Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | EXLS | ||
Entity Registrant Name | ExlService Holdings, Inc. | ||
Entity Central Index Key | 1,297,989 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 33,269,976 | ||
Entity Public Float | $ 1,103,165,005 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 205,323 | $ 176,499 |
Short-term investments | 13,676 | 11,577 |
Restricted cash | 1,872 | 1,395 |
Accounts receivable, net | 92,650 | 80,244 |
Prepaid expenses | 8,027 | 5,783 |
Advance income tax, net | 2,432 | 9,905 |
Other current assets | 15,219 | 12,533 |
Total current assets | 339,199 | 297,936 |
Fixed assets, net | 47,991 | 45,369 |
Restricted cash | 3,319 | 3,258 |
Deferred tax assets, net | 13,749 | 16,440 |
Intangible assets, net | 52,733 | 46,979 |
Goodwill | 171,535 | 139,599 |
Other assets | 22,257 | 23,975 |
Total assets | 650,783 | 573,556 |
Current liabilities: | ||
Accounts payable | 6,401 | 4,663 |
Short-term borrowings | 10,000 | 0 |
Deferred revenue | 11,518 | 7,690 |
Accrued employee cost | 44,526 | 37,606 |
Accrued expenses and other current liabilities | 34,250 | 40,206 |
Current portion of capital lease obligations | 384 | 803 |
Total current liabilities | 107,079 | 90,968 |
Long term borrowings | 60,000 | 50,000 |
Capital lease obligations, less current portion | 278 | 560 |
Non-current liabilities | 17,655 | 12,870 |
Total liabilities | 185,012 | $ 154,398 |
Commitments and contingencies | ||
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, 34,781,201 shares issued and 33,091,223 shares outstanding as of December 31, 2015 and 34,203,352 shares issued and 32,905,467 shares outstanding as of December 31, 2014 | 35 | 34 |
Additional paid-in-capital | 254,052 | 233,173 |
Retained earnings | 320,989 | 269,424 |
Accumulated other comprehensive loss | (67,325) | (55,509) |
Total including shares held in treasury | 507,751 | 447,122 |
Less: 1,689,978 shares as of December 31, 2015 and 1,297,885 shares as of December 31, 2014, held in treasury, at cost | (42,159) | (27,964) |
ExlService Holdings, Inc. stockholders' equity | 465,592 | 419,158 |
Non-controlling interest | 179 | 0 |
Total equity | 465,771 | 419,158 |
Total liabilities and equity | $ 650,783 | $ 573,556 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 34,781,201 | 34,203,352 |
Common stock, shares outstanding (in shares) | 33,091,223 | 32,905,467 |
Treasury stock (in shares) | 1,689,978 | 1,297,885 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenues, net | $ 628,492 | $ 499,278 | $ 478,452 |
Cost of revenues (exclusive of depreciation and amortization) | 402,917 | 332,535 | 290,942 |
Gross profit | 225,575 | 166,743 | 187,510 |
Operating expenses: | |||
General and administrative expenses | 77,293 | 65,381 | 58,797 |
Selling and marketing expenses | 49,474 | 39,294 | 36,376 |
Depreciation and amortization | 31,465 | 28,028 | 24,917 |
Total operating expenses | 158,232 | 132,703 | 120,090 |
Income from operations | 67,343 | 34,040 | 67,420 |
Other income/(expense) : | |||
Foreign exchange gain/(loss), net | 2,744 | (5) | (4,990) |
Other income, net | 5,689 | 3,603 | 2,547 |
Income before income taxes | 75,776 | 37,638 | 64,977 |
Income tax expense | 24,211 | 5,193 | 16,880 |
Net income | $ 51,565 | $ 32,445 | $ 48,097 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.55 | $ 0.99 | $ 1.47 |
Diluted (in dollars per share) | $ 1.51 | $ 0.96 | $ 1.42 |
Weighted-average number of shares used in computing earnings per share: | |||
Basic (in shares) | 33,298,104 | 32,804,606 | 32,750,178 |
Diluted (in shares) | 34,178,340 | 33,636,593 | 33,842,938 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 51,565 | $ 32,445 | $ 48,097 | |
Other comprehensive income/(loss): | ||||
Unrealized gain/(loss) on effective cash flow hedges, net of taxes ($402), $1,768 and ($1,840), respectively | (709) | 5,002 | (7,759) | |
Foreign currency translation adjustment | (12,510) | (5,462) | (19,605) | |
Retirement benefits, net of taxes $22, ($28) and ($91), respectively | 584 | (34) | (331) | |
Reclassification adjustments | ||||
Realized loss on cash flow hedges, net of taxes $456, $1,571 and $1,625, respectively(1) | [1] | 661 | 5,569 | 3,516 |
Retirement benefits, net of taxes $53, $15 and $31, respectively(2) | [2] | 158 | 134 | 108 |
Total other comprehensive (loss)/income | (11,816) | 5,209 | (24,071) | |
Total comprehensive income | $ 39,749 | $ 37,654 | $ 24,026 | |
[1] | These are reclassified to net income and are included in the foreign exchange gain/(loss) in the consolidated statements of income. See Note 7 to the consolidated financial statements. | |||
[2] | These are reclassified to net income and are included in the computation of net periodic pension costs in the consolidated statements of income. See Note 11 to the consolidated financial statements. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain/(loss) on effective cash flow hedges, taxes | $ (402) | $ 1,768 | $ (1,840) |
Retirement benefits, taxes | 22 | (28) | (91) |
Realized loss on cash flow hedges, taxes | 456 | 1,571 | 1,625 |
Retirement benefits, taxes | $ 53 | $ 15 | $ 31 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Treasury Stock | Non - Controlling Interest |
Beginning balance at Dec. 31, 2012 | $ 344,517 | $ 33 | $ 195,248 | $ 188,882 | $ (36,647) | $ (3,024) | $ 25 |
Beginning balance (in shares) at Dec. 31, 2012 | 32,540,082 | (336,262) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued on exercise/vesting of equity awards | 5,489 | 5,489 | |||||
Stock issued on exercise/vesting of equity awards (in shares) | 802,230 | ||||||
Stock based compensation | 11,832 | 11,832 | |||||
Excess tax benefit from stock based compensation | 1,953 | 1,953 | |||||
Acquisition of treasury stock | (21,618) | $ (21,618) | |||||
Acquisition of treasury stock (in shares) | (833,867) | ||||||
Non controlling interest | (25) | (25) | |||||
Other comprehensive income | (24,071) | (24,071) | |||||
Net income | 48,097 | 48,097 | |||||
Ending balance at Dec. 31, 2013 | 366,174 | $ 33 | 214,522 | 236,979 | (60,718) | $ (24,642) | 0 |
Ending balance (shares) at Dec. 31, 2013 | 33,342,312 | (1,170,129) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued on exercise/vesting of equity awards | 6,460 | $ 1 | 6,459 | ||||
Stock issued on exercise/vesting of equity awards (in shares) | 861,040 | ||||||
Stock based compensation | 11,011 | 11,011 | |||||
Excess tax benefit from stock based compensation | 1,181 | 1,181 | |||||
Acquisition of treasury stock | (3,322) | $ (3,322) | |||||
Acquisition of treasury stock (in shares) | (127,756) | ||||||
Non controlling interest | 0 | 0 | |||||
Other comprehensive income | 5,209 | 5,209 | |||||
Net income | 32,445 | 32,445 | |||||
Ending balance at Dec. 31, 2014 | $ 419,158 | $ 34 | 233,173 | 269,424 | (55,509) | $ (27,964) | |
Ending balance (shares) at Dec. 31, 2014 | 32,905,467 | 34,203,352 | (1,297,885) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued on exercise/vesting of equity awards | $ 3,375 | $ 1 | 3,374 | ||||
Stock issued on exercise/vesting of equity awards (in shares) | 577,849 | ||||||
Stock based compensation | 16,047 | 16,047 | |||||
Excess tax benefit from stock based compensation | 1,458 | 1,458 | |||||
Acquisition of treasury stock | (14,195) | $ (14,195) | |||||
Acquisition of treasury stock (in shares) | (392,093) | ||||||
Non controlling interest | 179 | 179 | |||||
Other comprehensive income | (11,816) | (11,816) | |||||
Net income | 51,565 | 51,565 | |||||
Ending balance at Dec. 31, 2015 | $ 465,771 | $ 35 | $ 254,052 | $ 320,989 | $ (67,325) | $ (42,159) | $ 179 |
Ending balance (shares) at Dec. 31, 2015 | 33,091,223 | 34,781,201 | (1,689,978) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 51,565 | $ 32,445 | $ 48,097 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 31,465 | 28,028 | 24,917 |
Write-off of accounts receivable | 0 | 0 | 2,029 |
Stock-based compensation expense | 16,047 | 11,011 | 11,832 |
Unrealized foreign exchange gain | (3,798) | (424) | (7,782) |
Deferred income taxes | 2,238 | 76 | 2,484 |
Excess tax benefit from stock-based compensation | (1,458) | (1,181) | (1,953) |
Others, net | (278) | 295 | 343 |
Change in operating assets and liabilities (net of effect of acquisitions): | |||
Restricted cash | (787) | (747) | (62) |
Accounts receivable | (9,087) | 3,261 | (5,678) |
Prepaid expenses and other current assets | (3,112) | (3,930) | (3,418) |
Accounts payable | 44 | (146) | (375) |
Deferred revenue | 2,566 | (947) | 696 |
Accrued employee costs | 8,528 | 179 | 3,306 |
Accrued expenses and other liabilities | (4,699) | 8,426 | 5,565 |
Advance income tax, net | 8,865 | (7,841) | 2,106 |
Other assets | (1,408) | (1,846) | 685 |
Net cash provided by operating activities | 96,691 | 66,659 | 82,792 |
Cash flows from investing activities: | |||
Purchase of fixed assets | (25,585) | (27,678) | (15,916) |
Business acquisition (net of cash acquired) | (44,270) | (58,185) | (1,183) |
Purchase of short-term investments | (129,050) | (9,134) | (1,927) |
Proceeds from redemption of short-term investments | 125,365 | 6,735 | 1,491 |
Net cash used for investing activities | (73,540) | (88,262) | (17,535) |
Cash flows from financing activities: | |||
Principal payments on capital lease obligations | (720) | (967) | (1,511) |
Proceeds from borrowings | 30,000 | 50,000 | 0 |
Repayments of borrowings | (10,000) | 0 | 0 |
Payment for purchase of non-controlling interest | 0 | 0 | (27) |
Proceeds from non-controlling interest | 176 | 0 | 0 |
Payment of debt issuance costs | (74) | (405) | 0 |
Acquisition of treasury stock | (14,195) | (3,322) | (21,618) |
Proceeds from exercise of stock options | 3,375 | 6,459 | 5,489 |
Excess tax benefit from stock-based compensation | 1,458 | 1,181 | 1,953 |
Net cash (used for)/provided by financing activities | 10,020 | 52,946 | (15,714) |
Net cash (used for)/provided by financing activities | (4,347) | (2,909) | (4,515) |
Net increase in cash and cash equivalents | 28,824 | 28,434 | 45,028 |
Cash and cash equivalents, beginning of year | 176,499 | 148,065 | 103,037 |
Cash and cash equivalents, end of year | 205,323 | 176,499 | 148,065 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 1,188 | 355 | 592 |
Cash paid for taxes, net of refund | 11,505 | 11,204 | 8,585 |
Assets acquired under capital lease | $ 215 | $ 366 | $ 288 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the state of Delaware. ExlService Holdings, together with its subsidiaries (collectively, the “Company”), is a leading Operations Management and Analytics company that helps businesses enhance growth and profitability. Using its proprietary platforms, methodologies and tools the Company looks deeper to help companies improve global operations, enhance data-driven insights, increase customer satisfaction, and manage risk and compliance. The Company’s clients are located principally in the U.S. and the U.K. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Preparation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“US GAAP”). The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The non-controlling interest at December 31, 2015 represented the minority partner’s interest in the operations of ExlService Colombia S.A.S. and the profits associated with the minority partner’s interest in those operations, in the consolidated balance sheets and consolidated statements of income, respectively. The minority partner’s interest in the operations for the years ended December 31, 2015 was insignificant and is included under general and administrative expenses in the consolidated statements of income. Effective for the quarter and year ended December 31, 2015, the Company merged two of its operating segments (Operations Consulting and Finance Transformation, previously part of the Analytics and Business Transformation reportable segment) into the Consulting operating segment to reflect recent organizational changes. The Company has also revised its reportable segments to reflect management’s focus on the Analytics operating segment. All other operating segments have been aggregated into the Operations Management reportable segment. The March 2015 acquisition of RPM Direct LLC and RPM Data Solutions, LLC (collectively, "RPM") is included in the Analytics operating segment. The Company’s reportable segments are as follows: • Operations Management, and • Analytics. The segment information for all prior years presented herein has been restated to conform to the current presentation. This change in segment presentation does not affect the Company’s consolidated statements of income, balance sheets or statements of cash flows. (b) Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the 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 financial statements include, but are not limited to, allowance for doubtful receivables, service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete fixed price contracts. In accordance with its policy, the Company reviews the estimated useful lives of its fixed assets on an ongoing basis. During the year ended December 31, 2015, the review indicated that the actual lives of certain fixed assets were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. As a result, effective January 1, 2015, the Company changed its estimates of the useful lives of its certain fixed assets to better reflect the estimated periods during which these assets will remain in service. The effect of change in estimated useful life of assets reduced depreciation expense by $1,690 , increased net income by $1,016 and increased basic and diluted earnings per share by $0.03 each, during the year ended December 31, 2015. (c) Foreign Currency Translation The functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as its functional currency. Monetary assets and liabilities in foreign currencies are re-measured into functional currency at the rates of exchange prevailing at the balance sheet dates. Transactions in foreign currencies are re-measured into functional currency at the rates of exchange prevailing on the date of the transaction. All transaction foreign exchange gains and losses are recorded in the accompanying consolidated statements of income. The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet dates. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Resulting translation adjustments are included in accumulated other comprehensive loss in the consolidated balance sheets. (d) Revenue Recognition The Company derives its revenues from Operations Management and Analytics services. Revenues from Operations Management are recognized primarily on a time-and-material based, transaction based, outcome-based, cost-plus and fixed-price basis; revenues from Analytics services are recognized primarily on a time-and-material and fixed price basis. The services provided by the Company under its contracts with the customer generally contain one unit of accounting except the software and related services contracts involving implementation services and post contract maintenance services. In such multiple element arrangements, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Revenues are recognized under our contracts generally when four basic criteria are met; persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured. Revenues under time-and-material, transaction and outcome-based contracts are recognized as the services are performed. Revenues are recognized on cost-plus contracts on the basis of contractually agreed direct and indirect costs incurred on a client contract plus an agreed upon profit mark-up. Such revenues are recognized as the related services are provided in accordance with the client contract. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), the Company monitors such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any service credits that are due to a client. Revenue from Analytics services including modeling, targeting and designing of campaigns and mail marketing including email marketing and other digital solutions is typically recognized on delivery of such campaigns. In respect of arrangements involving subcontracting of part or whole of the assigned work, the Company evaluates revenues to be recognized under Accounting Standard Codification ("ASC") topic 605-45, “Revenue recognition - Principal agent considerations”. Revenues for Company’s fixed-price contracts are recognized using the proportional performance method when the pattern of performance under the contracts can be reasonably determined. The Company estimates the proportional performance of a contract by comparing the actual number of hours or days worked to the estimated total number of hours or days required to complete each engagement. The use of the proportional performance method requires significant judgment relative to estimating the number of hours or days required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed. The Company regularly monitors its estimates for completion of a project and record changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified. The Company’s software and related services contracts generally contain software license, related services and maintenance elements. In such multiple element arrangements, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Maintenance revenues are generally recognized on a straight-line basis over the contract term. Services related to software licenses are evaluated to determine whether those services are significant or essential to the functionality of the software. When services are significant or considered essential, revenues related to license fee and services are recognized as the services are performed using the percentage of completion method of accounting, under which the total value of revenue is recognized on the basis of the percentage that each contract’s total labor hours to date bears to the total expected labor hours (input method). The Company accrues revenues for services rendered between the last billing date and the balance sheet date. Accordingly, its accounts receivable include amounts for services that the Company has performed and for which an invoice has not yet been issued to the client. The Company defers the revenues and costs attributable to certain process transition activities with respect to its certain customer contracts where the earnings process of such contracts is not complete. Such revenues and costs are subsequently recognized ratably over the period in which the related services are performed. The deferred costs are limited to the amounts of the deferred revenues. As part of reimbursing the Travelers Indemnity Company (“Travelers”) for certain of their transition related expenses (the “disentanglement costs”), the Company recognized $26,347 of such reimbursements as a reduction of its revenues during the year ended December 31, 2014. The Company did not incur any reimbursements of disentanglement costs during the year ended December 31, 2015, and does not anticipate incurring any additional reimbursements of disentanglement costs related to Travelers going forward. Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. Reimbursements of out-of-pocket expenses included in revenues were $18,848 , $19,606 and $18,621 for the years ended December 31, 2015, 2014 and 2013, respectively. (e) Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, its surplus funds are kept as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits to reduce its exposure to market risk with regard to these funds. Current restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports that will mature on various dates before December 31, 2016, as well as client funds held in dedicated bank accounts. Non-current restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports and for demands against pending income tax assessments (see Note 16 for details), that will mature on various dates after December 31, 2016. (f) Investments The Company’s investments consist of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on such investments is included in interest income. Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. The mutual fund investments are in debt and money market funds which invest in instruments of various maturities in India. The Company accounts for these investments in accordance with the fair value option under ASC topic 825-10 and change in fair value is included in interest and other income. The fair value represents original cost (on the acquisition date) and the net asset value (“NAV”) as quoted, at each reporting period. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in interest and other income. (g) Accounts Receivable Accounts receivable are recorded net of allowances for doubtful accounts. Allowances for doubtful accounts are established through the evaluation of the accounts receivable aging and prior collection experience to estimate the ultimate collectability of these receivables. As of December 31, 2015 and 2014 , the Company had $154 and $120 of allowance for doubtful accounts, respectively. Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts. As of December 31, 2015 and 2014 , the Company had $29,589 and $16,735 of unbilled accounts receivable, respectively. (h) Fixed Assets Fixed assets are stated at cost less accumulated depreciation. Equipment held under capital leases are stated at the lower of present value of minimum lease payments at the inception of the leases or its fair value. Advances paid towards acquisition of fixed assets and the cost of fixed assets not yet placed in service before the end of the period are classified as construction in progress. Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through an assessment of the estimated future undiscounted cash flows related to such assets. In the event that assets are found to be carried at amounts that are in excess of estimated undiscounted future cash flows, the carrying value of the related asset or group of assets is reduced to a level commensurate with fair value based on a discounted cash flow analysis. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Depreciation and amortization on equipment held under capital leases and leasehold improvements are computed using the straight-line method over the shorter of the assets’ estimated useful lives or the lease term. The estimated lives used in determining depreciation are as follows: Estimated Useful Life (Years) Network equipment, computers and software 3-5 Buildings 30 Leasehold improvements 3-8 Office furniture and equipment 3-8 Motor vehicles 2-5 (i) Software Development Costs Costs incurred for developing software or enhancements to the existing software products to be sold are capitalized, including the salaries and benefits of employees that are directly involved in the installation and development, once technological feasibility has been established upon completion of a detailed design program or, in its absence, completion of a working model. The capitalized costs are amortized on a straight-line basis over the estimated useful life. Costs associated with preliminary project stage activities, training, maintenance and all post-implementation stage activities are expensed as incurred. (j) Business Combinations, Goodwill and Other Intangible Assets ASC topic 805, “Business Combinations”, requires that the purchase method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market.Under ASC topic 350, “Intangibles-Goodwill and Other”, all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition related costs are expensed as incurred under general and administrative expenses. Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. Recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of a reporting unit with its carrying value. The fair value of the reporting unit is measured by discounting estimated future cash flows. If the carrying amount of the reporting unit exceeds its fair value, the second step of the process involves a comparison of the fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. Goodwill of a reporting unit is tested for impairment annually or if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period. The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Customer relationships 3-15 years Leasehold benefits 3-8 years Developed technology 5-10 years Non-compete agreements 1-2 years Trade names and trademarks 3-5 years (k) Derivative Financial Instruments. In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates, and not for speculative trading purposes. These derivative contracts are purchased within the Company’s policy and are with counterparties that are highly rated financial institutions. The Company hedges anticipated transactions that are subject to foreign exchange exposure with foreign currency exchange contracts that qualify as cash flow hedges. Changes in the fair value of these cash flow hedges which are deemed effective, are recorded in accumulated other comprehensive income/(loss) (AOCI) until the hedged transactions occur and at that time are recognized in the foreign exchange gain/(loss) in consolidated statements of income. Changes in the fair value of cash flow hedges deemed ineffective are recognized in the consolidated statement of income and are included in foreign exchange gain/(loss). The Company also uses derivatives instruments consisting of foreign currency exchange contracts to economically hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss). The Company evaluates hedge effectiveness of cash flow hedges at the time a contract is entered into as well as on an ongoing basis. If during this time, a contract is deemed ineffective, the change in the fair value is recorded in the consolidated statements of income and is included in foreign exchange gain/(loss). For hedge relationships that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings. (l) Employee Benefits Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. (m) Share-Based Compensation The Company recognizes stock-based compensation expense in the consolidated financial statements for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeiture differs from those estimates. Under the Company’s Amendment and Restatement of the 2006 Omnibus Award Plan (“2015 Plan”), the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs will cliff vest based on a revenue target ("PU") at the end of a three -year period. The other 50% shall be based on a market condition (“MUs”) that is contingent on meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program, measured over a three -year performance period. The award recipient may earn up to two hundred percent ( 200% ) of the PRSUs granted based on the actual performance for both kinds of PRSUs. The fair value of each PU was determined based on the market price of one common share of the Company on the date of grant, and the associated compensation expense was calculated on the basis that performance targets to receive 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The expense related to the unvested PUs as of December 31, 2015 was based on the Company's assessment that the performance criteria for these grants would be met at the 100% performance target level during the respective years of vesting. The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense is expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved. (n) Income Taxes The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged. (o) Financial Instruments and Concentration of Credit Risk Financial Instruments. For certain financial instruments including cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and other current liabilities, recorded amounts approximate fair value due to the relatively short maturity periods of such instruments. Concentration of Credit Risk . Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, its surplus funds are maintained as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. Credit losses on accounts receivable have not been material because of a large concentration of revenues with a small number of large, established companies. The Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. (p) Earnings Per Share Basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents issued and outstanding at the reporting date, using the treasury stock method. Stock options, restricted stock and restricted stock units that are anti-dilutive are excluded from the computation of weighted average shares outstanding. The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2015 2014 2013 Numerators: Net income $ 51,565 $ 32,445 $ 48,097 Denominators: Basic weighted average common shares outstanding 33,298,104 32,804,606 32,750,178 Dilutive effect of share based awards 880,236 831,987 1,092,760 Diluted weighted average common shares outstanding 34,178,340 33,636,593 33,842,938 Earnings per share: Basic $ 1.55 $ 0.99 $ 1.47 Diluted $ 1.51 $ 0.96 $ 1.42 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 73,896 114,395 268,219 (q) Accumulated Other Comprehensive Loss For the Company, accumulated other comprehensive loss consists of amortization of actuarial gain/(loss) on retirement benefits and changes in the cumulative foreign currency translation adjustments. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with ASC No. 815. Changes in the fair values of contracts that are deemed effective are recorded as a component of accumulated other comprehensive loss until the settlement of those contracts. The balances as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Cumulative currency translation adjustments $ (68,063 ) $ (55,553 ) Unrealized gain on cash flow hedges, net of taxes of $662 and $603 824 872 Retirement benefits, net of taxes of ($201) and ($277) (86 ) (828 ) Accumulated other comprehensive loss $ (67,325 ) $ (55,509 ) (r) Accrued expenses and other current liabilities Accrued expenses and other current liabilities consists of the following: December 31, 2015 December 31, 2014 Accrued expenses $ 26,238 $ 24,451 Derivative instruments 1,226 2,385 Client liability account 2,217 9,241 Other current liabilities 4,569 4,129 Accrued expenses and other current liabilities $ 34,250 $ 40,206 (s) Non-current liabilities Non-current liabilities consists of the following: December 31, 2015 December 31, 2014 Derivative instruments $ 1,132 $ 576 Unrecognized tax benefits 3,066 2,878 Deferred rent 6,515 5,977 Retirement benefits 1,441 1,544 Other non-current liabilities 5,501 1,895 Non-current liabilities $ 17,655 $ 12,870 (t) Other Income, net Other Income, net consists of the following: Year ended December 31, 2015 2014 2013 Interest and dividend income $ 6,806 $ 3,709 $ 3,169 Interest expense (1,338 ) (369 ) (564 ) Other, net 221 263 (58 ) Other income, net $ 5,689 $ 3,603 $ 2,547 Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board ("FASB") issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU No. 2014-09”). The new standard is effective for reporting periods beginning after December 15, 2017 and early adoption is not permitted. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions of the Company. ASU No. 2014-09 is effective for the Company in the first quarter of fiscal 2018 using either one of two methods: (i) retrospectively to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU No. 2014-09; or (ii) retrospectively with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU No. 2014-09. The Company is currently evaluating the impact of adoption and the implementation approach to be used. In April 2015, FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement”. The amendments add guidance to Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments will be effective for fiscal years beginning after December 15, 2015. The Company is currently evaluating the method of adoption and impact this standard will have on its consolidated financial statements and related disclosures. In April 2015, FASB issued ASU No. 2015-03, “Interest-Imputation of Interest” (“ASU No. 2015-03”), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by the amendments in that update. The st |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's operating segments are significant strategic business units that align its products and services with how it manages its business, approach the key markets and interacts with its clients. Effective for the quarter and year ended December 31, 2015, the Company merged two of its operating segments (Operations Consulting and Finance Transformation, previously part of the Analytics and Business Transformation reportable segment) into the Consulting operating segment to reflect recent organizational changes. The Company has also revised its reportable segments to reflect management’s focus on the Analytics operating segment. All the other operating segments have been aggregated into the Operations Management reportable segment. The March 2015 acquisition of RPM is included in the Analytics operating segment. The new reportable segments are as follows: • Operations Management • Analytics The Company has restated the segment information for the all the prior years presented herein to conform to the current presentation. This change in segment presentation does not affect the Company's consolidated statements of income, balance sheets or statements of cash flows. The chief operating decision maker (“CODM”) generally reviews operating segment revenues and cost of revenues. The Company does not allocate and therefore the CODM does not evaluate operating expenses, interest expense or income taxes by segment. The Company’s operating assets are shared by multiple segments. The Company manages assets on a total company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. Revenues and cost of revenues for each of the years ended December 31, 2015, 2014 and 2013, for Operations Management and Analytics segments, respectively, are as follows: Year ended December 31, 2015 Year ended December 31, 2014 Operations Management Analytics Total Operations Management Analytics Total Revenues, net $ 506,341 $ 122,151 $ 628,492 $ 433,663 $ 65,615 $ 499,278 Cost of revenues (exclusive of depreciation and amortization) 324,079 78,838 $ 402,917 286,493 46,042 332,535 Gross profit $ 182,262 $ 43,313 $ 225,575 $ 147,170 $ 19,573 $ 166,743 Operating expenses 158,232 132,703 Foreign exchange gain/(loss) and other income, net 8,433 3,598 Income tax expense 24,211 5,193 Net income $ 51,565 $ 32,445 Year ended December 31, 2013 Operations Management Analytics Total Revenues, net $ 432,916 $ 45,536 $ 478,452 Cost of revenues (exclusive of depreciation and amortization) 260,241 30,701 290,942 Gross profit $ 172,675 $ 14,835 $ 187,510 Operating expenses 120,090 Foreign exchange gain/(loss) and other income, net (2,443 ) Income tax expense 16,880 Net income $ 48,097 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (Unaudited) Summarized quarterly results for the years ended December 31, 2015 and 2014 are as follows: Three months ended 2015 March 31 June 30 September 30 December 31 Full Year Revenues, net Operations Management $ 123,853 $ 125,048 $ 128,043 $ 129,397 $ 506,341 Analytics 19,657 30,573 35,460 36,461 122,151 Total Revenues, net $ 143,510 $ 155,621 $ 163,503 $ 165,858 $ 628,492 Gross profit Operations Management $ 44,124 $ 44,239 $ 46,566 $ 47,333 $ 182,262 Analytics 6,261 10,904 13,739 12,409 43,313 Total Gross profit $ 50,385 $ 55,143 $ 60,305 $ 59,742 $ 225,575 Net income $ 9,567 $ 12,074 $ 15,162 $ 14,762 $ 51,565 Earnings Per Share: Basic $ 0.29 $ 0.36 $ 0.46 $ 0.44 $ 1.55 Diluted $ 0.28 $ 0.35 $ 0.44 $ 0.43 $ 1.51 Weighted-average number of shares used in computing earnings per share: Basic 33,236,259 33,417,079 33,307,312 33,231,716 33,298,104 Diluted 34,051,971 34,207,973 34,180,635 34,272,731 34,178,340 Note: Stock compensation expense $ 4,255 $ 3,553 $ 4,471 $ 3,768 $ 16,047 Amortization of intangibles $ 2,059 $ 2,808 $ 2,642 $ 2,717 $ 10,226 Three months ended 2014 March 31 June 30 September 30 December 31 Full Year Revenues, net Operations Management $ 108,246 $ 104,614 $ 104,511 $ 116,292 $ 433,663 Analytics 13,551 15,124 17,946 18,994 65,615 Total Revenues, net $ 121,797 $ 119,738 $ 122,457 $ 135,286 $ 499,278 Gross profit Operations Management $ 42,293 $ 34,151 $ 32,651 $ 38,075 $ 147,170 Analytics 4,582 4,328 4,823 5,840 19,573 Gross profit $ 46,875 $ 38,479 $ 37,474 $ 43,915 $ 166,743 Net income $ 11,147 $ 7,762 $ 6,075 $ 7,461 $ 32,445 Earnings Per Share: Basic $ 0.34 $ 0.24 $ 0.18 $ 0.23 $ 0.99 Diluted $ 0.33 $ 0.23 $ 0.18 $ 0.22 $ 0.96 Weighted-average number of shares used in computing earnings per share: Basic 32,523,490 32,812,155 32,890,475 32,986,276 32,804,606 Diluted 33,428,544 33,673,669 33,676,665 33,761,462 33,636,593 Note: Stock compensation expense $ 4,176 $ 1,966 $ 2,376 $ 2,493 $ 11,011 Amortization of intangibles $ 1,536 $ 1,489 $ 1,441 $ 2,157 $ 6,623 |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | Business Combinations, Goodwill and Intangible Assets RPM Direct LLC and RPM Data Solutions, LLC. On March 20, 2015 the Company completed its acquisition of RPM Direct LLC and RPM Data Solutions, LLC (each a “Target Company” and together the “Target Companies” or “RPM”), pursuant to a Securities Purchase Agreement dated February 23, 2015 (the “Purchase Agreement”). Under the terms of the Purchase Agreement, the Company acquired all of the issued and outstanding limited liability company membership interests of the Target Companies (the “Securities”) from the security holders of each of the Target Companies. The initial purchase consideration consisted of $46,925 in cash including working capital adjustments of $75 , contingent cash consideration of up to $23,000 , as described below, and 122,131 restricted shares of common stock of the Company and certain adjustments related to the financial performance of the Target Companies for 2014. There are no adjustments to the purchase price related to the financial performance of the Target Companies for 2014. The purchase agreement allows sellers the ability to earn up to an additional $23,000 (the “earn-out”) based on the achievement of certain performance goals by the Target Companies during the 2015 and 2016 calendar years. The earn-out has an estimated fair value of $4,060 . As noted above, the Company issued 122,131 restricted shares of common stock with an aggregate fair value of $4,150 to certain key members of the Target Companies, each of whom have accepted employment positions with the Company upon consummation of the combination. The Company also granted 113,302 restricted stock units with an aggregate fair value of $3,850 to certain employees of Target Companies, who have also accepted employment with the Company. The fair value of these grants will be recognized as compensation expense over the vesting period. RPM specializes in analyzing large consumer data sets to segment populations, predict response rates, forecast customer lifetime value and design targeted, multi-channel marketing campaigns. RPM has focused on the insurance industry, including Property & Casualty ("P&C"), life and health, since its inception in 2001. The quantity and combination of data attributes managed by RPM drives optimal, data-driven decision-making and enables it to build models that analyze prospects individually. RPM employs proprietary predictive analytics and domain-specific pattern recognition algorithms to deliver results through a flexible, on-demand service model. Accordingly, the Company paid a premium for the acquisition which is being reflected in the goodwill recognized from the purchase price allocation of the total consideration paid by the Company. During the three months ended December 31, 2015, the Company finalized its purchase price allocation for the acquisition, which is as follows: Amount (In thousands) Net tangible assets $ 1,790 Identifiable intangible assets: Customer Relationships 13,260 Trade Names 680 Developed Technology 1,420 Non-Compete Agreements 680 Goodwill 33,155 Total purchase price* $ 50,985 * Includes amount of $4,125 deposited in escrow accounts in connection with the acquisition. The customer relationships from the RPM acquisition are being amortized over the weighted average useful life of 5.7 years . Similarly, trade-names are being amortized over a useful life of 3 years , developed technology are being amortized over a useful life of 5 years and non-compete agreements are being amortized over a useful life of 4.6 years . During the year ended December 31, 2015, the Company recognized $303 of acquisition related costs. Such amounts are included in general and administrative expenses in the consolidated statements of income. The Company’s results of operations for the year ended December 31, 2015 includes revenues of $32,818 for RPM since March 20, 2015, the date on which the acquisition was consummated. It is not practicable to disclose the net earnings since management does not allocate or evaluate operating expenses and income taxes to its domestic entities. The amount of goodwill recognized from the RPM acquisition is deductible for tax purposes. Goodwill The following table sets forth details of the Company’s goodwill balance as of December 31, 2015 : Operations Management Analytics Total Balance at January 1, 2014 $ 90,622 $ 16,785 $ 107,407 Goodwill arising from Blue Slate acquisition (1) 4,554 — 4,554 Goodwill arising from Overland acquisition 28,667 — 28,667 Currency translation adjustments (529 ) — (529 ) Allocation on sale of a business unit (2) (500 ) — (500 ) Balance at December 31, 2014 $ 122,814 $ 16,785 $ 139,599 Goodwill arising from RPM acquisition — 33,155 33,155 Currency translation adjustments (1,219 ) — (1,219 ) Balance at December 31, 2015 $ 121,595 $ 49,940 $ 171,535 (1) Goodwill arising from the Company's acquisition of Blue Slate Solutions, LLC (“Blue Slate”) in 2014 was reclassified into Operations Management segment because of Company's change in segment reporting. (2) Relates to the sale of a business unit (acquired with the acquisition of Business Process Outsourcing Inc.). The net loss recognized from the sale of this business unit is $149 and is included under “other income, net” in the consolidated statements of income for the year ended December 31, 2014 . Based on the results of the impairment testing performed during the year ended December 31, 2015 , the Company’s goodwill was not impaired. The Company makes every reasonable effort to ensure that it accurately estimates the fair value of the reporting units. However, future changes in the assumptions used to make these estimates could result in the recording of an impairment loss. Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 64,816 $ (24,215 ) $ 40,601 Leasehold benefits 2,789 (2,109 ) 680 Developed technology 12,234 (4,363 ) 7,871 Non-compete agreements 2,045 (1,451 ) 594 Trade names and trademarks 5,670 (2,683 ) 2,987 $ 87,554 $ (34,821 ) $ 52,733 As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 51,598 $ (16,836 ) $ 34,762 Leasehold benefits 2,927 (2,004 ) 923 Developed technology 10,814 (2,402 ) 8,412 Non-compete agreements 1,365 (1,323 ) 42 Trade names and trademarks 4,990 (2,150 ) 2,840 $ 71,694 $ (24,715 ) $ 46,979 Amortization expense for the years ended December 31, 2015 , 2014 and 2013 was $10,226 , $6,623 and $6,300 , respectively. The remaining weighted average life of intangible assets was 6.3 years for customer relationships, 3.4 years for leasehold benefits, 4.5 years for developed technology, 3.5 years for non-compete agreements and 6.0 years for trade names and trademarks excluding indefinite life trade names and trademarks. The Company had $900 of indefinite lived trade names and trademarks as of December 31, 2015 and 2014 . Estimated amortization of intangible assets during the year ending December 31, 2016 $ 10,869 2017 $ 10,792 2018 $ 10,469 2019 $ 9,707 2020 $ 9,996 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC topic 820, “Fair Value Measurements and Disclosures ” ("ASC No. 820") defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk. ASC No. 820 establishes a three-level hierarchy of fair value measurements based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels: • Level 1—Quoted prices for identical instruments in active markets; • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and • Level 3—Valuations derived from valuation techniques in which one or more significant inputs are unobservable. The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of December 31, 2015 and 2014 . The table excludes short-term investments, accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts. Assets and Liabilities Measured at Fair Value The assets and liabilities measured at fair value on recurring basis are summarized below: As of December 31, 2015 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds $ 118,478 $ — $ — $ 118,478 Derivative financial instruments — 4,184 — 4,184 Total $ 118,478 $ 4,184 $ — $ 122,662 Liabilities Derivative financial instruments $ — $ 2,358 $ — $ 2,358 Fair value of earn-out consideration — — 4,060 4,060 Total $ — $ 2,358 $ 4,060 $ 6,418 As of December 31, 2014 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds $ 127,347 $ — $ — $ 127,347 Derivative financial instruments — 4,579 — 4,579 Total $ 127,347 $ 4,579 $ — $ 131,926 Liabilities Derivative financial instruments $ — $ 2,961 $ — $ 2,961 Total $ — $ 2,961 $ — $ 2,961 Derivative Financial Instruments: The Company’s derivative financial instruments consist of foreign currency forward exchange contracts. Fair values for derivative financial instruments are based on independent sources including highly rated financial institutions and are classified as Level 2. See Note 7 for further details. Fair value of earn-out consideration: T he fair value measurement of earn-out consideration is determined using Level 3 inputs. The Company’s earn-out consideration represents a component of the total purchase consideration for its acquisition of RPM. The measurement is calculated using unobservable inputs based on the Company’s own assessment of achievement of certain performance goals by RPM during the 2015 and 2016 calendar years. The Company estimated the fair value of the earn out consideration to be $4,060 , utilizing a Monte Carlo simulation. The Monte-Carlo simulation model simulates a range of possible performance levels and estimates the probabilities of the potential payouts. This model also incorporates a range of assumptions like discount rate, risk-free rate, assumed cost of debt, etc. See Note 5 for further details. |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedge Accounting | Derivatives and Hedge Accounting The Company uses derivative instruments and hedging transactions to mitigate exposure to foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchanges rates. The Company’s derivative financial instruments are largely forward foreign exchange contracts that are designated effective and that qualify as cash flow hedges under ASC No. 815. The Company had outstanding cash flow hedges totaling $230,894 as of December 31, 2015 and $218,036 as of December 31, 2014 . The fair value of these cash flow hedges is included in the other comprehensive loss on the Company's consolidated balance sheet. 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. These derivatives do not qualify as fair value hedges under ASC No. 815. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/loss. The Company’s primary exchange rate exposure is with the Indian Rupee, the U.K. pound sterling and the Philippine peso. The Company also has exposure to Colombian pesos, Czech Koruna, Euro, South African ZAR and other local currencies in which it operates. Outstanding foreign currency forward contracts amounted to $61,641 and GBP 13,256 as of December 31, 2015 and amounted to $57,982 and GBP 10,889 as of December 31, 2014 . The Company estimates that approximately $1,438 of net derivative losses included in accumulated other comprehensive loss (“AOCI”) could be reclassified into earnings within the next twelve months based on exchange rates prevailing as of December 31, 2015 . At December 31, 2015 , the maximum outstanding term of the cash flow hedges was forty-five months . The Company evaluates hedge effectiveness at the time a contract is entered into as well as on an ongoing basis. If during this time, a contract is deemed ineffective, the change in the fair value is recorded in the consolidated statements of income and is included in foreign exchange gain/(loss). 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 derivative amounts recorded in equity are reclassified to earnings. There were no such significant amounts of gains or losses were reclassified from AOCI into earnings during the years ended December 31, 2015 and 2014 . The following tables set forth the fair value of the foreign currency exchange contracts and their location on the consolidated financial statements: Derivatives designated as hedging instruments: December 31, 2015 December 31, 2014 Other current assets: Foreign currency exchange contracts $ 2,664 $ 1,243 Other assets: Foreign currency exchange contracts $ 1,175 $ 3,193 Accrued expenses and other current liabilities: Foreign currency exchange contracts $ 1,226 $ 2,385 Other non current liabilities: Foreign currency exchange contracts $ 1,132 $ 576 Derivatives not designated as hedging instruments: December 31, 2015 December 31, 2014 Other current assets: Foreign currency exchange contracts $ 345 $ 143 The following tables set forth the effect of foreign currency exchange contracts on the consolidated statements of income for the years ended December 31, 2015 and 2014 : Derivatives in Cash Flow Hedging Relationships Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) Amount of Loss Reclassified from AOCI into Income (Effective Portion) Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) 2015 2014 2015 2014 2015 2014 Foreign exchange contracts $ (1,111 ) $ 6,770 Foreign exchange gain/(loss) $ (1,117 ) $ (7,140 ) Foreign exchange gain/(loss) $ — $ — Derivatives not designated as Hedging Instruments Amount of Gain/(Loss) Recognized in Income on Derivatives Location of Gain or (Loss) Recognized in Income on Derivatives 2015 2014 Foreign exchange contracts Foreign exchange gain/(loss) $ 862 $ 3,685 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets Fixed assets consist of the following: December 31, 2015 December 31, 2014 Owned Assets: Network equipment, computers and software $ 95,245 $ 83,140 Leasehold improvements 28,603 26,416 Office furniture and equipment 14,000 12,218 Capital work in progress 3,140 3,029 Buildings 1,202 1,262 Land 787 826 Motor vehicles 540 542 143,517 127,433 Less: Accumulated depreciation and amortization (96,079 ) (82,947 ) $ 47,438 $ 44,486 Assets under capital leases: Leasehold improvements $ 877 $ 961 Office furniture and equipment 136 219 Motor vehicles 806 848 1,819 2,028 Less: Accumulated depreciation and amortization (1,266 ) (1,145 ) $ 553 $ 883 Fixed assets, net $ 47,991 $ 45,369 Depreciation and amortization expense excluding amortization of acquisition related intangibles for the year ended December 31, 2015 , 2014 and 2013 was $21,239 , $21,405 and $18,617 , respectively. Capital work in progress represents advances paid towards acquisition of fixed assets and cost of fixed assets and internally generated software costs not yet ready to be placed in service. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Capital Structure | Capital Structure Common Stock The Company has one class of common stock outstanding. During the years ended December 31, 2015 and 2014 , the Company acquired 15,078 and 18,256 shares of common stock, respectively from employees in connection with withholding tax payments related to the vesting of restricted stock for a total consideration of $484 and $459 , respectively. The weighted average purchase price of $32.10 and $25.14 , respectively, was the average of the high and low price of the Company’s share of common stock on the Nasdaq Global Select Market on the trading day prior to the vesting date of the shares of restricted stock. On December 30, 2014, the Company’s Board of Directors authorized up to an annual $20,000 common stock repurchase program (the “2014 Repurchase Program”), under which shares may be purchased by the Company from time to time from the open market and through private transactions during each of the fiscal years 2015 to 2017 . On November 7, 2013, the Company had announced a similar program, pursuant to which the Board of Directors authorized a $25,000 common stock repurchase program (the “2013 Repurchase Program”), under which shares may be purchased by the Company from time to time from the open market and through private transactions. During the year ended December 31, 2015 , the Company purchased 377,015 shares of its common stock for an aggregate purchase price of approximately $13,711 including commissions, representing an average purchase price per share of $36.37 under the 2014 Repurchase program. During the year ended December 31, 2014 , the Company purchased 109,500 shares of its common stock for an aggregate purchase price of approximately $2,863 including commissions, representing an average purchase price per share of $26.14 under the 2013 Repurchase program. Repurchased shares have been recorded as treasury shares and will be held until the Board of Directors designates that these shares be retired or used for other purposes. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings On October 24, 2014, the Company entered into a credit agreement (as amended, the “Credit Agreement”) with certain lenders and JPMorgan Chase Bank, N.A., as Administrative Agent. The Credit Agreement provides for a $50,000 revolving credit facility (the “Credit Facility”), including a letter of credit sub-facility, for a period of five years. The Company had an option to increase the commitments under the Credit Facility by up to an additional $50,000 , subject to certain approvals and conditions as set forth in the Credit Agreement. On February 23, 2015, via an amendment to the Credit Agreement the Company exercised its option to increase credit commitments by another $50,000 upon the same terms and conditions which were available in the Credit Agreement. The Credit Facility has a maturity date of October 24, 2019 and is voluntarily pre-payable from time to time without premium or penalty. The Company entered into a second amendment to the Credit Agreement effective as of September 28, 2015 to address a minor clarification to the definition of change of control. Borrowings under the Credit Agreement bear interest at a rate equal to the specified prime rate (alternate base rate) or adjusted LIBO rate, plus, an applicable margin. The applicable margin is tied to the Company’s leverage ratio and ranges from 0.25% to 0.75% per annum with respect to loans pegged to the specified prime rate, and 1.25% to 1.75% per annum on loans pegged to the adjusted LIBO rate. The revolving credit commitments under the Credit Agreement are subject to a commitment fee. The commitment fee is also tied to the Company’s leverage ratio, and ranges from 0.20% to 0.30% per annum on the average daily amount by which the aggregate revolving commitments exceed the sum of outstanding revolving loans and letter of credit obligations. The Credit Facility carried an effective interest rate of 1.60% per annum during the year ended December 31, 2015. Borrowings under the Credit Facility may be used for working capital, general corporate purposes and for acquisitions. The Company has an outstanding debt of $70,000 of which $10,000 is expected to be repaid within next twelve months and is included under “short-term borrowings” in the consolidated balance sheet. In connection with the financing, the Company incurred certain debt issuance costs, which are deferred and amortized as an adjustment to interest expense over the term of the Credit Facility. The unamortized debt issuance costs as of December 31, 2015 and December 31, 2014 was $368 and $460 , respectively and is included under "other current assets" and “other assets” in the consolidated balance sheets. The Credit Facility is guaranteed by our domestic subsidiaries and material foreign subsidiaries and are secured by all or substantially all of the assets of the Company and its material domestic subsidiaries. The Credit Agreement contains certain covenants including a restriction on indebtedness of the Company. At December 31, 2015, the Company was in compliance with all covenants. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company’s Gratuity Plans in India and the Philippines ("Gratuity Plan") provide for lump sum payment to vested employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities with regard to the Gratuity Plans are determined by actuarial valuation using the projected unit credit method. Current service costs for the Gratuity Plan are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees. The benefit obligation has been measured as of December 31, 2015 . The following table sets forth the activity and the funded status of the Gratuity Plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods: December 31, 2015 2014 Change in projected benefit obligation: Benefit obligation at the beginning of the year $ 7,563 $ 6,567 Service cost 1,638 1,523 Interest cost 550 559 Benefits paid (851 ) (749 ) Actuarial (gain)/loss (609 ) 161 Divestiture — (350 ) Effect of exchange rate changes (382 ) (148 ) Projected benefit obligation at the end of the year $ 7,909 $ 7,563 Unfunded amount–non-current $ 1,441 $ 1,544 Unfunded amount–current 1,545 1,267 Total accrued liability $ 2,986 $ 2,811 Accumulated benefit obligation $ 5,537 $ 5,034 Net gratuity cost includes the following components: Year ended December 31, 2015 2014 2013 Service cost $ 1,638 $ 1,523 $ 1,341 Interest cost 550 559 444 Expected return on plan assets (385 ) (172 ) (164 ) Actuarial loss 211 149 139 Net gratuity cost $ 2,014 $ 2,059 $ 1,760 The amount in accumulated other comprehensive loss that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $92 . The components of accumulated other comprehensive loss that have not been recognized as components of net gratuity cost in the statement of income as of December 31, 2015 and 2014 is as follows: December 31, 2015 2014 Net actuarial loss $ 77 $ 819 Net prior service cost 9 9 Accumulated other comprehensive loss, net of tax $ 86 $ 828 The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: December 31, 2015 2014 2013 Discount rate 7.8 % 8.0 % 8.3 % Rate of increase in compensation levels 8.4 % 8.2 % 8.2 % Expected long term rate of return on plan assets per annum 9.0 % 9.0 % 9.0 % The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are based on current market yields on government securities adjusted for a suitable risk premium. Expected benefit payments during the year ending December 31, 2016 $ 2,129 2017 $ 1,632 2018 $ 1,291 2019 $ 971 2020 $ 736 2021 to 2025 $ 2,000 The Company's gratuity plan in India is partially funded. The Company makes annual contributions to the employees’ gratuity fund established with Life Insurance Corporation of India and HDFC Standard Life Insurance Company. They calculate the annual contribution required to be made by the Company and manage the Gratuity Plans, including any required payouts. Fund managers manage these funds on a cash accumulation basis and declare interest retrospectively on March 31 of each year. Change in Plan Assets Plan assets at January 1, 2014 $ 2,156 Actual return 259 Employer contribution 2,567 Benefits paid* (105 ) Effect of exchange rate changes (125 ) Plan assets December 31, 2014 $ 4,752 Actual return 355 Employer contribution 903 Benefits paid* (851 ) Effect of exchange rate changes (236 ) Plan assets December 31, 2015 $ 4,923 * All Benefits payments were made through the plan assets during the year ended December 31, 2015 . During the year ended December 31, 2014, benefits payment of $644 were made directly by the Company and benefit payments of $105 were made through the plan assets. The Exl Service 401(k) Plan (the “401(k) Plan”) under Section 401(k) of the Internal Revenue Code of 1986 (the “Code”), covering all eligible employees, as defined in the Code is a defined contribution plan. The Company may make discretionary contributions of up to a maximum of 3% of employee compensation within certain limits. Contributions to the 401(k) Plan amounted to $1,907 , $1,503 and $1,147 during the years ended December 31, 2015 , 2014 and 2013 , respectively. During the years ended December 31, 2015 , 2014 and 2013 , the Company contributed $5,753 , $5,802 and $5,448 for the years ended December 31, 2015, 2014 and 2013, respectively for various defined contribution plans on behalf of its employees in India, the Philippines, Romania, Bulgaria and the Czech Republic. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | Leases The Company finances its use of certain leasehold improvements, furniture, fixtures, office equipment and motor vehicles under various lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of December 31, 2015 are as follows: Year ending December 31, 2016 $ 444 2017 190 2018 89 2019 28 Total minimum lease payments 751 Less: amount representing interest 89 Present value of minimum lease payments 662 Less: current portion 384 Long term capital lease obligation $ 278 The Company conducts its operations using facilities leased under non-cancelable operating lease agreements that expire at various dates. Future minimum lease payments under non-cancelable agreements expiring after December 31, 2015 are set forth below: Year ending December 31, 2016 $ 7,681 2017 4,782 2018 3,277 2019 2,249 2020 1,521 2021 and thereafter 1,298 $ 20,808 The operating leases are subject to renewal periodically and have scheduled rent increases. The Company recognizes rent on such leases on a straight line basis over the non-cancelable lease period determined under ASC topic 840, “Leases”. Rent expense under both cancelable and non-cancelable operating leases was $19,943 , $18,884 and $17,384 for the years ended December 31, 2015 , 2014 and 2013 , respectively. Deferred rent as of December 31, 2015 and 2014 was $7,066 and $6,544 , respectively, and is included under “Accrued expenses and other current liabilities” and “Non-current liabilities” in the consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes consist of the following: Year ended December 31, 2015 2014 2013 Domestic $ 25,045 $ (4,785 ) $ 24,056 Foreign 50,731 42,423 40,921 $ 75,776 $ 37,638 $ 64,977 The income tax expense consists of the following: Year ended December 31, 2015 2014 2013 Current provision/(benefit): Domestic $ 9,951 $ (1,069 ) $ 3,466 Foreign 12,022 6,186 10,930 $ 21,973 $ 5,117 $ 14,396 Deferred provision/(benefit): Domestic $ 3,041 $ 535 $ 4,183 Foreign (803 ) (459 ) (1,699 ) $ 2,238 $ 76 $ 2,484 Income tax expense $ 24,211 $ 5,193 $ 16,880 The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows: December 31, 2015 2014 2013 Expected tax expense $ 26,521 $ 12,797 $ 22,742 Change in valuation allowance 19 64 — Impact of tax holiday (2,991 ) (3,208 ) (5,531 ) Foreign tax rate differential (2,797 ) (3,327 ) (1,412 ) Deferred tax (benefit)/provision (803 ) (459 ) (433 ) Unrecognized tax benefits and interest 324 (1,846 ) 2,399 State taxes, net of Federal taxes 1,327 593 601 Non-deductible expenses 26 15 310 Prior year tax expense/(benefit) 2,450 — (875 ) Other 135 564 (921 ) Tax expense $ 24,211 $ 5,193 $ 16,880 The effective tax rate increased from 13.8% for the year ended December 31, 2014 to 32.0% for the year ended December 31, 2015. The increase in 2015 was primarily due to a lower income tax expense during the year ended December 31, 2014, which was due to the reversal of an unrecognized tax benefit of $2,173 and lower income in the U.S. (versus other jurisdictions in which we incur taxes at a lower rate). The lower income in the U.S. was due to reimbursement of disentanglement costs to Travelers during the year ended December 31, 2014. The effective tax rate further increased in 2015 due to an income tax expense which related to immaterial errors from prior years of approximately $2,450 , lower tax holiday benefits of $217 and increase in corporate tax rate in certain foreign subsidiaries of the Company during the year ended December 31, 2015 compared to the year ended December 31, 2014. The Company evaluated qualitative and quantitative factors in accordance with ASC Topic 250, Accounting Changes and Error Corrections, in determining that the income tax expense recorded in 2015 related to prior years was not material to the results of operations for the year ended December 31, 2015 or any of the prior years. The Company derives income tax benefits from a corporate tax holiday in the Philippines for its operations centers established there over the last several years. The tax holiday expired for one of its centers in 2014 and will expire over the next few years for other centers. Following the expiry of the tax exemption, income generated from centers in Philippines will be taxed at the prevailing annual tax rate, which is currently 5% on gross income. Certain operations centers in India, which were established in Special Economic Zones (“SEZs”), are eligible for tax incentives until 2025. These operations centers are eligible for a 100% income tax exemption for first five years of operations and 50% exemption for a period of five years thereafter. The diluted earnings per share effect of the tax holiday is $0.09 , $0.10 and $0.16 for the years ended December 31, 2015 , 2014 and 2013 , respectively. The components of the deferred tax balances as of December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Deferred tax assets: Tax credit carry forward $ 5,164 $ 4,442 Depreciation and amortization 3,777 4,371 Share-based compensation 8,099 5,595 Accrued employee costs and other expenses 3,079 2,715 Net operating loss carry forwards 3,746 9,889 Unrealized exchange loss 1,136 859 Deferred rent 1,292 1,268 Others 62 670 $ 26,355 $ 29,809 Valuation allowance (595 ) (729 ) Deferred tax assets $ 25,760 $ 29,080 Deferred tax liabilities: Unrealized exchange gain $ 848 $ 667 Intangible assets 11,163 11,973 Deferred tax liabilities: $ 12,011 $ 12,640 Net deferred tax assets $ 13,749 $ 16,440 Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of assets and liabilities and their respective tax bases and operating loss carry forwards. At December 31, 2015 and 2014 , the Company performed an analysis of the deferred tax asset valuation allowance for net operating loss carry forward for its domestic entities. Based on this analysis, the Company continues to carry a valuation allowance on the deferred tax assets on certain net operating loss carry forwards. Accordingly, the Company had recorded a valuation allowance of $512 and $665 as of December 31, 2015 and 2014 , respectively. The Company also recorded a valuation allowance of $83 and $64 related to tax credit carry forward as of December 31, 2015 and 2014, respectively. As a result of the multiple acquisitions over the last few years, the Company acquired federal and state net operating losses in the United States. Thus, as of December 31, 2015 and 2014 , the Company has federal net operating loss carry forwards of approximately $9,063 and $25,300 respectively, which expire through various years until 2032 . The Company’s federal net operating loss carry forwards are subject to certain annual utilization limitations under Section 382 of the United States Internal Revenue Code. The Company also has state and local net operating loss carry forwards of varying amounts, which are subject to limitations under the applicable rules and regulations of those taxing jurisdictions. The Company estimates that it will be able to utilize all of the losses before their expiration. At December 31, 2015 and 2014 , no deferred income taxes have been provided for the Company’s share of undistributed net earnings of foreign operations due to management’s intent to reinvest such amounts indefinitely. Such earnings totaled approximately $261,804 and $222,292 as of December 31, 2015 and 2014, respectively. The determination of the amount of such unrecognized deferred taxes is not practicable. The Company’s income tax expense also includes the impact of provisions established for uncertain income tax positions determined in accordance with ASC topic 740, “ Income Taxes ” , as well as the related net interest. Tax exposures can involve complex issues and may require an extended resolution period. Although the Company believes that it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters differs from the amounts recorded, such differences will impact the income tax expense in the period in which such determination is made. The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2015 through December 31, 2015 Balance as of January 1, 2015 $ 2,761 Increases related to prior year tax positions* 1,937 Decreases related to prior year tax positions* (1,818 ) Increases related to current year tax positions — Decreases related to current year tax positions — Effect of exchange rate changes (83 ) Balance as of December 31, 2015 $ 2,797 * Unrecognized tax benefits of $1,818 related to immaterial errors related to prior years which were recorded and regularized during the year ended December 31, 2015. The unrecognized tax benefits as of December 31, 2015 of $2,797 , if recognized, would impact the effective tax rate. The Company has recognized interest of $205 and $276 during the years ended December 31, 2015 and 2014 , respectively, which is included in the income tax expense in the consolidated statements of income. As of December 31, 2015 and 2014 , the Company has accrued interest and penalties of $1,269 and $1,117 relating to unrecognized tax benefits. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation On June 19, 2015, at the Company’s 2015 Annual Meeting of Stockholders, the Company's stockholders approved the 2015 Amendment and Restatement of the 2006 Omnibus Award Plan (the “2015 Plan”), which amended and restated the 2006 Omnibus Award Plan to, among other things, increased the total number of shares reserved for grants of awards under the 2015 Plan by 1,700,000 shares. As of December 31, 2015, the Company had 2,430,147 shares available for grant under the 2015 Plan. Under the 2015 Plan, the Compensation Committee (“the Committee”) may grant awards of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards, performance based compensation awards (including cash bonus awards and market condition based awards) or any combination of the foregoing. The Committee determines which employees are eligible to receive the equity awards, the number of equity awards to be granted, the exercise price, the vesting period and the exercise period. The vesting period for the equity award issued is determined on the date of the grant and is non-transferable during the life of the equity award. The majority of options expire ten years from the date of grant and generally vest incrementally over a period of four years from the date of grant with 10% vesting at the end of year one, 20% vesting at the end of year two, 30% vesting at the end of year three and 40% vesting at the end of year four. The Company applies the provisions of ASC 718, to account for its stock based compensation, using the modified prospective method of transition. Under the provisions of this guidance, the estimated fair value of share-based awards granted under stock incentive plans is recognized as compensation expense over the vesting period. The following costs related to the Company’s stock-based compensation plan are included in the consolidated statements of income: Year ended December 31, 2015 2014 2013 Cost of revenue $ 2,895 $ 2,290 $ 2,413 General and administrative expenses 6,077 4,350 5,077 Selling and marketing expenses 7,075 4,371 4,342 Total $ 16,047 $ 11,011 $ 11,832 Stock Options The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted by the Company during the year ended December 31, 2015. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. Stock option activity under the Company’s stock plans is shown below: Number of Weighted- Aggregate Weighted- Outstanding at December 31, 2012 2,454,634 $ 15.30 Granted 14,301 26.76 Exercised (485,141 ) 11.32 Forfeited (27,279 ) 24.13 Outstanding at December 31, 2013 1,956,515 $ 16.25 Granted 9,794 27.62 Exercised (440,380 ) 14.67 Forfeited (92,750 ) 25.20 Outstanding at December 31, 2014 1,433,179 $ 16.23 Granted — — Exercised (216,980 ) 15.55 Forfeited (6,058 ) 24.77 Outstanding at December 31, 2015 1,210,141 $ 16.31 $ 34,638 3.50 Vested and exercisable at December 31, 2015 1,135,278 $ 15.75 $ 33,130 3.33 The unrecognized compensation cost for unvested options as of December 31, 2015 is $148 which is expected to be expensed over a weighted average period of 0.11 years. The weighted-average fair value of options granted during the years ended December 31, 2014 and 2013 was $9.77 and $10.07 , respectively. The total grant date fair value of options vested during the years ended December 31, 2015 , 2014 and 2013 was $1,228 , $2,112 and $3,061 , respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2015 , 2014 and 2013 was $4,413 , $5,757 and $8,960 , respectively. The following table summarizes the status of the Company’s stock options outstanding and stock options vested and exercisable at December 31, 2015 : Options Outstanding Options Vested and Exercisable Range of Exercise Prices Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price $8.00 to $15.00 546,543 $ 10.06 546,543 $ 10.06 $15.01 to $21.00 322,661 18.33 322,661 18.33 $21.01 to $28.00 340,937 24.41 266,074 24.30 Total 1,210,141 $ 16.31 1,135,278 $ 15.75 Restricted Stock and Restricted Stock Units An award of restricted stock is a grant of shares subject to conditions and restrictions set by the Committee. The grant or the vesting of an award of restricted stock may be conditioned upon service to the Company or its affiliates or upon the attainment of performance goals or other factors, as determined in the discretion of the Committee. The Committee may also, in its discretion, provide for the lapse of restrictions imposed upon an award of restricted stock. Holders of an award of restricted stock may have, with respect to the restricted stock granted, all of the rights of a stockholder, including the right to vote and to receive dividends. The Committee is authorized to award restricted stock units to participants. The Committee establishes the terms, conditions and restrictions applicable to each award of restricted stock units, including the time or times at which restricted stock units will be granted or vested and the number of units to be covered by each award. The terms and conditions of each restricted stock award will be reflected in a restricted stock unit agreement. Any cash or in-kind dividends paid with respect to unvested shares of restricted stock and restricted stock units are withheld by the Company and paid to the holder of such shares of restricted stock, without interest, only if and when such shares of restricted stock and restricted stock units vest. Any unvested shares of restricted stock and restricted stock units are immediately forfeited without consideration upon the termination of holder’s employment with the Company or its affiliates. Accordingly, the Company’s unvested restricted stock and restricted stock units do not include non-forfeitable rights to dividends or dividend equivalents and are therefore not considered as participating securities for purposes of earnings per share calculations pursuant to the two-class method. Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below: Restricted Stock Restricted Stock Units Number Weighted- Average Intrinsic Value Number Weighted- Average Intrinsic Value Outstanding at December 31, 2012 5,207 $ 17.58 1,025,911 $ 21.36 Granted — — 522,130 29.37 Vested (4,807 ) 17.56 (300,316 ) 20.35 Forfeited (400 ) 17.72 (103,283 ) 25.04 Outstanding at December 31, 2013 — $ — 1,144,442 $ 24.95 Granted 46,950 29.29 634,054 26.26 Vested — — (436,660 ) 22.04 Forfeited — — (152,145 ) 26.28 Outstanding at December 31, 2014* 46,950 $ 29.29 1,189,691 $ 26.54 Granted 122,131 35.91 471,160 34.99 Vested (34,147 ) 29.29 (348,086 ) 25.24 Forfeited (5,296 ) 29.29 (84,478 ) 27.89 Outstanding at December 31, 2015* 129,638 $ 35.53 1,228,287 $ 30.06 * Excludes 21,364 and 28,000 restricted stock units vested during the years ended December 31, 2015 and 2014 , respectively. As of December 31, 2015 and 2014 restricted stock units vested for which the underlying common stock is yet to be issued are 149,364 and 128,000 , respectively. The fair value of restricted stock and restricted stock units is generally the market price of the Company’s shares on the date of grant. As of December 31, 2015 , unrecognized compensation cost of $30,661 is expected to be expensed over a weighted average period of 2.53 years . The weighted-average fair value of restricted stock and restricted stock units granted during the years ended December 31, 2015 , 2014 and 2013 was $35.18 , $26.47 and $29.37 , respectively. The total grant date fair value of restricted stock and restricted stock units vested during the years ended December 31, 2015 , 2014 and 2013 was $12,620 , $11,393 and $9,126 , respectively. During the year ended December 31, 2015 , the Company granted 122,131 restricted stock units in connection with its RPM acquisition. The fair value of these grants will be recognized as compensation expense over the vesting period. Performance Based Stock Awards Under the 2015 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs cliff vest at the end of a three -year period based on a revenue target for the third year (“PUs”). However, up to one-third of the PUs may be earned based on the Company’s revenue performance in each of first two years against annual revenue targets in those years. The total amount of PUs that the recipient earns based on these performance criteria, will be the greater of (i) the PUs earned in the year of vesting and (ii) the sum of the earned PUs during the first two years. The other 50% is based on a market condition (“MUs”) that is contingent on meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program, measured over a three -year performance period. The award recipient may earn up to two hundred percent ( 200% ) of the PRSUs granted based on the actual performance for both kinds of PRSUs. The fair value of each PU was determined based on the market price of one common share of the Company on the date of grant, and the associated compensation expense was calculated on the basis that performance targets to receive 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense will be expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved. The Monte-Carlo simulation model simulates a range of possible future stock prices and estimates the probabilities of the potential payouts. This model also incorporates the following ranges of assumptions: • The historical volatilities are used over the most recent three-year period for the components of the peer group. • The risk-free interest rate is based on the U.S. Treasury rate assumption commensurate with the three-year performance period • Since the plan stipulates that the awards are based upon the TSR of the Company and the components of the peer group, it is assumed that the dividends get reinvested in the issuing entity on a continuous basis. • The correlation coefficients are used to model the way in which each entity tends to move in relation to each other are based upon the price data used to calculate the historical volatilities. Performance restricted stock unit activity under the Company’s stock plans is shown below: Revenue Based PRSUs Market Condition Based PRSUs Number Weighted Avg Fair Value Number Weighted Avg Fair Value Outstanding at December 31, 2014 47,725 $ 25.63 47,725 $ 33.60 Granted 62,788 34.75 162,787 40.36 Vested — — — — Forfeited (3,300 ) 28.53 (3,300 ) 40.29 Outstanding at December 31, 2015 107,213 $ 30.88 207,212 $ 38.80 As of December 31, 2015 , unrecognized compensation cost of $7,661 is expected to be expensed over a weighted average period of 1.85 years . Subsequent to December 31, 2015, the Company granted approximately 125,000 PRSUs and 380,000 restricted stock units to its employees. |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Geographical Information | 15. Geographical Information The Company attributes the revenues to regions based upon location of its customers. Year ended December 31, 2015 2014 2013 Revenues, net United States $ 496,418 $ 368,870 $ 353,274 United Kingdom 108,868 101,789 92,601 Rest of World 23,206 28,619 32,577 $ 628,492 $ 499,278 $ 478,452 December 31, 2015 December 31, 2014 Fixed assets, net India $ 23,415 $ 24,186 United States 10,680 8,293 Philippines 11,285 12,391 Rest of World 2,611 499 $ 47,991 $ 45,369 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Fixed Asset Commitments At December 31, 2015 , the Company has committed to spend approximately $5,800 under agreements to purchase fixed assets. This amount is net of capital advances paid in respect of these purchases. Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the Software Technology Parks of India (“STPI”) scheme promulgated by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. The Company’s management believes, however, that these units have in the past satisfied and will continue to satisfy the required conditions. The Company’s operations centers in the Philippines are registered with the Philippine Economic Zone Authority (“PEZA”). The registration provides the Company with certain fiscal incentives on the import of capital goods and requires Exl Philippines to meet certain performance and investment criteria. The Company’s management believes that these centers have in the past satisfied and will continue to satisfy the required criteria. Contingencies U.S. and Indian transfer pricing regulations require that any international transaction involving associated enterprises be at an arm’s-length price. Accordingly, the Company determines the appropriate pricing for the international transactions among its associated enterprises on the basis of a detailed functional and economic analysis involving benchmarking against transactions among entities that are not under common control. The tax authorities have jurisdiction to review this arrangement and in the event that they determine that the transfer price applied was not appropriate, the Company may incur increased tax liability, including accrued interest and penalties. The Company is currently involved in disputes with the Indian tax authorities over the application of some of its transfer pricing policies for some of its subsidiaries. Further, the Company and a U.S. subsidiary are engaged in tax litigation with the income-tax authorities in India on the issue of permanent establishment. The aggregate disputed amount demanded by Income tax authorities from the Company related to its transfer pricing issues for years ranging from tax years 2003 to 2012 and its permanent establishment issues ranging from tax years 2003 to 2007 as of December 31, 2015 and 2014 is $21,360 and $22,866 , respectively of which the Company has made payments or provided bank guarantee to the extent $14,668 and $14,666 , respectively. Amounts paid as deposits in respect of such assessments aggregating to $12,665 and $12,564 as of December 31, 2015 and 2014 , respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $2,003 and $2,102 as of December 31, 2015 and 2014 , respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets as of December 31, 2015 and 2014 . Based on advice from its Indian tax advisors, the facts underlying the Company’s position and its experience with these types of assessments, the Company believes that the probability that it will ultimately be found liable for these assessments is remote and accordingly has not accrued any amount with respect to these matters in its consolidated financial statements. The Company does not expect any impact from these assessments on its future income tax expense. It is possible that the Company might receive similar orders or assessments from tax authorities for subsequent years. Accordingly even if these disputes are resolved, the Indian tax authorities may still serve additional orders or assessments. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Principles of Consolidation | Basis of Preparation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“US GAAP”). The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The non-controlling interest at December 31, 2015 represented the minority partner’s interest in the operations of ExlService Colombia S.A.S. and the profits associated with the minority partner’s interest in those operations, in the consolidated balance sheets and consolidated statements of income, respectively. The minority partner’s interest in the operations for the years ended December 31, 2015 was insignificant and is included under general and administrative expenses in the consolidated statements of income. Effective for the quarter and year ended December 31, 2015, the Company merged two of its operating segments (Operations Consulting and Finance Transformation, previously part of the Analytics and Business Transformation reportable segment) into the Consulting operating segment to reflect recent organizational changes. The Company has also revised its reportable segments to reflect management’s focus on the Analytics operating segment. All other operating segments have been aggregated into the Operations Management reportable segment. The March 2015 acquisition of RPM Direct LLC and RPM Data Solutions, LLC (collectively, "RPM") is included in the Analytics operating segment. The Company’s reportable segments are as follows: • Operations Management, and • Analytics. The segment information for all prior years presented herein has been restated to conform to the current presentation. This change in segment presentation does not affect the Company’s consolidated statements of income, balance sheets or statements of cash flows. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the 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 financial statements include, but are not limited to, allowance for doubtful receivables, service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete fixed price contracts. In accordance with its policy, the Company reviews the estimated useful lives of its fixed assets on an ongoing basis. During the year ended December 31, 2015, the review indicated that the actual lives of certain fixed assets were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. As a result, effective January 1, 2015, the Company changed its estimates of the useful lives of its certain fixed assets to better reflect the estimated periods during which these assets will remain in service. The effect of change in estimated useful life of assets reduced depreciation expense by $1,690 , increased net income by $1,016 and increased basic and diluted earnings per share by $0.03 each, during the year ended December 31, 2015. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as its functional currency. Monetary assets and liabilities in foreign currencies are re-measured into functional currency at the rates of exchange prevailing at the balance sheet dates. Transactions in foreign currencies are re-measured into functional currency at the rates of exchange prevailing on the date of the transaction. All transaction foreign exchange gains and losses are recorded in the accompanying consolidated statements of income. The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet dates. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Resulting translation adjustments are included in accumulated other comprehensive loss in the consolidated balance sheets. |
Revenue Recognition | Revenue Recognition The Company derives its revenues from Operations Management and Analytics services. Revenues from Operations Management are recognized primarily on a time-and-material based, transaction based, outcome-based, cost-plus and fixed-price basis; revenues from Analytics services are recognized primarily on a time-and-material and fixed price basis. The services provided by the Company under its contracts with the customer generally contain one unit of accounting except the software and related services contracts involving implementation services and post contract maintenance services. In such multiple element arrangements, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Revenues are recognized under our contracts generally when four basic criteria are met; persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured. Revenues under time-and-material, transaction and outcome-based contracts are recognized as the services are performed. Revenues are recognized on cost-plus contracts on the basis of contractually agreed direct and indirect costs incurred on a client contract plus an agreed upon profit mark-up. Such revenues are recognized as the related services are provided in accordance with the client contract. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), the Company monitors such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any service credits that are due to a client. Revenue from Analytics services including modeling, targeting and designing of campaigns and mail marketing including email marketing and other digital solutions is typically recognized on delivery of such campaigns. In respect of arrangements involving subcontracting of part or whole of the assigned work, the Company evaluates revenues to be recognized under Accounting Standard Codification ("ASC") topic 605-45, “Revenue recognition - Principal agent considerations”. Revenues for Company’s fixed-price contracts are recognized using the proportional performance method when the pattern of performance under the contracts can be reasonably determined. The Company estimates the proportional performance of a contract by comparing the actual number of hours or days worked to the estimated total number of hours or days required to complete each engagement. The use of the proportional performance method requires significant judgment relative to estimating the number of hours or days required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed. The Company regularly monitors its estimates for completion of a project and record changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified. The Company’s software and related services contracts generally contain software license, related services and maintenance elements. In such multiple element arrangements, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Maintenance revenues are generally recognized on a straight-line basis over the contract term. Services related to software licenses are evaluated to determine whether those services are significant or essential to the functionality of the software. When services are significant or considered essential, revenues related to license fee and services are recognized as the services are performed using the percentage of completion method of accounting, under which the total value of revenue is recognized on the basis of the percentage that each contract’s total labor hours to date bears to the total expected labor hours (input method). The Company accrues revenues for services rendered between the last billing date and the balance sheet date. Accordingly, its accounts receivable include amounts for services that the Company has performed and for which an invoice has not yet been issued to the client. The Company defers the revenues and costs attributable to certain process transition activities with respect to its certain customer contracts where the earnings process of such contracts is not complete. Such revenues and costs are subsequently recognized ratably over the period in which the related services are performed. The deferred costs are limited to the amounts of the deferred revenues. As part of reimbursing the Travelers Indemnity Company (“Travelers”) for certain of their transition related expenses (the “disentanglement costs”), the Company recognized $26,347 of such reimbursements as a reduction of its revenues during the year ended December 31, 2014. The Company did not incur any reimbursements of disentanglement costs during the year ended December 31, 2015, and does not anticipate incurring any additional reimbursements of disentanglement costs related to Travelers going forward. Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. Reimbursements of out-of-pocket expenses included in revenues were $18,848 , $19,606 and $18,621 for the years ended December 31, 2015, 2014 and 2013, respectively. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, its surplus funds are kept as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits to reduce its exposure to market risk with regard to these funds. Current restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports that will mature on various dates before December 31, 2016, as well as client funds held in dedicated bank accounts. Non-current restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports and for demands against pending income tax assessments (see Note 16 for details), that will mature on various dates after December 31, 2016. |
Investments | Investments The Company’s investments consist of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on such investments is included in interest income. Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. The mutual fund investments are in debt and money market funds which invest in instruments of various maturities in India. The Company accounts for these investments in accordance with the fair value option under ASC topic 825-10 and change in fair value is included in interest and other income. The fair value represents original cost (on the acquisition date) and the net asset value (“NAV”) as quoted, at each reporting period. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in interest and other income. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded net of allowances for doubtful accounts. Allowances for doubtful accounts are established through the evaluation of the accounts receivable aging and prior collection experience to estimate the ultimate collectability of these receivables. As of December 31, 2015 and 2014 , the Company had $154 and $120 of allowance for doubtful accounts, respectively. Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts. As of December 31, 2015 and 2014 , the Company had $29,589 and $16,735 of unbilled accounts receivable, respectively. |
Fixed Assets | Fixed Assets Fixed assets are stated at cost less accumulated depreciation. Equipment held under capital leases are stated at the lower of present value of minimum lease payments at the inception of the leases or its fair value. Advances paid towards acquisition of fixed assets and the cost of fixed assets not yet placed in service before the end of the period are classified as construction in progress. Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through an assessment of the estimated future undiscounted cash flows related to such assets. In the event that assets are found to be carried at amounts that are in excess of estimated undiscounted future cash flows, the carrying value of the related asset or group of assets is reduced to a level commensurate with fair value based on a discounted cash flow analysis. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Depreciation and amortization on equipment held under capital leases and leasehold improvements are computed using the straight-line method over the shorter of the assets’ estimated useful lives or the lease term. The estimated lives used in determining depreciation are as follows: Estimated Useful Life (Years) Network equipment, computers and software 3-5 Buildings 30 Leasehold improvements 3-8 Office furniture and equipment 3-8 Motor vehicles 2-5 |
Software Development Costs | Software Development Costs Costs incurred for developing software or enhancements to the existing software products to be sold are capitalized, including the salaries and benefits of employees that are directly involved in the installation and development, once technological feasibility has been established upon completion of a detailed design program or, in its absence, completion of a working model. The capitalized costs are amortized on a straight-line basis over the estimated useful life. Costs associated with preliminary project stage activities, training, maintenance and all post-implementation stage activities are expensed as incurred. |
Business Combinations, Goodwill and Other Intangible Assets | Business Combinations, Goodwill and Other Intangible Assets ASC topic 805, “Business Combinations”, requires that the purchase method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market.Under ASC topic 350, “Intangibles-Goodwill and Other”, all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition related costs are expensed as incurred under general and administrative expenses. Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. Recoverability of goodwill is evaluated using a two-step process. The first step involves a comparison of the fair value of a reporting unit with its carrying value. The fair value of the reporting unit is measured by discounting estimated future cash flows. If the carrying amount of the reporting unit exceeds its fair value, the second step of the process involves a comparison of the fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. Goodwill of a reporting unit is tested for impairment annually or if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period. The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Customer relationships 3-15 years Leasehold benefits 3-8 years Developed technology 5-10 years Non-compete agreements 1-2 years Trade names and trademarks 3-5 years |
Derivative Financial Instruments | Derivative Financial Instruments. In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates, and not for speculative trading purposes. These derivative contracts are purchased within the Company’s policy and are with counterparties that are highly rated financial institutions. The Company hedges anticipated transactions that are subject to foreign exchange exposure with foreign currency exchange contracts that qualify as cash flow hedges. Changes in the fair value of these cash flow hedges which are deemed effective, are recorded in accumulated other comprehensive income/(loss) (AOCI) until the hedged transactions occur and at that time are recognized in the foreign exchange gain/(loss) in consolidated statements of income. Changes in the fair value of cash flow hedges deemed ineffective are recognized in the consolidated statement of income and are included in foreign exchange gain/(loss). The Company also uses derivatives instruments consisting of foreign currency exchange contracts to economically hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss). The Company evaluates hedge effectiveness of cash flow hedges at the time a contract is entered into as well as on an ongoing basis. If during this time, a contract is deemed ineffective, the change in the fair value is recorded in the consolidated statements of income and is included in foreign exchange gain/(loss). For hedge relationships that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings. |
Employee Benefits | Employee Benefits Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. |
Share-Based Compensation | Share-Based Compensation The Company recognizes stock-based compensation expense in the consolidated financial statements for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeiture differs from those estimates. Under the Company’s Amendment and Restatement of the 2006 Omnibus Award Plan (“2015 Plan”), the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs will cliff vest based on a revenue target ("PU") at the end of a three -year period. The other 50% shall be based on a market condition (“MUs”) that is contingent on meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program, measured over a three -year performance period. The award recipient may earn up to two hundred percent ( 200% ) of the PRSUs granted based on the actual performance for both kinds of PRSUs. The fair value of each PU was determined based on the market price of one common share of the Company on the date of grant, and the associated compensation expense was calculated on the basis that performance targets to receive 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The expense related to the unvested PUs as of December 31, 2015 was based on the Company's assessment that the performance criteria for these grants would be met at the 100% performance target level during the respective years of vesting. The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense is expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved. |
Income Taxes | Income Taxes The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged. |
Financial Instruments and Concentration of Credit Risk | Financial Instruments and Concentration of Credit Risk Financial Instruments. For certain financial instruments including cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and other current liabilities, recorded amounts approximate fair value due to the relatively short maturity periods of such instruments. Concentration of Credit Risk . Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, its surplus funds are maintained as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. Credit losses on accounts receivable have not been material because of a large concentration of revenues with a small number of large, established companies. The Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents issued and outstanding at the reporting date, using the treasury stock method. Stock options, restricted stock and restricted stock units that are anti-dilutive are excluded from the computation of weighted average shares outstanding. The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2015 2014 2013 Numerators: Net income $ 51,565 $ 32,445 $ 48,097 Denominators: Basic weighted average common shares outstanding 33,298,104 32,804,606 32,750,178 Dilutive effect of share based awards 880,236 831,987 1,092,760 Diluted weighted average common shares outstanding 34,178,340 33,636,593 33,842,938 Earnings per share: Basic $ 1.55 $ 0.99 $ 1.47 Diluted $ 1.51 $ 0.96 $ 1.42 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 73,896 114,395 268,219 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss For the Company, accumulated other comprehensive loss consists of amortization of actuarial gain/(loss) on retirement benefits and changes in the cumulative foreign currency translation adjustments. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with ASC No. 815. Changes in the fair values of contracts that are deemed effective are recorded as a component of accumulated other comprehensive loss until the settlement of those contracts. The balances as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Cumulative currency translation adjustments $ (68,063 ) $ (55,553 ) Unrealized gain on cash flow hedges, net of taxes of $662 and $603 824 872 Retirement benefits, net of taxes of ($201) and ($277) (86 ) (828 ) Accumulated other comprehensive loss $ (67,325 ) $ (55,509 ) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board ("FASB") issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU No. 2014-09”). The new standard is effective for reporting periods beginning after December 15, 2017 and early adoption is not permitted. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions of the Company. ASU No. 2014-09 is effective for the Company in the first quarter of fiscal 2018 using either one of two methods: (i) retrospectively to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU No. 2014-09; or (ii) retrospectively with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU No. 2014-09. The Company is currently evaluating the impact of adoption and the implementation approach to be used. In April 2015, FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement”. The amendments add guidance to Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments will be effective for fiscal years beginning after December 15, 2015. The Company is currently evaluating the method of adoption and impact this standard will have on its consolidated financial statements and related disclosures. In April 2015, FASB issued ASU No. 2015-03, “Interest-Imputation of Interest” (“ASU No. 2015-03”), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by the amendments in that update. The standard will be effective for the Company beginning in the first quarter of fiscal year 2016 and requires the Company to apply the new guidance on a retrospective basis on adoption. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In May 2015, FASB issued ASU No. 2015-08, “Business Combinations (Topic 805): Pushdown Accounting-Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115” (“ASU No. 2015-08”). The amendments in ASU No. 2015-08 amend various SEC paragraphs included in FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115 (“SAB 115”). SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The adoption of this guidance does not have a material impact on the Company’s consolidated financial statements. In August 2015, FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements” (“ASU No. 2015-15”). This ASU indicates that the guidance in ASU No. 2015-03 did not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. Given the absence of authoritative guidance within ASU No. 2015-03, the SEC staff has indicated that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. The Company does not expect the adoption of ASU No. 2015-15 to have any effect on the Company’s financial position or results of operations. In September 2015, FASB issued ASU No. 2015-16, “Simplifying the Accounting for Measurement Period Adjustments” (“ASU No. 2015-16”). ASU No. 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in ASU No. 2015-16 require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in ASU No. 2015-16 require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in ASU No. 2015-16 are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in ASU No. 2015-16 should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company is currently evaluating the impact of adoption of ASU No. 2015-16 on its consolidated financial position or results of operations. In November 2015, FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". This guidance requires entities to classify deferred tax liabilities and assets as noncurrent in a classified statement of financial position. The guidance is effective for interim and annual periods beginning after December 15, 2016, and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. As permitted, the Company elected to early adopt this guidance on a retrospective basis effective October 1, 2015 resulting in the reclassification of $4,738 of deferred tax assets from current assets to long-term assets. Deferred tax assets as of December 31, 2014 have been retroactively restated to reclassify $4,455 of deferred tax assets from current assets to long-term assets. In January 2016, FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". This guidance makes targeted improvements to existing U.S. GAAP for financial instruments, including requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requiring entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and requiring entities to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017. Early adoption of the own credit provision is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Estimated Lives Used in Determining Depreciation | The estimated lives used in determining depreciation are as follows: Estimated Useful Life (Years) Network equipment, computers and software 3-5 Buildings 30 Leasehold improvements 3-8 Office furniture and equipment 3-8 Motor vehicles 2-5 |
Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives | The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Customer relationships 3-15 years Leasehold benefits 3-8 years Developed technology 5-10 years Non-compete agreements 1-2 years Trade names and trademarks 3-5 years |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2015 2014 2013 Numerators: Net income $ 51,565 $ 32,445 $ 48,097 Denominators: Basic weighted average common shares outstanding 33,298,104 32,804,606 32,750,178 Dilutive effect of share based awards 880,236 831,987 1,092,760 Diluted weighted average common shares outstanding 34,178,340 33,636,593 33,842,938 Earnings per share: Basic $ 1.55 $ 0.99 $ 1.47 Diluted $ 1.51 $ 0.96 $ 1.42 Weighted average common shares considered anti-dilutive in computing diluted earnings per share 73,896 114,395 268,219 |
Summary of Accumulated Other Comprehensive Loss | The balances as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Cumulative currency translation adjustments $ (68,063 ) $ (55,553 ) Unrealized gain on cash flow hedges, net of taxes of $662 and $603 824 872 Retirement benefits, net of taxes of ($201) and ($277) (86 ) (828 ) Accumulated other comprehensive loss $ (67,325 ) $ (55,509 ) |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities consists of the following: December 31, 2015 December 31, 2014 Accrued expenses $ 26,238 $ 24,451 Derivative instruments 1,226 2,385 Client liability account 2,217 9,241 Other current liabilities 4,569 4,129 Accrued expenses and other current liabilities $ 34,250 $ 40,206 |
Summary of Non-current Liabilities | Non-current liabilities Non-current liabilities consists of the following: December 31, 2015 December 31, 2014 Derivative instruments $ 1,132 $ 576 Unrecognized tax benefits 3,066 2,878 Deferred rent 6,515 5,977 Retirement benefits 1,441 1,544 Other non-current liabilities 5,501 1,895 Non-current liabilities $ 17,655 $ 12,870 |
Summary of Other Income, net | Other Income, net Other Income, net consists of the following: Year ended December 31, 2015 2014 2013 Interest and dividend income $ 6,806 $ 3,709 $ 3,169 Interest expense (1,338 ) (369 ) (564 ) Other, net 221 263 (58 ) Other income, net $ 5,689 $ 3,603 $ 2,547 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Revenues and Cost of Revenues for Company's Operations Management and Analytics and Business Transformation Segments | Revenues and cost of revenues for each of the years ended December 31, 2015, 2014 and 2013, for Operations Management and Analytics segments, respectively, are as follows: Year ended December 31, 2015 Year ended December 31, 2014 Operations Management Analytics Total Operations Management Analytics Total Revenues, net $ 506,341 $ 122,151 $ 628,492 $ 433,663 $ 65,615 $ 499,278 Cost of revenues (exclusive of depreciation and amortization) 324,079 78,838 $ 402,917 286,493 46,042 332,535 Gross profit $ 182,262 $ 43,313 $ 225,575 $ 147,170 $ 19,573 $ 166,743 Operating expenses 158,232 132,703 Foreign exchange gain/(loss) and other income, net 8,433 3,598 Income tax expense 24,211 5,193 Net income $ 51,565 $ 32,445 Year ended December 31, 2013 Operations Management Analytics Total Revenues, net $ 432,916 $ 45,536 $ 478,452 Cost of revenues (exclusive of depreciation and amortization) 260,241 30,701 290,942 Gross profit $ 172,675 $ 14,835 $ 187,510 Operating expenses 120,090 Foreign exchange gain/(loss) and other income, net (2,443 ) Income tax expense 16,880 Net income $ 48,097 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results | Summarized quarterly results for the years ended December 31, 2015 and 2014 are as follows: Three months ended 2015 March 31 June 30 September 30 December 31 Full Year Revenues, net Operations Management $ 123,853 $ 125,048 $ 128,043 $ 129,397 $ 506,341 Analytics 19,657 30,573 35,460 36,461 122,151 Total Revenues, net $ 143,510 $ 155,621 $ 163,503 $ 165,858 $ 628,492 Gross profit Operations Management $ 44,124 $ 44,239 $ 46,566 $ 47,333 $ 182,262 Analytics 6,261 10,904 13,739 12,409 43,313 Total Gross profit $ 50,385 $ 55,143 $ 60,305 $ 59,742 $ 225,575 Net income $ 9,567 $ 12,074 $ 15,162 $ 14,762 $ 51,565 Earnings Per Share: Basic $ 0.29 $ 0.36 $ 0.46 $ 0.44 $ 1.55 Diluted $ 0.28 $ 0.35 $ 0.44 $ 0.43 $ 1.51 Weighted-average number of shares used in computing earnings per share: Basic 33,236,259 33,417,079 33,307,312 33,231,716 33,298,104 Diluted 34,051,971 34,207,973 34,180,635 34,272,731 34,178,340 Note: Stock compensation expense $ 4,255 $ 3,553 $ 4,471 $ 3,768 $ 16,047 Amortization of intangibles $ 2,059 $ 2,808 $ 2,642 $ 2,717 $ 10,226 Three months ended 2014 March 31 June 30 September 30 December 31 Full Year Revenues, net Operations Management $ 108,246 $ 104,614 $ 104,511 $ 116,292 $ 433,663 Analytics 13,551 15,124 17,946 18,994 65,615 Total Revenues, net $ 121,797 $ 119,738 $ 122,457 $ 135,286 $ 499,278 Gross profit Operations Management $ 42,293 $ 34,151 $ 32,651 $ 38,075 $ 147,170 Analytics 4,582 4,328 4,823 5,840 19,573 Gross profit $ 46,875 $ 38,479 $ 37,474 $ 43,915 $ 166,743 Net income $ 11,147 $ 7,762 $ 6,075 $ 7,461 $ 32,445 Earnings Per Share: Basic $ 0.34 $ 0.24 $ 0.18 $ 0.23 $ 0.99 Diluted $ 0.33 $ 0.23 $ 0.18 $ 0.22 $ 0.96 Weighted-average number of shares used in computing earnings per share: Basic 32,523,490 32,812,155 32,890,475 32,986,276 32,804,606 Diluted 33,428,544 33,673,669 33,676,665 33,761,462 33,636,593 Note: Stock compensation expense $ 4,176 $ 1,966 $ 2,376 $ 2,493 $ 11,011 Amortization of intangibles $ 1,536 $ 1,489 $ 1,441 $ 2,157 $ 6,623 |
Business Combinations, Goodwi29
Business Combinations, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Summary of Purchase Price Allocation for Acquisitions | During the three months ended December 31, 2015, the Company finalized its purchase price allocation for the acquisition, which is as follows: Amount (In thousands) Net tangible assets $ 1,790 Identifiable intangible assets: Customer Relationships 13,260 Trade Names 680 Developed Technology 1,420 Non-Compete Agreements 680 Goodwill 33,155 Total purchase price* $ 50,985 * Includes amount of $4,125 deposited in escrow accounts in connection with the acquisition. |
Summary of Company's Goodwill | The following table sets forth details of the Company’s goodwill balance as of December 31, 2015 : Operations Management Analytics Total Balance at January 1, 2014 $ 90,622 $ 16,785 $ 107,407 Goodwill arising from Blue Slate acquisition (1) 4,554 — 4,554 Goodwill arising from Overland acquisition 28,667 — 28,667 Currency translation adjustments (529 ) — (529 ) Allocation on sale of a business unit (2) (500 ) — (500 ) Balance at December 31, 2014 $ 122,814 $ 16,785 $ 139,599 Goodwill arising from RPM acquisition — 33,155 33,155 Currency translation adjustments (1,219 ) — (1,219 ) Balance at December 31, 2015 $ 121,595 $ 49,940 $ 171,535 (1) Goodwill arising from the Company's acquisition of Blue Slate Solutions, LLC (“Blue Slate”) in 2014 was reclassified into Operations Management segment because of Company's change in segment reporting. (2) Relates to the sale of a business unit (acquired with the acquisition of Business Process Outsourcing Inc.). The net loss recognized from the sale of this business unit is $149 and is included under “other income, net” in the consolidated statements of income for the year ended December 31, 2014 . |
Summary of Company's Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 64,816 $ (24,215 ) $ 40,601 Leasehold benefits 2,789 (2,109 ) 680 Developed technology 12,234 (4,363 ) 7,871 Non-compete agreements 2,045 (1,451 ) 594 Trade names and trademarks 5,670 (2,683 ) 2,987 $ 87,554 $ (34,821 ) $ 52,733 As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 51,598 $ (16,836 ) $ 34,762 Leasehold benefits 2,927 (2,004 ) 923 Developed technology 10,814 (2,402 ) 8,412 Non-compete agreements 1,365 (1,323 ) 42 Trade names and trademarks 4,990 (2,150 ) 2,840 $ 71,694 $ (24,715 ) $ 46,979 |
Estimated Amortization of Intangible Assets | The Company had $900 of indefinite lived trade names and trademarks as of December 31, 2015 and 2014 . Estimated amortization of intangible assets during the year ending December 31, 2016 $ 10,869 2017 $ 10,792 2018 $ 10,469 2019 $ 9,707 2020 $ 9,996 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The assets and liabilities measured at fair value on recurring basis are summarized below: As of December 31, 2015 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds $ 118,478 $ — $ — $ 118,478 Derivative financial instruments — 4,184 — 4,184 Total $ 118,478 $ 4,184 $ — $ 122,662 Liabilities Derivative financial instruments $ — $ 2,358 $ — $ 2,358 Fair value of earn-out consideration — — 4,060 4,060 Total $ — $ 2,358 $ 4,060 $ 6,418 As of December 31, 2014 Level 1 Level 2 Level 3 Total Assets Money market and mutual funds $ 127,347 $ — $ — $ 127,347 Derivative financial instruments — 4,579 — 4,579 Total $ 127,347 $ 4,579 $ — $ 131,926 Liabilities Derivative financial instruments $ — $ 2,961 $ — $ 2,961 Total $ — $ 2,961 $ — $ 2,961 |
Derivatives and Hedge Account31
Derivatives and Hedge Accounting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Foreign Currency Exchange Contracts | The following tables set forth the fair value of the foreign currency exchange contracts and their location on the consolidated financial statements: Derivatives designated as hedging instruments: December 31, 2015 December 31, 2014 Other current assets: Foreign currency exchange contracts $ 2,664 $ 1,243 Other assets: Foreign currency exchange contracts $ 1,175 $ 3,193 Accrued expenses and other current liabilities: Foreign currency exchange contracts $ 1,226 $ 2,385 Other non current liabilities: Foreign currency exchange contracts $ 1,132 $ 576 Derivatives not designated as hedging instruments: December 31, 2015 December 31, 2014 Other current assets: Foreign currency exchange contracts $ 345 $ 143 |
Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income | The following tables set forth the effect of foreign currency exchange contracts on the consolidated statements of income for the years ended December 31, 2015 and 2014 : Derivatives in Cash Flow Hedging Relationships Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) Amount of Loss Reclassified from AOCI into Income (Effective Portion) Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) 2015 2014 2015 2014 2015 2014 Foreign exchange contracts $ (1,111 ) $ 6,770 Foreign exchange gain/(loss) $ (1,117 ) $ (7,140 ) Foreign exchange gain/(loss) $ — $ — Derivatives not designated as Hedging Instruments Amount of Gain/(Loss) Recognized in Income on Derivatives Location of Gain or (Loss) Recognized in Income on Derivatives 2015 2014 Foreign exchange contracts Foreign exchange gain/(loss) $ 862 $ 3,685 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets consist of the following: December 31, 2015 December 31, 2014 Owned Assets: Network equipment, computers and software $ 95,245 $ 83,140 Leasehold improvements 28,603 26,416 Office furniture and equipment 14,000 12,218 Capital work in progress 3,140 3,029 Buildings 1,202 1,262 Land 787 826 Motor vehicles 540 542 143,517 127,433 Less: Accumulated depreciation and amortization (96,079 ) (82,947 ) $ 47,438 $ 44,486 Assets under capital leases: Leasehold improvements $ 877 $ 961 Office furniture and equipment 136 219 Motor vehicles 806 848 1,819 2,028 Less: Accumulated depreciation and amortization (1,266 ) (1,145 ) $ 553 $ 883 Fixed assets, net $ 47,991 $ 45,369 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Change in Projected Benefit Obligation | The following table sets forth the activity and the funded status of the Gratuity Plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods: December 31, 2015 2014 Change in projected benefit obligation: Benefit obligation at the beginning of the year $ 7,563 $ 6,567 Service cost 1,638 1,523 Interest cost 550 559 Benefits paid (851 ) (749 ) Actuarial (gain)/loss (609 ) 161 Divestiture — (350 ) Effect of exchange rate changes (382 ) (148 ) Projected benefit obligation at the end of the year $ 7,909 $ 7,563 Unfunded amount–non-current $ 1,441 $ 1,544 Unfunded amount–current 1,545 1,267 Total accrued liability $ 2,986 $ 2,811 Accumulated benefit obligation $ 5,537 $ 5,034 |
Net Gratuity Cost | Net gratuity cost includes the following components: Year ended December 31, 2015 2014 2013 Service cost $ 1,638 $ 1,523 $ 1,341 Interest cost 550 559 444 Expected return on plan assets (385 ) (172 ) (164 ) Actuarial loss 211 149 139 Net gratuity cost $ 2,014 $ 2,059 $ 1,760 |
Summary of Components Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss that have not been recognized as components of net gratuity cost in the statement of income as of December 31, 2015 and 2014 is as follows: December 31, 2015 2014 Net actuarial loss $ 77 $ 819 Net prior service cost 9 9 Accumulated other comprehensive loss, net of tax $ 86 $ 828 |
Summary of Weighted Average Actuarial Assumptions | The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: December 31, 2015 2014 2013 Discount rate 7.8 % 8.0 % 8.3 % Rate of increase in compensation levels 8.4 % 8.2 % 8.2 % Expected long term rate of return on plan assets per annum 9.0 % 9.0 % 9.0 % |
Summary of Expected Benefit Payments | Expected benefit payments during the year ending December 31, 2016 $ 2,129 2017 $ 1,632 2018 $ 1,291 2019 $ 971 2020 $ 736 2021 to 2025 $ 2,000 |
Change in Plan Assets | Change in Plan Assets Plan assets at January 1, 2014 $ 2,156 Actual return 259 Employer contribution 2,567 Benefits paid* (105 ) Effect of exchange rate changes (125 ) Plan assets December 31, 2014 $ 4,752 Actual return 355 Employer contribution 903 Benefits paid* (851 ) Effect of exchange rate changes (236 ) Plan assets December 31, 2015 $ 4,923 * All Benefits payments were made through the plan assets during the year ended December 31, 2015 . During the year ended December 31, 2014, benefits payment of $644 were made directly by the Company and benefit payments of $105 were made through the plan assets. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Minimum Lease Payments under Capital Leases | The Company finances its use of certain leasehold improvements, furniture, fixtures, office equipment and motor vehicles under various lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of December 31, 2015 are as follows: Year ending December 31, 2016 $ 444 2017 190 2018 89 2019 28 Total minimum lease payments 751 Less: amount representing interest 89 Present value of minimum lease payments 662 Less: current portion 384 Long term capital lease obligation $ 278 |
Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring After December 31, 2015 | The Company conducts its operations using facilities leased under non-cancelable operating lease agreements that expire at various dates. Future minimum lease payments under non-cancelable agreements expiring after December 31, 2015 are set forth below: Year ending December 31, 2016 $ 7,681 2017 4,782 2018 3,277 2019 2,249 2020 1,521 2021 and thereafter 1,298 $ 20,808 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Before Income Taxes | The components of income before income taxes consist of the following: Year ended December 31, 2015 2014 2013 Domestic $ 25,045 $ (4,785 ) $ 24,056 Foreign 50,731 42,423 40,921 $ 75,776 $ 37,638 $ 64,977 |
Summary of Income Tax Provision/(Benefit) Relating to Continuing Operations | The income tax expense consists of the following: Year ended December 31, 2015 2014 2013 Current provision/(benefit): Domestic $ 9,951 $ (1,069 ) $ 3,466 Foreign 12,022 6,186 10,930 $ 21,973 $ 5,117 $ 14,396 Deferred provision/(benefit): Domestic $ 3,041 $ 535 $ 4,183 Foreign (803 ) (459 ) (1,699 ) $ 2,238 $ 76 $ 2,484 Income tax expense $ 24,211 $ 5,193 $ 16,880 |
Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes | The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows: December 31, 2015 2014 2013 Expected tax expense $ 26,521 $ 12,797 $ 22,742 Change in valuation allowance 19 64 — Impact of tax holiday (2,991 ) (3,208 ) (5,531 ) Foreign tax rate differential (2,797 ) (3,327 ) (1,412 ) Deferred tax (benefit)/provision (803 ) (459 ) (433 ) Unrecognized tax benefits and interest 324 (1,846 ) 2,399 State taxes, net of Federal taxes 1,327 593 601 Non-deductible expenses 26 15 310 Prior year tax expense/(benefit) 2,450 — (875 ) Other 135 564 (921 ) Tax expense $ 24,211 $ 5,193 $ 16,880 |
Summary of Components of Deferred Tax Balances | The components of the deferred tax balances as of December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Deferred tax assets: Tax credit carry forward $ 5,164 $ 4,442 Depreciation and amortization 3,777 4,371 Share-based compensation 8,099 5,595 Accrued employee costs and other expenses 3,079 2,715 Net operating loss carry forwards 3,746 9,889 Unrealized exchange loss 1,136 859 Deferred rent 1,292 1,268 Others 62 670 $ 26,355 $ 29,809 Valuation allowance (595 ) (729 ) Deferred tax assets $ 25,760 $ 29,080 Deferred tax liabilities: Unrealized exchange gain $ 848 $ 667 Intangible assets 11,163 11,973 Deferred tax liabilities: $ 12,011 $ 12,640 Net deferred tax assets $ 13,749 $ 16,440 |
Summary of Activity Related to Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2015 through December 31, 2015 Balance as of January 1, 2015 $ 2,761 Increases related to prior year tax positions* 1,937 Decreases related to prior year tax positions* (1,818 ) Increases related to current year tax positions — Decreases related to current year tax positions — Effect of exchange rate changes (83 ) Balance as of December 31, 2015 $ 2,797 * Unrecognized tax benefits of $1,818 related to immaterial errors related to prior years which were recorded and regularized during the year ended December 31, 2015. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Costs Related to Company's Stock-Based Compensation Plan | The following costs related to the Company’s stock-based compensation plan are included in the consolidated statements of income: Year ended December 31, 2015 2014 2013 Cost of revenue $ 2,895 $ 2,290 $ 2,413 General and administrative expenses 6,077 4,350 5,077 Selling and marketing expenses 7,075 4,371 4,342 Total $ 16,047 $ 11,011 $ 11,832 |
Stock Based Compensation Stock Option Activity | Stock option activity under the Company’s stock plans is shown below: Number of Weighted- Aggregate Weighted- Outstanding at December 31, 2012 2,454,634 $ 15.30 Granted 14,301 26.76 Exercised (485,141 ) 11.32 Forfeited (27,279 ) 24.13 Outstanding at December 31, 2013 1,956,515 $ 16.25 Granted 9,794 27.62 Exercised (440,380 ) 14.67 Forfeited (92,750 ) 25.20 Outstanding at December 31, 2014 1,433,179 $ 16.23 Granted — — Exercised (216,980 ) 15.55 Forfeited (6,058 ) 24.77 Outstanding at December 31, 2015 1,210,141 $ 16.31 $ 34,638 3.50 Vested and exercisable at December 31, 2015 1,135,278 $ 15.75 $ 33,130 3.33 |
Company's Stock Options Outstanding and Stock Options Vested and Exercisable | The following table summarizes the status of the Company’s stock options outstanding and stock options vested and exercisable at December 31, 2015 : Options Outstanding Options Vested and Exercisable Range of Exercise Prices Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price $8.00 to $15.00 546,543 $ 10.06 546,543 $ 10.06 $15.01 to $21.00 322,661 18.33 322,661 18.33 $21.01 to $28.00 340,937 24.41 266,074 24.30 Total 1,210,141 $ 16.31 1,135,278 $ 15.75 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Activity Under Company's Stock Plans | Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below: Restricted Stock Restricted Stock Units Number Weighted- Average Intrinsic Value Number Weighted- Average Intrinsic Value Outstanding at December 31, 2012 5,207 $ 17.58 1,025,911 $ 21.36 Granted — — 522,130 29.37 Vested (4,807 ) 17.56 (300,316 ) 20.35 Forfeited (400 ) 17.72 (103,283 ) 25.04 Outstanding at December 31, 2013 — $ — 1,144,442 $ 24.95 Granted 46,950 29.29 634,054 26.26 Vested — — (436,660 ) 22.04 Forfeited — — (152,145 ) 26.28 Outstanding at December 31, 2014* 46,950 $ 29.29 1,189,691 $ 26.54 Granted 122,131 35.91 471,160 34.99 Vested (34,147 ) 29.29 (348,086 ) 25.24 Forfeited (5,296 ) 29.29 (84,478 ) 27.89 Outstanding at December 31, 2015* 129,638 $ 35.53 1,228,287 $ 30.06 * Excludes 21,364 and 28,000 restricted stock units vested during the years ended December 31, 2015 and 2014 , respectively. As of December 31, 2015 and 2014 restricted stock units vested for which the underlying common stock is yet to be issued are 149,364 and 128,000 , respectively. |
Performance Based Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Activity Under Company's Stock Plans | Performance restricted stock unit activity under the Company’s stock plans is shown below: Revenue Based PRSUs Market Condition Based PRSUs Number Weighted Avg Fair Value Number Weighted Avg Fair Value Outstanding at December 31, 2014 47,725 $ 25.63 47,725 $ 33.60 Granted 62,788 34.75 162,787 40.36 Vested — — — — Forfeited (3,300 ) 28.53 (3,300 ) 40.29 Outstanding at December 31, 2015 107,213 $ 30.88 207,212 $ 38.80 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Revenues Based on Geographical Information | The Company attributes the revenues to regions based upon location of its customers. Year ended December 31, 2015 2014 2013 Revenues, net United States $ 496,418 $ 368,870 $ 353,274 United Kingdom 108,868 101,789 92,601 Rest of World 23,206 28,619 32,577 $ 628,492 $ 499,278 $ 478,452 |
Fixed Assets, Net Based on Geographical Information | December 31, 2015 December 31, 2014 Fixed assets, net India $ 23,415 $ 24,186 United States 10,680 8,293 Philippines 11,285 12,391 Rest of World 2,611 499 $ 47,991 $ 45,369 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Use of Estimates Additional Information (Details) - Service Life $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / shares | |
Change in Accounting Estimate [Line Items] | |
Change in accounting estimate, effect on depreciation and amortization | $ (1,690) |
Change in accounting estimate, effect on net income | $ 1,016 |
Change in accounting estimate, increase (decrease) in earning per share basic and diluted (in dollars per share) | $ / shares | $ 0.03 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Summary of Revenues and Reimbursements Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Reduction in revenues related to reimbursement of transition related costs | $ 26,347 | ||
Revenues and reimbursements | $ 18,848 | $ 19,606 | $ 18,621 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Investments Additional Information (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Investments maturity period | Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments. |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Accounts Receivable Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 154 | $ 120 |
Unbilled accounts receivable | $ 29,589 | $ 16,735 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Summary of Estimated Lives Used in Determining Depreciation (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets (in years) | 30 years |
Minimum | Network equipment, computers and software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets (in years) | 3 years |
Minimum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets (in years) | 3 years |
Minimum | Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets (in years) | 3 years |
Minimum | Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets (in years) | 2 years |
Maximum | Network equipment, computers and software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets (in years) | 5 years |
Maximum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets (in years) | 8 years |
Maximum | Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets (in years) | 8 years |
Maximum | Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets (in years) | 5 years |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets (in years) | 3 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets (in years) | 15 years |
Leasehold benefits | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets (in years) | 3 years |
Leasehold benefits | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets (in years) | 8 years |
Developed technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets (in years) | 5 years |
Developed technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets (in years) | 10 years |
Non-compete agreements | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets (in years) | 1 year |
Non-compete agreements | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets (in years) | 2 years |
Trade names and trademarks | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets (in years) | 3 years |
Trade names and trademarks | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets (in years) | 5 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Share-Based Compensation Additional Information (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 4 years |
Revenue Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target shares an employee can earn (as a percent) | 200.00% |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based percentage (as a percent) | 100.00% |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based percentage (as a percent) | 50.00% |
Vesting period (in years) | 3 years |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based percentage (as a percent) | 50.00% |
Vesting period (in years) | 3 years |
Maximum | Revenue Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target shares an employee can earn (as a percent) | 200.00% |
Maximum | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target shares an employee can earn (as a percent) | 200.00% |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerators: | |||||||||||
Net income | $ 14,762 | $ 15,162 | $ 12,074 | $ 9,567 | $ 7,461 | $ 6,075 | $ 7,762 | $ 11,147 | $ 51,565 | $ 32,445 | $ 48,097 |
Denominators: | |||||||||||
Basic weighted average common shares outstanding (in shares) | 33,231,716 | 33,307,312 | 33,417,079 | 33,236,259 | 32,986,276 | 32,890,475 | 32,812,155 | 32,523,490 | 33,298,104 | 32,804,606 | 32,750,178 |
Dilutive effect of share based awards (in shares) | 880,236 | 831,987 | 1,092,760 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 34,272,731 | 34,180,635 | 34,207,973 | 34,051,971 | 33,761,462 | 33,676,665 | 33,673,669 | 33,428,544 | 34,178,340 | 33,636,593 | 33,842,938 |
Earnings Per Share: | |||||||||||
Basic (in dollars per share) | $ 0.44 | $ 0.46 | $ 0.36 | $ 0.29 | $ 0.23 | $ 0.18 | $ 0.24 | $ 0.34 | $ 1.55 | $ 0.99 | $ 1.47 |
Diluted (in dollars per share) | $ 0.43 | $ 0.44 | $ 0.35 | $ 0.28 | $ 0.22 | $ 0.18 | $ 0.23 | $ 0.33 | $ 1.51 | $ 0.96 | $ 1.42 |
Weighted average common shares considered anti-dilutive in computing diluted earnings per share (in shares) | 73,896 | 114,395 | 268,219 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Summary of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Cumulative currency translation adjustments | $ (68,063) | $ (55,553) |
Unrealized gain on cash flow hedges, net of taxes of $662 and $603 | 824 | 872 |
Retirement benefits, net of taxes of ($201) and ($277) | (86) | (828) |
Accumulated other comprehensive loss | (67,325) | (55,509) |
Unrealized gain / (loss) on cash flow hedges, taxes | 662 | 603 |
Retirement benefits, taxes | $ (201) | $ (277) |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 26,238 | $ 24,451 |
Derivative instruments | 1,226 | 2,385 |
Client liability account | 2,217 | 9,241 |
Other current liabilities | 4,569 | 4,129 |
Accrued expenses and other current liabilities | $ 34,250 | $ 40,206 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Summary of Non-current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Derivative instruments | $ 1,132 | $ 576 |
Unrecognized tax benefits | 3,066 | 2,878 |
Deferred rent | 6,515 | 5,977 |
Retirement benefits | 1,441 | 1,544 |
Other non-current liabilities | 5,501 | 1,895 |
Non-current liabilities | $ 17,655 | $ 12,870 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Summary of Other Income, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Interest and dividend income | $ 6,806 | $ 3,709 | $ 3,169 |
Interest expense | (1,338) | (369) | (564) |
Other, net | 221 | 263 | (58) |
Other income, net | $ 5,689 | $ 3,603 | $ 2,547 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - New Accounting Prouncements (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncement, Early Adoption, Effect | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Deferred tax assets, net current | $ (4,738) | $ (4,455) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Revenues
Segment Information - Revenues and Cost of Revenues for Company's Operations Management and Analytics and Business Transformation Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | |||||||||||
Revenues, net | $ 165,858 | $ 163,503 | $ 155,621 | $ 143,510 | $ 135,286 | $ 122,457 | $ 119,738 | $ 121,797 | $ 628,492 | $ 499,278 | $ 478,452 |
Cost of revenues (exclusive of depreciation and amortization) | 402,917 | 332,535 | 290,942 | ||||||||
Gross profit | 59,742 | 60,305 | 55,143 | 50,385 | 43,915 | 37,474 | 38,479 | 46,875 | 225,575 | 166,743 | 187,510 |
Operating expenses | 158,232 | 132,703 | 120,090 | ||||||||
Foreign exchange gain/(loss) and other income, net | 8,433 | 3,598 | (2,443) | ||||||||
Income tax expense | 24,211 | 5,193 | 16,880 | ||||||||
Net income | 14,762 | 15,162 | 12,074 | 9,567 | 7,461 | 6,075 | 7,762 | 11,147 | 51,565 | 32,445 | 48,097 |
Operations Management | |||||||||||
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | |||||||||||
Revenues, net | 129,397 | 128,043 | 125,048 | 123,853 | 116,292 | 104,511 | 104,614 | 108,246 | 506,341 | 433,663 | 432,916 |
Cost of revenues (exclusive of depreciation and amortization) | 324,079 | 286,493 | 260,241 | ||||||||
Gross profit | 47,333 | 46,566 | 44,239 | 44,124 | 38,075 | 32,651 | 34,151 | 42,293 | 182,262 | 147,170 | 172,675 |
Analytics | |||||||||||
Revenues and cost of revenues for Company's outsourcing services and transformation services segments [Line Items] | |||||||||||
Revenues, net | 36,461 | 35,460 | 30,573 | 19,657 | 18,994 | 17,946 | 15,124 | 13,551 | 122,151 | 65,615 | 45,536 |
Cost of revenues (exclusive of depreciation and amortization) | 78,838 | 46,042 | 30,701 | ||||||||
Gross profit | $ 12,409 | $ 13,739 | $ 10,904 | $ 6,261 | $ 5,840 | $ 4,823 | $ 4,328 | $ 4,582 | $ 43,313 | $ 19,573 | $ 14,835 |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summary of Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues, net | $ 165,858 | $ 163,503 | $ 155,621 | $ 143,510 | $ 135,286 | $ 122,457 | $ 119,738 | $ 121,797 | $ 628,492 | $ 499,278 | $ 478,452 |
Total Gross profit | 59,742 | 60,305 | 55,143 | 50,385 | 43,915 | 37,474 | 38,479 | 46,875 | 225,575 | 166,743 | 187,510 |
Net income | $ 14,762 | $ 15,162 | $ 12,074 | $ 9,567 | $ 7,461 | $ 6,075 | $ 7,762 | $ 11,147 | $ 51,565 | $ 32,445 | $ 48,097 |
Earnings Per Share: | |||||||||||
Basic (in dollars per share) | $ 0.44 | $ 0.46 | $ 0.36 | $ 0.29 | $ 0.23 | $ 0.18 | $ 0.24 | $ 0.34 | $ 1.55 | $ 0.99 | $ 1.47 |
Diluted (in dollars per share) | $ 0.43 | $ 0.44 | $ 0.35 | $ 0.28 | $ 0.22 | $ 0.18 | $ 0.23 | $ 0.33 | $ 1.51 | $ 0.96 | $ 1.42 |
Weighted-average number of shares used in computing earnings per share: | |||||||||||
Basic (in shares) | 33,231,716 | 33,307,312 | 33,417,079 | 33,236,259 | 32,986,276 | 32,890,475 | 32,812,155 | 32,523,490 | 33,298,104 | 32,804,606 | 32,750,178 |
Diluted (in shares) | 34,272,731 | 34,180,635 | 34,207,973 | 34,051,971 | 33,761,462 | 33,676,665 | 33,673,669 | 33,428,544 | 34,178,340 | 33,636,593 | 33,842,938 |
Note: | |||||||||||
Stock compensation expense | $ 3,768 | $ 4,471 | $ 3,553 | $ 4,255 | $ 2,493 | $ 2,376 | $ 1,966 | $ 4,176 | $ 16,047 | $ 11,011 | $ 11,832 |
Amortization of intangibles | 2,717 | 2,642 | 2,808 | 2,059 | 2,157 | 1,441 | 1,489 | 1,536 | 10,226 | 6,623 | 6,300 |
Operations Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues, net | 129,397 | 128,043 | 125,048 | 123,853 | 116,292 | 104,511 | 104,614 | 108,246 | 506,341 | 433,663 | 432,916 |
Total Gross profit | 47,333 | 46,566 | 44,239 | 44,124 | 38,075 | 32,651 | 34,151 | 42,293 | 182,262 | 147,170 | 172,675 |
Analytics | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues, net | 36,461 | 35,460 | 30,573 | 19,657 | 18,994 | 17,946 | 15,124 | 13,551 | 122,151 | 65,615 | 45,536 |
Total Gross profit | $ 12,409 | $ 13,739 | $ 10,904 | $ 6,261 | $ 5,840 | $ 4,823 | $ 4,328 | $ 4,582 | $ 43,313 | $ 19,573 | $ 14,835 |
Business Combinations, Goodwi54
Business Combinations, Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | Mar. 20, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Revenues, net | $ 165,858,000 | $ 163,503,000 | $ 155,621,000 | $ 143,510,000 | $ 135,286,000 | $ 122,457,000 | $ 119,738,000 | $ 121,797,000 | $ 628,492,000 | $ 499,278,000 | $ 478,452,000 | ||
Amortization expense | 2,717,000 | $ 2,642,000 | $ 2,808,000 | $ 2,059,000 | 2,157,000 | $ 1,441,000 | $ 1,489,000 | $ 1,536,000 | 10,226,000 | 6,623,000 | $ 6,300,000 | ||
Indefinite lived trade names and trademarks | 900,000 | $ 900,000 | $ 900,000 | $ 900,000 | $ 900,000 | ||||||||
Customer relationships | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Remaining amortization period (in years) | 6 years 3 months 2 days | ||||||||||||
Developed technology | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Remaining amortization period (in years) | 4 years 6 months | ||||||||||||
Non-compete agreements | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Remaining amortization period (in years) | 3 years 6 months | ||||||||||||
Leasehold benefits | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Remaining amortization period (in years) | 3 years 4 months 24 days | ||||||||||||
Trade names and trademarks | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Remaining amortization period (in years) | 6 years | ||||||||||||
RPM Direct LLC and RPM Data Solutions LLC | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Business acquisition, cash consideration | $ 46,925,000 | ||||||||||||
Working capital adjustments included in business acquisitions cash consideration | $ 75,000 | ||||||||||||
Business acquisition, restricted stock issued | 122,131 | ||||||||||||
Earnout payments, fair value | $ 4,060,000 | ||||||||||||
Business acquisition, amount of restricted stock units | $ 4,150,000 | ||||||||||||
Number of restricted stock units, granted (in shares) | 113,302 | ||||||||||||
Aggregate fair value of restricted stock units granted | $ 3,850,000 | ||||||||||||
Acquisition related costs | $ 303,000 | ||||||||||||
Revenues, net | 32,818,000 | ||||||||||||
RPM Direct LLC and RPM Data Solutions LLC | Customer relationships | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Useful life (in years) | 5 years 8 months 12 days | ||||||||||||
RPM Direct LLC and RPM Data Solutions LLC | Trade Names | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Useful life (in years) | 3 years | ||||||||||||
RPM Direct LLC and RPM Data Solutions LLC | Developed technology | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Useful life (in years) | 5 years | ||||||||||||
RPM Direct LLC and RPM Data Solutions LLC | Non-compete agreements | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Useful life (in years) | 4 years 7 months 6 days | ||||||||||||
RPM Direct LLC and RPM Data Solutions LLC | Maximum | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Earn out consideration payable | $ 23,000,000 | $ 23,000,000 | $ 23,000,000 | $ 23,000,000 |
Business Combinations, Goodwi55
Business Combinations, Goodwill and Intangible Assets - Summary of Purchase Price Allocation for Acquisitions (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 20, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 171,535 | $ 139,599 | $ 107,407 | |
RPM Direct LLC and RPM Data Solutions LLC | ||||
Business Acquisition [Line Items] | ||||
Net tangible assets | 1,790 | |||
Goodwill | 33,155 | |||
Total purchase price | 50,985 | |||
Escrow deposit | $ 4,125 | |||
RPM Direct LLC and RPM Data Solutions LLC | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 13,260 | |||
RPM Direct LLC and RPM Data Solutions LLC | Trade Names | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 680 | |||
RPM Direct LLC and RPM Data Solutions LLC | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 1,420 | |||
RPM Direct LLC and RPM Data Solutions LLC | Non-compete agreements | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 680 |
Business Combinations, Goodwi56
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 139,599 | $ 107,407 |
Currency translation adjustments | (1,219) | (529) |
Allocation on sale of a business unit | (500) | |
Ending Balance | 171,535 | 139,599 |
Gain (loss) on sale of business unit | (149) | |
Blue Slate Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | 4,554 | |
Overland Solutions Inc | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | 28,667 | |
RPM Direct LLC and RPM Data Solutions LLC | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | 33,155 | |
Ending Balance | 33,155 | |
Operations Management | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 122,814 | 90,622 |
Currency translation adjustments | (1,219) | (529) |
Allocation on sale of a business unit | (500) | |
Ending Balance | 121,595 | 122,814 |
Operations Management | Blue Slate Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | 4,554 | |
Operations Management | Overland Solutions Inc | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | 28,667 | |
Operations Management | RPM Direct LLC and RPM Data Solutions LLC | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | 0 | |
Analytics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 16,785 | 16,785 |
Ending Balance | 49,940 | $ 16,785 |
Analytics | RPM Direct LLC and RPM Data Solutions LLC | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | $ 33,155 |
Business Combinations, Goodwi57
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 87,554 | $ 71,694 |
Accumulated Amortization | (34,821) | (24,715) |
Net Carrying Amount | 52,733 | 46,979 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 64,816 | 51,598 |
Accumulated Amortization | (24,215) | (16,836) |
Net Carrying Amount | 40,601 | 34,762 |
Leasehold benefits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,789 | 2,927 |
Accumulated Amortization | (2,109) | (2,004) |
Net Carrying Amount | 680 | 923 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,234 | 10,814 |
Accumulated Amortization | (4,363) | (2,402) |
Net Carrying Amount | 7,871 | 8,412 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,045 | 1,365 |
Accumulated Amortization | (1,451) | (1,323) |
Net Carrying Amount | 594 | 42 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,670 | 4,990 |
Accumulated Amortization | (2,683) | (2,150) |
Net Carrying Amount | $ 2,987 | $ 2,840 |
Business Combinations, Goodwi58
Business Combinations, Goodwill and Intangible Assets - Estimated Amortization of Intangible Assets (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Business Combinations [Abstract] | |
2,016 | $ 10,869 |
2,017 | 10,792 |
2,018 | 10,469 |
2,019 | 9,707 |
2,020 | $ 9,996 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - Recurring - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Money market and mutual funds | $ 118,478 | $ 127,347 |
Derivative financial instruments | 4,184 | 4,579 |
Total | 122,662 | 131,926 |
Liabilities | ||
Derivative financial instruments | 2,358 | 2,961 |
Fair value of earn-out consideration | 4,060 | |
Total | 6,418 | 2,961 |
Level 1 | ||
Assets | ||
Money market and mutual funds | 118,478 | 127,347 |
Total | 118,478 | 127,347 |
Level 2 | ||
Assets | ||
Money market and mutual funds | 0 | |
Derivative financial instruments | 4,184 | 4,579 |
Total | 4,184 | 4,579 |
Liabilities | ||
Derivative financial instruments | 2,358 | 2,961 |
Total | 2,358 | 2,961 |
Level 3 | ||
Assets | ||
Money market and mutual funds | 0 | |
Liabilities | ||
Derivative financial instruments | 0 | $ 0 |
Fair value of earn-out consideration | 4,060 | |
Total | $ 4,060 |
Derivatives and Hedge Account60
Derivatives and Hedge Accounting - Additional Information (Detail) ÂŁ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015GBP (ÂŁ) | Dec. 31, 2014GBP (ÂŁ) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivative losses which could be reclassified into earnings within the next 12 months | $ 1,438 | |||
Maximum outstanding term of cash flow hedges (in months) | 45 months | |||
Gain/(losses) that reclassified from AOCI into earning for discontinued hedging transactions | $ 0 | $ 0 | ||
Derivatives Designated as Hedging Instruments | Derivatives in Cash Flow Hedging Relationships | Foreign Currency Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange contracts outstanding | 230,894 | 218,036 | ||
Derivatives not Designated as Hedging Instruments | Foreign Currency Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange contracts outstanding | $ 61,641 | $ 57,982 | ÂŁ 13,256 | ÂŁ 10,889 |
Derivatives and Hedge Account61
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Detail) - Foreign Currency Exchange Contracts - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 2,664 | $ 1,243 |
Derivatives Designated as Hedging Instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 1,175 | 3,193 |
Derivatives Designated as Hedging Instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 1,226 | 2,385 |
Derivatives Designated as Hedging Instruments | Other non current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 1,132 | 576 |
Derivatives not Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 345 | $ 143 |
Derivatives and Hedge Account62
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income (Detail) - Foreign Currency Exchange Contracts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives Designated as Hedging Instruments | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | $ (1,111) | $ 6,770 |
Foreign exchange gain/(loss) | Derivatives Designated as Hedging Instruments | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Reclassified from AOCI into Income (Effective Portion) | (1,117) | (7,140) |
Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 |
Foreign exchange gain/(loss) | Derivatives not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivatives | $ 862 | $ 3,685 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Owned Assets: | ||
Owned Assets, Gross | $ 143,517 | $ 127,433 |
Less: Accumulated depreciation and amortization | (96,079) | (82,947) |
Owned Assets, net | 47,438 | 44,486 |
Assets under capital leases: | ||
Capital leased assets, gross | 1,819 | 2,028 |
Less: Accumulated depreciation and amortization | (1,266) | (1,145) |
Assets under capital leases, net | 553 | 883 |
Fixed assets, net | 47,991 | 45,369 |
Network equipment, computers and software | ||
Owned Assets: | ||
Owned Assets, Gross | 95,245 | 83,140 |
Leasehold improvements | ||
Owned Assets: | ||
Owned Assets, Gross | 28,603 | 26,416 |
Assets under capital leases: | ||
Capital leased assets, gross | 877 | 961 |
Office furniture and equipment | ||
Owned Assets: | ||
Owned Assets, Gross | 14,000 | 12,218 |
Assets under capital leases: | ||
Capital leased assets, gross | 136 | 219 |
Buildings | ||
Owned Assets: | ||
Owned Assets, Gross | 1,202 | 1,262 |
Capital work in progress | ||
Owned Assets: | ||
Owned Assets, Gross | 3,140 | 3,029 |
Land | ||
Owned Assets: | ||
Owned Assets, Gross | 787 | 826 |
Motor vehicles | ||
Owned Assets: | ||
Owned Assets, Gross | 540 | 542 |
Assets under capital leases: | ||
Capital leased assets, gross | $ 806 | $ 848 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 21,239 | $ 21,405 | $ 18,617 |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2015USD ($)ClassOfCommonStock$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 30, 2014USD ($) | Nov. 07, 2013USD ($) | |
Equity, Class of Treasury Stock [Line Items] | ||||
Number of classes of common stock outstanding | ClassOfCommonStock | 1 | |||
Acquisition of restricted stock from employees in connection with withholding tax payments (in shares) | shares | 15,078 | 18,256 | ||
Withholding tax payments related to the vesting of restricted stock for total consideration | $ 484,000 | $ 459,000 | ||
Weighted average purchase price per share prior to the vesting date (in dollars per share) | $ / shares | $ 32.1 | $ 25.14 | ||
2014 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase of common stock authorized by board of directors up to | $ 20,000,000 | |||
Stock repurchase program, period start (year) | 2,015 | |||
Stock repurchase program, period end (year) | 2,017 | |||
2013 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase of common stock authorized by board of directors up to | $ 25,000,000 | |||
Common stock shares purchased under the repurchase program (in shares) | shares | 377,015 | 109,500 | ||
Common stock aggregate purchase price including commissions | $ 13,711,000 | $ 2,863,000 | ||
Common stock average purchase price per share (in dollars per share) | $ / shares | $ 36.37 | $ 26.14 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Oct. 24, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 23, 2015 |
Credit Facilities [Line Items] | |||||
Other short-term borrowings | $ 10,000,000 | $ 0 | |||
Repayments of debt | 10,000,000 | 0 | $ 0 | ||
Revolving Credit Facility | |||||
Credit Facilities [Line Items] | |||||
Revolving credit facility | $ 50,000,000 | $ 70,000,000 | |||
Debt instrument, term (in years) | 5 years | ||||
Option to increase additional credit facility | $ 50,000,000 | $ 50,000,000 | |||
Credit facility expiration date | Oct. 24, 2019 | ||||
Line of credit interest rate during period | 1.60% | ||||
Other short-term borrowings | $ 10,000,000 | ||||
Unamortized debt issuance costs | $ 368,000 | $ 460,000 | |||
Debt instrument, interest rate terms | Borrowings under the Credit Facility may be used for working capital, general corporate purposes and for acquisitions. The Company has an outstanding debt of $70,000 of which $10,000 is expected to be repaid within next twelve months and is included under “short-term borrowings” in the consolidated balance sheet. In connection with the financing, the Company incurred certain debt issuance costs, which are deferred and amortized as an adjustment to interest expense over the term of the Credit Facility. The unamortized debt issuance costs as of December 31, 2015 and December 31, 2014 was $368 and $460, respectively and is included under "other current assets" and “other assets” in the consolidated balance sheets. | ||||
Revolving Credit Facility | Minimum | |||||
Credit Facilities [Line Items] | |||||
Commitment fee percentage range on unused credit facility (as a percent) | 0.20% | ||||
Revolving Credit Facility | Maximum | |||||
Credit Facilities [Line Items] | |||||
Commitment fee percentage range on unused credit facility (as a percent) | 0.30% | ||||
Revolving Credit Facility | ABR Loans | |||||
Credit Facilities [Line Items] | |||||
Applicable interest rate on loans pegged to specified prime rate, minimum (as a percent) | 0.25% | ||||
Applicable interest rate on loans pegged to specified prime rate, maximum (as a percent) | 0.75% | ||||
Revolving Credit Facility | Eurodollar | |||||
Credit Facilities [Line Items] | |||||
Applicable interest rate on loans pegged to LIBO rate (applicable rate), minimum (as a percent) | 1.25% | ||||
Applicable interest rate on loans pegged to LIBO rate (applicable rate), maximum (as a percent) | 1.75% |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Change in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in projected benefit obligation: | |||
Benefit obligation at the beginning of the year | $ 7,563 | $ 6,567 | |
Service cost | 1,638 | 1,523 | $ 1,341 |
Interest cost | 550 | 559 | 444 |
Benefits paid | (851) | (749) | |
Actuarial (gain)/loss | (609) | 161 | |
Divestiture | 0 | (350) | |
Effect of exchange rate changes | (382) | (148) | |
Projected benefit obligation at the end of the year | 7,909 | 7,563 | $ 6,567 |
Unfunded amount–non-current | 1,441 | 1,544 | |
Unfunded amount–current | 1,545 | 1,267 | |
Total accrued liability | 2,986 | 2,811 | |
Accumulated benefit obligation | $ 5,537 | $ 5,034 |
Employee Benefit Plans - Net Gr
Employee Benefit Plans - Net Gratuity Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $ 1,638 | $ 1,523 | $ 1,341 |
Interest cost | 550 | 559 | 444 |
Expected return on plan assets | (385) | (172) | (164) |
Actuarial loss | 211 | 149 | 139 |
Net gratuity cost | $ 2,014 | $ 2,059 | $ 1,760 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Accumulated other comprehensive loss, expected to be recognized over the next fiscal year | $ 92 | ||
Percentage of discretionary contributions towards 401(k) Plan, Maximum (as a percent) | 3.00% | 3.00% | 3.00% |
Company's contribution to the 401(k) Plan | $ 1,907 | $ 1,503 | $ 1,147 |
Contribution to various defined contribution plans | $ 5,753 | $ 5,802 | $ 5,448 |
Employee Benefit Plans - Summ70
Employee Benefit Plans - Summary of Components Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Abstract] | ||
Net actuarial loss | $ 77 | $ 819 |
Net prior service cost | 9 | 9 |
Accumulated other comprehensive loss, net of tax | $ 86 | $ 828 |
Employee Benefit Plans - Summ71
Employee Benefit Plans - Summary of Weighted Average Actuarial Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate (as a percent) | 7.80% | 8.00% | 8.30% |
Rate of increase in compensation levels (as a percent) | 8.40% | 8.20% | 8.20% |
Expected long term rate of return on plan assets per annum (as a percent) | 9.00% | 9.00% | 9.00% |
Employee Benefit Plans - Summ72
Employee Benefit Plans - Summary of Expected Benefit Payments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,016 | $ 2,129 |
2,017 | 1,632 |
2,018 | 1,291 |
2,019 | 971 |
2,020 | 736 |
2021 to 2025 | $ 2,000 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the year | $ 4,752 | $ 2,156 |
Actual return | 355 | 259 |
Employer contribution | 903 | 2,567 |
Benefits paid | (851) | (105) |
Effect of exchange rate changes | (236) | (125) |
Plan assets at the ending of the year | $ 4,923 | 4,752 |
Benefit payments made directly by company | $ 644 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Capital Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Leases [Abstract] | ||
2,016 | $ 444 | |
2,017 | 190 | |
2,018 | 89 | |
2,019 | 28 | |
Total minimum lease payments | 751 | |
Less: amount representing interest | 89 | |
Present value of minimum lease payments | 662 | |
Less: current portion | 384 | $ 803 |
Long term capital lease obligation | $ 278 | $ 560 |
Leases - Future Minimum Lease75
Leases - Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring After December 31, 2014 (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 7,681 |
2,017 | 4,782 |
2,018 | 3,277 |
2,019 | 2,249 |
2,020 | 1,521 |
2021 and thereafter | 1,298 |
Total operating lease payments | $ 20,808 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Rent expense under both cancelable and non-cancelable operating leases | $ 19,943 | $ 18,884 | $ 17,384 |
Deferred rent | $ 7,066 | $ 6,544 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 25,045 | $ (4,785) | $ 24,056 |
Foreign | 50,731 | 42,423 | 40,921 |
Income before income taxes | $ 75,776 | $ 37,638 | $ 64,977 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision/(Benefit) Relating to Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current provision/(benefit): | |||
Domestic | $ 9,951 | $ (1,069) | $ 3,466 |
Foreign | 12,022 | 6,186 | 10,930 |
Total | 21,973 | 5,117 | 14,396 |
Deferred provision/(benefit): | |||
Domestic | 3,041 | 535 | 4,183 |
Foreign | (803) | (459) | (1,699) |
Total | 2,238 | 76 | 2,484 |
Income tax expense | $ 24,211 | $ 5,193 | $ 16,880 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense | $ 26,521 | $ 12,797 | $ 22,742 |
Change in valuation allowance | 19 | 64 | 0 |
Impact of tax holiday | (2,991) | (3,208) | (5,531) |
Foreign tax rate differential | (2,797) | (3,327) | (1,412) |
Deferred tax (benefit)/provision | (803) | (459) | (433) |
Unrecognized tax benefits and interest | 324 | (1,846) | 2,399 |
State taxes, net of Federal taxes | 1,327 | 593 | 601 |
Non-deductible expenses | 26 | 15 | 310 |
Prior year tax expense/(benefit) | 2,450 | 0 | (875) |
Other | 135 | 564 | (921) |
Income tax expense | $ 24,211 | $ 5,193 | $ 16,880 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Effective tax rates (as a percent) | 32.00% | 13.80% | |
Reversal of unrecognized tax benefit | $ 1,818 | $ 2,173 | |
Prior year tax expense/(benefit) | 2,450 | $ 0 | $ (875) |
Income tax rate reconciliation tax holiday change in amount | $ (217) | ||
Effective tax rate in Philippines post tax exemption (as a percent) | 5.00% | ||
Effect of diluted earnings per share, tax holiday (in dollars per share) | $ 0.09 | $ 0.10 | $ 0.16 |
Operating loss carryforward valuation allowance | $ 512 | $ 665 | |
Valuation allowance related to tax credit carry forward | 83 | 64 | |
Deferred income taxes provided for Company's share of undistributed net earnings of foreign operations | 0 | 0 | |
Undistributed net earnings of foreign operations | 261,804 | 222,292 | |
Unrecognized tax benefits | 2,797 | 2,761 | |
Recognized interest and penalties | 205 | 276 | |
Accrued interest on unrecognized tax benefits | $ 1,269 | 1,117 | |
First Five Years | |||
Income Taxes [Line Items] | |||
Tax exemption on profit (as a percent) | 100.00% | ||
Five to Ten Years | |||
Income Taxes [Line Items] | |||
Tax exemption on profit (as a percent) | 50.00% | ||
Expiration 2,032 | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | $ 9,063 | $ 25,300 | |
Operating loss carry forwards expiration date (year) | 2,032 |
Income Taxes - Summary of Com81
Income Taxes - Summary of Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Tax credit carry forward | $ 5,164 | $ 4,442 |
Depreciation and amortization | 3,777 | 4,371 |
Share-based compensation | 8,099 | 5,595 |
Accrued employee costs and other expenses | 3,079 | 2,715 |
Net operating loss carry forwards | 3,746 | 9,889 |
Unrealized exchange loss | 1,136 | 859 |
Deferred rent | 1,292 | 1,268 |
Others | 62 | 670 |
Deferred tax assets | 26,355 | 29,809 |
Valuation allowance | (595) | (729) |
Deferred tax assets | 25,760 | 29,080 |
Deferred tax liabilities: | ||
Unrealized exchange gain | 848 | 667 |
Intangible assets | 11,163 | 11,973 |
Deferred tax liabilities | 12,011 | 12,640 |
Net deferred tax assets | $ 13,749 | $ 16,440 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of January 1, 2015 | $ 2,761 | |
Increases related to prior year tax positions | 1,937 | |
Decreases related to prior year tax positions | (1,818) | $ (2,173) |
Increases related to current year tax positions | 0 | |
Decreases related to current year tax positions | 0 | |
Effect of exchange rate changes | (83) | |
Balance as of December 31, 2015 | $ 2,797 | $ 2,761 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2015 | Jun. 19, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiring period of equity options to employees (in years) | 10 years | |
Vesting period (in years) | 4 years | |
Year One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights (as a percent) | 10.00% | |
Year Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights (as a percent) | 20.00% | |
Year Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights (as a percent) | 30.00% | |
Year Four | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights (as a percent) | 40.00% | |
2015 Stock Options Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Increase in number of shares available for grant (in shares) | 1,700,000 | |
Number of shares available for grant (in shares) | 2,430,147 |
Stock Based Compensation - Cost
Stock Based Compensation - Costs Related to Company's Stock-Based Compensation Plan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | $ 3,768 | $ 4,471 | $ 3,553 | $ 4,255 | $ 2,493 | $ 2,376 | $ 1,966 | $ 4,176 | $ 16,047 | $ 11,011 | $ 11,832 |
Cost of revenue | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | 2,895 | 2,290 | 2,413 | ||||||||
General and administrative expenses | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | 6,077 | 4,350 | 5,077 | ||||||||
Selling and marketing expenses | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Stock-based compensation expenses | $ 7,075 | $ 4,371 | $ 4,342 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Stock Option Activity (Detail) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Options, Outstanding, beginning balance (in shares) | 1,433,179 | 1,956,515 | 2,454,634 |
Number of Options, Granted (in shares) | 0 | 9,794 | 14,301 |
Number of Options, Exercised (in shares) | (216,980) | (440,380) | (485,141) |
Number of Options, Forfeited (in shares) | (6,058) | (92,750) | (27,279) |
Number of Options, Outstanding, ending balance (in shares) | 1,210,141 | 1,433,179 | 1,956,515 |
Number of Options, Vested and exercisable at December 31, 2015 (in shares) | 1,135,278 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted-Average Exercise Price, Outstanding, beginning balance (in dollars per share) | $ 16.23 | $ 16.25 | $ 15.30 |
Weighted-Average Exercise Price, Granted (in dollars per share) | 0 | 27.62 | 26.76 |
Weighted-Average Exercise Price, Exercised (in dollars per share) | 15.55 | 14.67 | 11.32 |
Weighted-Average Exercise Price, Forfeited (in dollars per share) | 24.77 | 25.20 | 24.13 |
Weighted-Average Exercise Price, Outstanding, ending balance (in dollars per share) | 16.31 | $ 16.23 | $ 16.25 |
Weighted Average Exercise Price, Vested and exercisable at December 31, 2015 (in dollars per share) | $ 15.75 | ||
Aggregate Intrinsic Value, Outstanding, ending balance at December 31, 2015 | $ 34,638 | ||
Weighted-Average Remaining Contractual Life (Years), Outstanding at December 31, 2015 (in years) | 3 years 6 months | ||
Aggregate Intrinsic Value, Vested and exercisable at December 31, 2015 | $ 33,130 | ||
Weighted-Average Remaining Contractual Life (Years), Vested and exercisable at December 31, 2015 (in years) | 3 years 3 months 29 days |
Stock Based Compensation - St86
Stock Based Compensation - Stock Options Additional Information (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected dividend | 0.00% | ||
Employee service share-based compensation, nonvested awards, compensation not yet recognized, stock options | $ 148 | ||
Weighted average expected term (in years) | 1 month 10 days | ||
Weighted-average fair value of options granted (in dollars per share) | $ 9.77 | $ 10.07 | |
Total grant date fair value of option vested in period | $ 1,228 | $ 2,112 | $ 3,061 |
Intrinsic value of options exercised | $ 4,413 | $ 5,757 | $ 8,960 |
Stock Based Compensation - Comp
Stock Based Compensation - Company's Stock Options Outstanding and Stock Options Vested and Exercisable (Detail) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | shares | 1,210,141 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 16.31 |
Options Vested and Exercisable (in shares) | shares | 1,135,278 |
Options Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 15.75 |
$8.00 to $15.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 8 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 15 |
Options Outstanding (in shares) | shares | 546,543 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 10.06 |
Options Vested and Exercisable (in shares) | shares | 546,543 |
Options Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 10.06 |
$15.01 to $21.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 15.01 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 21 |
Options Outstanding (in shares) | shares | 322,661 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 18.33 |
Options Vested and Exercisable (in shares) | shares | 322,661 |
Options Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 18.33 |
$21.01 to $28.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower range limit (in dollars per share) | 21.01 |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 28 |
Options Outstanding (in shares) | shares | 340,937 |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 24.41 |
Options Vested and Exercisable (in shares) | shares | 266,074 |
Options Vested and Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 24.30 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Activity Under Company's Stock Plans (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Number, Outstanding, beginning balance (in shares) | 46,950 | 0 | 5,207 |
Number, Granted (in shares) | 122,131 | 46,950 | 0 |
Number, Vested (in shares) | (34,147) | 0 | (4,807) |
Number, Forfeited (in shares) | (5,296) | 0 | (400) |
Number, Outstanding, ending balance (in shares) | 129,638 | 46,950 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-Average Fair Value, Outstanding, beginning balance (in dollars per share) | $ 29.29 | $ 0 | $ 17.58 |
Weighted-Average Fair Value, Granted (in dollars per share) | 35.91 | 29.29 | 0 |
Weighted-Average Fair Value, Vested (in dollars per share) | 29.29 | 0 | 17.56 |
Weighted-Average Fair Value, Forfeited (in dollars per share) | 29.29 | 0 | 17.72 |
Weighted-Average Fair Value, Outstanding, ending balance (in dollars per share) | $ 35.53 | $ 29.29 | $ 0 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Number, Outstanding, beginning balance (in shares) | 1,189,691 | 1,144,442 | 1,025,911 |
Number, Granted (in shares) | 471,160 | 634,054 | 522,130 |
Number, Vested (in shares) | (348,086) | (436,660) | (300,316) |
Number, Forfeited (in shares) | (84,478) | (152,145) | (103,283) |
Number, Outstanding, ending balance (in shares) | 1,228,287 | 1,189,691 | 1,144,442 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-Average Fair Value, Outstanding, beginning balance (in dollars per share) | $ 26.54 | $ 24.95 | $ 21.36 |
Weighted-Average Fair Value, Granted (in dollars per share) | 34.99 | 26.26 | 29.37 |
Weighted-Average Fair Value, Vested (in dollars per share) | 25.24 | 22.04 | 20.35 |
Weighted-Average Fair Value, Forfeited (in dollars per share) | 27.89 | 26.28 | 25.04 |
Weighted-Average Fair Value, Outstanding, ending balance (in dollars per share) | $ 30.06 | $ 26.54 | $ 24.95 |
Restricted stock units vested for which underlying common stock to be issued (in shares) | 21,364,000 | 28,000,000 | |
Restricted stock units vested (in shares) | 149,364,000 | 128,000,000 |
Stock Based Compensation - Re89
Stock Based Compensation - Restricted Stock and RSU Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 20, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average fair value of restricted sotck and RSUs granted (in dollars per share) | $ 34.99 | $ 26.26 | $ 29.37 | |
Number of restricted stock units, granted (in shares) | 471,160 | 634,054 | 522,130 | |
Restricted Stock and Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 30,661 | |||
Cost not yet recognized, period for recognition (in years) | 2 years 6 months 11 days | |||
Weighted-average fair value of restricted sotck and RSUs granted (in dollars per share) | $ 35.18 | $ 26.47 | $ 29.37 | |
Number of restricted stock units, vested | $ 12,620 | $ 11,393 | $ 9,126 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average fair value of restricted sotck and RSUs granted (in dollars per share) | $ 35.91 | $ 29.29 | $ 0 | |
Number of restricted stock units, granted (in shares) | 122,131 | 46,950 | 0 | |
Revenue Based PRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average fair value of restricted sotck and RSUs granted (in dollars per share) | $ 34.75 | |||
Number of restricted stock units, granted (in shares) | 62,788 | |||
Market Condition Based PRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average fair value of restricted sotck and RSUs granted (in dollars per share) | $ 40.36 | |||
Number of restricted stock units, granted (in shares) | 162,787 | |||
RPM Direct LLC and RPM Data Solutions LLC | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock units, granted (in shares) | 113,302 | |||
RPM Direct LLC and RPM Data Solutions LLC | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock units, granted (in shares) | 122,131 |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Based Stock Awards Additional Information (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 26, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
Year One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights (as a percent) | 10.00% | |||
Year Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights (as a percent) | 20.00% | |||
Year Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights (as a percent) | 30.00% | |||
Revenue Based PRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target shares an employee can earn (as a percent) | 200.00% | |||
Number, Granted (in shares) | 62,788 | |||
Revenue Based PRSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target shares an employee can earn (as a percent) | 200.00% | |||
Market Condition Based PRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number, Granted (in shares) | 162,787 | |||
Performance Based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 7,661 | |||
Cost not yet recognized, period for recognition (in years) | 1 year 10 months 6 days | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number, Granted (in shares) | 471,160 | 634,054 | 522,130 | |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance based percentage (as a percent) | 100.00% | |||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance based percentage (as a percent) | 50.00% | |||
Vesting period (in years) | 3 years | |||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | Year One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights (as a percent) | 33.33% | |||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | Year Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights (as a percent) | 33.33% | |||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | Year Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights (as a percent) | 33.33% | |||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance based percentage (as a percent) | 50.00% | |||
Vesting period (in years) | 3 years | |||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target shares an employee can earn (as a percent) | 200.00% | |||
Subsequent Event | Performance Based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number, Granted (in shares) | 125,000 | |||
Subsequent Event | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number, Granted (in shares) | 380,000 |
Stock Based Compensation - Pe91
Stock Based Compensation - Performance Restricted Stock Activity (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Revenue Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, Outstanding, beginning balance (in shares) | shares | 47,725 |
Number, Granted (in shares) | shares | 62,788 |
Number, Vested (in shares) | shares | 0 |
Number, Forfeited (in shares) | shares | (3,300) |
Number, Outstanding, ending balance (in shares) | shares | 107,213 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Fair Value, Outstanding, beginning balance (in dollars per share) | $ / shares | $ 25.63 |
Weighted-Average Fair Value, Granted (in dollars per share) | $ / shares | 34.75 |
Weighted-Average Fair Value, Vested (in dollars per share) | $ / shares | 0 |
Weighted-Average Fair Value, Forfeited (in dollars per share) | $ / shares | 28.53 |
Weighted-Average Fair Value, Outstanding, ending balance (in dollars per share) | $ / shares | $ 30.88 |
Market Condition Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, Outstanding, beginning balance (in shares) | shares | 47,725 |
Number, Granted (in shares) | shares | 162,787 |
Number, Vested (in shares) | shares | 0 |
Number, Forfeited (in shares) | shares | (3,300) |
Number, Outstanding, ending balance (in shares) | shares | 207,212 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Fair Value, Outstanding, beginning balance (in dollars per share) | $ / shares | $ 33.60 |
Weighted-Average Fair Value, Granted (in dollars per share) | $ / shares | 40.36 |
Weighted-Average Fair Value, Vested (in dollars per share) | $ / shares | 0 |
Weighted-Average Fair Value, Forfeited (in dollars per share) | $ / shares | 40.29 |
Weighted-Average Fair Value, Outstanding, ending balance (in dollars per share) | $ / shares | $ 38.80 |
Geographical Information - Reve
Geographical Information - Revenues Based on Geographical Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues, net | |||||||||||
Revenues, net | $ 165,858 | $ 163,503 | $ 155,621 | $ 143,510 | $ 135,286 | $ 122,457 | $ 119,738 | $ 121,797 | $ 628,492 | $ 499,278 | $ 478,452 |
United States | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 496,418 | 368,870 | 353,274 | ||||||||
United Kingdom | |||||||||||
Revenues, net | |||||||||||
Revenues, net | 108,868 | 101,789 | 92,601 | ||||||||
Rest of World | |||||||||||
Revenues, net | |||||||||||
Revenues, net | $ 23,206 | $ 28,619 | $ 32,577 |
Geographical Information - Fixe
Geographical Information - Fixed Assets, Net Based on Geographical Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fixed assets, net | ||
Fixed assets, net | $ 47,991 | $ 45,369 |
India | ||
Fixed assets, net | ||
Fixed assets, net | 23,415 | 24,186 |
United States | ||
Fixed assets, net | ||
Fixed assets, net | 10,680 | 8,293 |
Philippines | ||
Fixed assets, net | ||
Fixed assets, net | 11,285 | 12,391 |
Rest of World | ||
Fixed assets, net | ||
Fixed assets, net | $ 2,611 | $ 499 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments, net of advances | $ 5,800 | |
Export-oriented units established (as a percent) | 100.00% | |
Transfer pricing issues starting period (year) | 2,003 | |
Transfer pricing issues ending period (year) | 2,012 | |
Permanent establishment issues starting period (year) | 2,003 | |
Permanent establishment issues ending period (year) | 2,007 | |
Aggregate disputed amount amount related to transfer pricing and permanent establishment | $ 21,360 | $ 22,866 |
Total bank guarantees and deposits in respect of contingencies | 14,668 | 14,666 |
Amounts paid as deposits in respect of contingencies | 12,665 | 12,564 |
Bank guarantee issued | $ 2,003 | $ 2,102 |