Employee Benefit Plans

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

11. Employee Benefit Plans

The Company’s Gratuity Plans in India and the Philippines provide a lump-sum payment to its vested employees upon retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities with regard to the Gratuity Plans are determined by actuarial valuation using the projected unit credit method. Current service costs for the Gratuity Plans are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees.

Net gratuity cost includes the following components:

	Three months ended June 30,						Six months ended June 30,
	2015			2014			2015			2014
Service cost	$	415		$	350		$	838		$	728
Interest cost		140			121			282			260
Expected return on plan assets		(97	)		(44	)		(197	)		(87	)
Actuarial loss		53			33			108			70
Net gratuity cost	$	511		$	460		$	1,031		$	971

The Gratuity Plans in India are partially funded and are managed and administered by Life Insurance Corporation of India and HDFC Standard Life Insurance Company. They calculate the annual contribution required to be made by the Company and manage the Gratuity Plans, including any required payouts. Fund managers manage these funds on a cash accumulation basis and declare interest retrospectively on March 31 of each year. The Company earned a return of approximately 9% on these Gratuity Plans for the year ended March 31, 2015.

Change in Plan Assets
Plan assets at January 1, 2015	$	4,752
Actual return		215
Benefits Paid		(364	)
Effect of exchange rate changes		(44	)
Plan assets at June 30, 2015	$	4,559

The Company maintains the Exl Service 401(k) Plan (the “401(k) Plan”) under Section 401(k) of the Internal Revenue Code of 1986 (the “Code”), covering all eligible employees, as defined. The Company may make discretionary contributions of up to a maximum of 3% of employee compensation within certain limits. The Company has made provisions for contributions to the 401(k) Plan amounting to $383 and $342 during the three month periods ended June 30, 2015 and 2014, respectively, and $1,151 and $845 during the six month periods ended June 30, 2015 and 2014, respectively.

During the three and six month periods ended June 30, 2015 and 2014, the Company contributed the following amounts to various defined contribution plans on behalf of its employees in India, the Philippines, Romania, Bulgaria and the Czech Republic:

Three months ended June 30, 2015	$	1,465
Three months ended June 30, 2014	$	1,463
Six months ended June 30, 2015	$	2,930
Six months ended June 30, 2014	$	2,861