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

6 Months Ended

Jun. 30, 2020

Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

Revenue from External Customers by Geographic Areas [Table Text Block]

Disaggregation of Revenue

The following tables present revenue disaggregated by primary geographical regions and product/service channels for the three and six months ended June 30, 2020 and 2019:



	Three Months Ended June 30,				Six Months Ended June 30,
Revenue:	2020		2019		2020		2019
	(In thousands)
India*	$	52,635	$	73,909	$	126,550	$	146,817
United States	41,714		45,068		83,626		91,143
Australia	7,399		8,730		15,585		17,355
Latin America	3,577		4,974		7,814		8,996
Europe	3,249		3,634		6,530		7,421
Indonesia*	179		2,627		2,321		5,172
Singapore*	795		2,015		2,048		4,144
Philippines*	253		1,347		1,529		2,497
Canada	1,119		1,258		2,233		2,309
New Zealand	382		488		818		1,010
United Arab Emirates*	10		225		134		335
	$	111,312	$	144,275	$	249,188	$	287,199

*Primarily India led businesses for which total revenue was $53.2 million and $131.1 million for the three months and six months ended June 30, 2020, respectively, and $78.9 million and $156.7 million in the three months and six months ended June 30, 2019, respectively.

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 channels for the three and six months ended June 30, 2020 and 2019.



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
	(In thousands)
EbixCash Exchanges	53,240		78,948		$	131,095	$	156,685
Insurance Exchanges	42,959		46,593		86,960		94,608
Risk Compliance Solutions	15,113		18,734		31,133		35,906
Totals	$	111,312	$	144,275	$	249,188	$	287,199

Capitalized Contract Cost [Table Text Block]

At June 30, 2020 and December 31, 2019, the Company had $681 thousand and $734 thousand, respectively, of contract costs in “Other current assets” and $1.0 million and $1.2 million, respectively, in “Other assets” on the Company's Condensed Consolidated Balance Sheets.



	June 30, 2020			December 31, 2019
	(Unaudited)
	(In thousands)
Balance, beginning of period	$	1,897		$	2,238
Costs recognized from the beginning balance	(400		)	(708		)
Additions, net of costs recognized	217			367
Balance, end of period	$	1,714		$	1,897

Schedule of Contract Liabilities

The Company records contract liabilities when it receives payments or invoices in advance of the performance of services. A significant portion of this balance relates to contracts where the customer has paid in advance for the use of the Company's SaaS platforms over a specified period of time. These advanced payments are recognized as the related performance obligation is fulfilled (generally less than one year). Part of the Company's performance obligation for these contracts consists of the requirement to provide customers with continued access to, and use of the SaaS platforms and associated customizations. Without continued access to the SaaS platform, the customizations have no separate benefit to the customer. Customers simultaneously receive and consume the benefits as we provide access over time. The remaining portion of the contract liabilities balance consists primarily of customer-specific customizations that are not distinct from related performance obligations that transfer over time. This portion is recognized over the expected useful life of the customizations.



	June 30, 2020			December 31, 2019
	(Unaudited)
	(In thousands)
Balance, beginning of period	$	37,253		$	44,660
Revenue recognized from beginning balance	(19,040		)	(31,507		)
Additions from business acquisitions	—			769
Additions, net of revenue recognized and currency translation	18,134			23,331
Balance, end of period	$	36,347		$	37,253

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 tables:



	Fair Values at Reporting Date Using*
Descriptions	Balance, June 30, 2020		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
Commercial bank certificates of deposits ($242 thousand is recorded in the long term asset section of the Condensed Consolidated Balance Sheets in "Other Assets")	$	31,599	$	31,599	$	—	$	—
Mutual funds (recorded in the long term asset section of the Condensed Consolidated Balance Sheets in "Other Assets")	560		560		—		—
Total assets measured at fair value	$	32,159	$	32,159	$	—	$	—

Liabilities
Contingent accrued earn-out acquisition consideration (a)	$	6,122	$	—	$	—	$	6,122
Total liabilities measured at fair value	$	6,122	$	—	$	—	$	6,122

(a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected revenues and cash flows, rate of return, and probability assessments.
* During the six months ended June 30, 2020, there were no transfers between fair value Levels 1, 2 or 3.



	Fair Values at Reporting Date Using*
Descriptions	Balance, December 31, 2019		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
Commercial bank certificates of deposits ($50 thousand is recorded in the long term asset section of the Condensed Consolidated Balance Sheets in "Other Assets")	$	4,493	4,493		$	—	$	—
Mutual funds	1,058		1,058		—		—
Total assets measured at fair value	$	5,551	$	5,551	$	—	$	—

Liabilities
Contingent accrued earn-out acquisition consideration (a)	$	10,095	$	—	$	—	$	10,095
Total liabilities measured at fair value	$	10,095	$	—	$	—	$	10,095

(a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected revenues and cash flows, rate of return, and probability assessments.
* During the year ended December 31, 2019, 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 ended June 30, 2020 and during the year ended December 31, 2019:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Contingent Liability for Accrued Earn-out Acquisition Consideration	June 30, 2020			December 31, 2019
	(In thousands)

Beginning balance	$	10,095		$	24,976

Total remeasurement adjustments:
Gains included in earnings **	(3,308		)	(16,543		)
Foreign currency translation adjustments ***	(665		)	(260		)

Acquisitions and settlements
Business acquisitions	—			1,922

Ending balance	$	6,122		$	10,095

The amount of total (gains) losses for the period included in earnings or changes to net assets, attributable to changes in unrealized gains relating to assets or liabilities still held at period-end.	$	(3,308	)	$	(16,543	)

** recorded as a reduction to general and administrative expenses
*** recorded as a component of other comprehensive income within stockholders' equity

Quantitative Information about Level 3 Fair Value Measurements

The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows:

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)
Airport contracts		9
Backlog		1.2
Brand		15
Customer relationships		7–20
Database		10
Dealer networks		15-20
Developed technology		3–12
Non-compete agreements		5
Store networks		5
Trademarks		3–15

Schedule of Intangible Assets, Excluding Goodwill

The carrying value of finite-lived and indefinite-lived intangible assets at June 30, 2020 and December 31, 2019 are as follows:



	June 30, 2020			December 31, 2019
	(Unaudited)
	(In thousands)
Finite-lived intangible assets:
Customer relationships	$	81,117		$	83,012
Developed technology	19,578			19,979
Dealer network	6,450			6,726
Airport contracts	4,387			4,635
Trademarks	2,662			2,689
Store networks	2,367			2,500
Brand	869			918
Non-compete agreements	752			764
Database	212			212
Backlog	140			140
Total intangibles	118,534			121,575
Accumulated amortization	(77,974		)	(74,620		)
Finite-lived intangibles, net	$	40,560		$	46,955

Indefinite-lived intangibles:
Customer/territorial relationships	$	42,055		$	42,055

Amortization expense recognized in connection with acquired intangible assets was $2.2 million and $4.7 million for the three and six month periods ended June 30, 2020, respectively and $2.2 million and $5.2 million for the three and six month periods ended June 30, 2019

(In thousands)

Fair Value at June 30, 2020

Valuation Technique

Significant Unobservable
Input

Contingent acquisition consideration:
(Wdev and Miles acquisition)

Discounted cash flow

Projected revenue and probability of achievement