Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
Document and Entity Information | |
Entity Registrant Name | Cotiviti Holdings, Inc. |
Entity Central Index Key | 1,657,197 |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2016 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | No |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 90,170,462 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 45,703 | $ 149,365 |
Restricted cash | 7,566 | 10,741 |
Accounts receivable, net of allowance for doubtful accounts of $761 and $1,053 at June 30, 2016 and December 31, 2015, respectively; and net of estimated allowance for refunds and appeals of $45,495 and $33,406 at June 30, 2016 and December 31, 2015, respectively | 74,674 | 78,856 |
Prepaid Expense and Other Assets, Current | 13,237 | 24,044 |
Deferred Tax Assets, Net, Current | 38,233 | 32,919 |
Total current assets | 179,413 | 295,925 |
Property and equipment, net | 60,703 | 57,452 |
Goodwill | 1,196,585 | 1,197,044 |
Intangible assets, net | 563,863 | 594,410 |
Other long-term assets | 2,864 | 2,176 |
TOTAL ASSETS | 2,003,428 | 2,147,007 |
Current liabilities: | ||
Current maturities of long-term debt | 8,100 | 21,099 |
Customer deposits | 7,566 | 10,741 |
Accounts payable and accrued other expenses | 30,223 | 29,521 |
Accrued compensation costs | 37,775 | 42,902 |
Estimated liability for refunds and appeals | 70,574 | 67,775 |
Total current liabilities | 154,238 | 172,038 |
Long-term liabilities: | ||
Long-term debt | 795,563 | 1,012,971 |
Other long-term liabilities | 9,628 | 12,199 |
Deferred tax liabilities | 157,176 | 162,203 |
Total long-term liabilities | 962,367 | 1,187,373 |
Total liabilities | 1,116,605 | 1,359,411 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock ($0.001 par value; 600,000,000 and 122,000,000 shares authorized, 90,177,862 and 77,237,711 issued, and 90,170,462 and 77,230,311 outstanding at June 30, 2016 and December 31, 2015, respectively) | 90 | 77 |
Additional paid-in capital | 888,893 | 807,419 |
Retained earnings (deficit) | 4,042 | (14,935) |
Accumulated other comprehensive loss | (6,104) | (4,867) |
Treasury stock, at cost (7,400 shares at June 30, 2016 and December 31, 2015) | (98) | (98) |
Total stockholders' equity | 886,823 | 787,596 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,003,428 | $ 2,147,007 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets | ||
Allowance for doubtful accounts | $ 761 | $ 1,053 |
Estimated allowance for refunds and appeals | $ 45,495 | $ 33,406 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 600,000,000 | 122,000,000 |
Common stock, shares issued | 90,177,862 | 77,237,711 |
Common stock, shares outstanding | 90,170,462 | 77,230,311 |
Treasury stock, shares | 7,400 | 7,400 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Statements of Comprehensive Income | ||||
Net revenue | $ 158,291 | $ 133,306 | $ 301,009 | $ 252,944 |
Cost of revenue (exclusive of depreciation and amortization, stated separately below): | ||||
Compensation | 55,285 | 44,528 | 108,746 | 86,504 |
Other costs of revenue | 5,275 | 4,621 | 10,673 | 8,983 |
Total cost of revenue | 60,560 | 49,149 | 119,419 | 95,487 |
Selling, general and administrative expenses (exclusive of depreciation and amortization, stated separately below): | ||||
Compensation | 23,176 | 17,443 | 42,286 | 35,589 |
Other selling, general and administrative expenses | 14,945 | 14,756 | 30,174 | 28,072 |
Total selling, general and administrative expenses | 38,121 | 32,199 | 72,460 | 63,661 |
Depreciation and amortization of property and equipment | 4,811 | 2,775 | 9,646 | 5,497 |
Amortization of intangible assets | 15,208 | 15,410 | 30,415 | 30,819 |
Transaction-related expenses | 653 | 893 | ||
Total operating expenses | 119,353 | 99,533 | 232,833 | 195,464 |
Operating income | 38,938 | 33,773 | 68,176 | 57,480 |
Other expense (income): | ||||
Interest expense | 14,660 | 16,753 | 30,720 | 33,675 |
Loss on extinguishment of debt | 7,068 | 4,084 | 7,068 | 4,084 |
Other non-operating (income) expense | (359) | (21) | (658) | (197) |
Total other expense (income) | 21,369 | 20,816 | 37,130 | 37,562 |
Income from continuing operations before income taxes | 17,569 | 12,957 | 31,046 | 19,918 |
Income Tax Expense (Benefit) | 6,676 | 5,177 | 12,069 | 8,503 |
Income from continuing operations | 10,893 | 7,780 | 18,977 | 11,415 |
Gain on discontinued operations, net of tax | 559 | |||
Net income | 10,893 | 7,780 | 18,977 | 11,974 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (645) | 905 | (671) | (239) |
Change in fair value of derivative instruments (net of related taxes of $160 and $208 for the three months ended June 30, 2016 and 2015, respectively and $453 and $519 for the six months ended June 30, 2016 and 2015, respectively) | (84) | (494) | (566) | (1,568) |
Total other comprehensive (loss) income | (729) | 411 | (1,237) | (1,807) |
Comprehensive income | $ 10,164 | $ 8,191 | $ 17,740 | $ 10,167 |
Earnings per share from continuing operations: | ||||
Basic (in dollars per share) | $ 0.13 | $ 0.10 | $ 0.24 | $ 0.15 |
Diluted (in dollars per share) | 0.13 | 0.10 | 0.24 | 0.14 |
Earnings per share from discontinued operations: | ||||
Basic (in dollars per share) | 0.01 | |||
Diluted (in dollars per share) | 0.01 | |||
Total earnings per share: | ||||
Basic (in dollars per share) | 0.13 | 0.10 | 0.24 | 0.16 |
Diluted (in dollars per share) | $ 0.13 | $ 0.10 | $ 0.24 | $ 0.15 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other comprehensive income (loss), tax: | ||||
Change in fair value of derivative instruments, related taxes | $ 160 | $ 208 | $ 453 | $ 519 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 18,977 | $ 11,974 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes | (9,797) | (2,171) |
Depreciation and amortization | 40,061 | 36,316 |
Stock-based compensation expense | 4,502 | 1,219 |
Amortization of debt issuance costs | 2,675 | 2,878 |
Accretion of asset retirement obligations | 92 | 76 |
Loss on extinguishment of debt | 7,068 | 4,084 |
Gain on discontinued operations | (900) | |
Changes in operating assets and liabilities: | ||
Restricted cash | 3,176 | 10,298 |
Accounts receivable | 4,182 | (7,358) |
Other current assets | 9,625 | (249) |
Other long-term assets | (688) | 894 |
Customer deposits | (3,176) | (10,298) |
Accrued compensation | (5,127) | (10,594) |
Accounts payable and accrued other expenses | (1,295) | (18,897) |
Estimated liability for refunds and appeals | 2,799 | (4,296) |
Other long-term liabilities | 98 | (156) |
Other | (598) | 24 |
Net cash provided by operating activities | 72,574 | 12,844 |
Cash flows from investing activities: | ||
Expenditures for property and equipment | (14,019) | (6,324) |
Other investing activities | 1,181 | 406 |
Net cash provided by operating activities | (12,838) | (5,918) |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock | 226,929 | |
Proceeds from exercise of stock options | 56 | |
Dividends paid | (150,000) | |
Payment of debt issuance costs | (1,086) | |
Repayment of debt | (240,150) | (4,050) |
Net cash used in financing activities | (163,165) | (5,136) |
Effect of foreign exchanges on cash and cash equivalents | (233) | (124) |
Net (decrease) increase in cash and cash equivalents | (103,662) | 1,666 |
Cash and cash equivalents at beginning of period | 149,365 | 118,612 |
Cash and cash equivalents at end of the period | 45,703 | 120,278 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 11,268 | 29,435 |
Cash paid for interest | 27,795 | 30,733 |
Noncash investing activities (accrued property and equipment purchases) | $ 11,779 | $ 1,398 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Note 1. Description of Business Cotiviti Holdings, Inc. (collectively with its subsidiaries, “we,” “our,” “Cotiviti” or the “Company”) is a leading provider of analytics ‑driven payment accuracy solutions, focused primarily on the healthcare sector. Our integrated solutions help clients enhance payment accuracy in an increasingly complex healthcare environment. We leverage our robust technology platform, configurable analytics, proprietary information assets and expertise in healthcare reimbursement to help our clients enhance their claims payment accuracy. We help our healthcare clients identify and correct payment inaccuracies. We work with approximately 40 healthcare organizations, including eight of the ten largest U.S. commercial, Medicaid and Medicare managed health plans, as well as the Centers for Medicare and Medicaid Services (“CMS”). We are also a leading provider of payment accuracy solutions to approximately 40 retail clients, including eight of the ten largest retailers in the United States. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation Our accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). All significant intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements are unaudited and have been prepared by us following the rules and regulations of the U.S. Securities and Exchange Commission. In our opinion they reflect all adjustments, including normal recurring items, that are necessary to present fairly the results of interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by such rules and regulations; however, we believe that the disclosures are adequate to make the information presented not misleading. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for other interim periods or the entire fiscal year. Certain prior year amounts have been reclassified to conform to the current year presentation. Revenue Recognition, Unbilled Receivables and Estimated Liability for Refunds and Appeals We provide services under contracts that contain various fee structures, including performance fee ‑based contracts and fixed fee arrangements. Revenue is recognized when a contract exists, services have been provided to the client, the fee is fixed and determinable and collectability is reasonably assured. We recognize revenue on performance fee based contracts based upon the specific terms of the underlying contract. The contract terms generally specify: (a) time periods covered by the work to be performed; (b) nature and extent of services we are to provide; (c) the client’s duties in assisting and cooperating with us; and (d) fees payable to us. Our fees are most often expressed as a percentage of our findings. Generally, our services are rendered when our clients realize the economic benefits from our services. Our clients realize economic benefits when they take credits against their existing accounts payable based on when we identify cost savings, when they receive refund checks based on overpayments, or when they acknowledge payment reductions based on cost savings. We derive a relatively small portion of revenue on contracts with fixed ‑fee arrangements. We recognize revenue on these contracts ratably over the contract term and once all of the above criteria have been satisfied. Historically, there has been a certain amount of revenue with respect to which, even though we had met the requirements of our revenue recognition policy, the claim is ultimately rejected. In such cases, our clients may request a refund or offset if their providers or vendors ultimately reject the payment inaccuracies we find or if our clients determine not to pursue reimbursement from their providers or vendors even though we may have collected fees. We record any such refund as a reduction of revenue. We record an estimate for refund liabilities at any given time based on actual historical refund data by client type. We satisfy such refund liabilities either by offsets to accounts receivable or by cash payments to clients. In addition to the refund liabilities, we calculate client specific reserves when we determine an additional reserve may be necessary. The estimated liability for refunds and appeals representing our estimate of claims that may be overturned related to revenue which had already been received was $70,574 and $67,775 at June 30, 2016 and December 31, 2015 , respectively. The estimated allowance for refunds and appeals representing our estimate of claims that may be overturned related to amounts in accounts receivable was $45,495 and $33,406 at June 30, 2016 and December 31, 2015 , respectively. Under the Medicare Recovery Audit Program, in which we are one of the four Recovery Audit Contractors (“Medicare RAC”) for CMS, healthcare providers have the right to appeal a claim and may pursue additional appeals if the initial appeal is found in favor of CMS. We accrue an estimated liability for appeals based on the amount of fees that are subject to appeals, closures or other adjustments and those which we estimate are probable of being returned to CMS following a successful appeal by the providers. Our estimates are based on our historical experience with the Medicare RAC appeal process. This estimated liability for Medicare RAC appeals is an offset to revenue in our Consolidated Statements of Comprehensive Income. The liability is included in the estimated liability for refunds and appeals on our Consolidated Balance Sheets. See Note 6 for further information regarding the estimated liability for appeals related to the Medicare RAC program. Unbilled receivables represent revenue recognized related to claims for which clients have received economic value that were not invoiced at the balance sheet date. Unbilled receivables were approximately $50,083 and $51,799 as of June 30, 2016 and December 31, 2015 , respectively and are included in accounts receivable on our Consolidated Balance Sheets. Certain unbilled receivables arise when a portion of our earned fee is deferred at the time of the initial invoice. At a later date (which can be up to a year after original invoice, and at other times during the year after completion of the audit period based on contractual terms or as agreed with our client), we invoice the unbilled receivable amount. Notwithstanding the deferred due date, our clients acknowledge we have earned this unbilled receivable at the time of the original invoice, but we have agreed to defer billing the client for the related services. Unbilled receivables of this nature were approximately $5,800 and $6,431 as of June 30, 2016 and December 31, 2015 , respectively, and are included in accounts receivable on our Consolidated Balance Sheets. We record periodic changes in unbilled receivables and refund liabilities as adjustments to revenue. Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) which simplifies several aspects of the accounting for share based compensation. ASU 2016-09 changes several aspects of the accounting for share based payment award transactions, including 1) accounting for income taxes, 2) classification of excess tax benefits on the statement of cash flows, 3) forfeitures, 4) minimum statutory tax withholding requirements and 5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. The guidance is effective for public companies with annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. We are evaluating this new guidance and its impact on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”) which changes the accounting recognition, measurement and disclosure for leases in order to increase transparency. ASU 2016-02 requires lease assets and liabilities to be recognized on the balance sheet and key information about leasing arrangements to be disclosed. The guidance is effective for public companies with annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are evaluating this new guidance and its impact on our consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) which changes the current financial instruments model primarily impacting the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance is effective for public companies with annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are evaluating this new guidance and do not believe it will have a material impact on our consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015 ‑17, Balance Sheet Classification of Deferred Taxes , (“ASU 2015 ‑17”) which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The guidance is effective for public companies with annual and interim periods beginning after December 15, 2016. Early adoption is permitted. We are evaluating this new guidance and its impact on our consolidated balance sheets and related disclosures and expect the adoption of this ASU will reduce our total current assets and net working capital. In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”) which established guidance regarding the accounting for software licenses. ASU 2015-05 is effective for annual reporting periods, including interim periods, beginning after December 15, 2015. We prospectively adopted the provisions of ASU 2015-05 as of January 1, 2016 and have not yet had any material contracts that were impacted by this new guidance. In April 2015, the FASB issued ASU 2015 ‑03, Simplifying the Presentation of Debt and Issuance Costs (“ASU 2015 ‑03”) which establishes guidance to simplify the presentation of debt issuance costs by requiring debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that liability, consistent with debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as an asset in the balance sheet. The guidance is effective for annual reporting periods beginning after December 15, 2015, and interim periods within that reporting period. We adopted the provisions of ASU 2015-03 as of January 1, 2016 and prior period amounts have been reclassified to conform to the current period presentation. As of June 30, 2016 and December 31, 2015, $13,658 and $20,975 of debt issuance costs, respectively, were reclassified in the consolidated balance sheet from debt issuance costs, net to long-term debt . The adoption of ASU 2015-03 did not materially impact our consolidated financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014 ‑09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014 ‑09”) which supersedes existing revenue recognition guidance and provides clarification of principles for recognizing revenue from contracts with customers. The guidance is effective for public companies with annual periods beginning after December 15, 2017 and interim periods within that reporting period. We are evaluating this new guidance, the method of adoption we will take and the impact, if any, on our consolidated financial statements and related disclosures. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
Property and Equipment | |
Property and Equipment | Note 3. Property and Equipment Property and equipment by major asset class for the periods presented consisted of the following: June 30, December 31, 2016 2015 Computer equipment $ $ Software Furniture and fixtures Leasehold improvements Projects in progress Property and equipment, gross $ $ Less: Accumulated depreciation and amortization Property and equipment, net $ $ In December 2015, we purchased a perpetual software license, which is included in the software total above. We will pay for this software over the next two years. As such there is approximately $3,286 included in accounts payable and accrued other expenses and $3,161 included in other long-term liabilities on our Consolidated Balance Sheets as of June 30, 2016 . The amount included in other long-term liabilities represents the present value of payments that will ultimately be made. Total depreciation and amortization expense related to property and equipment, including capitalized software costs, was $4,811 and $2,775 for the three months ended June 30, 2016 and 2015 , respectively and $9,646 and $5,497 for the six months ended June 30, 2016 and 2015 , respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Intangible Assets | |
Intangible Assets | Note 4. Intangible Assets Intangible asset balances by major asset class for the periods presented were as follows: Weighted Gross Net Average Carrying Accumulated Carrying Amortization Amount Amortization Impairment Amount Period June 30, 2016: Customer relationships $ $ $ — $ years Acquired software — years Connolly trademark — — indefinite-lived Total $ $ $ — $ years December 31, 2015: Customer relationships $ $ $ — $ years Acquired software — years Connolly trademark — indefinite-lived iHealth trademark — years Total $ $ $ $ years Amortization expense was $15,208 and $15,410 for the three months ended June 30, 2016 and 2015 , respectively and $30,415 and $30,819 for the six months ended June 30, 2016 and 2015 , respectively. As of June 30, 2016 amortization expense for the next 5 years is expected to be: Remainder of 2016 $ 2017 2018 2019 2020 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill | |
Goodwill | Note 5. Goodwill Total goodwill in our Consolidated Balance Sheets was $1,196,585 and $1,197,044 as of June 30, 2016 and December 31, 2015 , respectively. Changes in the carrying amount of goodwill by our Healthcare and Global Retail and Other segments for the six months ended June 30, 2016 were as follows: Global Retail Healthcare and Other December 31, 2015 $ $ Foreign currency translation and other — June 30, 2016 $ $ There was no impairment related to goodwill for any period presented. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 6. Commitments and Contingencies Legal and Other Matters We may be involved in various legal proceedings and litigation arising in the ordinary course of business. While any legal proceeding or litigation has an element of uncertainty, management believes the ultimate disposition of these matters will not have a material adverse effect on our consolidated financial position, results of operations, or liquidity. Medicare RAC Contract Contingency In August 2014, CMS announced it would allow providers to remove all eligible claims currently pending in the appeals process by offering to pay hospitals 68% of the original claim amount. This settlement was offered to the providers and it was unknown what, if any, impact there would be for the Medicare RACs. On July 1, 2015, CMS issued a Technical Direction Letter to the Medicare RACs, including ourselves, indicating that Medicare RACs will only be entitled to the contract contingency fee on the settled amounts of the claims, or 32% of the original inpatient claim amounts. Based on the initial lists of finalized settlements provided by CMS, we would be required to refund CMS approximately $22,308 due to the related adjustments in Medicare RAC contingency fees. CMS further advised that as the hospital settlement project continues, additional settlement lists will be matched to Medicare RAC claims which may result in updated refund amounts to those initially provided. While there are uncertainties in any dispute resolution and results are uncertain, we have disputed CMS’s findings based on our interpretation of the terms of the Medicare RAC contract and our belief that the backup data provided by CMS is inaccurate and/or incomplete. Our liability for estimated refunds and appeals includes amounts for these settled claims based on our best estimates of the amount we believe will be ultimately payable to CMS based on our interpretation of the terms of the Medicare RAC contract. We believe that it is possible that we could be required to pay an additional amount up to approximately $12,500 in excess of the amount we accrued as of June 30, 2016 based on the claims data we have received from CMS to date. As CMS completes its settlement process with the providers and updated files are provided to us, the potential amount owed by us may change. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Long-term Debt | |
Long-term Debt | Note 7. Long ‑term Debt In June 2016, we repaid $223,000 in outstanding principal under our Second Lien Credit Facility using proceeds from our Initial Public Offering (“IPO”). We also made a voluntary prepayment of $13,100 of outstanding principal under the Second Lien Credit Facility. As a result of these repayments, we recognized a loss on extinguishment of debt totaling $7,068 during the three and six months ended June 30, 2016, which is included on our Consolidated Statements of Comprehensive Income . In May 2015, in order to benefit from favorable market conditions, we entered into and executed the First and Second Amendments to the May 2014 First Lien, which, among other things, provide for lower applicable interest rates associated with the May 2014 First Lien by 50 basis points. As a result, we recorded a loss on extinguishment of debt of $4,084 during the three months ended June 30, 2015, which is included on our Consolidated Statements of Comprehensive Income. Long ‑term debt for the periods presented was as follows: June 30, December 31, 2016 2015 May 2014 First Lien $ $ May 2014 Second Lien May 2014 Revolver — — Total debt Less: debt issuance costs Less: current portion Total long-term debt $ $ The May 2014 Credit Agreements include certain binding affirmative and negative covenants, including delivery of financial statements and other reports, maintenance of existence and transactions with affiliates. The negative covenants limit our ability, among other things, to incur debt, incur liens, make investments, sell assets or declare or pay dividends. The financial covenant setting forth a maximum leverage ratio which is included in the May 2014 Credit Agreements is only applicable if we exceed certain borrowing thresholds. These borrowing thresholds are based upon 35% of our total revolving credit commitments with certain exceptions, which were not exceeded as of June 30, 2016 and December 31, 2015 . In addition, the May 2014 Credit Agreements include certain events of default including payment defaults, failure to perform affirmative covenants, failure to refrain from actions or omissions prohibited by negative covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults and a change of control default. We were in compliance with all such covenants as of June 30, 2016 and December 31, 2015 . The May 2014 Credit Agreements require mandatory prepayments based upon annual excess cash flows commencing with the year ended December 31, 2015 . The mandatory prepayment is contingently payable based on an annual excess cash flow calculation as defined within the Credit Agreements. We did not meet the annual excess cash flow calculation requirement as of December 31, 2015 . As of June 30, 2016 , the aggregate maturities of long ‑term debt for each of the next five years are expected to be $ 4,050 for the remainder of 2016 and $ 8,100 in each of 2017 through 2020 . |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments | |
Derivative Instruments | Note 8. Derivative Instruments We are exposed to fluctuations in interest rates on our long ‑term debt. We manage our exposure to fluctuations in the 3 ‑month LIBOR through the use of interest rate cap agreements designated as cash flow hedges. We are meeting our objective by hedging the risk of changes in cash flows related to changes in LIBOR by capping the interest on our floating rate debt linked to LIBOR to approximately 3% . We do not utilize derivatives for speculative or trading purposes. As of June 30, 2016 and December 31, 2015 , we had $630,000 in notional debt outstanding related to these interest rate caps, which cover quarterly interest payments through September 2019. The notional amount decreases over time. All of our outstanding interest rate cap contracts qualify for cash flow hedge accounting treatment in accordance with ASC 815, Derivatives and Hedging . Cash flow hedge accounting treatment allows for gains and losses on the effective portion of qualifying hedges to be deferred in accumulated other comprehensive (loss) income until the underlying transaction occurs, rather than recognizing the gains and losses on these instruments in earnings during each period they are outstanding. When the actual interest payments are made on our variable rate debt and the related derivate contract settles, any effective portion of realized interest rate hedging derivative gains and losses previously recorded in accumulated other comprehensive (loss) income is recognized in interest expense. We recognized interest expense of $62 and $16 related to interest rate caps during the three months ended June 30, 2016 and 2015 , respectively and $144 and $32 during the six months ended June 30, 2016 and 2015 , respectively. Ineffectiveness results, in certain circumstances, when the change in total fair value of the derivative instrument differs from the change in the fair value of our expected future cash outlays for the related interest payment and is recognized immediately in interest expense. There was no ineffectiveness recorded during the six months ended June 30, 2016 and 2015 , respectively. Likewise, if the hedge does not qualify for hedge accounting, the periodic changes in its fair value are recognized in the period of the change in interest expense. All cash flows related to our interest rate cap agreements are classified as operating cash flows. Any outstanding derivative instruments expose us to credit loss in the event of nonperformance by the counterparties to the agreements, but we do not expect that the counterparty will fail to meet their obligations. The amount of such credit exposure is generally the positive fair value of our outstanding contracts. To manage credit risks, we select counterparties based on credit assessments, limit our overall exposure to any single counterparty and monitor the market position of any counterparty. The table below reflects quantitative information related to the fair value of our derivative instruments and where these amounts are recorded in our consolidated financial statements as of the period presented: June 30, December 31, 2016 2015 Liability fair value recorded in other long-term liabilities $ $ Liability fair value recorded in accounts payable and accrued other expenses Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months We record deferred hedge premiums which are being paid over the life of the hedge in accumulated other comprehensive (loss) income until the related hedge ultimately settles and interest payments are made on the underlying debt. As of June 30, 2016 , we have made payments of $1,838 related to these deferred premiums. We expect to pay an additional $4,556 in deferred premiums through 2019 related to our outstanding interest rate cap agreements which is reflected in the fair value of these derivatives in the table above. Comprehensive income includes changes in the fair value of our interest rate cap agreements which qualify for hedge accounting. Changes in other comprehensive income for the periods presented related to derivative instruments classified as cash flow hedges were as follows: Three Months Ended June 30, 2016 2015 Balance at beginning of period, April 1 $ $ Reclassifications in earnings, net of tax of $24 and $6, respectively Change in fair value of derivative instrument, net of tax of $184 and $202, respectively Balance at end of period, June 30 $ $ Six Months Ended June 30, 2016 2015 Balance at beginning of period, January 1 $ $ Reclassifications in earnings, net of tax of $56 and $14, respectively Change in fair value of derivative instrument, net of tax of $509 and $533, respectively Balance at end of period, June 30 $ $ |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | Note 9. Fair Value Measurements We measure assets and liabilities at fair value based on assumptions market participants would use in pricing an asset or liability in the principal or most advantageous market. Authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value whereby inputs are assigned a hierarchical level. The hierarchical levels are: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. Level 2: Observable prices, other than quoted prices included in Level 1 inputs for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Unobservable inputs for the asset or liability used to measure fair value to the extent observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The following table summarizes our financial instruments measured at fair value within the Consolidated Balance Sheets: June 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Available-for-sale securities $ — $ — $ — $ $ — $ — Liabilities Long-term debt — — — — Interest rate cap agreements — — — — Total $ — $ $ $ $ $ Investments are classified as available ‑for ‑sale and carried at fair value in the accompanying Consolidated Balance Sheets. Our investments consist of money market securities valued using quoted market prices for identical assets in active markets. As of June 30, 2016, we no longer hold any money market securities. The fair value of our private debt is determined based on fluctuations in current interest rates, the trends in market yields of debt instruments with similar credit ratings, general economic conditions and other quantitative and qualitative factors. The carrying value of our debt approximates its fair value. The fair value of the interest rate cap agreements is determined using the market standard methodology of discounting the future expected variable cash receipts that would occur if interest rates rose above the strike rate of the caps. The analysis reflects the contractual terms of the derivatives, including period to maturity and remaining deferred premium payments, and uses observable market ‑based inputs, including interest rates and implied volatilities. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rates. As such, the estimated fair values of these liabilities are classified as Level 2 in the fair value hierarchy. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes | |
Income Taxes | Note 10. Income Taxes The following table presents our income tax provision and effective income tax rate: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Income tax provision $ $ $ $ Effective income tax rate % % % % Our effective income tax rate was 38.0% and 39.9% for the three months ended June 30, 2016 and 2015 , respectively and 38.9% and 42.7% for the six months ended June 30, 2016 and 2015 , respectively. The change in the effective tax rate is primarily due to uncertain tax positions recorded during the prior year period. We are currently under audit with the Internal Revenue Service for the tax year ended December 31, 2014. In addition we are currently under audit for iHealth Technologies, Inc. for the tax years ended December 31, 2012, December 31, 2013 and May 13, 2014. As a result, it is reasonably possible that the audit will conclude or reach the stage where a change in unrecognized income tax benefits may occur within the next twelve months. At that time, we will record any adjustment to income tax expense as required. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity | |
Stockholders' Equity | Note 11. Stockholders’ Equity Issuance of Common Stock On May 13, 2016 our Certificate of Incorporation was amended and the number of shares of common stock authorized to be issued by the Company was increased from 122,000,000 to 600,000,000 . On May 25, 2016 we consummated our IPO in which we issued and sold a total of 12,936,038 shares of common stock, including a portion of the underwriter overallotment, at a public offering price of $19.00 per share. We received net proceeds of approximately $226,929 after deducting underwriting discounts and commissions and other offering expenses of approximately $18,856 . A summary of the current rights and preferences of holders of our common stock are as follows: Voting Common stockholders are entitled to one vote per share of common stock held on all matters on which such common stockholder is entitled to vote. Dividends Common stockholders are eligible to receive dividends on common stock held when funds are available and as approved by the Board of Directors. The May 2014 Credit Agreements contain negative covenants that limit our ability to pay dividends. Liquidation Rights In the event of liquidation or dissolution, common stockholders are entitled to receive all assets available for distribution to stockholders. Registration Rights The Second Amended and Restated Stockholders Agreement contains (i) demand registration rights for Advent, subject to a cap of two requests in any 12 month period; (ii) piggy-back registration rights for any stockholder holding at least $500,000 worth of shares (each, a “Holder”), subject to a pro rata reduction if the total amount of shares requested to be included exceeds the amount of securities which in the opinion of the underwriters can be sold; and (iii) shelf registration rights for Holders, subject to a required anticipated aggregate offering price, net of selling expenses, of $5.0 million, subject to a cap of two requests for shelf registrations, for all Holders in the aggregate, in any 12 month period. Holders that are capable of selling all of their registrable securities pursuant to Rule 144 under the Securities Act in a single transaction without timing or volume limitations will not have piggy-back registration rights. We will be responsible for fees and expenses in connection with the registration rights, other than underwriters’ discounts and brokers’ commissions, if any, relating to any such registration and offering. Common Stock Split On May 13, 2016 we effected a 6.1 -for-1 stock split of all outstanding shares of our common stock. All share, option and per share information presented in the accompanying consolidated financial statements and notes thereto have been adjusted to reflect the stock split on a retroactive basis for all periods presented and all share information is rounded up to the nearest whole share after reflecting the stock split. Common Stock Dividends On May 25, 2016 we paid a special cash dividend of $150,000 , or $1.94 per share of common stock outstanding prior to the IPO, to holders of record of our common stock on the dividend record date. In connection with the special cash dividend we lowered the exercise price of then outstanding stock options by $1.94 per share in order to preserve the intrinsic value of the options giving effect to the special cash dividend. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings per Share | |
Earnings per Share | Note 12. Earnings per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. For all periods presented, potentially dilutive outstanding shares consisted solely of our common stock options. Our potential common shares consist of the incremental common shares issuable upon the exercise of the options. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method. For all periods presented, all outstanding common stock consisted of a single ‑class. Basic and diluted earnings per share are computed as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net income available to common stockholders $ $ $ $ Weighted average outstanding shares of common stock Dilutive effect of stock-based awards Adjusted weighted average outstanding and assumed conversions for diluted EPS Earnings per share from continuing operations: Basic $ $ $ $ Diluted Earnings per share from discontinued operations: Basic $ — $ — $ — $ Diluted — — — Total earnings per share: Basic $ $ $ $ Diluted Employee stock options and restricted stock units (“RSUs”) that were excluded from the calculation of diluted earnings per share because their effect is anti ‑dilutive for the periods presented were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Employee stock-based awards In addition, performance ‑ based stock options of 2,788,817 and 2,408,067 as of June 30, 2016 and 2015 , respectively, have not been included as the vesting conditions have not been satisfied as of the respective period end. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 13. Stock ‑Based Compensation Equity Incentive Plans In 2012, we adopted an equity incentive plan (“2012 Plan”) pursuant to which our Board of Directors (or committee as designated by the Board of Directors) may grant options to purchase shares of our stock, restricted stock and certain other equity awards to directors, officers and key employees. We only granted stock options that can be settled in shares of our common stock under the 2012 Plan. The 2012 Plan had a total of 7,243,330 shares authorized for issuance. Upon completion of the IPO in May 2016, issuances under the 2012 Plan were suspended. At that time we adopted the 2016 Equity Incentive Plan (“2016 Plan” and collectively with the 2012 Plan, the “Plans”), pursuant to which our Board of Directors (or a committee or sub-committee designated by the Board of Directors) may grant options to purchase shares of our stock, restricted stock and certain other equity awards to directors, officers and key employees. The 2016 Plan was established with the authorization for grants of up to 5,490,000 shares of authorized but unissued shares of common stock. No stock options were granted under the 2012 Plan after December 31, 2015. Awards granted under the 2012 Plan will remain outstanding until the earlier of exercise, forfeiture, cancellation or expiration. To the extent outstanding options under the 2012 Plan are forfeited, cancelled or terminated, the common stock subject to such options will be available for future issuance under the 2016 Plan. As of June 30, 2016, there are no shares available for future issuance under the 2012 Plan as the 776,839 shares that were available were discontinued upon adoption of the 2016 Plan. As of June 30, 2016 the total number of shares available for future issuance under the Plans is 5,248,147 . Stock Options Under the terms of the 2016 Plan, we may issue options to purchase shares of our common stock at a price equal to 100% of the market price on the date of grant. Issuances under the 2012 Plan, prior to its suspension, were under terms similar to issuances under the 2016 Plan. Stock options granted are subject to either time of service (service-based awards) or performance (performance-based awards) criteria. Service-based awards typically vest ratably over a five year service period from the date of grant under the 2012 Plan and typically vest ratably over a four year service period from the date of grant under the 2016 Plan. In the event of a change in control, any outstanding, unvested service-based awards will vest immediately. Performance-based awards vest in accordance with the specific performance criteria espoused in the executed award agreements. The term of any stock option shall not exceed ten years from the date of grant. However, an incentive stock option granted to an employee who, at the time of grant, owns stock possessing more than 10% of the total combined voting power of all classes of our stock may not have a term exceeding five years from the date of grant. The following is a summary of stock option activity under the Plans: Six Months Ended June 30, 2016 2015 Weighted Weighted average average exercise exercise Shares price Shares price Outstanding at beginning of period $ $ Granted Exercised — — Forfeited Expired — — — — Outstanding at end of period $ $ Average Weighted Weighted Remaining Service- average Performance- average Contractual Aggregate based exercise based exercise Term Intrinsic Shares price Shares price (in years) Value Stock options outstanding as of June 30, 2016 $ $ $ Stock options vested and exercisable as of June 30, 2016 $ — $ — $ Aggregate intrinsic value represents the difference between our estimated fair value of common stock and the exercise price of outstanding in ‑the ‑money options. The estimated fair value of common stock was $21.13 as of June 30, 2016 based upon the closing price of our common stock on the NYSE. The total intrinsic value of options exercised for the three and six months ended June 30, 2016 and 2015 was insignificant. The total fair value of stock options vested was $2,905 and $81 during the three months ended June 30, 2016 and 2015 , respectively and $3,007 and $182 during the six months ended June 30, 2016 and 2015 , respectively. Restricted Stock Units Restricted stock units provide participants the right to receive a payment based on the value of a share of common stock. RSUs may be subject to vesting requirements, restrictions and conditions to payment. Such requirements may be based on the continued service for a specified time period or on the attainment of specified performance goals as specified in the award agreements. RSUs are payable in cash or in shares or a combination of both. Under the terms of the Plans, RSUs have a grant date fair value equal to the closing price of our stock on the grant date. The units vest ratably over a four year service period. We began issuing RSUs upon adoption of the 2016 Plan; no RSUs were issued under the 2012 Plan. The following is a summary of RSU activity under the 2016 Plan: Six Months Ended June 30, 2016 Weighted average grant date Shares fair value Nonvested at beginning of period — $ — Granted Vested — — Forfeited — — Nonvested at end of period $ Stock Compensation Expense The fair value of each stock option award is estimated on the date of grant using a Black-Scholes-Merton option pricing model. The expected term of the option represents the period the stock-based awards are expected to be outstanding. We use the simplified method under the provisions of ASC 718, Stock Based Compensation for estimating the expected term of the options. Since our shares were not publicly traded until May 2016 and were rarely traded privately, at the time of each grant, there was insufficient volatility data available. Accordingly, we calculate expected volatility using comparable peer companies with publicly traded shares over a term similar to the expected term of the options issued. We do not intend to pay dividends on our common shares, therefore, the dividend yield percentage is zero . The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options. We used the following weighted average assumptions to estimate the fair value of stock options granted for the periods presented as follows: Six Months Ended June 30, 2016 2015 Expected term (years) Expected volatility % % Expected dividend yield % % Weighted average risk-free interest rate % % Weighted average grant date fair value $ $ As the criteria associated with the performance-based awards are based on a future event as defined in the terms of the award agreements, which as of June 30, 2016 has not yet occurred, no compensation expense has been recorded for these stock options. The estimated unrecognized compensation expense associated with the 2,788,817 outstanding stock options subject to performance criteria was approximately $16,155 at June 30, 2016. We believe achievement of certain of the performance criteria could commence as early as September 30, 2016. We recorded total stock ‑based compensation expense of $3,428 and $616 for the three months ended June 30, 2016 and 2015 , respectively and $4,502 and $1,219 for the six months ended June 30, 2016 and 2015 , respectively. Stock-based compensation expense during the three months ended June 30, 2016 includes $2,257 related to the accelerated vesting of certain stock options as the result of the IPO. We do not currently adjust compensation expense for forfeitures as there has been insignificant forfeiture activity to date. As of June 30, 2016 , we had total unrecognized compensation cost related to 2,378,650 unvested service ‑based stock options and RSUs under the Plans of $15,427 which we expect to recognize over the next 3.5 years. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Information | |
Segment Information | Note 14. Segment Information Operating segments are components of an enterprise for which separate financial information is available that is evaluated regularly by our Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing financial performance. We conduct our business through two reportable business segments: Healthcare and Global Retail and Other. The Healthcare segment provides claims accuracy solutions to health insurance payers and payer ‑related entities. All of our healthcare service offerings focus on generating economic benefits for our clients by identifying errors, reducing improper payments and improving efficiency of business process related to healthcare industry payment networks. The Global Retail and Other segment primarily provides retrospective claims accuracy solutions to large and mid ‑size retailers. Our services primarily result in cost recoveries based on the audit of our clients’ supply chain information as well as improved efficiency and effectiveness of our clients’ payment networks. We evaluate the performance of each segment based on segment net revenue and segment operating income. Operating income is calculated as net revenue less operating expenses and is not affected by other expense (income) or by income taxes. Indirect costs are generally allocated to the segments based on the segments’ proportionate share of revenue and expenses directly related to the operation of the segment. We do not allocate interest expense, other non ‑operating (income) expense or the provision for income taxes, since these items are not considered in evaluating the segment’s overall operating performance. Our CODM does not receive or utilize asset information to evaluate performance of operating segments. Accordingly, asset ‑related information has not been presented. Our operating segment results for the periods presented were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Net Revenue Healthcare $ $ $ $ Global Retail and Other Consolidated net revenue $ $ $ $ Operating Income Healthcare $ $ $ $ Global Retail and Other Consolidated operating income $ $ $ $ Operating segment net revenue by product type for the periods presented was as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 % 2015 % 2016 % 2015 % (unaudited) (unaudited) Healthcare Retrospective claims accuracy $ $ $ $ Prospective claims accuracy Transaction services Total Healthcare Retail Retrospective claims accuracy Other Total Global Retail and Other Consolidated net revenue $ $ $ $ |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 15. Employee Benefit Plans Contributions expensed and included in compensation on our Consolidated Statements of Comprehensive Income for employee benefit plans are detailed below: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 401(k) Plan (a) $ $ $ $ Profit Share Plan (b) Provident Plan (c) Total $ $ $ $ (a) We sponsor defined contribution retirement plans in accordance with Section 401(k) of the Internal Revenue Code, which cover substantially all U.S. employees, subject to certain minimum age and service requirements. The plans provide for a contribution based on a percentage of eligible employee contributions. (b) We had a nonqualified profit sharing incentive compensation plan for certain eligible employees. Contributions were made within 90 days following the last day of the plan to a brokerage account in an amount determined at our discretion for employees who had completed 1,000 hours of service and were employed at the time of the contribution. This plan was discontinued after the 2014 plan year, with the final payout occurring in June 2016. Our liability under the plan was $0 and $893 at June 30, 2016 and December 31, 2015 , respectively, which is included in accrued compensation costs in the accompanying Consolidated Balance Sheets. (c) Eligible employees of our subsidiary located in India are covered by the Provident Fund, contributions which are based on a percentage of eligible employees’ salaries, and the Payment of Gratuity Act, which provides for benefits to be paid to eligible employees upon termination of employment (collectively, the “India Plan”). Benefits under the Plan are administered by the Indian Government. As of June 30, 2016 and December 31, 2015 we had an accrued benefit obligation relating to the India Plan of $666 and $535 , respectively. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations | |
Discontinued Operations | Note 16. Discontinued Operations In February 2015, we received payment on a $900 note receivable related to a business that was disposed of in 2012. Since the date of sale, we had elected to fully reserve the note receivable as the collectability was determined to be uncertain. This gain from the collection of the note receivable, net of tax, is reflected as a gain on discontinued operations on our Consolidated Statements of Comprehensive Income. The estimated impact to diluted EPS as a result of this gain on discontinued operations was $0.01 per diluted share for the six months ended June 30, 2015. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies | |
Description of Business | Basis of Presentation Our accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). All significant intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements are unaudited and have been prepared by us following the rules and regulations of the U.S. Securities and Exchange Commission. In our opinion they reflect all adjustments, including normal recurring items, that are necessary to present fairly the results of interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by such rules and regulations; however, we believe that the disclosures are adequate to make the information presented not misleading. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for other interim periods or the entire fiscal year. Certain prior year amounts have been reclassified to conform to the current year presentation. |
Revenue Recognition, Unbilled Receivables and Estimated Liability for Refunds and Appeals | Revenue Recognition, Unbilled Receivables and Estimated Liability for Refunds and Appeals We provide services under contracts that contain various fee structures, including performance fee ‑based contracts and fixed fee arrangements. Revenue is recognized when a contract exists, services have been provided to the client, the fee is fixed and determinable and collectability is reasonably assured. We recognize revenue on performance fee based contracts based upon the specific terms of the underlying contract. The contract terms generally specify: (a) time periods covered by the work to be performed; (b) nature and extent of services we are to provide; (c) the client’s duties in assisting and cooperating with us; and (d) fees payable to us. Our fees are most often expressed as a percentage of our findings. Generally, our services are rendered when our clients realize the economic benefits from our services. Our clients realize economic benefits when they take credits against their existing accounts payable based on when we identify cost savings, when they receive refund checks based on overpayments, or when they acknowledge payment reductions based on cost savings. We derive a relatively small portion of revenue on contracts with fixed ‑fee arrangements. We recognize revenue on these contracts ratably over the contract term and once all of the above criteria have been satisfied. Historically, there has been a certain amount of revenue with respect to which, even though we had met the requirements of our revenue recognition policy, the claim is ultimately rejected. In such cases, our clients may request a refund or offset if their providers or vendors ultimately reject the payment inaccuracies we find or if our clients determine not to pursue reimbursement from their providers or vendors even though we may have collected fees. We record any such refund as a reduction of revenue. We record an estimate for refund liabilities at any given time based on actual historical refund data by client type. We satisfy such refund liabilities either by offsets to accounts receivable or by cash payments to clients. In addition to the refund liabilities, we calculate client specific reserves when we determine an additional reserve may be necessary. The estimated liability for refunds and appeals representing our estimate of claims that may be overturned related to revenue which had already been received was $70,574 and $67,775 at June 30, 2016 and December 31, 2015 , respectively. The estimated allowance for refunds and appeals representing our estimate of claims that may be overturned related to amounts in accounts receivable was $45,495 and $33,406 at June 30, 2016 and December 31, 2015 , respectively. Under the Medicare Recovery Audit Program, in which we are one of the four Recovery Audit Contractors (“Medicare RAC”) for CMS, healthcare providers have the right to appeal a claim and may pursue additional appeals if the initial appeal is found in favor of CMS. We accrue an estimated liability for appeals based on the amount of fees that are subject to appeals, closures or other adjustments and those which we estimate are probable of being returned to CMS following a successful appeal by the providers. Our estimates are based on our historical experience with the Medicare RAC appeal process. This estimated liability for Medicare RAC appeals is an offset to revenue in our Consolidated Statements of Comprehensive Income. The liability is included in the estimated liability for refunds and appeals on our Consolidated Balance Sheets. See Note 6 for further information regarding the estimated liability for appeals related to the Medicare RAC program. Unbilled receivables represent revenue recognized related to claims for which clients have received economic value that were not invoiced at the balance sheet date. Unbilled receivables were approximately $50,083 and $51,799 as of June 30, 2016 and December 31, 2015 , respectively and are included in accounts receivable on our Consolidated Balance Sheets. Certain unbilled receivables arise when a portion of our earned fee is deferred at the time of the initial invoice. At a later date (which can be up to a year after original invoice, and at other times during the year after completion of the audit period based on contractual terms or as agreed with our client), we invoice the unbilled receivable amount. Notwithstanding the deferred due date, our clients acknowledge we have earned this unbilled receivable at the time of the original invoice, but we have agreed to defer billing the client for the related services. Unbilled receivables of this nature were approximately $5,800 and $6,431 as of June 30, 2016 and December 31, 2015 , respectively, and are included in accounts receivable on our Consolidated Balance Sheets. We record periodic changes in unbilled receivables and refund liabilities as adjustments to revenue. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) which simplifies several aspects of the accounting for share based compensation. ASU 2016-09 changes several aspects of the accounting for share based payment award transactions, including 1) accounting for income taxes, 2) classification of excess tax benefits on the statement of cash flows, 3) forfeitures, 4) minimum statutory tax withholding requirements and 5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. The guidance is effective for public companies with annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. We are evaluating this new guidance and its impact on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”) which changes the accounting recognition, measurement and disclosure for leases in order to increase transparency. ASU 2016-02 requires lease assets and liabilities to be recognized on the balance sheet and key information about leasing arrangements to be disclosed. The guidance is effective for public companies with annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are evaluating this new guidance and its impact on our consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) which changes the current financial instruments model primarily impacting the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance is effective for public companies with annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are evaluating this new guidance and do not believe it will have a material impact on our consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015 ‑17, Balance Sheet Classification of Deferred Taxes , (“ASU 2015 ‑17”) which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The guidance is effective for public companies with annual and interim periods beginning after December 15, 2016. Early adoption is permitted. We are evaluating this new guidance and its impact on our consolidated balance sheets and related disclosures and expect the adoption of this ASU will reduce our total current assets and net working capital. In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”) which established guidance regarding the accounting for software licenses. ASU 2015-05 is effective for annual reporting periods, including interim periods, beginning after December 15, 2015. We prospectively adopted the provisions of ASU 2015-05 as of January 1, 2016 and have not yet had any material contracts that were impacted by this new guidance. In April 2015, the FASB issued ASU 2015 ‑03, Simplifying the Presentation of Debt and Issuance Costs (“ASU 2015 ‑03”) which establishes guidance to simplify the presentation of debt issuance costs by requiring debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that liability, consistent with debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as an asset in the balance sheet. The guidance is effective for annual reporting periods beginning after December 15, 2015, and interim periods within that reporting period. We adopted the provisions of ASU 2015-03 as of January 1, 2016 and prior period amounts have been reclassified to conform to the current period presentation. As of June 30, 2016 and December 31, 2015, $13,658 and $20,975 of debt issuance costs, respectively, were reclassified in the consolidated balance sheet from debt issuance costs, net to long-term debt . The adoption of ASU 2015-03 did not materially impact our consolidated financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014 ‑09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014 ‑09”) which supersedes existing revenue recognition guidance and provides clarification of principles for recognizing revenue from contracts with customers. The guidance is effective for public companies with annual periods beginning after December 15, 2017 and interim periods within that reporting period. We are evaluating this new guidance, the method of adoption we will take and the impact, if any, on our consolidated financial statements and related disclosures. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property and Equipment | |
Schedule of property and equipment by major asset class | June 30, December 31, 2016 2015 Computer equipment $ $ Software Furniture and fixtures Leasehold improvements Projects in progress Property and equipment, gross $ $ Less: Accumulated depreciation and amortization Property and equipment, net $ $ |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Intangible Assets | |
Schedule of intangible asset balances by major asset class | Weighted Gross Net Average Carrying Accumulated Carrying Amortization Amount Amortization Impairment Amount Period June 30, 2016: Customer relationships $ $ $ — $ years Acquired software — years Connolly trademark — — indefinite-lived Total $ $ $ — $ years December 31, 2015: Customer relationships $ $ $ — $ years Acquired software — years Connolly trademark — indefinite-lived iHealth trademark — years Total $ $ $ $ years |
Schedule of intangible asset amortization expense | Remainder of 2016 $ 2017 2018 2019 2020 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill | |
Schedule of changes in the carrying amount of goodwill by segment | Global Retail Healthcare and Other December 31, 2015 $ $ Foreign currency translation and other — June 30, 2016 $ $ |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Long-term Debt | |
Schedule of long-term debt | June 30, December 31, 2016 2015 May 2014 First Lien $ $ May 2014 Second Lien May 2014 Revolver — — Total debt Less: debt issuance costs Less: current portion Total long-term debt $ $ |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments | |
Schedule of fair value and location of derivative instruments | June 30, December 31, 2016 2015 Liability fair value recorded in other long-term liabilities $ $ Liability fair value recorded in accounts payable and accrued other expenses Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months |
Schedule of changes in other comprehensive income related to derivative instruments classified as cash flow hedges | Three Months Ended June 30, 2016 2015 Balance at beginning of period, April 1 $ $ Reclassifications in earnings, net of tax of $24 and $6, respectively Change in fair value of derivative instrument, net of tax of $184 and $202, respectively Balance at end of period, June 30 $ $ Six Months Ended June 30, 2016 2015 Balance at beginning of period, January 1 $ $ Reclassifications in earnings, net of tax of $56 and $14, respectively Change in fair value of derivative instrument, net of tax of $509 and $533, respectively Balance at end of period, June 30 $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements | |
Summary of financial instruments measured at fair value | June 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Available-for-sale securities $ — $ — $ — $ $ — $ — Liabilities Long-term debt — — — — Interest rate cap agreements — — — — Total $ — $ $ $ $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes | |
Schedule of income tax provision and effective income tax rate | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Income tax provision $ $ $ $ Effective income tax rate % % % % |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings per Share | |
Schedule of computation of basic and diluted earnings per share | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net income available to common stockholders $ $ $ $ Weighted average outstanding shares of common stock Dilutive effect of stock-based awards Adjusted weighted average outstanding and assumed conversions for diluted EPS Earnings per share from continuing operations: Basic $ $ $ $ Diluted Earnings per share from discontinued operations: Basic $ — $ — $ — $ Diluted — — — Total earnings per share: Basic $ $ $ $ Diluted |
Schedule of antidilutive securities excluded from earnings per share | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Employee stock-based awards |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation | |
Summary of stock option activity | Six Months Ended June 30, 2016 2015 Weighted Weighted average average exercise exercise Shares price Shares price Outstanding at beginning of period $ $ Granted Exercised — — Forfeited Expired — — — — Outstanding at end of period $ $ |
Summary of stock options outstanding, vested and exercisable | Average Weighted Weighted Remaining Service- average Performance- average Contractual Aggregate based exercise based exercise Term Intrinsic Shares price Shares price (in years) Value Stock options outstanding as of June 30, 2016 $ $ $ Stock options vested and exercisable as of June 30, 2016 $ — $ — $ |
Summary of restricted stock units activity | Six Months Ended June 30, 2016 Weighted average grant date Shares fair value Nonvested at beginning of period — $ — Granted Vested — — Forfeited — — Nonvested at end of period $ |
Schedule of weighted average assumptions to estimate the fair value of stock options granted | Six Months Ended June 30, 2016 2015 Expected term (years) Expected volatility % % Expected dividend yield % % Weighted average risk-free interest rate % % Weighted average grant date fair value $ $ |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Information | |
Schedule of operating segment results | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (unaudited) (unaudited) Net Revenue Healthcare $ $ $ $ Global Retail and Other Consolidated net revenue $ $ $ $ Operating Income Healthcare $ $ $ $ Global Retail and Other Consolidated operating income $ $ $ $ |
Schedule of operating segment net revenue by product type | Three Months Ended June 30, Six Months Ended June 30, 2016 % 2015 % 2016 % 2015 % (unaudited) (unaudited) Healthcare Retrospective claims accuracy $ $ $ $ Prospective claims accuracy Transaction services Total Healthcare Retail Retrospective claims accuracy Other Total Global Retail and Other Consolidated net revenue $ $ $ $ |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Employee Benefit Plans | |
Schedule of contributions expensed and included in compensation for employee benefit plans | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 401(k) Plan (a) $ $ $ $ Profit Share Plan (b) Provident Plan (c) Total $ $ $ $ (a) We sponsor defined contribution retirement plans in accordance with Section 401(k) of the Internal Revenue Code, which cover substantially all U.S. employees, subject to certain minimum age and service requirements. The plans provide for a contribution based on a percentage of eligible employee contributions. (b) We had a nonqualified profit sharing incentive compensation plan for certain eligible employees. Contributions were made within 90 days following the last day of the plan to a brokerage account in an amount determined at our discretion for employees who had completed 1,000 hours of service and were employed at the time of the contribution. This plan was discontinued after the 2014 plan year, with the final payout occurring in June 2016. Our liability under the plan was $0 and $893 at June 30, 2016 and December 31, 2015 , respectively, which is included in accrued compensation costs in the accompanying Consolidated Balance Sheets. (c) Eligible employees of our subsidiary located in India are covered by the Provident Fund, contributions which are based on a percentage of eligible employees’ salaries, and the Payment of Gratuity Act, which provides for benefits to be paid to eligible employees upon termination of employment (collectively, the “India Plan”). Benefits under the Plan are administered by the Indian Government. As of June 30, 2016 and December 31, 2015 we had an accrued benefit obligation relating to the India Plan of $666 and $535 , respectively. |
Description of Business (Detail
Description of Business (Details) | Jun. 30, 2016customercompany |
Healthcare | |
Description of business | |
Number of clients | 40 |
Commercial, Medicaid and Medicare managed health plans | United States | |
Description of business | |
Number of largest companies in the industry sector that are customers | 8 |
Number of largest companies in the industry sector | company | 10 |
Retail | |
Description of business | |
Number of clients | 40 |
Retail | United States | |
Description of business | |
Number of largest companies in the industry sector that are customers | 8 |
Number of largest companies in the industry sector | company | 10 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Revenue Recognition, Unbilled Receivables, and Estimated Liability for Refunds and Appeals (Details) $ in Thousands | Jun. 30, 2016USD ($)company | Dec. 31, 2015USD ($) |
Summary of Significant Accounting Policies | ||
Estimated liability for refunds and appeals | $ 70,574 | $ 67,775 |
Estimated allowance for refunds and appeals | $ 45,495 | 33,406 |
Number of Recovery Audit Contractors under Medicare Recovery Program | company | 4 | |
Accounts receivable | ||
Summary of Significant Accounting Policies | ||
Unbilled receivables | $ 50,083 | 51,799 |
Unbilled receivables arising from deferred billing | $ 5,800 | $ 6,431 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
New accounting pronouncements | ||
Debt issuance costs, net | $ 13,658 | $ 20,975 |
ASU 2015-03 | Adjustment | ||
New accounting pronouncements | ||
Debt issuance costs, net | (13,658) | (20,975) |
Long-term debt | $ (13,658) | $ (20,975) |
Property and Equipment - Balanc
Property and Equipment - Balances by Major Asset Class (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property and equipment | ||
Property and equipment, gross | $ 92,228 | $ 79,746 |
Less: Accumulated depreciation and amortization | 31,525 | 22,294 |
Property and equipment, net | 60,703 | 57,452 |
Computer equipment | ||
Property and equipment | ||
Property and equipment, gross | 37,259 | 31,496 |
Software | ||
Property and equipment | ||
Property and equipment, gross | 33,058 | 26,412 |
Furniture and fixtures | ||
Property and equipment | ||
Property and equipment, gross | 8,248 | 7,916 |
Leasehold improvements | ||
Property and equipment | ||
Property and equipment, gross | 4,179 | 3,488 |
Projects in progress | ||
Property and equipment | ||
Property and equipment, gross | $ 9,484 | $ 10,434 |
Property and Equipment - Perpet
Property and Equipment - Perpetual Software License (Details) - Perpetual software license - USD ($) $ in Thousands | 1 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2016 | |
Recorded obligation | ||
Remaining payment period | 2 years | |
Accounts payable and accrued other expenses | ||
Recorded obligation | ||
Current portion of obligation | $ 3,286 | |
Other long-term liabilities | ||
Recorded obligation | ||
Long-term portion of obligation | $ 3,161 |
Property and Equipment - Deprec
Property and Equipment - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property and Equipment | ||||
Depreciation and amortization expense related to property and equipment | $ 4,811 | $ 2,775 | $ 9,646 | $ 5,497 |
Intangible Assets - Balances by
Intangible Assets - Balances by Major Asset Class and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Intangible assets with definite lives | |||||
Accumulated Amortization | $ 163,039 | $ 163,039 | $ 133,767 | ||
Amortization expense | 15,208 | $ 15,410 | 30,415 | $ 30,819 | |
Intangible assets | |||||
Gross Carrying Amount | 726,902 | 726,902 | 756,003 | ||
Impairment | 27,826 | ||||
Net Carrying Amount | 563,863 | $ 563,863 | $ 594,410 | ||
Weighted average | |||||
Intangible assets with definite lives | |||||
Amortization period | 12 years 9 months 18 days | 12 years 9 months 18 days | |||
Trademark | |||||
Intangible assets with indefinite lives | |||||
Gross Carrying Amount | 4,200 | $ 4,200 | $ 24,500 | ||
Impairment | 20,300 | ||||
Net Carrying Amount | 4,200 | 4,200 | 4,200 | ||
Customer relationships | |||||
Intangible assets with definite lives | |||||
Gross Carrying Amount | 640,302 | 640,302 | 640,503 | ||
Accumulated Amortization | 121,331 | 121,331 | 97,857 | ||
Net Carrying Amount | 518,971 | $ 518,971 | $ 542,646 | ||
Customer relationships | Weighted average | |||||
Intangible assets with definite lives | |||||
Amortization period | 13 years 8 months 12 days | 13 years 8 months 12 days | |||
Acquired software | |||||
Intangible assets with definite lives | |||||
Gross Carrying Amount | 82,400 | $ 82,400 | $ 82,400 | ||
Accumulated Amortization | 41,708 | 41,708 | 34,836 | ||
Net Carrying Amount | $ 40,692 | $ 40,692 | $ 47,564 | ||
Acquired software | Weighted average | |||||
Intangible assets with definite lives | |||||
Amortization period | 6 years 2 months 12 days | 6 years 2 months 12 days | |||
Trademark | |||||
Intangible assets with definite lives | |||||
Gross Carrying Amount | $ 8,600 | ||||
Accumulated Amortization | 1,074 | ||||
Impairment | $ 7,526 | ||||
Trademark | Weighted average | |||||
Intangible assets with definite lives | |||||
Amortization period | 11 years |
Intangible Assets - Balances 42
Intangible Assets - Balances by Major Asset Class - Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Amortization expense for the next 5 years | |
Remainder of 2016 | $ 30,409 |
2,017 | 57,846 |
2,018 | 53,917 |
2,019 | 53,917 |
2,020 | $ 53,917 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Changes in the carrying amount of goodwill | ||||
Balance | $ 1,197,044 | |||
Balance | $ 1,196,585 | 1,196,585 | ||
Impairment related to goodwill | 0 | $ 0 | 0 | $ 0 |
Healthcare | ||||
Changes in the carrying amount of goodwill | ||||
Balance | 1,147,771 | |||
Foreign currency translation and other | ||||
Balance | 1,147,771 | 1,147,771 | ||
Global Retail and Other | ||||
Changes in the carrying amount of goodwill | ||||
Balance | 49,273 | |||
Foreign currency translation and other | (459) | |||
Balance | $ 48,814 | $ 48,814 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Unfavorable action - Centers for Medicare and Medicaid Services (CMS) - USD ($) $ in Thousands | Jul. 01, 2015 | Aug. 31, 2014 | Jun. 30, 2016 |
Loss contingency | |||
Settlement on original claim amount offered by CMS to allow providers to remove eligible claims pending in appeals process (as a percent) | 68.00% | ||
RAC contract contingency fee on original amount of settled claims under CMS July 1, 2015 Technical Direction Letter (as a percent) | 32.00% | ||
Maximum possible additional amount of refund payable in excess of amount accrued | $ 12,500 | ||
Estimated liability for refunds and appeals | |||
Loss contingency | |||
Estimated refund liability on settled claims | $ 22,308 |
Long-term Debt- Summary of Comp
Long-term Debt- Summary of Components (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | May 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Long-term debt | |||||||
Loss on extinguishment of debt | $ 7,068 | $ 4,084 | $ 7,068 | $ 4,084 | |||
Long-term debt components | |||||||
Total debt | $ 817,321 | 817,321 | 817,321 | $ 1,055,045 | |||
Less: debt issuance costs | 13,658 | 13,658 | 13,658 | 20,975 | |||
Less: current portion | 8,100 | 8,100 | 8,100 | 21,099 | |||
Total long-term debt | 795,563 | 795,563 | 795,563 | 1,012,971 | |||
Second Lien Credit Agreement | |||||||
Long-term debt | |||||||
Outstanding borrowings repaid | 223,000 | ||||||
Term loan | First Lien Credit Agreement | |||||||
Long-term debt components | |||||||
Total debt | 788,634 | 788,634 | 788,634 | 792,167 | |||
Term loan | First Lien Credit Agreement, First and Second Amendments | |||||||
Long-term debt | |||||||
Decrease in applicable interest rates (as a percent) | 0.50% | ||||||
Loss on extinguishment of debt | $ 4,084 | ||||||
Term loan | Second Lien Credit Agreement | |||||||
Long-term debt | |||||||
Voluntary prepayment of borrowings | 13,100 | ||||||
Loss on extinguishment of debt | 7,068 | 7,068 | |||||
Long-term debt components | |||||||
Total debt | $ 28,687 | $ 28,687 | $ 28,687 | $ 262,878 |
Long-term Debt- Credit Agreemen
Long-term Debt- Credit Agreements (Details) | 6 Months Ended |
Jun. 30, 2016 | |
First Lien Credit Agreement | |
Debt covenants | |
Borrowing threshold for leverage ratio covenant to apply (as a percent) | 35.00% |
Second Lien Credit Agreement | |
Debt covenants | |
Borrowing threshold for leverage ratio covenant to apply (as a percent) | 35.00% |
Long-term Debt - Aggregate Matu
Long-term Debt - Aggregate Maturities (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Aggregate maturities of long term debt | |
Remainder of 2016 | $ 4,050 |
2,017 | 8,100 |
2,018 | 8,100 |
2,019 | 8,100 |
2,020 | $ 8,100 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Cap Contracts (Details) - Interest rate cap agreements - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
LIBOR | ||||
Interest rate derivatives | ||||
Interest rate cap on floating rate debt (as a percent) | 3.00% | 3.00% | ||
Cash flow hedge | ||||
Cash flow hedge activity | ||||
Ineffectiveness recorded | $ 0 | $ 0 | ||
Cash flow hedge | Interest expense | ||||
Cash flow hedge activity | ||||
Expense recognized | $ 62 | $ 16 | 144 | $ 32 |
Designated as Hedge | ||||
Interest rate derivatives | ||||
Notional amount | $ 630,000 | $ 630,000 |
Derivative Instruments - Quanti
Derivative Instruments - Quantitative Information Related to Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Interest rate cash flow hedges | ||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | $ (739) | $ (283) |
Interest rate cap agreements | ||
Interest rate cash flow hedges | ||
Deferred hedge premiums paid and recorded in accumulated other comprehensive (loss) income | 1,838 | |
Expected additional payments of deferred premiums | 4,556 | |
Designated as Hedge | Interest rate cap agreements | Other long-term liabilities | ||
Interest rate cash flow hedges | ||
Derivative liability | 2,750 | 2,310 |
Designated as Hedge | Interest rate cap agreements | Accounts payable and accrued other expenses | ||
Interest rate cash flow hedges | ||
Derivative liability | $ 1,078 | $ 1,086 |
Derivative Instruments - Change
Derivative Instruments - Changes in Other Comprehensive Income Related to Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Changes in other comprehensive income related to derivative instruments classified as cash flow hedges | ||||
Balance at beginning of period | $ (3,450) | $ (1,697) | $ (2,968) | $ (623) |
Reclassifications in earnings, net of tax of $24 and $6 for the three and six months ended June 30, 2016, $56 and $14 for the three and six months ended June 30, 2015 | 38 | 10 | 88 | 18 |
Change in fair value of derivative instrument, net of tax of $184 and $202, respectively | (122) | (504) | (654) | (1,586) |
Balance at end of period | (3,534) | (2,191) | (3,534) | (2,191) |
Other comprehensive income, tax effect | ||||
Reclassifications in earnings, tax | 24 | 6 | 56 | 14 |
Change in fair value of derivative instrument, tax | $ 184 | $ 202 | $ 509 | $ 533 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Level 1 | ||
Assets: | ||
Available-for-sale Securities, Current | $ 1,181 | |
Total | 1,181 | |
Level 2 | ||
Liabilities | ||
Interest rate cap agreements | $ 3,828 | 3,396 |
Total | 3,828 | 3,396 |
Level 3 | ||
Liabilities | ||
Long-term debt | 817,231 | 1,055,045 |
Total | $ 817,231 | $ 1,055,045 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes | ||||
Income tax provision | $ 6,676 | $ 5,177 | $ 12,069 | $ 8,503 |
Effective income tax rate (as a percent) | 38.00% | 39.90% | 38.90% | 42.70% |
Stockholders' Equity - Issuance
Stockholders' Equity - Issuance of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | May 25, 2016 | Jun. 30, 2016 | May 13, 2016 | May 12, 2016 | Dec. 31, 2015 |
Issuance of stock | |||||
Common stock, shares authorized | 600,000,000 | 600,000,000 | 122,000,000 | 122,000,000 | |
Net proceeds received from common stock issued and sold | $ 226,929 | ||||
IPO | |||||
Issuance of stock | |||||
Net proceeds received from common stock issued and sold | $ 226,929 | ||||
Offering expenses | $ 18,856 | ||||
IPO | Common stock | |||||
Issuance of stock | |||||
Stock issued and sold (in shares) | 12,936,038 | ||||
Offering price (in dollars per share) | $ 19 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stockholder Rights and Preferences (Details) | 6 Months Ended |
Jun. 30, 2016USD ($)VoteRight | |
Registration rights | |
Number of votes a share of common stock entitles the holder | Vote | 1 |
Demand registration rights | |
Registration rights | |
Cap period | 12 months |
Demand registration rights | Maximum | |
Registration rights | |
Number of requests in any 12 month period | Right | 2 |
Piggyback registration rights | Minimum | |
Registration rights | |
Value of shares owned by Holder (in dollars) | $ | $ 500,000 |
Shelf registration rights | |
Registration rights | |
Cap period | 12 months |
Shelf registration rights | Maximum | |
Registration rights | |
Number of requests in any 12 month period | Right | 2 |
Shelf registration rights | Minimum | |
Registration rights | |
Anticipated aggregate offering price, net of selling expenses (in dollars) | $ | $ 5,000,000 |
Stockholders' Equity - Common55
Stockholders' Equity - Common Stock Split and Dividends (Details) $ / shares in Units, $ in Thousands | May 25, 2016USD ($)$ / shares | May 13, 2016 |
Common stock | ||
Common stock dividends paid (in dollars) | $ | $ 150,000 | |
Common stock dividends paid (in dollars per share) | $ / shares | $ 1.94 | |
Common stock | ||
Common stock | ||
Stock split ratio | 6.1 |
Earnings per Share - Basic and
Earnings per Share - Basic and Diluted Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic and diluted earnings per share computation | ||||
Net income available to common stockholders | $ 10,893 | $ 7,780 | $ 18,977 | $ 11,974 |
Weighted average outstanding shares of common stock | 82,348,189 | 77,204,691 | 79,789,693 | 77,204,691 |
Dilutive effect of stock-based awards | 764,846 | 421,745 | 729,249 | 427,884 |
Adjusted weighted average outstanding and assumed conversions for diluted EPS | 83,113,035 | 77,626,436 | 80,518,942 | 77,632,575 |
Earnings per share from continuing operations: | ||||
Basic (in dollars per share) | $ 0.13 | $ 0.10 | $ 0.24 | $ 0.15 |
Diluted (in dollars per share) | 0.13 | 0.10 | 0.24 | 0.14 |
Earnings per share from discontinued operations: | ||||
Basic (in dollars per share) | 0.01 | |||
Diluted (in dollars per share) | 0.01 | |||
Total earnings per share: | ||||
Basic (in dollars per share) | 0.13 | 0.10 | 0.24 | 0.16 |
Diluted (in dollars per share) | $ 0.13 | $ 0.10 | $ 0.24 | $ 0.15 |
Earnings per Share - Awards Exc
Earnings per Share - Awards Excluded from Diluted Calculation (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Anti-dilutive securities | |||||
Vesting conditions not satisfied | 31,577 | 31,577 | 0 | ||
Performance-based stock options | |||||
Anti-dilutive securities | |||||
Vesting conditions not satisfied | 2,788,817 | 2,408,067 | 2,788,817 | 2,408,067 | |
Service based stock options and RSUs | |||||
Anti-dilutive securities | |||||
Stock-based awards excluded from calculation of diluted earnings per share (in shares) | 1,598,231 | 846,467 | 1,598,231 | 846,467 |
Stock-Based Compensation - Equi
Stock-Based Compensation - Equity Incentive Plans (Details) - shares | 5 Months Ended | 6 Months Ended | |||
May 24, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 30, 2016 | Apr. 25, 2016 | |
Equity Incentive Plans | |||||
Shares available for future issuance | 5,248,147 | ||||
Stock options | |||||
Equity Incentive Plans | |||||
Granted (in shares) | 258,862 | 24,584 | |||
Amended 2012 Equity Incentive Plan | |||||
Equity Incentive Plans | |||||
Shares authorized for issuance | 7,243,330 | ||||
Shares available for future issuance | 776,839 | 0 | |||
Amended 2012 Equity Incentive Plan | Stock options | |||||
Equity Incentive Plans | |||||
Granted (in shares) | 0 | ||||
2016 Equity Incentive Plan | |||||
Equity Incentive Plans | |||||
Shares authorized for issuance | 5,490,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Terms (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Stock options | Maximum | |
Stock Options | |
Term of award | 10 years |
Stock options | Owner of more than 10 percent of voting stock | Maximum | |
Stock Options | |
Term of award | 5 years |
2016 Equity Incentive Plan | Stock options | |
Stock Options | |
Percentage of market price to purchase shares of common stock (as a percent) | 100.00% |
2016 Equity Incentive Plan | Service-based stock options | |
Stock Options | |
Vesting period | 4 years |
Amended 2012 Equity Incentive Plan | Service-based stock options | |
Stock Options | |
Vesting period | 5 years |
Stock-Based Compensation - St60
Stock-Based Compensation - Stock Option Activity (Details) - Stock options - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Shares | ||
Outstanding at beginning of period (in shares) | 6,441,573 | 5,012,034 |
Granted (in shares) | 258,862 | 24,584 |
Exercised (in shares) | (4,113) | |
Forfeited (in shares) | (63,050) | (145,180) |
Outstanding at end of period (in shares) | 6,633,272 | 4,891,438 |
Weighted average exercise price | ||
Outstanding at beginning of period (in dollars per share) | $ 9.59 | $ 7.97 |
Granted (in dollars per share) | 19 | 11.33 |
Exercised (in dollars per share) | 13.06 | |
Forfeited (in dollars per share) | 13.36 | 7.11 |
Outstanding at end of period (in dollars per share) | $ 9.92 | $ 8.02 |
Stock-Based Compensation - St61
Stock-Based Compensation - Stock Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock options | ||||||
Shares | ||||||
Outstanding (in shares) | 6,633,272 | 4,891,438 | 6,633,272 | 4,891,438 | 6,441,573 | 5,012,034 |
Weighted average exercise price | ||||||
Outstanding (in dollars per share) | $ 9.92 | $ 8.02 | $ 9.92 | $ 8.02 | $ 9.59 | $ 7.97 |
Average Remaining Contractual Term | ||||||
Outstanding | 7 years 9 months 18 days | |||||
Vested and exercisable | 7 years 3 months 18 days | |||||
Aggregate Intrinsic Value | ||||||
Outstanding | $ 74,344 | $ 74,344 | ||||
Vested and exercisable | 19,052 | 19,052 | ||||
Total fair value of options vested | $ 2,905 | $ 81 | $ 3,007 | $ 182 | ||
Service-based stock options | ||||||
Shares | ||||||
Outstanding (in shares) | 3,844,455 | 3,844,455 | ||||
Vested and exercisable (in shares) | 1,511,412 | 1,511,412 | ||||
Weighted average exercise price | ||||||
Outstanding (in dollars per share) | $ 10.56 | $ 10.56 | ||||
Vested and exercisable (in dollars per share) | $ 8.52 | $ 8.52 | ||||
Performance-based stock options | ||||||
Shares | ||||||
Outstanding (in shares) | 2,788,817 | 2,788,817 | ||||
Weighted average exercise price | ||||||
Outstanding (in dollars per share) | $ 9.04 | $ 9.04 | ||||
Common stock | ||||||
Aggregate Intrinsic Value | ||||||
Fair value of stock (in dollars per share) | $ 21.13 | $ 21.13 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Vesting and Activity (Details) - $ / shares | 6 Months Ended | 53 Months Ended |
Jun. 30, 2016 | May 24, 2016 | |
Shares | ||
Nonvested at beginning of period (in shares) | 0 | |
Granted (in shares) | 31,577 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Nonvested at end of period (in shares) | 31,577 | |
Weighted average grant date fair value | ||
Nonvested at beginning of period (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 19 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Nonvested at end of period (in dollars per share) | $ 19 | |
Restricted stock units | ||
Equity Incentive Plans | ||
Vesting period | 4 years | |
Amended 2012 Equity Incentive Plan | ||
Shares | ||
Granted (in shares) | 0 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions to Estimate Fair Value of Stock Options (Details) - Stock options - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Assumptions used to estimate fair value of stock options granted | ||
Expected term | 6 years 3 months | 6 years 3 months |
Expected volatility (as a percent) | 50.00% | 50.00% |
Expected dividend yield (as a percent) | 0.00% | 0.00% |
Weighted average grant date fair value (in dollars per share) | $ 9.32 | $ 5.49 |
Weighted average | ||
Assumptions used to estimate fair value of stock options granted | ||
Risk-free interest rate (as a percent) | 1.35% | 1.61% |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense Recorded (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-based compensation expense | ||||||
Stock-based compensation expense | $ 3,428 | $ 616 | $ 4,502 | $ 1,219 | ||
Stock options | ||||||
Stock-based compensation expense | ||||||
Outstanding (in shares) | 6,633,272 | 4,891,438 | 6,633,272 | 4,891,438 | 6,441,573 | 5,012,034 |
Stock-based compensation expense related to accelerated vesting | $ 2,257 | |||||
Performance-based stock options | ||||||
Stock-based compensation expense | ||||||
Stock-based compensation expense | $ 0 | $ 0 | ||||
Outstanding (in shares) | 2,788,817 | 2,788,817 | ||||
Unrecognized compensation cost | $ 16,155 | $ 16,155 | ||||
Service based stock options and RSUs | ||||||
Stock-based compensation expense | ||||||
Unvested awards (in shares) | 2,378,650 | 2,378,650 | ||||
Unrecognized compensation cost | $ 15,427 | $ 15,427 | ||||
Period of recognition of unrecognized compensation cost | 3 years 6 months |
Segment Information - Operating
Segment Information - Operating Segment Results (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | |
Segment information | ||||
Number of reportable segments | segment | 2 | |||
Net Revenue | $ 158,291 | $ 133,306 | $ 301,009 | $ 252,944 |
Operating Income | 38,938 | 33,773 | 68,176 | 57,480 |
Healthcare | ||||
Segment information | ||||
Net Revenue | 141,043 | 115,367 | 265,173 | 217,556 |
Operating Income | 36,713 | 30,513 | 63,335 | 51,524 |
Global Retail and Other | ||||
Segment information | ||||
Net Revenue | 17,248 | 17,939 | 35,836 | 35,388 |
Operating Income | $ 2,225 | $ 3,260 | $ 4,841 | $ 5,956 |
Segment Information - Operati66
Segment Information - Operating Segment Net Revenue by Product Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net revenue by product type | ||||
Net revenue | $ 158,291 | $ 133,306 | $ 301,009 | $ 252,944 |
Product | Consolidated net revenue | ||||
Net revenue by product type | ||||
Net revenue | $ 158,291 | $ 133,306 | $ 301,009 | $ 252,944 |
Proportionate share of total (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Healthcare | ||||
Net revenue by product type | ||||
Net revenue | $ 141,043 | $ 115,367 | $ 265,173 | $ 217,556 |
Healthcare | Product | Consolidated net revenue | ||||
Net revenue by product type | ||||
Net revenue | $ 141,043 | $ 115,367 | $ 265,173 | $ 217,556 |
Proportionate share of total (as a percent) | 89.10% | 86.50% | 88.10% | 86.00% |
Healthcare | Retrospective claims accuracy | Product | Consolidated net revenue | ||||
Net revenue by product type | ||||
Net revenue | $ 80,932 | $ 62,189 | $ 146,202 | $ 116,449 |
Proportionate share of total (as a percent) | 51.10% | 46.70% | 48.60% | 46.00% |
Healthcare | Prospective claims accuracy | Product | Consolidated net revenue | ||||
Net revenue by product type | ||||
Net revenue | $ 56,989 | $ 49,526 | $ 112,399 | $ 93,916 |
Proportionate share of total (as a percent) | 36.00% | 37.10% | 37.30% | 37.10% |
Healthcare | Transaction services | Product | Consolidated net revenue | ||||
Net revenue by product type | ||||
Net revenue | $ 3,122 | $ 3,652 | $ 6,572 | $ 7,191 |
Proportionate share of total (as a percent) | 2.00% | 2.70% | 2.20% | 2.90% |
Global Retail and Other | ||||
Net revenue by product type | ||||
Net revenue | $ 17,248 | $ 17,939 | $ 35,836 | $ 35,388 |
Global Retail and Other | Product | Consolidated net revenue | ||||
Net revenue by product type | ||||
Net revenue | $ 17,248 | $ 17,939 | $ 35,836 | $ 35,388 |
Proportionate share of total (as a percent) | 10.90% | 13.50% | 11.90% | 14.00% |
Global Retail and Other | Retrospective claims accuracy | Product | Consolidated net revenue | ||||
Net revenue by product type | ||||
Net revenue | $ 16,701 | $ 17,244 | $ 34,691 | $ 34,254 |
Proportionate share of total (as a percent) | 10.60% | 13.00% | 11.50% | 13.50% |
Global Retail and Other | Other | Product | Consolidated net revenue | ||||
Net revenue by product type | ||||
Net revenue | $ 547 | $ 695 | $ 1,145 | $ 1,134 |
Proportionate share of total (as a percent) | 0.30% | 0.50% | 0.40% | 0.50% |
Employee Benefit Plans - Contri
Employee Benefit Plans - Contributions Expensed (Details) - Compensation - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee benefit plans | ||||
Contributions expensed | $ 1,248 | $ 1,022 | $ 2,242 | $ 2,315 |
401(k) Plan | ||||
Employee benefit plans | ||||
Contributions expensed | 998 | 742 | 1,758 | 1,735 |
Profit Share Plan | ||||
Employee benefit plans | ||||
Contributions expensed | 117 | 167 | 220 | 376 |
Provident Plan | ||||
Employee benefit plans | ||||
Contributions expensed | $ 133 | $ 113 | $ 264 | $ 204 |
Employee Benefit Plans - Nonqua
Employee Benefit Plans - Nonqualified Profit Sharing Incentive Compensation Plan (Details) - Profit Share Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2016 | Dec. 31, 2015 | |
Maximum | |||
Employee benefit plans | |||
Period following last day of plan year that contributions are made | 90 days | ||
Minimum | |||
Employee benefit plans | |||
Service period required for eligibility | 1000 hours | ||
Accrued compensation costs | |||
Employee benefit plans | |||
Accrued employee benefits | $ 0 | $ 893 |
Employee Benefit Plans - India
Employee Benefit Plans - India Plan (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Subsidiary | India | ||
Employee benefit plans | ||
Accrued benefit obligation | $ 666 | $ 535 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended |
Feb. 28, 2015 | Jun. 30, 2015 | |
Discontinued operations | ||
Gain from collection of fully reserved note receivable | $ 900 | |
Estimated impact to diluted EPS as a result of gain on discontinued operations (in dollars per share) | $ 0.01 | |
Discontinued operations sold | Business disposed of in 2012 | ||
Discontinued operations | ||
Gain from collection of fully reserved note receivable | $ 900 | |
Estimated impact to diluted EPS as a result of gain on discontinued operations (in dollars per share) | $ 0.01 |