OPERATING SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2014

Revenues from External Customers and Segment Operating Profit before Unallocated Expenses

Revenues from external customers and segment operating profit, before unallocated expenses, for the North America, Europe, Russia and Other reportable segments for the three months ended March 31, 2014 and 2013, were as follows:

	Three Months Ended March 31,
	2014			2013
Total segment revenues:
North America	$	80,198		$	63,057
Europe		67,659			46,153
Russia		10,748			12,353
Other		1,392			2,613
Total segment revenues	$	159,997		$	124,176
Segment operating profit:
North America	$	18,197		$	14,181
Europe		14,135			8,371
Russia		(1,135	)		632
Other		(1,318	)		84
Total segment operating profit	$	29,879		$	23,268

Reconciliation of Segment Revenues and Operating Profit to Consolidated Income Before Provision for Income Taxes

Reconciliation of segment revenues and operating profit to consolidated income before provision for income taxes is presented below:

	Three Months Ended March 31,
	2014			2013
Total segment revenues	$	159,997		$	124,176
Unallocated revenue		387			22
Revenues	$	160,384		$	124,198

Total segment operating profit:	$	29,879		$	23,268
Unallocated amounts:
Other revenues		387			22
Stock-based compensation expense		(3,208	)		(2,576	)
Non-corporate taxes		(546	)		(820	)
Professional fees		(1,314	)		(1,350	)
Depreciation and amortization		(655	)		(715	)
Bank charges		(247	)		(332	)
Other corporate expenses		(2,439	)		(1,961	)
Income from operations		21,857			15,536
Interest and other income, net		976			630
Foreign exchange loss		(1,241	)		(499	)
Income before provision for income taxes	$	21,592		$	15,667

Geographical Information of Long-Lived Assets Based on Physical Location

Management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably among the segments. Geographical information about the Company’s long-lived assets based on physical location of the assets is as follows:

	March 31, 2014		December 31, 2013
Belarus	$	38,924	$	38,697
Ukraine		5,544		5,525
Russia		3,027		3,414
Hungary		2,592		2,644
United States		1,983		2,217
Other		1,002		818
Total	$	53,072	$	53,315

Revenues by Client Location

Information about the Company’s revenues by client location is as follows:

	Three Months Ended March 31,
	2014		2013
United States	$	69,136	$	57,450
United Kingdom		34,244		27,068
Switzerland		20,532		9,280
Russia		10,390		11,738
Canada		9,981		5,425
Germany		6,132		4,533
Sweden		2,312		1,255
Netherlands		2,118		2,386
Kazakhstan		1,242		2,465
Belgium		641		—
France		373		—
Italy		223		9
Norway		189		—
Ukraine		165		188
Spain		106		632
Other locations		633		331
Reimbursable expenses and other revenues		1,967		1,438
Revenues	$	160,384	$	124,198

Revenues by Service Offering

Information about the Company’s revenues by service offering is as follows:

	Three Months Ended March 31,
	2014		2013
Software development	$	110,687	$	83,780
Application testing services		31,770		24,153
Application maintenance and support		11,378		10,839
Infrastructure services		3,754		3,410
Licensing		828		578
Reimbursable expenses and other revenues		1,967		1,438
Revenues	$	160,384	$	124,198

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details