Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35418 | |
Entity Registrant Name | EPAM SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3536104 | |
Entity Address, Street Name | 41 University Drive | |
Entity Address, Suite No. | Suite 202 | |
Entity Address, City or Town | Newtown | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 18940 | |
City Area Code | 267 | |
Local Phone Number | 759-9000 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | EPAM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Central Index Key | 0001352010 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 54,984,738 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 853,241 | $ 770,560 |
Accounts receivable, net of allowance of $1,519 and $1,557, respectively | 339,112 | 297,685 |
Unbilled revenues | 142,949 | 104,652 |
Prepaid expenses and other current assets | 29,390 | 26,171 |
Total current assets | 1,364,692 | 1,199,068 |
Property and equipment, net | 115,321 | 102,646 |
Operating lease right-of-use assets | 207,145 | 0 |
Intangible assets, net | 56,537 | 57,065 |
Goodwill | 186,299 | 166,832 |
Deferred tax assets | 75,071 | 69,983 |
Other noncurrent assets | 35,098 | 16,208 |
Total assets | 2,040,163 | 1,611,802 |
Current liabilities | ||
Accounts payable | 6,896 | 7,444 |
Accrued expenses and other current liabilities | 128,639 | 127,937 |
Due to employees | 63,536 | 49,683 |
Deferred compensation due to employees | 13,427 | 9,920 |
Taxes payable, current | 47,548 | 67,845 |
Operating lease liabilities, current | 51,424 | 0 |
Total current liabilities | 311,470 | 262,829 |
Long-term debt | 25,000 | 25,031 |
Taxes payable, noncurrent | 43,738 | 43,685 |
Operating lease liabilities, noncurrent | 153,980 | 0 |
Other noncurrent liabilities | 13,858 | 17,661 |
Total liabilities | 548,046 | 349,206 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value; 160,000,000 authorized; 54,968,833 and 54,099,927 shares issued, 54,949,098 and 54,080,192 shares outstanding at September 30, 2019 and December 31, 2018, respectively | 55 | 54 |
Additional paid-in capital | 589,764 | 544,700 |
Retained earnings | 946,066 | 759,533 |
Treasury stock | (177) | (177) |
Accumulated other comprehensive loss | (43,591) | (41,514) |
Total stockholders’ equity | 1,492,117 | 1,262,596 |
Total liabilities and stockholders’ equity | $ 2,040,163 | $ 1,611,802 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Accounts receivable allowance | $ 1,519 | $ 1,557 |
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 54,968,833 | 54,099,927 |
Common stock, shares outstanding (in shares) | 54,949,098 | 54,080,192 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 588,103 | $ 468,186 | $ 1,661,023 | $ 1,337,981 |
Operating expenses: | ||||
Cost of revenues (exclusive of depreciation and amortization) | 377,525 | 301,081 | 1,078,129 | 867,890 |
Selling, general and administrative expenses | 118,886 | 93,226 | 332,434 | 276,140 |
Depreciation and amortization expense | 11,127 | 9,319 | 32,355 | 26,457 |
Income from operations | 80,565 | 64,560 | 218,105 | 167,494 |
Interest and other income, net | 2,509 | 1,941 | 6,775 | 2,442 |
Foreign exchange (loss)/gain | (3,105) | (514) | (10,151) | 1,069 |
Income before provision for/(benefit from) income taxes | 79,969 | 65,987 | 214,729 | 171,005 |
Provision for/(benefit from) income taxes | 12,967 | 369 | 28,196 | (9,286) |
Net income | 67,002 | 65,618 | 186,533 | 180,291 |
Foreign currency translation adjustments, net of tax | (10,114) | (2,118) | (4,551) | (14,643) |
Unrealized (loss)/gain on cash-flow hedging instruments, net of tax | (2,163) | (74) | 2,474 | (2,081) |
Comprehensive income | $ 54,725 | $ 63,426 | $ 184,456 | $ 163,567 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.22 | $ 1.22 | $ 3.42 | $ 3.37 |
Diluted (in dollars per share) | $ 1.16 | $ 1.15 | $ 3.24 | $ 3.19 |
Shares used in calculation of net income per share: | ||||
Basic (in shares) | 54,877,666 | 53,851,865 | 54,603,903 | 53,485,339 |
Diluted (in shares) | 57,844,355 | 56,962,867 | 57,567,339 | 56,599,638 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY Statement - USD ($) $ in Thousands | Total | Common Stock | Common StockRestricted Stock Units (RSUs) | Common StockRestricted Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Balance, beginning of period (in shares) at Dec. 31, 2017 | 52,983,685 | |||||||
Balance, beginning of period at Dec. 31, 2017 | $ 974,947 | $ 53 | $ 473,874 | $ 518,820 | $ (17,623) | |||
Treasury stock, beginning of period (in shares) at Dec. 31, 2017 | 19,735 | |||||||
Treasury stock, beginning period at Dec. 31, 2017 | $ (177) | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures [Abstract] | ||||||||
Stock units vested (in shares) | 186,327 | |||||||
Stock units withheld for employee taxes | (6,986) | (6,986) | ||||||
Stock units withheld for employee taxes (in shares) | (61,950) | |||||||
Proceeds from stock options exercises | 7,649 | 7,649 | ||||||
Proceeds from stock options exercises (in shares) | 198,936 | |||||||
Stock-based compensation expense | 11,485 | 11,485 | ||||||
Foreign currency translation adjustments, net of tax | 3,309 | 3,309 | ||||||
Change in unrealized gains and loss on cash-flow hedges, net of tax | 69 | 69 | ||||||
Cumulative effect of the adoption of ASU | ASU 2014-09 | 457 | 457 | ||||||
Net income | 64,418 | 64,418 | ||||||
Balance, end of period (in shares) at Mar. 31, 2018 | 53,306,998 | |||||||
Balance, end of period at Mar. 31, 2018 | 1,055,348 | $ 53 | 486,022 | 583,695 | (14,245) | |||
Treasury stock, end of period (in shares) at Mar. 31, 2018 | 19,735 | |||||||
Treasury stock, end of period at Mar. 31, 2018 | $ (177) | |||||||
Balance, beginning of period (in shares) at Dec. 31, 2017 | 52,983,685 | |||||||
Balance, beginning of period at Dec. 31, 2017 | 974,947 | $ 53 | 473,874 | 518,820 | (17,623) | |||
Treasury stock, beginning of period (in shares) at Dec. 31, 2017 | 19,735 | |||||||
Treasury stock, beginning period at Dec. 31, 2017 | $ (177) | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures [Abstract] | ||||||||
Net income | 180,291 | |||||||
Balance, end of period (in shares) at Sep. 30, 2018 | 53,991,844 | |||||||
Balance, end of period at Sep. 30, 2018 | 1,195,935 | $ 54 | 530,837 | 699,568 | (34,347) | |||
Treasury stock, end of period (in shares) at Sep. 30, 2018 | 19,735 | |||||||
Treasury stock, end of period at Sep. 30, 2018 | $ (177) | |||||||
Balance, beginning of period (in shares) at Mar. 31, 2018 | 53,306,998 | |||||||
Balance, beginning of period at Mar. 31, 2018 | 1,055,348 | $ 53 | 486,022 | 583,695 | (14,245) | |||
Treasury stock, beginning of period (in shares) at Mar. 31, 2018 | 19,735 | |||||||
Treasury stock, beginning period at Mar. 31, 2018 | $ (177) | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures [Abstract] | ||||||||
Stock units vested (in shares) | 12,348 | |||||||
Stock units withheld for employee taxes | (224) | (224) | ||||||
Stock units withheld for employee taxes (in shares) | (1,942) | |||||||
Proceeds from stock options exercises | 14,648 | $ 1 | 14,647 | |||||
Proceeds from stock options exercises (in shares) | 367,863 | |||||||
Stock-based compensation expense | 10,686 | 10,686 | ||||||
Foreign currency translation adjustments, net of tax | (15,834) | (15,834) | ||||||
Change in unrealized gains and loss on cash-flow hedges, net of tax | (2,076) | (2,076) | ||||||
Net income | 50,255 | 50,255 | ||||||
Balance, end of period (in shares) at Jun. 30, 2018 | 53,685,267 | |||||||
Balance, end of period at Jun. 30, 2018 | 1,112,803 | $ 54 | 511,131 | 633,950 | (32,155) | |||
Treasury stock, end of period (in shares) at Jun. 30, 2018 | 19,735 | |||||||
Treasury stock, end of period at Jun. 30, 2018 | $ (177) | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures [Abstract] | ||||||||
Stock units vested (in shares) | 12,694 | |||||||
Stock units withheld for employee taxes | (349) | (349) | ||||||
Stock units withheld for employee taxes (in shares) | (2,683) | |||||||
Proceeds from stock options exercises | 9,561 | 9,561 | ||||||
Proceeds from stock options exercises (in shares) | 296,566 | |||||||
Stock-based compensation expense | 10,494 | 10,494 | ||||||
Foreign currency translation adjustments, net of tax | (2,118) | (2,118) | ||||||
Change in unrealized gains and loss on cash-flow hedges, net of tax | (74) | (74) | ||||||
Net income | 65,618 | 65,618 | ||||||
Balance, end of period (in shares) at Sep. 30, 2018 | 53,991,844 | |||||||
Balance, end of period at Sep. 30, 2018 | $ 1,195,935 | $ 54 | 530,837 | 699,568 | (34,347) | |||
Treasury stock, end of period (in shares) at Sep. 30, 2018 | 19,735 | |||||||
Treasury stock, end of period at Sep. 30, 2018 | $ (177) | |||||||
Balance, beginning of period (in shares) at Dec. 31, 2018 | 54,080,192 | 54,080,192 | ||||||
Balance, beginning of period at Dec. 31, 2018 | $ 1,262,596 | $ 54 | 544,700 | 759,533 | (41,514) | |||
Treasury stock, beginning of period (in shares) at Dec. 31, 2018 | 19,735 | |||||||
Treasury stock, beginning period at Dec. 31, 2018 | $ (177) | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures [Abstract] | ||||||||
Stock units vested (in shares) | 242,414 | |||||||
Stock units withheld for employee taxes | (13,483) | (13,483) | ||||||
Stock units withheld for employee taxes (in shares) | (81,562) | |||||||
Proceeds from stock options exercises | 11,890 | 11,890 | ||||||
Proceeds from stock options exercises (in shares) | 323,464 | |||||||
Stock-based compensation expense | 10,425 | 10,425 | ||||||
Foreign currency translation adjustments, net of tax | 2,943 | 2,943 | ||||||
Change in unrealized gains and loss on cash-flow hedges, net of tax | 3,100 | 3,100 | ||||||
Net income | 60,754 | 60,754 | ||||||
Balance, end of period (in shares) at Mar. 31, 2019 | 54,564,508 | |||||||
Balance, end of period at Mar. 31, 2019 | $ 1,338,225 | $ 54 | 553,532 | 820,287 | (35,471) | |||
Treasury stock, end of period (in shares) at Mar. 31, 2019 | 19,735 | |||||||
Treasury stock, end of period at Mar. 31, 2019 | $ (177) | |||||||
Balance, beginning of period (in shares) at Dec. 31, 2018 | 54,080,192 | 54,080,192 | ||||||
Balance, beginning of period at Dec. 31, 2018 | $ 1,262,596 | $ 54 | 544,700 | 759,533 | (41,514) | |||
Treasury stock, beginning of period (in shares) at Dec. 31, 2018 | 19,735 | |||||||
Treasury stock, beginning period at Dec. 31, 2018 | $ (177) | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures [Abstract] | ||||||||
Net income | $ 186,533 | |||||||
Balance, end of period (in shares) at Sep. 30, 2019 | 54,949,098 | 54,949,098 | ||||||
Balance, end of period at Sep. 30, 2019 | $ 1,492,117 | $ 55 | 589,764 | 946,066 | (43,591) | |||
Treasury stock, end of period (in shares) at Sep. 30, 2019 | 19,735 | |||||||
Treasury stock, end of period at Sep. 30, 2019 | $ (177) | |||||||
Balance, beginning of period (in shares) at Mar. 31, 2019 | 54,564,508 | |||||||
Balance, beginning of period at Mar. 31, 2019 | 1,338,225 | $ 54 | 553,532 | 820,287 | (35,471) | |||
Treasury stock, beginning of period (in shares) at Mar. 31, 2019 | 19,735 | |||||||
Treasury stock, beginning period at Mar. 31, 2019 | $ (177) | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures [Abstract] | ||||||||
Stock units vested (in shares) | 11,757 | |||||||
Stock units withheld for employee taxes | (363) | (363) | ||||||
Stock units withheld for employee taxes (in shares) | (2,084) | |||||||
Proceeds from stock options exercises | 10,584 | $ 1 | 10,583 | |||||
Proceeds from stock options exercises (in shares) | 205,108 | |||||||
Stock-based compensation expense | 10,867 | 10,867 | ||||||
Foreign currency translation adjustments, net of tax | 2,620 | 2,620 | ||||||
Change in unrealized gains and loss on cash-flow hedges, net of tax | 1,537 | 1,537 | ||||||
Net income | 58,777 | 58,777 | ||||||
Balance, end of period (in shares) at Jun. 30, 2019 | 54,779,289 | |||||||
Balance, end of period at Jun. 30, 2019 | 1,422,247 | $ 55 | 574,619 | 879,064 | (31,314) | |||
Treasury stock, end of period (in shares) at Jun. 30, 2019 | 19,735 | |||||||
Treasury stock, end of period at Jun. 30, 2019 | $ (177) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock issued in connection with acquisitions | 18,787 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures [Abstract] | ||||||||
Stock units vested (in shares) | 17,216 | |||||||
Stock units withheld for employee taxes | (1,090) | (1,090) | ||||||
Stock units withheld for employee taxes (in shares) | (5,961) | |||||||
Proceeds from stock options exercises | 6,326 | 6,326 | ||||||
Proceeds from stock options exercises (in shares) | 139,767 | |||||||
Stock-based compensation expense | 9,909 | 9,909 | ||||||
Foreign currency translation adjustments, net of tax | (10,114) | (10,114) | ||||||
Change in unrealized gains and loss on cash-flow hedges, net of tax | (2,163) | (2,163) | ||||||
Net income | $ 67,002 | 67,002 | ||||||
Balance, end of period (in shares) at Sep. 30, 2019 | 54,949,098 | 54,949,098 | ||||||
Balance, end of period at Sep. 30, 2019 | $ 1,492,117 | $ 55 | $ 589,764 | $ 946,066 | $ (43,591) | |||
Treasury stock, end of period (in shares) at Sep. 30, 2019 | 19,735 | |||||||
Treasury stock, end of period at Sep. 30, 2019 | $ (177) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 186,533 | $ 180,291 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 32,355 | 26,457 |
Operating lease right-of-use assets amortization expense | 40,203 | 0 |
Bad debt expense | 133 | 1,765 |
Deferred taxes | (3,105) | (36,372) |
Stock-based compensation expense | 53,024 | 46,736 |
Other | 7,522 | (3,434) |
Changes in assets and liabilities: | ||
Accounts receivable | (40,753) | (16,258) |
Unbilled revenues | (37,080) | (41,544) |
Prepaid expenses and other assets | 237 | (1,765) |
Accounts payable | (1,844) | 1,574 |
Accrued expenses and other liabilities | (3,092) | 9,625 |
Operating lease liabilities | (39,230) | 0 |
Due to employees | (5,627) | 4,009 |
Taxes payable | (26,410) | (1,996) |
Net cash provided by operating activities | 162,866 | 169,088 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (52,295) | (27,465) |
Acquisition of businesses, net of cash acquired (Note 2) | (28,655) | (50,264) |
Other investing activities, net | (6,632) | (104) |
Net cash used in investing activities | (87,582) | (77,833) |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 28,798 | 32,007 |
Payments of withholding taxes related to net share settlements of restricted stock units | (14,521) | (7,068) |
Repayment of debt | (7) | (3,485) |
Acquisition of businesses, contingent consideration | (1,104) | 0 |
Other financing activities, net | (19) | (603) |
Net cash provided by financing activities | 13,147 | 20,851 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5,753) | (8,660) |
Net increase in cash, cash equivalents and restricted cash | 82,678 | 103,446 |
Cash, cash equivalents and restricted cash, beginning of period | 771,711 | 582,855 |
Cash, cash equivalents and restricted cash, end of period | $ 854,389 | $ 686,301 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | $ 853,241 | $ 770,560 |
Total restricted cash | 1,148 | 1,151 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 854,389 | 771,711 |
Prepaid expenses and other current assets | ||
Restricted cash | 14 | 14 |
Other noncurrent assets | ||
Restricted cash | $ 1,134 | $ 1,137 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF 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. The Company’s industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as other emerging industries. The Company is incorporated in Delaware with headquarters in Newtown, PA. Basis of Presentation — The accompanying unaudited condensed consolidated financial statements of EPAM have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP” or “U.S. GAAP”) and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended. The condensed consolidated financial statements include the financial statements of EPAM Systems, Inc. and its subsidiaries with all intercompany balances and transactions eliminated. These unaudited condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2018 included in its Annual Report on Form 10-K. The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates, and such differences may be material to the condensed consolidated financial statements. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire year. In management’s opinion, all adjustments considered necessary for a fair presentation of the accompanying unaudited condensed consolidated financial statements have been included, and all adjustments are of a normal and recurring nature. 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, changes in stockholders’ equity and cash flows. Leases — In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (“Topic 842”). The standard supersedes previously existing lease guidance (Topic 840) and requires entities to recognize all leases, with the exception of leases with a term of twelve months or less, on the balance sheet as right-of-use assets (“RoU Assets”) and lease liabilities. The guidance also changes disclosure requirements with a focus on providing information that will enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The Company adopted Topic 842, effective January 1, 2019, using the optional transition approach, which allows the Company to apply the provisions of the standard at the effective date without adjusting the comparable periods and carry forward disclosures under previously existing guidance for those periods presented within the Company’s financial statements. The Company determines if an arrangement is a lease or contains a lease at inception. The Company performs an assessment and classifies the lease as either an operating lease or a financing lease at the lease commencement date with a right-of-use asset and a lease liability recognized in the statement of financial position under both classifications. The Company does not have finance leases that are material to the Company’s condensed consolidated financial statements. Lease liabilities are initially measured at the present value of lease payments not yet paid. The present value is determined by applying the readily determinable rate implicit in the lease or, if not available, the incremental borrowing rate of the lessee. The Company determines the incremental borrowing rate of the lessee on a lease-by-lease basis by developing an estimated centralized U.S. dollar borrowing rate for a fully collateralized obligation with a term similar to the lease term, and adjusts the rate to reflect the incremental risk associated with the currency in which the lease is denominated. Lease agreements of the Company may include options to extend or terminate the lease and the Company includes such options in the lease term when it is reasonably certain that the Company will exercise that option. RoU Assets are recognized based on the initial measurement of the lease liabilities plus initial direct costs less lease incentives and, according to the guidance for long-lived assets, RoU Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company elected a practical expedient to account for lease and non-lease components together as a single lease component. The Company also elected the short-term lease recognition exemption for all classes of lease assets with an original term of twelve months or less. As part of the transition, the Company elected a package of practical expedients allowing it to carry forward historical accounting for any expired or existing contracts that are or contain lease contracts, including classification of such contracts and initial direct costs associated with them. The adoption of Topic 842 on January 1, 2019 resulted in the recognition of RoU Assets for operating leases of $177,597 and operating lease liabilities of $173,863 . The adoption of Topic 842 did not have a material impact on the condensed consolidated statement of income and comprehensive income, condensed consolidated statement of changes in stockholders’ equity or the condensed consolidated statement of cash flows. See Note 6 “Leases” in the condensed consolidated interim financial statements for additional information regarding leases. 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. 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 and will adopt the standard on January 1, 2020. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2019 | |
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 of cash and committed to making a cash earnout payment with a maximum amount payable of $3,135 , subject to attainment of specified performance targets in the 12 months after the acquisition date. 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 was 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 at closing and committed to making a cash earnout payment with a maximum amount payable of $8,156 , subject to attainment of specified performance targets in the 12 months after the acquisition date. During the three months ended September 30, 2019, the Company received $271 as a true-up payment which reduced the purchase price. test IO — On April 30, 2019 , the Company acquired 100% of the equity interests of a crowdtesting company, test IO GmbH, and its subsidiary (“test IO”). In connection with the test IO acquisition, the Company paid $17,323 of cash. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition and updated for any changes as of September 30, 2019 for each respective acquisition: Continuum Think test IO Cash and cash equivalents $ 2,251 $ 2,344 $ 668 Accounts receivable 6,676 2,259 727 Unbilled revenues 2,463 284 — Prepaid expenses and other current assets 936 609 96 Goodwill 26,617 22,211 12,084 Intangible assets 14,450 6,882 6,219 Property and equipment and other noncurrent assets 8,902 642 154 Total assets acquired $ 62,295 $ 35,231 $ 19,948 Accounts payable, accrued expenses and other current liabilities $ 2,745 $ 2,205 $ 877 Due to employees 1,001 13 42 Long-term debt 3,220 — — Other noncurrent liabilities 490 1,040 1,706 Total liabilities assumed $ 7,456 $ 3,258 $ 2,625 Net assets acquired $ 54,839 $ 31,973 $ 17,323 During 2018, the Company adjusted initially recognized intangible assets acquired with Continuum and their useful lives as well as recognized an additional intangible asset in the form of a favorable lease, removed a noncurrent liability associated with an initially recognized unfavorable lease and revised the initial fair value of contingent consideration. The Company also finalized a working capital adjustment that resulted in cash collection in the amount of $76 reducing the original amount of the net assets acquired. These adjustments resulted in a corresponding decrease to the originally recognized value of acquired goodwill. During the first quarter of 2019, the Company finalized the fair value of the assets acquired and liabilities assumed in the acquisition of Continuum and no additional adjustments were recorded. For the acquisitions of Think and test IO, estimated fair values of the assets acquired and liabilities assumed remain provisional and based on the facts and circumstances that existed as of the acquisition dates. The Company expects to complete the purchase price allocations as soon as practicable but no later than one year from the acquisition dates. During the three months ended September 30, 2019 , the Company recorded purchase price adjustments which reduced the original purchase price for Think by $271 , with a corresponding decrease to the originally recognized value of acquired goodwill. During the three months ended September 30, 2019 , the Company recorded purchase price adjustments which increased the original purchase price for test IO and adjusted related working capital accounts increasing the original amount of the net assets acquired by $119 . In addition for the test IO acquisition, the Company reduced the value of acquired intangible assets by $145 with a corresponding increase to goodwill. The following table presents the estimated fair values and useful lives of intangible assets acquired from Continuum, Think, and test IO as of the date of acquisition and updated for any changes as of September 30, 2019 for each respective acquisition: Continuum Think test IO Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 6.5 $ 5,800 7 $ 6,117 7 $ 2,456 Favorable lease 11.2 5,500 — — — — Software — — — — 6 3,461 Contract royalties 8 1,900 — — — — Trade names 5 1,250 5 765 4 302 Total $ 14,450 $ 6,882 $ 6,219 In connection with the adoption of Topic 842, effective January 1, 2019, the Company reclassified the favorable lease intangible asset to Operating lease right-of-use assets. 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 and test IO acquisitions is not expected to be deductible for income tax purposes. Revenues generated by test IO, acquired on April 30, 2019, totaled $1,692 and $2,606 during the three and nine months ended September 30, 2019 , respectively. Pro forma results of operations have not been presented because the effect of the acquisitions on the Company’s condensed consolidated financial statements was not material individually or in the aggregate. Other 2019 Acquisitions — During the three months ended September 30, 2019, the Company completed three additional acquisitions with an aggregate cash purchase price of $14,080 and committed to making cash earnout payments with a maximum amount payable of $3,000 subject to attainment of specified performance targets in the 12 months and 24 months after the respective acquisition dates. These acquisitions increased EPAM’s educational services and platform offerings and expanded the Company’s geographical reach. Revenues generated by the Other 2019 Acquisitions totaled $3,009 during both the three and nine months ended September 30, 2019 . Pro forma results of operations have not been presented because the effect of the acquisitions on the Company’s condensed consolidated financial statements was not material individually or in the aggregate. |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Goodwill by reportable segment was as follows: North America Europe Russia Total Balance as of January 1, 2019 $ 103,542 $ 63,290 $ — $ 166,832 test IO acquisition 3,310 8,775 — 12,085 Other 2019 acquisitions 6,710 2,028 767 9,505 Think purchase accounting adjustments — (258 ) — (258 ) Effect of net foreign currency exchange rate changes (145 ) (1,714 ) (6 ) (1,865 ) Balance as of September 30, 2019 $ 113,417 $ 72,121 $ 761 $ 186,299 There were no accumulated impairment losses in the North America or Europe reportable segments as of September 30, 2019 or December 31, 2018 . The Russia segment had accumulated goodwill impairment losses of $2,241 as of September 30, 2019 and December 31, 2018 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2019 | |
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 tables present the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018: As of September 30, 2019 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 1,189 $ — $ 1,189 $ — Total assets measured at fair value on a recurring basis $ 1,189 $ — $ 1,189 $ — Foreign exchange derivative liabilities $ 1,291 $ — $ 1,291 $ — Contingent consideration 9,572 — — 9,572 Total liabilities measured at fair value on a recurring basis $ 10,863 $ — $ 1,291 $ 9,572 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 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 5 “Derivative Financial Instruments” in the condensed consolidated interim financial statements for additional information regarding derivative financial instruments. 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. Although there is significant judgment involved, the Company believes its estimates and assumptions are reasonable. In determining fair value, the Company considered a variety of factors, including future performance of the acquired business 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 formula and performance targets specified in the purchase agreement 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. 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. In connection with the Continuum acquisition, the Company committed to making a cash earnout payment subject to attainment of specified performance targets in the 12 months after the acquisition date. As of the acquisition date, the Company recorded a $2,400 contingent consideration liability related to this earnout payment and, subsequently, reduced this liability by $900 during the third quarter of 2018 and $396 during the second quarter of 2019 due to the change in its fair value. The Company extinguished the earnout obligation during the second quarter of 2019 by paying $1,104 in cash. In connection with the Think acquisition, the Company committed to making a cash earnout payment subject to attainment of specified performance targets in the 12 months after the acquisition date. As of the acquisition date, the Company recorded a $5,990 liability related to this earnout payment as contingent consideration and, subsequently, increased this liability by $1,752 during the second quarter of 2019 due to the change in its fair value. In connection with the Other 2019 Acquisitions, the Company committed to making cash earnout payments subject to attainment of specified performance targets in the 12 months and 24 months after the respective acquisition dates. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions. A reconciliation of the beginning and ending balances of Level 3 acquisition-related contractual contingent liabilities using significant unobservable inputs for the nine months ended September 30, 2019 is as follows: Amount Contingent consideration liabilities as of January 1, 2019 $ 7,468 Payment of contingent consideration (1,104 ) Acquisition date fair value of contractual contingent liabilities — Other 2019 Acquisitions (Note 2) 2,100 Changes in fair value of contingent consideration included in Interest and other income, net 1,356 Effect of net foreign currency exchange rate changes (248 ) Contingent consideration liabilities as of September 30, 2019 $ 9,572 Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis 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 generally short maturities of certain assets and liabilities result in a number of assets and liabilities for which fair value equals or closely approximates the amount recorded on the Company’s consolidated balance sheets. The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 September 30, 2019 Financial Assets: Cash and cash equivalents $ 853,241 $ 853,241 $ 853,241 $ — $ — Restricted cash $ 1,148 $ 1,148 $ 1,148 $ — $ — Employee loans $ 2,608 $ 2,608 $ — $ — $ 2,608 Financial Liabilities: Borrowings under the 2017 Credit Facility $ 25,017 $ 25,017 $ — $ 25,017 $ — 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 the 2017 Credit Facility $ 25,020 $ 25,020 $ — $ 25,020 $ — |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, the Company uses derivative financial instruments to manage the risk of fluctuations in foreign currency exchange rates. The Company has a hedging program whereby it enters 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. As of September 30, 2019 , all of the Company’s foreign exchange forward contracts were designated as hedges and 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 September 30, 2019 and December 31, 2018 were as follows: As of September 30, 2019 As of December 31, 2018 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Designated as hedging instruments Prepaid expenses and other current assets $ 1,189 $ 181 Accrued expenses and other current liabilities $ 1,291 $ 3,475 The Company records changes in the fair value of its cash flow hedges in accumulated other comprehensive loss in the consolidated balance sheets 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 related cash flow hedge 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 changes in the fair value of foreign currency derivative instruments in our unaudited condensed consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign exchange forward contracts - Designated as hedging instruments: Change in fair value recognized in accumulated other comprehensive loss $ (2,791 ) $ (86 ) $ 3,192 $ (2,692 ) Net gain/(loss) reclassified from accumulated other comprehensive loss into cost of revenues (exclusive of depreciation and amortization) $ 848 $ (1,604 ) $ 738 $ (2,541 ) Foreign exchange forward contracts - Not designated as hedging instruments: Net gain recognized in foreign exchange (loss)/gain $ — $ — $ — $ 44 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | ny leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the RoU Assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 years to 11.6 years . Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company subleases a portion of its office space to third parties. During the three and nine months ended September 30, 2019 , the components of lease expense were as follows: Income Statement Classification Three Months Ended Nine Months Ended Operating lease cost Selling, general and administrative expenses $ 16,210 $ 45,125 Variable lease cost Selling, general and administrative expenses 2,439 6,535 Short-term lease cost Selling, general and administrative expenses 1,085 2,989 Sublease income Interest and other income, net (664 ) (1,596 ) Total lease cost $ 19,070 $ 53,053 Supplemental cash flow information related to leases was as follows: Three Months Ended Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 14,709 $ 43,510 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 14,251 $ 67,798 Non-cash net increase due to lease modifications: Operating lease right-of-use assets $ 3,233 $ 6,383 Operating lease liabilities $ 3,199 $ 6,451 Weighted average remaining lease term and discount rate as of September 30, 2019 were as follows: As of September 30, 2019 Weighted average remaining lease term, in years: Operating leases 5.9 Weighted average discount rate: Operating leases 3.8 % As of September 30, 2019 , operating lease liabilities will mature as follows: Year ending December 31, Lease Payments 2019 (excluding nine months ended September 30, 2019) $ 15,442 2020 55,258 2021 44,896 2022 28,396 2023 20,915 Thereafter 63,793 Total lease payments 228,700 Less: imputed interest (23,295 ) Total $ 205,405 There were no lease agreements that contained material restrictive covenants or material residual value guarantees as of September 30, 2019 . There were no lease agreements signed with related parties as of September 30, 2019 . As of September 30, 2019 , the Company had committed to payments of $69,683 related to operating lease agreements that had not yet commenced. These operating leases will commence during various dates during 2019 through 2020 with lease terms ranging from 1.2 to 11.6 years . The Company did not have any material finance lease agreements that had not yet commenced. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Revolving Line of Credit — On May 24, 2017, the Company entered into an 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 borrowing capacity 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 equivalent in British pounds sterling, Canadian dollars, euros or 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, and (c) the Daily LIBOR Rate, plus 1.0% . As of September 30, 2019 , 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 September 30, 2019 , 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 3.1 % 3.5 % Irrevocable standby letters of credit $ 295 $ 382 Available borrowing capacity $ 274,705 $ 274,618 Current maximum borrowing capacity $ 300,000 $ 300,000 |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Disaggregation of Revenues The Company’s revenues are sourced from four geographic markets: North America, Europe, CIS and APAC. CIS includes revenues from customers in Belarus, Kazakhstan, Russia and Ukraine. APAC, which stands for Asia Pacific, includes revenues from customers in East Asia, Southeast Asia and Australia. The following tables present the disaggregation of the Company’s revenues by customer location, including a reconciliation of the disaggregated revenues with the reportable segments (Note 13 “Segment Information”) for the periods indicated: Three Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Customer Locations North America $ 349,875 $ 8,484 $ 42 $ 358,401 $ — $ 358,401 Europe 6,756 182,621 23 189,400 (88 ) 189,312 CIS 2,349 53 24,099 26,501 — 26,501 APAC 7 13,965 — 13,972 (83 ) 13,889 Revenues $ 358,987 $ 205,123 $ 24,164 $ 588,274 $ (171 ) $ 588,103 Nine Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Customer Locations North America $ 976,841 $ 32,928 $ 74 $ 1,009,843 $ (2 ) $ 1,009,841 Europe 16,736 523,487 263 540,486 (321 ) 540,165 CIS 6,093 66 63,608 69,767 (1 ) 69,766 APAC 1,045 40,317 — 41,362 (111 ) 41,251 Revenues $ 1,000,715 $ 596,798 $ 63,945 $ 1,661,458 $ (435 ) $ 1,661,023 Three Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Customer Locations North America $ 271,551 $ 12,536 $ 17 $ 284,104 $ (27 ) $ 284,077 Europe 5,408 146,990 3 152,401 (166 ) 152,235 CIS 2,208 142 16,184 18,534 — 18,534 APAC 1,671 11,814 4 13,489 (149 ) 13,340 Revenues $ 280,838 $ 171,482 $ 16,208 $ 468,528 $ (342 ) $ 468,186 Nine Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Customer Locations North America $ 747,894 $ 40,074 $ 46 $ 788,014 $ (40 ) $ 787,974 Europe 11,234 444,468 45 455,747 (623 ) 455,124 CIS 6,300 233 53,192 59,725 — 59,725 APAC 3,709 31,545 91 35,345 (187 ) 35,158 Revenues $ 769,137 $ 516,320 $ 53,374 $ 1,338,831 $ (850 ) $ 1,337,981 The following tables present the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the reportable segments (Note 13 “Segment Information”) for the periods indicated: Three Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Industry Verticals Financial Services $ 50,510 $ 61,189 $ 18,760 $ 130,459 $ (122 ) $ 130,337 Travel & Consumer 51,476 57,780 3,171 112,427 (45 ) 112,382 Software & Hi-Tech 90,880 16,952 552 108,384 — 108,384 Business Information & Media 65,153 40,624 22 105,799 — 105,799 Life Sciences & Healthcare 60,049 6,713 7 66,769 — 66,769 Emerging Verticals 40,919 21,865 1,652 64,436 (4 ) 64,432 Revenues $ 358,987 $ 205,123 $ 24,164 $ 588,274 $ (171 ) $ 588,103 Nine Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Industry Verticals Financial Services $ 132,435 $ 182,143 $ 49,801 $ 364,379 $ (376 ) $ 364,003 Travel & Consumer 146,654 169,157 8,056 323,867 (45 ) 323,822 Software & Hi-Tech 255,601 56,764 1,470 313,835 (2 ) 313,833 Business Information & Media 189,854 108,852 266 298,972 (6 ) 298,966 Life Sciences & Healthcare 164,492 16,176 73 180,741 — 180,741 Emerging Verticals 111,679 63,706 4,279 179,664 (6 ) 179,658 Revenues $ 1,000,715 $ 596,798 $ 63,945 $ 1,661,458 $ (435 ) $ 1,661,023 Three Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Industry Verticals Financial Services $ 30,488 $ 61,713 $ 12,786 $ 104,987 $ (189 ) $ 104,798 Travel & Consumer 45,690 53,634 1,891 101,215 (122 ) 101,093 Software & Hi-Tech 68,572 19,035 569 88,176 — 88,176 Business Information & Media 64,152 17,650 — 81,802 — 81,802 Life Sciences & Healthcare 39,550 5,078 12 44,640 (31 ) 44,609 Emerging Verticals 32,386 14,372 950 47,708 — 47,708 Revenues $ 280,838 $ 171,482 $ 16,208 $ 468,528 $ (342 ) $ 468,186 Nine Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Industry Verticals Financial Services $ 79,176 $ 190,027 $ 43,102 $ 312,305 $ (697 ) $ 311,608 Travel & Consumer 133,481 155,208 5,356 294,045 (122 ) 293,923 Software & Hi-Tech 193,672 59,186 1,957 254,815 — 254,815 Business Information & Media 181,021 54,637 — 235,658 — 235,658 Life Sciences & Healthcare 99,893 15,550 12 115,455 (31 ) 115,424 Emerging Verticals 81,894 41,712 2,947 126,553 — 126,553 Revenues $ 769,137 $ 516,320 $ 53,374 $ 1,338,831 $ (850 ) $ 1,337,981 The following tables present the disaggregation of the Company’s revenues by contract type including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 13 “Segment Information”) for the periods indicated: Three Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Contract Types Time-and-material $ 322,573 $ 171,261 $ 13,815 $ 507,649 $ — $ 507,649 Fixed-price 35,273 33,093 10,304 78,670 — 78,670 Licensing 883 149 9 1,041 — 1,041 Other revenues 258 620 36 914 (171 ) 743 Revenues $ 358,987 $ 205,123 $ 24,164 $ 588,274 $ (171 ) $ 588,103 Nine Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Contract Types Time-and-material $ 907,624 $ 507,055 $ 37,134 $ 1,451,813 $ — $ 1,451,813 Fixed-price 89,694 87,543 26,534 203,771 — 203,771 Licensing 2,343 689 211 3,243 — 3,243 Other revenues 1,054 1,511 66 2,631 (435 ) 2,196 Revenues $ 1,000,715 $ 596,798 $ 63,945 $ 1,661,458 $ (435 ) $ 1,661,023 Three Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Contract Types Time-and-material $ 256,549 $ 155,797 $ 9,441 $ 421,787 $ — $ 421,787 Fixed-price 23,241 15,001 6,759 45,001 — 45,001 Licensing 798 173 1 972 — 972 Other revenues 250 511 7 768 (342 ) 426 Revenues $ 280,838 $ 171,482 $ 16,208 $ 468,528 $ (342 ) $ 468,186 Nine Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Contract Types Time-and-material $ 704,612 $ 471,900 $ 29,302 $ 1,205,814 $ — $ 1,205,814 Fixed-price 61,716 42,035 24,038 127,789 — 127,789 Licensing 2,098 1,119 12 3,229 — 3,229 Other revenues 711 1,266 22 1,999 (850 ) 1,149 Revenues $ 769,137 $ 516,320 $ 53,374 $ 1,338,831 $ (850 ) $ 1,337,981 Timing of Revenue Recognition The following tables present the timing of revenue recognition for the periods indicated: Three Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Timing of Revenue Recognition Transferred at a point of time $ 561 $ 290 $ 54 $ 905 $ (171 ) $ 734 Transferred over time 358,426 204,833 24,110 587,369 — 587,369 Revenues $ 358,987 $ 205,123 $ 24,164 $ 588,274 $ (171 ) $ 588,103 Nine Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Timing of Revenue Recognition Transferred at a point of time $ 1,185 $ 692 $ 55 $ 1,932 $ (435 ) $ 1,497 Transferred over time 999,530 596,106 63,890 1,659,526 — 1,659,526 Revenues $ 1,000,715 $ 596,798 $ 63,945 $ 1,661,458 $ (435 ) $ 1,661,023 Three Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Timing of Revenue Recognition Transferred at a point of time $ 194 $ 289 $ — $ 483 $ (342 ) $ 141 Transferred over time 280,644 171,193 16,208 468,045 — 468,045 Revenues $ 280,838 $ 171,482 $ 16,208 $ 468,528 $ (342 ) $ 468,186 Nine Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Timing of Revenue Recognition Transferred at a point of time $ 832 $ 1,351 $ 10 $ 2,193 $ (850 ) $ 1,343 Transferred over time 768,305 514,969 53,364 1,336,638 — 1,336,638 Revenues $ 769,137 $ 516,320 $ 53,374 $ 1,338,831 $ (850 ) $ 1,337,981 During the three and nine months ended September 30, 2019 the Company recognized $4,915 and $7,039 of revenues, respectively, from performance obligations satisfied in previous periods compared to $3,610 and $6,627 during the three and nine months ended September 30, 2018, respectively. 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 September 30, 2019 . 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 $ 12,226 $ 2,774 $ 140 $ — $ 15,140 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 condensed consolidated balance sheets: As of As of Contract assets included in Unbilled revenues $ 24,870 $ 13,522 Contract liabilities included in Accrued expenses and other current liabilities $ 4,954 $ 4,558 Contract liabilities included in Other noncurrent liabilities $ 1 $ 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 expected less the remaining costs of providing services. Contract assets have increased from December 31, 2018 primarily due to new contracts entered into in the nine months ended September 30, 2019 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. Contract liabilities have increased from December 31, 2018 primarily due to the acquisition of test IO on April 30, 2019. During the three and nine months ended September 30, 2019 , the Company recognized $140 and $3,801 , respectively, of revenues that were included in Accrued expenses and other current liabilities at December 31, 2018. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed consolidated statements of income and comprehensive income for the periods indicated: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenues (exclusive of depreciation and amortization) $ 7,580 $ 7,492 $ 27,841 $ 22,835 Selling, general and administrative expenses 7,891 7,838 25,183 23,901 Total $ 15,471 $ 15,330 $ 53,024 $ 46,736 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 Remaining Contractual Term (in years) Options outstanding at January 1, 2019 4,082,944 $ 44.54 Options granted 131,849 $ 169.13 Options modified 17,871 $ 163.55 Options exercised (668,339 ) $ 43.09 Options forfeited/cancelled (10,701 ) $ 97.83 Options outstanding at September 30, 2019 3,553,624 $ 49.87 $ 470,672 4.9 Options vested and exercisable at September 30, 2019 3,129,141 $ 41.01 $ 442,179 4.5 Options expected to vest at September 30, 2019 397,070 $ 114.20 $ 27,050 8.3 As of September 30, 2019 , $13,619 of total remaining unrecognized stock-based compensation cost related to unvested stock options, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.8 years . Restricted Stock and Restricted Stock Units Service-Based Awards The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the nine months ended September 30, 2019 : Equity-Classified 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 at January 1, 2019 793 $ 63.10 797,903 $ 92.13 302,967 $ 83.99 Awards granted 9,394 $ 167.18 282,628 $ 170.25 55,912 $ 170.12 Awards modified — $ — 6,897 $ 170.74 668 $ 168.36 Awards vested (396 ) $ 63.10 (273,119 ) $ 86.38 (110,012 ) $ 80.34 Awards forfeited/cancelled — $ — (35,004 ) $ 111.93 (4,856 ) $ 94.73 Unvested service-based awards outstanding at September 30, 2019 9,791 $ 162.96 779,305 $ 122.28 244,679 $ 105.33 As of September 30, 2019 , $1,540 of total remaining unrecognized stock-based compensation cost related to service-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 2.9 years . During the third quarter of 2019, in connection with one of the Other 2019 Acquisitions, the Company issued 9,394 shares of service-based restricted stock. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions. As of September 30, 2019 , $70,990 of total remaining unrecognized stock-based compensation cost related to service-based equity-classified restricted stock units (“RSUs”), net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.7 years . During the first nine months of 2019, 21,933 RSUs were granted in connection with acquisition of businesses. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions. As of September 30, 2019 , $28,764 of total remaining unrecognized stock-based compensation cost related to service-based liability-classified cash-settled RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.2 years . During the third quarter of 2019, in connection with one of the Other 2019 Acquisitions, the Company issued 7,280 shares of service-based liability-classified cash-settled RSUs. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions. The liability associated with the service-based liability-classified RSUs as of September 30, 2019 and December 31, 2018 , was $13,427 and $9,920 , respectively, and was classified as Deferred compensation due to employees in the condensed consolidated balance sheets. Performance-Based Awards The table below summarizes activity related to the Company’s equity-classified performance-based awards for the nine months ended September 30, 2019 : Equity-Classified Equity-Settled Restricted Stock Units Equity-Classified Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Weighted Average Grant Date Unvested performance-based awards outstanding at January 1, 2019 29,592 $ 121.75 — $ — Awards granted — $ — 9,393 $ 165.87 Awards modified (29,592 ) $ 121.75 — $ — Unvested performance-based awards outstanding at September 30, 2019 — $ — 9,393 $ 165.87 During the first quarter of 2019, the Company and holders of the unvested performance-based equity-classified RSUs mutually agreed to cancel the performance-based RSU awards and the Company issued service-based stock option and RSU awards with four-year vesting terms to those same recipients. As of September 30, 2019, there is no remaining unrecognized stock-based compensation cost related to performance-based equity-classified RSUs. During the third quarter of 2019, in connection with one of the Other 2019 Acquisitions, the Company issued 9,393 shares of performance-based restricted stock, subject to attainment of specified performance targets in the 12 months and 24 months after the acquisition date. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions. As of September 30, 2019, $1,041 of total remaining unrecognized stock-based compensation cost related to performance-based restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 3.9 years |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In determining its interim provision for/(benefit from) income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual profit before tax, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The Company’s worldwide effective tax rates for the three months ended September 30, 2019 and 2018 were 16.2% and 0.6% , respectively, and 13.1% and (5.4)% during the nine months ended September 30, 2019 and 2018 , respectively. The Company’s effective tax rates benefited from excess tax benefits recorded upon vesting or exercise of stock-based awards of $4,228 and $6,067 during the three months ended September 30, 2019 and 2018 , respectively, and $20,482 and $16,197 during the nine months ended September 30, 2019 and 2018 , respectively. The interim provision for/(benefit from) income taxes in the three months ended September 30, 2018 was unfavorably impacted by the recognition of $252 of net deferred tax liabilities and the interim provision for/(benefit from) income taxes in the nine months ended September 30, 2018 was favorably impacted by the recognition of $25,088 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. In addition, the interim provision for/(benefit from) income taxes in the three and nine months ended September 30, 2018 was favorably impacted by net provisional reductions of $7,053 and $4,896 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
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 shares of common stock outstanding during the period. For purposes of computing basic earnings per share, any nonvested shares of restricted stock that have been issued by the Company and are contingently returnable to the Company are excluded from the weighted-average number of shares of common stock 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. Potentially dilutive securities include outstanding stock options, unvested restricted stock and unvested equity-settled RSUs. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share of common stock as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Numerator for basic and diluted earnings per share: Net income $ 67,002 $ 65,618 $ 186,533 $ 180,291 Numerator for basic and diluted earnings per share $ 67,002 $ 65,618 $ 186,533 $ 180,291 Denominator: Weighted average common shares for basic earnings per share 54,877,666 53,851,865 54,603,903 53,485,339 Net effect of dilutive stock options, restricted stock units and restricted stock awards 2,966,689 3,111,002 2,963,436 3,114,299 Weighted average common shares for diluted earnings per share 57,844,355 56,962,867 57,567,339 56,599,638 Net income per share: Basic $ 1.22 $ 1.22 $ 3.42 $ 3.37 Diluted $ 1.16 $ 1.15 $ 3.24 $ 3.19 The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 143,617 and 112,757 during the three and nine months ended September 30, 2019 , respectively. The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 157,316 and 121,896 during the three and nine months ended September 30, 2018, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | fication 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, infringement of third party intellectual property rights, data privacy violations, and certain tortious conduct in the course of providing services. 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 condensed consolidated 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 or cash flows. Building Acquisition Commitments — During the third quarter of 2019, the Company entered into agreements to purchase office space in Ukraine and Belarus intended to support the delivery centers in those countries. The Belarus agreement is subject to ordinary closing conditions and requires the Company to pay $22,680 in cash including VAT to the sellers, $1,000 of which has been paid as of September 30, 2019 and is classified as Other noncurrent assets in the condensed consolidated balance sheets. The Company completed the acquisition of the Belarus office space on November 1, 2019 . The Ukraine agreement is subject to completion of construction and other ordinary closing conditions and requires the Company to pay approximately $48,900 in cash including VAT to the sellers, $12,000 |
SEGMENTS INFORMATION
SEGMENTS INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
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/(benefit from) 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 for the three and nine months ended September 30, 2019 and 2018 , were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Segment revenues: North America $ 358,987 $ 280,838 $ 1,000,715 $ 769,137 Europe 205,123 171,482 596,798 516,320 Russia 24,164 16,208 63,945 53,374 Total segment revenues $ 588,274 $ 468,528 $ 1,661,458 $ 1,338,831 Segment operating profit: North America $ 79,310 $ 60,763 $ 213,114 $ 155,944 Europe 27,550 28,871 87,014 84,329 Russia 5,524 543 11,765 8,211 Total segment operating profit $ 112,384 $ 90,177 $ 311,893 $ 248,484 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 that accounted for more than 10% of total segment revenues during the three and nine months ended September 30, 2019 and 2018 . Accounts receivable and unbilled revenues are generally dispersed across the Company’s customers in proportion to their revenues. There were no customers individually exceeding 10% of total accounts receivable and unbilled revenues as of September 30, 2019 and December 31, 2018 . Reconciliation of segment revenues to consolidated revenues and segment operating profit to consolidated income before provision for/(benefit from) income taxes is presented below: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Total segment revenues $ 588,274 $ 468,528 $ 1,661,458 $ 1,338,831 Other income included in segment revenues (171 ) (342 ) (435 ) (850 ) Revenues $ 588,103 $ 468,186 $ 1,661,023 $ 1,337,981 Total segment operating profit: $ 112,384 $ 90,177 $ 311,893 $ 248,484 Unallocated amounts: Other income included in segment revenues (171 ) (342 ) (435 ) (850 ) Stock-based compensation expense (15,471 ) (15,330 ) (53,024 ) (46,736 ) Non-corporate taxes (3,960 ) (2,063 ) (8,126 ) (7,041 ) Professional fees (1,502 ) (1,420 ) (3,826 ) (4,736 ) Depreciation and amortization expense (2,585 ) (2,011 ) (7,328 ) (5,754 ) Bank charges (645 ) (782 ) (1,937 ) (1,950 ) One-time charges and other acquisition-related expenses (1,142 ) (155 ) (2,503 ) (2,016 ) Other operating expenses (6,343 ) (3,514 ) (16,609 ) (11,907 ) Income from operations 80,565 64,560 218,105 167,494 Interest and other income, net 2,509 1,941 6,775 2,442 Foreign exchange (loss)/gain (3,105 ) (514 ) (10,151 ) 1,069 Income before provision for/(benefit from) income taxes $ 79,969 $ 65,987 $ 214,729 $ 171,005 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 Belarus $ 48,521 $ 50,085 Ukraine 16,077 8,433 United States 13,934 13,101 Russia 12,514 9,902 India 6,742 7,019 Hungary 3,329 3,168 China 3,132 2,651 Poland 2,900 2,637 Other 8,172 5,650 Total $ 115,321 $ 102,646 The table below presents information about the Company’s revenues by customer location for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended Nine Months Ended 2019 2018 2019 2018 United States $ 340,803 $ 266,065 $ 959,471 $ 736,579 United Kingdom 74,992 50,482 209,773 152,315 Switzerland 38,781 35,524 110,378 105,396 Russia 23,668 15,609 62,020 51,930 Netherlands 22,161 17,031 63,816 51,934 Germany 20,940 20,732 59,716 60,331 Canada 17,582 18,008 50,339 51,391 Other 49,176 44,735 145,510 128,105 Total $ 588,103 $ 468,186 $ 1,661,023 $ 1,337,981 |
BUSINESS AND SUMMARY OF SIGNI_2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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. The Company’s industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as other emerging industries. The Company is incorporated in Delaware with headquarters in Newtown, PA. |
Basis of Presentation | Basis of Presentation — The accompanying unaudited condensed consolidated financial statements of EPAM have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP” or “U.S. GAAP”) and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended. The condensed consolidated financial statements include the financial statements of EPAM Systems, Inc. and its subsidiaries with all intercompany balances and transactions eliminated. These unaudited condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2018 |
Use of Estimates | The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates, and such differences may be material to the condensed consolidated financial statements. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire year. In management’s opinion, all adjustments considered necessary for a fair presentation of the accompanying unaudited condensed consolidated financial statements have been included, and all adjustments are of a normal and recurring nature. |
Adoption of New 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, changes in stockholders’ equity and cash flows. Leases — In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (“Topic 842”). The standard supersedes previously existing lease guidance (Topic 840) and requires entities to recognize all leases, with the exception of leases with a term of twelve months or less, on the balance sheet as right-of-use assets (“RoU Assets”) and lease liabilities. The guidance also changes disclosure requirements with a focus on providing information that will enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The Company adopted Topic 842, effective January 1, 2019, using the optional transition approach, which allows the Company to apply the provisions of the standard at the effective date without adjusting the comparable periods and carry forward disclosures under previously existing guidance for those periods presented within the Company’s financial statements. The Company determines if an arrangement is a lease or contains a lease at inception. The Company performs an assessment and classifies the lease as either an operating lease or a financing lease at the lease commencement date with a right-of-use asset and a lease liability recognized in the statement of financial position under both classifications. The Company does not have finance leases that are material to the Company’s condensed consolidated financial statements. Lease liabilities are initially measured at the present value of lease payments not yet paid. The present value is determined by applying the readily determinable rate implicit in the lease or, if not available, the incremental borrowing rate of the lessee. The Company determines the incremental borrowing rate of the lessee on a lease-by-lease basis by developing an estimated centralized U.S. dollar borrowing rate for a fully collateralized obligation with a term similar to the lease term, and adjusts the rate to reflect the incremental risk associated with the currency in which the lease is denominated. Lease agreements of the Company may include options to extend or terminate the lease and the Company includes such options in the lease term when it is reasonably certain that the Company will exercise that option. RoU Assets are recognized based on the initial measurement of the lease liabilities plus initial direct costs less lease incentives and, according to the guidance for long-lived assets, RoU Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company elected a practical expedient to account for lease and non-lease components together as a single lease component. The Company also elected the short-term lease recognition exemption for all classes of lease assets with an original term of twelve months or less. As part of the transition, the Company elected a package of practical expedients allowing it to carry forward historical accounting for any expired or existing contracts that are or contain lease contracts, including classification of such contracts and initial direct costs associated with them. The adoption of Topic 842 on January 1, 2019 resulted in the recognition of RoU Assets for operating leases of $177,597 and operating lease liabilities of $173,863 . The adoption of Topic 842 did not have a material impact on the condensed consolidated statement of income and comprehensive income, condensed consolidated statement of changes in stockholders’ equity or the condensed consolidated statement of cash flows. See Note 6 “Leases” in the condensed consolidated interim financial statements for additional information regarding leases. 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. 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 and will adopt the standard on January 1, 2020. |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Fair Value of Financial Instruments | The 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 5 “Derivative Financial Instruments” in the condensed consolidated interim financial statements for additional information regarding derivative financial instruments. 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. Although there is significant judgment involved, the Company believes its estimates and assumptions are reasonable. In determining fair value, the Company considered a variety of factors, including future performance of the acquired business 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 formula and performance targets specified in the purchase agreement 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. 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. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Reporting of Cash Flow Hedges | The Company records changes in the fair value of its cash flow hedges in accumulated other comprehensive loss in the consolidated balance sheets 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 related cash flow hedge into income. |
Reporting of Derivative Activity | 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. |
REVENUES (Policies)
REVENUES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [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 expected less the remaining costs of providing services. |
Deferred Revenues | 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. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Fair Values of Net Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition and updated for any changes as of September 30, 2019 for each respective acquisition: Continuum Think test IO Cash and cash equivalents $ 2,251 $ 2,344 $ 668 Accounts receivable 6,676 2,259 727 Unbilled revenues 2,463 284 — Prepaid expenses and other current assets 936 609 96 Goodwill 26,617 22,211 12,084 Intangible assets 14,450 6,882 6,219 Property and equipment and other noncurrent assets 8,902 642 154 Total assets acquired $ 62,295 $ 35,231 $ 19,948 Accounts payable, accrued expenses and other current liabilities $ 2,745 $ 2,205 $ 877 Due to employees 1,001 13 42 Long-term debt 3,220 — — Other noncurrent liabilities 490 1,040 1,706 Total liabilities assumed $ 7,456 $ 3,258 $ 2,625 Net assets acquired $ 54,839 $ 31,973 $ 17,323 |
Fair Values and Useful Lives of Intangible Assets Acquired | The following table presents the estimated fair values and useful lives of intangible assets acquired from Continuum, Think, and test IO as of the date of acquisition and updated for any changes as of September 30, 2019 for each respective acquisition: Continuum Think test IO Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 6.5 $ 5,800 7 $ 6,117 7 $ 2,456 Favorable lease 11.2 5,500 — — — — Software — — — — 6 3,461 Contract royalties 8 1,900 — — — — Trade names 5 1,250 5 765 4 302 Total $ 14,450 $ 6,882 $ 6,219 |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill By Reportable Segment | Goodwill by reportable segment was as follows: North America Europe Russia Total Balance as of January 1, 2019 $ 103,542 $ 63,290 $ — $ 166,832 test IO acquisition 3,310 8,775 — 12,085 Other 2019 acquisitions 6,710 2,028 767 9,505 Think purchase accounting adjustments — (258 ) — (258 ) Effect of net foreign currency exchange rate changes (145 ) (1,714 ) (6 ) (1,865 ) Balance as of September 30, 2019 $ 113,417 $ 72,121 $ 761 $ 186,299 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018: As of September 30, 2019 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 1,189 $ — $ 1,189 $ — Total assets measured at fair value on a recurring basis $ 1,189 $ — $ 1,189 $ — Foreign exchange derivative liabilities $ 1,291 $ — $ 1,291 $ — Contingent consideration 9,572 — — 9,572 Total liabilities measured at fair value on a recurring basis $ 10,863 $ — $ 1,291 $ 9,572 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 |
Acquisition-Related Contractual Contingent Liabilities Roll Forward | A reconciliation of the beginning and ending balances of Level 3 acquisition-related contractual contingent liabilities using significant unobservable inputs for the nine months ended September 30, 2019 is as follows: Amount Contingent consideration liabilities as of January 1, 2019 $ 7,468 Payment of contingent consideration (1,104 ) Acquisition date fair value of contractual contingent liabilities — Other 2019 Acquisitions (Note 2) 2,100 Changes in fair value of contingent consideration included in Interest and other income, net 1,356 Effect of net foreign currency exchange rate changes (248 ) Contingent consideration liabilities as of September 30, 2019 $ 9,572 |
Reported Amounts and Estimated Fair Values of the Financial Assets and Liabilities | The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 September 30, 2019 Financial Assets: Cash and cash equivalents $ 853,241 $ 853,241 $ 853,241 $ — $ — Restricted cash $ 1,148 $ 1,148 $ 1,148 $ — $ — Employee loans $ 2,608 $ 2,608 $ — $ — $ 2,608 Financial Liabilities: Borrowings under the 2017 Credit Facility $ 25,017 $ 25,017 $ — $ 25,017 $ — 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 the 2017 Credit Facility $ 25,020 $ 25,020 $ — $ 25,020 $ — |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 were as follows: As of September 30, 2019 As of December 31, 2018 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Designated as hedging instruments Prepaid expenses and other current assets $ 1,189 $ 181 Accrued expenses and other current liabilities $ 1,291 $ 3,475 |
Changes in the Fair Value of Derivative Instruments | The changes in the fair value of foreign currency derivative instruments in our unaudited condensed consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign exchange forward contracts - Designated as hedging instruments: Change in fair value recognized in accumulated other comprehensive loss $ (2,791 ) $ (86 ) $ 3,192 $ (2,692 ) Net gain/(loss) reclassified from accumulated other comprehensive loss into cost of revenues (exclusive of depreciation and amortization) $ 848 $ (1,604 ) $ 738 $ (2,541 ) Foreign exchange forward contracts - Not designated as hedging instruments: Net gain recognized in foreign exchange (loss)/gain $ — $ — $ — $ 44 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expenses | During the three and nine months ended September 30, 2019 , the components of lease expense were as follows: Income Statement Classification Three Months Ended Nine Months Ended Operating lease cost Selling, general and administrative expenses $ 16,210 $ 45,125 Variable lease cost Selling, general and administrative expenses 2,439 6,535 Short-term lease cost Selling, general and administrative expenses 1,085 2,989 Sublease income Interest and other income, net (664 ) (1,596 ) Total lease cost $ 19,070 $ 53,053 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Three Months Ended Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 14,709 $ 43,510 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 14,251 $ 67,798 Non-cash net increase due to lease modifications: Operating lease right-of-use assets $ 3,233 $ 6,383 Operating lease liabilities $ 3,199 $ 6,451 |
Weighted Average Lease Terms and Discount Rates | Weighted average remaining lease term and discount rate as of September 30, 2019 were as follows: As of September 30, 2019 Weighted average remaining lease term, in years: Operating leases 5.9 Weighted average discount rate: Operating leases 3.8 % |
Maturity of Operating Lease Liabilities | As of September 30, 2019 , operating lease liabilities will mature as follows: Year ending December 31, Lease Payments 2019 (excluding nine months ended September 30, 2019) $ 15,442 2020 55,258 2021 44,896 2022 28,396 2023 20,915 Thereafter 63,793 Total lease payments 228,700 Less: imputed interest (23,295 ) Total $ 205,405 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Outstanding Debt And Borrowing Capacity | 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 3.1 % 3.5 % Irrevocable standby letters of credit $ 295 $ 382 Available borrowing capacity $ 274,705 $ 274,618 Current maximum borrowing capacity $ 300,000 $ 300,000 |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following tables present the disaggregation of the Company’s revenues by customer location, including a reconciliation of the disaggregated revenues with the reportable segments (Note 13 “Segment Information”) for the periods indicated: Three Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Customer Locations North America $ 349,875 $ 8,484 $ 42 $ 358,401 $ — $ 358,401 Europe 6,756 182,621 23 189,400 (88 ) 189,312 CIS 2,349 53 24,099 26,501 — 26,501 APAC 7 13,965 — 13,972 (83 ) 13,889 Revenues $ 358,987 $ 205,123 $ 24,164 $ 588,274 $ (171 ) $ 588,103 Nine Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Customer Locations North America $ 976,841 $ 32,928 $ 74 $ 1,009,843 $ (2 ) $ 1,009,841 Europe 16,736 523,487 263 540,486 (321 ) 540,165 CIS 6,093 66 63,608 69,767 (1 ) 69,766 APAC 1,045 40,317 — 41,362 (111 ) 41,251 Revenues $ 1,000,715 $ 596,798 $ 63,945 $ 1,661,458 $ (435 ) $ 1,661,023 Three Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Customer Locations North America $ 271,551 $ 12,536 $ 17 $ 284,104 $ (27 ) $ 284,077 Europe 5,408 146,990 3 152,401 (166 ) 152,235 CIS 2,208 142 16,184 18,534 — 18,534 APAC 1,671 11,814 4 13,489 (149 ) 13,340 Revenues $ 280,838 $ 171,482 $ 16,208 $ 468,528 $ (342 ) $ 468,186 Nine Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Customer Locations North America $ 747,894 $ 40,074 $ 46 $ 788,014 $ (40 ) $ 787,974 Europe 11,234 444,468 45 455,747 (623 ) 455,124 CIS 6,300 233 53,192 59,725 — 59,725 APAC 3,709 31,545 91 35,345 (187 ) 35,158 Revenues $ 769,137 $ 516,320 $ 53,374 $ 1,338,831 $ (850 ) $ 1,337,981 The following tables present the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the reportable segments (Note 13 “Segment Information”) for the periods indicated: Three Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Industry Verticals Financial Services $ 50,510 $ 61,189 $ 18,760 $ 130,459 $ (122 ) $ 130,337 Travel & Consumer 51,476 57,780 3,171 112,427 (45 ) 112,382 Software & Hi-Tech 90,880 16,952 552 108,384 — 108,384 Business Information & Media 65,153 40,624 22 105,799 — 105,799 Life Sciences & Healthcare 60,049 6,713 7 66,769 — 66,769 Emerging Verticals 40,919 21,865 1,652 64,436 (4 ) 64,432 Revenues $ 358,987 $ 205,123 $ 24,164 $ 588,274 $ (171 ) $ 588,103 Nine Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Industry Verticals Financial Services $ 132,435 $ 182,143 $ 49,801 $ 364,379 $ (376 ) $ 364,003 Travel & Consumer 146,654 169,157 8,056 323,867 (45 ) 323,822 Software & Hi-Tech 255,601 56,764 1,470 313,835 (2 ) 313,833 Business Information & Media 189,854 108,852 266 298,972 (6 ) 298,966 Life Sciences & Healthcare 164,492 16,176 73 180,741 — 180,741 Emerging Verticals 111,679 63,706 4,279 179,664 (6 ) 179,658 Revenues $ 1,000,715 $ 596,798 $ 63,945 $ 1,661,458 $ (435 ) $ 1,661,023 Three Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Industry Verticals Financial Services $ 30,488 $ 61,713 $ 12,786 $ 104,987 $ (189 ) $ 104,798 Travel & Consumer 45,690 53,634 1,891 101,215 (122 ) 101,093 Software & Hi-Tech 68,572 19,035 569 88,176 — 88,176 Business Information & Media 64,152 17,650 — 81,802 — 81,802 Life Sciences & Healthcare 39,550 5,078 12 44,640 (31 ) 44,609 Emerging Verticals 32,386 14,372 950 47,708 — 47,708 Revenues $ 280,838 $ 171,482 $ 16,208 $ 468,528 $ (342 ) $ 468,186 Nine Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Industry Verticals Financial Services $ 79,176 $ 190,027 $ 43,102 $ 312,305 $ (697 ) $ 311,608 Travel & Consumer 133,481 155,208 5,356 294,045 (122 ) 293,923 Software & Hi-Tech 193,672 59,186 1,957 254,815 — 254,815 Business Information & Media 181,021 54,637 — 235,658 — 235,658 Life Sciences & Healthcare 99,893 15,550 12 115,455 (31 ) 115,424 Emerging Verticals 81,894 41,712 2,947 126,553 — 126,553 Revenues $ 769,137 $ 516,320 $ 53,374 $ 1,338,831 $ (850 ) $ 1,337,981 The following tables present the disaggregation of the Company’s revenues by contract type including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 13 “Segment Information”) for the periods indicated: Three Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Contract Types Time-and-material $ 322,573 $ 171,261 $ 13,815 $ 507,649 $ — $ 507,649 Fixed-price 35,273 33,093 10,304 78,670 — 78,670 Licensing 883 149 9 1,041 — 1,041 Other revenues 258 620 36 914 (171 ) 743 Revenues $ 358,987 $ 205,123 $ 24,164 $ 588,274 $ (171 ) $ 588,103 Nine Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Contract Types Time-and-material $ 907,624 $ 507,055 $ 37,134 $ 1,451,813 $ — $ 1,451,813 Fixed-price 89,694 87,543 26,534 203,771 — 203,771 Licensing 2,343 689 211 3,243 — 3,243 Other revenues 1,054 1,511 66 2,631 (435 ) 2,196 Revenues $ 1,000,715 $ 596,798 $ 63,945 $ 1,661,458 $ (435 ) $ 1,661,023 Three Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Contract Types Time-and-material $ 256,549 $ 155,797 $ 9,441 $ 421,787 $ — $ 421,787 Fixed-price 23,241 15,001 6,759 45,001 — 45,001 Licensing 798 173 1 972 — 972 Other revenues 250 511 7 768 (342 ) 426 Revenues $ 280,838 $ 171,482 $ 16,208 $ 468,528 $ (342 ) $ 468,186 Nine Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Contract Types Time-and-material $ 704,612 $ 471,900 $ 29,302 $ 1,205,814 $ — $ 1,205,814 Fixed-price 61,716 42,035 24,038 127,789 — 127,789 Licensing 2,098 1,119 12 3,229 — 3,229 Other revenues 711 1,266 22 1,999 (850 ) 1,149 Revenues $ 769,137 $ 516,320 $ 53,374 $ 1,338,831 $ (850 ) $ 1,337,981 Timing of Revenue Recognition The following tables present the timing of revenue recognition for the periods indicated: Three Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Timing of Revenue Recognition Transferred at a point of time $ 561 $ 290 $ 54 $ 905 $ (171 ) $ 734 Transferred over time 358,426 204,833 24,110 587,369 — 587,369 Revenues $ 358,987 $ 205,123 $ 24,164 $ 588,274 $ (171 ) $ 588,103 Nine Months Ended September 30, 2019 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Timing of Revenue Recognition Transferred at a point of time $ 1,185 $ 692 $ 55 $ 1,932 $ (435 ) $ 1,497 Transferred over time 999,530 596,106 63,890 1,659,526 — 1,659,526 Revenues $ 1,000,715 $ 596,798 $ 63,945 $ 1,661,458 $ (435 ) $ 1,661,023 Three Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Timing of Revenue Recognition Transferred at a point of time $ 194 $ 289 $ — $ 483 $ (342 ) $ 141 Transferred over time 280,644 171,193 16,208 468,045 — 468,045 Revenues $ 280,838 $ 171,482 $ 16,208 $ 468,528 $ (342 ) $ 468,186 Nine Months Ended September 30, 2018 Reportable Segments North America Europe Russia Total Segment Revenues Other Income Included in Segment Revenues Consolidated Revenues Timing of Revenue Recognition Transferred at a point of time $ 832 $ 1,351 $ 10 $ 2,193 $ (850 ) $ 1,343 Transferred over time 768,305 514,969 53,364 1,336,638 — 1,336,638 Revenues $ 769,137 $ 516,320 $ 53,374 $ 1,338,831 $ (850 ) $ 1,337,981 |
Revenue Expected to be Recognized in Future Related to Remaining Performance Obligations | 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 September 30, 2019 . 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 $ 12,226 $ 2,774 $ 140 $ — $ 15,140 |
Contract Balances | The following table provides information on the classification of contract assets and liabilities in the condensed consolidated balance sheets: As of As of Contract assets included in Unbilled revenues $ 24,870 $ 13,522 Contract liabilities included in Accrued expenses and other current liabilities $ 4,954 $ 4,558 Contract liabilities included in Other noncurrent liabilities $ 1 $ 224 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Components of Stock-Based Compensation Expenses | The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed consolidated statements of income and comprehensive income for the periods indicated: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenues (exclusive of depreciation and amortization) $ 7,580 $ 7,492 $ 27,841 $ 22,835 Selling, general and administrative expenses 7,891 7,838 25,183 23,901 Total $ 15,471 $ 15,330 $ 53,024 $ 46,736 |
Stock Options 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 Remaining Contractual Term (in years) Options outstanding at January 1, 2019 4,082,944 $ 44.54 Options granted 131,849 $ 169.13 Options modified 17,871 $ 163.55 Options exercised (668,339 ) $ 43.09 Options forfeited/cancelled (10,701 ) $ 97.83 Options outstanding at September 30, 2019 3,553,624 $ 49.87 $ 470,672 4.9 Options vested and exercisable at September 30, 2019 3,129,141 $ 41.01 $ 442,179 4.5 Options expected to vest at September 30, 2019 397,070 $ 114.20 $ 27,050 8.3 |
Service-based Awards Activity | The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the nine months ended September 30, 2019 : Equity-Classified 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 at January 1, 2019 793 $ 63.10 797,903 $ 92.13 302,967 $ 83.99 Awards granted 9,394 $ 167.18 282,628 $ 170.25 55,912 $ 170.12 Awards modified — $ — 6,897 $ 170.74 668 $ 168.36 Awards vested (396 ) $ 63.10 (273,119 ) $ 86.38 (110,012 ) $ 80.34 Awards forfeited/cancelled — $ — (35,004 ) $ 111.93 (4,856 ) $ 94.73 Unvested service-based awards outstanding at September 30, 2019 9,791 $ 162.96 779,305 $ 122.28 244,679 $ 105.33 |
Performance-based Awards Activity | The table below summarizes activity related to the Company’s equity-classified performance-based awards for the nine months ended September 30, 2019 : Equity-Classified Equity-Settled Restricted Stock Units Equity-Classified Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Weighted Average Grant Date Unvested performance-based awards outstanding at January 1, 2019 29,592 $ 121.75 — $ — Awards granted — $ — 9,393 $ 165.87 Awards modified (29,592 ) $ 121.75 — $ — Unvested performance-based awards outstanding at September 30, 2019 — $ — 9,393 $ 165.87 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Numerator for basic and diluted earnings per share: Net income $ 67,002 $ 65,618 $ 186,533 $ 180,291 Numerator for basic and diluted earnings per share $ 67,002 $ 65,618 $ 186,533 $ 180,291 Denominator: Weighted average common shares for basic earnings per share 54,877,666 53,851,865 54,603,903 53,485,339 Net effect of dilutive stock options, restricted stock units and restricted stock awards 2,966,689 3,111,002 2,963,436 3,114,299 Weighted average common shares for diluted earnings per share 57,844,355 56,962,867 57,567,339 56,599,638 Net income per share: Basic $ 1.22 $ 1.22 $ 3.42 $ 3.37 Diluted $ 1.16 $ 1.15 $ 3.24 $ 3.19 |
SEGMENTS INFORMATION (Tables)
SEGMENTS INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenues from External Customers and Operating Profit, Before Unallocated Expenses | Revenues from external customers and operating profit, before unallocated expenses, by reportable segments for the three and nine months ended September 30, 2019 and 2018 , were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Segment revenues: North America $ 358,987 $ 280,838 $ 1,000,715 $ 769,137 Europe 205,123 171,482 596,798 516,320 Russia 24,164 16,208 63,945 53,374 Total segment revenues $ 588,274 $ 468,528 $ 1,661,458 $ 1,338,831 Segment operating profit: North America $ 79,310 $ 60,763 $ 213,114 $ 155,944 Europe 27,550 28,871 87,014 84,329 Russia 5,524 543 11,765 8,211 Total segment operating profit $ 112,384 $ 90,177 $ 311,893 $ 248,484 |
Reconciliation of Segment Revenues to Consolidated Revenues and Segment Operating Profit to Consolidated Income Before Provision for/(Benefit from) Income Taxes | Reconciliation of segment revenues to consolidated revenues and segment operating profit to consolidated income before provision for/(benefit from) income taxes is presented below: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Total segment revenues $ 588,274 $ 468,528 $ 1,661,458 $ 1,338,831 Other income included in segment revenues (171 ) (342 ) (435 ) (850 ) Revenues $ 588,103 $ 468,186 $ 1,661,023 $ 1,337,981 Total segment operating profit: $ 112,384 $ 90,177 $ 311,893 $ 248,484 Unallocated amounts: Other income included in segment revenues (171 ) (342 ) (435 ) (850 ) Stock-based compensation expense (15,471 ) (15,330 ) (53,024 ) (46,736 ) Non-corporate taxes (3,960 ) (2,063 ) (8,126 ) (7,041 ) Professional fees (1,502 ) (1,420 ) (3,826 ) (4,736 ) Depreciation and amortization expense (2,585 ) (2,011 ) (7,328 ) (5,754 ) Bank charges (645 ) (782 ) (1,937 ) (1,950 ) One-time charges and other acquisition-related expenses (1,142 ) (155 ) (2,503 ) (2,016 ) Other operating expenses (6,343 ) (3,514 ) (16,609 ) (11,907 ) Income from operations 80,565 64,560 218,105 167,494 Interest and other income, net 2,509 1,941 6,775 2,442 Foreign exchange (loss)/gain (3,105 ) (514 ) (10,151 ) 1,069 Income before provision for/(benefit from) income taxes $ 79,969 $ 65,987 $ 214,729 $ 171,005 |
Physical Location and Values of Long-Lived Assets | Physical locations and values of the Company’s long-lived assets are presented below: As of As of Belarus $ 48,521 $ 50,085 Ukraine 16,077 8,433 United States 13,934 13,101 Russia 12,514 9,902 India 6,742 7,019 Hungary 3,329 3,168 China 3,132 2,651 Poland 2,900 2,637 Other 8,172 5,650 Total $ 115,321 $ 102,646 |
Revenues by Customer Location | The table below presents information about the Company’s revenues by customer location for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended Nine Months Ended 2019 2018 2019 2018 United States $ 340,803 $ 266,065 $ 959,471 $ 736,579 United Kingdom 74,992 50,482 209,773 152,315 Switzerland 38,781 35,524 110,378 105,396 Russia 23,668 15,609 62,020 51,930 Netherlands 22,161 17,031 63,816 51,934 Germany 20,940 20,732 59,716 60,331 Canada 17,582 18,008 50,339 51,391 Other 49,176 44,735 145,510 128,105 Total $ 588,103 $ 468,186 $ 1,661,023 $ 1,337,981 |
BUSINESS AND SUMMARY OF SIGNI_3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Leases) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
RoU Asset for operating leases | $ 207,145 | $ 0 | |
Operating lease liabilities | $ 205,405 | ||
Topic 842 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
RoU Asset for operating leases | $ 177,597 | ||
Operating lease liabilities | $ 173,863 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) $ in Thousands | Apr. 30, 2019USD ($) | Nov. 01, 2018USD ($) | Mar. 15, 2018USD ($) | Sep. 30, 2019USD ($) |
Continuum | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Mar. 15, 2018 | |||
Cash consideration | $ 52,515 | |||
Estimated future operating results, period | 12 months | |||
Maximum amount of earnout payable | $ 3,135 | |||
Continuum | Design Consultants | ||||
Business Acquisition [Line Items] | ||||
Numbers of employees acquired | 125 | |||
Think | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Nov. 1, 2018 | |||
Cash consideration | $ 26,254 | |||
Estimated future operating results, period | 12 months | |||
Maximum amount of earnout payable | $ 8,156 | |||
True-up payment | $ (271) | |||
test IO | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Apr. 30, 2019 | |||
Cash consideration | $ 17,323 | |||
Equity interest acquired | 100.00% | |||
Other 2019 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | 14,080 | |||
Maximum amount of earnout payable | $ 3,000 | |||
Other 2019 Acquisitions | Minimum | ||||
Business Acquisition [Line Items] | ||||
Estimated future operating results, period | 12 months | |||
Other 2019 Acquisitions | Maximum | ||||
Business Acquisition [Line Items] | ||||
Estimated future operating results, period | 24 months |
ACQUISITIONS (Fair Values of Ne
ACQUISITIONS (Fair Values of Net Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2018 | Apr. 30, 2019 | Nov. 01, 2018 | Mar. 15, 2018 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Unbilled revenues | $ 142,949 | $ 104,652 | |||
Goodwill | 186,299 | 166,832 | |||
Continuum | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
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 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Accounts payable, accrued expenses and other current liabilities | 2,745 | ||||
Due to employees | 1,001 | ||||
Long-term debt | 3,220 | ||||
Other noncurrent liabilities | 490 | ||||
Total liabilities assumed | 7,456 | ||||
Net assets acquired | $ 54,839 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | |||||
Adjustments recorded to the estimated fair values of the assets acquired and liabilities assumed at the acquisition date | $ 76 | ||||
Think | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Cash and cash equivalents | $ 2,344 | ||||
Accounts receivable | 2,259 | ||||
Unbilled revenues | 284 | ||||
Prepaid and other current assets | 609 | ||||
Goodwill | 22,211 | ||||
Intangible assets | 6,882 | ||||
Property and equipment and other noncurrent assets | 642 | ||||
Total assets acquired | 35,231 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Accounts payable, accrued expenses and other current liabilities | 2,205 | ||||
Due to employees | 13 | ||||
Long-term debt | 0 | ||||
Other noncurrent liabilities | 1,040 | ||||
Total liabilities assumed | 3,258 | ||||
Net assets acquired | $ 31,973 | ||||
test IO | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Cash and cash equivalents | $ 668 | ||||
Accounts receivable | 727 | ||||
Unbilled revenues | 0 | ||||
Prepaid and other current assets | 96 | ||||
Goodwill | 12,084 | ||||
Intangible assets | 6,219 | ||||
Property and equipment and other noncurrent assets | 154 | ||||
Total assets acquired | 19,948 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Accounts payable, accrued expenses and other current liabilities | 877 | ||||
Due to employees | 42 | ||||
Long-term debt | 0 | ||||
Other noncurrent liabilities | 1,706 | ||||
Total liabilities assumed | 2,625 | ||||
Net assets acquired | $ 17,323 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | |||||
Adjustments recorded to the estimated fair values of the assets acquired and liabilities assumed at the acquisition date | 119 | ||||
Adjustment recorded to intangible assets and goodwill | $ (145) |
ACQUISITIONS (Fair Values and U
ACQUISITIONS (Fair Values and Useful Lives of Intangible Assets Acquired) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Continuum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value of intangible assets acquired | $ 14,450 |
Continuum | Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 6 years 6 months |
Estimated fair value of intangible assets acquired | $ 5,800 |
Continuum | Favorable lease | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 11 years 2 months 12 days |
Estimated fair value of intangible assets acquired | $ 5,500 |
Continuum | Software | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value of intangible assets acquired | $ 0 |
Continuum | Contract royalties | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 8 years |
Estimated fair value of intangible assets acquired | $ 1,900 |
Continuum | Trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 5 years |
Estimated fair value of intangible assets acquired | $ 1,250 |
Think | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value of intangible assets acquired | $ 6,882 |
Think | Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 7 years |
Estimated fair value of intangible assets acquired | $ 6,117 |
Think | Favorable lease | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value of intangible assets acquired | 0 |
Think | Software | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value of intangible assets acquired | 0 |
Think | Contract royalties | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value of intangible assets acquired | $ 0 |
Think | Trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 5 years |
Estimated fair value of intangible assets acquired | $ 765 |
test IO | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value of intangible assets acquired | $ 6,219 |
test IO | Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 7 years |
Estimated fair value of intangible assets acquired | $ 2,456 |
test IO | Favorable lease | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value of intangible assets acquired | $ 0 |
test IO | Software | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 6 years |
Estimated fair value of intangible assets acquired | $ 3,461 |
test IO | Contract royalties | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value of intangible assets acquired | $ 0 |
test IO | Trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average useful life | 4 years |
Estimated fair value of intangible assets acquired | $ 302 |
ACQUISITIONS (Income Statement
ACQUISITIONS (Income Statement Effect) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Revenues | $ 588,103 | $ 468,186 | $ 1,661,023 | $ 1,337,981 |
test IO | ||||
Business Acquisition [Line Items] | ||||
Revenues | 1,692 | 2,606 | ||
Other 2019 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Revenues | $ 3,009 | $ 3,009 |
GOODWILL (Goodwill Roll Forward
GOODWILL (Goodwill Roll Forward) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2019 | $ 166,832 |
Effect of net foreign currency exchange rate changes | (1,865) |
Balance as of September 30, 2019 | 186,299 |
test IO | |
Goodwill [Roll Forward] | |
Acquisition | 12,085 |
Other 2019 Acquisitions | |
Goodwill [Roll Forward] | |
Acquisition | 9,505 |
Think | |
Goodwill [Roll Forward] | |
Purchase accounting adjustments | (258) |
North America | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2019 | 103,542 |
Effect of net foreign currency exchange rate changes | (145) |
Balance as of September 30, 2019 | 113,417 |
North America | test IO | |
Goodwill [Roll Forward] | |
Acquisition | 3,310 |
North America | Other 2019 Acquisitions | |
Goodwill [Roll Forward] | |
Acquisition | 6,710 |
North America | Think | |
Goodwill [Roll Forward] | |
Purchase accounting adjustments | 0 |
Europe | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2019 | 63,290 |
Effect of net foreign currency exchange rate changes | (1,714) |
Balance as of September 30, 2019 | 72,121 |
Europe | test IO | |
Goodwill [Roll Forward] | |
Acquisition | 8,775 |
Europe | Other 2019 Acquisitions | |
Goodwill [Roll Forward] | |
Acquisition | 2,028 |
Europe | Think | |
Goodwill [Roll Forward] | |
Purchase accounting adjustments | (258) |
Russia | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2019 | 0 |
Effect of net foreign currency exchange rate changes | (6) |
Balance as of September 30, 2019 | 761 |
Russia | test IO | |
Goodwill [Roll Forward] | |
Acquisition | 0 |
Russia | Other 2019 Acquisitions | |
Goodwill [Roll Forward] | |
Acquisition | 767 |
Russia | Think | |
Goodwill [Roll Forward] | |
Purchase accounting adjustments | $ 0 |
GOODWILL (Goodwill Accumulated
GOODWILL (Goodwill Accumulated Impaitment Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
North America | ||
Goodwill [Line Items] | ||
Accumulated impairment loss | $ 0 | $ 0 |
Europe | ||
Goodwill [Line Items] | ||
Accumulated impairment loss | 0 | 0 |
Russia | ||
Goodwill [Line Items] | ||
Accumulated impairment loss | $ 2,241 | $ 2,241 |
FAIR VALUE MEASUREMENTS (Financ
FAIR VALUE MEASUREMENTS (Financial Assets and Liabilities at Fair Value on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Total assets measured at fair value on a recurring basis | $ 1,189 | $ 181 |
Financial Liabilities: | ||
Contingent consideration | 9,572 | 7,468 |
Total liabilities measured at fair value on a recurring basis | 10,863 | 10,943 |
Foreign exchange contracts | ||
Financial Assets: | ||
Derivative assets | 1,189 | 181 |
Financial Liabilities: | ||
Derivative liabilities | 1,291 | 3,475 |
Level 1 | ||
Financial Assets: | ||
Total assets measured at fair value on a recurring basis | 0 | 0 |
Financial Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Level 1 | Foreign exchange contracts | ||
Financial Assets: | ||
Derivative assets | 0 | 0 |
Financial Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 2 | ||
Financial Assets: | ||
Total assets measured at fair value on a recurring basis | 1,189 | 181 |
Financial Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 1,291 | 3,475 |
Level 2 | Foreign exchange contracts | ||
Financial Assets: | ||
Derivative assets | 1,189 | 181 |
Financial Liabilities: | ||
Derivative liabilities | 1,291 | 3,475 |
Level 3 | ||
Financial Assets: | ||
Total assets measured at fair value on a recurring basis | 0 | 0 |
Financial Liabilities: | ||
Contingent consideration | 9,572 | 7,468 |
Total liabilities measured at fair value on a recurring basis | 9,572 | 7,468 |
Level 3 | Foreign exchange contracts | ||
Financial Assets: | ||
Derivative assets | 0 | 0 |
Financial Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Mar. 15, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Acquisition, Contingent Consideration [Line Items] | |||||||
Cash payment to extinguish the earnout obligation | $ (1,104) | $ 0 | |||||
Continuum | |||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||
Estimated future operating results, period | 12 months | ||||||
Contingent consideration liability | $ 2,400 | ||||||
Contingent consideration liability adjustment | $ (396) | $ (900) | |||||
Cash payment to extinguish the earnout obligation | (1,104) | ||||||
Think | |||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||
Estimated future operating results, period | 12 months | ||||||
Contingent consideration liability | $ 5,990 | ||||||
Contingent consideration liability adjustment | $ 1,752 | ||||||
Minimum | Other 2019 Acquisitions | |||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||
Estimated future operating results, period | 12 months | ||||||
Maximum | Other 2019 Acquisitions | |||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||
Estimated future operating results, period | 24 months |
FAIR VALUE MEASUREMENTS (Acquis
FAIR VALUE MEASUREMENTS (Acquisition-Related Contractual Contingent Liabilities Roll Forward) (Details) - Level 3 $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Contingent consideration liabilities as of January 1, 2019 | $ 7,468 |
Payment of contingent consideration | (1,104) |
Effect of net foreign currency exchange rate changes | (248) |
Contingent consideration liabilities as of September 30, 2019 | 9,572 |
Interest and Other Income, Net | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Changes in the fair value of contingent consideration | 1,356 |
Other 2019 Acquisitions | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Acquisition date fair value of contractual contingent liabilities | $ 2,100 |
FAIR VALUE MEASUREMENTS (Report
FAIR VALUE MEASUREMENTS (Reported Amounts and Estimated Fair Values of the Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Balance | ||
Financial Assets: | ||
Cash and cash equivalents | $ 853,241 | $ 770,560 |
Restricted cash | 1,148 | 1,151 |
Employee loans | 2,608 | 3,525 |
Balance | Revolving credit facility | Credit Facility 2017 | ||
Financial Liabilities: | ||
Borrowings | 25,017 | 25,020 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 853,241 | 770,560 |
Restricted cash | 1,148 | 1,151 |
Employee loans | 2,608 | 3,525 |
Estimated Fair Value | Revolving credit facility | Credit Facility 2017 | ||
Financial Liabilities: | ||
Borrowings | 25,017 | 25,020 |
Estimated Fair Value | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 853,241 | 770,560 |
Restricted cash | 1,148 | 1,151 |
Employee loans | 0 | 0 |
Estimated Fair Value | Level 1 | Revolving credit facility | Credit Facility 2017 | ||
Financial Liabilities: | ||
Borrowings | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Employee loans | 0 | 0 |
Estimated Fair Value | Level 2 | Revolving credit facility | Credit Facility 2017 | ||
Financial Liabilities: | ||
Borrowings | 25,017 | 25,020 |
Estimated Fair Value | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Employee loans | 2,608 | 3,525 |
Estimated Fair Value | Level 3 | Revolving credit facility | Credit Facility 2017 | ||
Financial Liabilities: | ||
Borrowings | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Fair Value of Derivative Instruments) (Details) - Foreign exchange contracts - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Financial collateral (including cash collateral) required to be posted | $ 0 | |
Designated as hedging instruments | Cash Flow Hedging | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1,189 | $ 181 |
Designated as hedging instruments | Cash Flow Hedging | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 1,291 | $ 3,475 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Changes in the Fair Value of Derivative Instruments) (Details) - Foreign exchange contracts - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Designated as hedging instruments | Cash Flow Hedging | Cost of revenues (exclusive of depreciation and amortization) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain/(loss) reclassified | $ 848 | $ (1,604) | $ 738 | $ (2,541) |
Designated as hedging instruments | Cash Flow Hedging | Accumulated other comprehensive loss | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value | (2,791) | (86) | 3,192 | (2,692) |
Not designated as hedging instruments | Foreign exchange loss | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain recognized | $ 0 | $ 0 | $ 0 | $ 44 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Existence of material residual value guarantees | false |
Existence of material restrictive covenants | There were no lease agreements that contained material restrictive covenants |
Existance of lease agreements signed with related parties | There were no lease agreements signed with related parties |
Commitments related to operating lease agreements that have not yet commenced | $ 69,683 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 month 6 days |
Lease term of lease agreements that have not yet commenced | 1 year 2 months 12 days |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 11 years 7 months 6 days |
Lease term of lease agreements that have not yet commenced | 11 years 7 months 6 days |
LEASES (Components of Lease Exp
LEASES (Components of Lease Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease, Cost [Line Items] | ||
Total lease cost | $ 19,070 | $ 53,053 |
Selling, general and administrative expenses | ||
Lease, Cost [Line Items] | ||
Operating lease cost | 16,210 | 45,125 |
Variable lease cost | 2,439 | 6,535 |
Short-term lease cost | 1,085 | 2,989 |
Interest and other income, net | ||
Lease, Cost [Line Items] | ||
Sublease income | $ (664) | $ (1,596) |
LEASES (Supplemental Cash Flow
LEASES (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used for operating leases | $ 14,709 | $ 43,510 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 14,251 | 67,798 |
Non-cash net increase due to lease modifications: | ||
Operating lease right-of-use assets | 3,233 | 6,383 |
Operating lease liabilities | $ 3,199 | $ 6,451 |
LEASES (Weighted Average Lease
LEASES (Weighted Average Lease Terms and Discount Rates) (Details) | Sep. 30, 2019 |
Weighted average remaining lease term, in years: | |
Operating leases | 5 years 10 months 24 days |
Weighted average discount rate: | |
Operating leases | 3.80% |
LEASES (Maturity of Operating L
LEASES (Maturity of Operating Lease Liabilities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (excluding nine months ended September 30, 2019) | $ 15,442 |
2020 | 55,258 |
2021 | 44,896 |
2022 | 28,396 |
2023 | 20,915 |
Thereafter | 63,793 |
Total lease payments | 228,700 |
Less: imputed interest | (23,295) |
Total | $ 205,405 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - Credit Facility 2017 - USD ($) $ in Thousands | May 24, 2017 | Sep. 30, 2019 | Dec. 31, 2018 |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Maturity date | May 24, 2022 | ||
Revolving credit facility | Overnight Bank Funding Rate | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 0.50% | ||
Revolving credit facility | Daily LIBOR Rate | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 1.00% | ||
Revolving credit facility | U.S. 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 | 3.10% | 3.50% | |
Available borrowing capacity | $ 274,705 | $ 274,618 | |
Revolving credit facility | U.S. dollars | Maximum | |||
Debt Instrument [Line Items] | |||
Line of credit, current borrowing capacity | 300,000 | 300,000 | |
Revolving credit facility | Other currencies, excluding U.S. dollars | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 100,000 | ||
Standby letters of credit | |||
Debt Instrument [Line Items] | |||
Irrevocable standby letters of credit | $ 295 | $ 382 |
REVENUES (Disaggregation of Rev
REVENUES (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 588,103 | $ 468,186 | $ 1,661,023 | $ 1,337,981 |
Transferred at a point of time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 734 | 141 | 1,497 | 1,343 |
Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 587,369 | 468,045 | 1,659,526 | 1,336,638 |
Time-and-material | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 507,649 | 421,787 | 1,451,813 | 1,205,814 |
Fixed-price | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 78,670 | 45,001 | 203,771 | 127,789 |
Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,041 | 972 | 3,243 | 3,229 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 743 | 426 | 2,196 | 1,149 |
Financial Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 130,337 | 104,798 | 364,003 | 311,608 |
Travel & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 112,382 | 101,093 | 323,822 | 293,923 |
Software & Hi-Tech | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 108,384 | 88,176 | 313,833 | 254,815 |
Business Information & Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 105,799 | 81,802 | 298,966 | 235,658 |
Life Sciences & Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 66,769 | 44,609 | 180,741 | 115,424 |
Emerging Verticals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 64,432 | 47,708 | 179,658 | 126,553 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 358,401 | 284,077 | 1,009,841 | 787,974 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 189,312 | 152,235 | 540,165 | 455,124 |
CIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 26,501 | 18,534 | 69,766 | 59,725 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,889 | 13,340 | 41,251 | 35,158 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 358,987 | 280,838 | 1,000,715 | 769,137 |
North America | Transferred at a point of time | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 561 | 194 | 1,185 | 832 |
North America | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 358,426 | 280,644 | 999,530 | 768,305 |
North America | Time-and-material | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 322,573 | 256,549 | 907,624 | 704,612 |
North America | Fixed-price | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 35,273 | 23,241 | 89,694 | 61,716 |
North America | Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 883 | 798 | 2,343 | 2,098 |
North America | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 258 | 250 | 1,054 | 711 |
North America | Financial Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 50,510 | 30,488 | 132,435 | 79,176 |
North America | Travel & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 51,476 | 45,690 | 146,654 | 133,481 |
North America | Software & Hi-Tech | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 90,880 | 68,572 | 255,601 | 193,672 |
North America | Business Information & Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 65,153 | 64,152 | 189,854 | 181,021 |
North America | Life Sciences & Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 60,049 | 39,550 | 164,492 | 99,893 |
North America | Emerging Verticals | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 40,919 | 32,386 | 111,679 | 81,894 |
North America | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 349,875 | 271,551 | 976,841 | 747,894 |
North America | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 6,756 | 5,408 | 16,736 | 11,234 |
North America | CIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 2,349 | 2,208 | 6,093 | 6,300 |
North America | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 7 | 1,671 | 1,045 | 3,709 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 205,123 | 171,482 | 596,798 | 516,320 |
Europe | Transferred at a point of time | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 290 | 289 | 692 | 1,351 |
Europe | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 204,833 | 171,193 | 596,106 | 514,969 |
Europe | Time-and-material | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 171,261 | 155,797 | 507,055 | 471,900 |
Europe | Fixed-price | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 33,093 | 15,001 | 87,543 | 42,035 |
Europe | Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 149 | 173 | 689 | 1,119 |
Europe | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 620 | 511 | 1,511 | 1,266 |
Europe | Financial Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 61,189 | 61,713 | 182,143 | 190,027 |
Europe | Travel & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 57,780 | 53,634 | 169,157 | 155,208 |
Europe | Software & Hi-Tech | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 16,952 | 19,035 | 56,764 | 59,186 |
Europe | Business Information & Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 40,624 | 17,650 | 108,852 | 54,637 |
Europe | Life Sciences & Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 6,713 | 5,078 | 16,176 | 15,550 |
Europe | Emerging Verticals | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 21,865 | 14,372 | 63,706 | 41,712 |
Europe | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 8,484 | 12,536 | 32,928 | 40,074 |
Europe | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 182,621 | 146,990 | 523,487 | 444,468 |
Europe | CIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 53 | 142 | 66 | 233 |
Europe | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 13,965 | 11,814 | 40,317 | 31,545 |
Russia | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 24,164 | 16,208 | 63,945 | 53,374 |
Russia | Transferred at a point of time | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 54 | 0 | 55 | 10 |
Russia | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 24,110 | 16,208 | 63,890 | 53,364 |
Russia | Time-and-material | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 13,815 | 9,441 | 37,134 | 29,302 |
Russia | Fixed-price | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 10,304 | 6,759 | 26,534 | 24,038 |
Russia | Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 9 | 1 | 211 | 12 |
Russia | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 36 | 7 | 66 | 22 |
Russia | Financial Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 18,760 | 12,786 | 49,801 | 43,102 |
Russia | Travel & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 3,171 | 1,891 | 8,056 | 5,356 |
Russia | Software & Hi-Tech | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 552 | 569 | 1,470 | 1,957 |
Russia | Business Information & Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 22 | 0 | 266 | 0 |
Russia | Life Sciences & Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 7 | 12 | 73 | 12 |
Russia | Emerging Verticals | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 1,652 | 950 | 4,279 | 2,947 |
Russia | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 42 | 17 | 74 | 46 |
Russia | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 23 | 3 | 263 | 45 |
Russia | CIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 24,099 | 16,184 | 63,608 | 53,192 |
Russia | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 0 | 4 | 0 | 91 |
Total Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 588,274 | 468,528 | 1,661,458 | 1,338,831 |
Total Segments | Transferred at a point of time | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 905 | 483 | 1,932 | 2,193 |
Total Segments | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 587,369 | 468,045 | 1,659,526 | 1,336,638 |
Total Segments | Time-and-material | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 507,649 | 421,787 | 1,451,813 | 1,205,814 |
Total Segments | Fixed-price | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 78,670 | 45,001 | 203,771 | 127,789 |
Total Segments | Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 1,041 | 972 | 3,243 | 3,229 |
Total Segments | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 914 | 768 | 2,631 | 1,999 |
Total Segments | Financial Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 130,459 | 104,987 | 364,379 | 312,305 |
Total Segments | Travel & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 112,427 | 101,215 | 323,867 | 294,045 |
Total Segments | Software & Hi-Tech | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 108,384 | 88,176 | 313,835 | 254,815 |
Total Segments | Business Information & Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 105,799 | 81,802 | 298,972 | 235,658 |
Total Segments | Life Sciences & Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 66,769 | 44,640 | 180,741 | 115,455 |
Total Segments | Emerging Verticals | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 64,436 | 47,708 | 179,664 | 126,553 |
Total Segments | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 358,401 | 284,104 | 1,009,843 | 788,014 |
Total Segments | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 189,400 | 152,401 | 540,486 | 455,747 |
Total Segments | CIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 26,501 | 18,534 | 69,767 | 59,725 |
Total Segments | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | 13,972 | 13,489 | 41,362 | 35,345 |
Other Income Included in Segment Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Segment revenues | (171) | (342) | (435) | (850) |
Other income included in segment revenues | (171) | (342) | (435) | (850) |
Other Income Included in Segment Revenues | Transferred at a point of time | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | (171) | (342) | (435) | (850) |
Other Income Included in Segment Revenues | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | 0 | 0 | 0 | 0 |
Other Income Included in Segment Revenues | Time-and-material | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | 0 | 0 | 0 | 0 |
Other Income Included in Segment Revenues | Fixed-price | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | 0 | 0 | 0 | 0 |
Other Income Included in Segment Revenues | Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | 0 | 0 | 0 | 0 |
Other Income Included in Segment Revenues | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | (171) | (342) | (435) | (850) |
Other Income Included in Segment Revenues | Financial Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | (122) | (189) | (376) | (697) |
Other Income Included in Segment Revenues | Travel & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | (45) | (122) | (45) | (122) |
Other Income Included in Segment Revenues | Software & Hi-Tech | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | 0 | 0 | (2) | 0 |
Other Income Included in Segment Revenues | Business Information & Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | 0 | 0 | (6) | 0 |
Other Income Included in Segment Revenues | Life Sciences & Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | 0 | (31) | 0 | (31) |
Other Income Included in Segment Revenues | Emerging Verticals | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | (4) | 0 | (6) | 0 |
Other Income Included in Segment Revenues | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | 0 | (27) | (2) | (40) |
Other Income Included in Segment Revenues | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | (88) | (166) | (321) | (623) |
Other Income Included in Segment Revenues | CIS | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | 0 | 0 | (1) | 0 |
Other Income Included in Segment Revenues | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income included in segment revenues | $ (83) | $ (149) | $ (111) | $ (187) |
REVENUES (Revenue Expected to b
REVENUES (Revenue Expected to be Recognized in Future Related to Remaining Performance Obligations) (Details) - Fixed-price $ in Thousands | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue related to partially or fully unsatisfied performance obligations | $ 15,140 |
Less than 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue related to partially or fully unsatisfied performance obligations | 12,226 |
1 Year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue related to partially or fully unsatisfied performance obligations | 2,774 |
2 Years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue related to partially or fully unsatisfied performance obligations | 140 |
3 Years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue related to partially or fully unsatisfied performance obligations | $ 0 |
REVENUES (Contract Balances) (D
REVENUES (Contract Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Change in Contract with Customer, Asset and Liability [Abstract] | |||||
Revenues from performance obligations satisfied in previous period | $ 4,915 | $ 3,610 | $ 7,039 | $ 6,627 | |
Change in Contract with Customer, Liability [Abstract] | |||||
Revenue recognized | 140 | 3,801 | |||
Unbilled revenues | 24,870 | 24,870 | $ 13,522 | ||
Accrued expenses and other current liabilities | |||||
Change in Contract with Customer, Liability [Abstract] | |||||
Deferred revenues | 4,954 | 4,954 | 4,558 | ||
Other noncurrent liabilities | |||||
Change in Contract with Customer, Liability [Abstract] | |||||
Deferred revenues | $ 1 | $ 1 | $ 224 |
STOCK-BASED COMPENSATION (Compo
STOCK-BASED COMPENSATION (Components of Stock-Based Compensation Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 15,471 | $ 15,330 | $ 53,024 | $ 46,736 |
Cost of revenues (exclusive of depreciation and amortization) | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 7,580 | 7,492 | 27,841 | 22,835 |
Selling, general and administrative expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 7,891 | $ 7,838 | $ 25,183 | $ 23,901 |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Options Activity) (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019 | |
Number of Options | |
Options outstanding at January 1, 2019 | 4,082,944 |
Options granted | 131,849 |
Options modified | 17,871 |
Options exercised | (668,339) |
Options forfeited/cancelled | (10,701) |
Options outstanding at September 30, 2019 | 3,553,624 |
Options vested and exercisable at September 30, 2019 | 3,129,141 |
Options expected to vest at September 30, 2019 | 397,070 |
Weighted Average Exercise Price | |
Options outstanding at January 1, 2019 | $ 44.54 |
Options granted | 169.13 |
Options modified | 163.55 |
Options exercised | 43.09 |
Options forfeited/cancelled | 97.83 |
Options outstanding at September 30, 2019 | 49.87 |
Options vested and exercisable at September 30, 2019 | 41.01 |
Options expected to vest at September 30, 2019 | $ 114.20 |
Aggregate Intrinsic Value | |
Options outstanding at September 30, 2019 | $ 470,672 |
Options vested and exercisable at September 30, 2019 | 442,179 |
Options expected to vest at September 30, 2019 | $ 27,050 |
Weighted Average Remaining Contractual Term (in years) | |
Options outstanding at September 30, 2019 | 4 years 10 months 24 days |
Options vested and exercisable at September 30, 2019 | 4 years 6 months |
Options expected to vest at September 30, 2019 | 8 years 3 months 18 days |
STOCK-BASED COMPENSATION (Sto_2
STOCK-BASED COMPENSATION (Stock Option Additional Information) (Details) - Employee Stock Option $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 13,619 |
Weighted-average remaining requisite service period | 2 years 9 months 18 days |
STOCK-BASED COMPENSATION (Restr
STOCK-BASED COMPENSATION (Restricted Stock and Restricted Stock Units Activity) (Details) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | ||
Number of Shares | ||
Unvested awards outstanding at January 1, 2019 | 797,903 | |
Awards granted | 282,628 | |
Awards modified | 6,897 | |
Awards vested | (273,119) | |
Awards forfeited/cancelled | (35,004) | |
Unvested awards outstanding at September 30, 2019 | 779,305 | 779,305 |
Weighted Average Grant Date Fair Value Per Share | ||
Unvested awards outstanding at January 1, 2019 | $ 92.13 | |
Awards granted | 170.25 | |
Awards modified | 170.74 | |
Awards vested | 86.38 | |
Awards forfeited/cancelled | 111.93 | |
Unvested awards outstanding at September 30, 2019 | $ 122.28 | $ 122.28 |
Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock | ||
Number of Shares | ||
Unvested awards outstanding at January 1, 2019 | 793 | |
Awards granted | 9,394 | |
Awards modified | 0 | |
Awards vested | (396) | |
Awards forfeited/cancelled | 0 | |
Unvested awards outstanding at September 30, 2019 | 9,791 | 9,791 |
Weighted Average Grant Date Fair Value Per Share | ||
Unvested awards outstanding at January 1, 2019 | $ 63.10 | |
Awards granted | 167.18 | |
Awards modified | 0 | |
Awards vested | 63.10 | |
Awards forfeited/cancelled | 0 | |
Unvested awards outstanding at September 30, 2019 | $ 162.96 | $ 162.96 |
Service Period | Liability Classified Award | Cash-Settled Award | Restricted Stock Units | ||
Number of Shares | ||
Unvested awards outstanding at January 1, 2019 | 302,967 | |
Awards granted | 55,912 | |
Awards modified | 668 | |
Awards vested | (110,012) | |
Awards forfeited/cancelled | (4,856) | |
Unvested awards outstanding at September 30, 2019 | 244,679 | 244,679 |
Weighted Average Grant Date Fair Value Per Share | ||
Unvested awards outstanding at January 1, 2019 | $ 83.99 | |
Awards granted | 170.12 | |
Awards modified | 168.36 | |
Awards vested | 80.34 | |
Awards forfeited/cancelled | 94.73 | |
Unvested awards outstanding at September 30, 2019 | $ 105.33 | $ 105.33 |
Performance Target | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | ||
Number of Shares | ||
Unvested awards outstanding at January 1, 2019 | 29,592 | |
Awards granted | 0 | |
Awards modified | (29,592) | |
Unvested awards outstanding at September 30, 2019 | 0 | 0 |
Weighted Average Grant Date Fair Value Per Share | ||
Unvested awards outstanding at January 1, 2019 | $ 121.75 | |
Awards granted | 0 | |
Awards modified | 121.75 | |
Unvested awards outstanding at September 30, 2019 | $ 0 | $ 0 |
Performance Target | Equity Classified Award | Equity-Settled Award | Restricted Stock | ||
Number of Shares | ||
Unvested awards outstanding at January 1, 2019 | 0 | |
Awards granted | 9,393 | |
Awards modified | 0 | |
Unvested awards outstanding at September 30, 2019 | 9,393 | 9,393 |
Weighted Average Grant Date Fair Value Per Share | ||
Unvested awards outstanding at January 1, 2019 | $ 0 | |
Awards granted | 165.87 | |
Awards modified | 0 | |
Unvested awards outstanding at September 30, 2019 | $ 165.87 | $ 165.87 |
Other 2019 Acquisitions | Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock | ||
Number of Shares | ||
Awards granted | 9,394 | |
Other 2019 Acquisitions | Service Period | Liability Classified Award | Cash-Settled Award | Restricted Stock Units | ||
Number of Shares | ||
Awards granted | 7,280 | |
Other 2019 Acquisitions | Performance Target | Equity Classified Award | Equity-Settled Award | Restricted Stock | ||
Number of Shares | ||
Awards granted | 9,393 | |
2019 Acquisitions | Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | ||
Number of Shares | ||
Awards granted | 21,933 |
STOCK-BASED COMPENSATION (Res_2
STOCK-BASED COMPENSATION (Restricted Stock and Restricted Stock Units Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liability associated with RSUs | $ 13,427 | $ 13,427 | $ 9,920 |
Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | 1,540 | $ 1,540 | |
Weighted-average remaining requisite service period | 2 years 10 months 24 days | ||
Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | 70,990 | $ 70,990 | |
Weighted-average remaining requisite service period | 2 years 8 months 12 days | ||
Service Period | Liability Classified Award | Cash-Settled Award | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | 28,764 | $ 28,764 | |
Weighted-average remaining requisite service period | 2 years 2 months 12 days | ||
Performance Target | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | 1,041 | $ 1,041 | |
Weighted-average remaining requisite service period | 3 years 10 months 24 days | ||
Performance Target | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | 0 | $ 0 | |
Deferred compensation due to employees | Service Period | Liability Classified Award | Cash-Settled Award | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liability associated with RSUs | $ 13,427 | $ 13,427 | $ 9,920 |
Other 2019 Acquisitions | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated future operating results, period | 12 months | ||
Other 2019 Acquisitions | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated future operating results, period | 24 months |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Components and Changes in Income Tax Expense (Benefit) and Respective Balance Sheet Items [Line Items] | ||||
Effective tax rate | 16.20% | 0.60% | 13.10% | (5.40%) |
Excess tax benefit | $ 4,228 | $ 6,067 | $ 20,482 | $ 16,197 |
Net deferred tax asset/(liability) resulting from the change in tax status of foreign subsidiaries | (252) | 25,088 | ||
Tax Cuts and Jobs Act | ||||
Schedule of Components and Changes in Income Tax Expense (Benefit) and Respective Balance Sheet Items [Line Items] | ||||
Provisional income tax expense | $ 7,053 | $ 4,896 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator for basic and diluted earnings per share: | ||||||||
Net income | $ 67,002 | $ 58,777 | $ 60,754 | $ 65,618 | $ 50,255 | $ 64,418 | $ 186,533 | $ 180,291 |
Numerator for basic and diluted earnings per share | $ 67,002 | $ 65,618 | $ 186,533 | $ 180,291 | ||||
Denominator: | ||||||||
Weighted average common shares for basic earnings per share | 54,877,666 | 53,851,865 | 54,603,903 | 53,485,339 | ||||
Net effect of dilutive stock options, restricted stock units and restricted stock awards | 2,966,689 | 3,111,002 | 2,963,436 | 3,114,299 | ||||
Weighted average common shares for diluted earnings per share | 57,844,355 | 56,962,867 | 57,567,339 | 56,599,638 | ||||
Net income per share: | ||||||||
Basic (in dollars per share) | $ 1.22 | $ 1.22 | $ 3.42 | $ 3.37 | ||||
Diluted (in dollars per share) | $ 1.16 | $ 1.15 | $ 3.24 | $ 3.19 | ||||
Anti-dilutive options not included in the calculation (in shares) | 143,617 | 157,316 | 112,757 | 121,896 |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Details) - Office Space Purchase Commitment $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Belarus | |
Other Commitments [Line Items] | |
Total commitment amount | $ 22,680 |
Ukraine | |
Other Commitments [Line Items] | |
Total commitment amount | 48,900 |
Other noncurrent assets | Belarus | |
Other Commitments [Line Items] | |
Amount paid | 1,000 |
Other noncurrent assets | Ukraine | |
Other Commitments [Line Items] | |
Amount paid | $ 12,000 |
SEGMENTS INFORMATION (Revenues
SEGMENTS INFORMATION (Revenues from External Customers and Operating Profit Before Unallocated Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating profit | $ 80,565 | $ 64,560 | $ 218,105 | $ 167,494 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | 358,987 | 280,838 | 1,000,715 | 769,137 |
Operating profit | 79,310 | 60,763 | 213,114 | 155,944 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | 205,123 | 171,482 | 596,798 | 516,320 |
Operating profit | 27,550 | 28,871 | 87,014 | 84,329 |
Russia | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | 24,164 | 16,208 | 63,945 | 53,374 |
Operating profit | 5,524 | 543 | 11,765 | 8,211 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | 588,274 | 468,528 | 1,661,458 | 1,338,831 |
Operating profit | $ 112,384 | $ 90,177 | $ 311,893 | $ 248,484 |
SEGMENTS INFORMATION (Major Cus
SEGMENTS INFORMATION (Major Customers) (Details) - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue, Segment Benchmark [Member] | Operating Segments | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers | 0 | 0 | 0 | 0 | |
Accounts Receivable | Billed Revenues | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers | 0 | 0 | |||
Accounts Receivable | Unbilled Revenues | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers | 0 | 0 |
SEGMENTS INFORMATION (Reconcili
SEGMENTS INFORMATION (Reconciliation of Segment Revenues to Consolidated Revenues and Segment Operating Profit to Consolidated Income Before Provision for/(Benefit from) Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 588,103 | $ 468,186 | $ 1,661,023 | $ 1,337,981 |
Segment Reporting Information [Line Items] | ||||
Income from operations | 80,565 | 64,560 | 218,105 | 167,494 |
Stock-based compensation expense | (53,024) | (46,736) | ||
Depreciation and amortization expense | (11,127) | (9,319) | (32,355) | (26,457) |
Interest and other income, net | 2,509 | 1,941 | 6,775 | 2,442 |
Foreign exchange (loss)/gain | (3,105) | (514) | (10,151) | 1,069 |
Income before provision for income taxes | 79,969 | 65,987 | 214,729 | 171,005 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Segment revenues | 588,274 | 468,528 | 1,661,458 | 1,338,831 |
Segment Reporting Information [Line Items] | ||||
Income from operations | 112,384 | 90,177 | 311,893 | 248,484 |
Unallocated amounts | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Segment revenues | (171) | (342) | (435) | (850) |
Segment Reporting Information [Line Items] | ||||
Other income included in segment revenues | (171) | (342) | (435) | (850) |
Stock-based compensation expense | (15,471) | (15,330) | (53,024) | (46,736) |
Non-corporate taxes | (3,960) | (2,063) | (8,126) | (7,041) |
Professional fees | (1,502) | (1,420) | (3,826) | (4,736) |
Depreciation and amortization expense | (2,585) | (2,011) | (7,328) | (5,754) |
Bank charges | (645) | (782) | (1,937) | (1,950) |
One-time charges and other acquisition-related expenses | (1,142) | (155) | (2,503) | (2,016) |
Other operating expenses | $ (6,343) | $ (3,514) | $ (16,609) | $ (11,907) |
SEGMENTS INFORMATION (Physical
SEGMENTS INFORMATION (Physical Location and Values of Long-Lived Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | $ 115,321 | $ 102,646 |
Belarus | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 48,521 | 50,085 |
Ukraine | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 16,077 | 8,433 |
United States | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 13,934 | 13,101 |
Russia | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 12,514 | 9,902 |
India | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 6,742 | 7,019 |
Hungary | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 3,329 | 3,168 |
China | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 3,132 | 2,651 |
Poland | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 2,900 | 2,637 |
Other | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | $ 8,172 | $ 5,650 |
SEGMENTS INFORMATION (Revenue_2
SEGMENTS INFORMATION (Revenues by Customer Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 588,103 | $ 468,186 | $ 1,661,023 | $ 1,337,981 |
United States | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 340,803 | 266,065 | 959,471 | 736,579 |
United Kingdom | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 74,992 | 50,482 | 209,773 | 152,315 |
Switzerland | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 38,781 | 35,524 | 110,378 | 105,396 |
Russia | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 23,668 | 15,609 | 62,020 | 51,930 |
Netherlands | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 22,161 | 17,031 | 63,816 | 51,934 |
Germany | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 20,940 | 20,732 | 59,716 | 60,331 |
Canada | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 17,582 | 18,008 | 50,339 | 51,391 |
Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 49,176 | $ 44,735 | $ 145,510 | $ 128,105 |