Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 12, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | EPAM Systems, Inc. | ||
Trading Symbol | EPAM | ||
Entity Central Index Key | 1,352,010 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 54,177,444 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Public Float | $ 6,392 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 770,560 | $ 582,585 |
Accounts receivable, net of allowance of $1,557 and $1,186, respectively | 297,685 | 265,639 |
Unbilled revenues | 104,652 | 86,500 |
Prepaid and other current assets | 26,171 | 25,309 |
Total current assets | 1,199,068 | 960,033 |
Property and equipment, net | 102,646 | 86,419 |
Intangible assets, net | 57,065 | 44,511 |
Goodwill | 166,832 | 119,531 |
Deferred tax assets | 69,983 | 24,974 |
Other noncurrent assets | 16,208 | 14,788 |
Total assets | 1,611,802 | 1,250,256 |
Current liabilities | ||
Accounts payable | 7,444 | 5,574 |
Accrued expenses and other current liabilities | 127,937 | 89,812 |
Due to employees | 49,683 | 38,757 |
Deferred compensation due to employees | 9,920 | 5,964 |
Taxes payable, current | 67,845 | 40,860 |
Total current liabilities | 262,829 | 180,967 |
Long-term debt | 25,031 | 25,033 |
Taxes payable, noncurrent | 43,685 | 59,874 |
Other noncurrent liabilities | 17,661 | 9,435 |
Total liabilities | 349,206 | 275,309 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value; 160,000,000 authorized; 54,099,927 and 53,003,420 shares issued, 54,080,192 and 52,983,685 shares outstanding at December 31, 2018 and December 31, 2017, respectively | 54 | 53 |
Additional paid-in capital | 544,700 | 473,874 |
Retained earnings | 759,533 | 518,820 |
Treasury stock | (177) | (177) |
Accumulated other comprehensive loss | (41,514) | (17,623) |
Total stockholders’ equity | 1,262,596 | 974,947 |
Total liabilities and stockholders’ equity | $ 1,611,802 | $ 1,250,256 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Accounts receivable allowance | $ 1,557 | $ 1,186 |
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 54,099,927 | 53,003,420 |
Common stock, shares outstanding | 54,080,192 | 52,983,685 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||||
Income Statement [Abstract] | |||||||||||||||||||||
Revenues | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 399,297 | $ 377,523 | $ 348,977 | $ 324,651 | $ 1,842,912 | $ 1,450,448 | $ 1,160,132 | ||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 319,031 | 301,081 | 289,175 | 277,634 | 254,121 | 239,369 | 220,132 | 207,730 | 1,186,921 | 921,352 | 737,186 | ||||||||||
Selling, general and administrative expenses | 97,447 | 93,226 | 93,273 | 89,641 | 85,430 | 81,732 | 81,143 | 79,283 | 373,587 | 327,588 | 265,863 | ||||||||||
Depreciation and amortization expense | 10,183 | 9,319 | 8,962 | 8,176 | 7,696 | 7,174 | 7,020 | 6,672 | 36,640 | 28,562 | 23,387 | ||||||||||
Income from operations | 78,270 | 64,560 | 54,237 | 48,697 | 52,050 | 49,248 | 40,682 | 30,966 | 245,764 | 172,946 | 133,696 | ||||||||||
Interest and other income, net | 1,080 | 1,941 | 1,052 | (551) | 1,799 | 1,416 | 802 | 584 | 3,522 | 4,601 | 4,848 | ||||||||||
Foreign exchange gain/(loss) | (582) | (514) | 1,830 | (247) | (1,772) | (77) | 1,562 | (2,955) | 487 | (3,242) | (12,078) | ||||||||||
Income before provision for income taxes | 78,768 | 65,987 | 57,119 | 47,899 | 52,077 | 50,587 | 43,046 | 28,595 | 249,773 | 174,305 | 126,466 | ||||||||||
Provision for income taxes | 18,803 | 369 | 6,864 | (16,519) | 82,951 | 7,953 | 5,687 | 4,954 | 9,517 | 101,545 | 27,200 | ||||||||||
Net income | 59,965 | 65,618 | 50,255 | 64,418 | (30,874) | 42,634 | 37,359 | 23,641 | 240,256 | 72,760 | 99,266 | ||||||||||
Foreign currency translation adjustments, net of tax | (21,338) | 20,065 | (2,538) | ||||||||||||||||||
Unrealized loss on cash-flow hedging instruments, net of tax | (2,553) | 0 | 0 | ||||||||||||||||||
Comprehensive income | $ 52,798 | $ 63,426 | $ 32,345 | $ 67,796 | $ (27,449) | $ 48,337 | $ 41,910 | $ 30,027 | $ 216,365 | $ 92,825 | $ 96,728 | ||||||||||
Net income per share: | |||||||||||||||||||||
Basic (in dollars per share) | $ 1.11 | [1] | $ 1.22 | [1] | $ 0.94 | [1] | $ 1.21 | [1] | $ (0.58) | [1],[2] | $ 0.81 | [1] | $ 0.72 | [1] | $ 0.46 | [1] | $ 4.48 | [1] | $ 1.40 | [1] | $ 1.97 |
Diluted (in dollars per share) | $ 1.05 | [1] | $ 1.15 | [1] | $ 0.89 | [1] | $ 1.15 | [1] | $ (0.58) | [1],[2] | $ 0.77 | [1] | $ 0.68 | [1] | $ 0.44 | [1] | $ 4.24 | [1] | $ 1.32 | [1] | $ 1.87 |
Shares used in calculation of net income per share: | |||||||||||||||||||||
Basic (in shares) | 53,623 | 52,077 | 50,309 | ||||||||||||||||||
Diluted (in shares) | 56,673 | 54,984 | 53,215 | ||||||||||||||||||
[1] | (1)Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. | ||||||||||||||||||||
[2] | (2)Due to the net loss during the three months ended December 31, 2017, zero incremental shares are included in the calculation of diluted loss per share because of their antidilutive effect. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Common Stock2012 Directors Plan | Common StockRestricted Stock Units (RSUs) | Additional Paid-in Capital | Additional Paid-in CapitalRestricted Stock Units (RSUs) | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss)/ Income |
Balance, beginning of period at Dec. 31, 2015 | $ 613,223 | $ 49 | $ 303,363 | $ 345,054 | $ (35,150) | ||||
Balance, beginning of period (in shares) at Dec. 31, 2015 | 50,166,537 | ||||||||
Treasury stock, beginning of period at Dec. 31, 2015 | $ (93) | ||||||||
Treasury stock, beginning of period (in shares) at Dec. 31, 2015 | 10,507 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Forfeiture of stock issued in connection with acquisition | 84 | $ (84) | |||||||
Forfeiture of stock issued in connection with acquisition (in shares) | 9,228 | (9,228) | |||||||
Stock-based compensation expense | 46,100 | 46,100 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract] | |||||||||
Stock issued (in shares) | 6,510 | ||||||||
Stock units vested, net of shares withheld for employee taxes (in shares) | 38,064 | ||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures [Abstract] | |||||||||
Stock units vested, net of shares withheld for employee taxes | 2,069 | $ 2,069 | |||||||
Proceeds from stock option exercises | 18,028 | $ 1 | 18,027 | ||||||
Proceeds from stock options exercises (in shares) | 895,804 | ||||||||
Excess tax benefits | 5,264 | 5,264 | |||||||
Foreign currency translation adjustments | (2,538) | (2,538) | |||||||
Foreign currency translation adjustments, net of tax | (2,538) | ||||||||
Change in unrealized gains and losses on cash flow hedges, net of tax | 0 | ||||||||
Net income | 99,266 | 99,266 | |||||||
Balance, end of period at Dec. 31, 2016 | 781,412 | $ 50 | 374,907 | 444,320 | (37,688) | ||||
Balance, end of period (in shares) at Dec. 31, 2016 | 51,097,687 | ||||||||
Treasury stock, end of period at Dec. 31, 2016 | $ (177) | ||||||||
Treasury stock, end of period (in shares) at Dec. 31, 2016 | 19,735 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation expense | 48,173 | 48,173 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract] | |||||||||
Stock units vested (in shares) | 140,043 | ||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures [Abstract] | |||||||||
Stock units withheld for employee taxes | (3,300) | (3,300) | |||||||
Stock units withheld for employee taxes (in shares) | (43,479) | ||||||||
Proceeds from stock option exercises | 54,097 | $ 3 | 54,094 | ||||||
Proceeds from stock options exercises (in shares) | 1,789,434 | ||||||||
Foreign currency translation adjustments | 20,065 | 20,065 | |||||||
Foreign currency translation adjustments, net of tax | 20,065 | ||||||||
Change in unrealized gains and losses on cash flow hedges, net of tax | 0 | ||||||||
Cumulative effect of the adoption of ASU | 1,740 | ||||||||
Cumulative effect of the adoption of ASU | ASU 2016-09 | 1,740 | ||||||||
Net income | 72,760 | 72,760 | |||||||
Balance, end of period at Dec. 31, 2017 | $ 974,947 | $ 53 | 473,874 | 518,820 | (17,623) | ||||
Balance, end of period (in shares) at Dec. 31, 2017 | 52,983,685 | 52,983,685 | |||||||
Treasury stock, end of period at Dec. 31, 2017 | $ (177) | ||||||||
Treasury stock, end of period (in shares) at Dec. 31, 2017 | 19,735 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation expense | $ 44,279 | 44,279 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract] | |||||||||
Stock units vested (in shares) | 222,675 | ||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures [Abstract] | |||||||||
Stock units withheld for employee taxes | (8,131) | (8,131) | |||||||
Stock units withheld for employee taxes (in shares) | (71,334) | ||||||||
Proceeds from stock option exercises | 34,679 | $ 1 | 34,678 | ||||||
Proceeds from stock options exercises (in shares) | 945,166 | ||||||||
Foreign currency translation adjustments, net of tax | (21,338) | (21,338) | |||||||
Change in unrealized gains and losses on cash flow hedges, net of tax | (2,553) | (2,553) | |||||||
Cumulative effect of the adoption of ASU | 457 | ||||||||
Cumulative effect of the adoption of ASU | ASU 2014-09 | 457 | ||||||||
Net income | 240,256 | 240,256 | |||||||
Balance, end of period at Dec. 31, 2018 | $ 1,262,596 | $ 54 | $ 544,700 | $ 759,533 | $ (41,514) | ||||
Balance, end of period (in shares) at Dec. 31, 2018 | 54,080,192 | 54,080,192 | |||||||
Treasury stock, end of period at Dec. 31, 2018 | $ (177) | ||||||||
Treasury stock, end of period (in shares) at Dec. 31, 2018 | 19,735 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 240,256 | $ 72,760 | $ 99,266 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 36,640 | 28,562 | 23,387 |
Bad debt expense | 848 | 51 | 1,539 |
Deferred taxes | (48,000) | 12,561 | (3,304) |
Stock-based compensation expense | 59,188 | 52,407 | 49,244 |
Excess tax benefit on stock-based compensation plans | 0 | 0 | (5,264) |
Other | (1,712) | (4,010) | 6,228 |
(Increase)/decrease in operating assets: | |||
Accounts receivable | (31,005) | (58,745) | (30,612) |
Unbilled revenues | (15,897) | (22,743) | 34,777 |
Prepaid expenses and other assets | (8,432) | 1,061 | (2,391) |
Increase/(decrease) in operating liabilities: | |||
Accounts payable | (772) | 1,221 | 741 |
Accrued expenses and other liabilities | 41,929 | 37,282 | (13,926) |
Due to employees | 1,535 | 1,933 | 5,261 |
Taxes payable | 17,640 | 70,480 | 2,271 |
Net cash provided by operating activities | 292,218 | 192,820 | 167,217 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (37,574) | (29,806) | (29,317) |
Decrease in time deposits, net | 418 | 0 | 29,597 |
Acquisition of businesses, net of cash acquired (Note 2) | (74,268) | (6,810) | (5,500) |
Other investing activities, net | (699) | 465 | (4,100) |
Net cash used in investing activities | (112,123) | (36,151) | (9,320) |
Cash flows from financing activities: | |||
Proceeds from stock option exercises | 34,845 | 53,984 | 17,996 |
Excess tax benefit on stock-based compensation plans | 0 | 0 | 5,264 |
Payments of withholding taxes related to net share settlements of restricted stock units | (7,747) | (3,194) | (539) |
Proceeds from debt (Note 8) | 0 | 25,000 | 20,000 |
Repayment of debt (Note 8) | (3,494) | (25,103) | (30,129) |
Acquisition of businesses, deferred consideration (Note 2) | 0 | 0 | (2,260) |
Other financing activities, net | (603) | (941) | 135 |
Net cash provided by financing activities | 23,001 | 49,746 | 10,467 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (14,240) | 11,776 | (3,387) |
Net increase in cash, cash equivalents and restricted cash | 188,856 | 218,191 | 164,977 |
Cash, cash equivalents and restricted cash, beginning of period | 582,855 | 364,664 | 199,687 |
Cash, cash equivalents and restricted cash, end of period | 771,711 | 582,855 | 364,664 |
Supplemental disclosures of cash flow information: | |||
Income taxes | 40,437 | 26,669 | 37,488 |
Bank interest | 777 | 548 | 566 |
Supplemental disclosure of non-cash investing and financing activities | |||
Acquisition-date fair value of contingent consideration issued for acquisition of businesses | $ 8,390 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 770,560 | $ 582,585 | $ 362,025 |
Restricted Cash and Cash Equivalents [Abstract] | |||
Total restricted cash | 1,151 | 270 | 2,639 |
Total cash, cash equivalents and restricted cash | 771,711 | 582,855 | 364,664 |
Prepaid and Other Current Assets | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Restricted cash current | 14 | 91 | 2,400 |
Other Noncurrent Assets | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Restricted cash noncurrent | $ 1,137 | $ 179 | $ 239 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading global provider of digital platform engineering and software development services to customers located around the world, primarily in North America, Europe, Asia and Australia. Our industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as other industries in which we are continuously growing. The Company is incorporated in Delaware with headquarters in Newtown, PA. Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM and its subsidiaries. All intercompany balances and transactions have been eliminated. Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the financial statements. Cash and Cash Equivalents — Cash equivalents are short-term, highly liquid investments that are readily convertible into cash, with maturities of three months or less at the date acquired. Accounts Receivable — Accounts receivable are stated net of allowance for doubtful accounts. Outstanding accounts receivable are reviewed periodically and allowances are provided when management believes it is probable that such balances will not be collected within a reasonable time. The allowance for doubtful accounts is determined by evaluating the relative creditworthiness of each customer, historical collections experience and other information, including the aging of the receivables. Accounts receivable are generally written off when they are deemed uncollectible. Bad debts are recorded based on historical experience and management’s evaluation of accounts receivable. Property and Equipment — Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets generally ranging from two to fifty years. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. Maintenance and repairs are expensed as incurred. Business Combinations — The Company accounts for its business combinations using the acquisition accounting method, which requires it to determine the fair value of net assets acquired and the related goodwill and other intangible assets in accordance with the FASB ASC Topic 805, Business Combinations . The Company identifies and attributes fair values and estimated lives to the intangible assets acquired and allocates the total cost of an acquisition to the underlying net assets based on their respective estimated fair values. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and involves the use of significant estimates, including projections of future cash inflows and outflows, discount rates, asset lives and market multiples. There are different valuation models for each component, the selection of which requires considerable judgment. These determinations will affect the amount of amortization expense recognized in future periods. The Company bases its fair value estimates on assumptions it believes are reasonable, but recognizes that the assumptions are inherently uncertain. All acquisition-related costs, other than the costs to issue debt or equity securities, are accounted for as expenses in the period in which they are incurred. Changes in the fair value of contingent consideration arrangements that are not measurement period adjustments are recognized in earnings. The acquired assets typically include customer relationships, trade names, non-competition agreements, and assembled workforce and, as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. Long-Lived Assets — Long-lived assets, such as property and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the carrying value of an asset is more than the sum of the undiscounted expected future cash flows, an impairment is recognized. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill and other intangible assets that have indefinite useful lives are accounted for in accordance with the FASB ASC 350, Intangibles — Goodwill and Other . The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31st, and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is an operating segment or one level below. The Company does not have intangible assets other than goodwill that have indefinite useful lives. Derivative Financial Instruments — The Company enters into derivative financial instruments to manage exposure to fluctuations in certain foreign currencies. During 2018, for accounting purposes, these foreign currency forward contracts became designated as hedges, as defined under FASB ASC Topic 815, Derivatives and Hedging . The Company measures these foreign currency derivative contracts at fair value on a recurring basis utilizing Level 2 inputs. The Company records changes in the fair value of these hedges in accumulated other comprehensive income/(loss) until the forecasted transaction occurs. When the forecasted transaction occurs, the Company reclassifies the related gain or loss on the cash flow hedge to cost of revenues (exclusive of depreciation and amortization). In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the Company reclassifies the gain or loss on the underlying hedge from accumulated other comprehensive income/(loss) into income. If the Company does not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in income. The cash flow impact of derivatives identified as hedging instruments is reflected as cash flows from operating activities. The cash flow impact of derivatives not identified as hedging instruments is reflected as cash flows from investing activities. Fair Value of Financial Instruments — The Company makes assumptions about fair values of its financial assets and liabilities in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement , and utilizes the following fair value hierarchy in determining inputs used for valuation: Level 1 — Quoted prices for identical assets or liabilities in active markets. Level 2 — Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. Level 3 — Unobservable inputs reflecting management’s view about the assumptions that market participants would use in pricing the asset or liability. Where the fair values of financial assets and liabilities recorded in the consolidated balance sheets cannot be derived from an active market, they are determined using a variety of valuation techniques. These valuation techniques include a net present value technique, comparison to similar instruments with market observable inputs, option pricing models and other relevant valuation models. To the extent possible, observable market data is used as inputs into these models but when it is not feasible, a degree of judgment is required to establish fair values. Changes in the fair value of liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 11 “Fair Value Measurements.” Revenue Recognition — Effective January 1, 2018, the Company adopted the new Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) as amended using the modified retrospective method. The standard effectively replaced previously existing revenue recognition guidance (Topic 605) and requires entities to recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services as well as requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company applied a practical expedient to aggregate the effect of all contract modifications that occurred before the adoption date. The following table summarizes the cumulative effect of adopting Topic 606 using the modified retrospective method of adoption as of January 1, 2018: Balance as of Adjustments Balance as of Balance Sheet Assets Unbilled revenues $ 86,500 $ (78 ) $ 86,422 Deferred tax assets $ 24,974 $ (173 ) $ 24,801 Liabilities Accrued expenses and other current liabilities $ 89,812 $ (708 ) $ 89,104 Stockholders’ equity Retained earnings $ 518,820 $ 457 $ 519,277 The following tables summarize the impacts of changes in accounting policies after adoption of Topic 606 on the Company’s consolidated financial statements for the year ended December 31, 2018 , which primarily resulted from deferring the timing of revenue recognition for contracts that were previously recognized on a cash basis and recognizing revenues from certain license agreements at a point-in-time rather than over time: As of December 31, 2018 As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Balance Sheet Liabilities Accrued expenses and other current liabilities $ 127,937 $ 127,690 $ 247 Other noncurrent liabilities $ 17,661 $ 17,716 $ (55 ) Stockholders’ equity Retained earnings $ 759,533 $ 759,725 $ (192 ) Year Ended December 31, 2018 As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Income Statement Revenues $ 1,842,912 $ 1,843,159 $ (247 ) Income from operations $ 245,764 $ 246,011 $ (247 ) Provision for income taxes $ 9,517 $ 9,572 $ (55 ) Net income $ 240,256 $ 240,448 $ (192 ) For the year ended December 31, 2018 The Company recognizes revenues when control of goods or services is passed to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Such control may be transferred over time or at a point in time depending on satisfaction of obligations stipulated by the contract. Consideration expected to be received may consist of both fixed and variable components and is allocated to each separately identifiable performance obligation based on the performance obligation’s relative standalone selling price. Variable consideration usually takes the form of volume-based discounts, service level credits, price concessions or incentives. Determining the estimated amount of such variable consideration involves assumptions and judgment that can have an impact on the amount of revenues reported. The Company derives revenues from a variety of service arrangements, which have been evolving to provide more customized and integrated solutions to customers by combining software engineering with customer experience design, business consulting and technology innovation services. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. The Company generates the majority of its revenues under time-and-material contracts, which are billed using hourly, daily or monthly rates to determine the amounts to be charged directly to the customer. EPAM applies a practical expedient and revenues related to time-and-material contracts are recognized based on the right to invoice for services performed. Fixed-price contracts include maintenance and support arrangements which may exceed one year in duration. Maintenance and support arrangements generally relate to the provision of ongoing services and revenues for such contracts are recognized ratably over the expected service period. Fixed-price contracts also include application development arrangements, where progress towards satisfaction of the performance obligation is measured using input or output methods and input methods are used only when there is a direct correlation between hours incurred and the end product delivered. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. Revenues from licenses which have significant stand-alone functionality are recognized at a point in time when control of the license is transferred to the customer. Revenues from licenses which do not have stand-alone functionality are recognized over time. If there is an uncertainty about the receipt of payment for the services, revenue recognition is deferred until the uncertainty is sufficiently resolved. The Company applies a practical expedient and does not assess the existence of a significant financing component if the period between transfer of the service to a customer and when the customer pays for that service is one year or less. The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. For the years ended December 31, 2017 and 2016 The Company recognized revenue when the following criteria were met: (1) persuasive evidence of an arrangement existed; (2) delivery had occurred; (3) the sales price was fixed or determinable; and (4) collectability was reasonably assured. Determining whether and when some of these criteria had been satisfied often involved assumptions and judgments that could have had a significant impact on the timing and amount of revenue reported. The Company derived its revenues from a variety of service offerings, which represent specific competencies of its IT professionals. Contracts for these services have different terms and conditions based on the scope, deliverables, and complexity of the engagement, which require management to make judgments and estimates in determining the appropriate revenue recognition. Fees for these contracts may have been in the form of time-and-materials or fixed-price arrangements. If there was uncertainty about the project completion or receipt of payment for the services, revenue was deferred until the uncertainty was sufficiently resolved. At the time revenue was recognized, the Company provided for any contractual deductions and reduced revenue accordingly. The Company reported gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. The Company deferred amounts billed to its customers for revenues not yet earned. Such amounts were anticipated to be recorded as revenues when services were performed in subsequent periods. Unbilled revenue was recorded when services have been provided but billed subsequent to the period end in accordance with the contract terms. The majority of the Company’s revenues ( 90.3% of revenues in 2017 and 88.2% in 2016) were generated under time-and-material contracts whereby revenues were recognized as services were performed with the corresponding cost of providing those services reflected as cost of revenues. The majority of such revenues were billed using hourly, daily or monthly rates as actual time was incurred on the project. Revenues from fixed-price contracts ( 8.3% of revenues in 2017 and 10.4% in 2016) included fixed-price maintenance and support arrangements, which may have exceeded one year in duration and revenues from maintenance and support arrangements were generally recognized ratably over the expected service period. Fixed-price contracts also included application development arrangements and revenues from these arrangements were primarily determined using the proportional performance method. In cases where final acceptance of the product, system, or solution was specified by the customer, and the acceptance criteria were not objectively determinable to have been met as the services were provided, revenues were deferred until all acceptance criteria had been met. In the absence of a sufficient basis to measure progress towards completion, revenue was recognized upon receipt of final acceptance from the customer. Assumptions, risks and uncertainties inherent in the estimates used in the application of the proportional performance method of accounting could have affected the amount of revenues, receivables and deferred revenues at each reporting period. Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries, bonuses, fringe benefits, stock-based compensation expense, project related travel costs and fees for subcontractors that are assigned to customer projects. Salaries and other compensation expenses of our revenue generating professionals are reported as cost of revenues regardless of whether the employees are actually performing client services during a given period. Selling, General and Administrative Expenses — Consists of expenses associated with promoting and selling our services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation expense, severance, travel, legal and audit services, insurance, operating leases and lease exit costs, advertising and other promotional activities. In addition, we pay a membership fee of 1% of revenues generated in Belarus to the administrative organization of the Belarus High-Technologies Park. Stock-Based Compensation — The Company recognizes the cost of its equity settled stock-based incentive awards based on the fair value of the award at the date of grant, net of estimated forfeitures. The cost is expensed evenly over the service period. The service period is the period over which the employee performs the related services, which is normally the same as the vesting period. Quarterly, the forfeiture assumption is adjusted and such adjustment may affect the timing of recognition of the total amount of expense recognized over the vesting period. Equity-based awards that do not require future service are expensed immediately. Stock-based awards that do not meet the criteria for equity classification are recorded as liabilities and adjusted to fair value at the end of each reporting period. Income Taxes — The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes. The realizability of deferred tax assets is primarily dependent on future earnings. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. A reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings. On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (“U.S. Tax Act”), which subjects a U.S. shareholder to taxes on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. During the year ended December 31, 2018 , the Company elected to provide for the tax expense related to GILTI in the year the tax is incurred. This election did not have a material impact on the financial statements for the year ended December 31, 2018 . Earnings per Share (“EPS”) — Basic EPS is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period, increased by the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Foreign Currency Translation — Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income/(loss). For consolidated foreign subsidiaries whose functional currency is the U.S. dollar, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur. Risks and Uncertainties — As a result of its global operations, the Company may be subject to certain inherent risks. Concentration of Credit — Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable and unbilled revenues. The Company maintains cash and cash equivalents and short-term deposits with financial institutions. The Company determined that the Company’s credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. We have cash in banks in countries such as Belarus, Russia, Ukraine, Kazakhstan and Armenia, where banking and other financial systems are less developed and regulated than in some more developed markets, and bank deposits made by corporate entities there are not insured. As of December 31, 2018 , $179,478 of total cash was kept in banks in these countries, of which $119,726 was held in Belarus. In this region, and particularly in Belarus, a banking crisis, bankruptcy or insolvency of banks that process or hold our funds, may result in the loss of our deposits or adversely affect our ability to complete banking transactions in these countries, which could adversely affect our business and financial condition. Unbilled revenues and accounts receivable are generally dispersed across the Company’s customers in proportion to their revenues. There were no customers individually exceeding 10% of our unbilled revenues as of December 31, 2018 . As of December 31, 2017 , unbilled revenues from one customer exceeded 10% and accounted for 13.0% of our total unbilled revenues. There were no customers individually exceeding 10% of our accounts receivable as of December 31, 2018 and 2017 . Foreign currency risk — The Company’s global operations are conducted predominantly in U.S. dollars. Other than U.S. dollars, the Company generates a significant portion of revenues in various currencies, principally, euros, British pounds, Canadian dollars, Swiss francs and Russian rubles and incurs expenditures principally in Hungarian forints, Russian rubles, Polish zlotys, Swiss francs, British pounds, Indian rupees and China yuan renminbi associated with the locations of its delivery centers. The Company’s international operations expose it to foreign currency exchange rate changes that could impact translations of foreign denominated assets and liabilities into U.S. dollars and future earnings and cash flows from transactions denominated in different currencies. The Company is exposed to fluctuations in foreign currency exchange rates primarily related to accounts receivable and unbilled revenues from sales in foreign currencies and cash outflows for expenditures in foreign currencies. The Company’s results of operations, primarily revenues and expenses denominated in foreign currencies, can be affected if any of the currencies, which we use materially in our business, appreciate or depreciate against the U.S. dollar. The Company has a hedging program whereby it entered into a series of foreign exchange forward contracts that are designated as cash flow hedges of forecasted Russian ruble, Polish zloty and Indian rupee transactions. Interest rate risk — The Company’s exposure to market risk is influenced primarily by changes in interest rates received on cash and cash equivalents and paid on any outstanding balance on the Company’s revolving line of credit, which is subject to various rates depending on the type and timing of funds borrowed (See Note 8 “Long-Term Debt”). The Company does not use derivative financial instruments to hedge the risk of interest rate volatility. Adoption of New Accounting Standards Unless otherwise discussed below, the adoption of new accounting standards did not have a material impact on the Company’s consolidated financial position, results of operations, and cash flows. Revenue Recognition — As discussed above, effective January 1, 2018, the Company adopted the new accounting standard ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as amended using the modified retrospective method. Restricted cash and restricted cash equivalents — Effective January 1, 2018, the Company adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash which requires the Company to include in its cash and cash equivalents balances presented in the statements of cash flows amounts that are deemed to be restricted in nature. As a result of the adoption, the Company restated its consolidated statements of cash flows for all of the prior periods presented. The impact of adoption on the Company’s consolidated statements of cash flows was as follows for the year ended December 31, 2017 and 2016: Year Ended December 31, 2017 As Originally Reported Restated Effect Cash flows from operating activities: Changes in operating assets and liabilities: Prepaid expenses and other assets $ 3,605 $ 1,061 $ (2,544 ) Net cash provided by operating activities $ 195,364 $ 192,820 $ (2,544 ) Cash flows from investing activities: Decrease in restricted cash and time deposits, net $ 8 $ — $ (8 ) Acquisition of businesses, net of cash acquired $ (6,840 ) $ (6,810 ) $ 30 Net cash used in investing activities $ (36,173 ) $ (36,151 ) $ 22 Effect of exchange rate changes on cash, cash equivalents, and restricted cash $ 11,623 $ 11,776 $ 153 Net increase in cash, cash equivalents and restricted cash $ 220,560 $ 218,191 $ (2,369 ) Cash, cash equivalents and restricted cash, beginning of period 362,025 364,664 2,639 Cash, cash equivalents and restricted cash, end of period $ 582,585 $ 582,855 $ 270 Year Ended December 31, 2016 As Originally Reported Restated Effect Cash flows from operating activities: Changes in operating assets and liabilities: Prepaid expenses and other assets $ (4,791 ) $ (2,391 ) $ 2,400 Net cash provided by operating activities $ 164,817 $ 167,217 $ 2,400 Cash flows from investing activities: Decrease in restricted cash and time deposits, net $ 29,595 $ 29,597 $ 2 Net cash used in investing activities $ (9,322 ) $ (9,320 ) $ 2 Effect of exchange rate changes on cash, cash equivalents, and restricted cash $ (3,386 ) $ (3,387 ) $ (1 ) Net increase in cash, cash equivalents and restricted cash $ 162,576 $ 164,977 $ 2,401 Cash, cash equivalents and restricted cash, beginning of period 199,449 199,687 238 Cash, cash equivalents and restricted cash, end of period $ 362,025 $ 364,664 $ 2,639 Derivatives and Hedging — Effective April 1, 2018, the Company early-adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The new guidance is intended to simplify and amend hedge accounting and reporting to better align and disclose the economic results of an entity’s risk management activities in its financial statements. The ASU makes more financial and non-financial hedging strategies eligible for hedge accounting. It also changes how companies assess hedge effectiveness and amends the presentation and disclosure requirements by eliminating the requirement to separately measure and report hedge ineffectiveness and generally requires companies, for qualifying hedges, to present the entire change in the fair value of a hedging instrument in the same income statement line as the hedged item. The guidance also eases documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. The guidance requires entities to apply the amended presentation and disclosure guidance prospectively as of the period of adoption. The adoption of this guidance did not have any effect on the consolidated financial results. Pending Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that the Company will adopt according to the various timetables the FASB specifies. Unless otherwise discussed below, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. Leases — Effective January 1, 2019, the Company will be required to adopt the new guidance of FASB ASC Topic 842, Leases (Topic 842) (with early adoption permitted effective January 1, 2018). This amendment supersedes previous accounting guidance (Topic 840) and requires all leases, with the exception of leases with a term of twelve months or less, to be recorded on the balance sheet as lease assets and lease liabi |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Continuum — On March 15, 2018 , the Company acquired all of the outstanding equity of Continuum Innovation LLC together with its subsidiaries (“Continuum”) to enhance the Company’s consulting capabilities as well as its digital and service design practices. Continuum, headquartered in Boston with offices located in Milan, Seoul, and Shanghai, focuses on four practices including strategy, physical and digital design, technology and its Made Real Lab. The acquisition of Continuum added approximately 125 design consultants to the Company’s headcount. In connection with the Continuum acquisition, the Company paid $52,515 as cash consideration, of which $5,410 was placed in escrow for a period of 9 to 15 months as security for the indemnification obligations of the sellers under the terms of the equity purchase agreement. Furthermore, subject to attainment of specified performance targets in the 12 months after the acquisition, the Company will make a cash earnout payment with a maximum amount payable of $3,135 . The Company recorded $2,400 related to this earnout payment as contingent consideration as of the acquisition date. During the third quarter of 2018, the Company recorded a $900 reduction to the fair value of the contingent consideration , which is included in Interest and other income, net in the consolidated statement of income and comprehensive income (Note 11 “Fair Value Measurements”). Think — On November 1, 2018 , the Company acquired all of the equity interests of Think Limited (“Think”), a digital transformation agency headquartered in London, UK. This acquisition is intended to strengthen EPAM’s digital and organizational consulting capabilities in the UK and Western European markets and enhance the Company’s global product and design offerings. In connection with the Think acquisition, the Company paid $26,254 of cash, of which $3,237 was placed in escrow for a period of 12 months as security for the indemnification obligations of the sellers under the terms of the equity purchase agreement. Furthermore, subject to attainment of specified performance targets in the 12 months after the acquisition, the Company will make a cash earnout payment with a maximum amount payable of $8,156 . The Company recorded $5,990 related to this earnout payment as contingent consideration as of the acquisition date. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the dates of acquisition as updated for any changes as of December 31, 2018 : Continuum Think As of March 15, 2018 As of November 1, 2018 Cash and cash equivalents $ 2,251 $ 2,344 Accounts receivable 6,676 2,259 Unbilled revenues 2,463 284 Prepaid and other current assets 936 609 Goodwill 26,617 22,482 Intangible assets 14,450 6,882 Property and equipment and other noncurrent assets 8,902 642 Total assets acquired $ 62,295 $ 35,502 Accounts payable, accrued expenses and other current liabilities $ 2,745 $ 2,205 Due to employees 1,001 13 Long-term debt (Note 8) 3,220 — Other noncurrent liabilities 490 1,040 Total liabilities assumed $ 7,456 $ 3,258 Net assets acquired $ 54,839 $ 32,244 The above estimated fair values of the assets acquired and liabilities assumed are provisional and based on the information that was available as of the acquisition date and updated for any changes as of December 31, 2018 . The Company expects to complete the purchase price allocations as soon as practicable but no later than one year from the respective acquisition dates. As of December 31, 2018 , the Company finalized the valuation of intangible assets acquired in connection with the acquisition of Continuum which resulted in an adjustment of initially recognized intangible assets and their useful lives as well as in recognition of an additional intangible asset in the form of a favorable lease. The Company removed a liability associated with an initially recognized unfavorable lease, which was classified as other noncurrent liabilities. The Company also finalized a working capital adjustment that resulted in a partial release of escrow cash in the amount of $76 to the Company. These adjustments as well as the revaluation of contingent consideration resulted in a corresponding decrease in the value of acquired goodwill. The following table presents the estimated fair values and useful lives of intangible assets acquired during the year ended December 31, 2018 : Continuum Think Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 6.5 $ 5,800 7 $ 6,117 Favorable lease 11.2 5,500 — — Contract royalties 8 1,900 — — Trade names 5 1,250 5 765 Total $ 14,450 $ 6,882 The goodwill recognized as a result of the acquisitions is attributable primarily to strategic and synergistic opportunities related to the consulting and design businesses, the assembled workforces acquired and other factors. The goodwill acquired as a result of the Continuum acquisition is expected to be deductible for income tax purposes while the goodwill acquired as a result of the Think acquisition is not expected to be deductible for income tax purposes. Revenues generated by Continuum and Think totaled $26,300 and $1,908 , respectively for the year ended December 31, 2018 . Pro forma results of operations have not been presented because the effect of the Continuum and Think acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. During the years ended December 31, 2017 and 2016, the Company completed acquisitions with aggregated purchase prices of $6,980 and $5,580 , respectively. These acquisitions individually and in the aggregate are not material to the Company’s consolidated financial statements. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill by reportable segment was as follows: North America Europe Total Balance as of January 1, 2017 $ 76,812 $ 32,477 $ 109,289 Other acquisitions 199 4,533 4,732 Other acquisitions purchase accounting adjustments (285 ) 2,100 1,815 Effect of currency translation 564 3,131 3,695 Balance as of December 31, 2017 77,290 42,241 119,531 Continuum acquisition (Note 2) 26,617 — 26,617 Think acquisition (Note 2) — 22,482 22,482 Effect of currency translation (365 ) (1,433 ) (1,798 ) Balance as of December 31, 2018 $ 103,542 $ 63,290 $ 166,832 Excluded from the table above is the Russia segment for which the allocated goodwill was fully impaired for the periods presented. The Russia segment had accumulated goodwill impairment losses of $2,241 as of December 31, 2018 , 2017 and 2016 . There were no accumulated goodwill impairment losses in the North America or Europe reportable segments as of December 31, 2018 , 2017 or 2016 . Intangible assets other than goodwill as of December 31, 2018 and 2017 were as follows: As of December 31, 2018 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 9.5 $ 78,042 $ (29,580 ) $ 48,462 Favorable lease 11.2 5,500 (410 ) 5,090 Trade names 5.3 6,111 (4,300 ) 1,811 Contract royalties 8 1,900 (198 ) 1,702 Total $ 91,553 $ (34,488 ) $ 57,065 As of December 31, 2017 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 10 $ 66,646 $ (22,200 ) $ 44,446 Trade names 5 4,099 (4,034 ) 65 Total $ 70,745 $ (26,234 ) $ 44,511 All of the intangible assets other than goodwill have finite lives and as such are subject to amortization. Amortization of the favorable lease asset is recognized as rent expense and included in selling, general and administrative expenses and amortization of the other intangible assets is recognized in depreciation and amortization expense in the consolidated statements of income and comprehensive income. The following table presents amortization expense recognized for the periods indicated: For the Years Ended December 31, 2018 2017 2016 Customer relationships $ 7,637 $ 6,643 $ 6,858 Favorable lease 410 — — Trade names 266 896 1,139 Contract royalties 198 — — Non-competition agreements — 23 173 Total $ 8,511 $ 7,562 $ 8,170 The following table presents estimated amortization expense related to the Company’s existing intangible assets for the years ended December 31: Amount 2019 $ 9,520 2020 9,520 2021 9,520 2022 9,379 2023 8,153 Thereafter 10,973 Total $ 57,065 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: Weighted Average Useful Life (in years) As of As of Computer hardware 3 $ 74,884 $ 62,132 Building 49 34,458 34,058 Leasehold improvements 9 25,036 13,186 Furniture and fixtures 7 21,544 18,071 Office equipment 7 13,203 10,825 Purchased computer software 4 10,406 8,379 Land improvements 20 1,474 1,474 181,005 148,125 Less accumulated depreciation and amortization (78,359 ) (61,706 ) Total $ 102,646 $ 86,419 Depreciation and amortization expense related to property and equipment was $28,539 , $21,000 and $15,217 during the years ended December 31, 2018 , 2017 and 2016 , respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: As of As of Accrued compensation expense and related costs $ 97,877 $ 67,034 Deferred revenue 4,558 4,498 Other current liabilities and accrued expenses 25,502 18,280 Total $ 127,937 $ 89,812 |
TAXES PAYABLE
TAXES PAYABLE | 12 Months Ended |
Dec. 31, 2018 | |
Taxes Payable [Abstract] | |
TAXES PAYABLE | TAXES PAYABLE Current taxes payable consisted of the following: As of As of Income taxes payable $ 27,538 $ 9,488 Payroll, social security, and other taxes payable 20,322 16,696 Value added taxes payable 19,985 14,676 Total $ 67,845 $ 40,860 As a result of the U.S. Tax Act enacted on December 22, 2017, during the year ended December 31, 2017, the Company provisionally recorded income taxes payable of $64,321 to be paid over the next 8 years as a one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax. Of this amount, $59,175 was classified as Taxes payable, noncurrent as of December 31, 2017. During the year ended December 31, 2018, the Company completed its assessment and adjusted the provisionally recorded amount to $59,386 . Of this amount, $42,253 is classified as Taxes payable, noncurrent as of December 31, 2018. See Note 7 “Income Taxes” for additional discussion. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income/(Loss) Before Provision for Income Taxes Income/(loss) before provision for income taxes based on geographic location is disclosed in the table below: For the Years Ended December 31, 2018 2017 2016 Income/(loss) before provision for income taxes: United States $ 44,527 $ (6,595 ) $ (9,300 ) Foreign 205,246 180,900 135,766 Total $ 249,773 $ 174,305 $ 126,466 Provision for Income Taxes The provision for income taxes consists of the following: For the Years Ended December 31, 2018 2017 2016 Current Federal $ 10,814 $ 65,571 $ 13,324 State 4,123 (204 ) (63 ) Foreign 42,580 23,617 17,243 Deferred Federal (37,785 ) 7,235 (3,581 ) State (3,548 ) (90 ) 312 Foreign (6,667 ) 5,416 (35 ) Total $ 9,517 $ 101,545 $ 27,200 The U.S. Tax Act significantly changed U.S. corporate income tax laws including a reduction of the U.S. corporate income tax rate from 35.0% to 21.0% effective January 1, 2018 and the creation of a territorial tax system with a one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax. In addition, the U.S. Tax Act created new taxes on certain foreign-sourced earnings and certain related party payments, which are referred to as GILTI and the base erosion and anti-abuse tax (“BEAT”), respectively. Due to the timing of the enactment and the complexity involved in applying the provisions of the U.S. Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in its financial statements as of December 31, 2017. During the year ended December 31, 2018 , the Company completed its analysis of the impact of the U.S. Tax Act and recorded the following adjustments to the recorded provisional amounts: • The one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax requires the Company to pay U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8.0% on the remaining earnings. During the year ended December 31, 2017, the Company recorded a provisional income tax expense and corresponding income taxes payable of $64,321 to be paid over the next 8 years associated with the one-time transition tax. During the year ended December 31, 2018, the Company completed its assessment and refined its estimate reducing the provisional charge by $4,935 . The total charge for the one-time transition tax now totals $59,386 . • In 2017, the Company provisionally reduced its net deferred tax assets by $10,311 reflecting the impact of the change in the U.S. statutory tax rate from 35.0% to 21.0% in the periods in which the net deferred tax assets are expected to be realized as a result of the U.S. Tax Act. In 2018, the Company completed its analysis, and consequently recorded an additional charge of $926 to further reduce its net deferred tax assets for a total charge of $11,237 . In 2017, the Company reassessed its accumulated foreign earnings in light of the U.S. Tax Act and determined $97,000 of its accumulated earnings in Belarus were no longer indefinitely reinvested. As a result, the Company recorded a charge of $4,850 in the provision for income taxes during the year ended December 31, 2017 for the withholding tax payable to Belarus when the earnings are distributed. In 2018, the Company remitted this full amount of accumulated earnings as dividends and also remitted as dividends certain earnings of its foreign subsidiaries in Canada, Cyprus, Ireland and Russia and additional earnings in Belarus. Based on proposed tax regulations issued by the U.S. Treasury Department during 2018, it was determined that an offsetting U.S. foreign tax credit could be claimed for the withholding tax paid to Belarus resulting in a net $4,850 income tax benefit recognized during the year ended December 31, 2018. As of December 31, 2018, the Company has determined that all accumulated undistributed foreign earnings of $700,327 are expected to be indefinitely reinvested. Due to the enactment of the U.S. Tax Act and the one-time transition tax on accumulated foreign subsidiary earnings, these accumulated foreign earnings are no longer expected to be subject to U.S. federal income tax if repatriated but could be subject to state and foreign income and withholding taxes. Effective Tax Rate Reconciliation The reconciliation of the provision for income taxes at the federal statutory income tax rate to our effective income tax rate is as follows: For the Years Ended December 31, 2018 2017 2016 Provision for income taxes at federal statutory rate $ 52,452 $ 61,007 $ 44,263 Increase/(decrease) in taxes resulting from: Impact from U.S. Tax Act (4,009 ) 74,632 — Entity classification election deferred tax asset impact (25,962 ) — — GILTI and BEAT U.S. taxes 1,526 — — Excess tax benefits relating to stock-based compensation (17,370 ) (9,307 ) — Subsidiary withholding tax liability and related foreign tax credit (4,850 ) 4,850 — Foreign tax expense and tax rate differential (88 ) (39,997 ) (33,477 ) Effect of permanent differences 2,724 3,205 5,042 State taxes, net of federal benefit 3,452 (116 ) 1,192 Change in valuation allowance 151 783 — Stock-based compensation expense 652 6,908 9,535 Other 839 (420 ) 645 Provision for income taxes $ 9,517 $ 101,545 $ 27,200 The Company’s worldwide effective tax rate for years ended December 31, 2018 , 2017 and 2016 was 3.8% , 58.3% and 21.5% , respectively. The provision for income taxes in the year ended December 31, 2018 was favorably impacted by the recognition of $25,962 of net deferred tax assets resulting from the Company’s decision to change the tax status and to classify most of its foreign subsidiaries as disregarded for U.S. income tax purposes. This change subjects the income of the disregarded foreign subsidiaries to U.S. income taxation, resulting in a reduced foreign tax rate differential benefit in 2018 as compared to 2017 and 2016. In addition, following the adoption of ASU No. 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting on January 1, 2017, the Company recorded excess tax benefits upon vesting or exercise of stock-based awards of $17,370 and $9,307 during the years ended December 31, 2018 and 2017 , respectively. In Belarus, member technology companies of High-Technologies Park, including our subsidiary, have a full exemption from Belarus income tax through January 2049 . However, beginning February 1, 2018, the earnings of the Company’s Belarus local subsidiary are subject to U. S. income taxation due to the Company’s decision to change the tax status of the subsidiary. Consequently, there was less income tax benefit from the Belarus tax exemption for the year ended December 31, 2018 compared to previous years. The aggregate dollar benefits derived from this tax holiday approximated $1,352 , $15,503 and $13,605 for the years ended December 31, 2018, 2017 and 2016 , respectively. The benefit the tax holiday had on diluted net income per share approximated $0.02 , $0.28 and $0.26 for the years ended December 31, 2018, 2017 and 2016 , respectively. Deferred Income Taxes Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: As of As of Deferred tax assets: Property and equipment $ 4,531 $ 170 Intangible assets 1,262 1,456 Accrued expenses 32,067 4,392 Net operating loss carryforward 4,983 5,069 Deferred revenue 5,802 1,280 Stock-based compensation 27,558 16,197 Foreign currency exchange 5,772 — Other assets 782 1,415 Deferred tax assets $ 82,757 $ 29,979 Less: valuation allowance (3,189 ) (924 ) Total deferred tax assets $ 79,568 $ 29,055 Deferred tax liabilities: Property and equipment $ 1,480 $ 1,868 Intangible assets 5,582 3,077 Accrued revenue and expenses 1,540 1,352 U.S. taxation of foreign subsidiaries 3,000 — Subsidiary withholding tax liability — 4,850 Stock-based compensation — 1,498 Other liabilities 933 239 Total deferred tax liabilities $ 12,535 $ 12,884 Net deferred tax assets $ 67,033 $ 16,171 As of December 31, 2018 and 2017 , the Company classified $2,950 and $8,803 , respectively, of deferred tax liabilities as Other noncurrent liabilities in the consolidated balance sheets. Included in the stock-based compensation expense deferred tax asset at December 31, 2018 and 2017 is $7,561 and $8,512 , respectively, that is related to acquisitions and is amortized for tax purposes over a 10 to 15 -year period. As of December 31, 2018 , the Company’s domestic and foreign net operating loss (“NOL”) carryforwards for income tax purposes were approximately $4,183 and $22,808 , respectively. If not utilized, the domestic NOL carryforwards will begin to expire in 2021. The foreign NOL carryforwards include $7,031 from jurisdictions with no expiration date, with the remainder expiring as follows: $2,309 in 2019, $404 in 2020, $5,098 in 2021, $5,678 in 2022, $1,501 in 2023, and $787 beyond 2023. The valuation allowance maintained by the Company as of December 31, 2018 relates primarily to net operating loss carryforwards of $18,123 in certain foreign jurisdictions that it believes are not likely to be realized. Unrecognized Tax Benefits As of December 31, 2018 and 2017 , unrecognized tax benefits of $1,432 and $699 , respectively, are included in Taxes payable, noncurrent within the consolidated balance sheets. These amounts are net of available foreign tax credit benefits and represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. There were no significant new tax positions that resulted in unrecognized tax benefits or reversal of prior year tax positions during the years ended December 31, 2018 , 2017 and 2016. There were no tax positions for which it was reasonably possible that unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date. The Company files income tax returns in the United States and in various state, local and foreign jurisdictions. The Company’s significant tax jurisdictions are the United States, Russia, Germany, Ukraine, the United Kingdom, Hungary, Switzerland, Netherlands, Poland and India. The tax years subsequent to 2014 remain open to examination by the United States Internal Revenue Service and generally, the tax years subsequent to 2014 remain open to examination by various state and local taxing authorities and various foreign taxing authorities. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Revolving Line of Credit — On September 12, 2014, the Company entered into a revolving loan agreement (the “2014 Credit Facility”) with PNC Bank, National Association; Santander Bank, N.A; and Silicon Valley Bank (collectively the “2014 Lenders”). Under the 2014 Credit Facility, the Company’s borrowing capacity was set at $100,000 , with potential to increase it to $200,000 if certain conditions were met. Borrowings under the 2014 Credit Facility were denominated in U.S. dollars or, up to a maximum of $50,000 in British pounds, Canadian dollars, euros and Swiss francs and other currencies as may be approved by the administrative agent and the 2014 Lenders. Borrowings under the 2014 Credit Facility bore interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. The base rate was equal to the highest of (a) the Federal Funds Open Rate, plus 0.5% , (b) the Prime Rate, and (c) the Daily LIBOR Rate, plus 1.0% . On May 24, 2017, the Company terminated the 2014 Credit Facility and entered into a new unsecured credit facility (the “2017 Credit Facility”), as may be amended from time to time, with PNC Bank, National Association; PNC Capital Markets LLC; Citibank N.A.; Wells Fargo Bank, National Association; Fifth Third Bank and Santander Bank, N.A. (collectively the “Lenders”). The 2017 Credit Facility provides for a borrowing capacity of $300,000 , with potential to increase the credit facility up to $400,000 if certain conditions are met. The 2017 Credit Facility matures on May 24, 2022 . Borrowings under the 2017 Credit Facility may be denominated in U.S. dollars or up to a maximum of $100,000 in British pounds, Canadian dollars, euros and Swiss francs and other currencies as may be approved by the administrative agent and the Lenders. Borrowings under the 2017 Credit Facility bear interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. The base rate is equal to the highest of (a) the Overnight Bank Funding Rate, plus 0.5% , (b) the Prime Rate, or (c) the Daily LIBOR Rate, plus 1.0% . As of December 31, 2018 , the Company’s outstanding borrowings are subject to a LIBOR-based interest rate, which resets regularly at issuance, based on lending terms. The 2017 Credit Facility includes customary business and financial covenants that may restrict the Company’s ability to make or pay dividends (other than certain intercompany dividends) if a potential or an actual event of default has occurred or would be triggered. As of December 31, 2018 , the Company was in compliance with all covenants contained in the 2017 Credit Facility. The following table presents the outstanding debt and borrowing capacity of the Company under the 2017 Credit Facility: As of As of Outstanding debt $ 25,000 $ 25,000 Interest rate 3.5 % 2.6 % Irrevocable standby letters of credit $ 382 $ 1,294 Available borrowing capacity $ 274,618 $ 273,706 Current maximum borrowing capacity $ 300,000 $ 300,000 As part of the acquisition of Continuum, the Company assumed $3,448 of long-term debt associated with a leased facility and payable to Continuum’s landlord. The debt was payable in monthly installments through March, 2029 and bore interest at a rate of 8% per annum. In March 2018, the Company paid $3,448 to settle this assumed long-term debt. |
REVENUES REVENUES (Notes)
REVENUES REVENUES (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Disaggregation of Revenues The following tables show the disaggregation of the Company’s revenues by major customer location, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the year ended December 31, 2018: Year Ended December 31, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Customer Locations North America $ 1,046,333 $ 52,859 $ 75 $ 1,099,267 $ (100 ) — $ 1,099,167 Europe 16,693 596,559 52 613,304 (832 ) — 612,472 CIS 8,437 336 72,930 81,703 — — 81,703 APAC 5,631 44,113 91 49,835 (265 ) — 49,570 Revenues $ 1,077,094 $ 693,867 $ 73,148 $ 1,844,109 $ (1,197 ) $ 1,842,912 The following tables show the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the year ended December 31, 2018: Year Ended December 31, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Industry Verticals Financial Services $ 112,528 $ 253,089 $ 59,337 $ 424,954 $ (977 ) $ 423,977 Travel & Consumer 177,913 208,445 7,467 393,825 (182 ) 393,643 Software & Hi-Tech 269,067 79,121 2,627 350,815 — 350,815 Business Information & Media 251,081 72,898 54 324,033 — 324,033 Life Sciences & Healthcare 151,449 20,272 13 171,734 (31 ) 171,703 Emerging Verticals 115,056 60,042 3,650 178,748 (7 ) 178,741 Revenues $ 1,077,094 $ 693,867 $ 73,148 $ 1,844,109 $ (1,197 ) $ 1,842,912 The following tables show the disaggregation of the Company’s revenues by contract type, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the year ended December 31, 2018: Year Ended December 31, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Contract Types Time-and-material $ 983,433 $ 628,710 $ 40,754 $ 1,652,897 $ — $ 1,652,897 Fixed-price 89,831 62,078 32,342 184,251 — 184,251 Licensing 2,748 1,332 17 4,097 — 4,097 Other revenues 1,082 1,747 35 2,864 (1,197 ) 1,667 Revenues $ 1,077,094 $ 693,867 $ 73,148 $ 1,844,109 $ (1,197 ) $ 1,842,912 Timing of Revenue Recognition The following tables show the timing of revenue recognition: Year Ended December 31, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,076,083 $ 692,024 $ 73,135 $ 1,841,242 $ — $ 1,841,242 Transferred at a point of time 1,011 1,843 13 2,867 (1,197 ) 1,670 Revenues $ 1,077,094 $ 693,867 $ 73,148 $ 1,844,109 $ (1,197 ) $ 1,842,912 During the year ended December 31, 2018 , the Company recognized $5,736 of revenues from performance obligations satisfied in previous periods. The following table includes the estimated revenues expected to be recognized in the future related to performance obligations that are partially or fully unsatisfied as of December 31, 2018 . The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts that (i) have an original expected duration of one year or less and (ii) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services provided: Less than 1 year 1 Year 2 Years 3 Years Total Contract Type Fixed-price $ 7,202 $ 402 $ 56 $ — $ 7,660 The Company applies a practical expedient and does not disclose the amount of the transaction price allocated to the remaining performance obligations nor provide an explanation of when the Company expects to recognize that amount as revenue for certain variable consideration. Contract Balances The following table provides information on the classification of contract assets and liabilities in the consolidated balance sheets: As of As of January 1, 2018 Contract assets included in Unbilled revenues $ 13,522 $ 7,901 Contract liabilities included in Accrued expenses and other current liabilities $ 4,558 $ 4,498 Contract liabilities included in Other noncurrent liabilities $ 224 $ — Contract assets included in unbilled revenues are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. The Company recognizes an impairment loss when the contract carrying amount is greater than the remaining consideration receivable, less directly related costs to be incurred. Contract assets have increased from January 1, 2018 primarily due to new contracts entered into in 2018 where the Company’s right to bill is contingent upon achievement of contractual milestones. Contract liabilities comprise amounts collected from the Company’s customers for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. During the year ended December 31, 2018 , the Company recognized $3,810 of revenues that were included in Accrued expenses and other current liabilities at January 1, 2018. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL ISTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company conducts a large portion of its operations in international markets that subject it to foreign currency fluctuations. To manage the risk of fluctuations in foreign currency exchange rates, during the year ended December 31, 2018 , the Company implemented a hedging program whereby it entered into a series of foreign exchange forward contracts with durations of twelve months or less that are designated as cash flow hedges of forecasted Russian ruble, Polish zloty and Indian rupee transactions. The Company measures derivative instruments and hedging activities at fair value and recognizes them as either assets or liabilities in its consolidated balance sheets. Accounting for the gains and losses resulting from changes in fair value depends on the use of the derivative and whether it is designated and qualifies for hedge accounting. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. As of December 31, 2018 , all of the Company’s foreign exchange forward contracts were designated as hedges. Derivatives may give rise to credit risks from the possible non-performance by counterparties. The Company has limited its credit risk by entering into derivative transactions only with highly-rated financial institutions and by conducting an ongoing evaluation of the creditworthiness of the financial institutions with which the Company does business. There is no financial collateral (including cash collateral) required to be posted by the Company related to the foreign exchange forward contracts. The fair value of derivative instruments on the Company’s consolidated balance sheets as of December 31, 2018 and December 31, 2017 were as follows: As of December 31, 2018 As of December 31, 2017 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Designated as hedging instruments Prepaid and other current assets $ 181 $ — Accrued expenses and other current liabilities $ 3,475 $ — Foreign exchange forward contracts - Not designated as hedging instruments Prepaid and other current assets $ — $ 114 The changes in the fair value of foreign currency derivative instruments in our consolidated statements of income and comprehensive income for the years ended December 31, 2018 , 2017 and 2016 were as follows: Year Ended December 31, 2018 2017 2016 Foreign exchange forward contracts - Designated as hedging instruments: Change in fair value recognized in Accumulated other comprehensive loss $ (3,294 ) $ — $ — Net loss reclassified from Accumulated other comprehensive loss into Cost of revenues (exclusive of depreciation and amortization) $ (4,161 ) $ — $ — Foreign exchange forward contracts - Not designated as hedging instruments: Net gain recognized in Foreign exchange gain/(loss) $ 44 $ 425 $ 92 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 : As of December 31, 2018 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 181 $ — $ 181 $ — Total assets measured at fair value on a recurring basis $ 181 $ — $ 181 $ — Foreign exchange derivative liabilities $ 3,475 $ — $ 3,475 $ — Contingent consideration 7,468 — — 7,468 Total liabilities measured at fair value on a recurring basis $ 10,943 $ — $ 3,475 $ 7,468 The Company had no material financial assets or liabilities measured at fair value on a recurring basis as of December 31, 2017 . Our Level 2 foreign exchange derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange data at the measurement date. See Note 10 “Derivative Financial Instruments” for further information regarding the Company’s derivative financial instruments. As of December 31, 2018 , contingent consideration included amounts payable in cash in connection with the acquisitions of Continuum and Think (Note 2 “Acquisitions”). The fair value of the contingent consideration is based on the expected future payments to be made to the sellers of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. In determining fair value, the Company considered a variety of factors, including future performance of the acquired businesses using financial projections developed by the Company and market risk assumptions that were derived for revenue growth and earnings before interest and taxes. The Company estimated future payments using the earnout formulas and performance targets specified in the purchase agreements and adjusted those estimates to reflect the probability of their achievement. Those estimated future payments were then discounted to present value using a rate based on the weighted-average cost of capital of guideline companies. Although there is significant judgment involved, the Company believes its estimates and assumptions are reasonable. Changes in financial projections, market risk assumptions, discount rates or probability assumptions related to achieving the various earnout criteria would result in a change in the fair value of the recorded contingent liabilities. Such changes, if any, are recorded within Interest and other income, net in the Company’s consolidated statement of income and comprehensive income. A reconciliation of the beginning and ending balances of acquisition-related contractual contingent liabilities using significant unobservable inputs (Level 3) for the year ended December 31, 2016 is as follows: Amount Contractual contingent liabilities as of January 1, 2016 $ 5,364 Acquisition date fair value of contractual contingent liabilities — other acquisitions 800 Liability-classified stock-based awards 5,148 Changes in fair value of contractual contingent liabilities included in Selling, general and administrative expenses 1,232 Changes in fair value of contractual contingent liabilities recorded against goodwill 200 Settlements of contractual contingent liabilities (8,955 ) Reclassification of contractual contingent liabilities out of Level 3 (3,789 ) Contractual contingent liabilities as of December 31, 2016 $ — The Company had no activity related to contractual contingent liabilities during the year ended December 31, 2017 . A reconciliation of the beginning and ending balances of acquisition-related contractual contingent liabilities using significant unobservable inputs (Level 3) for the year ended December 31, 2018 is as follows: Amount Contractual contingent liabilities as of December 31, 2017 $ — Acquisition date fair value of contingent consideration — Continuum acquisition (Note 2) 2,400 Acquisition date fair value of contingent consideration — Think acquisition (Note 2) 5,990 Changes in fair value of contingent consideration included in Interest and other income, net (Note 2) (900 ) Effect of net foreign currency exchange rate changes (22 ) Contractual contingent liabilities as of December 31, 2018 $ 7,468 Estimates of fair value of financial instruments not carried at fair value on a recurring basis on the Company’s consolidated balance sheets are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The Company uses the following methods to estimate the fair values of its financial instruments: • for financial instruments that have quoted market prices, those quoted prices are used to estimate fair value; • for financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument; • for financial instruments for which no quoted market prices are available and that have no defined maturity, have a remaining maturity of 360 days or less, or reprice frequently to a market rate, the Company assumes that the fair value of these instruments approximates their reported value, after taking into consideration any applicable credit risk. The generally short duration of certain of the Company’s assets and liabilities results in a significant number of assets and liabilities for which fair value equals or closely approximates the amount recorded on the Company’s consolidated balance sheets. The Company’s financial assets and liabilities that are not carried at fair value on a recurring basis on the Company’s consolidated balance sheets are as follows: • cash and cash equivalents; • restricted cash and time deposits; • employee loans; • long-term debt (Note 8 “Long-Term Debt”) Since 2012, the Company has offered a loan program, which provides employees with loans to purchase housing in Belarus through independent third parties. This program is designed as a retention mechanism for the Company’s employees in Belarus and is available to full-time qualified employees. The aggregate maximum lending limit of the program is $10,000 , with no individual outstanding loans exceeding $50 and the Company intends to hold all employee loans until their maturity. In addition to the housing loans, the Company issues relocation loans in connection with intra-company transfers, as well as certain other individual loans. There were no loans issued to principal officers, directors, and their affiliates. Loans under these programs were not material as of December 31, 2018 and 2017 and were included in Prepaid and other current assets and Other noncurrent assets in the Company’s consolidated balance sheets. The housing loans are measured using the Level 3 inputs within the fair value hierarchy under FASB ASC Topic 820, Fair Value Measurement because they are valued using significant unobservable inputs. The fair value of employee housing loans is estimated using information on the rates of return that market participants in Belarus would require when investing in unsecured U.S. dollar-denominated government bonds with similar maturities (a “risk-free rate”), after taking into consideration any applicable credit and liquidity risk. They are subsequently carried at amortized cost less allowance for loan losses, which have been minimal since the commencement of the program as participants go through a rigorous approval and screening process. Any difference between the carrying value and the fair value of a loan upon initial recognition is charged to expense. The following tables present the reported amounts and estimated fair values of the financial assets and liabilities for which disclosure of fair value is required, as they would be categorized within the fair value hierarchy, as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2018 Financial Assets: Cash and cash equivalents $ 770,560 $ 770,560 $ 770,560 $ — $ — Restricted cash $ 1,151 $ 1,151 $ 1,151 $ — $ — Employee loans $ 3,525 $ 3,525 $ — $ — $ 3,525 Financial Liabilities: Borrowings under 2017 Credit Facility $ 25,020 $ 25,020 $ — $ 25,020 $ — Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2017 Financial Assets: Cash and cash equivalents $ 582,585 $ 582,585 $ 582,585 $ — $ — Time deposits and restricted cash $ 673 $ 673 $ — $ 673 $ — Employee loans $ 4,210 $ 4,210 $ — $ — $ 4,210 Financial Liabilities: Borrowings under 2017 Credit Facility $ 25,009 $ 25,009 $ — $ 25,009 $ — |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income and comprehensive income: For the Years Ended December 31, 2018 2017 2016 Cost of revenues (exclusive of depreciation and amortization) $ 27,245 $ 20,868 $ 16,619 Selling, general and administrative expenses 31,943 31,539 32,625 Total $ 59,188 $ 52,407 $ 49,244 Equity Plans 2015 Long-Term Incentive Plan — On June 11, 2015, the Company’s stockholders approved the 2015 Long-Term Incentive Plan (“2015 Plan”) to be used to issue equity awards to company personnel. As of December 31, 2018 , 5,332,128 shares of common stock remained available for issuance under the 2015 Plan. All of the awards issued pursuant to the 2015 Plan expire 10 years from the date of grant. 2012 Non-Employee Directors Compensation Plan — On January 11, 2012, the Company approved the 2012 Non-Employee Directors Compensation Plan (“2012 Directors Plan”) to be used to issue equity grants to its non-employee directors. The Company authorized 600,000 shares of common stock to be reserved for issuance under the plan. As of December 31, 2018 , 533,852 shares of common stock remained available for issuance under the 2012 Directors Plan. The 2012 Directors Plan will expire after 10 years and is administered by the Company’s Board of Directors. 2012 Long-Term Incentive Plan — On January 11, 2012, the Company approved the 2012 Long-Term Incentive Plan (“2012 Plan”) to be used to issue equity grants to Company personnel. In June 2015, the 2012 Plan was discontinued; however, outstanding awards remain subject to the terms of the 2012 Plan and any shares that are subject to an award that was previously granted under the 2012 Plan and that expire or terminate for any reason prior to exercise will become available for issuance under the 2015 Plan. All of the awards issued pursuant to the 2012 Plan expire 10 years from the date of grant. 2006 Stock Option Plan — Effective May 31, 2006, the Board of Directors of the Company adopted the 2006 Stock Option Plan (the “2006 Plan”) to grant stock options to directors, employees, and certain independent contractors. In January 2012, the 2006 Plan was discontinued; however, outstanding awards remain subject to the terms of the 2006 Plan and any shares that are subject to an option award that was previously granted under the 2006 Plan and that expire or terminate for any reason prior to exercise will become available for issuance under the 2015 Plan. All of the awards issued pursuant to the 2006 Plan expire 10 years from the date of grant. Stock Options Stock option activity under the Company’s plans is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Options outstanding as of January 1, 2016 7,450,914 $ 34.07 $ 331,938 Options granted 313,088 $ 70.27 Options exercised (895,804 ) $ 20.13 Options forfeited/cancelled (227,759 ) $ 47.89 Options expired (3,200 ) $ 1.52 Options outstanding as of December 31, 2016 6,637,239 $ 37.20 $ 179,936 Options granted 261,373 $ 73.40 Options exercised (1,789,434 ) $ 30.23 Options forfeited/cancelled (200,210 ) $ 57.09 Options expired (7,220 ) $ 4.63 Options outstanding as of December 31, 2017 4,901,748 $ 40.91 $ 326,064 Options granted 160,181 $ 112.81 Options exercised (945,166 ) $ 36.69 Options forfeited/cancelled (32,569 ) $ 63.28 Options expired (1,250 ) $ 25.72 Options outstanding as of December 31, 2018 4,082,944 $ 44.54 $ 291,846 5.5 Options vested and exercisable as of December 31, 2018 3,183,103 $ 36.10 $ 254,360 4.9 Options expected to vest as of December 31, 2018 867,711 $ 73.93 $ 36,539 7.3 The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The grant-date fair value for stock options granted was determined using a Black-Scholes model incorporating the following average assumptions: For the Years Ended December 31, 2018 2017 2016 Expected volatility 33.8 % 30.5 % 31.9 % Expected term (in years) 6.25 6.25 6.24 Risk-free interest rate 2.7 % 2.1 % 1.5 % Expected dividends — % — % — % Effective January 1, 2018, the Company changed its methodology for estimating volatility used in the Black-Scholes option valuation model. Prior to January 1, 2018, the Company estimated the volatility of its common stock by using the historical volatility of peer public companies including the Company’s historical volatility. In the first quarter of 2018, the Company began exclusively using its own historical volatility as it believes this is a more accurate estimate of future volatility of the price of the Company’s common stock. The Company did not change the methodology for estimating any other Black-Scholes option valuation model assumptions. The risk-free rate is based on the U.S. Treasury yield curve for periods equal to the expected term of the options in effect at the time of grant. The Company has not declared or paid any dividends on its common stock. The Company intends to retain any earnings to fund operations and future growth of its business and, therefore, does not anticipate paying any cash dividends in the foreseeable future. The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2018 , 2017 and 2016 was $43.42 , $25.29 and $24.26 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2018 , 2017 and 2016 was $83,250 , $91,148 and $39,577 , respectively. The Company recognizes the fair value of each option as compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period. The options are typically scheduled to vest over four years from the time of grant, subject to the terms of the applicable plan and stock option agreement. In general, in the event of a participant’s termination of service for any reason, unvested options are forfeited as of the date of such termination without any payment to the participant. The Company records share-based compensation expense only for those awards that are expected to vest and as such, the Company applies an estimated forfeiture rate at the time of grant and adjusts the forfeiture rate to reflect actual forfeitures quarterly. As of December 31, 2018 , $12,553 of total remaining unrecognized compensation cost related to unvested stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.1 years . As of December 31, 2018 , a total of 50 shares underlying options exercised through December 31, 2018 , were in transfer with the Company’s transfer agent. Restricted Stock and Restricted Stock Units The Company grants restricted stock units (“RSUs”) to Company personnel and non-employee directors under the Company’s 2015 Plan (and prior to its approval, under the 2012 Plan) and 2012 Directors Plan, respectively. Prior to 2017, awards to non-employee directors were in the form of restricted stock. In addition, the Company has issued in the past, and may issue in the future, its equity securities to compensate employees of acquired businesses for future services. Equity-based awards granted in connection with acquisitions of businesses are generally issued in the form of service-based awards (dependent on continuing employment only) and performance-based awards, which are granted and vest only if certain specified performance and service conditions are met. The awards issued in connection with acquisitions of businesses are subject to the terms and conditions contained in the applicable award agreement and acquisition documents with typical vesting period of three years and equal or variable vesting percentage of the awards granted depending on the terms. Service-Based Awards The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the years ended December 31, 2018 , 2017 and 2016 : Equity-Classified Equity-Settled Restricted Stock Equity-Classified Equity-Settled Restricted Stock Units Liability-Classified Cash-Settled Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested service-based awards outstanding as of January 1, 2016 306,839 $ 41.14 149,272 $ 57.55 — $ — Awards granted 6,510 $ 73.00 408,629 $ 70.39 207,586 $ 70.53 Awards vested (156,535 ) $ 42.64 (41,015 ) $ 55.60 — $ — Awards forfeited/cancelled (2,689 ) $ 45.32 (31,698 ) $ 70.44 (3,085 ) $ 70.52 Unvested service-based awards outstanding as of December 31, 2016 154,125 $ 40.89 485,188 $ 67.69 204,501 $ 70.53 Awards granted — $ — 424,623 $ 73.89 170,295 $ 74.21 Awards modified — $ — (2,570 ) $ 26.85 2,570 $ 73.27 Awards vested (152,285 ) $ 43.39 (140,043 ) $ 66.54 (52,004 ) $ 70.56 Awards forfeited/cancelled — $ — (79,186 ) $ 70.30 (10,533 ) $ 71.72 Unvested service-based awards outstanding as of December 31, 2017 1,840 $ 54.37 688,012 $ 71.60 314,829 $ 72.50 Awards granted — $ — 380,864 $ 115.84 85,380 $ 112.65 Awards modified — $ — (3,110 ) $ 80.27 3,110 $ 120.18 Awards vested (1,047 ) $ 47.76 (217,800 ) $ 70.10 (91,684 ) $ 72.69 Awards forfeited/cancelled — $ — (50,063 ) $ 86.97 (8,668 ) $ 81.40 Unvested service-based awards outstanding as of December 31, 2018 793 $ 63.10 797,903 $ 92.13 302,967 $ 83.99 The fair value of vested service-based awards (measured at the vesting date) for the years ended December 31, 2018 , 2017 and 2016 was as follows: For the Years Ended December 31, 2018 2017 2016 Equity-classified equity-settled Restricted stock $ 142 $ 12,607 $ 11,431 Restricted stock units 24,987 10,620 2,932 Liability-classified cash-settled Restricted stock units 10,349 3,811 — Total fair value of vested service-based awards $ 35,478 $ 27,038 $ 14,363 As of December 31, 2018 , $38 of total remaining unrecognized stock-based compensation costs related to service-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 1.5 years . As of December 31, 2018 , $51,655 of total remaining unrecognized stock-based compensation costs related to service-based equity-classified RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.6 years . As of December 31, 2018 , there were 3,894 restricted stock units vested for which the holders elected to defer delivery of EPAM Systems, Inc. ordinary shares. During the first quarter of 2018, 44,228 RSUs were granted in connection with the acquisition of Continuum. During the fourth quarter of 2018, 44,350 RSUs were granted in connection with the acquisition of Think. As of December 31, 2018 , $23,251 of total remaining unrecognized stock-based compensation costs related to service-based liability-classified RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.3 years . The liability associated with our service-based liability-classified RSUs as of December 31, 2018 and 2017 was $9,920 and $5,964 , respectively, and was classified as Deferred compensation due to employees in the consolidated balance sheets. Performance -Based Awards The table below summarizes activity related to the Company’s performance-based awards for the years ended December 31, 2018 , 2017 and 2016 : Equity-Classified Liability-Classified Equity-Classified Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested performance-based awards outstanding as of January 1, 2016 22,090 $ 37.52 211,206 $ 39.65 14,000 $ 70.22 Awards granted — $ — — $ — — $ — Awards vested (9,978 ) $ 40.15 (105,604 ) $ 40.44 (4,666 ) $ 70.22 Awards forfeited/cancelled (6,539 ) $ 36.97 — $ — (4,667 ) $ 70.22 Unvested performance-based awards outstanding as of December 31, 2016 5,573 $ 33.47 105,602 $ 38.86 4,667 $ 70.22 Awards granted — $ — — $ — — $ — Awards vested (5,573 ) $ 33.47 (105,602 ) $ 38.86 — $ — Awards forfeited/cancelled — $ — — $ — (4,667 ) $ 70.22 Unvested performance-based awards outstanding as of December 31, 2017 — $ — — $ — — $ — Awards granted — $ — — $ — 45,375 $ 121.75 Awards vested — $ — — $ — (8,769 ) $ 121.75 Awards forfeited/cancelled — $ — — $ — (7,014 ) $ 121.75 Unvested performance-based awards outstanding as of December 31, 2018 — $ — — $ — 29,592 $ 121.75 As of December 31, 2018 , $2,779 of total remaining unrecognized stock-based compensation cost related to performance-based equity-classified restricted stock units is expected to be recognized over the weighted-average remaining requisite service period of 1.9 years. Performance-based equity-classified RSUs were granted during the year ended December 31, 2018 in connection with the acquisition of Continuum and have a variable vesting period, subject to satisfaction of the applicable performance conditions with each vesting portion having its own service inception date. Compensation is recognized over the vesting period and adjusted each period for the probability of achievement of the performance criteria for each vesting portion separately. During the fourth quarter of 2018, the Company accelerated the recognition of $835 of expense due to vesting of performance-based equity-classified RSUs in accordance with the terms of the award agreement. The fair value of vested performance-based awards (measured at the vesting date) for the years ended December 31, 2018 , 2017 and 2016 was as follows: For the Years Ended December 31, 2018 2017 2016 Equity-classified equity-settled Restricted stock $ — $ 452 $ 690 Restricted stock units 1,046 — 348 Liability-classified equity-settled Restricted stock — 8,633 7,955 Total fair value of vested performance-based awards $ 1,046 $ 9,085 $ 8,993 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Stock options, restricted stock and RSUs 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 of common stock as follows: For the Years Ended December 31, 2018 2017 2016 Numerator for basic and diluted earnings per share: Net income $ 240,256 $ 72,760 $ 99,266 Numerator for basic and diluted earnings per share $ 240,256 $ 72,760 $ 99,266 Denominator: Weighted average common shares for basic earnings per share 53,622,989 52,077,011 50,309,362 Net effect of dilutive stock options, restricted stock units and restricted stock awards 3,049,687 2,907,162 2,906,030 Weighted average common shares for diluted earnings per share 56,672,676 54,984,173 53,215,392 Net Income per share: Basic $ 4.48 $ 1.40 $ 1.97 Diluted $ 4.24 $ 1.32 $ 1.87 Weighted average common shares considered anti-dilutive and not included in computing diluted earnings per share were 138,639 , 883,350 and 2,324,667 for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company leases office space under operating leases, which expire at various dates. Certain leases contain renewal provisions and generally require the Company to pay utilities, insurance, taxes, and other operating expenses. Rent expense under operating lease agreements for the years ended December 31, 2018 , 2017 and 2016 was $46,924 , $37,916 , and $28,220 respectively. Future minimum rental payments under operating leases that have initial or remaining lease terms in excess of one year as of December 31, 2018 were as follows: Year Ending December 31, Operating Leases 2019 $ 46,082 2020 38,715 2021 32,126 2022 24,341 2023 20,118 Thereafter 77,484 Total minimum lease payments $ 238,866 Indemnification Obligations — In the normal course of business, the Company is a party to a variety of agreements under which it may be obligated to indemnify the other party for certain matters. These obligations typically arise in contracts where the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations or covenants for certain matters such as title to assets and intellectual property rights and data privacy matters associated with certain arrangements. The duration of these indemnifications varies, and in certain cases, is indefinite. The Company is unable to reasonably estimate the maximum potential amount of future payments under these or similar agreements due to the unique facts and circumstances of each agreement and the fact that certain indemnifications provide for no limitation to the maximum potential future payments under the indemnification. Management is not aware of any such matters that would have a material effect on the financial statements of the Company. Litigation — From time to time, the Company is involved in litigation, claims or other contingencies arising in the ordinary course of business. The Company accrues a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. In the opinion of management, the outcome of any existing claims and legal or regulatory proceedings, if decided adversely, is not expected to have a material effect on the Company’s business, financial condition, results of operations and cash flows. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company determines its business segments and reports segment information in accordance with how the Company’s chief operating decision maker (“CODM”) organizes the segments to evaluate performance, allocate resources and make business decisions. Segment results are based on the segment’s revenues and operating profit, where segment operating profit is defined as income from operations before unallocated costs. Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as an allocation of certain shared services expenses. Certain corporate expenses are not allocated to specific segments as these expenses are not controllable at the segment level. Such expenses include certain types of professional fees, non-corporate taxes, compensation to non-employee directors and certain other general and administrative expenses, including compensation of specific groups of non-production employees. In addition, the Company does not allocate amortization of acquisition-related intangible assets, goodwill and other asset impairment charges, stock-based compensation expenses, acquisition-related costs and certain other one-time charges. These unallocated amounts are combined with total segment operating profit to arrive at consolidated income from operations as reported below in the reconciliation of segment operating profit to consolidated income before provision for income taxes. Additionally, management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably among the segments. The Company manages its business primarily based on the managerial responsibility for its client base and market. As managerial responsibility for a particular customer relationship generally correlates with the customer’s geographic location, there is a high degree of similarity between customer locations and the geographic boundaries of the Company’s reportable segments. In some cases, managerial responsibility for a particular customer is assigned to a management team in another region and is usually based on the strength of the relationship between customer executives and particular members of EPAM’s senior management team. In such cases, the customer’s activity would be reported through the management team’s reportable segment. Revenues from external customers and operating profit, before unallocated expenses, by reportable segments were as follows: For the years ended December 31, 2018 2017 2016 Total segment revenues: North America $ 1,077,094 $ 796,126 $ 642,216 Europe 693,867 593,167 474,988 Russia 73,148 62,994 43,611 Total segment revenues $ 1,844,109 $ 1,452,287 $ 1,160,815 Segment operating profit: North America $ 221,846 $ 169,340 $ 143,021 Europe 115,876 92,080 67,545 Russia 11,377 13,906 7,555 Total segment operating profit $ 349,099 $ 275,326 $ 218,121 Intersegment transactions were excluded from the above on the basis that they are neither included in the measure of a segment’s profit and loss results, nor considered by the CODM during the review of segment results. There were no customers individually exceeding 10% of our total segment revenues for the year ended December 31, 2018 and 2017 . During the year ended December 31, 2016 , revenues from one customer, UBS AG, were $138,124 and accounted for more than 10% of total revenues. Revenues from this customer are reported in the Company’s Europe segment. Reconciliation of segment revenues to consolidated revenues and segment operating profit to consolidated income before provision for income taxes is presented below: For the Years Ended December 31, 2018 2017 2016 Total segment revenues $ 1,844,109 $ 1,452,287 $ 1,160,815 Other income included in segment revenues (1,197 ) (1,839 ) (683 ) Revenues $ 1,842,912 $ 1,450,448 $ 1,160,132 Total segment operating profit: $ 349,099 $ 275,326 $ 218,121 Unallocated amounts: Other income included in segment revenues (1,197 ) (1,839 ) (683 ) Stock-based compensation expense (59,188 ) (52,407 ) (49,244 ) Non-corporate taxes (9,856 ) (9,659 ) (5,909 ) Professional fees (6,188 ) (8,032 ) (8,265 ) Depreciation and amortization (8,057 ) (7,632 ) (8,290 ) Bank charges (2,358 ) (1,969 ) (1,515 ) One-time charges and other acquisition-related expenses (2,055 ) (1,741 ) (706 ) Other operating expenses (14,436 ) (19,101 ) (9,813 ) Income from operations 245,764 172,946 133,696 Interest and other income, net 3,522 4,601 4,848 Foreign exchange gain/(loss) 487 (3,242 ) (12,078 ) Income before provision for income taxes $ 249,773 $ 174,305 $ 126,466 During the year ended December 31, 2018, the Company began to allocate certain staff recruitment and development expenses into segment operating profit as these expenses became part of the evaluation of segment management’s performance. These costs were previously not allocated to segments and were included in unallocated amounts in the reconciliation of segment operating profit to consolidated income before provision for income taxes above. The effect of this reclassification was not material to segment operating profit and had no impact on total income from operations for the year end December 31, 2018. Geographic Area Information Long-lived assets include property and equipment, net of accumulated depreciation and amortization, and management has determined that it is not practical to allocate these assets by segment since such assets are used interchangeably among the segments. Physical locations and values of the Company’s long-lived assets are presented below: As of As of As of December 31, 2016 Belarus $ 50,085 $ 49,866 $ 46,011 United States 13,101 3,371 2,618 Russia 9,902 9,617 7,203 Ukraine 8,433 6,995 5,610 India 7,019 2,698 1,650 Hungary 3,168 3,901 3,485 China 2,651 2,608 1,887 Poland 2,637 2,893 2,213 Other 5,650 4,470 2,939 Total $ 102,646 $ 86,419 $ 73,616 The table below presents the Company’s revenues by customer location for the years ended December 31, 2018 , 2017 and 2016 : For the Years Ended December 31, 2018 2017 2016 United States $ 1,029,327 $ 783,563 $ 611,392 United Kingdom 200,918 188,995 177,194 Switzerland 144,398 123,281 122,919 Germany 80,787 60,158 43,621 Russia 71,181 61,222 40,944 Netherlands 70,274 51,556 17,521 Canada 69,836 57,129 59,189 Other 176,191 124,544 87,352 Revenues $ 1,842,912 $ 1,450,448 $ 1,160,132 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly results for the years ended December 31, 2018 and 2017 were as follows: Three Months Ended 2018 March 31 June 30 September 30 December 31 Full Year Revenues $ 424,148 $ 445,647 $ 468,186 $ 504,931 $ 1,842,912 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 277,634 289,175 301,081 319,031 1,186,921 Selling, general and administrative expenses 89,641 93,273 93,226 97,447 373,587 Depreciation and amortization expense 8,176 8,962 9,319 10,183 36,640 Income from operations 48,697 54,237 64,560 78,270 245,764 Interest and other income/(expense), net (551 ) 1,052 1,941 1,080 3,522 Foreign exchange gain/(loss) (247 ) 1,830 (514 ) (582 ) 487 Income before provision for/(benefit from) income taxes 47,899 57,119 65,987 78,768 249,773 Provision for/(benefit from) income taxes (16,519 ) 6,864 369 18,803 9,517 Net income $ 64,418 $ 50,255 $ 65,618 $ 59,965 $ 240,256 Comprehensive income $ 67,796 $ 32,345 $ 63,426 $ 52,798 $ 216,365 Basic net income per share (1) $ 1.21 $ 0.94 $ 1.22 $ 1.11 $ 4.48 Diluted net income per share (1) $ 1.15 $ 0.89 $ 1.15 $ 1.05 $ 4.24 (1) Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. Three Months Ended 2017 March 31 June 30 September 30 December 31 Full Year Revenues $ 324,651 $ 348,977 $ 377,523 $ 399,297 $ 1,450,448 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 207,730 220,132 239,369 254,121 921,352 Selling, general and administrative expenses 79,283 81,143 81,732 85,430 327,588 Depreciation and amortization expense 6,672 7,020 7,174 7,696 28,562 Income from operations 30,966 40,682 49,248 52,050 172,946 Interest and other income, net 584 802 1,416 1,799 4,601 Foreign exchange (loss)/gain (2,955 ) 1,562 (77 ) (1,772 ) (3,242 ) Income before provision for income taxes 28,595 43,046 50,587 52,077 174,305 Provision for income taxes 4,954 5,687 7,953 82,951 101,545 Net income/(loss) $ 23,641 $ 37,359 $ 42,634 $ (30,874 ) $ 72,760 Comprehensive income/(loss) $ 30,027 $ 41,910 $ 48,337 $ (27,449 ) $ 92,825 Basic net income/(loss) per share (1) $ 0.46 $ 0.72 $ 0.81 $ (0.58 ) $ 1.40 Diluted net income/(loss) per share (1) (2) $ 0.44 $ 0.68 $ 0.77 $ (0.58 ) $ 1.32 (1) Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. (2) Due to the net loss during the three months ended December 31, 2017, zero incremental shares are included in the calculation of diluted loss per share because of their antidilutive effect. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2018 , 2017 AND 2016 (In thousands) Balance at Beginning of Year Additions Deductions/ Write offs Balance at End of Year Year Ended December 31, 2018 Allowance for doubtful accounts for accounts receivable $ 1,186 2,722 (2,351 ) $ 1,557 Valuation allowance on deferred tax assets $ 924 2,265 — $ 3,189 Year Ended December 31, 2017 Allowance for doubtful accounts for accounts receivable $ 2,014 998 (1,826 ) $ 1,186 Valuation allowance on deferred tax assets $ — 924 — $ 924 Year Ended December 31, 2016 Allowance for doubtful accounts for accounts receivable $ 1,729 3,500 (3,215 ) $ 2,014 |
BUSINESS AND SIGNIFICANT ACCOUN
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations | EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading global provider of digital platform engineering and software development services to customers located around the world, primarily in North America, Europe, Asia and Australia. Our industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as other industries in which we are continuously growing. The Company is incorporated in Delaware with headquarters in Newtown, PA. |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM and its subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash equivalents are short-term, highly liquid investments that are readily convertible into cash, with maturities of three months or less at the date acquired |
Accounts Receivable | Accounts Receivable — Accounts receivable are stated net of allowance for doubtful accounts. Outstanding accounts receivable are reviewed periodically and allowances are provided when management believes it is probable that such balances will not be collected within a reasonable time. The allowance for doubtful accounts is determined by evaluating the relative creditworthiness of each customer, historical collections experience and other information, including the aging of the receivables. Accounts receivable are generally written off when they are deemed uncollectible. Bad debts are recorded based on historical experience and management’s evaluation of accounts receivable. |
Property and Equipment | Property and Equipment — Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets generally ranging from two to fifty years. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. Maintenance and repairs are expensed as incurred. |
Business Combinations | Business Combinations — The Company accounts for its business combinations using the acquisition accounting method, which requires it to determine the fair value of net assets acquired and the related goodwill and other intangible assets in accordance with the FASB ASC Topic 805, Business Combinations . The Company identifies and attributes fair values and estimated lives to the intangible assets acquired and allocates the total cost of an acquisition to the underlying net assets based on their respective estimated fair values. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and involves the use of significant estimates, including projections of future cash inflows and outflows, discount rates, asset lives and market multiples. There are different valuation models for each component, the selection of which requires considerable judgment. These determinations will affect the amount of amortization expense recognized in future periods. The Company bases its fair value estimates on assumptions it believes are reasonable, but recognizes that the assumptions are inherently uncertain. All acquisition-related costs, other than the costs to issue debt or equity securities, are accounted for as expenses in the period in which they are incurred. Changes in the fair value of contingent consideration arrangements that are not measurement period adjustments are recognized in earnings. The acquired assets typically include customer relationships, trade names, non-competition agreements, and assembled workforce and, as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. |
Long-Lived Assets | Long-Lived Assets — Long-lived assets, such as property and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the carrying value of an asset is more than the sum of the undiscounted expected future cash flows, an impairment is recognized. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill and other intangible assets that have indefinite useful lives are accounted for in accordance with the FASB ASC 350, Intangibles — Goodwill and Other . The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31st, and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is an operating segment or one level below. The Company does not have intangible assets other than goodwill that have indefinite useful lives. |
Derivative Financial Instruments | Derivative Financial Instruments — The Company enters into derivative financial instruments to manage exposure to fluctuations in certain foreign currencies. During 2018, for accounting purposes, these foreign currency forward contracts became designated as hedges, as defined under FASB ASC Topic 815, Derivatives and Hedging . The Company measures these foreign currency derivative contracts at fair value on a recurring basis utilizing Level 2 inputs. The Company records changes in the fair value of these hedges in accumulated other comprehensive income/(loss) until the forecasted transaction occurs. When the forecasted transaction occurs, the Company reclassifies the related gain or loss on the cash flow hedge to cost of revenues (exclusive of depreciation and amortization). In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the Company reclassifies the gain or loss on the underlying hedge from accumulated other comprehensive income/(loss) into income. If the Company does not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in income. The cash flow impact of derivatives identified as hedging instruments is reflected as cash flows from operating activities. The cash flow impact of derivatives not identified as hedging instruments is reflected as cash flows from investing activities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The Company makes assumptions about fair values of its financial assets and liabilities in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement , and utilizes the following fair value hierarchy in determining inputs used for valuation: Level 1 — Quoted prices for identical assets or liabilities in active markets. Level 2 — Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. Level 3 — Unobservable inputs reflecting management’s view about the assumptions that market participants would use in pricing the asset or liability. Where the fair values of financial assets and liabilities recorded in the consolidated balance sheets cannot be derived from an active market, they are determined using a variety of valuation techniques. These valuation techniques include a net present value technique, comparison to similar instruments with market observable inputs, option pricing models and other relevant valuation models. To the extent possible, observable market data is used as inputs into these models but when it is not feasible, a degree of judgment is required to establish fair values. Changes in the fair value of liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 11 “Fair Value Measurements.” |
Revenue Recognition | Revenue Recognition — Effective January 1, 2018, the Company adopted the new Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) as amended using the modified retrospective method. The standard effectively replaced previously existing revenue recognition guidance (Topic 605) and requires entities to recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services as well as requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company applied a practical expedient to aggregate the effect of all contract modifications that occurred before the adoption date. The following table summarizes the cumulative effect of adopting Topic 606 using the modified retrospective method of adoption as of January 1, 2018: Balance as of Adjustments Balance as of Balance Sheet Assets Unbilled revenues $ 86,500 $ (78 ) $ 86,422 Deferred tax assets $ 24,974 $ (173 ) $ 24,801 Liabilities Accrued expenses and other current liabilities $ 89,812 $ (708 ) $ 89,104 Stockholders’ equity Retained earnings $ 518,820 $ 457 $ 519,277 The following tables summarize the impacts of changes in accounting policies after adoption of Topic 606 on the Company’s consolidated financial statements for the year ended December 31, 2018 , which primarily resulted from deferring the timing of revenue recognition for contracts that were previously recognized on a cash basis and recognizing revenues from certain license agreements at a point-in-time rather than over time: As of December 31, 2018 As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Balance Sheet Liabilities Accrued expenses and other current liabilities $ 127,937 $ 127,690 $ 247 Other noncurrent liabilities $ 17,661 $ 17,716 $ (55 ) Stockholders’ equity Retained earnings $ 759,533 $ 759,725 $ (192 ) Year Ended December 31, 2018 As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Income Statement Revenues $ 1,842,912 $ 1,843,159 $ (247 ) Income from operations $ 245,764 $ 246,011 $ (247 ) Provision for income taxes $ 9,517 $ 9,572 $ (55 ) Net income $ 240,256 $ 240,448 $ (192 ) For the year ended December 31, 2018 The Company recognizes revenues when control of goods or services is passed to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Such control may be transferred over time or at a point in time depending on satisfaction of obligations stipulated by the contract. Consideration expected to be received may consist of both fixed and variable components and is allocated to each separately identifiable performance obligation based on the performance obligation’s relative standalone selling price. Variable consideration usually takes the form of volume-based discounts, service level credits, price concessions or incentives. Determining the estimated amount of such variable consideration involves assumptions and judgment that can have an impact on the amount of revenues reported. The Company derives revenues from a variety of service arrangements, which have been evolving to provide more customized and integrated solutions to customers by combining software engineering with customer experience design, business consulting and technology innovation services. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. The Company generates the majority of its revenues under time-and-material contracts, which are billed using hourly, daily or monthly rates to determine the amounts to be charged directly to the customer. EPAM applies a practical expedient and revenues related to time-and-material contracts are recognized based on the right to invoice for services performed. Fixed-price contracts include maintenance and support arrangements which may exceed one year in duration. Maintenance and support arrangements generally relate to the provision of ongoing services and revenues for such contracts are recognized ratably over the expected service period. Fixed-price contracts also include application development arrangements, where progress towards satisfaction of the performance obligation is measured using input or output methods and input methods are used only when there is a direct correlation between hours incurred and the end product delivered. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. Revenues from licenses which have significant stand-alone functionality are recognized at a point in time when control of the license is transferred to the customer. Revenues from licenses which do not have stand-alone functionality are recognized over time. If there is an uncertainty about the receipt of payment for the services, revenue recognition is deferred until the uncertainty is sufficiently resolved. The Company applies a practical expedient and does not assess the existence of a significant financing component if the period between transfer of the service to a customer and when the customer pays for that service is one year or less. The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. For the years ended December 31, 2017 and 2016 The Company recognized revenue when the following criteria were met: (1) persuasive evidence of an arrangement existed; (2) delivery had occurred; (3) the sales price was fixed or determinable; and (4) collectability was reasonably assured. Determining whether and when some of these criteria had been satisfied often involved assumptions and judgments that could have had a significant impact on the timing and amount of revenue reported. The Company derived its revenues from a variety of service offerings, which represent specific competencies of its IT professionals. Contracts for these services have different terms and conditions based on the scope, deliverables, and complexity of the engagement, which require management to make judgments and estimates in determining the appropriate revenue recognition. Fees for these contracts may have been in the form of time-and-materials or fixed-price arrangements. If there was uncertainty about the project completion or receipt of payment for the services, revenue was deferred until the uncertainty was sufficiently resolved. At the time revenue was recognized, the Company provided for any contractual deductions and reduced revenue accordingly. The Company reported gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. The Company deferred amounts billed to its customers for revenues not yet earned. Such amounts were anticipated to be recorded as revenues when services were performed in subsequent periods. Unbilled revenue was recorded when services have been provided but billed subsequent to the period end in accordance with the contract terms. The majority of the Company’s revenues ( 90.3% of revenues in 2017 and 88.2% in 2016) were generated under time-and-material contracts whereby revenues were recognized as services were performed with the corresponding cost of providing those services reflected as cost of revenues. The majority of such revenues were billed using hourly, daily or monthly rates as actual time was incurred on the project. Revenues from fixed-price contracts ( 8.3% of revenues in 2017 and 10.4% in 2016) included fixed-price maintenance and support arrangements, which may have exceeded one year in duration and revenues from maintenance and support arrangements were generally recognized ratably over the expected service period. Fixed-price contracts also included application development arrangements and revenues from these arrangements were primarily determined using the proportional performance method. In cases where final acceptance of the product, system, or solution was specified by the customer, and the acceptance criteria were not objectively determinable to have been met as the services were provided, revenues were deferred until all acceptance criteria had been met. In the absence of a sufficient basis to measure progress towards completion, revenue was recognized upon receipt of final acceptance from the customer. Assumptions, risks and uncertainties inherent in the estimates used in the application of the proportional performance method of accounting could have affected the amount of revenues, receivables and deferred revenues at each reporting period. |
Cost of Revenues (Exclusive of Depreciation and Amortization) | Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries, bonuses, fringe benefits, stock-based compensation expense, project related travel costs and fees for subcontractors that are assigned to customer projects. Salaries and other compensation expenses of our revenue generating professionals are reported as cost of revenues regardless of whether the employees are actually performing client services during a given period. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses — Consists of expenses associated with promoting and selling our services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation expense, severance, travel, legal and audit services, insurance, operating leases and lease exit costs, advertising and other promotional activities. In addition, we pay a membership fee of 1% of revenues generated in Belarus to the administrative organization of the Belarus High-Technologies Park. |
Stock-based Compensation | Stock-Based Compensation — The Company recognizes the cost of its equity settled stock-based incentive awards based on the fair value of the award at the date of grant, net of estimated forfeitures. The cost is expensed evenly over the service period. The service period is the period over which the employee performs the related services, which is normally the same as the vesting period. Quarterly, the forfeiture assumption is adjusted and such adjustment may affect the timing of recognition of the total amount of expense recognized over the vesting period. Equity-based awards that do not require future service are expensed immediately. Stock-based awards that do not meet the criteria for equity classification are recorded as liabilities and adjusted to fair value at the end of each reporting period. |
Income Taxes | Income Taxes — The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes. The realizability of deferred tax assets is primarily dependent on future earnings. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. A reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings. On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (“U.S. Tax Act”), which subjects a U.S. shareholder to taxes on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. During the year ended December 31, 2018 , the Company elected to provide for the tax expense related to GILTI in the year the tax is incurred. This election did not have a material impact on the financial statements for the year ended December 31, 2018 . |
Earnings Per Share (EPS) | Earnings per Share (“EPS”) — Basic EPS is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period, increased by the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. |
Foreign Currency Transaction | Foreign Currency Translation — Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income/(loss). For consolidated foreign subsidiaries whose functional currency is the U.S. dollar, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur. |
Risks and Uncertainties | Risks and Uncertainties — As a result of its global operations, the Company may be subject to certain inherent risks. Concentration of Credit — Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable and unbilled revenues. The Company maintains cash and cash equivalents and short-term deposits with financial institutions. The Company determined that the Company’s credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. We have cash in banks in countries such as Belarus, Russia, Ukraine, Kazakhstan and Armenia, where banking and other financial systems are less developed and regulated than in some more developed markets, and bank deposits made by corporate entities there are not insured. As of December 31, 2018 , $179,478 of total cash was kept in banks in these countries, of which $119,726 was held in Belarus. In this region, and particularly in Belarus, a banking crisis, bankruptcy or insolvency of banks that process or hold our funds, may result in the loss of our deposits or adversely affect our ability to complete banking transactions in these countries, which could adversely affect our business and financial condition. Unbilled revenues and accounts receivable are generally dispersed across the Company’s customers in proportion to their revenues. There were no customers individually exceeding 10% of our unbilled revenues as of December 31, 2018 . As of December 31, 2017 , unbilled revenues from one customer exceeded 10% and accounted for 13.0% of our total unbilled revenues. There were no customers individually exceeding 10% of our accounts receivable as of December 31, 2018 and 2017 . Foreign currency risk — The Company’s global operations are conducted predominantly in U.S. dollars. Other than U.S. dollars, the Company generates a significant portion of revenues in various currencies, principally, euros, British pounds, Canadian dollars, Swiss francs and Russian rubles and incurs expenditures principally in Hungarian forints, Russian rubles, Polish zlotys, Swiss francs, British pounds, Indian rupees and China yuan renminbi associated with the locations of its delivery centers. The Company’s international operations expose it to foreign currency exchange rate changes that could impact translations of foreign denominated assets and liabilities into U.S. dollars and future earnings and cash flows from transactions denominated in different currencies. The Company is exposed to fluctuations in foreign currency exchange rates primarily related to accounts receivable and unbilled revenues from sales in foreign currencies and cash outflows for expenditures in foreign currencies. The Company’s results of operations, primarily revenues and expenses denominated in foreign currencies, can be affected if any of the currencies, which we use materially in our business, appreciate or depreciate against the U.S. dollar. The Company has a hedging program whereby it entered into a series of foreign exchange forward contracts that are designated as cash flow hedges of forecasted Russian ruble, Polish zloty and Indian rupee transactions. Interest rate risk — The Company’s exposure to market risk is influenced primarily by changes in interest rates received on cash and cash equivalents and paid on any outstanding balance on the Company’s revolving line of credit, which is subject to various rates depending on the type and timing of funds borrowed (See Note 8 “Long-Term Debt”). The Company does not use derivative financial instruments to hedge the risk of interest rate volatility. |
Adoption of New/ Pending Accounting Standards | Adoption of New Accounting Standards Unless otherwise discussed below, the adoption of new accounting standards did not have a material impact on the Company’s consolidated financial position, results of operations, and cash flows. Revenue Recognition — As discussed above, effective January 1, 2018, the Company adopted the new accounting standard ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as amended using the modified retrospective method. Restricted cash and restricted cash equivalents — Effective January 1, 2018, the Company adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash which requires the Company to include in its cash and cash equivalents balances presented in the statements of cash flows amounts that are deemed to be restricted in nature. As a result of the adoption, the Company restated its consolidated statements of cash flows for all of the prior periods presented. The impact of adoption on the Company’s consolidated statements of cash flows was as follows for the year ended December 31, 2017 and 2016: Year Ended December 31, 2017 As Originally Reported Restated Effect Cash flows from operating activities: Changes in operating assets and liabilities: Prepaid expenses and other assets $ 3,605 $ 1,061 $ (2,544 ) Net cash provided by operating activities $ 195,364 $ 192,820 $ (2,544 ) Cash flows from investing activities: Decrease in restricted cash and time deposits, net $ 8 $ — $ (8 ) Acquisition of businesses, net of cash acquired $ (6,840 ) $ (6,810 ) $ 30 Net cash used in investing activities $ (36,173 ) $ (36,151 ) $ 22 Effect of exchange rate changes on cash, cash equivalents, and restricted cash $ 11,623 $ 11,776 $ 153 Net increase in cash, cash equivalents and restricted cash $ 220,560 $ 218,191 $ (2,369 ) Cash, cash equivalents and restricted cash, beginning of period 362,025 364,664 2,639 Cash, cash equivalents and restricted cash, end of period $ 582,585 $ 582,855 $ 270 Year Ended December 31, 2016 As Originally Reported Restated Effect Cash flows from operating activities: Changes in operating assets and liabilities: Prepaid expenses and other assets $ (4,791 ) $ (2,391 ) $ 2,400 Net cash provided by operating activities $ 164,817 $ 167,217 $ 2,400 Cash flows from investing activities: Decrease in restricted cash and time deposits, net $ 29,595 $ 29,597 $ 2 Net cash used in investing activities $ (9,322 ) $ (9,320 ) $ 2 Effect of exchange rate changes on cash, cash equivalents, and restricted cash $ (3,386 ) $ (3,387 ) $ (1 ) Net increase in cash, cash equivalents and restricted cash $ 162,576 $ 164,977 $ 2,401 Cash, cash equivalents and restricted cash, beginning of period 199,449 199,687 238 Cash, cash equivalents and restricted cash, end of period $ 362,025 $ 364,664 $ 2,639 Derivatives and Hedging — Effective April 1, 2018, the Company early-adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The new guidance is intended to simplify and amend hedge accounting and reporting to better align and disclose the economic results of an entity’s risk management activities in its financial statements. The ASU makes more financial and non-financial hedging strategies eligible for hedge accounting. It also changes how companies assess hedge effectiveness and amends the presentation and disclosure requirements by eliminating the requirement to separately measure and report hedge ineffectiveness and generally requires companies, for qualifying hedges, to present the entire change in the fair value of a hedging instrument in the same income statement line as the hedged item. The guidance also eases documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. The guidance requires entities to apply the amended presentation and disclosure guidance prospectively as of the period of adoption. The adoption of this guidance did not have any effect on the consolidated financial results. Pending Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that the Company will adopt according to the various timetables the FASB specifies. Unless otherwise discussed below, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. Leases — Effective January 1, 2019, the Company will be required to adopt the new guidance of FASB ASC Topic 842, Leases (Topic 842) (with early adoption permitted effective January 1, 2018). This amendment supersedes previous accounting guidance (Topic 840) and requires all leases, with the exception of leases with a term of twelve months or less, to be recorded on the balance sheet as lease assets and lease liabilities. The standard allows for two methods of adoption to recognize and measure leases: retrospectively to each prior period presented in the financial statements with the cumulative effect of initially applying the guidance recognized at the beginning of the earliest comparative period presented or retrospectively at the beginning of the period of adoption with the cumulative effect of initially applying the guidance recognized at the beginning of the period in which the guidance is first applied. Both adoption methods include a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The transition guidance in Topic 842 also provides specific guidance for the amounts previously recognized in accordance with the business combinations guidance for leases. The Company is near completion of implementing its transition plan, which includes making necessary changes to policies and processes, conducting detailed contract reviews, developing incremental borrowing rates, implementing a global lease accounting system, and assessing internal control impacts to comply with the new standard. The Company will adopt this standard effective January 1, 2019 using the method of adoption whereby the cumulative effect of adoption is recognized at the beginning of the period of adoption. The Company has elected to use the package of practical expedients permitted under the transition guidance within the new standard. The Company has also elected the practical expedient that permits it to not separate lease and non-lease components. While the Company is currently finalizing its assessment of the quantitative impact, the Company expects to recognize right-of-use assets ranging from $175,000 to $195,000 and lease liabilities ranging from $170,000 to $190,000 in its consolidated balance sheet upon adoption, principally related to its office space leases. EPAM does not expect the new guidance to have a material impact on its consolidated statement of income and comprehensive income or its consolidated statement of cash flows. Measurement of Credit Losses on Financial Instruments — Effective January 1, 2020, the Company will be required to adopt the amended guidance of FASB ASC Topic 326, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , (with early adoption permitted effective January 1, 2019.) The amendments in this update change how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including trade receivables) that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. Entities are required to adopt the standard using a modified-retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The Company has not yet completed its assessment of the impact of the new guidance on its consolidated financial statements or concluded on when it will adopt the standard. |
REVENUES REVENUES (Policies)
REVENUES REVENUES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Unbilled Revenues | Contract assets included in unbilled revenues are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. |
Impairment loss | The Company recognizes an impairment loss when the contract carrying amount is greater than the remaining consideration receivable, less directly related costs to be incurred. |
Deferred Revenue | Contract liabilities comprise amounts collected from the Company’s customers for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENT (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Employee Loans | The housing loans are measured using the Level 3 inputs within the fair value hierarchy under FASB ASC Topic 820, Fair Value Measurement because they are valued using significant unobservable inputs. The fair value of employee housing loans is estimated using information on the rates of return that market participants in Belarus would require when investing in unsecured U.S. dollar-denominated government bonds with similar maturities (a “risk-free rate”), after taking into consideration any applicable credit and liquidity risk. They are subsequently carried at amortized cost less allowance for loan losses, which have been minimal since the commencement of the program as participants go through a rigorous approval and screening process. Any difference between the carrying value and the fair value of a loan upon initial recognition is charged to expense. |
SEGMENT INFORMATION SEGMENT INF
SEGMENT INFORMATION SEGMENT INFORMATION (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Reclassification | During the year ended December 31, 2018, the Company began to allocate certain staff recruitment and development expenses into segment operating profit as these expenses became part of the evaluation of segment management’s performance. These costs were previously not allocated to segments and were included in unallocated amounts in the reconciliation of segment operating profit to consolidated income before provision for income taxes above. The effect of this reclassification was not material to segment operating profit and had no impact on total income from operations for the year end December 31, 2018. |
BUSINESS AND SIGNIFICANT ACCO_2
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Topic 606 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect of Adoption of ASU | The following table summarizes the cumulative effect of adopting Topic 606 using the modified retrospective method of adoption as of January 1, 2018: Balance as of Adjustments Balance as of Balance Sheet Assets Unbilled revenues $ 86,500 $ (78 ) $ 86,422 Deferred tax assets $ 24,974 $ (173 ) $ 24,801 Liabilities Accrued expenses and other current liabilities $ 89,812 $ (708 ) $ 89,104 Stockholders’ equity Retained earnings $ 518,820 $ 457 $ 519,277 The following tables summarize the impacts of changes in accounting policies after adoption of Topic 606 on the Company’s consolidated financial statements for the year ended December 31, 2018 , which primarily resulted from deferring the timing of revenue recognition for contracts that were previously recognized on a cash basis and recognizing revenues from certain license agreements at a point-in-time rather than over time: As of December 31, 2018 As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Balance Sheet Liabilities Accrued expenses and other current liabilities $ 127,937 $ 127,690 $ 247 Other noncurrent liabilities $ 17,661 $ 17,716 $ (55 ) Stockholders’ equity Retained earnings $ 759,533 $ 759,725 $ (192 ) Year Ended December 31, 2018 As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Income Statement Revenues $ 1,842,912 $ 1,843,159 $ (247 ) Income from operations $ 245,764 $ 246,011 $ (247 ) Provision for income taxes $ 9,517 $ 9,572 $ (55 ) Net income $ 240,256 $ 240,448 $ (192 ) |
ASU 2016-18 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect of Adoption of ASU | The impact of adoption on the Company’s consolidated statements of cash flows was as follows for the year ended December 31, 2017 and 2016: Year Ended December 31, 2017 As Originally Reported Restated Effect Cash flows from operating activities: Changes in operating assets and liabilities: Prepaid expenses and other assets $ 3,605 $ 1,061 $ (2,544 ) Net cash provided by operating activities $ 195,364 $ 192,820 $ (2,544 ) Cash flows from investing activities: Decrease in restricted cash and time deposits, net $ 8 $ — $ (8 ) Acquisition of businesses, net of cash acquired $ (6,840 ) $ (6,810 ) $ 30 Net cash used in investing activities $ (36,173 ) $ (36,151 ) $ 22 Effect of exchange rate changes on cash, cash equivalents, and restricted cash $ 11,623 $ 11,776 $ 153 Net increase in cash, cash equivalents and restricted cash $ 220,560 $ 218,191 $ (2,369 ) Cash, cash equivalents and restricted cash, beginning of period 362,025 364,664 2,639 Cash, cash equivalents and restricted cash, end of period $ 582,585 $ 582,855 $ 270 Year Ended December 31, 2016 As Originally Reported Restated Effect Cash flows from operating activities: Changes in operating assets and liabilities: Prepaid expenses and other assets $ (4,791 ) $ (2,391 ) $ 2,400 Net cash provided by operating activities $ 164,817 $ 167,217 $ 2,400 Cash flows from investing activities: Decrease in restricted cash and time deposits, net $ 29,595 $ 29,597 $ 2 Net cash used in investing activities $ (9,322 ) $ (9,320 ) $ 2 Effect of exchange rate changes on cash, cash equivalents, and restricted cash $ (3,386 ) $ (3,387 ) $ (1 ) Net increase in cash, cash equivalents and restricted cash $ 162,576 $ 164,977 $ 2,401 Cash, cash equivalents and restricted cash, beginning of period 199,449 199,687 238 Cash, cash equivalents and restricted cash, end of period $ 362,025 $ 364,664 $ 2,639 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the dates of acquisition as updated for any changes as of December 31, 2018 : Continuum Think As of March 15, 2018 As of November 1, 2018 Cash and cash equivalents $ 2,251 $ 2,344 Accounts receivable 6,676 2,259 Unbilled revenues 2,463 284 Prepaid and other current assets 936 609 Goodwill 26,617 22,482 Intangible assets 14,450 6,882 Property and equipment and other noncurrent assets 8,902 642 Total assets acquired $ 62,295 $ 35,502 Accounts payable, accrued expenses and other current liabilities $ 2,745 $ 2,205 Due to employees 1,001 13 Long-term debt (Note 8) 3,220 — Other noncurrent liabilities 490 1,040 Total liabilities assumed $ 7,456 $ 3,258 Net assets acquired $ 54,839 $ 32,244 |
Fair Values and Useful Lives of Intangible Assets Acquired | The following table presents the estimated fair values and useful lives of intangible assets acquired during the year ended December 31, 2018 : Continuum Think Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 6.5 $ 5,800 7 $ 6,117 Favorable lease 11.2 5,500 — — Contract royalties 8 1,900 — — Trade names 5 1,250 5 765 Total $ 14,450 $ 6,882 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill By Reportable Segment | Goodwill by reportable segment was as follows: North America Europe Total Balance as of January 1, 2017 $ 76,812 $ 32,477 $ 109,289 Other acquisitions 199 4,533 4,732 Other acquisitions purchase accounting adjustments (285 ) 2,100 1,815 Effect of currency translation 564 3,131 3,695 Balance as of December 31, 2017 77,290 42,241 119,531 Continuum acquisition (Note 2) 26,617 — 26,617 Think acquisition (Note 2) — 22,482 22,482 Effect of currency translation (365 ) (1,433 ) (1,798 ) Balance as of December 31, 2018 $ 103,542 $ 63,290 $ 166,832 |
Components of Intangible Assets | Intangible assets other than goodwill as of December 31, 2018 and 2017 were as follows: As of December 31, 2018 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 9.5 $ 78,042 $ (29,580 ) $ 48,462 Favorable lease 11.2 5,500 (410 ) 5,090 Trade names 5.3 6,111 (4,300 ) 1,811 Contract royalties 8 1,900 (198 ) 1,702 Total $ 91,553 $ (34,488 ) $ 57,065 As of December 31, 2017 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 10 $ 66,646 $ (22,200 ) $ 44,446 Trade names 5 4,099 (4,034 ) 65 Total $ 70,745 $ (26,234 ) $ 44,511 |
Intangible Assets Amortization Expense Recognized | The following table presents amortization expense recognized for the periods indicated: For the Years Ended December 31, 2018 2017 2016 Customer relationships $ 7,637 $ 6,643 $ 6,858 Favorable lease 410 — — Trade names 266 896 1,139 Contract royalties 198 — — Non-competition agreements — 23 173 Total $ 8,511 $ 7,562 $ 8,170 |
Estimated Amortization Expense | The following table presents estimated amortization expense related to the Company’s existing intangible assets for the years ended December 31: Amount 2019 $ 9,520 2020 9,520 2021 9,520 2022 9,379 2023 8,153 Thereafter 10,973 Total $ 57,065 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consisted of the following: Weighted Average Useful Life (in years) As of As of Computer hardware 3 $ 74,884 $ 62,132 Building 49 34,458 34,058 Leasehold improvements 9 25,036 13,186 Furniture and fixtures 7 21,544 18,071 Office equipment 7 13,203 10,825 Purchased computer software 4 10,406 8,379 Land improvements 20 1,474 1,474 181,005 148,125 Less accumulated depreciation and amortization (78,359 ) (61,706 ) Total $ 102,646 $ 86,419 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of As of Accrued compensation expense and related costs $ 97,877 $ 67,034 Deferred revenue 4,558 4,498 Other current liabilities and accrued expenses 25,502 18,280 Total $ 127,937 $ 89,812 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Taxes Payable [Abstract] | |
Components of Current Taxes Payable | Current taxes payable consisted of the following: As of As of Income taxes payable $ 27,538 $ 9,488 Payroll, social security, and other taxes payable 20,322 16,696 Value added taxes payable 19,985 14,676 Total $ 67,845 $ 40,860 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income/(Loss) Before Provision of Income Taxes | Income/(loss) before provision for income taxes based on geographic location is disclosed in the table below: For the Years Ended December 31, 2018 2017 2016 Income/(loss) before provision for income taxes: United States $ 44,527 $ (6,595 ) $ (9,300 ) Foreign 205,246 180,900 135,766 Total $ 249,773 $ 174,305 $ 126,466 |
Provision for Income Taxes | The provision for income taxes consists of the following: For the Years Ended December 31, 2018 2017 2016 Current Federal $ 10,814 $ 65,571 $ 13,324 State 4,123 (204 ) (63 ) Foreign 42,580 23,617 17,243 Deferred Federal (37,785 ) 7,235 (3,581 ) State (3,548 ) (90 ) 312 Foreign (6,667 ) 5,416 (35 ) Total $ 9,517 $ 101,545 $ 27,200 |
Effective Tax Rate Reconciliation | The reconciliation of the provision for income taxes at the federal statutory income tax rate to our effective income tax rate is as follows: For the Years Ended December 31, 2018 2017 2016 Provision for income taxes at federal statutory rate $ 52,452 $ 61,007 $ 44,263 Increase/(decrease) in taxes resulting from: Impact from U.S. Tax Act (4,009 ) 74,632 — Entity classification election deferred tax asset impact (25,962 ) — — GILTI and BEAT U.S. taxes 1,526 — — Excess tax benefits relating to stock-based compensation (17,370 ) (9,307 ) — Subsidiary withholding tax liability and related foreign tax credit (4,850 ) 4,850 — Foreign tax expense and tax rate differential (88 ) (39,997 ) (33,477 ) Effect of permanent differences 2,724 3,205 5,042 State taxes, net of federal benefit 3,452 (116 ) 1,192 Change in valuation allowance 151 783 — Stock-based compensation expense 652 6,908 9,535 Other 839 (420 ) 645 Provision for income taxes $ 9,517 $ 101,545 $ 27,200 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: As of As of Deferred tax assets: Property and equipment $ 4,531 $ 170 Intangible assets 1,262 1,456 Accrued expenses 32,067 4,392 Net operating loss carryforward 4,983 5,069 Deferred revenue 5,802 1,280 Stock-based compensation 27,558 16,197 Foreign currency exchange 5,772 — Other assets 782 1,415 Deferred tax assets $ 82,757 $ 29,979 Less: valuation allowance (3,189 ) (924 ) Total deferred tax assets $ 79,568 $ 29,055 Deferred tax liabilities: Property and equipment $ 1,480 $ 1,868 Intangible assets 5,582 3,077 Accrued revenue and expenses 1,540 1,352 U.S. taxation of foreign subsidiaries 3,000 — Subsidiary withholding tax liability — 4,850 Stock-based compensation — 1,498 Other liabilities 933 239 Total deferred tax liabilities $ 12,535 $ 12,884 Net deferred tax assets $ 67,033 $ 16,171 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Outstanding Debt And Borrowing Capacity under 2017 Credit Facility | The following table presents the outstanding debt and borrowing capacity of the Company under the 2017 Credit Facility: As of As of Outstanding debt $ 25,000 $ 25,000 Interest rate 3.5 % 2.6 % Irrevocable standby letters of credit $ 382 $ 1,294 Available borrowing capacity $ 274,618 $ 273,706 Current maximum borrowing capacity $ 300,000 $ 300,000 |
REVENUES REVENUES (Tables)
REVENUES REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following tables show the disaggregation of the Company’s revenues by major customer location, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the year ended December 31, 2018: Year Ended December 31, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Customer Locations North America $ 1,046,333 $ 52,859 $ 75 $ 1,099,267 $ (100 ) — $ 1,099,167 Europe 16,693 596,559 52 613,304 (832 ) — 612,472 CIS 8,437 336 72,930 81,703 — — 81,703 APAC 5,631 44,113 91 49,835 (265 ) — 49,570 Revenues $ 1,077,094 $ 693,867 $ 73,148 $ 1,844,109 $ (1,197 ) $ 1,842,912 The following tables show the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the year ended December 31, 2018: Year Ended December 31, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Industry Verticals Financial Services $ 112,528 $ 253,089 $ 59,337 $ 424,954 $ (977 ) $ 423,977 Travel & Consumer 177,913 208,445 7,467 393,825 (182 ) 393,643 Software & Hi-Tech 269,067 79,121 2,627 350,815 — 350,815 Business Information & Media 251,081 72,898 54 324,033 — 324,033 Life Sciences & Healthcare 151,449 20,272 13 171,734 (31 ) 171,703 Emerging Verticals 115,056 60,042 3,650 178,748 (7 ) 178,741 Revenues $ 1,077,094 $ 693,867 $ 73,148 $ 1,844,109 $ (1,197 ) $ 1,842,912 The following tables show the disaggregation of the Company’s revenues by contract type, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the year ended December 31, 2018: Year Ended December 31, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Contract Types Time-and-material $ 983,433 $ 628,710 $ 40,754 $ 1,652,897 $ — $ 1,652,897 Fixed-price 89,831 62,078 32,342 184,251 — 184,251 Licensing 2,748 1,332 17 4,097 — 4,097 Other revenues 1,082 1,747 35 2,864 (1,197 ) 1,667 Revenues $ 1,077,094 $ 693,867 $ 73,148 $ 1,844,109 $ (1,197 ) $ 1,842,912 Timing of Revenue Recognition The following tables show the timing of revenue recognition: Year Ended December 31, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,076,083 $ 692,024 $ 73,135 $ 1,841,242 $ — $ 1,841,242 Transferred at a point of time 1,011 1,843 13 2,867 (1,197 ) 1,670 Revenues $ 1,077,094 $ 693,867 $ 73,148 $ 1,844,109 $ (1,197 ) $ 1,842,912 |
Timing of Revenue Recognition | The following table includes the estimated revenues expected to be recognized in the future related to performance obligations that are partially or fully unsatisfied as of December 31, 2018 . The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts that (i) have an original expected duration of one year or less and (ii) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services provided: Less than 1 year 1 Year 2 Years 3 Years Total Contract Type Fixed-price $ 7,202 $ 402 $ 56 $ — $ 7,660 |
Contract Balances | The following table provides information on the classification of contract assets and liabilities in the consolidated balance sheets: As of As of January 1, 2018 Contract assets included in Unbilled revenues $ 13,522 $ 7,901 Contract liabilities included in Accrued expenses and other current liabilities $ 4,558 $ 4,498 Contract liabilities included in Other noncurrent liabilities $ 224 $ — |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The fair value of derivative instruments on the Company’s consolidated balance sheets as of December 31, 2018 and December 31, 2017 were as follows: As of December 31, 2018 As of December 31, 2017 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Designated as hedging instruments Prepaid and other current assets $ 181 $ — Accrued expenses and other current liabilities $ 3,475 $ — Foreign exchange forward contracts - Not designated as hedging instruments Prepaid and other current assets $ — $ 114 |
Changes in the Fair Value of Derivative Instruments | The changes in the fair value of foreign currency derivative instruments in our consolidated statements of income and comprehensive income for the years ended December 31, 2018 , 2017 and 2016 were as follows: Year Ended December 31, 2018 2017 2016 Foreign exchange forward contracts - Designated as hedging instruments: Change in fair value recognized in Accumulated other comprehensive loss $ (3,294 ) $ — $ — Net loss reclassified from Accumulated other comprehensive loss into Cost of revenues (exclusive of depreciation and amortization) $ (4,161 ) $ — $ — Foreign exchange forward contracts - Not designated as hedging instruments: Net gain recognized in Foreign exchange gain/(loss) $ 44 $ 425 $ 92 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 : As of December 31, 2018 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 181 $ — $ 181 $ — Total assets measured at fair value on a recurring basis $ 181 $ — $ 181 $ — Foreign exchange derivative liabilities $ 3,475 $ — $ 3,475 $ — Contingent consideration 7,468 — — 7,468 Total liabilities measured at fair value on a recurring basis $ 10,943 $ — $ 3,475 $ 7,468 The Company had no material financial assets or liabilities measured at fair value on a recurring basis as of December 31, 2017 . |
Reconciliation of Acquisition-Related Contractual Contingent Liabilities Using Significant Unobservable Inputs | A reconciliation of the beginning and ending balances of acquisition-related contractual contingent liabilities using significant unobservable inputs (Level 3) for the year ended December 31, 2016 is as follows: Amount Contractual contingent liabilities as of January 1, 2016 $ 5,364 Acquisition date fair value of contractual contingent liabilities — other acquisitions 800 Liability-classified stock-based awards 5,148 Changes in fair value of contractual contingent liabilities included in Selling, general and administrative expenses 1,232 Changes in fair value of contractual contingent liabilities recorded against goodwill 200 Settlements of contractual contingent liabilities (8,955 ) Reclassification of contractual contingent liabilities out of Level 3 (3,789 ) Contractual contingent liabilities as of December 31, 2016 $ — The Company had no activity related to contractual contingent liabilities during the year ended December 31, 2017 . A reconciliation of the beginning and ending balances of acquisition-related contractual contingent liabilities using significant unobservable inputs (Level 3) for the year ended December 31, 2018 is as follows: Amount Contractual contingent liabilities as of December 31, 2017 $ — Acquisition date fair value of contingent consideration — Continuum acquisition (Note 2) 2,400 Acquisition date fair value of contingent consideration — Think acquisition (Note 2) 5,990 Changes in fair value of contingent consideration included in Interest and other income, net (Note 2) (900 ) Effect of net foreign currency exchange rate changes (22 ) Contractual contingent liabilities as of December 31, 2018 $ 7,468 |
Reported Amounts and Estimated Fair Values of the Financial Assets and Liabilities Requiring Fair Value Disclosure | The following tables present the reported amounts and estimated fair values of the financial assets and liabilities for which disclosure of fair value is required, as they would be categorized within the fair value hierarchy, as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2018 Financial Assets: Cash and cash equivalents $ 770,560 $ 770,560 $ 770,560 $ — $ — Restricted cash $ 1,151 $ 1,151 $ 1,151 $ — $ — Employee loans $ 3,525 $ 3,525 $ — $ — $ 3,525 Financial Liabilities: Borrowings under 2017 Credit Facility $ 25,020 $ 25,020 $ — $ 25,020 $ — Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2017 Financial Assets: Cash and cash equivalents $ 582,585 $ 582,585 $ 582,585 $ — $ — Time deposits and restricted cash $ 673 $ 673 $ — $ 673 $ — Employee loans $ 4,210 $ 4,210 $ — $ — $ 4,210 Financial Liabilities: Borrowings under 2017 Credit Facility $ 25,009 $ 25,009 $ — $ 25,009 $ — |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Costs Related to Stock Compensation Plans | The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income and comprehensive income: For the Years Ended December 31, 2018 2017 2016 Cost of revenues (exclusive of depreciation and amortization) $ 27,245 $ 20,868 $ 16,619 Selling, general and administrative expenses 31,943 31,539 32,625 Total $ 59,188 $ 52,407 $ 49,244 |
Stock Option Activity | Stock option activity under the Company’s plans is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Options outstanding as of January 1, 2016 7,450,914 $ 34.07 $ 331,938 Options granted 313,088 $ 70.27 Options exercised (895,804 ) $ 20.13 Options forfeited/cancelled (227,759 ) $ 47.89 Options expired (3,200 ) $ 1.52 Options outstanding as of December 31, 2016 6,637,239 $ 37.20 $ 179,936 Options granted 261,373 $ 73.40 Options exercised (1,789,434 ) $ 30.23 Options forfeited/cancelled (200,210 ) $ 57.09 Options expired (7,220 ) $ 4.63 Options outstanding as of December 31, 2017 4,901,748 $ 40.91 $ 326,064 Options granted 160,181 $ 112.81 Options exercised (945,166 ) $ 36.69 Options forfeited/cancelled (32,569 ) $ 63.28 Options expired (1,250 ) $ 25.72 Options outstanding as of December 31, 2018 4,082,944 $ 44.54 $ 291,846 5.5 Options vested and exercisable as of December 31, 2018 3,183,103 $ 36.10 $ 254,360 4.9 Options expected to vest as of December 31, 2018 867,711 $ 73.93 $ 36,539 7.3 |
Black-Scholes Model Valuation Assumptions | he grant-date fair value for stock options granted was determined using a Black-Scholes model incorporating the following average assumptions: For the Years Ended December 31, 2018 2017 2016 Expected volatility 33.8 % 30.5 % 31.9 % Expected term (in years) 6.25 6.25 6.24 Risk-free interest rate 2.7 % 2.1 % 1.5 % Expected dividends — % — % — % |
Service-Based Awards Activity | The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the years ended December 31, 2018 , 2017 and 2016 : Equity-Classified Equity-Settled Restricted Stock Equity-Classified Equity-Settled Restricted Stock Units Liability-Classified Cash-Settled Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested service-based awards outstanding as of January 1, 2016 306,839 $ 41.14 149,272 $ 57.55 — $ — Awards granted 6,510 $ 73.00 408,629 $ 70.39 207,586 $ 70.53 Awards vested (156,535 ) $ 42.64 (41,015 ) $ 55.60 — $ — Awards forfeited/cancelled (2,689 ) $ 45.32 (31,698 ) $ 70.44 (3,085 ) $ 70.52 Unvested service-based awards outstanding as of December 31, 2016 154,125 $ 40.89 485,188 $ 67.69 204,501 $ 70.53 Awards granted — $ — 424,623 $ 73.89 170,295 $ 74.21 Awards modified — $ — (2,570 ) $ 26.85 2,570 $ 73.27 Awards vested (152,285 ) $ 43.39 (140,043 ) $ 66.54 (52,004 ) $ 70.56 Awards forfeited/cancelled — $ — (79,186 ) $ 70.30 (10,533 ) $ 71.72 Unvested service-based awards outstanding as of December 31, 2017 1,840 $ 54.37 688,012 $ 71.60 314,829 $ 72.50 Awards granted — $ — 380,864 $ 115.84 85,380 $ 112.65 Awards modified — $ — (3,110 ) $ 80.27 3,110 $ 120.18 Awards vested (1,047 ) $ 47.76 (217,800 ) $ 70.10 (91,684 ) $ 72.69 Awards forfeited/cancelled — $ — (50,063 ) $ 86.97 (8,668 ) $ 81.40 Unvested service-based awards outstanding as of December 31, 2018 793 $ 63.10 797,903 $ 92.13 302,967 $ 83.99 |
Fair Value of Service-Based Awards Vested | The fair value of vested service-based awards (measured at the vesting date) for the years ended December 31, 2018 , 2017 and 2016 was as follows: For the Years Ended December 31, 2018 2017 2016 Equity-classified equity-settled Restricted stock $ 142 $ 12,607 $ 11,431 Restricted stock units 24,987 10,620 2,932 Liability-classified cash-settled Restricted stock units 10,349 3,811 — Total fair value of vested service-based awards $ 35,478 $ 27,038 $ 14,363 |
Performance-Based Awards Activity | ummarizes activity related to the Company’s performance-based awards for the years ended December 31, 2018 , 2017 and 2016 : Equity-Classified Liability-Classified Equity-Classified Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested performance-based awards outstanding as of January 1, 2016 22,090 $ 37.52 211,206 $ 39.65 14,000 $ 70.22 Awards granted — $ — — $ — — $ — Awards vested (9,978 ) $ 40.15 (105,604 ) $ 40.44 (4,666 ) $ 70.22 Awards forfeited/cancelled (6,539 ) $ 36.97 — $ — (4,667 ) $ 70.22 Unvested performance-based awards outstanding as of December 31, 2016 5,573 $ 33.47 105,602 $ 38.86 4,667 $ 70.22 Awards granted — $ — — $ — — $ — Awards vested (5,573 ) $ 33.47 (105,602 ) $ 38.86 — $ — Awards forfeited/cancelled — $ — — $ — (4,667 ) $ 70.22 Unvested performance-based awards outstanding as of December 31, 2017 — $ — — $ — — $ — Awards granted — $ — — $ — 45,375 $ 121.75 Awards vested — $ — — $ — (8,769 ) $ 121.75 Awards forfeited/cancelled — $ — — $ — (7,014 ) $ 121.75 Unvested performance-based awards outstanding as of December 31, 2018 — $ — — $ — 29,592 $ 121.75 As of December 31, 2018 , $2,779 of total remaining unrecognized stock-based compensation cost related to performance-based equity-classified restricted stock units is expected to be recognized over the weighted-average remaining requisite service period of 1.9 years. Performance-based equity-classified RSUs were granted during the year ended December 31, 2018 in connection with the acquisition of Continuum and have a variable vesting period, subject to satisfaction of the applicable performance conditions with each vesting portion having its own service inception date. Compensation is recognized over the vesting period and adjusted each period for the probability of achievement of the performance criteria for each vesting portion separately. |
Fair Value of Performance-Based Awards Vested | Performance-based equity-classified RSUs were granted during the year ended December 31, 2018 in connection with the acquisition of Continuum and have a va |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of common stock as follows: For the Years Ended December 31, 2018 2017 2016 Numerator for basic and diluted earnings per share: Net income $ 240,256 $ 72,760 $ 99,266 Numerator for basic and diluted earnings per share $ 240,256 $ 72,760 $ 99,266 Denominator: Weighted average common shares for basic earnings per share 53,622,989 52,077,011 50,309,362 Net effect of dilutive stock options, restricted stock units and restricted stock awards 3,049,687 2,907,162 2,906,030 Weighted average common shares for diluted earnings per share 56,672,676 54,984,173 53,215,392 Net Income per share: Basic $ 4.48 $ 1.40 $ 1.97 Diluted $ 4.24 $ 1.32 $ 1.87 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum rental payments under operating leases | Future minimum rental payments under operating leases that have initial or remaining lease terms in excess of one year as of December 31, 2018 were as follows: Year Ending December 31, Operating Leases 2019 $ 46,082 2020 38,715 2021 32,126 2022 24,341 2023 20,118 Thereafter 77,484 Total minimum lease payments $ 238,866 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues from External Customers and Operating Profit/(Loss) Before Unallocated Expenses | Revenues from external customers and operating profit, before unallocated expenses, by reportable segments were as follows: For the years ended December 31, 2018 2017 2016 Total segment revenues: North America $ 1,077,094 $ 796,126 $ 642,216 Europe 693,867 593,167 474,988 Russia 73,148 62,994 43,611 Total segment revenues $ 1,844,109 $ 1,452,287 $ 1,160,815 Segment operating profit: North America $ 221,846 $ 169,340 $ 143,021 Europe 115,876 92,080 67,545 Russia 11,377 13,906 7,555 Total segment operating profit $ 349,099 $ 275,326 $ 218,121 |
Reconciliation of Segment Revenues and Operating Profit to Consolidated Income Before Provision for Income Taxes | Reconciliation of segment revenues to consolidated revenues and segment operating profit to consolidated income before provision for income taxes is presented below: For the Years Ended December 31, 2018 2017 2016 Total segment revenues $ 1,844,109 $ 1,452,287 $ 1,160,815 Other income included in segment revenues (1,197 ) (1,839 ) (683 ) Revenues $ 1,842,912 $ 1,450,448 $ 1,160,132 Total segment operating profit: $ 349,099 $ 275,326 $ 218,121 Unallocated amounts: Other income included in segment revenues (1,197 ) (1,839 ) (683 ) Stock-based compensation expense (59,188 ) (52,407 ) (49,244 ) Non-corporate taxes (9,856 ) (9,659 ) (5,909 ) Professional fees (6,188 ) (8,032 ) (8,265 ) Depreciation and amortization (8,057 ) (7,632 ) (8,290 ) Bank charges (2,358 ) (1,969 ) (1,515 ) One-time charges and other acquisition-related expenses (2,055 ) (1,741 ) (706 ) Other operating expenses (14,436 ) (19,101 ) (9,813 ) Income from operations 245,764 172,946 133,696 Interest and other income, net 3,522 4,601 4,848 Foreign exchange gain/(loss) 487 (3,242 ) (12,078 ) Income before provision for income taxes $ 249,773 $ 174,305 $ 126,466 |
Geographical Information of Long-Lived Assets Based on Physical Location | Physical locations and values of the Company’s long-lived assets are presented below: As of As of As of December 31, 2016 Belarus $ 50,085 $ 49,866 $ 46,011 United States 13,101 3,371 2,618 Russia 9,902 9,617 7,203 Ukraine 8,433 6,995 5,610 India 7,019 2,698 1,650 Hungary 3,168 3,901 3,485 China 2,651 2,608 1,887 Poland 2,637 2,893 2,213 Other 5,650 4,470 2,939 Total $ 102,646 $ 86,419 $ 73,616 |
Revenues by Client Location | The table below presents the Company’s revenues by customer location for the years ended December 31, 2018 , 2017 and 2016 : For the Years Ended December 31, 2018 2017 2016 United States $ 1,029,327 $ 783,563 $ 611,392 United Kingdom 200,918 188,995 177,194 Switzerland 144,398 123,281 122,919 Germany 80,787 60,158 43,621 Russia 71,181 61,222 40,944 Netherlands 70,274 51,556 17,521 Canada 69,836 57,129 59,189 Other 176,191 124,544 87,352 Revenues $ 1,842,912 $ 1,450,448 $ 1,160,132 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly results for the years ended December 31, 2018 and 2017 were as follows: Three Months Ended 2018 March 31 June 30 September 30 December 31 Full Year Revenues $ 424,148 $ 445,647 $ 468,186 $ 504,931 $ 1,842,912 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 277,634 289,175 301,081 319,031 1,186,921 Selling, general and administrative expenses 89,641 93,273 93,226 97,447 373,587 Depreciation and amortization expense 8,176 8,962 9,319 10,183 36,640 Income from operations 48,697 54,237 64,560 78,270 245,764 Interest and other income/(expense), net (551 ) 1,052 1,941 1,080 3,522 Foreign exchange gain/(loss) (247 ) 1,830 (514 ) (582 ) 487 Income before provision for/(benefit from) income taxes 47,899 57,119 65,987 78,768 249,773 Provision for/(benefit from) income taxes (16,519 ) 6,864 369 18,803 9,517 Net income $ 64,418 $ 50,255 $ 65,618 $ 59,965 $ 240,256 Comprehensive income $ 67,796 $ 32,345 $ 63,426 $ 52,798 $ 216,365 Basic net income per share (1) $ 1.21 $ 0.94 $ 1.22 $ 1.11 $ 4.48 Diluted net income per share (1) $ 1.15 $ 0.89 $ 1.15 $ 1.05 $ 4.24 (1) Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. Three Months Ended 2017 March 31 June 30 September 30 December 31 Full Year Revenues $ 324,651 $ 348,977 $ 377,523 $ 399,297 $ 1,450,448 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 207,730 220,132 239,369 254,121 921,352 Selling, general and administrative expenses 79,283 81,143 81,732 85,430 327,588 Depreciation and amortization expense 6,672 7,020 7,174 7,696 28,562 Income from operations 30,966 40,682 49,248 52,050 172,946 Interest and other income, net 584 802 1,416 1,799 4,601 Foreign exchange (loss)/gain (2,955 ) 1,562 (77 ) (1,772 ) (3,242 ) Income before provision for income taxes 28,595 43,046 50,587 52,077 174,305 Provision for income taxes 4,954 5,687 7,953 82,951 101,545 Net income/(loss) $ 23,641 $ 37,359 $ 42,634 $ (30,874 ) $ 72,760 Comprehensive income/(loss) $ 30,027 $ 41,910 $ 48,337 $ (27,449 ) $ 92,825 Basic net income/(loss) per share (1) $ 0.46 $ 0.72 $ 0.81 $ (0.58 ) $ 1.40 Diluted net income/(loss) per share (1) (2) $ 0.44 $ 0.68 $ 0.77 $ (0.58 ) $ 1.32 (1) Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. (2) Due to the net loss during the three months ended December 31, 2017, zero incremental shares are included in the calculation of diluted loss per share because of their antidilutive effect. |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Balance at Beginning of Year Additions Deductions/ Write offs Balance at End of Year Year Ended December 31, 2018 Allowance for doubtful accounts for accounts receivable $ 1,186 2,722 (2,351 ) $ 1,557 Valuation allowance on deferred tax assets $ 924 2,265 — $ 3,189 Year Ended December 31, 2017 Allowance for doubtful accounts for accounts receivable $ 2,014 998 (1,826 ) $ 1,186 Valuation allowance on deferred tax assets $ — 924 — $ 924 Year Ended December 31, 2016 Allowance for doubtful accounts for accounts receivable $ 1,729 3,500 (3,215 ) $ 2,014 |
BUSINESS AND SUMMARY OF SIGNI_2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 50 years |
BUSINESS AND SUMMARY OF SIGNI_3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Goodwill and Other Indefinite-Lived Intangible Assets) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Accounting Policies [Abstract] | |
Indefinite-lived intangible assets other than goodwill | $ 0 |
BUSINESS AND SUMMARY OF SIGNI_4
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Effect of Adoption of Topic 606) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Assets | ||||||||||||
Unbilled revenues | $ 104,652 | $ 86,500 | $ 104,652 | $ 86,500 | $ 86,422 | |||||||
Deferred tax assets | 24,801 | |||||||||||
Liabilities | ||||||||||||
Accrued expenses and other current liabilities | 127,937 | 127,937 | 89,104 | |||||||||
Other noncurrent liabilities | 17,661 | 9,435 | 17,661 | 9,435 | ||||||||
Stockholders’ equity | ||||||||||||
Retained earnings | 759,533 | 518,820 | 759,533 | 518,820 | 519,277 | |||||||
Income Statement | ||||||||||||
Revenues | 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | 399,297 | $ 377,523 | $ 348,977 | $ 324,651 | 1,842,912 | 1,450,448 | $ 1,160,132 | |
Income from operations | 78,270 | 64,560 | 54,237 | 48,697 | 52,050 | 49,248 | 40,682 | 30,966 | 245,764 | 172,946 | 133,696 | |
Provision for income taxes | 18,803 | 369 | 6,864 | (16,519) | 82,951 | 7,953 | 5,687 | 4,954 | 9,517 | 101,545 | 27,200 | |
Net income | 59,965 | $ 65,618 | $ 50,255 | $ 64,418 | (30,874) | $ 42,634 | $ 37,359 | $ 23,641 | 240,256 | 72,760 | $ 99,266 | |
Balance Under Revenue Guidance in Effect Before Topic 606 | ||||||||||||
Assets | ||||||||||||
Unbilled revenues | 86,500 | 86,500 | ||||||||||
Deferred tax assets | 24,974 | 24,974 | ||||||||||
Liabilities | ||||||||||||
Accrued expenses and other current liabilities | 127,690 | 89,812 | 127,690 | 89,812 | ||||||||
Other noncurrent liabilities | 17,716 | 17,716 | ||||||||||
Stockholders’ equity | ||||||||||||
Retained earnings | 759,725 | $ 518,820 | 759,725 | $ 518,820 | ||||||||
Income Statement | ||||||||||||
Revenues | 1,843,159 | |||||||||||
Income from operations | 246,011 | |||||||||||
Provision for income taxes | 9,572 | |||||||||||
Net income | 240,448 | |||||||||||
Topic 606 | Adjustments | ||||||||||||
Assets | ||||||||||||
Unbilled revenues | (78) | |||||||||||
Deferred tax assets | (173) | |||||||||||
Liabilities | ||||||||||||
Accrued expenses and other current liabilities | 247 | 247 | (708) | |||||||||
Other noncurrent liabilities | (55) | (55) | ||||||||||
Stockholders’ equity | ||||||||||||
Retained earnings | $ (192) | (192) | $ 457 | |||||||||
Income Statement | ||||||||||||
Revenues | (247) | |||||||||||
Income from operations | (247) | |||||||||||
Provision for income taxes | (55) | |||||||||||
Net income | $ (192) |
BUSINESS AND SUMMARY OF SIGNI_5
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concentration by Contract Types) (Details) - Product Concentration Risk - Sales Revenue, Net | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Time-and-material | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 90.30% | 88.20% |
Fixed-price | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 8.30% | 10.40% |
BUSINESS AND SUMMARY OF SIGNI_6
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Risks and Uncertainties) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Concentration Risk [Line Items] | ||||
Total cash | $ 771,711 | $ 582,855 | $ 364,664 | $ 199,687 |
Belarus, Russia, Ukraine, Kazakhstan and Armenia | Geographic Concentration Risk | Assets, Total | ||||
Concentration Risk [Line Items] | ||||
Total cash | 179,478 | |||
Belarus | Geographic Concentration Risk | Assets, Total | ||||
Concentration Risk [Line Items] | ||||
Total cash | $ 119,726 | |||
Unbilled Revenues | Customer Concentration Risk | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage | 13.00% | |||
Number of Customers | 0 | 1 | ||
Billed Revenues | Customer Concentration Risk | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Number of Customers | 0 | 0 |
BUSINESS AND SUMMARY OF SIGNI_7
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Restricted Cash and Restricted Cash Equivalents) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Prepaid expenses and other assets | $ (8,432) | $ 1,061 | $ (2,391) |
Net cash provided by operating activities | 292,218 | 192,820 | 167,217 |
Cash flows from investing activities: | |||
Decrease in restricted cash and time deposits, net | 418 | 0 | 29,597 |
Acquisition of businesses, net of cash acquired | (74,268) | (6,810) | (5,500) |
Net cash used in investing activities | (112,123) | (36,151) | (9,320) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (14,240) | 11,776 | (3,387) |
Net increase in cash, cash equivalents and restricted cash | 188,856 | 218,191 | 164,977 |
Cash, cash equivalents and restricted cash, beginning of period | 582,585 | 362,025 | |
Cash, cash equivalents and restricted cash, beginning of period | 582,855 | 364,664 | 199,687 |
Cash, cash equivalents and restricted cash, end of period | 770,560 | 582,585 | 362,025 |
Cash, cash equivalents and restricted cash, end of period | 771,711 | 582,855 | 364,664 |
As Originally Reported | |||
Cash flows from operating activities: | |||
Prepaid expenses and other assets | 3,605 | (4,791) | |
Net cash provided by operating activities | 195,364 | 164,817 | |
Cash flows from investing activities: | |||
Decrease in restricted cash and time deposits, net | 8 | 29,595 | |
Acquisition of businesses, net of cash acquired | (6,840) | ||
Net cash used in investing activities | (36,173) | (9,322) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 11,623 | (3,386) | |
Net increase in cash, cash equivalents and restricted cash | 220,560 | 162,576 | |
Cash, cash equivalents and restricted cash, beginning of period | 582,585 | 362,025 | 199,449 |
Cash, cash equivalents and restricted cash, end of period | 582,585 | 362,025 | |
ASU 2016-18 | Effect | |||
Cash flows from operating activities: | |||
Prepaid expenses and other assets | (2,544) | 2,400 | |
Net cash provided by operating activities | (2,544) | 2,400 | |
Cash flows from investing activities: | |||
Decrease in restricted cash and time deposits, net | (8) | 2 | |
Acquisition of businesses, net of cash acquired | 30 | ||
Net cash used in investing activities | 22 | 2 | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 153 | (1) | |
Net increase in cash, cash equivalents and restricted cash | (2,369) | 2,401 | |
Cash, cash equivalents and restricted cash, beginning of period | $ 270 | 2,639 | 238 |
Cash, cash equivalents and restricted cash, end of period | $ 270 | $ 2,639 |
BUSINESS AND SUMMARY OF SIGNI_8
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Lease) (Details) - Topic 842 $ in Thousands | Jan. 01, 2019USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-Use assets | $ 175,000 |
Lease liabilities | 170,000 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-Use assets | 195,000 |
Lease liabilities | $ 190,000 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) $ in Thousands | Nov. 01, 2018USD ($) | Mar. 15, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||||
Cash consideration deferred | $ 0 | $ 0 | $ 2,260 | ||||
Contingent consideration | $ 8,390 | $ 8,390 | 0 | 0 | |||
Aggregate purchase price | $ 6,980 | $ 5,580 | |||||
Continuum | |||||||
Business Acquisition [Line Items] | |||||||
Effective date of acquisition | Mar. 15, 2018 | ||||||
Cash consideration | $ 52,515 | ||||||
Cash consideration placed in escrow | $ 5,410 | ||||||
Estimated future operating results, period | 12 months | ||||||
Maximum amount of earnout payable | $ 3,135 | ||||||
Contingent consideration | $ 2,400 | ||||||
Reduction to the fair value of the contingent consideration | $ (900) | ||||||
Escrow deposit released | $ 76 | ||||||
Continuum | Design Consultant | |||||||
Business Acquisition [Line Items] | |||||||
Numbers of professionals acquired | 125 | ||||||
Think | |||||||
Business Acquisition [Line Items] | |||||||
Effective date of acquisition | Nov. 1, 2018 | ||||||
Cash consideration | $ 26,254 | ||||||
Cash consideration placed in escrow | $ 3,237 | ||||||
Escrow period | 12 months | ||||||
Estimated future operating results, period | 12 months | ||||||
Maximum amount of earnout payable | $ 8,156 | ||||||
Contingent consideration | $ 5,990 | ||||||
Minimum | Continuum | |||||||
Business Acquisition [Line Items] | |||||||
Escrow period | 9 months | ||||||
Maximum | Continuum | |||||||
Business Acquisition [Line Items] | |||||||
Escrow period | 15 months |
ACQUISITIONS (Fair Values of Ne
ACQUISITIONS (Fair Values of Net Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Nov. 01, 2018 | Mar. 15, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Unbilled revenues | $ 104,652 | $ 86,422 | $ 86,500 | |||
Goodwill | $ 166,832 | $ 119,531 | $ 109,289 | |||
Continuum | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 2,251 | |||||
Accounts receivable | 6,676 | |||||
Unbilled revenues | 2,463 | |||||
Prepaid and other current assets | 936 | |||||
Goodwill | 26,617 | |||||
Intangible assets | 14,450 | |||||
Property and equipment and other noncurrent assets | 8,902 | |||||
Total assets acquired | 62,295 | |||||
Accounts payable, accrued expenses and other current liabilities | 2,745 | |||||
Due to employees | 1,001 | |||||
Long-term debt (Note 8) | 3,220 | |||||
Other noncurrent liabilities | 490 | |||||
Total liabilities assumed | 7,456 | |||||
Net assets acquired | $ 54,839 | |||||
Think | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 2,344 | |||||
Accounts receivable | 2,259 | |||||
Unbilled revenues | 284 | |||||
Prepaid and other current assets | 609 | |||||
Goodwill | 22,482 | |||||
Intangible assets | 6,882 | |||||
Property and equipment and other noncurrent assets | 642 | |||||
Total assets acquired | 35,502 | |||||
Accounts payable, accrued expenses and other current liabilities | 2,205 | |||||
Due to employees | 13 | |||||
Long-term debt (Note 8) | 0 | |||||
Other noncurrent liabilities | 1,040 | |||||
Total liabilities assumed | 3,258 | |||||
Net assets acquired | $ 32,244 |
ACQUISITIONS (Fair Values and U
ACQUISITIONS (Fair Values and Useful Lives of Intangible Assets Acquired) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Continuum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired, amount | $ 14,450 |
Think | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired, amount | $ 6,882 |
Customer relationships | Continuum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 6 years 6 months 12 days |
Finite-lived intangible assets acquired, amount | $ 5,800 |
Customer relationships | Think | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 7 years |
Finite-lived intangible assets acquired, amount | $ 6,117 |
Favorable lease | Continuum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 11 years 2 months |
Finite-lived intangible assets acquired, amount | $ 5,500 |
Favorable lease | Think | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired, amount | $ 0 |
Contract royalties | Continuum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 8 years |
Finite-lived intangible assets acquired, amount | $ 1,900 |
Contract royalties | Think | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired, amount | $ 0 |
Trade names | Continuum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 5 years |
Finite-lived intangible assets acquired, amount | $ 1,250 |
Trade names | Think | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 5 years |
Finite-lived intangible assets acquired, amount | $ 765 |
ACQUISITIONS (Income Statement
ACQUISITIONS (Income Statement Effect) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||||||||||
Revenues | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 399,297 | $ 377,523 | $ 348,977 | $ 324,651 | $ 1,842,912 | $ 1,450,448 | $ 1,160,132 |
Continuum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenues | 26,300 | ||||||||||
Think | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenues | $ 1,908 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET (Goodwill Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Balance beginning of period | $ 119,531 | $ 109,289 |
Effect of currency translation | (1,798) | 3,695 |
Balance end of period | 166,832 | 119,531 |
North America | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 77,290 | 76,812 |
Effect of currency translation | (365) | 564 |
Balance end of period | 103,542 | 77,290 |
Europe | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 42,241 | 32,477 |
Effect of currency translation | (1,433) | 3,131 |
Balance end of period | 63,290 | 42,241 |
Russia | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 0 | 0 |
Balance end of period | 0 | 0 |
Other | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 0 | 0 |
Balance end of period | 0 | 0 |
Other Acquisitions | ||
Goodwill [Roll Forward] | ||
Acquisition | 4,732 | |
Purchase accounting adjustments | 1,815 | |
Other Acquisitions | North America | ||
Goodwill [Roll Forward] | ||
Acquisition | 199 | |
Purchase accounting adjustments | (285) | |
Other Acquisitions | Europe | ||
Goodwill [Roll Forward] | ||
Acquisition | 4,533 | |
Purchase accounting adjustments | $ 2,100 | |
Continuum | ||
Goodwill [Roll Forward] | ||
Acquisition | 26,617 | |
Continuum | North America | ||
Goodwill [Roll Forward] | ||
Acquisition | 26,617 | |
Continuum | Europe | ||
Goodwill [Roll Forward] | ||
Acquisition | 0 | |
Think | ||
Goodwill [Roll Forward] | ||
Acquisition | 22,482 | |
Think | North America | ||
Goodwill [Roll Forward] | ||
Acquisition | 0 | |
Think | Europe | ||
Goodwill [Roll Forward] | ||
Acquisition | $ 22,482 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET (Goodwill Accumulated Impaitment Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
North America | |||
Goodwill [Line Items] | |||
Accumulated impairment loss | $ 0 | $ 0 | $ 0 |
Europe | |||
Goodwill [Line Items] | |||
Accumulated impairment loss | 0 | 0 | 0 |
Russia | |||
Goodwill [Line Items] | |||
Accumulated impairment loss | 2,241 | 2,241 | 2,241 |
Other | |||
Goodwill [Line Items] | |||
Accumulated impairment loss | $ 1,697 | $ 1,697 | $ 1,697 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET (Intangible Assets Components and Amortization Expenses Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 91,553 | $ 70,745 | |
Accumulated amortization | (34,488) | (26,234) | |
Net carrying amount | 57,065 | 44,511 | |
Amortization of Intangible Assets | $ 8,511 | $ 7,562 | $ 8,170 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 9 years 5 months 27 days | 10 years | |
Gross carrying amount | $ 78,042 | $ 66,646 | |
Accumulated amortization | (29,580) | (22,200) | |
Net carrying amount | 48,462 | 44,446 | |
Customer relationships | Depreciation and Amortization Expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 7,637 | 6,643 | 6,858 |
Favorable lease | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 11 years 2 months | ||
Gross carrying amount | $ 5,500 | ||
Accumulated amortization | (410) | ||
Net carrying amount | 5,090 | ||
Favorable lease | Selling, General and Administrative Expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 410 | $ 0 | 0 |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 5 years 3 months 27 days | 5 years | |
Gross carrying amount | $ 6,111 | $ 4,099 | |
Accumulated amortization | (4,300) | (4,034) | |
Net carrying amount | 1,811 | 65 | |
Trade names | Depreciation and Amortization Expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 266 | 896 | 1,139 |
Contract royalties | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 8 years | ||
Gross carrying amount | $ 1,900 | ||
Accumulated amortization | (198) | ||
Net carrying amount | 1,702 | ||
Contract royalties | Depreciation and Amortization Expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | 198 | 0 | 0 |
Non-competition agreements | Depreciation and Amortization Expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 0 | $ 23 | $ 173 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS, NET (Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,019 | $ 9,520 | |
2,020 | 9,520 | |
2,021 | 9,520 | |
2,022 | 9,379 | |
2,023 | 8,153 | |
Thereafter | 10,973 | |
Total | $ 57,065 | $ 44,511 |
PROPERTY AND EQUIPMENT, NET (Pr
PROPERTY AND EQUIPMENT, NET (Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 181,005 | $ 148,125 | |
Less accumulated depreciation and amortization | (78,359) | (61,706) | |
Total | 102,646 | 86,419 | $ 73,616 |
Depreciation and amortization expenses | $ 28,539 | 21,000 | $ 15,217 |
Computer hardware | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life (in years) | 3 years | ||
Property and equipment, gross | $ 74,884 | 62,132 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life (in years) | 49 years | ||
Property and equipment, gross | $ 34,458 | 34,058 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life (in years) | 9 years | ||
Property and equipment, gross | $ 25,036 | 13,186 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life (in years) | 7 years | ||
Property and equipment, gross | $ 21,544 | 18,071 | |
Office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life (in years) | 7 years | ||
Property and equipment, gross | $ 13,203 | 10,825 | |
Purchased computer software | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life (in years) | 4 years | ||
Property and equipment, gross | $ 10,406 | 8,379 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life (in years) | 20 years | ||
Property and equipment, gross | $ 1,474 | $ 1,474 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Accrued expenses and other current liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued compensation expense and related costs | $ 97,877 | $ 67,034 |
Deferred revenue | 4,558 | 4,498 |
Other current liabilities and accrued expenses | 25,502 | 18,280 |
Total | $ 127,937 | $ 89,812 |
TAXES PAYABLE (Components of Cu
TAXES PAYABLE (Components of Current Taxes Payable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Schedule of Taxes Payable [Line Items] | ||
Income taxes payable | $ 9,488 | $ 27,538 |
Value added taxes payable | 14,676 | 19,985 |
Payroll, social security, and other taxes payable | 16,696 | 20,322 |
Total | 40,860 | 67,845 |
Income taxes payable related to one-time transition tax, noncurrent | 59,874 | 43,685 |
U.S. Tax Cuts and Jobs Act | ||
Schedule of Taxes Payable [Line Items] | ||
Income tax payable related to one-time transition tax | $ 64,321 | 59,386 |
Income tax payment period | 8 years | |
U.S. Tax Cuts and Jobs Act | Taxes Payable, Noncurrent | ||
Schedule of Taxes Payable [Line Items] | ||
Income taxes payable related to one-time transition tax, noncurrent | $ 59,175 | $ 42,253 |
INCOME TAXES (Income_(Loss) bef
INCOME TAXES (Income/(Loss) before Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income/(loss) before provision for income taxes: | |||||||||||
United States | $ 44,527 | $ (6,595) | $ (9,300) | ||||||||
Foreign | 205,246 | 180,900 | 135,766 | ||||||||
Income before provision for income taxes | $ 78,768 | $ 65,987 | $ 57,119 | $ 47,899 | $ 52,077 | $ 50,587 | $ 43,046 | $ 28,595 | $ 249,773 | $ 174,305 | $ 126,466 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||||||||||
Federal | $ 10,814 | $ 65,571 | $ 13,324 | ||||||||
State | 4,123 | (204) | (63) | ||||||||
Foreign | 42,580 | 23,617 | 17,243 | ||||||||
Deferred | |||||||||||
Federal | (37,785) | 7,235 | (3,581) | ||||||||
State | (3,548) | (90) | 312 | ||||||||
Foreign | (6,667) | 5,416 | (35) | ||||||||
Total | $ 18,803 | $ 369 | $ 6,864 | $ (16,519) | $ 82,951 | $ 7,953 | $ 5,687 | $ 4,954 | $ 9,517 | $ 101,545 | $ 27,200 |
INCOME TAXES (U.S. Tax Act Effe
INCOME TAXES (U.S. Tax Act Effect) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Change in Tax Legislation [Line Items] | |||
Statutory income tax rate | 35.00% | ||
Provisional income tax expense | $ 10,814 | $ 65,571 | $ 13,324 |
Income tax expense (benefit) related to withholding tax payable | 4,850 | $ 0 | |
Net income tax benefit resulting from U.S. foreign tax credit for withholding tax | 4,850 | ||
Accumulated undistributed foreign earnings indefinitely reinvested | $ 700,327 | ||
U.S. Tax Cuts and Jobs Act | |||
Schedule of Change in Tax Legislation [Line Items] | |||
Statutory income tax rate | 21.00% | ||
Income tax rate on foreign cash and certain other net current assets | 15.50% | ||
Income tax rate on remaining earnings | 8.00% | ||
Income tax payable related to one-time transition tax | $ 59,386 | $ 64,321 | |
Income tax payment period | 8 years | ||
Provisional income tax expense | (4,935) | $ 64,321 | |
Total charge for the one-time transition tax | 59,386 | ||
Adjustment to deferred tax asset for the year | 926 | 10,311 | |
Total adjustment to deferred tax asset recorded | 11,237 | ||
U.S. Tax Cuts and Jobs Act | Belarus | |||
Schedule of Change in Tax Legislation [Line Items] | |||
Accumulated earnings that are no longer indefinitely reinvested | 97,000 | ||
Income tax expense (benefit) related to withholding tax payable | $ 4,850 | ||
Net income tax benefit resulting from U.S. foreign tax credit for withholding tax | $ 4,850 |
INCOME TAXES (Effective Tax Rat
INCOME TAXES (Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Provision for income taxes at federal statutory rate | $ 52,452 | $ 61,007 | $ 44,263 | ||||||||
Increase/ (decrease) in taxes resulting from: | |||||||||||
Impact from U.S. Tax Act | (4,009) | 74,632 | 0 | ||||||||
Entity classification election deferred tax asset impact | (25,962) | 0 | 0 | ||||||||
GILTI and BEAT U.S. taxes | 1,526 | 0 | 0 | ||||||||
Excess tax benefits relating to stock-based compensation | (17,370) | (9,307) | 0 | ||||||||
Subsidiary withholding tax liability and related foreign tax credit | (4,850) | ||||||||||
Subsidiary withholding tax liability and related foreign tax credit | 4,850 | 0 | |||||||||
Foreign tax expense and tax rate differential | (88) | (39,997) | (33,477) | ||||||||
Effect of permanent differences | 2,724 | 3,205 | 5,042 | ||||||||
State taxes, net of federal benefit | 3,452 | (116) | 1,192 | ||||||||
Change in valuation allowance | 151 | 783 | 0 | ||||||||
Stock-based compensation expense | 652 | 6,908 | 9,535 | ||||||||
Other | 839 | (420) | 645 | ||||||||
Total | $ 18,803 | $ 369 | $ 6,864 | $ (16,519) | $ 82,951 | $ 7,953 | $ 5,687 | $ 4,954 | $ 9,517 | $ 101,545 | $ 27,200 |
Effective tax rate | 3.80% | 58.30% | 21.50% | ||||||||
Net deferred tax assets resulting from the change in tax status of foreign subsidiaries | $ 25,962 | $ 25,962 | |||||||||
ASU 2016-09 | |||||||||||
Increase/ (decrease) in taxes resulting from: | |||||||||||
Excess tax benefit | $ 17,370 | $ 9,307 |
INCOME TAXES (Income Tax Holida
INCOME TAXES (Income Tax Holiday) (Details) - Foreign - Belarus - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Holiday [Line Items] | |||
Income tax holiday description | <div style="line-height:120%;padding-top:12px;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In Belarus, member technology companies of High-Technologies Park, including our subsidiary, have a full exemption from Belarus income tax through </font><font style="font-family:inherit;font-size:10pt;">January 2049</font><font style="font-family:inherit;font-size:10pt;">. However, beginning February 1, 2018, the earnings of the Company’s Belarus local subsidiary are subject to U. S. income taxation due to the Company’s decision to change the tax status of the subsidiary. Consequently, there was less income tax benefit from the Belarus tax exemption for the year ended December 31, 2018 compared to previous years. The aggregate dollar benefits derived from this tax holiday approximated </font><font style="font-family:inherit;font-size:10pt;">$1,352</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">$15,503</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$13,605</font><font style="font-family:inherit;font-size:10pt;"> for the years ended December 31, 2018, </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">, respectively. The benefit the tax holiday had on diluted net income per share approximated </font><font style="font-family:inherit;font-size:10pt;">$0.02</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">$0.28</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$0.26</font><font style="font-family:inherit;font-size:10pt;"> for the years ended December 31, 2018, </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">, respectively.</font></div></div>" id="sjs-B4"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In Belarus, member technology companies of High-Technologies Park, including our subsidiary, have a full exemption from Belarus income tax through </font><font style="font-family:inherit;font-size:10pt;">January 2049</font><font style="font-family:inherit;font-size:10pt;">. However, beginning February 1, 2018, the earnings of the Company’s Belarus local subsidiary are subject to U. S. income taxation due to the Company’s decision to change the tax status of the subsidiary. Consequently, there was less income tax benefit from the Belarus tax exemption for the year ended December 31, 2018 compared to previous years. The aggregate dollar benefits derived from this tax holiday approximated </font><font style="font-family:inherit;font-size:10pt;">$1,352</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">$15,503</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$13,605</font><font style="font-family:inherit;font-size:10pt;"> for the years ended December 31, 2018, </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">, respectively. The benefit the tax holiday had on diluted net income per share approximated </font><font style="font-family:inherit;font-size:10pt;">$0.02</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">$0.28</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$0.26</font><font style="font-family:inherit;font-size:10pt;"> for the years ended December 31, 2018, </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">, respectively.</font></div></div> | ||
Income tax holiday termination date | 1/1/2049 | ||
Aggregate dollar benefits from tax holiday | $ 1,352 | $ 15,503 | $ 13,605 |
Tax holiday benefit on diluted net income per share | $ 0.02 | $ 0.28 | $ 0.26 |
INCOME TAXES (Deferred Income T
INCOME TAXES (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Tax Assets, Gross [Abstract] | ||
Property and equipment | $ 4,531 | $ 170 |
Intangible assets | 1,262 | 1,456 |
Accrued expenses | 32,067 | 4,392 |
Net operating loss carryforward | 4,983 | 5,069 |
Deferred revenue | 5,802 | 1,280 |
Stock-based compensation | 27,558 | 16,197 |
Foreign currency exchange | 5,772 | 0 |
Other assets | 782 | 1,415 |
Deferred tax assets | 82,757 | 29,979 |
Less: valuation allowance | (3,189) | (924) |
Total deferred tax assets | 79,568 | 29,055 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Property and equipment | 1,480 | 1,868 |
Intangible assets | 5,582 | 3,077 |
Accrued revenue and expenses | 1,540 | 1,352 |
U.S. taxation of foreign subsidiaries | 3,000 | 0 |
Subsidiary withholding tax liability | 0 | 4,850 |
Stock-based compensation | 0 | 1,498 |
Other liabilities | 933 | 239 |
Total deferred tax liabilities | 12,535 | 12,884 |
Net deferred tax assets | 67,033 | 16,171 |
Other Noncurrent Liabilities | ||
Deferred Tax Liabilities, Classification [Abstract] | ||
Deferred tax liabilities, noncurrent | 2,950 | 8,803 |
Business acquisitions | ||
Deferred Tax Assets, Gross [Abstract] | ||
Stock-based compensation | $ 7,561 | $ 8,512 |
Business acquisitions | Minimum | ||
Deferred Tax Assets, Gross [Abstract] | ||
Amortization period of stock-based compensation for tax | 10 years | |
Business acquisitions | Maximum | ||
Deferred Tax Assets, Gross [Abstract] | ||
Amortization period of stock-based compensation for tax | 15 years |
INCOME TAXES (Operating Loss Ca
INCOME TAXES (Operating Loss Carryforwards) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Domestic | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | $ 4,183 |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 22,808 |
Operating Loss Carryforward Subject to Valuation Allowance | 18,123 |
Foreign | No expiry | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 7,031 |
Foreign | 2019 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 2,309 |
Foreign | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 404 |
Foreign | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 5,098 |
Foreign | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 5,678 |
Foreign | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 1,501 |
Foreign | Beyond 2023 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | $ 787 |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Significant new tax positions resulted in increase in current year | $ 0 | $ 0 | $ 0 |
Significant new tax positions resulted in reversal of prior year tax positions | 0 | 0 | $ 0 |
Tax position for which significant change in unrecognized tax benefits is reasonably possible | 0 | ||
Taxes Payable, Noncurrent | |||
Income Tax Contingency [Line Items] | |||
Total gross unrecognized tax benefit | $ 1,432 | $ 699 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Mar. 15, 2018 | May 24, 2017 | Sep. 12, 2014 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Continuum | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Mar. 31, 2029 | |||||
Long-term debt | $ 3,448 | |||||
Contractual interest rate | 8.00% | |||||
Repayments of debt | $ 3,448 | |||||
Revolving Credit Facility | Credit Facility 2014 [Member] | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate spread | 1.00% | |||||
Revolving Credit Facility | Credit Facility 2014 [Member] | Federal Funds Open Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate spread | 0.50% | |||||
Revolving Credit Facility | Credit Facility 2014 [Member] | United States of America, Dollars | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, current borrowing capacity | $ 100,000 | |||||
Line of credit, maximum borrowing capacity | 200,000 | |||||
Revolving Credit Facility | Credit Facility 2014 [Member] | Other currencies, excluding U.S. dollars | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 50,000 | |||||
Revolving Credit Facility | 2017 Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | May 24, 2022 | |||||
Revolving Credit Facility | 2017 Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate spread | 1.00% | |||||
Revolving Credit Facility | 2017 Credit Facility | Federal Funds Open Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate spread | 0.50% | |||||
Revolving Credit Facility | 2017 Credit Facility | United States of America, Dollars | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, current borrowing capacity | $ 300,000 | |||||
Line of credit, maximum borrowing capacity | 400,000 | |||||
Outstanding debt | $ 25,000 | $ 25,000 | ||||
Interest rate | 3.51% | 2.60% | ||||
Available borrowing capacity | $ 274,618 | $ 273,706 | ||||
Revolving Credit Facility | 2017 Credit Facility | United States of America, Dollars | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, current borrowing capacity | 300,000 | 300,000 | ||||
Revolving Credit Facility | 2017 Credit Facility | Other currencies, excluding U.S. dollars | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 100,000 | |||||
Standby Letters of Credit [Member] | 2017 Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Irrevocable standby letters of credit | $ 382 | $ 1,294 |
REVENUES (Disaggregation of Rev
REVENUES (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 399,297 | $ 377,523 | $ 348,977 | $ 324,651 | $ 1,842,912 | $ 1,450,448 | $ 1,160,132 |
Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,841,242 | ||||||||||
Transferred at a Point of Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,670 | ||||||||||
Time-and-material | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,652,897 | ||||||||||
Fixed-price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 184,251 | ||||||||||
Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 4,097 | ||||||||||
Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,667 | ||||||||||
Financial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 423,977 | ||||||||||
Travel & Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 393,643 | ||||||||||
Software & Hi-Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 350,815 | ||||||||||
Business Information & Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 324,033 | ||||||||||
Life Sciences & Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 171,703 | ||||||||||
Emerging Verticals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 178,741 | ||||||||||
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,099,167 | ||||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 612,472 | ||||||||||
CIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 81,703 | ||||||||||
APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 49,570 | ||||||||||
North America Segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,077,094 | 796,126 | 642,216 | ||||||||
North America Segment | Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,076,083 | ||||||||||
North America Segment | Transferred at a Point of Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,011 | ||||||||||
North America Segment | Time-and-material | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 983,433 | ||||||||||
North America Segment | Fixed-price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 89,831 | ||||||||||
North America Segment | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 2,748 | ||||||||||
North America Segment | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,082 | ||||||||||
North America Segment | Financial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 112,528 | ||||||||||
North America Segment | Travel & Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 177,913 | ||||||||||
North America Segment | Software & Hi-Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 269,067 | ||||||||||
North America Segment | Business Information & Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 251,081 | ||||||||||
North America Segment | Life Sciences & Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 151,449 | ||||||||||
North America Segment | Emerging Verticals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 115,056 | ||||||||||
North America Segment | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,046,333 | ||||||||||
North America Segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 16,693 | ||||||||||
North America Segment | CIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 8,437 | ||||||||||
North America Segment | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 5,631 | ||||||||||
Europe Segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 693,867 | 593,167 | 474,988 | ||||||||
Europe Segment | Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 692,024 | ||||||||||
Europe Segment | Transferred at a Point of Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,843 | ||||||||||
Europe Segment | Time-and-material | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 628,710 | ||||||||||
Europe Segment | Fixed-price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 62,078 | ||||||||||
Europe Segment | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,332 | ||||||||||
Europe Segment | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,747 | ||||||||||
Europe Segment | Financial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 253,089 | ||||||||||
Europe Segment | Travel & Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 208,445 | ||||||||||
Europe Segment | Software & Hi-Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 79,121 | ||||||||||
Europe Segment | Business Information & Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 72,898 | ||||||||||
Europe Segment | Life Sciences & Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 20,272 | ||||||||||
Europe Segment | Emerging Verticals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 60,042 | ||||||||||
Europe Segment | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 52,859 | ||||||||||
Europe Segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 596,559 | ||||||||||
Europe Segment | CIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 336 | ||||||||||
Europe Segment | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 44,113 | ||||||||||
Russia Segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 73,148 | 62,994 | 43,611 | ||||||||
Russia Segment | Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 73,135 | ||||||||||
Russia Segment | Transferred at a Point of Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 13 | ||||||||||
Russia Segment | Time-and-material | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 40,754 | ||||||||||
Russia Segment | Fixed-price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 32,342 | ||||||||||
Russia Segment | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 17 | ||||||||||
Russia Segment | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 35 | ||||||||||
Russia Segment | Financial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 59,337 | ||||||||||
Russia Segment | Travel & Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 7,467 | ||||||||||
Russia Segment | Software & Hi-Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 2,627 | ||||||||||
Russia Segment | Business Information & Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 54 | ||||||||||
Russia Segment | Life Sciences & Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 13 | ||||||||||
Russia Segment | Emerging Verticals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 3,650 | ||||||||||
Russia Segment | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 75 | ||||||||||
Russia Segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 52 | ||||||||||
Russia Segment | CIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 72,930 | ||||||||||
Russia Segment | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 91 | ||||||||||
Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,844,109 | 1,452,287 | 1,160,815 | ||||||||
Operating Segments | Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,841,242 | ||||||||||
Operating Segments | Transferred at a Point of Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 2,867 | ||||||||||
Operating Segments | Time-and-material | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,652,897 | ||||||||||
Operating Segments | Fixed-price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 184,251 | ||||||||||
Operating Segments | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 4,097 | ||||||||||
Operating Segments | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 2,864 | ||||||||||
Operating Segments | Financial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 424,954 | ||||||||||
Operating Segments | Travel & Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 393,825 | ||||||||||
Operating Segments | Software & Hi-Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 350,815 | ||||||||||
Operating Segments | Business Information & Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 324,033 | ||||||||||
Operating Segments | Life Sciences & Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 171,734 | ||||||||||
Operating Segments | Emerging Verticals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 178,748 | ||||||||||
Operating Segments | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 1,099,267 | ||||||||||
Operating Segments | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 613,304 | ||||||||||
Operating Segments | CIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 81,703 | ||||||||||
Operating Segments | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | 49,835 | ||||||||||
Other Income Included in Segment Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Segment Revenues | (1,197) | (1,839) | (683) | ||||||||
Other income included in segment revenues | (1,197) | $ (1,839) | $ (683) | ||||||||
Other Income Included in Segment Revenues | Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | 0 | ||||||||||
Other Income Included in Segment Revenues | Transferred at a Point of Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | (1,197) | ||||||||||
Other Income Included in Segment Revenues | Time-and-material | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | 0 | ||||||||||
Other Income Included in Segment Revenues | Fixed-price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | 0 | ||||||||||
Other Income Included in Segment Revenues | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | 0 | ||||||||||
Other Income Included in Segment Revenues | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | (1,197) | ||||||||||
Other Income Included in Segment Revenues | Financial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | (977) | ||||||||||
Other Income Included in Segment Revenues | Travel & Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | (182) | ||||||||||
Other Income Included in Segment Revenues | Software & Hi-Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | 0 | ||||||||||
Other Income Included in Segment Revenues | Business Information & Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | 0 | ||||||||||
Other Income Included in Segment Revenues | Life Sciences & Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | (31) | ||||||||||
Other Income Included in Segment Revenues | Emerging Verticals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | (7) | ||||||||||
Other Income Included in Segment Revenues | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | (100) | ||||||||||
Other Income Included in Segment Revenues | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | (832) | ||||||||||
Other Income Included in Segment Revenues | CIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | 0 | ||||||||||
Other Income Included in Segment Revenues | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other income included in segment revenues | $ (265) |
REVENUES (Timing of Revenue Rec
REVENUES (Timing of Revenue Recognition) (Details) - Fixed-price $ in Thousands | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 7,660 |
Less than 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 7,202 |
1 Year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 402 |
2 Years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 56 |
3 Years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 0 |
REVENUES (Contract Balances) (D
REVENUES (Contract Balances) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Contract with Customer, Liability [Abstract] | ||
Revenues from performance obligations satisfied in previous periods | $ 5,736 | |
Unbilled Revenues | ||
Change in Contract with Customer, Liability [Abstract] | ||
Contract assets | 13,522 | $ 7,901 |
Accrued Expenses and Other Current Liabilities | ||
Change in Contract with Customer, Liability [Abstract] | ||
Revenues recognized | 3,810 | |
Contract liabilities | 4,558 | 4,498 |
Other Noncurrent Liabilities | ||
Change in Contract with Customer, Liability [Abstract] | ||
Contract liabilities | $ 224 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Fair Value of Derivative Instruments) (Details) - Foreign Exchange Contract - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Financial collateral posted | $ 0 | |
Designated as hedging instrument | Cash flow hedging | Prepaid and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 181 | $ 0 |
Designated as hedging instrument | Cash flow hedging | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 3,475 | 0 |
Not designated as hedging instrument | Prepaid and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 0 | $ 114 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Changes in the Fair Value of Derivative Instruments) (Details) - Foreign Exchange Contract - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Designated as hedging instrument | Cash flow hedging | Accumulated Other Comprehensive Loss | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value | $ (3,294) | $ 0 | $ 0 |
Designated as hedging instrument | Cash flow hedging | Cost of Revenues (Exclusive of Depreciation and Amortization) | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net loss reclassified | (4,161) | 0 | 0 |
Not designated as hedging instrument | Foreign Exchange Gain/(Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain recognized | $ 44 | $ 425 | $ 92 |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets and Liabilities at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | $ 8,390 | $ 0 | $ 0 |
Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets measured at fair value on a recurring basis | 181 | ||
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | 7,468 | ||
Total financial liabilities measured at fair value on a recurring basis | 10,943 | $ 0 | |
Recurring | Foreign Exchange Contract | |||
Assets, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative assets | 181 | ||
Liabilities, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative liabilities | 3,475 | ||
Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets measured at fair value on a recurring basis | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | 0 | ||
Total financial liabilities measured at fair value on a recurring basis | 0 | ||
Recurring | Level 1 | Foreign Exchange Contract | |||
Assets, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative assets | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative liabilities | 0 | ||
Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets measured at fair value on a recurring basis | 181 | ||
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | 0 | ||
Total financial liabilities measured at fair value on a recurring basis | 3,475 | ||
Recurring | Level 2 | Foreign Exchange Contract | |||
Assets, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative assets | 181 | ||
Liabilities, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative liabilities | 3,475 | ||
Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets measured at fair value on a recurring basis | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | 7,468 | ||
Total financial liabilities measured at fair value on a recurring basis | 7,468 | ||
Recurring | Level 3 | Foreign Exchange Contract | |||
Assets, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative assets | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative liabilities | $ 0 |
FAIR VALUE MEASUREMENTS (Reconc
FAIR VALUE MEASUREMENTS (Reconciliation of Acquisition-Related Contractual Contingent Liabilities Using Significant Unobservable Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in fair value of contractual contingent liabilities recorded against goodwill | $ 200 | ||
Reclassification of contractual contingent liabilities out of Level 3 | (3,789) | ||
Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Contractual contingent liabilities, beginning of period | $ 0 | $ 0 | 5,364 |
Changes in fair value of contingent consideration included in Interest and other income, net (Note 2) | 1,232 | ||
Settlements of contractual contingent liabilities | (8,955) | ||
Increase/(decrease) in contractual contingent liabilities | 0 | ||
Effect of net foreign currency exchange rate changes | (22) | ||
Contractual contingent liabilities, end of period | 7,468 | $ 0 | 0 |
Level 3 | Other Nonoperating Income (Expense) [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in fair value of contingent consideration included in Interest and other income, net (Note 2) | (900) | ||
Level 3 | Contractual Contingent Liability | Other Acquisitions | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Acquisition date fair value | 800 | ||
Level 3 | Contractual Contingent Liability | Continuum | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Acquisition date fair value | 2,400 | ||
Level 3 | Contractual Contingent Liability | Think | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Acquisition date fair value | $ 5,990 | ||
Level 3 | Liability Classified Stock-Based Award | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Acquisition date fair value | $ 5,148 |
FAIR VALUE MEASUREMENTS (Employ
FAIR VALUE MEASUREMENTS (Employee Loans) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans issued to principal officers, directors, or their affiliates | $ 0 |
Maximum | Housing loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans program lending limit | 10,000 |
Individual loan amount limit | $ 50 |
FAIR VALUE MEASUREMENTS (Report
FAIR VALUE MEASUREMENTS (Reported Amounts and Estimated Fair Values of the Financial Assets and Liabilities Requiring Fair Value Disclosure) (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | $ 770,560 | $ 582,585 |
Restricted cash | 1,151 | |
Time deposits and restricted cash | 673 | |
Employee loans | 3,525 | 4,210 |
Balance | Revolving Credit Facility | 2017 Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowings | 25,020 | 25,009 |
Estimated Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 770,560 | 582,585 |
Restricted cash | 1,151 | |
Time deposits and restricted cash | 673 | |
Employee loans | 3,525 | 4,210 |
Estimated Fair Value | Revolving Credit Facility | 2017 Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowings | 25,020 | 25,009 |
Estimated Fair Value | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 770,560 | 582,585 |
Restricted cash | 1,151 | |
Time deposits and restricted cash | 0 | |
Employee loans | 0 | 0 |
Estimated Fair Value | Level 1 | Revolving Credit Facility | 2017 Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowings | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Time deposits and restricted cash | 673 | |
Employee loans | 0 | 0 |
Estimated Fair Value | Level 2 | Revolving Credit Facility | 2017 Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowings | 25,020 | 25,009 |
Estimated Fair Value | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Time deposits and restricted cash | 0 | |
Employee loans | 3,525 | 4,210 |
Estimated Fair Value | Level 3 | Revolving Credit Facility | 2017 Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowings | $ 0 | $ 0 |
STOCK-BASED COMPENSATION (Costs
STOCK-BASED COMPENSATION (Costs Related to Stock Compensation Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 59,188 | $ 52,407 | $ 49,244 |
Cost of Revenues (Exclusive of Depreciation and Amortization) | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 27,245 | 20,868 | 16,619 |
Selling, General and Administrative Expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 31,943 | $ 31,539 | $ 32,625 |
STOCK-BASED COMPENSATION (Equit
STOCK-BASED COMPENSATION (Equity Plans) (Details) - shares | Jun. 11, 2015 | Jan. 11, 2012 | May 31, 2006 | Dec. 31, 2018 |
2015 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for issuance (in shares) | 5,332,128 | |||
Expiration period | 10 years | |||
2012 Directors Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for issuance (in shares) | 533,852 | |||
Number of shares authorized for issuance (in shares) | 600,000 | |||
Expiration period | 10 years | |||
2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
2006 Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options (in shares) | |||
Options outstanding, beginning of period | 4,901,748 | 6,637,239 | 7,450,914 |
Options granted | 160,181 | 261,373 | 313,088 |
Options exercised | (945,166) | (1,789,434) | (895,804) |
Options forfeited/cancelled | (32,569) | (200,210) | (227,759) |
Options expired | (1,250) | (7,220) | (3,200) |
Options outstanding, end of period | 4,082,944 | 4,901,748 | 6,637,239 |
Options vested and exercisable as of December 31, 2018 | 3,183,103 | ||
Options expected to vest as of December 31, 2018 | 867,711 | ||
Weighted Average Exercise Price (in dollars per share) | |||
Options outstanding, beginning of period | $ 40.91 | $ 37.20 | $ 34.07 |
Options granted | 112.81 | 73.40 | 70.27 |
Options exercised | 36.69 | 30.23 | 20.13 |
Options forfeited/cancelled | 63.28 | 57.09 | 47.89 |
Options expired | 25.72 | 4.63 | 1.52 |
Options outstanding, end of period | 44.54 | $ 40.91 | $ 37.20 |
Options vested and exercisable as of December 31, 2018 | 36.10 | ||
Options expected to vest as of December 31, 2018 | $ 73.93 | ||
Aggregate Intrinsic Value | |||
Options outstanding, beginning of period | $ 326,064 | $ 179,936 | $ 331,938 |
Options outstanding, end of period | 291,846 | $ 326,064 | $ 179,936 |
Options vested and exercisable as of December 31, 2018 | 254,360 | ||
Options expected to vest as of December 31, 2018 | $ 36,539 | ||
Weighted Average Remaining Contractual Term (in years) | |||
Options outstanding as of December 31, 2018 | 5 years 5 months 13 days | ||
Options vested and exercisable as of December 31, 2018 | 4 years 11 months 4 days | ||
Options expected to vest as of December 31, 2018 | 7 years 3 months 8 days |
STOCK-BASED COMPENSATION (Black
STOCK-BASED COMPENSATION (Black Scholes Model Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected volatility | 33.78% | 30.50% | 31.85% |
Expected term (in years) | 6 years 3 months | 6 years 3 months | 6 years 2 months 27 days |
Risk-free interest rate | 2.71% | 2.10% | 1.49% |
Expected dividends | 0.00% | 0.00% | 0.00% |
STOCK-BASED COMPENSATION (Sto_2
STOCK-BASED COMPENSATION (Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options exercised, in transfer (in shares) | 50 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value | $ 43.42 | $ 25.29 | $ 24.26 |
Total intrinsic value of options exercised | $ 83,250 | $ 91,148 | $ 39,577 |
Vesting period (in years) | 4 years | ||
Unrecognized compensation cost net of forfeitures | $ 12,553 | ||
Unrecognized compensation cost, period for recognition | 2 years 25 days |
STOCK-BASED COMPENSATION (Retri
STOCK-BASED COMPENSATION (Retricted Stock and Restricted Stock Units Activity) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||||
Number of Shares | |||||
Unvested awards outstanding, beginning of period | 1,840 | 1,840 | 154,125 | 306,839 | |
Awards granted | 0 | 0 | 6,510 | ||
Awards modified | 0 | 0 | |||
Awards vested | (1,047) | (152,285) | (156,535) | ||
Awards forfeited/cancelled | 0 | 0 | (2,689) | ||
Unvested awards outstanding, end of period | 793 | 793 | 1,840 | 154,125 | |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||||
Unvested awards outstanding, beginning of period | $ 54.37 | $ 54.37 | $ 40.89 | $ 41.14 | |
Awards granted | 0 | 0 | 73 | ||
Awards modified | 0 | 0 | |||
Awards vested | 47.76 | 43.39 | 42.64 | ||
Awards forfeited/cancelled | 0 | 0 | 45.32 | ||
Unvested awards outstanding, end of period | $ 63.10 | $ 63.10 | $ 54.37 | $ 40.89 | |
Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested Not Delivered | 3,894 | 3,894 | |||
Number of Shares | |||||
Unvested awards outstanding, beginning of period | 688,012 | 688,012 | 485,188 | 149,272 | |
Awards granted | 380,864 | 424,623 | 408,629 | ||
Awards modified | (3,110) | (2,570) | |||
Awards vested | (217,800) | (140,043) | (41,015) | ||
Awards forfeited/cancelled | (50,063) | (79,186) | (31,698) | ||
Unvested awards outstanding, end of period | 797,903 | 797,903 | 688,012 | 485,188 | |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||||
Unvested awards outstanding, beginning of period | $ 71.60 | $ 71.60 | $ 67.69 | $ 57.55 | |
Awards granted | 115.84 | 73.89 | 70.39 | ||
Awards modified | 80.27 | 26.85 | |||
Awards vested | 70.10 | 66.54 | 55.60 | ||
Awards forfeited/cancelled | 86.97 | 70.30 | 70.44 | ||
Unvested awards outstanding, end of period | $ 92.13 | $ 92.13 | $ 71.60 | $ 67.69 | |
Service Period | Liability Classified Award | Cash-Settled Award | Restricted Stock Units (RSUs) | |||||
Number of Shares | |||||
Unvested awards outstanding, beginning of period | 314,829 | 314,829 | 204,501 | 0 | |
Awards granted | 85,380 | 170,295 | 207,586 | ||
Awards modified | 3,110 | 2,570 | |||
Awards vested | (91,684) | (52,004) | 0 | ||
Awards forfeited/cancelled | (8,668) | (10,533) | (3,085) | ||
Unvested awards outstanding, end of period | 302,967 | 302,967 | 314,829 | 204,501 | |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||||
Unvested awards outstanding, beginning of period | $ 72.50 | $ 72.50 | $ 70.53 | $ 0 | |
Awards granted | 112.65 | 74.21 | 70.53 | ||
Awards modified | 120.18 | 73.27 | |||
Awards vested | 72.69 | 70.56 | 0 | ||
Awards forfeited/cancelled | 81.40 | 71.72 | 70.52 | ||
Unvested awards outstanding, end of period | $ 83.99 | $ 83.99 | $ 72.50 | $ 70.53 | |
Performance Targets | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||||
Number of Shares | |||||
Unvested awards outstanding, beginning of period | 0 | 0 | 5,573 | 22,090 | |
Awards granted | 0 | 0 | 0 | ||
Awards vested | 0 | (5,573) | (9,978) | ||
Awards forfeited/cancelled | 0 | 0 | (6,539) | ||
Unvested awards outstanding, end of period | 0 | 0 | 0 | 5,573 | |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||||
Unvested awards outstanding, beginning of period | $ 0 | $ 0 | $ 33.47 | $ 37.52 | |
Awards granted | 0 | 0 | 0 | ||
Awards vested | 0 | 33.47 | 40.15 | ||
Awards forfeited/cancelled | 0 | 0 | 36.97 | ||
Unvested awards outstanding, end of period | $ 0 | $ 0 | $ 0 | $ 33.47 | |
Performance Targets | Equity Classified Award | Equity-Settled Award | Restricted Stock Units (RSUs) | |||||
Number of Shares | |||||
Unvested awards outstanding, beginning of period | 0 | 0 | 4,667 | 14,000 | |
Awards granted | 45,375 | 0 | 0 | ||
Awards vested | (8,769) | 0 | (4,666) | ||
Awards forfeited/cancelled | (7,014) | (4,667) | (4,667) | ||
Unvested awards outstanding, end of period | 29,592 | 29,592 | 0 | 4,667 | |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||||
Unvested awards outstanding, beginning of period | $ 0 | $ 0 | $ 70.22 | $ 70.22 | |
Awards granted | 121.75 | 0 | 0 | ||
Awards vested | 121.75 | 0 | 70.22 | ||
Awards forfeited/cancelled | 121.75 | 70.22 | 70.22 | ||
Unvested awards outstanding, end of period | $ 121.75 | $ 121.75 | $ 0 | $ 70.22 | |
Performance Targets | Liability Classified Award | Equity-Settled Award | Restricted Stock | |||||
Number of Shares | |||||
Unvested awards outstanding, beginning of period | 0 | 0 | 105,602 | 211,206 | |
Awards granted | 0 | 0 | 0 | ||
Awards vested | 0 | (105,602) | (105,604) | ||
Awards forfeited/cancelled | 0 | 0 | 0 | ||
Unvested awards outstanding, end of period | 0 | 0 | 0 | 105,602 | |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||||
Unvested awards outstanding, beginning of period | $ 0 | $ 0 | $ 38.86 | $ 39.65 | |
Awards granted | 0 | 0 | 0 | ||
Awards vested | 0 | 38.86 | 40.44 | ||
Awards forfeited/cancelled | 0 | 0 | 0 | ||
Unvested awards outstanding, end of period | $ 0 | $ 0 | $ 0 | $ 38.86 | |
Continuum | Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units (RSUs) | |||||
Number of Shares | |||||
Awards granted | 44,228 | ||||
Think | Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units (RSUs) | |||||
Number of Shares | |||||
Awards granted | 44,350 |
STOCK-BASED COMPENSATION (Fair
STOCK-BASED COMPENSATION (Fair Value of Restricted Stock and Restricted Stock Units Vested) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Service Period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 35,478 | $ 27,038 | $ 14,363 |
Performance Targets | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 1,046 | 9,085 | 8,993 |
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 142 | 12,607 | 11,431 |
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 24,987 | 10,620 | 2,932 |
Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 0 | 452 | 690 |
Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 1,046 | 0 | 348 |
Liability Classified Award | Service Period | Cash-Settled Award | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 10,349 | 3,811 | 0 |
Liability Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 0 | $ 8,633 | $ 7,955 |
STOCK-BASED COMPENSATION (Ret_2
STOCK-BASED COMPENSATION (Retricted Stock and Restricted Stock Units) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Liability associated with stock-based awardsurrent | $ 9,920 | $ 9,920 | $ 5,964 | |
Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | 2,779 | $ 2,779 | ||
Unrecognized compensation cost, period for recognition | 1 year 10 months 15 days | |||
Award accelerated compensation cost | 835 | |||
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | 38 | $ 38 | ||
Unrecognized compensation cost, period for recognition | 1 year 6 months 7 days | |||
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | 51,655 | $ 51,655 | ||
Unrecognized compensation cost, period for recognition | 2 years 6 months 27 days | |||
Liability Classified Award | Service Period | Cash-Settled Award | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | 23,251 | $ 23,251 | ||
Unrecognized compensation cost, period for recognition | 2 years 3 months 12 days | |||
Cash paid to settle awards | $ 10,349 | 3,811 | $ 0 | |
Liability Classified Award | Service Period | Cash-Settled Award | Restricted Stock Units (RSUs) | Deferred compensation due to employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Liability associated with stock-based awardsurrent | $ 9,920 | $ 9,920 | $ 5,964 | |
Business acquisitions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Year One | Business acquisitions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.30% | |||
Year Two | Business acquisitions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.30% | |||
Year Three | Business acquisitions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.30% |
EARNINGS PER SHARE (Earning per
EARNINGS PER SHARE (Earning per share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||
Net income | $ 59,965 | $ 65,618 | $ 50,255 | $ 64,418 | $ (30,874) | $ 42,634 | $ 37,359 | $ 23,641 | $ 240,256 | $ 72,760 | $ 99,266 | ||||||||||
Numerator for basic and diluted earnings per share | $ 240,256 | $ 72,760 | $ 99,266 | ||||||||||||||||||
Denominator: | |||||||||||||||||||||
Basic weighted average common stock outstanding (in shares) | 53,623,000 | 52,077,000 | 50,309,000 | ||||||||||||||||||
Stock options, equity-settled RSUs and performance-based awards (in shares) | 0 | 3,050,000 | 2,907,000 | 2,906,000 | |||||||||||||||||
Diluted weighted average common stock outstanding (in shares) | 56,673,000 | 54,984,000 | 53,215,000 | ||||||||||||||||||
Net Income per share: | |||||||||||||||||||||
Basic (in dollars per share) | $ 1.11 | [1] | $ 1.22 | [1] | $ 0.94 | [1] | $ 1.21 | [1] | $ (0.58) | [1],[2] | $ 0.81 | [1] | $ 0.72 | [1] | $ 0.46 | [1] | $ 4.48 | [1] | $ 1.40 | [1] | $ 1.97 |
Diluted (in dollars per share) | $ 1.05 | [1] | $ 1.15 | [1] | $ 0.89 | [1] | $ 1.15 | [1] | $ (0.58) | [1],[2] | $ 0.77 | [1] | $ 0.68 | [1] | $ 0.44 | [1] | $ 4.24 | [1] | $ 1.32 | [1] | $ 1.87 |
Anti-dilutive stock excluded from the calculation (in shares) | 139,000 | 883,000 | 2,325,000 | ||||||||||||||||||
[1] | (1)Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. | ||||||||||||||||||||
[2] | (2)Due to the net loss during the three months ended December 31, 2017, zero incremental shares are included in the calculation of diluted loss per share because of their antidilutive effect. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Future Minimum Rental Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | $ 46,082 | ||
2,019 | 38,715 | ||
2,020 | 32,126 | ||
2,021 | 24,341 | ||
2,022 | 20,118 | ||
Thereafter | 77,484 | ||
Total minimum lease payments | 238,866 | ||
Operating lease expense | $ 46,924 | $ 37,916 | $ 28,220 |
SEGMENT INFORMATION (Revenues f
SEGMENT INFORMATION (Revenues from External Customers and Operating Profit/(Loss) Before Unallocated Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating profit/(loss) | $ 78,270 | $ 64,560 | $ 54,237 | $ 48,697 | $ 52,050 | $ 49,248 | $ 40,682 | $ 30,966 | $ 245,764 | $ 172,946 | $ 133,696 |
North America Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Revenues | 1,077,094 | 796,126 | 642,216 | ||||||||
Operating profit/(loss) | 221,846 | 169,340 | 143,021 | ||||||||
North America Segment | North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Revenues | 1,046,333 | ||||||||||
Europe Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Revenues | 693,867 | 593,167 | 474,988 | ||||||||
Operating profit/(loss) | 115,876 | 92,080 | 67,545 | ||||||||
Europe Segment | North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Revenues | 52,859 | ||||||||||
Russia Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Revenues | 73,148 | 62,994 | 43,611 | ||||||||
Operating profit/(loss) | 11,377 | 13,906 | 7,555 | ||||||||
Russia Segment | North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Revenues | 75 | ||||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Revenues | 1,844,109 | 1,452,287 | 1,160,815 | ||||||||
Operating profit/(loss) | 349,099 | $ 275,326 | $ 218,121 | ||||||||
Operating Segments | North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Revenues | $ 1,099,267 |
SEGMENT INFORMATION (Major Cust
SEGMENT INFORMATION (Major Customers) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 399,297 | $ 377,523 | $ 348,977 | $ 324,651 | $ 1,842,912 | $ 1,450,448 | $ 1,160,132 |
Accounts Receivable | Customer Concentration Risk | Billed Revenues | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Number of Customers | 0 | 0 | |||||||||
Operating Segments | Sales Revenue, Segment | Customer Concentration Risk | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Number of Customers | 0 | 0 | |||||||||
Operating Segments | Sales Revenue, Segment | Customer Concentration Risk | Europe | UBS AG | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Number of Customers | 1 | ||||||||||
Revenues | $ 138,124 |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation of Segment Revenues and Operating Profit to Consolidated Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 399,297 | $ 377,523 | $ 348,977 | $ 324,651 | $ 1,842,912 | $ 1,450,448 | $ 1,160,132 |
Segment Reporting Information [Line Items] | |||||||||||
Total segment operating profit: | 78,270 | 64,560 | 54,237 | 48,697 | 52,050 | 49,248 | 40,682 | 30,966 | 245,764 | 172,946 | 133,696 |
Stock-based compensation expense | (59,188) | (52,407) | (49,244) | ||||||||
Depreciation and amortization | (10,183) | (9,319) | (8,962) | (8,176) | (7,696) | (7,174) | (7,020) | (6,672) | (36,640) | (28,562) | (23,387) |
Interest and other income, net | 1,080 | 1,941 | 1,052 | (551) | 1,799 | 1,416 | 802 | 584 | 3,522 | 4,601 | 4,848 |
Foreign exchange gain/(loss) | (582) | (514) | 1,830 | (247) | (1,772) | (77) | 1,562 | (2,955) | 487 | (3,242) | (12,078) |
Income before provision for income taxes | $ 78,768 | $ 65,987 | $ 57,119 | $ 47,899 | $ 52,077 | $ 50,587 | $ 43,046 | $ 28,595 | 249,773 | 174,305 | 126,466 |
Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Segment Revenues | 1,844,109 | 1,452,287 | 1,160,815 | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment operating profit: | 349,099 | 275,326 | 218,121 | ||||||||
Unallocated Amounts | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Segment Revenues | (1,197) | (1,839) | (683) | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other income included in segment revenues | (1,197) | (1,839) | (683) | ||||||||
Stock-based compensation expense | (59,188) | (52,407) | (49,244) | ||||||||
Non-corporate taxes | (9,856) | (9,659) | (5,909) | ||||||||
Professional fees | (6,188) | (8,032) | (8,265) | ||||||||
Depreciation and amortization | (8,057) | (7,632) | (8,290) | ||||||||
Bank charges | (2,358) | (1,969) | (1,515) | ||||||||
One-time charges and other acquisition-related expenses | (2,055) | (1,741) | (706) | ||||||||
Other operating expenses | $ (14,436) | $ (19,101) | $ (9,813) |
SEGMENT INFORMATION (Geographic
SEGMENT INFORMATION (Geographical Information of Long-Lived Assets Based on Physical Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 102,646 | $ 86,419 | $ 73,616 |
Belarus | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 50,085 | 49,866 | 46,011 |
United States | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 13,101 | 3,371 | 2,618 |
Russia | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 9,902 | 9,617 | 7,203 |
Ukraine | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 8,433 | 6,995 | 5,610 |
India | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 7,019 | 2,698 | 1,650 |
Hungary | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 3,168 | 3,901 | 3,485 |
China | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 2,651 | 2,608 | 1,887 |
Poland | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 2,637 | 2,893 | 2,213 |
Other | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 5,650 | $ 4,470 | $ 2,939 |
SEGMENT INFORMATION (Revenues b
SEGMENT INFORMATION (Revenues by Client Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 399,297 | $ 377,523 | $ 348,977 | $ 324,651 | $ 1,842,912 | $ 1,450,448 | $ 1,160,132 |
United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 1,029,327 | 783,563 | 611,392 | ||||||||
United Kingdom | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 200,918 | 188,995 | 177,194 | ||||||||
Switzerland | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 144,398 | 123,281 | 122,919 | ||||||||
Germany | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 80,787 | 60,158 | 43,621 | ||||||||
Russia | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 71,181 | 61,222 | 40,944 | ||||||||
Netherlands | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 70,274 | 51,556 | 17,521 | ||||||||
Canada | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 69,836 | 57,129 | 59,189 | ||||||||
Other | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 176,191 | $ 124,544 | $ 87,352 |
SEGMENT INFORMATION (Reclassifi
SEGMENT INFORMATION (Reclassification) (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income from operations | |
Effect of Reclassification Adjustments [Line Items] | |
Effect of reclassification | $ 0 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Quaterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Revenues | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 399,297 | $ 377,523 | $ 348,977 | $ 324,651 | $ 1,842,912 | $ 1,450,448 | $ 1,160,132 | ||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 319,031 | 301,081 | 289,175 | 277,634 | 254,121 | 239,369 | 220,132 | 207,730 | 1,186,921 | 921,352 | 737,186 | ||||||||||
Selling, general and administrative expenses | 97,447 | 93,226 | 93,273 | 89,641 | 85,430 | 81,732 | 81,143 | 79,283 | 373,587 | 327,588 | 265,863 | ||||||||||
Depreciation and amortization expense | 10,183 | 9,319 | 8,962 | 8,176 | 7,696 | 7,174 | 7,020 | 6,672 | 36,640 | 28,562 | 23,387 | ||||||||||
Income from operations | 78,270 | 64,560 | 54,237 | 48,697 | 52,050 | 49,248 | 40,682 | 30,966 | 245,764 | 172,946 | 133,696 | ||||||||||
Interest and other income, net | 1,080 | 1,941 | 1,052 | (551) | 1,799 | 1,416 | 802 | 584 | 3,522 | 4,601 | 4,848 | ||||||||||
Foreign exchange gain/(loss) | (582) | (514) | 1,830 | (247) | (1,772) | (77) | 1,562 | (2,955) | 487 | (3,242) | (12,078) | ||||||||||
Income before provision for/(benefit from) income taxes | 78,768 | 65,987 | 57,119 | 47,899 | 52,077 | 50,587 | 43,046 | 28,595 | 249,773 | 174,305 | 126,466 | ||||||||||
Provision for/(benefit from) income taxes | 18,803 | 369 | 6,864 | (16,519) | 82,951 | 7,953 | 5,687 | 4,954 | 9,517 | 101,545 | 27,200 | ||||||||||
Net income | 59,965 | 65,618 | 50,255 | 64,418 | (30,874) | 42,634 | 37,359 | 23,641 | 240,256 | 72,760 | 99,266 | ||||||||||
Comprehensive income | $ 52,798 | $ 63,426 | $ 32,345 | $ 67,796 | $ (27,449) | $ 48,337 | $ 41,910 | $ 30,027 | $ 216,365 | $ 92,825 | $ 96,728 | ||||||||||
Basic net income/(loss) per share | $ 1.11 | [1] | $ 1.22 | [1] | $ 0.94 | [1] | $ 1.21 | [1] | $ (0.58) | [1],[2] | $ 0.81 | [1] | $ 0.72 | [1] | $ 0.46 | [1] | $ 4.48 | [1] | $ 1.40 | [1] | $ 1.97 |
Diluted net income/(loss) per share | $ 1.05 | [1] | $ 1.15 | [1] | $ 0.89 | [1] | $ 1.15 | [1] | $ (0.58) | [1],[2] | $ 0.77 | [1] | $ 0.68 | [1] | $ 0.44 | [1] | $ 4.24 | [1] | $ 1.32 | [1] | $ 1.87 |
Incremental shares (in shares) | 0 | 3,050,000 | 2,907,000 | 2,906,000 | |||||||||||||||||
[1] | (1)Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. | ||||||||||||||||||||
[2] | (2)Due to the net loss during the three months ended December 31, 2017, zero incremental shares are included in the calculation of diluted loss per share because of their antidilutive effect. |
VALUATION AND QUALIFYING ACCO_3
VALUATION AND QUALIFYING ACCOUNTS (Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts for Accounts Receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 1,186 | $ 2,014 | $ 1,729 |
Additions | 2,722 | 998 | 3,500 |
Deductions/ Write offs | (2,351) | (1,826) | (3,215) |
Balance at End of Year | 1,557 | 1,186 | 2,014 |
Valuation Allowance on Deferred Tax Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 924 | 0 | |
Additions | 2,265 | 924 | |
Deductions/ Write offs | 0 | 0 | |
Balance at End of Year | $ 3,189 | $ 924 | $ 0 |