ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 82-0572194 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
280 PARK AVENUE, 38TH FLOOR, NEW YORK, NEW YORK | 10017 | |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
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4. | |||
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1A. | |||
2 | |||
3. | |||
4. | |||
5. | |||
6. | |||
June 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 93,113 | $ | 205,323 | |||
Short-term investments | 107,594 | 13,676 | |||||
Restricted cash | 1,537 | 1,872 | |||||
Accounts receivable, net | 111,383 | 92,650 | |||||
Prepaid expenses | 7,892 | 8,027 | |||||
Advance income tax, net | 5,568 | 2,432 | |||||
Other current assets | 16,685 | 15,219 | |||||
Total current assets | 343,772 | 339,199 | |||||
Fixed assets, net | 49,708 | 47,991 | |||||
Restricted cash | 3,277 | 3,319 | |||||
Deferred tax assets, net | 10,103 | 13,749 | |||||
Intangible assets, net | 47,278 | 52,733 | |||||
Goodwill | 171,035 | 171,535 | |||||
Other assets | 21,724 | 22,257 | |||||
Total assets | $ | 646,897 | $ | 650,783 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 4,491 | $ | 6,401 | |||
Short-term borrowings | 10,000 | 10,000 | |||||
Deferred revenue | 16,157 | 11,518 | |||||
Accrued employee cost | 33,644 | 44,526 | |||||
Accrued expenses and other current liabilities | 35,948 | 34,250 | |||||
Current portion of capital lease obligations | 221 | 384 | |||||
Total current liabilities | 100,461 | 107,079 | |||||
Long term borrowings | 35,000 | 60,000 | |||||
Capital lease obligations, less current portion | 252 | 278 | |||||
Non-current liabilities | 14,185 | 17,655 | |||||
Total liabilities | 149,898 | 185,012 | |||||
Commitments and contingencies (See Note 16) | |||||||
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued | — | — | |||||
Stockholders’ equity: | |||||||
Common stock, $0.001 par value; 100,000,000 shares authorized, 35,370,296 shares issued and 33,469,481 shares outstanding as of June 30, 2016 and 34,781,201 shares issued and 33,091,223 shares outstanding as of December 31, 2015 | 35 | 35 | |||||
Additional paid-in-capital | 268,506 | 254,052 | |||||
Retained earnings | 351,184 | 320,989 | |||||
Accumulated other comprehensive loss | (71,045 | ) | (67,325 | ) | |||
Total including shares held in treasury | 548,680 | 507,751 | |||||
Less: 1,900,815 shares as of June 30, 2016 and 1,689,978 shares as of December 31, 2015, held in treasury, at cost | (51,863 | ) | (42,159 | ) | |||
ExlService Holdings, Inc. stockholders’ equity | $ | 496,817 | $ | 465,592 | |||
Non-controlling interest | 182 | 179 | |||||
Total equity | $ | 496,999 | $ | 465,771 | |||
Total liabilities and equity | $ | 646,897 | $ | 650,783 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues, net | $ | 170,478 | $ | 155,621 | $ | 337,514 | $ | 299,131 | |||||||
Cost of revenues (exclusive of depreciation and amortization) | 112,026 | 100,478 | 220,405 | 193,603 | |||||||||||
Gross profit | 58,452 | 55,143 | 117,109 | 105,528 | |||||||||||
Operating expenses: | |||||||||||||||
General and administrative expenses | 21,148 | 19,990 | 41,766 | 38,611 | |||||||||||
Selling and marketing expenses | 12,798 | 11,844 | 26,252 | 23,087 | |||||||||||
Depreciation and amortization | 8,270 | 8,061 | 16,403 | 15,114 | |||||||||||
Total operating expenses | 42,216 | 39,895 | 84,421 | 76,812 | |||||||||||
Income from operations | 16,236 | 15,248 | 32,688 | 28,716 | |||||||||||
Foreign exchange gain | 1,363 | 1,022 | 1,832 | 2,156 | |||||||||||
Other income, net | 5,784 | 1,335 | 8,578 | 2,513 | |||||||||||
Income before income taxes | 23,383 | 17,605 | 43,098 | 33,385 | |||||||||||
Income tax expense | 7,008 | 5,531 | 12,903 | 11,744 | |||||||||||
Net income | $ | 16,375 | $ | 12,074 | $ | 30,195 | $ | 21,641 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.49 | $ | 0.36 | $ | 0.90 | $ | 0.65 | |||||||
Diluted | $ | 0.47 | $ | 0.35 | $ | 0.88 | $ | 0.63 | |||||||
Weighted-average number of shares used in computing earnings per share: | |||||||||||||||
Basic | 33,621,444 | 33,417,079 | 33,500,736 | 33,327,169 | |||||||||||
Diluted | 34,510,400 | 34,207,973 | 34,431,028 | 34,130,472 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 16,375 | $ | 12,074 | $ | 30,195 | $ | 21,641 | |||||||
Other comprehensive income/(loss): | |||||||||||||||
Unrealized gain/(loss) on effective cash flow hedges, net of taxes ($376), ($358), $27 and $95, respectively | (1,508 | ) | (1,116 | ) | 526 | 690 | |||||||||
Foreign currency translation adjustment | (5,401 | ) | (3,136 | ) | (4,368 | ) | (2,834 | ) | |||||||
Retirement benefits, net of taxes $15, $4, $20 and $10, respectively | 123 | 178 | 305 | 329 | |||||||||||
Reclassification adjustments | |||||||||||||||
Realized (gain)/loss on cash flow hedges, net of taxes ($156), $92, ($181) and $218, respectively(1) | (193 | ) | 132 | (225 | ) | 315 | |||||||||
Retirement benefits, net of taxes $1, $13, $2 and $16, respectively(2) | 21 | 40 | 42 | 92 | |||||||||||
Total other comprehensive loss | (6,958 | ) | (3,902 | ) | (3,720 | ) | (1,408 | ) | |||||||
Total comprehensive income | $ | 9,417 | $ | 8,172 | $ | 26,475 | $ | 20,233 |
(1) | These are reclassified to net income and are included in the foreign exchange gain/(loss) in the unaudited consolidated statements of income. See Note 7 to the consolidated financial statements. |
(2) | These are reclassified to net income and are included in the computation of net periodic pension costs in the unaudited consolidated statements of income. See Note 11 to the consolidated financial statements. |
Six months ended June 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 30,195 | $ | 21,641 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 16,403 | 15,114 | |||||
Stock-based compensation expense | 10,259 | 7,809 | |||||
Unrealized gain on short term investments | (2,984 | ) | (760 | ) | |||
Unrealized foreign exchange gain | (42 | ) | (1,386 | ) | |||
Deferred income taxes | 3,607 | 3,272 | |||||
Change in fair value of earn-out consideration | (4,060 | ) | — | ||||
Others, net | (67 | ) | (209 | ) | |||
Change in operating assets and liabilities (net of effect of acquisitions): | |||||||
Restricted cash | 314 | (1,197 | ) | ||||
Accounts receivable | (19,621 | ) | (10,013 | ) | |||
Prepaid expenses and other current assets | (1,177 | ) | (1,143 | ) | |||
Accounts payable | (1,427 | ) | (464 | ) | |||
Deferred revenue | 4,996 | 2,516 | |||||
Accrued employee costs | (10,282 | ) | (8,175 | ) | |||
Accrued expenses and other liabilities | 4,413 | (3,058 | ) | ||||
Advance income tax, net | (3,179 | ) | 3,625 | ||||
Other assets | (433 | ) | (405 | ) | |||
Net cash provided by operating activities | 26,915 | 27,167 | |||||
Cash flows from investing activities: | |||||||
Purchase of fixed assets | (14,872 | ) | (14,380 | ) | |||
Business acquisition (net of cash acquired) | — | (44,270 | ) | ||||
Purchase of short-term investments | (132,275 | ) | (71,863 | ) | |||
Proceeds from redemption of short-term investments | 41,179 | 6,001 | |||||
Net cash used for investing activities | (105,968 | ) | (124,512 | ) | |||
Cash flows from financing activities: | |||||||
Principal payments on capital lease obligations | (240 | ) | (358 | ) | |||
Proceeds from borrowings | — | 30,000 | |||||
Repayments of borrowings | (25,000 | ) | (10,000 | ) | |||
Payment of debt issuance costs | — | (74 | ) | ||||
Acquisition of treasury stock | (9,704 | ) | (5,105 | ) | |||
Proceeds from exercise of stock options | 4,195 | 2,366 | |||||
Net cash (used for)/provided by financing activities | (30,749 | ) | 16,829 | ||||
Effect of exchange rate changes on cash and cash equivalents | (2,408 | ) | (1,332 | ) | |||
Net decrease in cash and cash equivalents | (112,210 | ) | (81,848 | ) | |||
Cash and cash equivalents, beginning of period | 205,323 | 176,499 | |||||
Cash and cash equivalents, end of period | $ | 93,113 | $ | 94,651 |
• | Operations Management, and |
• | Analytics |
June 30, 2016 | December 31, 2015 | ||||||
Derivative instruments | $ | 3,027 | $ | 3,009 | |||
Advances to suppliers | 1,673 | 1,545 | |||||
Receivables from statutory authorities | 10,167 | 8,676 | |||||
Others | 1,818 | 1,989 | |||||
Other current assets | $ | 16,685 | $ | 15,219 |
June 30, 2016 | December 31, 2015 | ||||||
Accrued expenses | $ | 28,394 | $ | 26,238 | |||
Derivative instruments | 736 | 1,226 | |||||
Client liability account | 1,796 | 2,217 | |||||
Other current liabilities | 5,022 | 4,569 | |||||
Accrued expenses and other current liabilities | $ | 35,948 | $ | 34,250 |
June 30, 2016 | December 31, 2015 | ||||||
Derivative instruments | $ | 1,060 | $ | 1,132 | |||
Unrecognized tax benefits | 3,107 | 3,066 | |||||
Deferred rent | 6,937 | 6,515 | |||||
Retirement benefits | 1,441 | 1,441 | |||||
Other non-current liabilities | 1,640 | 5,501 | |||||
Non-current liabilities | $ | 14,185 | $ | 17,655 |
June 30, 2016 | December 31, 2015 | ||||||
Cumulative currency translation adjustments | $ | (72,431 | ) | $ | (68,063 | ) | |
Unrealized gain on cash flow hedges, net of taxes of $508 and $662 | 1,125 | 824 | |||||
Retirement benefits, net of taxes of ($179) and ($201) | 261 | (86 | ) | ||||
Accumulated other comprehensive loss | $ | (71,045 | ) | $ | (67,325 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest and dividend income* | $ | 2,261 | $ | 1,510 | $ | 4,483 | $ | 2,912 | |||||||
Interest expense | (343 | ) | (360 | ) | (728 | ) | (643 | ) | |||||||
Change in fair value of earn-out consideration** | 3,810 | — | 4,060 | — | |||||||||||
Other, net | 56 | 185 | 763 | 244 | |||||||||||
Other income, net | $ | 5,784 | $ | 1,335 | $ | 8,578 | $ | 2,513 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Numerators: | |||||||||||||||
Net income | $ | 16,375 | $ | 12,074 | $ | 30,195 | $ | 21,641 | |||||||
Denominators: | |||||||||||||||
Basic weighted average common shares outstanding | 33,621,444 | 33,417,079 | 33,500,736 | 33,327,169 | |||||||||||
Dilutive effect of share based awards | 888,956 | 790,894 | 930,292 | 803,303 | |||||||||||
Diluted weighted average common shares outstanding | 34,510,400 | 34,207,973 | 34,431,028 | 34,130,472 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.49 | $ | 0.36 | $ | 0.90 | $ | 0.65 | |||||||
Diluted | $ | 0.47 | $ | 0.35 | $ | 0.88 | $ | 0.63 | |||||||
Weighted average common shares considered anti-dilutive in computing diluted earnings per share | 59,455 | 62,084 | 130,103 | 116,922 |
• | Operations Management |
• | Analytics |
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | ||||||||||||||||||||||
Operations Management | Analytics | Total | Operations Management | Analytics | Total | ||||||||||||||||||
Revenues, net | $ | 130,869 | $ | 39,609 | $ | 170,478 | $ | 125,048 | $ | 30,573 | $ | 155,621 | |||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 86,482 | 25,544 | 112,026 | 80,809 | 19,669 | 100,478 | |||||||||||||||||
Gross profit | $ | 44,387 | $ | 14,065 | $ | 58,452 | $ | 44,239 | $ | 10,904 | $ | 55,143 | |||||||||||
Operating expenses | 42,216 | 39,895 | |||||||||||||||||||||
Foreign exchange gain and Other income, net | 7,147 | 2,357 | |||||||||||||||||||||
Income tax expense | 7,008 | 5,531 | |||||||||||||||||||||
Net income | $ | 16,375 | $ | 12,074 |
Six months ended June 30, 2016 | Six months ended June 30, 2015 | ||||||||||||||||||||||
Operations Management | Analytics | Total | Operations Management | Analytics | Total | ||||||||||||||||||
Revenues, net | $ | 258,939 | $ | 78,575 | $ | 337,514 | $ | 248,901 | $ | 50,230 | $ | 299,131 | |||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 170,090 | 50,315 | 220,405 | 160,538 | 33,065 | 193,603 | |||||||||||||||||
Gross profit | $ | 88,849 | $ | 28,260 | $ | 117,109 | $ | 88,363 | $ | 17,165 | $ | 105,528 | |||||||||||
Operating expenses | 84,421 | 76,812 | |||||||||||||||||||||
Foreign exchange gain and Other income, net | 10,410 | 4,669 | |||||||||||||||||||||
Income tax expense | 12,903 | 11,744 | |||||||||||||||||||||
Net income | $ | 30,195 | $ | 21,641 |
Operations Management | Analytics | Total | |||||||||
Balance at January 1, 2015 | $ | 122,814 | $ | 16,785 | $ | 139,599 | |||||
Goodwill arising from RPM acquisition | — | 33,155 | 33,155 | ||||||||
Currency translation adjustments | (1,219 | ) | — | (1,219 | ) | ||||||
Balance at December 31, 2015 | $ | 121,595 | $ | 49,940 | $ | 171,535 | |||||
Currency translation adjustments | (500 | ) | — | (500 | ) | ||||||
Balance at June 30, 2016 | $ | 121,095 | $ | 49,940 | $ | 171,035 |
As of June 30, 2016 | |||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Customer relationships | $ | 64,799 | $ | (28,163 | ) | $ | 36,636 | ||||
Developed technology | 12,234 | (5,370 | ) | 6,864 | |||||||
Trade names and trademarks | 5,670 | (2,973 | ) | 2,697 | |||||||
Leasehold benefits | 2,732 | (2,164 | ) | 568 | |||||||
Non-compete agreements | 2,045 | (1,532 | ) | 513 | |||||||
$ | 87,480 | $ | (40,202 | ) | $ | 47,278 |
As of December 31, 2015 | |||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Customer relationships | $ | 64,816 | $ | (24,215 | ) | $ | 40,601 | ||||
Developed technology | 12,234 | (4,363 | ) | 7,871 | |||||||
Trade names and trademarks | 5,670 | (2,683 | ) | 2,987 | |||||||
Leasehold benefits | 2,789 | (2,109 | ) | 680 | |||||||
Non-compete agreements | 2,045 | (1,451 | ) | 594 | |||||||
$ | 87,554 | $ | (34,821 | ) | $ | 52,733 |
Estimated amortization of intangible assets during the year ending June 30, | |||
2017 | $ | 10,858 | |
2018 | $ | 10,617 | |
2019 | $ | 10,391 | |
2020 | $ | 6,288 | |
2021 and thereafter | $ | 8,224 |
As of June 30, 2016 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets | |||||||||||||||
Money market and mutual funds* | $ | 105,947 | $ | — | $ | — | $ | 105,947 | |||||||
Derivative financial instruments | — | 3,602 | — | 3,602 | |||||||||||
Total | $ | 105,947 | $ | 3,602 | $ | — | $ | 109,549 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments | $ | — | $ | 1,796 | $ | — | $ | 1,796 | |||||||
Total | $ | — | $ | 1,796 | $ | — | $ | 1,796 | |||||||
As of December 31, 2015 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets | |||||||||||||||
Money market and mutual funds | $ | 118,478 | $ | — | $ | — | $ | 118,478 | |||||||
Derivative financial instruments | — | 4,184 | — | 4,184 | |||||||||||
Total | $ | 118,478 | $ | 4,184 | $ | — | $ | 122,662 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments | $ | — | $ | 2,358 | $ | — | $ | 2,358 | |||||||
Fair value of earn-out consideration | — | — | 4,060 | 4,060 | |||||||||||
Total | $ | — | $ | 2,358 | $ | 4,060 | $ | 6,418 |
June 30, 2016 | December 31, 2015 | ||||||
Other current assets: | |||||||
Foreign currency exchange contracts | $ | 2,795 | $ | 2,664 | |||
Other assets: | |||||||
Foreign currency exchange contracts | $ | 575 | $ | 1,175 | |||
Accrued expenses and other current liabilities: | |||||||
Foreign currency exchange contracts | $ | 682 | $ | 1,226 | |||
Other non current liabilities: | |||||||
Foreign currency exchange contracts | $ | 1,060 | $ | 1,132 |
June 30, 2016 | December 31, 2015 | |||||||
Other current assets: | ||||||||
Foreign currency exchange contracts | $ | 232 | $ | 345 | ||||
Accrued expenses and other current liabilities: | ||||||||
Foreign currency exchange contracts | $ | 54 | — |
Derivatives in Cash Flow Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) | Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) | Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||
Foreign exchange contracts | $ | (1,884 | ) | $ | (1,474 | ) | Foreign exchange gain/(loss) | $ | 349 | $ | (224 | ) | Foreign exchange gain/(loss) | $ | — | $ | — |
Derivatives not designated as Hedging Instruments | Amount of Gain/(Loss) Recognized in Income on Derivatives | |||||||||
Location of Gain or (Loss) Recognized in Income on Derivatives | 2016 | 2015 | ||||||||
Foreign exchange contracts | Foreign exchange gain/(loss) | $ | 999 | $ | (1,297 | ) |
Derivatives in Cash Flow Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion) | Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) | Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) | Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||
Foreign exchange contracts | $ | 553 | $ | 785 | Foreign exchange gain/(loss) | $ | 406 | $ | (533 | ) | Foreign exchange loss | $ | — | $ | — |
Derivatives not designated as Hedging Instruments | Amount of Gain/(Loss) Recognized in Income on Derivatives | |||||||||
Location of Gain or (Loss) Recognized in Income on Derivatives | 2016 | 2015 | ||||||||
Foreign exchange contracts | Foreign exchange gain/(loss) | $ | 2,728 | $ | 799 |
June 30, 2016 | December 31, 2015 | ||||||
Owned Assets: | |||||||
Network equipment, computers and software | $ | 101,957 | $ | 95,245 | |||
Leasehold improvements | 30,501 | 28,603 | |||||
Office furniture and equipment | 14,650 | 14,000 | |||||
Capital work in progress | 3,526 | 3,140 | |||||
Buildings | 1,178 | 1,202 | |||||
Land | 771 | 787 | |||||
Motor vehicles | 555 | 540 | |||||
153,138 | 143,517 | ||||||
Less: Accumulated depreciation and amortization | (103,866 | ) | (96,079 | ) | |||
$ | 49,272 | $ | 47,438 | ||||
Assets under capital leases: | |||||||
Leasehold improvements | $ | 839 | $ | 877 | |||
Office furniture and equipment | 110 | 136 | |||||
Motor vehicles | 744 | 806 | |||||
1,693 | 1,819 | ||||||
Less: Accumulated depreciation and amortization | (1,257 | ) | (1,266 | ) | |||
$ | 436 | $ | 553 | ||||
Fixed assets, net | $ | 49,708 | $ | 47,991 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Service cost | $ | 401 | $ | 415 | $ | 801 | $ | 838 | |||||||
Interest cost | 150 | 140 | 299 | 282 | |||||||||||
Expected return on plan assets | (104 | ) | (97 | ) | (208 | ) | (197 | ) | |||||||
Actuarial loss | 22 | 53 | 44 | 108 | |||||||||||
Net gratuity cost | $ | 469 | $ | 511 | $ | 936 | $ | 1,031 |
Change in Plan Assets | ||||
Plan assets at January 1, 2016 | $ | 4,923 | ||
Actual return | 218 | |||
Benefits paid | (451 | ) | ||
Effect of exchange rate changes | (99 | ) | ||
Plan assets at June 30, 2016 | $ | 4,591 |
Year ending June 30, | |||
2017 | $ | 287 | |
2018 | 143 | ||
2019 | 82 | ||
2020 | 45 | ||
Total minimum lease payments | 557 | ||
Less: amount representing interest | 84 | ||
Present value of minimum lease payments | 473 | ||
Less: current portion | 221 | ||
Long term capital lease obligation | $ | 252 |
Year ending June 30, | |||
2017 | $ | 9,069 | |
2018 | 7,601 | ||
2019 | 6,324 | ||
2020 | 3,096 | ||
2021 | 1,876 | ||
2022 and thereafter | 1,668 | ||
$ | 29,634 |
Balance as of January 1, 2016 | $ | 2,797 | |
Increases related to prior year tax positions | — | ||
Decreases related to prior year tax positions | — | ||
Increases related to current year tax positions | — | ||
Decreases related to current year tax positions | — | ||
Effect of exchange rate changes | (36 | ) | |
Balance as of June 30, 2016 | $ | 2,761 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Cost of revenue | $ | 788 | $ | 551 | $ | 2,053 | $ | 1,654 | |||||||
General and administrative expenses | 1,964 | 1,386 | 4,336 | 2,869 | |||||||||||
Selling and marketing expenses | 1,698 | 1,616 | 3,870 | 3,286 | |||||||||||
Total | $ | 4,450 | $ | 3,553 | $ | 10,259 | $ | 7,809 |
Number of Options | Weighted- Average Exercise Price | Aggregate Intrinsic Value | Weighted- Average Remaining Contractual Life (Years) | |||||||||
Outstanding at December 31, 2015 | 1,210,141 | $ | 16.31 | $ | 34,638 | 3.50 | ||||||
Granted | — | — | ||||||||||
Exercised | (267,280 | ) | 15.70 | |||||||||
Forfeited | — | — | ||||||||||
Outstanding at June 30, 2016 | 942,861 | $ | 16.48 | $ | 33,877 | 3.30 | ||||||
Vested and exercisable at June 30, 2016 | 942,861 | $ | 16.48 | $ | 33,877 | 3.30 |
Restricted Stock | Restricted Stock Units | ||||||||||||
Number | Weighted- Average Intrinsic Value | Number | Weighted- Average Intrinsic Value | ||||||||||
Outstanding at December 31, 2015* | 134,935 | $ | 35.27 | 1,228,287 | $ | 30.06 | |||||||
Granted | — | — | 393,916 | 48.65 | |||||||||
Vested | (15,057 | ) | 34.61 | (326,632 | ) | 28.69 | |||||||
Forfeited | — | — | (49,973 | ) | 31.08 | ||||||||
Outstanding at June 30, 2016* | 119,878 | $ | 35.36 | 1,245,598 | $ | 36.26 |
Revenue Based PRSUs | Market Condition Based PRSUs | ||||||||||||
Number | Weighted Avg Fair Value | Number | Weighted Avg Fair Value | ||||||||||
Outstanding at December 31, 2015 | 107,213 | $ | 30.88 | 207,212 | $ | 38.80 | |||||||
Granted | 59,861 | 48.57 | 59,859 | 67.94 | |||||||||
Vested | — | — | — | — | |||||||||
Forfeited | (4,500 | ) | 37.05 | (4,500 | ) | 56.85 | |||||||
Outstanding at June 30, 2016* | 162,574 | $ | 37.22 | 262,571 | $ | 45.14 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues, net | |||||||||||||||
United States | $ | 136,151 | $ | 122,840 | $ | 270,225 | $ | 234,705 | |||||||
United Kingdom | 28,863 | 27,453 | 56,291 | 53,288 | |||||||||||
Rest of World | 5,464 | 5,328 | 10,998 | 11,138 | |||||||||||
$ | 170,478 | $ | 155,621 | $ | 337,514 | $ | 299,131 |
June 30, 2016 | December 31, 2015 | ||||||
Fixed assets, net | |||||||
India | $ | 23,789 | $ | 23,415 | |||
United States | 11,079 | 10,680 | |||||
Philippines | 11,792 | 11,285 | |||||
Rest of World | 3,048 | 2,611 | |||||
$ | 49,708 | $ | 47,991 |
• | worldwide political, economic or business conditions; |
• | negative public reaction in the U.S. or elsewhere to offshore outsourcing; |
• | fluctuations in our earnings; |
• | our ability to attract and retain clients; |
• | our ability to successfully consummate or integrate strategic acquisitions; |
• | restrictions on immigration; |
• | our ability to hire and retain enough sufficiently trained employees to support our operations; |
• | our ability to grow our business or effectively manage growth and international operations; |
• | increasing competition in our industry; |
• | telecommunications or technology disruptions; |
• | our ability to withstand the loss of a significant customer ; |
• | regulatory, legislative and judicial developments, including changes to or the withdrawal of governmental fiscal incentives; |
• | technological innovation; |
• | political or economic instability in the geographies in which we operate; |
• | unauthorized disclosure of sensitive or confidential client and customer data; and |
• | adverse outcome of our disputes with the Indian tax authorities. |
• | Operations Management, and |
• | Analytics |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(dollars in millions) | (dollars in millions) | ||||||||||||||
Revenues, net | $ | 170.5 | $ | 155.6 | $ | 337.5 | $ | 299.1 | |||||||
Cost of revenues (exclusive of depreciation and amortization) | 112.0 | 100.5 | 220.4 | 193.6 | |||||||||||
Gross profit | 58.5 | 55.1 | 117.1 | 105.5 | |||||||||||
Operating expenses: | |||||||||||||||
General and administrative expenses | 21.1 | 20.0 | 41.8 | 38.6 | |||||||||||
Selling and marketing expenses | 12.8 | 11.8 | 26.3 | 23.1 | |||||||||||
Depreciation and amortization | 8.3 | 8.1 | 16.4 | 15.1 | |||||||||||
Total operating expenses | 42.2 | 39.9 | 84.5 | 76.8 | |||||||||||
Income from operations | 16.3 | 15.2 | 32.6 | 28.7 | |||||||||||
Foreign exchange gain | 1.4 | 1.0 | 1.8 | 2.2 | |||||||||||
Other income, net | 5.8 | 1.4 | 8.6 | 2.5 | |||||||||||
Income before income taxes | 23.5 | 17.6 | 43.0 | 33.4 | |||||||||||
Income tax expense | 7.0 | 5.5 | 12.9 | 11.8 | |||||||||||
Net income | $ | 16.5 | $ | 12.1 | $ | 30.1 | $ | 21.6 |
Three months ended June 30, | Percentage change | |||||||||||||
2016 | 2015 | Change | ||||||||||||
(dollars in millions) | ||||||||||||||
Operations Management | $ | 130.9 | $ | 125.0 | $ | 5.9 | 4.7 | % | ||||||
Analytics | 39.6 | 30.6 | 9.0 | 29.6 | % | |||||||||
Total revenues, net | $ | 170.5 | $ | 155.6 | $ | 14.9 | 9.5 | % |
Three months ended June 30, | Percentage change | |||||||||||||
2016 | 2015 | Change | ||||||||||||
(dollars in millions) | ||||||||||||||
Revenues, net | $ | 170.5 | $ | 155.6 | $ | 14.9 | 9.5 | % | ||||||
Cost of revenues | 112.0 | 100.5 | 11.5 | 11.5 | % | |||||||||
Gross profit | $ | 58.5 | $ | 55.1 | $ | 3.4 | 6.0 | % | ||||||
As a percentage of revenues | 34.3 | % | 35.4 | % |
Three months ended June 30, | Percentage change | |||||||||||||
2016 | 2015 | Change | ||||||||||||
(dollars in millions) | ||||||||||||||
General and administrative expenses | $ | 21.1 | $ | 20.0 | $ | 1.1 | 5.5 | % | ||||||
Selling and marketing expenses | 12.8 | 11.8 | 1.0 | 8.5 | % | |||||||||
Selling, general and administrative expenses | $ | 33.9 | $ | 31.8 | $ | 2.1 | 6.6 | % | ||||||
As a percentage of revenues | 19.9 | % | 20.5 | % |
Three months ended June 30, | Percentage change | |||||||||||||
2016 | 2015 | Change | ||||||||||||
(dollars in millions) | ||||||||||||||
Depreciation expense | $ | 5.6 | $ | 5.3 | $ | 0.3 | 5.7 | % | ||||||
Intangible amortization expense | 2.7 | 2.8 | (0.1 | ) | (3.6 | )% | ||||||||
Depreciation and amortization expense | $ | 8.3 | $ | 8.1 | $ | 0.2 | 2.6 | % | ||||||
As a percentage of revenues | 4.9 | % | 5.2 | % |
Three months ended June 30, | Percentage change | |||||||||||||
2016 | 2015 | Change | ||||||||||||
(dollars in millions) | ||||||||||||||
Interest and dividend income | $ | 2.3 | $ | 1.5 | $ | 0.8 | 53.3 | % | ||||||
Interest expense | (0.3 | ) | (0.4 | ) | 0.1 | 25.0 | % | |||||||
Change in fair value of earn-out consideration | 3.8 | — | 3.8 | 100.0 | % | |||||||||
Other, net | — | 0.2 | (0.2 | ) | (100.0 | )% | ||||||||
Other income, net | $ | 5.8 | $ | 1.3 | $ | 4.5 | 333.3 | % |
Six months ended June 30, | Percentage change | |||||||||||||
2016 | 2015 | Change | ||||||||||||
(dollars in millions) | ||||||||||||||
Operations Management | $ | 258.9 | $ | 248.9 | $ | 10.0 | 4.0 | % | ||||||
Analytics | 78.6 | 50.2 | 28.4 | 56.4 | % | |||||||||
Total revenues, net | $ | 337.5 | $ | 299.1 | $ | 38.4 | 12.8 | % |
Six months ended June 30, | Percentage change | |||||||||||||
2016 | 2015 | Change | ||||||||||||
(dollars in millions) | ||||||||||||||
Revenues, net | $ | 337.5 | $ | 299.1 | $ | 38.4 | 12.8 | % | ||||||
Cost of revenues | 220.4 | 193.6 | 26.8 | 13.8 | % | |||||||||
Gross profit | $ | 117.1 | $ | 105.5 | $ | 11.6 | 11.0 | % | ||||||
As a percentage of revenues | 34.7 | % | 35.3 | % |
Six months ended June 30, | Percentage change | |||||||||||||
2016 | 2015 | Change | ||||||||||||
(dollars in millions) | ||||||||||||||
General and administrative expenses | $ | 41.8 | $ | 38.6 | $ | 3.2 | 8.3 | % | ||||||
Selling and marketing expenses | 26.3 | 23.1 | 3.2 | 13.9 | % | |||||||||
Selling, general and administrative expenses | $ | 68.1 | $ | 61.7 | $ | 6.4 | 10.3 | % | ||||||
As a percentage of revenues | 20.2 | % | 20.6 | % |
Six months ended June 30, | Percentage change | |||||||||||||
2016 | 2015 | Change | ||||||||||||
(dollars in millions) | ||||||||||||||
Depreciation expense | $ | 11.0 | $ | 10.2 | $ | 0.8 | 7.8 | % | ||||||
Intangible amortization expense | 5.4 | 4.9 | 0.5 | 10.2 | % | |||||||||
Depreciation and amortization expense | $ | 16.4 | $ | 15.1 | $ | 1.3 | 8.5 | % | ||||||
As a percentage of revenues | 4.9 | % | 5.1 | % |
Six months ended June 30, | Percentage change | |||||||||||||
2016 | 2015 | Change | ||||||||||||
(dollars in millions) | ||||||||||||||
Interest and dividend income | $ | 4.5 | $ | 2.9 | $ | 1.6 | 55.2 | % | ||||||
Interest expense | (0.7 | ) | (0.6 | ) | (0.1 | ) | 16.7 | % | ||||||
Change in fair value of earn-out consideration | 4.1 | — | 4.1 | 100.0 | % | |||||||||
Other, net | 0.7 | 0.2 | 0.5 | 250.0 | % | |||||||||
Other income, net | $ | 8.6 | $ | 2.5 | $ | 6.1 | 241.4 | % |
Six months ended June 30, | |||||||
2016 | 2015 | ||||||
(dollars in millions) | |||||||
Opening cash and cash equivalents | $ | 205.3 | $ | 176.5 | |||
Net cash provided by operating activities | 26.9 | 27.2 | |||||
Net cash used for investing activities | (106.0 | ) | (124.5 | ) | |||
Net cash (used for) / provided by financing activities | (30.7 | ) | 16.8 | ||||
Effect of exchange rate changes | (2.4 | ) | (1.3 | ) | |||
Closing cash and cash equivalents | $ | 93.1 | $ | 94.7 |
Payment Due by Period | ||||||||||||||||||||
Less than | 1-3 | 4-5 | After | |||||||||||||||||
1 year | years | years | 5 years | Total | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Capital leases | $ | 0.3 | $ | 0.2 | $ | — | $ | — | $ | 0.5 | ||||||||||
Operating leases | 9.1 | 13.9 | 5.0 | 1.7 | 29.7 | |||||||||||||||
Purchase obligations | 4.1 | — | — | — | 4.1 | |||||||||||||||
Other obligations(a) | 2.1 | 2.9 | 1.7 | 2.0 | 8.7 | |||||||||||||||
Borrowings | ||||||||||||||||||||
Principal payments | 10.0 | — | 35.0 | — | 45.0 | |||||||||||||||
Interest Payments(b) | 1.0 | 1.7 | 0.2 | — | 2.9 | |||||||||||||||
Total contractual cash obligations(c) | $ | 26.6 | $ | 18.7 | $ | 41.9 | $ | 3.7 | $ | 90.9 |
(a) | Represents estimated payments under the Gratuity Plan. |
(b) | Interest on borrowings is calculated based on the interest rate on the outstanding borrowings as of June 30, 2016. |
(c) | Excludes $2.8 million related to uncertain tax positions, since the extent of the amount and timing of payment is currently not reliably estimable or determinable. |
Period | Total Number of Shares Purchased | Average Price Paid per share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||
April 1, 2016 through April 30, 2016(2) | 14,310 | $ | 48.99 | 12,831 | $ | 13,172,622 | ||||||||
May 1, 2016 through May 31, 2016 | 23,510 | 48.66 | 23,510 | 12,028,610 | ||||||||||
June 1, 2016 through June 30, 2016 | 19,831 | 50.65 | 19,831 | 11,024,145 | ||||||||||
Total | 57,651 | $ | 49.43 | 56,172 | $ | — |
Date: July 28, 2016 | EXLSERVICE HOLDINGS, INC. | ||
By: | /S/ VISHAL CHHIBBAR | ||
Vishal Chhibbar Chief Financial Officer (Duly Authorized Signatory, Principal Financial and Accounting Officer) |
31.1 | Certification of the Chief Executive Officer of ExlService Holdings, pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of the Chief Financial Officer of ExlService Holdings, pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of the Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification of the Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Scheme | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |
101.LAB | XBRL Taxonomy Extension Label Linkbase | |
101.PRE | XBRL Extension Presentation Linkbase | |
1. | I have reviewed this Quarterly Report of ExlService Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: July 28, 2016 | /s/ Rohit Kapoor |
Rohit Kapoor | |
Vice-Chairman and Chief Executive Officer |
1. | I have reviewed this Quarterly Report of ExlService Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: July 28, 2016 | /s/ Vishal Chhibbar |
Vishal Chhibbar | |
Chief Financial Officer |
(a) | the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(b) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Rohit Kapoor | |
Rohit Kapoor | |
Vice-Chairman and Chief Executive Officer | |
July 28, 2016 |
(a) | the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(b) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Vishal Chhibbar | |
Vishal Chhibbar | |
Chief Financial Officer | |
July 28, 2016 |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 25, 2016 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ExlService Holdings, Inc. | |
Entity Central Index Key | 0001297989 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Trading Symbol | EXLS | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 33,499,649 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 35,370,296 | 34,781,201 |
Common stock, shares outstanding (in shares) | 33,469,481 | 33,091,223 |
Treasury stock (in shares) | 1,900,815 | 1,689,978 |
Unaudited Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Statement [Abstract] | ||||
Revenues, net | $ 170,478 | $ 155,621 | $ 337,514 | $ 299,131 |
Cost of revenues (exclusive of depreciation and amortization) | 112,026 | 100,478 | 220,405 | 193,603 |
Gross profit | 58,452 | 55,143 | 117,109 | 105,528 |
Operating expenses: | ||||
General and administrative expenses | 21,148 | 19,990 | 41,766 | 38,611 |
Selling and marketing expenses | 12,798 | 11,844 | 26,252 | 23,087 |
Depreciation and amortization | 8,270 | 8,061 | 16,403 | 15,114 |
Total operating expenses | 42,216 | 39,895 | 84,421 | 76,812 |
Income from operations | 16,236 | 15,248 | 32,688 | 28,716 |
Other income/(expense) : | ||||
Foreign exchange gain | 1,363 | 1,022 | 1,832 | 2,156 |
Other income, net | 5,784 | 1,335 | 8,578 | 2,513 |
Income before income taxes | 23,383 | 17,605 | 43,098 | 33,385 |
Income tax expense | 7,008 | 5,531 | 12,903 | 11,744 |
Net income | $ 16,375 | $ 12,074 | $ 30,195 | $ 21,641 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.49 | $ 0.36 | $ 0.90 | $ 0.65 |
Diluted (in dollars per share) | $ 0.47 | $ 0.35 | $ 0.88 | $ 0.63 |
Weighted-average number of shares used in computing earnings per share: | ||||
Basic weighted average common shares outstanding (in shares) | 33,621,444 | 33,417,079 | 33,500,736 | 33,327,169 |
Diluted weighted average common shares outstanding (in shares) | 34,510,400 | 34,207,973 | 34,431,028 | 34,130,472 |
Unaudited 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 |
||||||
Statement of Comprehensive Income [Abstract] | |||||||||
Net income | $ 16,375 | $ 12,074 | $ 30,195 | $ 21,641 | |||||
Other comprehensive income/(loss): | |||||||||
Unrealized gain/(loss) on effective cash flow hedges, net of taxes ($376), ($358), $27 and $95, respectively | (1,508) | (1,116) | 526 | 690 | |||||
Foreign currency translation adjustment | (5,401) | (3,136) | (4,368) | (2,834) | |||||
Retirement benefits, net of taxes $15, $4, $20 and $10, respectively | 123 | 178 | 305 | 329 | |||||
Reclassification adjustments | |||||||||
Realized (gain)/loss on cash flow hedges, net of taxes ($156), $92, ($181) and $218, respectively | [1] | (193) | 132 | (225) | 315 | ||||
Retirement benefits, net of taxes $1, $13, $2 and $16, respectively | [2] | 21 | 40 | 42 | 92 | ||||
Total other comprehensive income | (6,958) | (3,902) | (3,720) | (1,408) | |||||
Total comprehensive income | $ 9,417 | $ 8,172 | $ 26,475 | $ 20,233 | |||||
|
Unaudited 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 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain/(loss) on effective cash flow hedges, taxes | $ (376) | $ (358) | $ 27 | $ 95 |
Retirement benefits, taxes | 15 | 4 | 20 | 10 |
Realized loss on cash flow hedges, taxes | 156 | (92) | 181 | (218) |
Retirement benefits, taxes | $ 1 | $ 13 | $ 2 | $ 16 |
Organization and Basis of Presentation |
6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Organization and Basis of Presentation | Organization and Basis of Presentation Organization ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the state of Delaware. ExlService Holdings, together with its subsidiaries (collectively, the “Company”), is a leading Operations Management and Analytics company that helps businesses enhance growth and profitability. Using its proprietary platforms, methodologies and tools the Company looks deeper to help companies improve global operations, enhance data-driven insights, increase customer satisfaction, and manage risk and compliance. The Company’s clients are located principally in the U.S. and the U.K. Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. Effective for the quarter and year ended December 31, 2015, the Company merged two of its operating segments (Operations Consulting and Finance Transformation, previously part of the Analytics and Business Transformation reportable segment) into the Consulting operating segment to reflect recent organizational changes. The Company has also revised its reportable segments to reflect management’s focus on the Analytics operating segment. All other operating segments have been aggregated into the Operations Management reportable segment. The Company’s reportable segments are as follows:
The segment information for all prior periods presented herein has been restated to conform to the current presentation. This change in segment presentation does not affect the Company’s consolidated statements of income, comprehensive income, balance sheets or statements of cash flows. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Principles of Consolidation The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The non-controlling interest represents the minority partner’s interest in the operations of ExlService Colombia S.A.S. ("Exl Colombia") and the profits associated with the minority partner’s interest in those operations, in the consolidated balance sheets and consolidated statements of income, respectively. The non-controlling interests in such operations for all the periods presented were insignificant and are included under general and administrative expenses in the unaudited consolidated statements of income. (b) Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the financial statements include, but are not limited to, allowance for doubtful receivables, service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete the fixed price contracts. (c) Other current assets Other current assets consists of the following:
(d) Accrued expenses and other current liabilities Accrued expenses and other current liabilities consists of the following:
(e) Non-current liabilities Non-current liabilities consists of the following:
(f) Accumulated Other Comprehensive Loss For the Company, accumulated other comprehensive loss consists of amortization of actuarial gain/(loss) on retirement benefits and changes in the cumulative foreign currency translation adjustments. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with ASC topic 815, "Derivatives and Hedging" ("ASC 815"). Changes in the fair values of contracts that are deemed effective are recorded as a component of accumulated other comprehensive loss until the settlement of those contracts. The balances as of June 30, 2016 and December 31, 2015 are as follows:
(g) Other Income, net Other income, net consists of the following:
* Includes unrealized gain of $1,459 and $2,984 on investments carried under ASC topic 825, "Financial Instruments" ("ASC 825"), fair value option for the three and six months ended June 30, 2016, respectively and $718 and $760, respectively, for the three and six months ending June 30, 2015. ** The Company recognized $3,810 and $4,060 of other income during the three and six months ended June 30, 2016 due to the changes in the fair value of the earn-out consideration related to its acquisition of RPM Direct, LLC and RPM Data Solutions, LLC (the "RPM acquisition"). Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers”. The new standard is effective for reporting periods beginning after December 15, 2017 and early adoption is not permitted. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions of the Company. ASU No. 2014-09 is effective for the Company in the first quarter of fiscal 2018 using either one of two methods: (i) retrospectively to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU No. 2014-09; or (ii) retrospectively with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU No. 2014-09. The Company is currently evaluating the impact of adoption and the implementation approach to be used. In January 2016, FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". This guidance makes targeted improvements to existing US GAAP for financial instruments, including requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requiring entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and requiring entities to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017. Early adoption of the own credit provision is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU No. 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU No. 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU No. 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and the implementation approach to be used. In March 2016, FASB issued ASU No. 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. An entity has the option to apply ASU No. 2016-05 on either a prospective basis or a modified retrospective basis. Early adoption is permitted. The adoption of ASU No. 2016-05 is not expected to have a material effect on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU No. 2016-08 clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted but all of the guidance must be adopted in the same period. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is to be deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendment should be applied through a modified retrospective approach. Early adoption as of the fiscal years beginning after December 15, 2018 is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents issued and outstanding at the reporting date, using the treasury stock method. Stock options, restricted stock and restricted stock units that are anti-dilutive are excluded from the computation of weighted average shares outstanding. The following table sets forth the computation of basic and diluted earnings per share:
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Segment Information |
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Segment Information | Segment Information The Company's operating segments are significant strategic business units that align its products and services with how it manages its business, approaches key markets and interacts with its clients. Effective for the quarter and year ended December 31, 2015, the Company merged two of its operating segments (Operations Consulting and Finance Transformation, previously part of the Analytics and Business Transformation reportable segment) into the Consulting operating segment to reflect recent organizational changes. The Company has also revised its reportable segments to reflect management’s focus on the Analytics operating segment. All the other operating segments have been aggregated into the Operations Management reportable segment. The new reportable segments are as follows:
The Company has restated the segment information for all prior periods presented herein to conform to the current presentation. This change in segment presentation does not affect the Company's consolidated statements of income, balance sheets or statements of cash flows. The chief operating decision maker (“CODM”) generally reviews operating segment revenues and cost of revenues. The Company does not allocate and therefore the CODM does not evaluate operating expenses, foreign exchange gain/loss and other income/loss, net and income taxes by segment. The Company’s operating assets are shared by multiple segments. The Company manages assets on a total company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. Revenues and cost of revenues for each of the three months ended June 30, 2016 and 2015 for the Company's Operations Management and Analytics segments, respectively, are as follows:
Revenues and cost of revenues for each of the six months ended June 30, 2016 and 2015 for the Company's Operations Management and Analytics segments, respectively, are as follows:
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Goodwill and Intangible Assets |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table sets forth details of the Company’s goodwill balance as of June 30, 2016:
Intangible Assets Information regarding the Company’s intangible assets is set forth below:
Amortization expense for the three months ended June 30, 2016 and 2015 was $2,718 and $2,808, respectively, and for the six months ended June 30, 2016 and 2015 was $5,433 and $4,867, respectively. The remaining weighted average life of intangible assets was 6.0 years for customer relationships, 4.3 years for developed technology, 5.9 years for trade names and trademarks excluding indefinite life trade names and trademarks, 2.9 years for leasehold benefits and 3.0 years for non-compete agreements. The Company has $900 of indefinite lived trade names and trademarks as of June 30, 2016 and December 31, 2015.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of June 30, 2016 and December 31, 2015. The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts.
* Includes short-term investments carried on fair value option under ASC 825 of $94,779 as of June 30, 2016. Derivative Financial Instruments: The Company’s derivative financial instruments consist primarily of foreign currency forward exchange contracts. Fair values for derivative financial instruments are based on independent sources including highly rated financial institutions and are classified as Level 2. See Note 7 to our unaudited consolidated financial statements contained herein for further details on Derivatives and Hedge Accounting. Fair value of earn-out consideration: The fair value measurement of earn-out consideration is determined using Level 3 inputs. The Company’s earn-out consideration represents a component of the total purchase consideration for the March 2015 RPM acquisition. The measurement is calculated using unobservable inputs based on the Company’s own assessment of achievement of certain performance goals by RPM during the 2015 and 2016 calendar years. As of December 31, 2015, the Company estimated the fair value of the earn out consideration to be $4,060, utilizing a Monte Carlo simulation. During the six months ended June 30, 2016, the Company re-estimated its earn-out liability utilizing a Monte Carlo simulation based on its assessment of the achievement of the performance goals of RPM during calendar year 2016 and accordingly reduced the liability to nil as of June 30, 2016. The Monte-Carlo simulation model simulates a range of possible performance levels and estimates the probabilities of the potential payouts. This model also incorporates a range of assumptions like discount rate, risk-free rate, assumed cost of debt, etc. |
Derivatives and Hedge Accounting |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedge Accounting | Derivatives and Hedge Accounting The Company uses derivative instruments and hedging transactions to mitigate exposure to foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates. The Company’s derivative financial instruments consist of forward foreign exchange contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold), that are designated effective and that qualify as cash flow hedges under ASC 815. The Company had outstanding cash flow hedges totaling $219,427 (including $5,100 of range forward contracts) as of June 30, 2016 and $230,894 as of December 31, 2015. The fair value of these cash flow hedges is included in the accumulated other comprehensive loss ("AOCI")on the Company's unaudited consolidated balance sheet. The Company also enters into foreign currency forward contracts to economically hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies. These derivatives do not qualify as fair value hedges under ASC No. 815. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/loss. The Company’s primary exchange rate exposure is with the Indian Rupee, the U.K. pound sterling and the Philippine peso. The Company also has exposure to Colombian pesos, Czech Koruna, Euro, South African ZAR and other local currencies in which it operates. Outstanding foreign currency forward contracts amounted to $59,868 and GBP 16,823 as of June 30, 2016 and amounted to $61,641 and GBP 13,256 as of December 31, 2015. The Company estimates that approximately $2,113 of net derivative gains included in AOCI could be reclassified into earnings within the next twelve months based on exchange rates prevailing as of June 30, 2016. At June 30, 2016, the maximum outstanding term of the cash flow hedges was forty-five months. The Company evaluates hedge effectiveness at the time a contract is entered into as well as on an ongoing basis. If during this time, a contract is deemed ineffective, the change in the fair value is recorded in the consolidated statements of income and is included in foreign exchange gain/(loss). For hedging positions that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings. There were no such significant amounts of gains or losses that were reclassified from AOCI into earnings during the three and six months ended June 30, 2016 and 2015. The following tables set forth the fair value of the foreign currency exchange contracts and their location on the unaudited consolidated financial statements: Derivatives designated as hedging instruments:
Derivatives not designated as hedging instruments:
The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended June 30, 2016 and 2015:
The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the six months ended June 30, 2016 and 2015:
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Fixed Assets |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Assets | Fixed Assets Fixed assets consist of the following:
Depreciation and amortization expense excluding amortization of acquisition-related intangibles for the three months ended June 30, 2016 and 2015 was $5,552, and $5,253, respectively, and for the six months ended June 30, 2016 and 2015 was $10,970 and $10,247, respectively. Capital work in progress represents advances paid towards acquisition of fixed assets and cost of fixed assets and internally generated software costs not yet ready to be placed in service. |
Capital Structure |
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Equity [Abstract] | |
Capital Structure | Capital Structure Common Stock The Company has one class of common stock outstanding. During the three months ended June 30, 2016 and 2015, the Company acquired 1,479 and 707 shares of common stock, respectively, from employees in connection with withholding tax payments related to the vesting of restricted stock for a total consideration of $76 and $24, respectively. The weighted average purchase price of $51.39 and $33.68, respectively, was the average of the high and low price of a share of the Company’s common stock on the Nasdaq Global Select Market on the trading day prior to the vesting date of the shares of restricted stock. During the six months ended June 30, 2016 and 2015, the Company acquired 16,027 and 13,573 shares of common stock, respectively, from employees in connection with withholding tax payments related to the vesting of restricted stock for a total consideration of $728 and $421, respectively. The weighted average purchase price of $45.44 and $30.99, respectively, was the average of the high and low price of a share of the Company’s common stock on the Nasdaq Global Select Market on the trading day prior to the vesting date of the shares of restricted stock. On December 30, 2014, the Company’s Board of Directors authorized up to an annual $20,000 common stock repurchase program (the “2014 Repurchase Program”), under which shares may be purchased by the Company from time to time from the open market and through private transactions during each of the fiscal years 2015 to 2017. During the three and six months ended June 30, 2016, the Company purchased 56,172 and 194,810 shares of its common stock, respectively, for an aggregate purchase price of approximately $2,773 and $8,975, respectively, including commissions, representing an average purchase price per share of $49.37 and $46.07, respectively, under the 2014 Repurchase program. During the three and six months ended June 30, 2015, the Company purchased 133,869 shares of its common stock for an aggregate purchase price of approximately $4,685 including commissions, representing an average purchase price per share of $35.00 under the 2014 Repurchase Program. Repurchased shares have been recorded as treasury shares and will be held until the Board of Directors designates that these shares be retired or used for other purposes. |
Borrowings |
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Debt Disclosure [Abstract] | |
Borrowings | Borrowings On October 24, 2014, the Company entered into a credit agreement (as amended, the “Credit Agreement”) with certain lenders and JPMorgan Chase Bank, N.A., as Administrative Agent. The Credit Agreement, as amended, provides for a $100,000 revolving credit facility (the “Credit Facility”), including a letter of credit sub-facility. The Credit Facility has a maturity date of October 24, 2019 and is voluntarily pre-payable from time to time without premium or penalty. Borrowings under the Credit Facility may be used for working capital, general corporate purposes and for acquisitions. The Company has outstanding debt of $45,000 and $70,000 as of June 30, 2016 and December 31, 2015, respectively, of which $10,000 is expected to be repaid within the next twelve months and is included under “short-term borrowings” in the unaudited consolidated balance sheets. The Credit Facility carried an effective interest rate of approximately 1.95% and 1.56% per annum, respectively during the three months ended June 30, 2016 and 2015, respectively. In connection with the financing, the Company incurred certain debt issuance costs, which are deferred and amortized as an adjustment to interest expense over the term of the Credit Facility. The unamortized debt issuance costs as of June 30, 2016 and December 31, 2015 were $320 and $368, respectively and are included under "other current assets" and "other assets" in the unaudited consolidated balance sheets. The obligations under the Credit Agreement are secured by all or substantially all of the assets of the Company and its material domestic subsidiaries. The Credit Agreement contains certain covenants including a restriction on indebtedness of the Company. As of June 30, 2016, the Company was in compliance with all covenants. |
Employee Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans The Company’s Gratuity Plans in India and the Philippines ("Gratuity Plan") provide for lump sum payment to vested employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities with regard to the Gratuity Plans are determined by actuarial valuation using the projected unit credit method. Current service costs for the Gratuity Plan are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees. Net gratuity cost includes the following components:
The Gratuity Plan in India is partially funded. The Company makes annual contributions to the employees' gratuity fund established with Life Insurance Corporation of India and HDFC Standard Life Insurance Company. They calculate the annual contribution required to be made by the Company and manage the Gratuity Plans, including any required payouts. Fund managers manage these funds on a cash accumulation basis and declare interest retrospectively on March 31 of each year. The Company earned a return of approximately 9.0% each on these Gratuity Plans for the years ended March 31, 2016 and 2015.
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 $475 and $383 during the three months ended June 30, 2016 and 2015, respectively, and $1,391 and $1,151 during the six months ended June 30, 2016 and 2015, respectively. During the three months ended June 30, 2016 and 2015, the Company contributed $1,566 and $1,465, respectively, and during the six months ended June 30, 2016 and 2015, the Company contributed $3,048 and $2,930, respectively, for various defined contribution plans on behalf of its employees in India, the Philippines, Romania, Bulgaria, Colombia, Singapore, South Africa and the Czech Republic. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company finances its use of certain motor vehicles under lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of June 30, 2016 are as follows:
The Company conducts its operations using facilities leased under non-cancelable operating lease agreements that expire at various dates. Future minimum lease payments under non-cancellable agreements expiring after June 30, 2016 are set forth below:
The operating leases are subject to renewal periodically and have scheduled rent increases. The Company recognizes rent on such leases on a straight line basis over the non-cancelable lease period determined under ASC topic 840, “Leases”. Rent expense under both cancelable and non-cancelable operating leases was $5,278 and $5,110 for the three months ended June 30, 2016 and 2015, respectively and $10,426 and $10,095, respectively for the six months ended June 30, 2016 and 2015. Deferred rent as of June 30, 2016 and December 31, 2015 was $7,534 and $7,066, respectively, and is included under “Accrued expenses and other current liabilities” and “Non-current liabilities” in the consolidated balance sheets. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company determines the tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. The Company recorded income tax expense of $7,008 and $5,531, respectively, for the three months ended June 30, 2016 and 2015. The effective tax rate decreased from 31.4% during the three months ended June 30, 2015 to 30.0% during the three months ended June 30, 2016. The effective tax rate decreased due to an increase in earnings in locations with lower tax rates as well as tax incentives, partially offset by the reversal of the earn-out liability of $3,810 in other income during the three months ended June 30, 2016 related to the Company's RPM acquisition. The Company recorded income tax expense of $12,903 and $11,744, respectively, for the six months ended June 30, 2016 and 2015. The effective tax rate decreased from 35.2% during the six months ended June 30, 2015 to 29.9% during the six months ended June 30, 2016. The decrease was the result of (i) higher income tax expense during the six months ended June 30, 2015 due to certain adjustments (resulting in an increase in income tax expense of $1,818) and (ii) an increase in earnings in the locations with lower tax rates as well as tax incentives. The decrease in effective tax rate was partially offset by the reversal of earn-out liability of $4,060 in other income during six months ended June 30, 2016 related to the Company's RPM acquisition. The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2016 through June 30, 2016:
The unrecognized tax benefits as of June 30, 2016 of $2,761 if recognized, would impact the effective tax rate. During the three months ended June 30, 2016 and 2015, the Company has recognized interest of $49 and $52, respectively, which are included in the income tax expense in the unaudited consolidated statements of income. As of June 30, 2016 and December 31, 2015, the Company has accrued approximately $1,346 and $1,269, respectively, in interest relating to unrecognized tax benefits. |
Stock Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | Stock Based Compensation The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income:
As of June 30, 2016, the Company had 1,975,484 shares available for grant under the 2015 Amendment and Restatement of the 2006 Omnibus Award Plan. Stock Options Stock option activity under the Company’s stock plans is shown below:
The unrecognized compensation cost for unvested options as of June 30, 2016 is nil. The Company did not grant any options during the three and six months ended June 30, 2016 and 2015. There were no options that vested during the three months ended June 30, 2016. The total grant date fair value of options vested during the six months ended June 30, 2016 was $706. The total grant date fair value of options vested during the three and six months ended June 30, 2015 was $44 and $1,170, respectively. Restricted Stock and Restricted Stock Units Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below:
* As of June 30, 2016 and December 31, 2015 restricted stock units vested for which the underlying common stock is yet to be issued are 169,238 and 149,364, respectively. As of June 30, 2016, unrecognized compensation cost of $40,648 is expected to be expensed over a weighted average period of 2.83 years. Performance Based Stock Awards Performance restricted stock unit (the "PRSU's") activity under the Company’s stock plans is shown below:
As of June 30, 2016, unrecognized compensation cost of $11,873 is expected to be expensed over a weighted average period of 1.96 years. |
Geographical Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographical Information | Geographical Information The Company attributes the revenues to regions based upon location of its customers.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Fixed Asset Commitments At June 30, 2016, the Company has committed to spend approximately $4,100 under agreements to purchase fixed assets. This amount is net of capital advances paid in respect of these purchases. Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the Software Technology Parks of India (“STPI”) scheme promulgated by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. The Company’s management believes, however, that these units have in the past satisfied and will continue to satisfy the required conditions. The Company’s operations centers in the Philippines are registered with the Philippine Economic Zone Authority (“PEZA”). The registration provides the Company with certain fiscal incentives on the import of capital goods and requires ExlService Philippines, Inc. to meet certain performance and investment criteria. The Company’s management believes that these centers have in the past satisfied and will continue to satisfy the required criteria. Contingencies U.S. and Indian transfer pricing regulations require that any international transaction involving associated enterprises be at an arm’s-length price. Accordingly, the Company determines the appropriate pricing for the international transactions among its associated enterprises on the basis of a detailed functional and economic analysis involving benchmarking against transactions among entities that are not under common control. The tax authorities have jurisdiction to review this arrangement and in the event that they determine that the transfer price applied was not appropriate, the Company may incur increased tax liability, including accrued interest and penalties. The Company is currently involved in disputes with the Indian tax authorities over the application of some of its transfer pricing policies for some of its subsidiaries. Further, the Company and a U.S. subsidiary are engaged in tax litigation with the income-tax authorities in India on the issue of permanent establishment. The aggregate disputed amount demanded by Indian tax authorities from the Company related to its transfer pricing issues for years ranging from tax years 2003 to 2013 and its permanent establishment issues ranging from tax years 2003 to 2007 as of June 30, 2016 and December 31, 2015 is $20,449 and $21,360, respectively, of which the Company has made payments or provided a bank guarantee to the extent of $14,198 and $14,668, respectively. Amounts paid as deposits in respect of such assessments aggregating to $12,236 and $12,665 as of June 30, 2016 and December 31, 2015, respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $1,962 and $2,003 as of June 30, 2016 and December 31, 2015, respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets as of June 30, 2016 and December 31, 2015. Based on advice from its Indian tax advisors, the facts underlying the Company’s position and its experience with these types of assessments, the Company believes that the probability that it will ultimately be found liable for these assessments is remote and accordingly has not accrued any amount with respect to these matters in its consolidated financial statements. The Company does not expect any impact from these assessments on its future income tax expense. It is possible that the Company might receive similar orders or assessments from tax authorities for subsequent years. Accordingly even if these disputes are resolved, the Indian tax authorities may still serve additional orders or assessments. |
Subsequent Event |
6 Months Ended |
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Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 1, 2016, the Company, together with its wholly-owned subsidiary ExlService (UK) Limited, purchased Liss Systems Limited ("Liss"), a company incorporated under the laws of England and Wales for a total consideration of GBP 5,500 (including cash of GBP 4,300 and restricted stock of GBP 1,200). Liss is a London-based provider of digital customer acquisition and policy administration solutions for the insurance industry. |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Preparation | The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. |
Principles of Consolidation | The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of the unaudited consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the financial statements include, but are not limited to, allowance for doubtful receivables, service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete the fixed price contracts. |
Accumulated Other Comprehensive Loss | For the Company, accumulated other comprehensive loss consists of amortization of actuarial gain/(loss) on retirement benefits and changes in the cumulative foreign currency translation adjustments. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with ASC topic 815, "Derivatives and Hedging" ("ASC 815"). Changes in the fair values of contracts that are deemed effective are recorded as a component of accumulated other comprehensive loss until the settlement of those contracts. |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers”. The new standard is effective for reporting periods beginning after December 15, 2017 and early adoption is not permitted. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions of the Company. ASU No. 2014-09 is effective for the Company in the first quarter of fiscal 2018 using either one of two methods: (i) retrospectively to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU No. 2014-09; or (ii) retrospectively with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU No. 2014-09. The Company is currently evaluating the impact of adoption and the implementation approach to be used. In January 2016, FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". This guidance makes targeted improvements to existing US GAAP for financial instruments, including requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requiring entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and requiring entities to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017. Early adoption of the own credit provision is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU No. 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU No. 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU No. 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and the implementation approach to be used. In March 2016, FASB issued ASU No. 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. An entity has the option to apply ASU No. 2016-05 on either a prospective basis or a modified retrospective basis. Early adoption is permitted. The adoption of ASU No. 2016-05 is not expected to have a material effect on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU No. 2016-08 clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted but all of the guidance must be adopted in the same period. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is to be deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendment should be applied through a modified retrospective approach. Early adoption as of the fiscal years beginning after December 15, 2018 is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets | Other current assets consists of the following:
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Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consists of the following:
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Summary of Non-current Liabilities | Non-current liabilities consists of the following:
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Schedule of Accumulated Other Comprehensive Income (Loss) | The balances as of June 30, 2016 and December 31, 2015 are as follows:
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Summary of Other Income, net | Other income, net consists of the following:
* Includes unrealized gain of $1,459 and $2,984 on investments carried under ASC topic 825, "Financial Instruments" ("ASC 825"), fair value option for the three and six months ended June 30, 2016, respectively and $718 and $760, respectively, for the three and six months ending June 30, 2015. ** The Company recognized $3,810 and $4,060 of other income during the three and six months ended June 30, 2016 due to the changes in the fair value of the earn-out consideration related to its acquisition of RPM Direct, LLC and RPM Data Solutions, LLC (the "RPM acquisition"). |
Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share:
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues and Cost of Revenues for Company's Operations Management and Analytics and Business Transformation Segments | Revenues and cost of revenues for each of the three months ended June 30, 2016 and 2015 for the Company's Operations Management and Analytics segments, respectively, are as follows:
Revenues and cost of revenues for each of the six months ended June 30, 2016 and 2015 for the Company's Operations Management and Analytics segments, respectively, are as follows:
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Goodwill and Intangible Assets (Tables) |
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Summary of Company's Goodwill | The following table sets forth details of the Company’s goodwill balance as of June 30, 2016:
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Summary of Company's Intangible Assets | Information regarding the Company’s intangible assets is set forth below:
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Estimated Amortization of Intangible Assets | The Company has $900 of indefinite lived trade names and trademarks as of June 30, 2016 and December 31, 2015.
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value | The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of June 30, 2016 and December 31, 2015. The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts.
* Includes short-term investments carried on fair value option under ASC 825 of $94,779 as of June 30, 2016. |
Derivatives and Hedge Accounting (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value of Foreign Currency Exchange Contracts | The following tables set forth the fair value of the foreign currency exchange contracts and their location on the unaudited consolidated financial statements: Derivatives designated as hedging instruments:
Derivatives not designated as hedging instruments:
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Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income | The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended June 30, 2016 and 2015:
The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the six months ended June 30, 2016 and 2015:
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Fixed Assets (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fixed Assets | Fixed assets consist of the following:
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Employee Benefit Plans (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Gratuity Cost | Net gratuity cost includes the following components:
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Change in Plan Assets |
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Lease Payments under Capital Leases | Future minimum lease payments under these capital leases as of June 30, 2016 are as follows:
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Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements | Future minimum lease payments under non-cancellable agreements expiring after June 30, 2016 are set forth below:
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Summary of Activity Related to Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2016 through June 30, 2016:
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Stock Based Compensation (Tables) |
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs Related to Company's Stock-Based Compensation Plan | The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income:
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Stock Based Compensation Stock Option Activity | Stock option activity under the Company’s stock plans is shown below:
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Restricted Stock Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Activity Under Company's Stock Plans | Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below:
* As of June 30, 2016 and December 31, 2015 restricted stock units vested for which the underlying common stock is yet to be issued are 169,238 and 149,364, respectively. |
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Performance Based Stock Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Activity Under Company's Stock Plans | Performance restricted stock unit (the "PRSU's") activity under the Company’s stock plans is shown below:
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Geographical Information (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues Based on Geographical Information | The Company attributes the revenues to regions based upon location of its customers.
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Fixed Assets, Net Based on Geographical Information |
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Organization and Basis of Presentation (Details) - operating_segment |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2015 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of operating segments merged | 2 | 2 |
Summary of Significant Accounting Policies - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Prepaid Expense and Other Assets, Current [Abstract] | ||
Derivative instruments | $ 3,027 | $ 3,009 |
Advances to suppliers | 1,673 | 1,545 |
Receivables from statutory authorities | 10,167 | 8,676 |
Others | 1,818 | 1,989 |
Other current assets | $ 16,685 | $ 15,219 |
Summary of Significant Accounting Policies - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 28,394 | $ 26,238 |
Derivative instruments | 736 | 1,226 |
Client liability account | 1,796 | 2,217 |
Other current liabilities | 5,022 | 4,569 |
Accrued expenses and other current liabilities | $ 35,948 | $ 34,250 |
Summary of Significant Accounting Policies - Summary of Non-current Liabilities (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Payables and Accruals [Abstract] | ||
Derivative instruments | $ 1,060 | $ 1,132 |
Unrecognized tax benefits | 3,107 | 3,066 |
Deferred rent | 6,937 | 6,515 |
Retirement benefits | 1,441 | 1,441 |
Other non-current liabilities | 1,640 | 5,501 |
Non-current liabilities | $ 14,185 | $ 17,655 |
Summary of Significant Accounting Policies - Summary of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity | $ 496,817 | $ 465,592 |
Taxes on unrealized gain on cash flow hedges | 508 | 662 |
Taxes on Retirement benefits | (179) | (201) |
Cumulative currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity | (72,431) | (68,063) |
Unrealized gain on cash flow hedges, net of taxes of $508 and $662 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity | 1,125 | 824 |
Retirement benefits, net of taxes of ($179) and ($201) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity | 261 | (86) |
Accumulated other comprehensive loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity | $ (71,045) | $ (67,325) |
Summary of Significant Accounting Policies - Summary of Other Income, net (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Other Nonoperating Income (Expense) [Abstract] | ||||
Interest and dividend income | $ 2,261 | $ 1,510 | $ 4,483 | $ 2,912 |
Interest expense | (343) | (360) | (728) | (643) |
Change in fair value of earn-out consideration | 3,810 | 0 | 4,060 | 0 |
Other, net | 56 | 185 | 763 | 244 |
Other income, net | 5,784 | 1,335 | 8,578 | 2,513 |
Unrealized gain on investments | 1,459 | $ 718 | 2,984 | 760 |
Changes in fair value of earn-out consideration | $ 3,810 | $ 4,060 | $ 0 |
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (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 |
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Numerators: | ||||
Net income | $ 16,375 | $ 12,074 | $ 30,195 | $ 21,641 |
Denominators: | ||||
Basic weighted average common shares outstanding (in shares) | 33,621,444 | 33,417,079 | 33,500,736 | 33,327,169 |
Dilutive effect of share based awards (in shares) | 888,956 | 790,894 | 930,292 | 803,303 |
Diluted weighted average common shares outstanding (in shares) | 34,510,400 | 34,207,973 | 34,431,028 | 34,130,472 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.49 | $ 0.36 | $ 0.90 | $ 0.65 |
Diluted (in dollars per share) | $ 0.47 | $ 0.35 | $ 0.88 | $ 0.63 |
Weighted average common shares considered anti-dilutive in computing diluted earnings per share (in shares) | 59,455 | 62,084 | 130,103 | 116,922 |
Segment Information - Additional Information (Detail) - operating_segment |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2015 |
|
Segment Reporting [Abstract] | ||
Number of operating segments merged | 2 | 2 |
Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Goodwill [Roll Forward] | ||
Beginning Balance | $ 171,535 | $ 139,599 |
Currency translation adjustments | (500) | (1,219) |
Ending Balance | 171,035 | 171,535 |
RPM Direct LLC and RPM Data Solutions LLC | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | 33,155 | |
Operating Segments | Operations Management | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 121,595 | 122,814 |
Currency translation adjustments | (500) | (1,219) |
Ending Balance | 121,095 | 121,595 |
Operating Segments | Operations Management | RPM Direct LLC and RPM Data Solutions LLC | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | 0 | |
Operating Segments | Analytics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 49,940 | 16,785 |
Ending Balance | $ 49,940 | 49,940 |
Operating Segments | Analytics | RPM Direct LLC and RPM Data Solutions LLC | ||
Goodwill [Roll Forward] | ||
Goodwill arising from acquisition | $ 33,155 |
Goodwill and Intangible Assets - Estimated Amortization of Intangible Assets (Detail) $ in Thousands |
Jun. 30, 2016
USD ($)
|
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Business Combinations [Abstract] | |
2017 | $ 10,858 |
2018 | 10,617 |
2019 | 10,391 |
2020 | 6,288 |
2021 and thereafter | $ 8,224 |
Fixed Assets - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 5,552 | $ 5,253 | $ 10,970 | $ 10,247 |
Borrowings - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Dec. 31, 2015 |
Oct. 24, 2014 |
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Credit Facilities [Line Items] | |||||
Other short-term borrowings | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||
Revolving Credit Facility | |||||
Credit Facilities [Line Items] | |||||
Revolving credit facility | 45,000,000 | $ 45,000,000 | 70,000,000 | $ 100,000,000 | |
Credit facility expiration date | Oct. 24, 2019 | ||||
Other short-term borrowings | $ 10,000,000 | $ 10,000,000 | |||
Line of credit interest rate during period (as a percent) | 1.95% | 1.56% | |||
Unamortized debt issuance costs | $ 320,000 | $ 320,000 | $ 368,000 |
Employee Benefit Plans - Net Gratuity Cost (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Compensation and Retirement Disclosure [Abstract] | ||||
Service cost | $ 401 | $ 415 | $ 801 | $ 838 |
Interest cost | 150 | 140 | 299 | 282 |
Expected return on plan assets | (104) | (97) | (208) | (197) |
Actuarial loss | 22 | 53 | 44 | 108 |
Net gratuity cost | $ 469 | $ 511 | $ 936 | $ 1,031 |
Employee Benefit Plans - Change in Plan Assets (Detail) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Plan assets at January 1, 2016 | $ 4,923 |
Actual return | 218 |
Benefits paid | (451) |
Effect of exchange rate changes | (99) |
Plan assets at June 30, 2016 | $ 4,591 |
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Compensation and Retirement Disclosure [Abstract] | ||||||
Expected return on plan assets (as a percent) | 9.00% | 9.00% | ||||
Percentage of discretionary contributions towards 401(k) Plan, Maximum (as a percent) | 3.00% | 3.00% | ||||
Company's contribution to the 401(k) Plan | $ 475 | $ 383 | $ 1,391 | $ 1,151 | ||
Contribution to various defined contribution plans | $ 1,566 | $ 1,465 | $ 3,048 | $ 2,930 |
Leases - Future Minimum Lease Payments under Capital Leases (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Leases [Abstract] | ||
2017 | $ 287 | |
2018 | 143 | |
2019 | 82 | |
2020 | 45 | |
Total minimum lease payments | 557 | |
Less: amount representing interest | 84 | |
Present value of minimum lease payments | 473 | |
Less: current portion | 221 | $ 384 |
Long term capital lease obligation | $ 252 | $ 278 |
Leases - Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring After December 31, 2014 (Detail) $ in Thousands |
Jun. 30, 2016
USD ($)
|
---|---|
Leases [Abstract] | |
2017 | $ 9,069 |
2018 | 7,601 |
2019 | 6,324 |
2020 | 3,096 |
2021 | 1,876 |
2022 and thereafter | 1,668 |
Total operating lease payments | $ 29,634 |
Leases - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Leases [Abstract] | |||||
Rent expense under both cancelable and non-cancelable operating leases | $ 5,278 | $ 5,110 | $ 10,426 | $ 10,095 | |
Deferred rent | $ 7,534 | $ 7,534 | $ 7,066 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 7,008 | $ 5,531 | $ 12,903 | $ 11,744 | |
Effective tax rates (as a percent) | 30.00% | 31.40% | 29.90% | 35.20% | |
Income tax reconciliation, reversal of non-taxable earn-out liability | $ 3,810 | $ (4,060) | |||
Reversal of unrecognized tax benefit | 0 | $ 1,818 | |||
Unrecognized tax benefits | 2,761 | 2,761 | $ 2,797 | ||
Recognized interest and penalties | 49 | $ 52 | |||
Accrued interest on unrecognized tax benefits | $ 1,346 | $ 1,346 | $ 1,269 |
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of January 1, 2016 | $ 2,797 | |
Increases related to prior year tax positions | 0 | |
Decreases related to prior year tax positions | 0 | $ (1,818) |
Increases related to current year tax positions | 0 | |
Decreases related to current year tax positions | 0 | |
Effect of exchange rate changes | (36) | |
Balance as of June 30, 2016 | $ 2,761 |
Stock Based Compensation - Costs Related to Company's Stock-Based Compensation Plan (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expenses | $ 4,450 | $ 3,553 | $ 10,259 | $ 7,809 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expenses | 788 | 551 | 2,053 | 1,654 |
General and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expenses | 1,964 | 1,386 | 4,336 | 2,869 |
Selling and marketing expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expenses | $ 1,698 | $ 1,616 | $ 3,870 | $ 3,286 |
Stock Based Compensation - Additional Information (Detail) |
Jun. 30, 2016
shares
|
---|---|
2015 Stock Options Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant (in shares) | 1,975,484 |
Stock Based Compensation - Stock Options Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (in shares) | 0 | 0 | 0 | 0 |
Number of shares vested (in shares) | 0 | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee service share-based compensation, nonvested awards, compensation not yet recognized, stock options | $ 0 | $ 0 | ||
Number of shares granted (in shares) | 0 | |||
Total grant date fair value of option vested in period | $ 44 | $ 706 | $ 1,170 |
Stock Based Compensation - Restricted Stock and RSU Additional Information (Details) - Restricted Stock and Restricted Stock Units $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 40,648 |
Cost not yet recognized, period for recognition (in years) | 2 years 9 months 29 days |
Stock Based Compensation - Performance Based Stock Awards Additional Information (Details) - Performance Based Stock Awards $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 11,873 |
Cost not yet recognized, period for recognition (in years) | 1 year 11 months 16 days |
Geographical Information - Revenues Based on Geographical Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Revenues, net | ||||
Revenues, net | $ 170,478 | $ 155,621 | $ 337,514 | $ 299,131 |
United States | ||||
Revenues, net | ||||
Revenues, net | 136,151 | 122,840 | 270,225 | 234,705 |
United Kingdom | ||||
Revenues, net | ||||
Revenues, net | 28,863 | 27,453 | 56,291 | 53,288 |
Rest of World | ||||
Revenues, net | ||||
Revenues, net | $ 5,464 | $ 5,328 | $ 10,998 | $ 11,138 |
Geographical Information - Fixed Assets, Net Based on Geographical Information (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fixed assets, net | ||
Fixed assets, net | $ 49,708 | $ 47,991 |
India | ||
Fixed assets, net | ||
Fixed assets, net | 23,789 | 23,415 |
United States | ||
Fixed assets, net | ||
Fixed assets, net | 11,079 | 10,680 |
Philippines | ||
Fixed assets, net | ||
Fixed assets, net | 11,792 | 11,285 |
Rest of World | ||
Fixed assets, net | ||
Fixed assets, net | $ 3,048 | $ 2,611 |
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments, net of advances | $ 4,100 | |
Export-oriented units established (as a percent) | 100.00% | |
Transfer pricing issues starting period (year) | 2003 | |
Transfer pricing issues ending period (year) | 2013 | |
Permanent establishment issues starting period (year) | 2003 | |
Permanent establishment issues ending period (year) | 2007 | |
Aggregate disputed amount amount related to transfer pricing and permanent establishment | $ 20,449 | $ 21,360 |
Total bank guarantees and deposits in respect of contingencies | 14,198 | 14,668 |
Amounts paid as deposits in respect of contingencies | 12,236 | 12,665 |
Bank guarantee issued | $ 1,962 | $ 2,003 |
Subsequent Event - Additional Information (Details) - Subsequent Event - Liss £ in Thousands |
Jul. 01, 2016
GBP (£)
|
---|---|
Business Acquisition [Line Items] | |
Total consideration | £ 5,500 |
Cash payment | 4,300 |
Restricted Stock | |
Business Acquisition [Line Items] | |
Equity interests issued and issuable | £ 1,200 |
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