contingent consideration 5,280 — Accrued capital expenditures 2,277 8,630 Interest payable 282 252 Finance lease liabilities 127 141 Other current liabilities 5,343 1,071 Accrued expenses and other current liabilities $ 89,030 $ 76,350 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Liabilities, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consist of the following: As of June 30, 2022 December 31, 2021 Retirement benefits $ 11,029 $ 9,604 Contingent consideration 6,159 9,000 Derivative instruments 3,978 1,785 Unrecognized tax benefits 2,142 1,068 Deferred transition revenue 2,957 995 Finance lease liabilities 262 229 Others 885 120 Other non-current liabilities $ 27,412 $ 22,801 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss) Accumulated other comprehensive income/(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 and net investment 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. Upon settlement of foreign exchange contracts designated as cash flow hedges, fair value changes are reclassified from AOCI to net income, whereas such fair value changes related to net investment hedges are included in net income when a foreign operation is disposed or partially disposed. The balances as of June 30, 2022 and 2021 are as follows: Accumulated Other Comprehensive Income/(Loss) Foreign currency translation loss Unrealized gain/(loss) on cash flow hedges Retirement benefits Total Balance as of January 1, 2022 $ (95,437) $ 8,420 $ (2,457) $ (89,474) Losses recognized during the period (30,227) (15,149) — (45,376) Reclassification to net income (1) — (3,448) 304 (3,144) Income tax effects (2) 979 3,733 (92) 4,620 Accumulated other comprehensive income/(loss) as of June 30, 2022 $ (124,685) $ (6,444) $ (2,245) $ (133,374) Balance as of January 1, 2021 $ (86,185) $ 13,799 $ (2,598) $ (74,984) Losses recognized during the period (6,686) (303) — (6,989) Losses on net investment hedges (1,134) — — (1,134) Reclassification to net income (1) — (5,695) 355 (5,340) Income tax effects (2) 1,229 595 (122) 1,702 Accumulated other comprehensive income/(loss) as of June 30, 2021 $ (92,776) $ 8,396 $ (2,365) $ (86,745) (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 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
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021: Quoted Prices Significant Significant As of June 30, 2022 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 332 $ — $ — $ 332 Mutual funds** 107,425 — — 107,425 Derivative financial instruments — 3,908 — 3,908 Total $ 107,757 $ 3,908 $ — $ 111,665 Liabilities Derivative financial instruments $ — $ 10,595 $ — $ 10,595 Contingent consideration*** — — 11,439 11,439 Total $ — $ 10,595 $ 11,439 $ 22,034 Quoted Prices Significant Significant As of December 31, 2021 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 5,374 $ — $ — $ 5,374 Mutual funds** 127,551 — — 127,551 Derivative financial instruments — 14,989 — 14,989 Total $ 132,925 $ 14,989 $ — $ 147,914 Liabilities Derivative financial instruments $ — $ 3,637 $ — $ 3,637 Contingent consideration*** — — 9,000 9,000 Total $ — $ 3,637 $ 9,000 $ 12,637 * Represents money market funds which are carried at the fair value option under ASC 825 “Financial Instruments”. ** Represents those short-term investments which are carried at the fair value option under ASC 825 “Financial Instruments”. *** Contingent consideration is presented under “Accrued Expenses and Other Current Liabilities” and “Other Non-Current Liabilities,” as applicable, in the consolidated balance sheets. 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. Fair Value of Contingent Consideration: The fair value measurement of contingent consideration is determined using Level 3 inputs. The Company’s contingent consideration represents a component of the total purchase consideration for its acquisition of Clairvoyant and Inbound. The measurement is calculated using unobservable inputs based on the Company’s own assessment of achievement of certain performance goals by Clairvoyant during the 2022 and 2023 calendar years and Inbound during the 2022 to 2024 calendar years. The Company estimated the fair value of the contingent consideration to be $11,439 and $9,000, as of June 30, 2022 and December 31, 2021, respectively, based on the Monte Carlo simulation model and scenario-based method. Refer to Note 9 - Business Combination, Goodwill and Intangible Asset s 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 (except investments in money market funds, as disclosed above), short-term investments (except investments in mutual funds, as disclosed above), restricted cash, accounts receivable, net, interest accrued on short-term and long-term investments, long-term investments, accrued capital expenditures, accrued expenses, client liabilities and interest payable on borrowings for which fair values approximate their carrying amounts. 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. |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 6 Months Ended |
Jun. 30, 2022 | |
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 $568,300 as of June 30, 2022 and $514,580 as of December 31, 2021. 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 a part of “Cost of revenues,” “General and administrative expenses,” “Selling and marketing expenses,” and “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 $3,795 of derivative losses, net, excluding tax effects, included in AOCI, representing changes in the value of cash flow hedges based on exchange rates prevailing as of June 30, 2022, could be reclassified into earnings within the next twelve months. At June 30, 2022, the maximum outstanding term of the cash flow hedges was approximately 42 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, the Australian dollar (AUD) and other local currencies in which it operates. Outstanding foreign currency forward contracts amounted to USD 156,066, GBP 8,700, EUR 1,736 and COP 2,777,668 as of June 30, 2022 and USD 134,612, GBP 6,763, EUR 1,343 and COP 2,541,902 as of December 31, 2021. The Company uses forward contracts designated as net investment hedges to hedge the foreign currency risks related to our investments in foreign subsidiaries. Gains and losses on these net investment hedges are recognized in AOCI as part of foreign currency translation adjustments. 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 June 30, 2022 December 31, 2021 Other current assets $ 2,727 $ 8,669 Other assets $ 1,043 $ 6,307 Accrued expenses and other current liabilities $ 6,522 $ 1,324 Other non-current liabilities $ 3,978 $ 1,785 Derivatives not designated as hedging instruments: As of Foreign currency exchange contracts June 30, 2022 December 31, 2021 Other current assets $ 138 $ 13 Accrued expenses and other current liabilities $ 95 $ 528 The following tables set forth the effect of foreign currency exchange contracts on accumulated other comprehensive income/(loss) and the unaudited consolidated statements of income for the three and six months ended June 30, 2022 and 2021: Three months ended June 30, Six months ended June 30, Forward Exchange Contracts: 2022 2021 2022 2021 Unrealized loss recognized in AOCI Derivatives in cash flow hedging relationships $ (14,632) $ (871) $ (15,149) $ (303) Loss recognized in unaudited consolidated statements of income Derivatives not designated as hedging instruments $ (5,457) $ (805) $ (6,356) $ (589) 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 June 30, 2022 2021 As per unaudited consolidated Gain As per unaudited consolidated Gain 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 $ 221,207 $ 1,194 $ 170,701 $ 2,418 General and administrative expenses $ 40,434 181 $ 36,499 294 Selling and marketing expenses $ 23,985 15 $ 19,724 15 Depreciation and amortization expense $ 14,075 69 $ 12,310 139 Total before tax 1,459 2,866 Income tax effects on above (420) (427) Net of tax $ 1,039 $ 2,439 Derivatives not designated as hedging instruments Location in unaudited consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 1,423 $ (5,457) $ 1,353 $ (805) $ 1,423 $ (5,457) $ 1,353 $ (805) 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 Six months ended June 30, 2022 2021 As per unaudited consolidated Gain on foreign currency exchange contracts As per unaudited consolidated Gain Cash flow hedging relationships Location in unaudited consolidated statements of income where gain was reclassed from AOCI Cost of revenues $ 428,723 $ 2,777 $ 329,522 $ 4,842 General and administrative expenses $ 80,379 475 $ 67,202 546 Selling and marketing expenses $ 48,155 29 $ 37,959 28 Depreciation and amortization expense $ 27,677 167 $ 24,411 279 Total before tax 3,448 5,695 Income tax effects on above (935) (816) Net of tax $ 2,513 $ 4,879 Derivatives not designated as hedging instruments Location in unaudited consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 3,179 $ (6,356) $ 1,787 $ (589) $ 3,179 $ (6,356) $ 1,787 $ (589) Effect of net investment hedges on accumulated other comprehensive income/(loss): Three months ended June 30, Six months ended June 30, Amount of loss recognized in AOCI Amount of loss recognized in AOCI Net investment hedging relationships 2022 2021 2022 2021 Foreign exchange contracts $ — $ 1,134 $ — $ 1,134 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The following tables summarizes the Company’s debt position: As of June 30, 2022 As of December 31, 2021 Revolving Credit Facility Total Revolving Credit Facility Total Current portion of long-term borrowings $ 35,000 $ 35,000 $ 260,016 $ 260,016 Long-term borrowings 250,000 250,000 — — Total borrowings $ 285,000 $ 285,000 $ 260,016 $ 260,016 Unamortized debt issuance costs for the Company’s revolving Credit Facility of $1,314 and $232 as of June 30, 2022 and December 31, 2021, respectively, are presented under “Other current assets” and “Other assets,” as applicable in the consolidated balance sheets. Credit Agreement The Company held a $300,000 revolving credit facility pursuant to its credit agreement (the “Credit Agreement”), dated as of November 21, 2017 with certain lenders and Citibank N.A. as Administrative Agent (the “Credit Facility”). The Credit Facility had a maturity date of November 21, 2022 and was voluntarily pre-payable from time to time without premium or penalty. On April 18, 2022, the Company and each of the Company’s wholly owned material domestic subsidiaries entered into an Amendment and Restatement Agreement with Citibank, N.A. as Administrative Agent and certain lenders (the “2022 Credit Agreement”), pursuant to which the parties thereto amended and restated the Credit Agreement. Among other things, the 2022 Credit Agreement (a) provides for the issuance of new revolving credit commitments such that the aggregate amount of revolving credit commitments available to the Company is equal to $400,000; (b) extends the maturity date of the Credit Facility from November 21, 2022 to April 18, 2027; and (c) replaces LIBOR with Secured Overnight Financing Rate (“SOFR”) as the reference rate for the U.S. dollar borrowings. The 2022 Credit Agreement provides an option to increase the commitments by up to $200,000, subject to certain approvals and conditions. The 2022 Credit Agreement includes a letter of credit sub facility and is voluntarily pre-payable from time to time without premium or penalty. Borrowings under the 2022 Credit Agreement can be used for working capital and general corporate purposes, including permitted acquisitions. Obligations under the 2022 Credit Agreement are guaranteed by the Company’s material domestic subsidiaries and are secured by all or substantially all of the assets of the Company and our material domestic subsidiaries. The 2022 Credit Agreement contains customary affirmative and negative covenants, including, but not limited to, restrictions on the ability to incur indebtedness, create liens, make certain investments, make certain dividends and related distributions, enter into, or undertake, certain liquidations, mergers, consolidations or acquisitions and dispose of certain assets or subsidiaries. The Credit Facility carried an effective interest rate as shown below: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Effective Interest Rate 2.0 % 1.8 % 1.7 % 1.9 % As of June 30, 2022 and December 31, 2021, 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 (the “Notes”). The Notes carried interest at a rate of 3.5% per annum, payable semi-annually in arrears in cash on April 1 and October 1 of each year. The Notes were convertible at an initial conversion rate of 13.3333 shares of the common stock per one thousand dollar principal amount of the Notes (which represented an initial conversion price of approximately $75 per share). The Company had the option to redeem the principal amount of the Notes, at its option, if the closing sale price of the common stock exceeded 150% of the then-current conversion price for 20 or more trading days in the 30 consecutive trading day period preceding the Company’s exercise of this redemption right (including the trading day immediately prior to the date of the notice of redemption). On August 27, 2021, the Company entered into a Payoff and Termination Agreement with the Purchaser, pursuant to which the Company prepaid and settled its outstanding obligations under the Notes, by electing a combination of cash and shares of the Company’s common stock. During the three and six months ended June 30, 2021, the Company recognized interest expense and amortization of debt discount of $2,003 and $3,989, respectively, on the Notes. Expected payments for all of the Company’s borrowings as of June 30, 2022 were as follows: Revolving Credit Facility Interest Payments* 2022 (July 1 - December 31) $ 25,000 $ 4,273 2023 10,000 7,850 2024 — 7,734 2025 — 7,734 2026 — 7,734 2027 and thereafter 250,000 2,900 Total $ 285,000 $ 38,225 * Interest payments are based on effective interest rate as of June 30, 2022. 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 June 30, 2022 and December 31, 2021, the Company had outstanding letters of credit of $461, each, that were not recognized in the consolidated balance sheets. |
Capital Structure
Capital Structure | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 — $ — $ — Three months ended June 30, 2021 — $ — $ — Six months ended June 30, 2022 27,219 $ 3,191 $ 117.23 Six months ended June 30, 2021 25,450 $ 2,015 $ 79.18 (1) The weighted average purchase price per share is based on the closing price of the Company’s common stock on the Nasdaq Global Select Market on the trading day prior to the applicable vesting date of the shares of restricted stock. 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”). On October 5, 2021, the Company’s Board of Directors authorized a $300,000 common stock repurchase program beginning January 1, 2022 (the “2022 Repurchase Program”), and terminated the 2019 Repurchase Program on December 31, 2021. Under the 2022 Repurchase Program and 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 repurchase programs, as below: Shares repurchased Total consideration Weighted average purchase price per share Three months ended June 30, 2022 205,716 $ 28,806 $ 140.03 Three months ended June 30, 2021 287,044 $ 28,409 $ 98.97 Six months ended June 30, 2022 427,049 $ 57,000 $ 133.47 Six months ended June 30, 2021 600,076 $ 55,409 $ 92.34 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 | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six months ended June 30, 2022 2021 2022 2021 Service cost $ 958 $ 885 $ 1,948 $ 1,774 Interest cost 313 234 636 469 Expected return on plan assets (221) (200) (449) (401) Amortization of actuarial loss, gross of tax 149 176 304 355 Net gratuity cost $ 1,199 $ 1,095 $ 2,439 $ 2,197 Income tax effects on amortization of actuarial loss (45) (71) (92) (122) Amortization of actuarial loss, net of tax $ 104 $ 105 $ 212 $ 233 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 7.2% per annum on the India Plan for the year ended December 31, 2022. Change in Plan Assets Plan assets at January 1, 2022 $ 13,605 Actual return 453 Employer contribution — Benefits paid* (877) Effect of exchange rate changes (785) Plan assets at June 30, 2022 $ 12,396 * Benefits payments were substantially made through the plan assets during the six-months ended June 30, 2022. 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 social security 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 June 30, Six months ended June 30, 2022 2021 2022 2021 Contribution to the 401(k) Plans $ 1,026 $ 753 $ 3,043 $ 2,052 The Company’s contribution for various defined social security contribution plans on behalf of employees in India, the Philippines, the Czech Republic, South Africa, Colombia, Mexico, Australia and Singapore were as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Contributions to the defined social security contribution plans $ 4,549 $ 3,418 $ 8,762 $ 6,712 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
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. The Company recognizes changes to the lease term by remeasuring lease liabilities as of the date of such modification with the resultant 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 June 30, 2022 December 31, 2021 Operating Lease Operating lease right-of-use assets $ 67,962 $ 76,692 Operating lease liabilities - Current $ 18,548 $ 18,487 Operating lease liabilities - Non-current 59,224 68,506 Total operating lease liabilities $ 77,772 $ 86,993 Finance Lease Property and equipment, gross $ 2,432 $ 2,685 Accumulated depreciation (2,063) (2,339) Property and equipment, net $ 369 $ 346 Finance lease liabilities - Current $ 127 $ 141 Finance lease liabilities - Non-current 262 229 Total finance lease liabilities $ 389 $ 370 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 unaudited 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 June 30, Six months ended June 30, Finance lease: 2022 2021 2022 2021 Amortization of right-of-use assets $ 50 $ 50 $ 88 $ 102 Interest on lease liabilities 14 22 28 39 64 72 116 141 Operating lease (a) 5,962 6,871 12,005 13,632 Variable lease costs 1,408 2,053 2,529 3,893 $ 7,370 $ 8,924 $ 14,534 $ 17,525 Total lease cost $ 7,434 $ 8,996 $ 14,650 $ 17,666 (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Six months ended June 30, 2022 2021 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 11,922 $ 13,327 Operating cash outflows for finance leases $ 28 $ 39 Financing cash outflows for finance leases $ 75 $ 107 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,540 $ 1,659 Right-of-use assets obtained in exchange for new finance lease liabilities $ 118 $ 50 Weighted-average remaining lease term (in years) Finance lease 2.5 years 1.8 years Operating lease 5.5 years 5.8 years Weighted-average discount rate Finance lease 14.5 % 14.1 % Operating lease 7.0 % 7.4 % The Company determines the incremental borrowing rate by adjusting the benchmark reference rates, with appropriate financing spreads applicable to the respective geographies where the leases were entered and lease specific adjustments for the effects of collateral. The Company modified certain of its operating leases, resulting in an increase of its lease liabilities by $263 and a decrease of its lease liabilities by $226 during the six months ended June 30, 2022 and 2021, respectively, with a corresponding adjustment to ROU assets. As of June 30, 2022 and December 31, 2021, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company. Maturities of lease liabilities as of June 30, 2022 were as follows: Operating Leases Finance Leases 2022 (July 1 - December 31) $ 11,801 $ 94 2023 22,246 175 2024 17,659 106 2025 11,172 62 2026 8,986 35 2027 and thereafter 24,233 15 Total lease payments $ 96,097 $ 487 Less: Imputed interest 18,325 98 Present value of lease liabilities $ 77,772 $ 389 Maturities of lease liabilities as of December 31, 2021 were as follows: Operating Leases Finance Leases 2022 $ 24,020 $ 185 2023 22,666 147 2024 17,745 72 2025 10,741 34 2026 8,395 17 2027 and thereafter 25,198 — Total lease payments $ 108,765 $ 455 Less: Imputed interest 21,772 85 Present value of lease liabilities $ 86,993 $ 370 |
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. The Company recognizes changes to the lease term by remeasuring lease liabilities as of the date of such modification with the resultant 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 June 30, 2022 December 31, 2021 Operating Lease Operating lease right-of-use assets $ 67,962 $ 76,692 Operating lease liabilities - Current $ 18,548 $ 18,487 Operating lease liabilities - Non-current 59,224 68,506 Total operating lease liabilities $ 77,772 $ 86,993 Finance Lease Property and equipment, gross $ 2,432 $ 2,685 Accumulated depreciation (2,063) (2,339) Property and equipment, net $ 369 $ 346 Finance lease liabilities - Current $ 127 $ 141 Finance lease liabilities - Non-current 262 229 Total finance lease liabilities $ 389 $ 370 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 unaudited 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 June 30, Six months ended June 30, Finance lease: 2022 2021 2022 2021 Amortization of right-of-use assets $ 50 $ 50 $ 88 $ 102 Interest on lease liabilities 14 22 28 39 64 72 116 141 Operating lease (a) 5,962 6,871 12,005 13,632 Variable lease costs 1,408 2,053 2,529 3,893 $ 7,370 $ 8,924 $ 14,534 $ 17,525 Total lease cost $ 7,434 $ 8,996 $ 14,650 $ 17,666 (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Six months ended June 30, 2022 2021 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 11,922 $ 13,327 Operating cash outflows for finance leases $ 28 $ 39 Financing cash outflows for finance leases $ 75 $ 107 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,540 $ 1,659 Right-of-use assets obtained in exchange for new finance lease liabilities $ 118 $ 50 Weighted-average remaining lease term (in years) Finance lease 2.5 years 1.8 years Operating lease 5.5 years 5.8 years Weighted-average discount rate Finance lease 14.5 % 14.1 % Operating lease 7.0 % 7.4 % The Company determines the incremental borrowing rate by adjusting the benchmark reference rates, with appropriate financing spreads applicable to the respective geographies where the leases were entered and lease specific adjustments for the effects of collateral. The Company modified certain of its operating leases, resulting in an increase of its lease liabilities by $263 and a decrease of its lease liabilities by $226 during the six months ended June 30, 2022 and 2021, respectively, with a corresponding adjustment to ROU assets. As of June 30, 2022 and December 31, 2021, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company. Maturities of lease liabilities as of June 30, 2022 were as follows: Operating Leases Finance Leases 2022 (July 1 - December 31) $ 11,801 $ 94 2023 22,246 175 2024 17,659 106 2025 11,172 62 2026 8,986 35 2027 and thereafter 24,233 15 Total lease payments $ 96,097 $ 487 Less: Imputed interest 18,325 98 Present value of lease liabilities $ 77,772 $ 389 Maturities of lease liabilities as of December 31, 2021 were as follows: Operating Leases Finance Leases 2022 $ 24,020 $ 185 2023 22,666 147 2024 17,745 72 2025 10,741 34 2026 8,395 17 2027 and thereafter 25,198 — Total lease payments $ 108,765 $ 455 Less: Imputed interest 21,772 85 Present value of lease liabilities $ 86,993 $ 370 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
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 decreased from 24.0% during the three months ended June 30, 2021 to 23.8% during the three months ended June 30, 2022. The Company recorded income tax expense of $11,125 and $8,865 for the three months ended June 30, 2022 and 2021, respectively. The increase in income tax expense was primarily as a result of higher profit during the three months ended June 30, 2022, compared to the three months ended June 30, 2021. The Company’s effective tax rate increased from 22.9% during the six months ended June 30, 2021 to 23.7% during the six months ended June 30, 2022. The Company recorded income tax expense of $22,327 and $17,823 for the six months ended June 30, 2022 and 2021, respectively. The increase in income tax expense was primarily as a result of higher profit during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, and an increase in non-deductible expenses, partially offset by higher excess tax benefits during the six months ended June 30, 2022. Effective for taxable years beginning after December 31, 2021, Internal Code Section 174, Amortization of Research and Experimental Expenditures , provides that research and experimentation expenses can no longer be currently deducted, and instead are required to be capitalized. Such capitalized expenses are to be amortized over a period of five and fifteen years for the U.S. and foreign research, respectively. Although this change has no impact on the income statement due to offsetting current tax expense with corresponding deferred tax benefit, the change has resulted in an increase of $13,929 in the current tax liability and deferred tax asset balances, presented under “Income taxes payable, net” and “Deferred tax assets, net,” respectively, in the unaudited consolidated balance sheets as of June 30, 2022. Income tax (deferred) recognized in AOCI were as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Deferred taxes benefit / (expense) recognized on: Unrealized loss on cash flow hedges $ 2,801 $ 177 $ 2,798 $ (221) Reclassification adjustment for cash flow hedges 420 427 935 816 Reclassification adjustment for retirement benefits (45) (71) (92) (122) Foreign currency translation loss 480 945 979 1,229 Total income tax benefit recognized in AOCI $ 3,656 $ 1,478 $ 4,620 $ 1,702 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six months ended June 30, 2022 2021 2022 2021 Cost of revenues $ 3,131 $ 1,854 $ 5,772 $ 3,390 General and administrative expenses 5,305 4,608 9,700 7,906 Selling and marketing expenses 4,904 3,608 9,092 6,606 Total $ 13,340 $ 10,070 $ 24,564 $ 17,902 Income tax benefit related to share-based compensation, including excess tax benefits $ 3,216 $ 2,074 $ 6,022 $ 4,432 As of June 30, 2022, the Company had 1,250,148 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, 2021 3,093 $ 27.62 $ 362 2.0 Granted — — — — Exercised — — — — Forfeited — — — — Outstanding at June 30, 2022 3,093 $ 27.62 $ 370 1.5 Vested and exercisable at June 30, 2022 3,093 $ 27.62 $ 370 1.5 Share Matching Program Under the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”), the Company established a share matching program (“SMP”) for executive officers and other specified employees. Under the SMP, the Company agreed to issue a number of restricted stock units equal to the number of newly acquired shares of the Company's common stock. For purposes of the match, “newly acquired shares” includes the employee’s open market purchase of the common stock and crediting of equity awards vesting under any existing stock award plan of the Company as having been purchased by such employees, in an amount between $100 to $500 per such employee. The matching restricted stock units granted under the SMP will vest in two installments, with one-third to vest on the second anniversary of the grant date and the remaining two-thirds to vest on the third anniversary of the grant date; the newly acquired shares for which the matching restricted stock units were granted must also be held by the employee until such vesting dates. The Company’s underlying common stock issued pursuant to the vesting of the matching restricted stock units will not be marketable or transferable for a period of two years following the vesting date. Certain forfeiture and other conditions apply. During the six months ended June 30, 2022, the Company granted 52,636 matching restricted stock units under the SMP. Restricted Stock Units Restricted stock unit activity under the Company’s stock-based compensation plans is shown below: Restricted Stock Units (Others) Restricted Stock Units (SMP) Number Weighted-Average Number Weighted-Average Outstanding at December 31, 2021* 982,187 $ 81.61 — $ — Granted 349,748 120.49 52,636 124.76 Vested (298,830) 73.89 — — Forfeited (35,723) 95.11 — — Outstanding at June 30, 2022* 997,382 $ 97.08 52,636 $ 124.76 * As of June 30, 2022 and December 31, 2021 restricted stock units vested for which the underlying common stock is yet to be issued are 174,490 and 162,481 respectively. As of June 30, 2022, unrecognized compensation cost of $85,851 is expected to be expensed over a weighted average period of 2.7 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 six months ended June 30, 2022, the Company granted 40% of each award recipient’s equity grants in the form of PRSUs that cliff vest at the end of a three-year period based on an aggregated revenue target for a three year period. The remaining 60% of each award recipient’s equity grants are PRSUs that are 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. However, the features of the equity incentive compensation program are subject to change by the Compensation Committee of our Board of Directors. The award recipient may earn up to two hundred percent (200%) of the PRSUs granted based on the actual achievement of targets. 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, 2021 58,864 $ 78.29 172,042 $ 113.74 Granted 52,702 119.98 79,001 155.67 Vested — — — — Forfeited (352) 119.98 (528) 155.67 Outstanding at June 30, 2022 111,214 $ 97.91 250,515 $ 126.88 As of June 30, 2022, unrecognized compensation cost of $29,712 is expected to be expensed over a weighted average period of 2.2 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. Employee Stock Purchase Plan On June 21, 2022, at the annual meeting of stockholders of the Company, the Company’s stockholders approved the ExlService Holdings, Inc. 2022 Employee Stock Purchase Plan (the “2022 ESPP”). The 2022 ESPP was approved, subject to stockholder approval, by the board of directors of the Company on April 13, 2022. The 2022 ESPP allows eligible employees to purchase the Company’s shares of common stock through payroll deductions at a pre-specified discount to the lower of closing price of the Company’s common shares on the date of offering or the last business day of each purchase interval. The dollar amount of shares of common stock that can be purchased under the 2022 ESPP must not exceed 15% of the participating employee’s compensation during the offering period, subject to a cap of $25 per employee per calendar year. The first offering period under the 2022 ESPP is expected to occur in the fourth quarter of 2022. The Company has registered 800,000 shares of common stock to be reserved for issuance over the term of the 2022 ESPP. |
Related Party Disclosures
Related Party Disclosures | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | Related Party DisclosuresIn April 2022, the Company entered into a service contract for providing analytics services to The Vanguard Group Inc. which beneficially owns more than 10% of the Company’s common stock as of June 30, 2022. During the three and six month periods ended June 30, 2022, the Company recognized revenues, net of $574 related to this service contract. The Company had outstanding accounts receivable, net of $574 related to this service contract as of June 30, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital Commitments At June 30, 2022, the Company had committed to spend approximately $5,600 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 “Capital work in progress” under “Property and equipment, net.” 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 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 investment criteria and certain other criteria, including but not limited to work-from-office norms, etc. The Company believes that these centers have in the past complied with the requirements. Contingencies Transfer pricing regulations generally require that any controlled intercompany transactions involving related entities be at an arm’s-length price. Accordingly, the Company determines the appropriate transfer prices for transactions among its related entities on the basis of a detailed functional and economic analysis involving benchmarking against transactions among unrelated entities. Tax authorities have jurisdiction to review transfer pricing results, and in the event that they determine that the transfer price applied was not appropriate, the Company may incur additional tax, interest and penalties. The Company is currently involved in transfer pricing disputes with Indian tax authorities regarding transactions with some of its related entities. In addition, the Company and a U.S. subsidiary are engaged in tax litigation with Indian tax authorities regarding a permanent establishment matter. The aggregate amount demanded by Indian tax authorities (net of advance payments) from the Company related to its transfer pricing and other corporate tax issues for tax years 2003 to 2019 and its permanent establishment issues for tax years 2003 to 2006 as of June 30, 2022 and December 31, 2021 is $29,474 and $34,276, respectively. The Company has made payments and/or provided bank guarantees against these demands in the amounts of $7,889 and $7,954, respectively. Amounts paid as deposits in respect of such assessments aggregating to $6,212 and $6,172 as of June 30, 2022 and December 31, 2021, respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $1,677 and $1,782 as of June 30, 2022 and December 31, 2021, 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 consolidated financial statements. 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. India’s Value Added Tax (“VAT”) regime ended in June 2017 and was replaced by the current Goods and Service Tax (“GST”) regime. Pursuant to reviewing the Company’s annual VAT filings, the Indian tax authorities raised aggregate VAT tax demands for tax years 2015 and 2017 in an amount of $5,788 and $6,387 as of June 30, 2022 and December 31, 2021, respectively. Beginning in the first quarter of 2020, the GST authorities rejected the Company’s refunds claims in an amount of $3,655 and $3,322 as of June 30, 2022 and December 31, 2021, respectively. The Company has filed appeals against these matters and believes that it is more likely than not that upon final examination its position will be sustained based on its technical merits. Accordingly, no provision was recognized as of June 30, 2022 and December 31, 2021. One of the Company’s subsidiaries in India is undergoing an assessment with the statutory authority with respect to defined social security contribution plan. The Company believes that the amount demanded by such authority is not meaningful indicator of the potential liabilities of the Company, and that the matter is without merit, and the Company intends to vigorously defend against it. As of the reporting date, 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 in this ongoing matter. The Company will continue to monitor and evaluate its position based on future events and developments in this matter for implications on the Company’s financial statements, if any. The Company’s management does not believe that any ultimate assessment will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. 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, its subsidiaries, and/or their 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) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021. |
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. |
Investments | Investments The Company’s short-term investments consist of investments in mutual funds and those term deposits with more than three months of original maturity and less than twelve months of remaining maturity as of the reporting date, while long-term investments consist of term deposits with more than twelve months of remaining maturity as of the reporting date. The Company’s investments in term deposits with financial institutions are measured and recognized at cost and approximate fair value. Interest earned on such investments is included in interest income. The Company’s mutual fund investments are in debt funds invested in India. These investments are accounted for in accordance with the fair value option under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments , (“Topic 825”). The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period and any changes in fair value are included in other income/(loss), net. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in other income/(loss), net. |
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, estimates of the fair value of the identifiable intangible assets and contingent consideration, purchase price allocation, including revenue projections and discount rate applied within the discounted cash flow model for business acquisitions, 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, and recoverability of long-lived assets, goodwill and intangibles. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, FASB issued Accounting Standard Update (“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 October 2021, FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU provides guidance in Topic 805 to require the acquirer entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers, as if it had originated the contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements, if the acquiree prepared financial statements in accordance with U.S. GAAP. The ASU is effective for fiscal years beginning after December 15, 2022. An entity may early adopt the ASU including adoption in an interim period, with retrospective application to all business combinations within the fiscal year that includes such interim period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Revenues and Cost of Revenues for Company's Reportable Segments | Revenues and cost of revenues for the three months ended June 30, 2022 and 2021, respectively, for each of the reportable segments, are as follows: Three months ended June 30, 2022 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 108,557 $ 23,051 $ 53,873 $ 161,301 $ 346,782 Cost of revenues (1) 70,645 17,694 31,214 101,654 221,207 Gross profit (1) $ 37,912 $ 5,357 $ 22,659 $ 59,647 $ 125,575 Operating expenses 78,494 Foreign exchange gain, interest expense and other loss, net (253) Income tax expense 11,125 Gain from equity-method investment 143 Net income $ 35,846 (1) Exclusive of depreciation and amortization expense. Three months ended June 30, 2021 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 94,719 $ 28,250 $ 40,690 $ 111,405 $ 275,064 Cost of revenues (1) 59,359 17,685 22,346 71,311 170,701 Gross profit (1) $ 35,360 $ 10,565 $ 18,344 $ 40,094 $ 104,363 Operating expenses 68,533 Foreign exchange gain, interest expense and other income, net 1,048 Income tax expense 8,865 Gain from equity-method investment 8 Net income $ 28,021 (1) Exclusive of depreciation and amortization expense. Revenues and cost of revenues for the six months ended June 30, 2022 and 2021, respectively, for each of the reportable segments, are as follows: Six months ended June 30, 2022 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 211,823 $ 49,207 $ 104,620 $ 310,340 $ 675,990 Cost of revenues (1) 135,727 35,345 60,427 197,224 428,723 Gross profit (1) $ 76,096 $ 13,862 $ 44,193 $ 113,116 $ 247,267 Operating expenses 156,211 Foreign exchange gain, interest expense and other income, net 3,038 Income tax expense 22,327 Gain from equity-method investment 257 Net income $ 72,024 (1) Exclusive of depreciation and amortization expense. Six months ended June 30, 2021 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 185,879 $ 58,515 $ 78,358 $ 213,727 $ 536,479 Cost of revenues (1) 115,452 35,076 43,190 135,804 329,522 Gross profit (1) $ 70,427 $ 23,439 $ 35,168 $ 77,923 $ 206,957 Operating expenses 129,572 Foreign exchange gain, interest expense and other income, net 418 Income tax expense 17,823 Loss from equity-method investment 28 Net income $ 59,952 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Digital operations and solutions (1) $ 185,481 $ 163,659 $ 365,650 $ 322,752 Analytics services 161,301 111,405 310,340 213,727 Revenues, net $ 346,782 $ 275,064 $ 675,990 $ 536,479 (1) Digital operations and solutions 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 June 30, Six months ended June 30, 2022 2021 2022 2021 Revenues, net United States $ 298,520 $ 235,288 $ 580,899 $ 459,656 Non-United States United Kingdom 32,090 26,175 64,863 50,926 Rest of World 16,172 13,601 30,228 25,897 Total Non-United States 48,262 39,776 95,091 76,823 Revenues, net $ 346,782 $ 275,064 $ 675,990 $ 536,479 |
Long-lived Assets 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 June 30, 2022 December 31, 2021 Long-lived assets India $ 65,899 $ 79,604 United States 54,085 50,095 Philippines 20,921 22,011 Rest of World 9,706 10,990 Long-lived assets $ 150,611 $ 162,700 |
Revenues, net (Tables)
Revenues, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contracts with Customer, Receivables, Liabilities and Revenue Recognized | The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers: As of June 30, 2022 December 31, 2021 Accounts receivable, net $ 237,453 $ 194,232 Contract assets $ 1,648 $ 2,524 Contract liabilities: Deferred revenue (consideration received in advance) $ 18,617 $ 18,247 Consideration received for process transition activities $ 4,327 $ 2,203 Revenue recognized during the three and six months ended June 30, 2022 and 2021, which was included in the contract liabilities balance at the beginning of the respective periods: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Deferred revenue (consideration received in advance) $ 4,306 $ 3,332 $ 13,870 $ 26,953 Consideration received for process transition activities $ 298 $ 508 $ 664 $ 1,187 |
Contract Acquisition and Fulfillment Costs | The following table provides details of the Company’s contract acquisition and fulfillment costs: Contract Acquisition Costs Three months ended Six months ended Year ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 December 31, 2021 Opening Balance $ 927 $ 785 $ 511 $ 1,027 $ 1,027 Additions 180 374 727 374 277 Amortization (124) (292) (255) (534) (793) Closing Balance $ 983 $ 867 $ 983 $ 867 $ 511 Contract Fulfillment Costs Three months ended Six months ended Year ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 December 31, 2021 Opening Balance $ 7,435 $ 4,419 $ 5,795 $ 5,631 $ 5,631 Additions 3,308 158 5,485 164 3,742 Amortization (576) (883) (1,113) (2,101) (3,578) Closing Balance $ 10,167 $ 3,694 $ 10,167 $ 3,694 $ 5,795 |
Movement in Allowance for Expected Credit Loss | As of June 30, 2022 December 31, 2021 Accounts receivable, including unbilled receivables $ 238,297 $ 194,805 Less: Allowance for expected credit losses (844) (573) Accounts receivable, net $ 237,453 $ 194,232 The movement in “Allowance for expected credit losses” on customer balances was as follows: Three months ended Six months ended Year ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 December 31, 2021 Balance at the beginning of the period $ 588 $ 1,183 $ 573 $ 1,189 $ 1,189 Additions / (reductions) during the period 571 (445) 743 (395) (496) Reductions due to write-off of Accounts Receivables (314) (13) (472) (73) (129) Translation adjustment (1) 5 — 9 9 Balance at the end of the period $ 844 $ 730 $ 844 $ 730 $ 573 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six months ended June 30, 2022 2021 2022 2021 Numerators: Net income $ 35,846 $ 28,021 $ 72,024 $ 59,952 Denominators: Basic weighted average common shares outstanding 33,403,411 33,571,074 33,422,618 33,652,146 Dilutive effect of share-based awards 427,128 330,063 439,979 336,528 Dilutive effect of conversion premium on the Notes — 488,631 — 364,919 Diluted weighted average common shares outstanding 33,830,539 34,389,768 33,862,597 34,353,593 Earnings per share attributable to ExlService Holdings Inc. stockholders: Basic $ 1.07 $ 0.83 $ 2.15 $ 1.78 Diluted $ 1.06 $ 0.81 $ 2.13 $ 1.75 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 0 1,748 541 874 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | For the purposes of the unaudited statements of cash flows, cash, cash equivalents and restricted cash comprise of the following: As of June 30, 2022 June 30, 2021 December 31, 2021 Cash and cash equivalents $ 106,304 $ 150,211 $ 135,337 Restricted cash (current) 6,840 5,065 6,174 Restricted cash (non-current) 2,056 2,260 2,299 Cash, cash equivalents and restricted cash $ 115,200 $ 157,536 $ 143,810 |
Restrictions on Cash and Cash Equivalents | For the purposes of the unaudited statements of cash flows, cash, cash equivalents and restricted cash comprise of the following: As of June 30, 2022 June 30, 2021 December 31, 2021 Cash and cash equivalents $ 106,304 $ 150,211 $ 135,337 Restricted cash (current) 6,840 5,065 6,174 Restricted cash (non-current) 2,056 2,260 2,299 Cash, cash equivalents and restricted cash $ 115,200 $ 157,536 $ 143,810 |
Other Income_(Loss), net (Table
Other Income/(Loss), net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Summary of Other Income/(Loss), net | Other income/(loss), net consists of the following: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Gain on sale and mark-to-market of mutual funds and money market funds $ 634 $ 1,655 $ 1,870 $ 2,758 Interest and dividend income 847 689 2,217 1,291 Others, net (1,655) (129) (1,850) (424) Other income/(loss), net $ (174) $ 2,215 $ 2,237 $ 3,625 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consists of the following: Estimated useful lives As of (Years) June 30, 2022 December 31, 2021 Owned Assets: Network equipment and computers 3-5 $ 123,117 $ 116,023 Software 2-5 105,924 101,884 Leasehold improvements 3-8 44,448 46,401 Office furniture and equipment 3-8 20,892 22,302 Motor vehicles 2-5 595 693 Buildings 30 1,007 1,070 Land — 659 700 Capital work in progress — 8,508 10,288 305,150 299,361 Less: Accumulated depreciation and amortization (222,870) (213,699) $ 82,280 $ 85,662 Right-of-use assets under finance leases:* Network equipment and computers $ 86 $ 91 Leasehold improvements 1,061 1,229 Office furniture and equipment 685 787 Motor vehicles 600 578 2,432 2,685 Less: Accumulated depreciation and amortization (2,063) (2,339) $ 369 $ 346 Property and equipment, net $ 82,649 $ 86,008 *Depreciation on assets held under finance leases are computed using the straight-line method over the shorter of the assets estimated useful lives or the lease term. 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 June 30, Six months ended June 30, 2022 2021 2022 2021 Depreciation and amortization expense $ 9,929 $ 8,913 $ 19,045 $ 17,653 The effect of foreign exchange gain/(loss) upon settlement of cash flow hedges recorded under depreciation and amortization, was as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Effect of foreign exchange gain/(loss) $ (5) $ 158 $ 62 $ 323 Internally developed software costs, included under Software, was as follows: As of June 30, 2022 December 31, 2021 Cost $ 27,015 $ 19,289 Less : Accumulated amortization (12,788) (10,226) Internally developed software, net $ 14,227 $ 9,063 The amortization expense on internally developed software recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Amortization expense $ 1,549 $ 1,055 $ 2,582 $ 2,079 |
Business Combination, Goodwil_2
Business Combination, Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Assets and Liabilities Acquired | The tables below presents the fair value of the consideration exchanged and the allocation of purchase consideration to the major classes of assets and liabilities of Clairvoyant as of December 16, 2021: Assets: Cash and cash equivalents $ 5,598 Accounts receivable, net 8,709 Other current assets 360 Property and equipment, net 398 Intangible assets, net Customer relationships 31,600 Developed technology 2,070 Trade names and trademarks 300 Non-compete agreements 300 Other assets 217 Total assets $ 49,552 Liabilities: Accounts payable $ (1,199) Accrued expenses and other current liabilities (4,873) Deferred tax liabilities (9,383) Other non-current liabilities (1,226) Total liabilities (16,681) Net assets acquired 32,871 Goodwill 57,454 Total purchase consideration* $ 90,325 * Includes contingent consideration of $9,000 recognized at fair value as of the date of acquisition . |
Schedule of Goodwill | The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare Emerging Business Analytics Total Balance at January 1, 2022 $ 50,428 $ 21,942 $ 49,020 $ 282,512 $ 403,902 Acquisition — — — 1,992 1,992 Measurement period adjustments — — — 2,229 2,229 Currency translation adjustments (399) (39) (1,109) (1) (1,548) Balance at June 30, 2022 $ 50,029 $ 21,903 $ 47,911 $ 286,732 $ 406,575 |
Schedule of Indefinite Lived Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of June 30, 2022 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 99,146 $ (34,139) $ 65,007 Developed technology 24,878 (18,326) 6,552 Trade names and trademarks 1,700 (1,157) 543 Non-compete agreements 336 (40) 296 $ 126,060 $ (53,662) $ 72,398 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 126,960 $ (53,662) $ 73,298 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Finite-lived intangible assets: Customer relationships $ 103,016 $ (33,018) $ 69,998 Developed technology 25,040 (15,850) 9,190 Trade names and trademarks 1,700 (1,006) 694 Non-compete agreements 300 — 300 $ 130,056 $ (49,874) $ 80,182 Indefinite-lived intangible assets: Trade names and trademarks $ 900 $ — $ 900 Total intangible assets $ 130,956 $ (49,874) $ 81,082 |
Schedule of Amortization of Intangible Assets | The amortization expense recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Amortization expense $ 4,146 $ 3,397 $ 8,632 $ 6,758 |
Schedule of Finite Lived Intangible Assets Useful Lives | The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 6.0 Developed technology 1.6 Trade names and trademarks (Finite lived) 2.0 Non-compete agreements 3.3 |
Schedule of Estimated Future Amortization of Intangible Assets | Estimated future amortization expense related to finite-lived intangible assets as of June 30, 2022 was as follows: 2022 (July 1 - December 31) $ 8,445 2023 14,595 2024 12,084 2025 10,648 2026 10,313 2027 and thereafter 16,313 Total $ 72,398 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following: As of June 30, 2022 December 31, 2021 Receivables from statutory authorities $ 13,299 $ 18,023 Derivative instruments 2,865 8,682 Advances to suppliers 2,172 1,464 Deferred contract fulfillment costs 1,315 1,483 Contract assets 872 1,319 Interest accrued on term deposits 645 892 Others 1,975 2,146 Other current assets $ 23,143 $ 34,009 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: As of June 30, 2022 December 31, 2021 Long-term investments $ 22,997 $ 186 Lease deposits 9,251 9,649 Deferred contract fulfillment costs 8,852 4,312 Deposits with statutory authorities 6,516 6,417 Derivative instruments 1,043 6,307 Contract assets 776 1,205 Receivable from Statutory authorities 225 222 Others 3,535 2,071 Other assets $ 53,195 $ 30,369 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of June 30, 2022 December 31, 2021 Accrued expenses $ 47,611 $ 44,405 Payable to statutory authorities 15,032 13,902 Derivative instruments 6,617 1,852 Client liabilities 6,461 6,097 Contingent consideration 5,280 — Accrued capital expenditures 2,277 8,630 Interest payable 282 252 Finance lease liabilities 127 141 Other current liabilities 5,343 1,071 Accrued expenses and other current liabilities $ 89,030 $ 76,350 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Liabilities, Noncurrent [Abstract] | |
Summary of Other Non-Current Liabilities | Other non-current liabilities consist of the following: As of June 30, 2022 December 31, 2021 Retirement benefits $ 11,029 $ 9,604 Contingent consideration 6,159 9,000 Derivative instruments 3,978 1,785 Unrecognized tax benefits 2,142 1,068 Deferred transition revenue 2,957 995 Finance lease liabilities 262 229 Others 885 120 Other non-current liabilities $ 27,412 $ 22,801 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The balances as of June 30, 2022 and 2021 are as follows: Accumulated Other Comprehensive Income/(Loss) Foreign currency translation loss Unrealized gain/(loss) on cash flow hedges Retirement benefits Total Balance as of January 1, 2022 $ (95,437) $ 8,420 $ (2,457) $ (89,474) Losses recognized during the period (30,227) (15,149) — (45,376) Reclassification to net income (1) — (3,448) 304 (3,144) Income tax effects (2) 979 3,733 (92) 4,620 Accumulated other comprehensive income/(loss) as of June 30, 2022 $ (124,685) $ (6,444) $ (2,245) $ (133,374) Balance as of January 1, 2021 $ (86,185) $ 13,799 $ (2,598) $ (74,984) Losses recognized during the period (6,686) (303) — (6,989) Losses on net investment hedges (1,134) — — (1,134) Reclassification to net income (1) — (5,695) 355 (5,340) Income tax effects (2) 1,229 595 (122) 1,702 Accumulated other comprehensive income/(loss) as of June 30, 2021 $ (92,776) $ 8,396 $ (2,365) $ (86,745) (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 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 (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021: Quoted Prices Significant Significant As of June 30, 2022 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 332 $ — $ — $ 332 Mutual funds** 107,425 — — 107,425 Derivative financial instruments — 3,908 — 3,908 Total $ 107,757 $ 3,908 $ — $ 111,665 Liabilities Derivative financial instruments $ — $ 10,595 $ — $ 10,595 Contingent consideration*** — — 11,439 11,439 Total $ — $ 10,595 $ 11,439 $ 22,034 Quoted Prices Significant Significant As of December 31, 2021 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 5,374 $ — $ — $ 5,374 Mutual funds** 127,551 — — 127,551 Derivative financial instruments — 14,989 — 14,989 Total $ 132,925 $ 14,989 $ — $ 147,914 Liabilities Derivative financial instruments $ — $ 3,637 $ — $ 3,637 Contingent consideration*** — — 9,000 9,000 Total $ — $ 3,637 $ 9,000 $ 12,637 * Represents money market funds which are carried at the fair value option under ASC 825 “Financial Instruments”. ** Represents those short-term investments which are carried at the fair value option under ASC 825 “Financial Instruments”. *** Contingent consideration is presented under “Accrued Expenses and Other Current Liabilities” and “Other Non-Current Liabilities,” as applicable, in the consolidated balance sheets. |
Derivatives and Hedge Account_2
Derivatives and Hedge Accounting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 December 31, 2021 Other current assets $ 2,727 $ 8,669 Other assets $ 1,043 $ 6,307 Accrued expenses and other current liabilities $ 6,522 $ 1,324 Other non-current liabilities $ 3,978 $ 1,785 Derivatives not designated as hedging instruments: As of Foreign currency exchange contracts June 30, 2022 December 31, 2021 Other current assets $ 138 $ 13 Accrued expenses and other current liabilities $ 95 $ 528 |
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 accumulated other comprehensive income/(loss) and the unaudited consolidated statements of income for the three and six months ended June 30, 2022 and 2021: Three months ended June 30, Six months ended June 30, Forward Exchange Contracts: 2022 2021 2022 2021 Unrealized loss recognized in AOCI Derivatives in cash flow hedging relationships $ (14,632) $ (871) $ (15,149) $ (303) Loss recognized in unaudited consolidated statements of income Derivatives not designated as hedging instruments $ (5,457) $ (805) $ (6,356) $ (589) 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 June 30, 2022 2021 As per unaudited consolidated Gain As per unaudited consolidated Gain 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 $ 221,207 $ 1,194 $ 170,701 $ 2,418 General and administrative expenses $ 40,434 181 $ 36,499 294 Selling and marketing expenses $ 23,985 15 $ 19,724 15 Depreciation and amortization expense $ 14,075 69 $ 12,310 139 Total before tax 1,459 2,866 Income tax effects on above (420) (427) Net of tax $ 1,039 $ 2,439 Derivatives not designated as hedging instruments Location in unaudited consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 1,423 $ (5,457) $ 1,353 $ (805) $ 1,423 $ (5,457) $ 1,353 $ (805) 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 Six months ended June 30, 2022 2021 As per unaudited consolidated Gain on foreign currency exchange contracts As per unaudited consolidated Gain Cash flow hedging relationships Location in unaudited consolidated statements of income where gain was reclassed from AOCI Cost of revenues $ 428,723 $ 2,777 $ 329,522 $ 4,842 General and administrative expenses $ 80,379 475 $ 67,202 546 Selling and marketing expenses $ 48,155 29 $ 37,959 28 Depreciation and amortization expense $ 27,677 167 $ 24,411 279 Total before tax 3,448 5,695 Income tax effects on above (935) (816) Net of tax $ 2,513 $ 4,879 Derivatives not designated as hedging instruments Location in unaudited consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 3,179 $ (6,356) $ 1,787 $ (589) $ 3,179 $ (6,356) $ 1,787 $ (589) |
Summary of Effect of Net Investment Hedges on Accumulated Other Comprehensive Loss | Effect of net investment hedges on accumulated other comprehensive income/(loss): Three months ended June 30, Six months ended June 30, Amount of loss recognized in AOCI Amount of loss recognized in AOCI Net investment hedging relationships 2022 2021 2022 2021 Foreign exchange contracts $ — $ 1,134 $ — $ 1,134 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Debt Position | The following tables summarizes the Company’s debt position: As of June 30, 2022 As of December 31, 2021 Revolving Credit Facility Total Revolving Credit Facility Total Current portion of long-term borrowings $ 35,000 $ 35,000 $ 260,016 $ 260,016 Long-term borrowings 250,000 250,000 — — Total borrowings $ 285,000 $ 285,000 $ 260,016 $ 260,016 |
Schedule of Credit Facilities Carried an Effective Interest Rate | The Credit Facility carried an effective interest rate as shown below: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Effective Interest Rate 2.0 % 1.8 % 1.7 % 1.9 % |
Schedule of Maturities of Long-term Debt | Expected payments for all of the Company’s borrowings as of June 30, 2022 were as follows: Revolving Credit Facility Interest Payments* 2022 (July 1 - December 31) $ 25,000 $ 4,273 2023 10,000 7,850 2024 — 7,734 2025 — 7,734 2026 — 7,734 2027 and thereafter 250,000 2,900 Total $ 285,000 $ 38,225 * Interest payments are based on effective interest rate as of June 30, 2022. |
Capital Structure (Tables)
Capital Structure (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 — $ — $ — Three months ended June 30, 2021 — $ — $ — Six months ended June 30, 2022 27,219 $ 3,191 $ 117.23 Six months ended June 30, 2021 25,450 $ 2,015 $ 79.18 (1) The weighted average purchase price per share is based on the closing price of the Company’s common stock on the Nasdaq Global Select Market on the trading day prior to the applicable vesting date of the shares of restricted stock. |
Summary of Company's Purchased Shares of its Common Stock, Including Commissions | The Company purchased shares of its common stock, including commissions, under repurchase programs, as below: Shares repurchased Total consideration Weighted average purchase price per share Three months ended June 30, 2022 205,716 $ 28,806 $ 140.03 Three months ended June 30, 2021 287,044 $ 28,409 $ 98.97 Six months ended June 30, 2022 427,049 $ 57,000 $ 133.47 Six months ended June 30, 2021 600,076 $ 55,409 $ 92.34 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit costs, were as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Service cost $ 958 $ 885 $ 1,948 $ 1,774 Interest cost 313 234 636 469 Expected return on plan assets (221) (200) (449) (401) Amortization of actuarial loss, gross of tax 149 176 304 355 Net gratuity cost $ 1,199 $ 1,095 $ 2,439 $ 2,197 Income tax effects on amortization of actuarial loss (45) (71) (92) (122) Amortization of actuarial loss, net of tax $ 104 $ 105 $ 212 $ 233 |
Change in Plan Assets | Change in Plan Assets Plan assets at January 1, 2022 $ 13,605 Actual return 453 Employer contribution — Benefits paid* (877) Effect of exchange rate changes (785) Plan assets at June 30, 2022 $ 12,396 * Benefits payments were substantially made through the plan assets during the six-months ended June 30, 2022. |
Schedule of Company's Contribution Plan | The Company’s accrual for contributions to the 401(k) Plans were as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Contribution to the 401(k) Plans $ 1,026 $ 753 $ 3,043 $ 2,052 The Company’s contribution for various defined social security contribution plans on behalf of employees in India, the Philippines, the Czech Republic, South Africa, Colombia, Mexico, Australia and Singapore were as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Contributions to the defined social security contribution plans $ 4,549 $ 3,418 $ 8,762 $ 6,712 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information As of June 30, 2022 December 31, 2021 Operating Lease Operating lease right-of-use assets $ 67,962 $ 76,692 Operating lease liabilities - Current $ 18,548 $ 18,487 Operating lease liabilities - Non-current 59,224 68,506 Total operating lease liabilities $ 77,772 $ 86,993 Finance Lease Property and equipment, gross $ 2,432 $ 2,685 Accumulated depreciation (2,063) (2,339) Property and equipment, net $ 369 $ 346 Finance lease liabilities - Current $ 127 $ 141 Finance lease liabilities - Non-current 262 229 Total finance lease liabilities $ 389 $ 370 |
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 June 30, Six months ended June 30, Finance lease: 2022 2021 2022 2021 Amortization of right-of-use assets $ 50 $ 50 $ 88 $ 102 Interest on lease liabilities 14 22 28 39 64 72 116 141 Operating lease (a) 5,962 6,871 12,005 13,632 Variable lease costs 1,408 2,053 2,529 3,893 $ 7,370 $ 8,924 $ 14,534 $ 17,525 Total lease cost $ 7,434 $ 8,996 $ 14,650 $ 17,666 (a) Includes short-term leases, which are immaterial. |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow and other information related to leases are as follows: Six months ended June 30, 2022 2021 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 11,922 $ 13,327 Operating cash outflows for finance leases $ 28 $ 39 Financing cash outflows for finance leases $ 75 $ 107 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,540 $ 1,659 Right-of-use assets obtained in exchange for new finance lease liabilities $ 118 $ 50 Weighted-average remaining lease term (in years) Finance lease 2.5 years 1.8 years Operating lease 5.5 years 5.8 years Weighted-average discount rate Finance lease 14.5 % 14.1 % Operating lease 7.0 % 7.4 % |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities as of June 30, 2022 were as follows: Operating Leases Finance Leases 2022 (July 1 - December 31) $ 11,801 $ 94 2023 22,246 175 2024 17,659 106 2025 11,172 62 2026 8,986 35 2027 and thereafter 24,233 15 Total lease payments $ 96,097 $ 487 Less: Imputed interest 18,325 98 Present value of lease liabilities $ 77,772 $ 389 Maturities of lease liabilities as of December 31, 2021 were as follows: Operating Leases Finance Leases 2022 $ 24,020 $ 185 2023 22,666 147 2024 17,745 72 2025 10,741 34 2026 8,395 17 2027 and thereafter 25,198 — Total lease payments $ 108,765 $ 455 Less: Imputed interest 21,772 85 Present value of lease liabilities $ 86,993 $ 370 |
Schedule of Maturities of Finance Lease Liabilities | Maturities of lease liabilities as of June 30, 2022 were as follows: Operating Leases Finance Leases 2022 (July 1 - December 31) $ 11,801 $ 94 2023 22,246 175 2024 17,659 106 2025 11,172 62 2026 8,986 35 2027 and thereafter 24,233 15 Total lease payments $ 96,097 $ 487 Less: Imputed interest 18,325 98 Present value of lease liabilities $ 77,772 $ 389 Maturities of lease liabilities as of December 31, 2021 were as follows: Operating Leases Finance Leases 2022 $ 24,020 $ 185 2023 22,666 147 2024 17,745 72 2025 10,741 34 2026 8,395 17 2027 and thereafter 25,198 — Total lease payments $ 108,765 $ 455 Less: Imputed interest 21,772 85 Present value of lease liabilities $ 86,993 $ 370 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax (Deferred) Recognized in Other Comprehensive Income | Income tax (deferred) recognized in AOCI were as follows: Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Deferred taxes benefit / (expense) recognized on: Unrealized loss on cash flow hedges $ 2,801 $ 177 $ 2,798 $ (221) Reclassification adjustment for cash flow hedges 420 427 935 816 Reclassification adjustment for retirement benefits (45) (71) (92) (122) Foreign currency translation loss 480 945 979 1,229 Total income tax benefit recognized in AOCI $ 3,656 $ 1,478 $ 4,620 $ 1,702 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six months ended June 30, 2022 2021 2022 2021 Cost of revenues $ 3,131 $ 1,854 $ 5,772 $ 3,390 General and administrative expenses 5,305 4,608 9,700 7,906 Selling and marketing expenses 4,904 3,608 9,092 6,606 Total $ 13,340 $ 10,070 $ 24,564 $ 17,902 Income tax benefit related to share-based compensation, including excess tax benefits $ 3,216 $ 2,074 $ 6,022 $ 4,432 |
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, 2021 3,093 $ 27.62 $ 362 2.0 Granted — — — — Exercised — — — — Forfeited — — — — Outstanding at June 30, 2022 3,093 $ 27.62 $ 370 1.5 Vested and exercisable at June 30, 2022 3,093 $ 27.62 $ 370 1.5 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity under the Company’s stock-based compensation plans is shown below: Restricted Stock Units (Others) Restricted Stock Units (SMP) Number Weighted-Average Number Weighted-Average Outstanding at December 31, 2021* 982,187 $ 81.61 — $ — Granted 349,748 120.49 52,636 124.76 Vested (298,830) 73.89 — — Forfeited (35,723) 95.11 — — Outstanding at June 30, 2022* 997,382 $ 97.08 52,636 $ 124.76 * As of June 30, 2022 and December 31, 2021 restricted stock units vested for which the underlying common stock is yet to be issued are 174,490 and 162,481 respectively. |
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, 2021 58,864 $ 78.29 172,042 $ 113.74 Granted 52,702 119.98 79,001 155.67 Vested — — — — Forfeited (352) 119.98 (528) 155.67 Outstanding at June 30, 2022 111,214 $ 97.91 250,515 $ 126.88 |
Segment and Geographical Info_3
Segment and Geographical Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 operating_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 | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||
Revenues, net | $ 346,782 | $ 275,064 | $ 675,990 | $ 536,479 | |
Cost of revenues | [1] | 221,207 | 170,701 | 428,723 | 329,522 |
Gross profit | [1] | 125,575 | 104,363 | 247,267 | 206,957 |
Operating expenses | 78,494 | 68,533 | 156,211 | 129,572 | |
Foreign exchange gain, interest expense and other loss, net | (253) | 1,048 | 3,038 | 418 | |
Income tax expense | 11,125 | 8,865 | 22,327 | 17,823 | |
Gain/(loss) from equity-method investment | 143 | 8 | 257 | (28) | |
Net income attributable to ExlService Holdings, Inc. stockholders | 35,846 | 28,021 | 72,024 | 59,952 | |
Digital operations and solutions | |||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||
Revenues, net | 185,481 | 163,659 | 365,650 | 322,752 | |
Analytics services | |||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||
Revenues, net | 161,301 | 111,405 | 310,340 | 213,727 | |
Insurance | |||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||
Revenues, net | 108,557 | 94,719 | 211,823 | 185,879 | |
Cost of revenues | 70,645 | 59,359 | 135,727 | 115,452 | |
Gross profit | 37,912 | 35,360 | 76,096 | 70,427 | |
Healthcare | |||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||
Revenues, net | 23,051 | 28,250 | 49,207 | 58,515 | |
Cost of revenues | 17,694 | 17,685 | 35,345 | 35,076 | |
Gross profit | 5,357 | 10,565 | 13,862 | 23,439 | |
Emerging Business | |||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||
Revenues, net | 53,873 | 40,690 | 104,620 | 78,358 | |
Cost of revenues | 31,214 | 22,346 | 60,427 | 43,190 | |
Gross profit | 22,659 | 18,344 | 44,193 | 35,168 | |
Analytics | |||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | |||||
Revenues, net | 161,301 | 111,405 | 310,340 | 213,727 | |
Cost of revenues | 101,654 | 71,311 | 197,224 | 135,804 | |
Gross profit | $ 59,647 | $ 40,094 | $ 113,116 | $ 77,923 | |
[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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues, net | $ 346,782 | $ 275,064 | $ 675,990 | $ 536,479 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues, net | 298,520 | 235,288 | 580,899 | 459,656 |
Total Non-United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues, net | 48,262 | 39,776 | 95,091 | 76,823 |
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues, net | 32,090 | 26,175 | 64,863 | 50,926 |
Rest of World | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues, net | $ 16,172 | $ 13,601 | $ 30,228 | $ 25,897 |
Segment and Geographical Info_6
Segment and Geographical Information - Property, Plant and Equipment, Net Based On Geographical Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 150,611 | $ 162,700 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 65,899 | 79,604 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 54,085 | 50,095 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 20,921 | 22,011 |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 9,706 | $ 10,990 |
Revenues, net - Contracts with
Revenues, net - Contracts with Customer, Receivables, Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 237,453 | $ 194,232 |
Contract assets | 1,648 | 2,524 |
Contract liabilities: | ||
Deferred revenue (consideration received in advance) | 18,617 | 18,247 |
Consideration received for process transition activities | $ 4,327 | $ 2,203 |
Revenues, net - Additional Info
Revenues, net - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounts receivable not billed | $ 122,943,000 | $ 93,336,000 |
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 with C
Revenues, net - Contract with Customer Revenue Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue (consideration received in advance) | $ 4,306 | $ 3,332 | $ 13,870 | $ 26,953 |
Consideration received for process transition activities | $ 298 | $ 508 | $ 664 | $ 1,187 |
Revenues, net - Contract Acquis
Revenues, net - Contract Acquisition and Fulfillment Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Contract Acquisition Costs | |||||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | |||||
Opening Balance | $ 927 | $ 785 | $ 511 | $ 1,027 | $ 1,027 |
Additions | 180 | 374 | 727 | 374 | 277 |
Amortization | (124) | (292) | (255) | (534) | (793) |
Closing Balance | 983 | 867 | 983 | 867 | 511 |
Contract Fulfillment Costs | |||||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | |||||
Opening Balance | 7,435 | 4,419 | 5,795 | 5,631 | 5,631 |
Additions | 3,308 | 158 | 5,485 | 164 | 3,742 |
Amortization | (576) | (883) | (1,113) | (2,101) | (3,578) |
Closing Balance | $ 10,167 | $ 3,694 | $ 10,167 | $ 3,694 | $ 5,795 |
Revenues, net - Accounts Receiv
Revenues, net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||||||
Accounts receivable, including unbilled receivables | $ 238,297 | $ 194,805 | ||||
Less: Allowance for expected credit losses | (844) | $ (588) | (573) | $ (730) | $ (1,183) | $ (1,189) |
Accounts receivable, net | $ 237,453 | $ 194,232 |
Revenues, net - Allowance for C
Revenues, net - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at the beginning of the period | $ 588 | $ 1,183 | $ 573 | $ 1,189 | $ 1,189 |
Additions / (reductions) during the period | 571 | (445) | 743 | (395) | (496) |
Reductions due to write-off of Accounts Receivables | (314) | (13) | (472) | (73) | (129) |
Translation adjustment | (1) | 5 | 0 | 9 | 9 |
Balance at the end of the period | $ 844 | $ 730 | $ 844 | $ 730 | $ 573 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - 3.50% Convertible Senior Notes due October 1, 2024 - Convertible Notes Payable - $ / shares | Jun. 30, 2022 | Oct. 01, 2018 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Interest rate | 3.50% | 3.50% |
Debt instrument, conversion price (in dollars per share) | $ 75 | $ 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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerators: | ||||
Net income | $ 35,846 | $ 28,021 | $ 72,024 | $ 59,952 |
Denominators: | ||||
Basic weighted average common shares outstanding (in shares) | 33,403,411 | 33,571,074 | 33,422,618 | 33,652,146 |
Dilutive effect of share-based awards (in shares) | 427,128 | 330,063 | 439,979 | 336,528 |
Dilutive effect of conversion premium on the Notes (in shares) | 0 | 488,631 | 0 | 364,919 |
Diluted weighted average common shares outstanding (in shares) | 33,830,539 | 34,389,768 | 33,862,597 | 34,353,593 |
Earnings per share attributable to ExlService Holdings Inc. stockholders: | ||||
Basic (in dollars per share) | $ 1.07 | $ 0.83 | $ 2.15 | $ 1.78 |
Diluted (in dollars per share) | $ 1.06 | $ 0.81 | $ 2.13 | $ 1.75 |
Weighted average potentially dilutive considered anti-dilutive and not included in computing diluted earnings per share (in shares) | 0 | 1,748 | 541 | 874 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 106,304 | $ 135,337 | $ 150,211 | |
Restricted cash (current) | 6,840 | 6,174 | 5,065 | |
Restricted cash (non-current) | 2,056 | 2,299 | 2,260 | |
Cash, cash equivalents and restricted cash | $ 115,200 | $ 143,810 | $ 157,536 | $ 225,519 |
Other Income_(Loss), net - Summ
Other Income/(Loss), net - Summary of Other Income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Gain on sale and mark-to-market of mutual funds and money market funds | $ 634 | $ 1,655 | $ 1,870 | $ 2,758 |
Interest and dividend income | 847 | 689 | 2,217 | 1,291 |
Others, net | (1,655) | (129) | (1,850) | (424) |
Other income/(loss), net | $ (174) | $ 2,215 | $ 2,237 | $ 3,625 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Owned Assets: | ||
Owned assets, gross | $ 305,150 | $ 299,361 |
Less: Accumulated depreciation and amortization | (222,870) | (213,699) |
Owned assets, net | 82,280 | 85,662 |
Right-of-use assets under finance leases:* | ||
Finance lease, right of use asset, gross | 2,432 | 2,685 |
Less: Accumulated depreciation and amortization | (2,063) | (2,339) |
Property and equipment, net | 369 | 346 |
Property and equipment, net | $ 82,649 | $ 86,008 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | Property and equipment, net |
Network equipment and computers | ||
Owned Assets: | ||
Owned assets, gross | $ 123,117 | $ 116,023 |
Right-of-use assets under finance leases:* | ||
Finance lease, right of use asset, gross | 86 | 91 |
Software | ||
Owned Assets: | ||
Owned assets, gross | 105,924 | 101,884 |
Leasehold improvements | ||
Owned Assets: | ||
Owned assets, gross | 44,448 | 46,401 |
Right-of-use assets under finance leases:* | ||
Finance lease, right of use asset, gross | 1,061 | 1,229 |
Office furniture and equipment | ||
Owned Assets: | ||
Owned assets, gross | 20,892 | 22,302 |
Right-of-use assets under finance leases:* | ||
Finance lease, right of use asset, gross | 685 | 787 |
Motor vehicles | ||
Owned Assets: | ||
Owned assets, gross | 595 | 693 |
Right-of-use assets under finance leases:* | ||
Finance lease, right of use asset, gross | $ 600 | 578 |
Buildings | ||
Owned Assets: | ||
Estimated useful lives | 30 years | |
Owned assets, gross | $ 1,007 | 1,070 |
Land | ||
Owned Assets: | ||
Owned assets, gross | 659 | 700 |
Capital work in progress | ||
Owned Assets: | ||
Owned assets, gross | $ 8,508 | $ 10,288 |
Minimum | Network equipment and computers | ||
Owned Assets: | ||
Estimated useful lives | 3 years | |
Minimum | Software | ||
Owned Assets: | ||
Estimated useful lives | 2 years | |
Minimum | Leasehold improvements | ||
Owned Assets: | ||
Estimated useful lives | 3 years | |
Minimum | Office furniture and equipment | ||
Owned Assets: | ||
Estimated useful lives | 3 years | |
Minimum | Motor vehicles | ||
Owned Assets: | ||
Estimated useful lives | 2 years | |
Maximum | Network equipment and computers | ||
Owned Assets: | ||
Estimated useful lives | 5 years | |
Maximum | Software | ||
Owned Assets: | ||
Estimated useful lives | 5 years | |
Maximum | Leasehold improvements | ||
Owned Assets: | ||
Estimated useful lives | 8 years | |
Maximum | Office furniture and equipment | ||
Owned Assets: | ||
Estimated useful lives | 8 years | |
Maximum | Motor vehicles | ||
Owned Assets: | ||
Estimated useful lives | 5 years |
Property and Equipment, net - D
Property and Equipment, net - Depreciation and Amortization Expense and Effect of Foreign Exchange Gain/Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 9,929 | $ 8,913 | $ 19,045 | $ 17,653 |
Depreciation and Amortization | ||||
Property, Plant and Equipment [Line Items] | ||||
Effect of foreign exchange gain/(loss) | $ (5) | $ 158 | $ 62 | $ 323 |
Property and Equipment, net - I
Property and Equipment, net - Internally Developed Software Costs, Included under Software (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||||
Cost | $ 27,015 | $ 27,015 | $ 19,289 | ||
Less : Accumulated amortization | (12,788) | (12,788) | (10,226) | ||
Internally developed software, net | 14,227 | 14,227 | $ 9,063 | ||
Amortization expense | $ 1,549 | $ 1,055 | $ 2,582 | $ 2,079 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Long-lived assets impairment charges | $ 0 | $ 0 |
Business Combination, Goodwil_3
Business Combination, Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 10, 2022 | Dec. 16, 2021 | Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 406,575 | $ 406,575 | $ 403,902 | ||
Revolving Credit Facility | |||||
Business Acquisition [Line Items] | |||||
Proceeds from borrowings | $ 75,000 | ||||
Clairvoyant | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interests acquired | 100% | ||||
Total purchase consideration | 90,325 | 90,325 | |||
Consideration transferred, excluding cash and cash equivalents acquired, debt and other post closing adjustments | $ 80,080 | ||||
Initial purchase consideration | 78,234 | 76,831 | |||
Earn-out payments | 20,000 | ||||
Contingent consideration | $ 9,000 | 10,000 | 10,000 | 9,000 | |
Measurement period adjustments, goodwill | 2,229 | 1,081 | |||
Measurement period adjustments, income tax liabilities | (988) | ||||
Acquisition-related costs | 0 | 134 | $ 761 | ||
Goodwill | 57,454 | 57,454 | |||
Clairvoyant | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible asset, weighted average useful life | 7 years | ||||
Intangible assets, net | 31,600 | 31,600 | |||
Clairvoyant | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible asset, weighted average useful life | 3 years | ||||
Intangible assets, net | $ 2,070 | $ 2,070 | |||
Inbound Media Group, LLC | |||||
Business Acquisition [Line Items] | |||||
Initial purchase consideration | $ 1,469 | ||||
Contingent consideration | 1,439 | ||||
Goodwill | 1,992 | ||||
Intangible assets, net | $ 916 |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets - Summary of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 16, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 406,575 | $ 403,902 | |
Clairvoyant | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 5,598 | ||
Accounts receivable, net | 8,709 | ||
Other current assets | 360 | ||
Property and equipment, net | 398 | ||
Other assets | 217 | ||
Total assets | 49,552 | ||
Accounts payable | (1,199) | ||
Accrued expenses and other current liabilities | (4,873) | ||
Deferred tax liabilities | (9,383) | ||
Other non-current liabilities | (1,226) | ||
Total liabilities | (16,681) | ||
Net assets acquired | 32,871 | ||
Goodwill | 57,454 | ||
Total purchase consideration | 90,325 | ||
Contingent consideration | 10,000 | $ 9,000 | $ 9,000 |
Clairvoyant | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets, net | 31,600 | ||
Clairvoyant | Developed technology | |||
Business Acquisition [Line Items] | |||
Intangible assets, net | 2,070 | ||
Clairvoyant | Trade names and trademarks | |||
Business Acquisition [Line Items] | |||
Intangible assets, net | 300 | ||
Clairvoyant | Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Intangible assets, net | $ 300 |
Business Combination, Goodwil_4
Business Combination, Goodwill and Intangible Assets - Summary of Company's Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 403,902 |
Acquisition | 1,992 |
Measurement period adjustments | 2,229 |
Currency translation adjustments | (1,548) |
Ending Balance | 406,575 |
Insurance | |
Goodwill [Roll Forward] | |
Beginning Balance | 50,428 |
Acquisition | 0 |
Measurement period adjustments | 0 |
Currency translation adjustments | (399) |
Ending Balance | 50,029 |
Healthcare | |
Goodwill [Roll Forward] | |
Beginning Balance | 21,942 |
Acquisition | 0 |
Measurement period adjustments | 0 |
Currency translation adjustments | (39) |
Ending Balance | 21,903 |
Emerging Business | |
Goodwill [Roll Forward] | |
Beginning Balance | 49,020 |
Acquisition | 0 |
Measurement period adjustments | 0 |
Currency translation adjustments | (1,109) |
Ending Balance | 47,911 |
Analytics | |
Goodwill [Roll Forward] | |
Beginning Balance | 282,512 |
Acquisition | 1,992 |
Measurement period adjustments | 2,229 |
Currency translation adjustments | (1) |
Ending Balance | $ 286,732 |
Business Combination, Goodwil_5
Business Combination, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-lived intangible assets: | ||
Gross Carrying Amount | $ 126,060 | $ 130,056 |
Accumulated Amortization | (53,662) | (49,874) |
Total | 72,398 | 80,182 |
Indefinite-lived intangible assets: | ||
Total intangible assets, gross carrying amount | 126,960 | 130,956 |
Total intangible assets, net carrying amount | 73,298 | 81,082 |
Trade names and trademarks | ||
Indefinite-lived intangible assets: | ||
Trade names and trademarks | 900 | 900 |
Customer relationships | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 99,146 | 103,016 |
Accumulated Amortization | (34,139) | (33,018) |
Total | 65,007 | 69,998 |
Developed technology | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 24,878 | 25,040 |
Accumulated Amortization | (18,326) | (15,850) |
Total | 6,552 | 9,190 |
Trade names and trademarks | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 1,700 | 1,700 |
Accumulated Amortization | (1,157) | (1,006) |
Total | 543 | 694 |
Non-compete agreements | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 336 | 300 |
Accumulated Amortization | (40) | 0 |
Total | $ 296 | $ 300 |
Business Combination, Goodwil_6
Business Combination, Goodwill and Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 4,146 | $ 3,397 | $ 8,632 | $ 6,758 |
Business Combination, Goodwil_7
Business Combination, Goodwill and Intangible Assets - Weighted Average Life of Intangible Assets (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 6 years |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 1 year 7 months 6 days |
Trade names and trademarks (Finite lived) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 2 years |
Non-compete agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 3 years 3 months 18 days |
Business Combination, Goodwil_8
Business Combination, Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (July 1 - December 31) | $ 8,445 | |
2023 | 14,595 | |
2024 | 12,084 | |
2025 | 10,648 | |
2026 | 10,313 | |
2027 and thereafter | 16,313 | |
Total | $ 72,398 | $ 80,182 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Receivables from statutory authorities | $ 13,299 | $ 18,023 |
Derivative instruments | 2,865 | 8,682 |
Advances to suppliers | 2,172 | 1,464 |
Deferred contract fulfillment costs | 1,315 | 1,483 |
Contract assets | 872 | 1,319 |
Interest accrued on term deposits | 645 | 892 |
Others | 1,975 | 2,146 |
Other current assets | $ 23,143 | $ 34,009 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Long-term investments | $ 22,997 | $ 186 |
Lease deposits | 9,251 | 9,649 |
Deferred contract fulfillment costs | 8,852 | 4,312 |
Deposits with statutory authorities | 6,516 | 6,417 |
Derivative instruments | 1,043 | 6,307 |
Contract assets | 776 | 1,205 |
Receivable from Statutory authorities | 225 | 222 |
Others | 3,535 | 2,071 |
Other assets | $ 53,195 | $ 30,369 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 47,611 | $ 44,405 |
Payable to statutory authorities | 15,032 | 13,902 |
Derivative instruments | 6,617 | 1,852 |
Client liabilities | 6,461 | 6,097 |
Contingent consideration | 5,280 | 0 |
Accrued capital expenditures | 2,277 | 8,630 |
Interest payable | 282 | 252 |
Finance lease liabilities | 127 | 141 |
Other current liabilities | 5,343 | 1,071 |
Accrued expenses and other current liabilities | $ 89,030 | $ 76,350 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Summary of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Liabilities, Noncurrent [Abstract] | ||
Retirement benefits | $ 11,029 | $ 9,604 |
Contingent consideration | 6,159 | 9,000 |
Derivative instruments | 3,978 | 1,785 |
Unrecognized tax benefits | 2,142 | 1,068 |
Deferred transition revenue | $ 2,957 | $ 995 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Finance lease liabilities | $ 262 | $ 229 |
Others | 885 | 120 |
Other non-current liabilities | $ 27,412 | $ 22,801 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Loss) - Summary of Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ 700,341 | $ 726,225 | $ 693,156 | $ 719,172 | |
Losses recognized during the period | (45,376) | (6,989) | |||
Losses on net investment hedges | 0 | (1,134) | 0 | (1,134) | |
Reclassification to net income | (3,144) | (5,340) | |||
Income tax effects | [1] | 3,656 | 1,478 | 4,620 | 1,702 |
Ending balance | 685,653 | 728,014 | 685,653 | 728,014 | |
Foreign currency translation loss | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (95,437) | (86,185) | |||
Losses recognized during the period | (30,227) | (6,686) | |||
Losses on net investment hedges | (1,134) | ||||
Reclassification to net income | 0 | 0 | |||
Income tax effects | 979 | 1,229 | |||
Ending balance | (124,685) | (92,776) | (124,685) | (92,776) | |
Unrealized gain/(loss) on cash flow hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 8,420 | 13,799 | |||
Losses recognized during the period | (15,149) | (303) | |||
Losses on net investment hedges | 0 | ||||
Reclassification to net income | (3,448) | (5,695) | |||
Income tax effects | 3,733 | 595 | |||
Ending balance | (6,444) | 8,396 | (6,444) | 8,396 | |
Retirement benefits | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (2,457) | (2,598) | |||
Losses recognized during the period | 0 | 0 | |||
Losses on net investment hedges | 0 | ||||
Reclassification to net income | 304 | 355 | |||
Income tax effects | (92) | (122) | |||
Ending balance | (2,245) | (2,365) | (2,245) | (2,365) | |
Total | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (98,306) | (78,753) | (89,474) | (74,984) | |
Ending balance | $ (133,374) | $ (86,745) | $ (133,374) | $ (86,745) | |
[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 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash equivalents - Money market funds | $ 332 | $ 5,374 |
Mutual funds | 107,425 | 127,551 |
Derivative financial instruments | 3,908 | 14,989 |
Total | 111,665 | 147,914 |
Liabilities | ||
Derivative financial instruments | 10,595 | 3,637 |
Contingent consideration | 11,439 | 9,000 |
Total | 22,034 | 12,637 |
(Level 1) | ||
Assets | ||
Cash equivalents - Money market funds | 332 | 5,374 |
Mutual funds | 107,425 | 127,551 |
Derivative financial instruments | 0 | 0 |
Total | 107,757 | 132,925 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration | 0 | 0 |
Total | 0 | 0 |
(Level 2) | ||
Assets | ||
Cash equivalents - Money market funds | 0 | 0 |
Mutual funds | 0 | 0 |
Derivative financial instruments | 3,908 | 14,989 |
Total | 3,908 | 14,989 |
Liabilities | ||
Derivative financial instruments | 10,595 | 3,637 |
Contingent consideration | 0 | 0 |
Total | 10,595 | 3,637 |
(Level 3) | ||
Assets | ||
Cash equivalents - Money market funds | 0 | 0 |
Mutual funds | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration | 11,439 | 9,000 |
Total | $ 11,439 | $ 9,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||
Contingent consideration | $ 11,439 | $ 9,000 |
(Level 3) | ||
Business Acquisition [Line Items] | ||
Contingent consideration | $ 11,439 | $ 9,000 |
Derivatives and Hedge Account_3
Derivatives and Hedge Accounting - Additional Information (Details) € in Thousands, £ in Thousands, $ in Thousands | 6 Months Ended | |||||||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 EUR (€) | Jun. 30, 2022 COP ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 COP ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Net derivative losses to be reclassified within 12 months | $ 3,795,000 | |||||||
Maximum outstanding term of the cash flow hedges | 42 months | |||||||
Designated as Hedging Instrument | Derivatives in Cash Flow Hedging Relationships | Foreign currency exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Foreign exchange contracts outstanding | $ 568,300,000 | $ 514,580,000 | ||||||
Derivatives not designated as hedging instruments | Foreign currency exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Foreign exchange contracts outstanding | $ 156,066,000 | £ 8,700 | € 1,736 | $ 2,777,668 | $ 134,612,000 | £ 6,763 | € 1,343 | $ 2,541,902 |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Designated as Hedging Instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 2,727 | $ 8,669 |
Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 1,043 | 6,307 |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 6,522 | 1,324 |
Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 3,978 | 1,785 |
Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 138 | 13 |
Derivatives not designated as hedging instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | $ 95 | $ 528 |
Derivatives and Hedge Account_5
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | $ (14,632) | $ (871) | $ (15,149) | $ (303) |
Foreign Currency Transaction Gain (Loss), before Tax | 1,423 | 1,353 | 3,179 | 1,787 |
Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 0 | 1,134 | 0 | 1,134 |
Gain/ (loss) on foreign currency exchange contracts | Derivatives not designated as hedging instruments | Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign Currency Transaction Gain (Loss), before Tax | (5,457) | (805) | (6,356) | (589) |
Derivatives in cash flow hedging relationships | Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | $ (14,632) | $ (871) | $ (15,149) | $ (303) |
Derivatives and Hedge Account_6
Derivatives and Hedge Accounting - Location of Gain or Loss Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cost of revenues | $ 221,207 | $ 170,701 | $ 428,723 | $ 329,522 |
General and administrative expenses | 40,434 | 36,499 | 80,379 | 67,202 |
Selling and marketing expenses | 23,985 | 19,724 | 48,155 | 37,959 |
Depreciation and amortization expense | 14,075 | 12,310 | 27,677 | 24,411 |
Income before income tax expense and earnings from equity affiliates | 46,828 | 36,878 | 94,094 | 77,803 |
Income tax effects on above | (11,125) | (8,865) | (22,327) | (17,823) |
Net income attributable to ExlService Holdings, Inc. stockholders | 35,846 | 28,021 | 72,024 | 59,952 |
Foreign exchange gain/(loss), net | 1,423 | 1,353 | 3,179 | 1,787 |
Gain/ (loss) on foreign currency exchange contracts | Derivatives Designated as Hedging Instruments | Derivatives in cash flow hedging relationships | Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cost of revenues | 1,194 | 2,418 | 2,777 | 4,842 |
General and administrative expenses | 181 | 294 | 475 | 546 |
Selling and marketing expenses | 15 | 15 | 29 | 28 |
Depreciation and amortization expense | 69 | 139 | 167 | 279 |
Income before income tax expense and earnings from equity affiliates | 1,459 | 2,866 | 3,448 | 5,695 |
Income tax effects on above | (420) | (427) | (935) | (816) |
Net income attributable to ExlService Holdings, Inc. stockholders | 1,039 | 2,439 | 2,513 | 4,879 |
Gain/ (loss) on foreign currency exchange contracts | Derivatives not designated as hedging instruments | Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange gain/(loss), net | $ (5,457) | $ (805) | $ (6,356) | $ (589) |
Derivatives and Hedge Account_7
Derivatives and Hedge Accounting - Effect of Net Investment Hedges on AOCL (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effect of net investment hedges on accumulated other comprehensive loss | $ (14,632) | $ (871) | $ (15,149) | $ (303) |
Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effect of net investment hedges on accumulated other comprehensive loss | $ 0 | $ 1,134 | $ 0 | $ 1,134 |
Borrowings - Company's Debt Pos
Borrowings - Company's Debt Position (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | $ 35,000 | $ 260,016 |
Long-term borrowings, less current portion | 250,000 | 0 |
Total borrowings | 260,016 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | 35,000 | 260,016 |
Long-term borrowings, less current portion | 250,000 | 0 |
Total borrowings | 285,000 | 260,016 |
Unamortized debt issuance costs | $ 1,314 | $ 232 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||||
Oct. 01, 2021 numberOfDays | Oct. 01, 2018 USD ($) $ / shares | Jun. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / shares | Apr. 18, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Credit Facilities [Line Items] | |||||||
Interest expense and amortization of debt discount | $ 2,003,000 | $ 3,989,000 | |||||
Letters of credit outstanding | $ 461,000 | $ 461,000 | |||||
3.50% Convertible Senior Notes due October 1, 2024 | Convertible Notes Payable | |||||||
Credit Facilities [Line Items] | |||||||
Debt instrument face amount | $ 150,000,000 | ||||||
Interest rate | 3.50% | 3.50% | |||||
Debt instrument, conversion price (in dollars per share) | $ / shares | $ 75 | $ 75 | |||||
Threshold percentage of stock price trigger | 150% | ||||||
Convertible debt, threshold trading days | numberOfDays | 20 | ||||||
Convertible debt, threshold consecutive trading days | numberOfDays | 30 | ||||||
Conversion rate | 0.0133333 | ||||||
Revolving Credit Facility | New Credit Agreement | |||||||
Credit Facilities [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||
Revolving Credit Facility | Credit Agreement | |||||||
Credit Facilities [Line Items] | |||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||
Line of credit facility option for additional borrowing capacity | $ 200,000,000 |
Borrowings - Credit Facilities
Borrowings - Credit Facilities Carried an Effective Interest Rate (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revolving Credit Facility | New Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Effective Interest Rate | 2% | 1.80% | 1.70% | 1.90% |
Borrowings - Principle Maturiti
Borrowings - Principle Maturities of Borrowings and Credit Arrangements (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
2022 (July 1 - December 31) | $ 25,000 |
2023 | 10,000 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 and thereafter | 250,000 |
Total | 285,000 |
Interest Payments | |
Debt Instrument [Line Items] | |
2022 (July 1 - December 31) | 4,273 |
2023 | 7,850 |
2024 | 7,734 |
2025 | 7,734 |
2026 | 7,734 |
2027 and thereafter | 2,900 |
Total | $ 38,225 |
Capital Structure - Additional
Capital Structure - Additional Information (Details) | 6 Months Ended | ||
Jun. 30, 2022 class_of_common_stock | Oct. 05, 2021 USD ($) | Dec. 16, 2019 USD ($) | |
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] | |||
Repurchase of common stock authorized, maximum | $ 200,000,000 | ||
2022 Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of common stock authorized, maximum | $ 300,000,000 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [Abstract] | ||||
Shares repurchased (in shares) | 0 | 0 | 27,219 | 25,450 |
Total consideration | $ 0 | $ 0 | $ 3,191 | $ 2,015 |
Weighted average purchase price per share (in dollars per share) | $ 0 | $ 0 | $ 117.23 | $ 79.18 |
Capital Structure - Purchased S
Capital Structure - Purchased Shares of its Common Stock, Including Commissions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [Abstract] | ||||
Shares repurchased (in shares) | 205,716 | 287,044 | 427,049 | 600,076 |
Total consideration | $ 28,806 | $ 28,409 | $ 57,000 | $ 55,409 |
Weighted average purchase price per share (in dollars per share) | $ 140.03 | $ 98.97 | $ 133.47 | $ 92.34 |
Employee Benefit Plans - Net Gr
Employee Benefit Plans - Net Gratuity Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 958 | $ 885 | $ 1,948 | $ 1,774 |
Interest cost | 313 | 234 | 636 | 469 |
Expected return on plan assets | (221) | (200) | (449) | (401) |
Amortization of actuarial loss, gross of tax | 149 | 176 | 304 | 355 |
Net gratuity cost | 1,199 | 1,095 | 2,439 | 2,197 |
Income tax effects on amortization of actuarial loss | (45) | (71) | (92) | (122) |
Amortization of actuarial loss, net of tax | $ 104 | $ 105 | $ 212 | $ 233 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Expected return on plan assets, percentage | 7.20% |
Discretionary contributions towards 401(k) plan, maximum percentage | 4% |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Plan Assets (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Change in Plan Assets | |
Plan assets at January 1, 2022 | $ 13,605 |
Actual return | 453 |
Employer contribution | 0 |
Benefits paid | (877) |
Effect of exchange rate changes | (785) |
Plan assets at June 30, 2022 | $ 12,396 |
Employee Benefit Plans - Contri
Employee Benefit Plans - Contribution Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Contribution to the 401(k) Plans | $ 1,026 | $ 753 | $ 3,043 | $ 2,052 |
Contributions to the defined social security contribution plans | $ 4,549 | $ 3,418 | $ 8,762 | $ 6,712 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Operating Lease | ||
Operating lease right-of-use assets | $ 67,962 | $ 76,692 |
Operating lease liabilities - Current | 18,548 | 18,487 |
Operating lease liabilities - Non-current | 59,224 | 68,506 |
Total operating lease liabilities | 77,772 | 86,993 |
Finance Lease | ||
Property and equipment, gross | 2,432 | 2,685 |
Accumulated depreciation | (2,063) | (2,339) |
Property and equipment, net | 369 | 346 |
Finance lease liabilities - Current | 127 | 141 |
Finance lease liabilities - Non-current | 262 | 229 |
Total finance lease liabilities | $ 389 | $ 370 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finance lease: | ||||
Amortization of right-of-use assets | $ 50 | $ 50 | $ 88 | $ 102 |
Interest on lease liabilities | 14 | 22 | 28 | 39 |
Total finance lease cost | 64 | 72 | 116 | 141 |
Operating lease | 5,962 | 6,871 | 12,005 | 13,632 |
Variable lease costs | 1,408 | 2,053 | 2,529 | 3,893 |
Total operating lease cost | 7,370 | 8,924 | 14,534 | 17,525 |
Total lease cost | $ 7,434 | $ 8,996 | $ 14,650 | $ 17,666 |
Leases - Cash Flow and Other In
Leases - Cash Flow and Other Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Cash payments for amounts included in the measurement of lease liabilities : | |||
Operating cash outflows for operating leases | $ 11,922 | $ 13,327 | |
Operating cash outflows for finance leases | 28 | 39 | |
Financing cash outflows for finance leases | 75 | 107 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 3,540 | 1,659 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 118 | $ 50 | |
Weighted-average remaining lease term (in years) | |||
Finance lease | 2 years 6 months | 1 year 9 months 18 days | |
Operating lease | 5 years 6 months | 5 years 9 months 18 days | |
Weighted-average discount rate | |||
Finance lease | 14.50% | 14.10% | |
Operating lease | 7% | 7.40% | |
Reduction in lease liabilities | $ 263 | $ 226 | |
Reduction in ROU assets | $ 263 | $ 226 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2022 (July 1 - December 31) | $ 11,801 | |
2023 | 22,246 | $ 24,020 |
2024 | 17,659 | 22,666 |
2025 | 11,172 | 17,745 |
2026 | 8,986 | 10,741 |
2027 and thereafter | 24,233 | |
Total lease payments | 96,097 | 108,765 |
Less: Imputed interest | 18,325 | 21,772 |
Present value of lease liabilities | 77,772 | 86,993 |
Finance Leases | ||
2022 (July 1 - December 31) | 94 | |
2023 | 175 | 185 |
2024 | 106 | 147 |
2025 | 62 | 72 |
2026 | 35 | 34 |
2027 and thereafter | 15 | |
Total lease payments | 487 | 455 |
Less: Imputed interest | 98 | 85 |
Present value of lease liabilities | $ 389 | $ 370 |
Leases - Maturities of Lease _2
Leases - Maturities of Lease Liabilities Prior Year (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2022 | $ 22,246 | $ 24,020 |
2023 | 17,659 | 22,666 |
2024 | 11,172 | 17,745 |
2025 | 8,986 | 10,741 |
2026 | 8,395 | |
2027 and thereafter | 24,233 | |
2027 and thereafter | 25,198 | |
Total lease payments | 96,097 | 108,765 |
Less: Imputed interest | 18,325 | 21,772 |
Present value of lease liabilities | 77,772 | 86,993 |
Finance Leases | ||
2022 | 175 | 185 |
2023 | 106 | 147 |
2024 | 62 | 72 |
2025 | 35 | 34 |
2026 | 17 | |
2027 and thereafter | 15 | |
2027 and thereafter | 0 | |
Total lease payments | 487 | 455 |
Less: Imputed interest | 98 | 85 |
Present value of lease liabilities | $ 389 | $ 370 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate, current income tax expense (benefit) (as a percent) | 23.80% | 24% | 23.70% | 22.90% |
Income tax expense | $ 11,125 | $ 8,865 | $ 22,327 | $ 17,823 |
Increase in accrued taxes payable | 13,929 | |||
Increase in deferred income taxes | $ 13,929 |
Income Taxes - Recognized in Co
Income Taxes - Recognized in Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Tax Disclosure [Abstract] | |||||
Unrealized loss on cash flow hedges | $ 2,801 | $ 177 | $ 2,798 | $ (221) | |
Reclassification adjustment for cash flow hedges | 420 | 427 | 935 | 816 | |
Reclassification adjustment for retirement benefits | (45) | (71) | (92) | (122) | |
Foreign currency translation loss | 480 | 945 | 979 | 1,229 | |
Total income tax benefit recognized in AOCI | [1] | $ 3,656 | $ 1,478 | $ 4,620 | $ 1,702 |
[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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | $ 13,340 | $ 10,070 | $ 24,564 | $ 17,902 |
Income tax benefit related to share-based compensation, including excess tax benefits | 3,216 | 2,074 | 6,022 | 4,432 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | 3,131 | 1,854 | 5,772 | 3,390 |
General and administrative expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | 5,305 | 4,608 | 9,700 | 7,906 |
Selling and marketing expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | $ 4,904 | $ 3,608 | $ 9,092 | $ 6,606 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 6 Months Ended | |
Jun. 21, 2022 USD ($) shares | Jun. 30, 2022 USD ($) installment shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number available for grant (in shares) | shares | 1,250,148 | |
Number of installments | installment | 2 | |
Share Match Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares purchased under SMP (in shares) | shares | 52,636 | |
Share Match Units | Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights, percent | 33.33% | |
Share Match Units | Share-Based Payment Arrangement, Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights, percent | 66.67% | |
Share Match Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employers matching contribution, cap per employee | $ 100,000 | |
Share Match Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employers matching contribution, cap per employee | 500,000 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 85,851,000 | |
Cost not yet recognized, period for recognition | 2 years 8 months 12 days | |
Performance Based Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 29,712,000 | |
Cost not yet recognized, period for recognition | 2 years 2 months 12 days | |
Employee Stock | 2022 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock purchase program, cap per employee | 15% | |
Employee stock purchase program, cap per employee | $ 25,000 | |
Shares reserved for future issuance (shares) | shares | 800,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Stock Option Activity (Details) - Employee Stock Option $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, outstanding, beginning balance (in shares) | shares | 3,093 | |
Number of options, granted (in shares) | shares | 0 | |
Number of options, exercised (in shares) | shares | 0 | |
Number of options, forfeited (in shares) | shares | 0 | |
Number of options, outstanding, ending Balance (in shares) | shares | 3,093 | 3,093 |
Number of options, vested and exercisable at end of period (in shares) | shares | 3,093 | |
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) | $ / shares | $ 27.62 | |
Weighted-average exercise price, granted (in dollars per share) | $ / shares | 0 | |
Weighted-average exercise price, exercised (in dollars per share) | $ / shares | 0 | |
Weighted-average exercise price, forfeited (in dollars per share) | $ / shares | 0 | |
Weighted-average exercise price, outstanding, ending balance (in dollars per share) | $ / shares | 27.62 | $ 27.62 |
Weighted-average exercise price, vested and exercisable at end of period (in dollars per share) | $ / shares | $ 27.62 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Aggregate intrinsic value, outstanding | $ | $ 370 | $ 362 |
Aggregate intrinsic value, exercised | $ | 0 | |
Aggregate intrinsic value, vested and exercisable at end of period | $ | $ 370 | |
Weighted-average remaining contractual life | 1 year 6 months | 2 years |
Weighted-average remaining contractual life, vested and exercisable at end of period | 1 year 6 months |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Activity Under Company's Stock Plans (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Restricted Stock Units (Others) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, outstanding, at beginning balance (in shares) | 982,187 | |
Number, granted (in shares) | 349,748 | |
Number, vested (in shares) | (298,830) | |
Number, forfeited (in shares) | (35,723) | |
Number, outstanding, at ending balance (in shares) | 997,382 | |
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) | $ 81.61 | |
Weighted-average fair value, granted (in dollars per share) | 120.49 | |
Weighted-average fair value, vested (in dollars per share) | 73.89 | |
Weighted-average fair value, forfeited (in dollars per share) | 95.11 | |
Weighted-average fair value, outstanding, at ending balance (in dollars per share) | $ 97.08 | |
Units vested for which the underlying common stock is yet to be issued (in shares) | 174,490 | 162,481 |
Share Match Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, outstanding, at beginning balance (in shares) | 0 | |
Number, granted (in shares) | 52,636 | |
Number, vested (in shares) | 0 | |
Number, forfeited (in shares) | 0 | |
Number, outstanding, at ending balance (in shares) | 52,636 | |
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) | $ 0 | |
Weighted-average fair value, granted (in dollars per share) | 124.76 | |
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) | $ 124.76 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Based Stock Awards (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
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) | shares | 58,864 |
Number, granted (in shares) | shares | 52,702 |
Number, vested (in shares) | shares | 0 |
Number, forfeited (in shares) | shares | (352) |
Number, outstanding, at ending balance (in shares) | shares | 111,214 |
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 | $ 78.29 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 119.98 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 0 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 119.98 |
Weighted-average fair value, outstanding, at ending balance (in dollars per share) | $ / shares | $ 97.91 |
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] | |
Performance based percentage | 40% |
Award vesting period | 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) | shares | 172,042 |
Number, granted (in shares) | shares | 79,001 |
Number, vested (in shares) | shares | 0 |
Number, forfeited (in shares) | shares | (528) |
Number, outstanding, at ending balance (in shares) | shares | 250,515 |
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 | $ 113.74 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 155.67 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 0 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 155.67 |
Weighted-average fair value, outstanding, at ending balance (in dollars per share) | $ / shares | $ 126.88 |
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] | |
Performance based percentage | 60% |
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% |
Related Party Disclosures - Add
Related Party Disclosures - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Related Party Transactions [Abstract] | ||
Revenue from related parties | $ 574 | $ 574 |
Accounts receivable, related parties | $ 574 | $ 574 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) subsidiary | Dec. 31, 2021 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitment | $ 5,600 | |
Export-oriented units established, percentage | 100% | |
Aggregate amount demanded by income tax authorities related to its transfer pricing issues | $ 29,474 | $ 34,276 |
Bank guarantees and deposits in respect to contingencies | 7,889 | 7,954 |
Amounts paid on deposits | 6,212 | 6,172 |
Deposits for bank guarantees issued | 1,677 | 1,782 |
Value added tax payable | 5,788 | 6,387 |
GST refund, amount rejected | $ 3,655 | $ 3,322 |
Number of companies undergoing assessment | subsidiary | 1 |