Description of Business and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Schedule of Revenue by Product/Service Groups

Presented in the table below is the breakout of our revenue streams for each of those product/service groups for the three and six months ended June 30, 2012 and 2011.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollar amounts in thousands)	2012		2011		2012		2011
Exchanges	$	38,182	$	32,222	$	72,828	$	63,287
Broker Systems	4,422		4,824		9,176		8,666
Business Process Outsourcing (“BPO”)	3,890		3,753		7,461		7,372
Carrier Systems	1,222		1,468		2,078		2,992
Totals	$	47,716	$	42,267	$	91,543	$	82,317

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Additional information regarding the Company's assets and liabilities that are measured at fair value on a recurring basis is presented in the following table:

	Fair Values at Reporting Date Using*
Descriptions	Balance at June 30, 2012		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets
Available-for-sale securities:
Commercial bank certificates of deposits	$	1,458	$	1,458	$	—	$	—
Total assets measured at fair value	$	1,458	$	1,458	$	—	$	—
Liabilities
Derivatives:
Common share-based put option (a)	$	1,114	$	—	$	1,114	$	—
Foreign exchange contracts (b)	$	—	$	—	$	—	$	—
Contingent accrued earn-out acquisition consideration (c)	20,907		—		—		20,907
Total liabilities measured at fair value	$	22,021	$	—	$	1,114	$	20,907
(a) In connection with the acquisition of PlanetSoft effective June 1, 2012, Ebix issued a put option to the PlanetSoft's three shareholders. The put option, which expires in June 2014, is exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, which if exercised would enable them to sell the underlying 296,560 shares of Ebix common stock they received as part of the purchase consideration, back to the Company at a price of $16.86 per share, which represents a 10% discount off of the per-share value established on the effective date of the closing of Ebix's acquisition of PlanetSoft. In accordance with the relevant authoritative accounting literature a portion of the total purchase consideration was allocated to this put liability based on its initial fair value, which was determined to be $1.4 million using a Black-Scholes model. The inputs used in the valuation of the put option include term, stock price volatility, current stock price, exercise price, and the risk free rate of return.
(b) The market valuation approach is applied and the valuation inputs include foreign currency exchange spot rates, forward premiums, forward foreign currency exchange rates, term, and maturity dates. As of June 30, 2012 all the companies derivative instruments in the form of foreign currency hedge instruments had been settled.
(c) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments.
* During the six months ended June 30, 2012 there were no transfers between fair value levels 1, 2 or 3.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the six months ending June 30, 2012:

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Contingent Liability for Accrued Earn-out Acquisition Consideration
	(in thousands)
Beginning balance at January 1, 2012	$	7,590
Total remeasurement adjustments:
(Gains) or losses included in earnings **	104
(Gains) or losses recorded against goodwill	—
Foreign currency translation adjustments ***	(309		)
Acquisitions and settlements
Business acquisitions	15,568
Settlements	(2,046		)
Ending balance at June 30, 2012****	$	20,907
The amount of total (gains) or losses for the year included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at year-end.	$	—
** recorded as an adjustment to reported general and administrative expenses
*** recorded as a component of other comprehensive income within stockholders' equity
**** Short term portion of $5.84 million is recorded in Accounts payable and accrued liabilities in the currently liability section of the Condensed Consolidated Balance Sheets

Schedule of Goodwill

Changes in the carrying amount of goodwill for the six months ended June 30, 2012 are as follows:

	(In thousands)
Beginning Balance (December 31, 2011)	$	259,218
Additions, net (see Note 3)	61,421
Foreign currency translation adjustments	(401		)
Ending Balance (June 30, 2012)	$	320,238

Schedule of Finite-Lived Intangible Assets by Major Class, Estimated Useful Lives

We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows:

Category	Life (yrs)
Customer relationships	7-15
Developed technology	3–20
Trademarks	3–15
Non-compete agreements	5
Database	10

Schedule of Intangible Assets, Excluding Goodwill

The carrying value of finite-lived and indefinite-lived intangible assets at June 30, 2012 and December 31, 2011 are as follows:

	June 30, 2012			December 31, 2011
	(In thousands)
Finite-lived intangible assets:
Customer relationships	$	54,132		$	40,289
Developed technology	12,798			11,640
Trademarks	2,188			2,188
Non-compete agreements	418			418
Backlog	140			140
Database	211			207
Total intangibles	69,887			54,882
Accumulated amortization	(19,035		)	(16,496		)
Finite-lived intangibles, net	$	50,852		$	38,386
Indefinite-lived intangibles:
Customer/territorial relationships	$	30,798		$	30,453