0001297989-19-000007 | 10-Q | XBRL Viewer

$ 243,509

$ 210,112

$ 483,082

$ 417,085

^[1]

162,446

139,649

319,686

277,750

General and administrative expenses

^[1]

81,063

70,463

163,396

139,335

Operating expenses:

31,228

27,640

63,759

56,906

Selling and marketing expenses

17,647

15,151

35,694

29,103

Depreciation and amortization

12,752

10,582

26,419

21,086

Impairment and restructuring charges

5,580

6,807

Total operating expenses

67,207

53,373

132,679

107,095

Income from operations

13,856

17,090

30,717

32,240

Foreign exchange gain, net

1,202

1,414

2,462

2,029

Interest expense

(3,864)

(706)

(7,446)

(1,244)

Other income, net

4,102

2,232

8,525

5,766

Income before income tax expense and earnings from equity affiliates

15,296

20,030

34,258

38,791

Income tax expense

2,670

5,510

6,870

1,057

Income before earnings from equity affiliates

12,626

14,520

27,388

37,734

Loss from equity-method investment

129

114

Net income attributable to ExlService Holdings, Inc. stockholders

$ 12,564

$ 14,462

$ 27,259

$ 37,620

Earnings per share attributable to ExlService Holdings, Inc. stockholders:

Basic (in dollars per share)

$ 0.36

$ 0.42

$ 0.79

$ 1.09

Diluted (in dollars per share)

$ 0.36

$ 0.41

$ 0.78

$ 1.07

Weighted-average number of shares used in computing earnings per share attributable to ExlService Holdings, Inc. stockholders:

Basic (in shares)

34,451,671

34,511,777

34,413,455

34,479,202

Diluted (in shares)

34,702,547

35,142,388

34,768,203

35,222,838

[1]	Exclusive of depreciation and amortization.

Segment and Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Details)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2019

USD ($)

Jun. 30, 2018

USD ($)

Jun. 30, 2019

USD ($)

operating_segment

Jun. 30, 2018

USD ($)

Revenues and cost of revenues for Company's reportable segments [Line Items]

$ 243,509

$ 210,112

$ 483,082

$ 417,085

^[1]

162,446

139,649

319,686

277,750

Foreign exchange gain, interest expense and other income, net

^[1]

81,063

70,463

163,396

139,335

Operating expenses

67,207

53,373

132,679

107,095

1,440

2,940

3,541

6,551

Income tax expense

2,670

5,510

6,870

1,057

Loss from equity-method investment

129

114

Net income attributable to ExlService Holdings, Inc. stockholders

12,564

14,462

$ 27,259

37,620

Number of operating segments, industry focused | operating_segment

Number of capability operating segments | operating_segment

BPM and related services

Revenues and cost of revenues for Company's reportable segments [Line Items]

Revenues and cost of revenues for Company's reportable segments [Line Items]

155,638

150,494

$ 308,250

300,365

Analytics services

Revenues and cost of revenues for Company's reportable segments [Line Items]

87,871

59,618

174,832

116,720

Insurance

72,236

64,812

141,274

128,715

49,906

44,033

96,598

86,460

Revenues and cost of revenues for Company's reportable segments [Line Items]

22,330

20,779

44,676

42,255

Healthcare

20,016

19,817

40,584

42,614

16,865

16,713

33,860

33,955

Revenues and cost of revenues for Company's reportable segments [Line Items]

3,151

3,104

6,724

8,659

TT&L

17,541

18,549

34,966

36,048

9,989

10,625

19,789

21,068

Revenues and cost of revenues for Company's reportable segments [Line Items]

7,552

7,924

15,177

14,980

F&A

26,422

24,228

52,146

48,200

15,994

14,543

30,268

29,272

Revenues and cost of revenues for Company's reportable segments [Line Items]

10,428

9,685

21,878

18,928

All Other

19,423

23,088

39,280

44,788

12,261

15,079

24,838

30,264

Revenues and cost of revenues for Company's reportable segments [Line Items]

7,162

8,009

14,442

14,524

Analytics

87,871

59,618

174,832

116,720

57,431

38,656

114,333

76,731

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

$ 30,440

$ 20,962

$ 60,499

$ 39,989

[1]	Exclusive of depreciation and amortization.

Business Combinations, Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Business Combination, Goodwill And Intangible Assets Disclosure [Abstract]
2019 (July 1 - December 31)	$ 10,472
2020	14,438
2021	12,740
2022	11,329
2023	9,040
2024 and thereafter	25,483
Total	$ 83,502	$ 94,595

Business Combinations, Goodwill and Intangible Assets - Purchase Price Allocation - SCIO (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jul. 01, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill	$ 350,220	$ 349,984		$ 204,481
SCIO
Business Acquisition [Line Items]
Cash and cash equivalents			$ 9,842
Restricted cash			2,790
Accounts receivable			19,924
Other current assets			2,076
Property and equipment			1,824
Other assets			1,751
Assets			111,107
Current liabilities			(12,482)
Deferred tax liabilities, net			(17,132)
Other non-current liabilities			(200)
Liabilities			(29,814)
Net assets acquired			81,293
Goodwill			163,751
Total purchase consideration			245,044
Customer relationships \| SCIO
Business Acquisition [Line Items]
Identifiable Intangible Assets			47,800
Developed technology \| SCIO
Business Acquisition [Line Items]
Identifiable Intangible Assets			21,400
Trade names and trademarks \| SCIO
Business Acquisition [Line Items]
Identifiable Intangible Assets			$ 3,700

Other Current Assets

6 Months Ended

Jun. 30, 2019

Other Current Assets

Other current assets consist of the following:



	As of
	June 30, 2019		December 31, 2018
Derivative instruments	$	5,367	$	4,059
Advances to suppliers	3,007		2,910
Receivables from statutory authorities	15,796		14,145
Contract assets	1,203		1,201
Deferred contract fulfillment costs	1,267		1,236
Others	5,089		4,689
Other current assets	$	31,729	$	28,240

Segment and Geographical Information - Property, Plant and Equipment, Net Based On Geographical Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 78,083	$ 73,510
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	33,605	36,152
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	31,378	28,254
Philippines
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	9,345	5,985
Rest of World
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 3,755	$ 3,119

Employee Benefit Plans

6 Months Ended

Jun. 30, 2019

Retirement Benefits [Abstract]

Employee Benefit Plans

The Company’s Gratuity Plans in India ("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.

In addition, the Company’s subsidiary operating in the Philippines conforms to the minimum regulatory benefit which provide for lump sum payment to vested employees on retirement from employment in an amount based on the respective employee’s salary and years of employment with the Company (the "Philippines Plan"). The benefit costs of the Philippines Plan for the year are calculated on an actuarial basis.

Components of net periodic benefit cost:



	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
Service cost	$	493		$	423		$	980		$	862
Interest cost	221			173			440			353
Expected return on plan assets	(144		)	(118		)	(286		)	(242		)
Amortization of actuarial gain	(40		)	(38		)	(79		)	(77		)
Net periodic benefit cost	$	530		$	440		$	1,055		$	896

The Gratuity Plan in India is partially funded and the Philippines plan is unfunded. 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 7.8% per annum on these Gratuity Plans for the six months ended June 30, 2019.



Change in Plan Assets
Plan assets at January 1, 2019	$	7,420
Actual return	268
Employer contribution	—
Benefits paid*	(416		)
Effect of exchange rate changes	79
Plan assets at June 30, 2019	$	7,351

*Benefit payments were substantially made through the plan assets during the six months ended June 30, 2019.

The Company maintains several 401(k) plans (the "401(k) Plans") under Section 401(k) of the Internal Revenue Code of 1986 (the “Code”), covering all eligible employees, as defined in the Code as a defined contribution plan. The Company may make discretionary contributions of up to a maximum of 4% of employee compensation within certain limits. The Company accrued for contributions to the 401(k) Plans of $909 and $755 for the three months ended June 30, 2019 and 2018, respectively, and $2,122 and $1,985 for the six months ended June 30, 2019 and 2018, respectively.

During the three months ended June 30, 2019 and 2018, the Company contributed $2,710 and $1,753, respectively, and during the six months ended June 30, 2019 and 2018, the Company contributed $4,714 and $3,667, respectively, for various defined contribution plans on behalf of its employees in India, the Philippines, Bulgaria, Romania, the Czech Republic, South Africa, Colombia, and Singapore.

Organization	6 Months Ended
Organization	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	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 and affiliates (collectively, the “Company”), operates in the Business Process Management (“BPM”) industry providing operations management services and analytics services that help businesses enhance revenue growth and improve 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 United States of America (“U.S.”) and the United Kingdom (“U.K”).

Stock Based Compensation - Performance Based Stock Awards (Details)	6 Months Ended
	Jun. 30, 2019 $ / shares shares
Revenue Based PRSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, Outstanding, at Beginning Balance (in shares) \| shares	100,353
Number, Granted (in shares) \| shares	54,062
Number, Vested (in shares) \| shares	0
Number, Forfeited (in shares) \| shares	0
Number, Outstanding, at Ending Balance (in shares) \| shares	154,415
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-Average Fair Value, Outstanding, at Beginning Balance (in dollars per share) \| $ / shares	$ 54.07
Weighted-Average Fair Value, Granted (in dollars per share) \| $ / shares	64.33
Weighted-Average Fair Value, Vested (in dollars per share) \| $ / shares	0
Weighted-Average Fair Value, Forfeited (in dollars per share) \| $ / shares	0
Weighted-Average Fair Value, Outstanding, at Ending Balance (in dollars per share) \| $ / shares	$ 57.66
Market Condition Based PRSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, Outstanding, at Beginning Balance (in shares) \| shares	100,336
Number, Granted (in shares) \| shares	54,053
Number, Vested (in shares) \| shares	0
Number, Forfeited (in shares) \| shares	0
Number, Outstanding, at Ending Balance (in shares) \| shares	154,389
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-Average Fair Value, Outstanding, at Beginning Balance (in dollars per share) \| $ / shares	$ 62.43
Weighted-Average Fair Value, Granted (in dollars per share) \| $ / shares	92.13
Weighted-Average Fair Value, Vested (in dollars per share) \| $ / shares	0
Weighted-Average Fair Value, Forfeited (in dollars per share) \| $ / shares	0
Weighted-Average Fair Value, Outstanding, at Ending Balance (in dollars per share) \| $ / shares	$ 72.83

Segment and Geographical Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment and Geographical Information

The Company operates in the BPM industry and is a provider of operations management and analytics services. The Company has eight operating segments, which are strategic business units that align its products and services with how it manages its business, approaches its key markets and interacts with its clients. Six of those operating segments provide BPM or “operations management” services, five of which are industry-focused operating segments (Insurance, Healthcare, Travel, Transportation and Logistics, Banking and Financial Services, and Utilities) and one of which is a “capability” operating segment (Finance and Accounting) that provides services to clients in our industry-focused segments as well as clients across other industries. In each of these six operating segments, the Company provides operations management services, which typically involve transfer to the Company of the business operations of a client, after which it administers and manages those operations for its client on an ongoing basis. The remaining two operating segments are Consulting, which provides industry-specific transformational services related to operations management services, and Analytics, which provides services that focus on driving improved business outcomes for clients by generating data-driven insights across all parts of their business.

The Company presents information for the following reportable segments:


•	Insurance


•	Healthcare


•	Travel, Transportation and Logistics (“TT&L”)


•	Finance and Accounting (“F&A”)


•	Analytics, and


•	All Other (consisting of the Company's remaining operating segments, which are the Banking and Financial Services, Utilities and Consulting operating segments).

The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments.

The Company does not allocate and therefore the CODM does not evaluate other operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these 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 the three months ended June 30, 2019 and 2018, respectively, for each of the reportable segments, are as follows:



	Three months ended June 30, 2019
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	72,236	$	20,016	$	17,541	$	26,422	$	19,423	$	87,871	$	243,509
Cost of revenues⁽¹⁾	49,906		16,865		9,989		15,994		12,261		57,431		162,446
Gross profit⁽¹⁾	$	22,330	$	3,151	$	7,552	$	10,428	$	7,162	$	30,440	$	81,063
Operating expenses													67,207
Foreign exchange gain, interest expense and other income, net													1,440
Income tax expense													2,670
Loss from equity-method investment													62
Net income													$	12,564



	Three months ended June 30, 2018
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	64,812	$	19,817	$	18,549	$	24,228	$	23,088	$	59,618	$	210,112
Cost of revenues⁽¹⁾	44,033		16,713		10,625		14,543		15,079		38,656		139,649
Gross profit⁽¹⁾	$	20,779	$	3,104	$	7,924	$	9,685	$	8,009	$	20,962	$	70,463
Operating expenses													53,373
Foreign exchange gain, interest expense and other income, net													2,940
Income tax expense													5,510
Loss from equity-method investment													58
Net income													$	14,462

⁽¹⁾ Exclusive of depreciation and amortization.

Revenues and cost of revenue for the six months ended June 30, 2019 and 2018, respectively, for each of the reportable

segments, are as follows:



	Six months ended June 30, 2019
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	141,274	$	40,584	$	34,966	$	52,146	$	39,280	$	174,832	$	483,082
Cost of revenues⁽¹⁾	96,598		33,860		19,789		30,268		24,838		114,333		319,686
Gross profit⁽¹⁾	$	44,676	$	6,724	$	15,177	$	21,878	$	14,442	$	60,499	$	163,396
Operating expenses													132,679
Foreign exchange gain, interest expense and other income, net													3,541
Income tax expense													6,870
Loss from equity-method investment													129
Net income													$	27,259

⁽¹⁾ Exclusive of depreciation and amortization.



	Six months ended June 30, 2018
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	128,715	$	42,614	$	36,048	$	48,200	$	44,788	$	116,720	$	417,085
Cost of revenues⁽¹⁾	86,460		33,955		21,068		29,272		30,264		76,731		277,750
Gross profit⁽¹⁾	$	42,255	$	8,659	$	14,980	$	18,928	$	14,524	$	39,989	$	139,335
Operating expenses													107,095
Foreign exchange gain, interest expense and other income, net													6,551
Income tax expense													1,057
Loss from equity-method investment													114
Net income													$	37,620

⁽¹⁾ Exclusive of depreciation and amortization.

Revenues, net by service type, were as follows:



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
BPM and related services⁽¹⁾	$	155,638	$	150,494	$	308,250	$	300,365
Analytics services	87,871		59,618		174,832		116,720
Revenues, net	$	243,509	$	210,112	$	483,082	$	417,085

⁽¹⁾ BPM and related services include revenues of the Company's five industry-focused operating segments, one capability operating segment and the consulting operating segment, which provides services related to operations management services. Refer to the reportable segment disclosure above.

The Company attributes the revenues to regions based upon the location of its customers.



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Revenues, net
United States	$	197,901	$	174,087	$	394,005	$	345,285
Non-United States
United Kingdom	30,155		27,480		59,256		55,496
Rest of World	15,453		8,545		29,821		16,304
Total Non-United States	45,608		36,025		89,077		71,800
Revenues, net	$	243,509	$	210,112	$	483,082	$	417,085

Property and equipment, net by geographic area, were as follows:



	As of
	June 30, 2019		December 31, 2018
Property and equipment, net
India	$	33,605	$	36,152
United States	31,378		28,254
Philippines	9,345		5,985
Rest of World	3,755		3,119
Property and equipment, net	$	78,083	$	73,510

Segment and Geographical Information - Revenues based on Geographical Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, net	$ 243,509	$ 210,112	$ 483,082	$ 417,085
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, net	197,901	174,087	394,005	345,285
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, net	30,155	27,480	59,256	55,496
Rest of World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, net	15,453	8,545	29,821	16,304
Total Non-United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, net	$ 45,608	$ 36,025	$ 89,077	$ 71,800

Employee Benefit Plans - Net Gratuity Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Retirement Benefits [Abstract]
Service cost	$ 493	$ 423	$ 980	$ 862
Interest cost	221	173	440	353
Expected return on plan assets	(144)	(118)	(286)	(242)
Amortization of actuarial gain	(40)	(38)	(79)	(77)
Net periodic benefit cost	$ 530	$ 440	$ 1,055	$ 896

Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:



	As of
	June 30, 2019		December 31, 2018
Accrued expenses	$	48,797	$	44,711
Derivative instruments	928		3,204
Client liabilities	6,493		6,933
Other current liabilities	8,789		9,321
Accrued expenses and other current liabilities	$	65,007	$	64,169

Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions.

The Company has performed an evaluation of its contracts with suppliers in accordance with Topic 842 and has determined that, except for leases for office facilities, motor vehicles and other equipments as described above, none of the Company’s contracts contain a lease.

In assessment of the lease term, the Company considers the extension option as part of its lease term for those lease arrangements where the Company is reasonably certain of availing the extension option.

The lease agreements do not contain any covenant to impose any restrictions except for market-standard practice for similar lease arrangements.

Supplemental balance sheet information



	As of
	June 30, 2019
Operating Lease
Operating lease right-of-use assets	$	93,162

Operating lease liabilities - Current	$	23,439
Operating lease liabilities - Non-current	80,531
Total operating lease liabilities	$	103,970

Finance Lease
Property and equipment, gross	$	1,888
Accumulated depreciation	(1,188		)
Property and equipment, net	$	700

Finance lease liabilities - Current	$	279
Finance lease liabilities - Non-current	474
Total finance lease liabilities	$	753

During the three months ended June 30, 2019, the Company performed an impairment test of its long-lived assets of its Health Integrated business. Based on the results, the operating lease right-of-use assets carrying value exceeded their fair value. The primary factor contributing to a reduction in the fair value is the commencement of the wind down of the Health Integrated business, and an anticipated reduction to the Company's estimated future cash flows. As a result of this analysis, the Company recognized an impairment charge of $989 during the three and six months ended June 30, 2019 to write down the carrying value of operating lease right-of-use to its fair value. This impairment charge was recorded in the unaudited consolidated statements of income under "Impairment and restructuring charges". Refer Note 24 to the unaudited consolidated financial statements for further details.

The components of lease cost, which are included in the Company's unaudited consolidated statements of income, are as follows:



Lease cost	Three months ended June 30, 2019			Six months ended June 30, 2019
Finance lease:
Amortization of right-of-use assets	$	92		$	187
Interest on lease liabilities	20			45
Operating lease^(a)	6,684			13,701
Sublease income	(105		)	(105		)
Total lease cost	$	6,691		$	13,828

Operating lease cost for leases classified as such under Topic 840 for the three and six months ended June 30, 2018 was $6,057 and $12,479, respectively.

(a) Includes short-term leases, which are immaterial.

Supplemental cash flow and other information related to leases are as follows:



	Six months ended June 30, 2019
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$	13,749
Operating cash outflows for finance leases	$	45
Financing cash outflows for finance leases	$	207
Right-of-use assets obtained in exchange for new operating lease liabilities	$	27,750
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—
Weighted-average remaining lease term
Finance lease	2.4 years
Operating lease	6.5 years
Weighted-average discount rate
Finance lease	8.7		%
Operating lease	7.3		%

The Company determines the incremental borrowing rate by adjusting the benchmark reference rates, applicable to the respective geographies where the leases were entered, with appropriate financing spreads and lease specific adjustments for the effects of collateral.

Maturities of lease liabilities as of June 30, 2019 are as follows:



	Operating Leases		Finance Leases
2019 (July 1 - December 31)	$	12,524	$	206
2020	24,997		309
2021	22,221		215
2022	20,098		103
2023	18,000		79
2024	14,057		9
2025 and thereafter	23,223		—
Total lease payments	$	135,120	$	921
Less: Imputed interest	31,150		168
Present value of lease liabilities	$	103,970	$	753

Maturities of minimum lease payments as of December 31, 2018 are as follows:



During the next twelve months ending December 31,	Operating Leases		Capital Leases
2019	$	23,431	$	283
2020	20,039		163
2021	16,924		120
2022	14,804		58
2023	12,859		49
2024	11,114		—
2025 and thereafter	15,000		—
Total minimum lease payment	$	114,171	$	673
Less: Imputed interest	NA		135
Present value of minimum lease payments	NA		538
Less: Current portion	NA		223
Long term capital lease obligation	NA		$	315

Leases

The lease agreements do not contain any covenant to impose any restrictions except for market-standard practice for similar lease arrangements.

Supplemental balance sheet information



	As of
	June 30, 2019
Operating Lease
Operating lease right-of-use assets	$	93,162

Operating lease liabilities - Current	$	23,439
Operating lease liabilities - Non-current	80,531
Total operating lease liabilities	$	103,970

Finance Lease
Property and equipment, gross	$	1,888
Accumulated depreciation	(1,188		)
Property and equipment, net	$	700

Finance lease liabilities - Current	$	279
Finance lease liabilities - Non-current	474
Total finance lease liabilities	$	753

The components of lease cost, which are included in the Company's unaudited consolidated statements of income, are as follows:



Lease cost	Three months ended June 30, 2019			Six months ended June 30, 2019
Finance lease:
Amortization of right-of-use assets	$	92		$	187
Interest on lease liabilities	20			45
Operating lease^(a)	6,684			13,701
Sublease income	(105		)	(105		)
Total lease cost	$	6,691		$	13,828

Operating lease cost for leases classified as such under Topic 840 for the three and six months ended June 30, 2018 was $6,057 and $12,479, respectively.

(a) Includes short-term leases, which are immaterial.

Supplemental cash flow and other information related to leases are as follows:



	Six months ended June 30, 2019
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$	13,749
Operating cash outflows for finance leases	$	45
Financing cash outflows for finance leases	$	207
Right-of-use assets obtained in exchange for new operating lease liabilities	$	27,750
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—
Weighted-average remaining lease term
Finance lease	2.4 years
Operating lease	6.5 years
Weighted-average discount rate
Finance lease	8.7		%
Operating lease	7.3		%

Maturities of lease liabilities as of June 30, 2019 are as follows:



	Operating Leases		Finance Leases
2019 (July 1 - December 31)	$	12,524	$	206
2020	24,997		309
2021	22,221		215
2022	20,098		103
2023	18,000		79
2024	14,057		9
2025 and thereafter	23,223		—
Total lease payments	$	135,120	$	921
Less: Imputed interest	31,150		168
Present value of lease liabilities	$	103,970	$	753

Maturities of minimum lease payments as of December 31, 2018 are as follows:



During the next twelve months ending December 31,	Operating Leases		Capital Leases
2019	$	23,431	$	283
2020	20,039		163
2021	16,924		120
2022	14,804		58
2023	12,859		49
2024	11,114		—
2025 and thereafter	15,000		—
Total minimum lease payment	$	114,171	$	673
Less: Imputed interest	NA		135
Present value of minimum lease payments	NA		538
Less: Current portion	NA		223
Long term capital lease obligation	NA		$	315

Stock Based Compensation - Restricted Stock and Restricted Stock Units Activity Under Company's Stock Plans (Details) - $ / shares	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, Outstanding, at Beginning Balance (in shares)	103,623
Number, Granted (in shares)	0
Number, Vested (in shares)	(48,854)
Number, Forfeited (in shares)	0
Number, Outstanding, at Ending Balance (in shares)	54,769
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-Average Fair Value, Outstanding, at Beginning Balance (in dollars per share)	$ 42.68
Weighted-Average Fair Value, Granted (in dollars per share)	0
Weighted-Average Fair Value, Vested (in dollars per share)	35.91
Weighted-Average Fair Value, Forfeited (in dollars per share)	0
Weighted-Average Fair Value, Outstanding, at Ending Balance (in dollars per share)	$ 48.72
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, Outstanding, at Beginning Balance (in shares)	953,578
Number, Granted (in shares)	466,173
Number, Vested (in shares)	(367,613)
Number, Forfeited (in shares)	(38,512)
Number, Outstanding, at Ending Balance (in shares)	1,013,626
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-Average Fair Value, Outstanding, at Beginning Balance (in dollars per share)	$ 51.81
Weighted-Average Fair Value, Granted (in dollars per share)	64.15
Weighted-Average Fair Value, Vested (in dollars per share)	46.48
Weighted-Average Fair Value, Forfeited (in dollars per share)	56.35
Weighted-Average Fair Value, Outstanding, at Ending Balance (in dollars per share)	$ 59.25
Units vested for which the underlying common stock is yet to be issued (in shares)	163,181	155,753

Segment and Geographical Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2019 operating_segment
Segment Reporting [Abstract]
Number of operating segments	8
Number of operating segments, operations management	6
Number of operating segments, industry focused	5
Number of operating segments, finance and accounting	1
Number of operating segments, company provides operations management services	6
Number of non-operations management services	2

Capital Structure	6 Months Ended
Capital Structure	Jun. 30, 2019
Equity [Abstract]
Capital Structure	Capital Structure Common Stock The Company has one class of common stock outstanding. During the three months ended June 30, 2019 and 2018, the Company acquired nil and 3,835 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 $nil and $226, respectively. The weighted average purchase price per share of $nil and $58.82, respectively, was the average of the high and low price of the Company's share of 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, 2019 and 2018, the Company acquired 22,666 and 45,646 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 $1,408 and $2,790, respectively. The weighted average purchase price per share of $62.11 and $61.12, respectively, was the average of the high and low price of the Company's share of 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 a common stock repurchase program (the “2014 Repurchase Program”), under which shares were authorized to be purchased by the Company from time to time from the open market and through private transactions during each of the fiscal years 2017 through 2019 up to an annual amount of $20,000. On February 28, 2017, the Company’s Board of Directors authorized an additional common stock repurchase program (the “2017 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 2017 through 2019 up to an aggregate additional amount of $100,000. The approval increased the 2017 authorization from $20,000 to $40,000 and authorizes stock repurchases of up to $40,000 in each of 2018 and 2019. During the three and six months ended June 30, 2019, the Company purchased 198,160 and 438,025 shares of its common stock, respectively, for an aggregate purchase price of approximately $12,130 and $26,130, respectively, including commissions, representing an average purchase price per share of $61.21 and $59.65, respectively, under the 2017 Repurchase Program. During the three and six months ended June 30, 2018, the Company purchased 165,000 and 347,182 shares of its common stock, respectively, for an aggregate purchase price of approximately $9,407 and $20,346, respectively, including commissions, representing an average purchase price per share of $57.01 and $58.60, respectively, under the 2017 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.

Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Finance lease:
Amortization of right-of-use assets	$ 92		$ 187
Interest on lease liabilities	20		45
Operating lease	6,684		13,701
Sublease income	(105)		(105)
Total lease cost	$ 6,691		$ 13,828
Operating lease costs for leases classified as such under Topic 840		$ 6,057		$ 12,479

Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Effect of net investment hedges on accumulated other comprehensive income, tax	$ 693	$ (3,573)	$ 1,882	$ (4,373)
Realized gain on cash flow hedges, taxes	(560)	(426)	(206)	(1,202)
Retirement benefits, taxes	$ (19)	$ (3)	$ 90	$ (2)

Other Income, net (Tables)

6 Months Ended

Jun. 30, 2019

Other Income and Expenses [Abstract]

Summary of Other Income, net

Other income, net consists of the following:



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Gain on sale and mark-to-market of mutual funds	$	3,318	$	1,694	$	6,844	$	4,827
Interest and dividend income	697		329		1,493		637
Others, net	87		209		188		302
Other income, net	$	4,102	$	2,232	$	8,525	$	5,766

Impairment and Restructuring Charges - Summary of Wind Down Process (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Restructuring Reserve [Roll Forward]
Balance as of January 1, 2019		$ 0
Cumulative costs incurred as of June 30, 2019		3,640
Costs paid during the three and six months ended June 30, 2019		(261)
Balance as of June 30, 2019	$ 3,379	3,379
Total expected costs	6,000	6,000
Asset impairment charges	1,940	3,167	$ 0
Contract Termination Costs
Restructuring Reserve [Roll Forward]
Balance as of January 1, 2019		0
Cumulative costs incurred as of June 30, 2019		2,597
Costs paid during the three and six months ended June 30, 2019		0
Balance as of June 30, 2019	2,597	2,597
Total expected costs	3,200	3,200
Employee-Related Costs
Restructuring Reserve [Roll Forward]
Balance as of January 1, 2019		0
Cumulative costs incurred as of June 30, 2019		752
Costs paid during the three and six months ended June 30, 2019		(57)
Balance as of June 30, 2019	695	695
Total expected costs	1,800	1,800
Other Associated Costs
Restructuring Reserve [Roll Forward]
Balance as of January 1, 2019		0
Cumulative costs incurred as of June 30, 2019		291
Costs paid during the three and six months ended June 30, 2019		(204)
Balance as of June 30, 2019	87	87
Total expected costs	$ 1,000	$ 1,000

Impairment and Restructuring Charges

6 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

Impairment and Restructuring Charges

On March 29, 2019, the Company commenced the process of substantially winding down of the operations of the Health Integrated business, which is reported within the Healthcare reportable segment. The Company had previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission (“SEC”) on February 28, 2019, the operating results of this business were significantly below the Company’s estimates and future estimated cash flows are impacted due to loss of customer contracts and cost pressures, and the Company continues to incur losses from this business. The Company expects the wind down process to be substantially completed by the end of 2019. In connection with the wind down process, the Company recorded pre-tax costs in the unaudited consolidated statements of income under “Impairment and restructuring charges”. The following table summarizes the activity related to the costs incurred and paid for the wind down during the three and six months ended June 30, 2019:



	Contract Termination Costs		Employee-Related Costs			Other Associated Costs			Total
Balance as of January 1, 2019	$	—	$	—		$	—		$	—
Costs incurred during the three and six months ended June 30, 2019	2,597		752			291			3,640
Cumulative costs incurred as of June 30, 2019	$	2,597	$	752		$	291		$	3,640
Costs paid during the three and six months ended June 30, 2019	—		(57		)	(204		)	(261		)
Balance as of June 30, 2019	$	2,597	$	695		$	87		$	3,379

Total expected costs	$	3,200	$	1,800		$	1,000		$	6,000

Additionally, the Company recognized impairment on ROU assets and long-lived assets of $1,940 and $3,167 during the three and six months ended June 30, 2019, respectively in the unaudited consolidated statements of income under "Impairment and restructuring charges".

Costs and cash expenditures expected to be incurred are subject to a number of assumptions, and the Company may incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with the wind down process.

Stock Based Compensation - Stock Options Additional Information (Details) - Employee Stock Option	Jun. 30, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 0
Unrecognized compensation cost, unvested options	$ 0

Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Details) - Foreign currency exchange contracts - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Derivatives Designated as Hedging Instruments \| Other current assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset	$ 5,367	$ 4,022
Derivatives Designated as Hedging Instruments \| Other assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset	3,992	1,971
Derivatives Designated as Hedging Instruments \| Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability	767	3,137
Derivatives Designated as Hedging Instruments \| Other non-current liabilities
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability	1,140	3,075
Derivatives not designated as hedging instruments \| Other current assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset	0	37
Derivatives not designated as hedging instruments \| Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability	$ 161	$ 67

Business Combinations, Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2019

Business Combination, Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of allocation of purchase price to assets acquired and liabilities assumed

The Company’s purchase price allocation to net tangible and intangible assets of SCIO is as follows:



Assets:
Cash and cash equivalents	$	9,842
Restricted cash	2,790
Accounts receivable	19,924
Other current assets	2,076
Property and equipment	1,824
Other assets	1,751
Intangible assets
Customer relationships	47,800
Developed technology	21,400
Trade names and trademarks	3,700
	111,107
Liabilities:
Current liabilities	(12,482		)
Deferred tax liabilities, net	(17,132		)
Other non-current liabilities	(200		)
	(29,814		)

Net assets acquired	$	81,293
Goodwill	163,751
Total purchase consideration	$	245,044

Schedule of Goodwill

The following table sets forth details of changes in goodwill by reportable segment of the Company:



	Insurance			Healthcare			TT&L			F&A			All Other		Analytics		Total
Balance at January 1, 2018	$	38,333		$	35,233		$	13,679		$	48,372		$	5,326	$	63,538	$	204,481
Acquisitions	—			—			—			—			—		163,751		163,751
Measurement period adjustments	—			(1,728		)	—			—			—		—		(1,728		)
Currency translation adjustments	(130		)	—			(982		)	(1,179		)	—		—		(2,291		)
Impairment charges	—			(14,229		)	—			—			—		—		(14,229		)
Balance at December 31, 2018	$	38,203		$	19,276		$	12,697		$	47,193		$	5,326	$	227,289	$	349,984
Currency translation adjustments	(20		)	—			116			140			—		—		236
Balance at June 30, 2019	$	38,183		$	19,276		$	12,813		$	47,333		$	5,326	$	227,289	$	350,220

Schedule of indefinite lived Intangible Assets

Information regarding the Company’s intangible assets is set forth below:



	As of June 30, 2019
	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	129,784	$	(63,261	)	$	(5,549	)	$	60,974
Leasehold benefits	2,673		(2,673		)	—			—
Developed technology	37,141		(17,899		)	—			19,242
Non-compete agreements	2,045		(2,012		)	—			33
Trade names and trademarks	9,637		(6,106		)	(278		)	3,253
	$	181,280	$	(91,951	)	$	(5,827	)	$	83,502
Indefinite-lived intangible assets:
Trade names and trademarks	900		—			—			900
Total intangible assets	$	182,180	$	(91,951	)	$	(5,827	)	$	84,402



	As of December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	129,790	$	(56,367	)	$	(5,549	)	$	67,874
Leasehold benefits	2,644		(2,567		)	—			77
Developed technology	37,154		(14,653		)	—			22,501
Non-compete agreements	2,045		(1,937		)	—			108
Trade names and trademarks	9,639		(5,326		)	(278		)	4,035
	$	181,272	$	(80,850	)	$	(5,827	)	$	94,595
Indefinite-lived intangible assets:
Trade names and trademarks	900		—			—			900
Total intangible assets	$	182,172	$	(80,850	)	$	(5,827	)	$	95,495

Schedule of amortization of Intangible Assets

The amortization expense for the period is as follows:



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Amortization expense	$	5,554	$	3,761	$	11,082	$	7,708

Schedule of finite lived Intangible Assets useful lives

The remaining weighted average life of intangible assets is as follows:



	(in years)
Customer relationships	7.77
Leasehold benefits	—
Developed technology	3.99
Non-compete agreements	0.22
Trade names and trademarks (Finite lived)	2.74

Schedule of estimated future amortization of Intangible Assets



Estimated future amortization expense related to intangible assets as of June 30, 2019 is as follows:
2019 (July 1 - December 31)	$	10,472
2020	14,438
2021	12,740
2022	11,329
2023	9,040
2024 and thereafter	25,483
Total	$	83,502

Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued expenses	$ 48,797	$ 44,711
Derivative instruments	928	3,204
Client liabilities	6,493	6,933
Other current liabilities	8,789	9,321
Accrued expenses and other current liabilities	$ 65,007	$ 64,169

Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Operating Lease
Operating lease right-of-use assets	$ 93,162	$ 93,162
Operating lease liabilities - Current	23,439	23,439
Operating lease liabilities - Non-current	80,531	80,531
Total operating lease liabilities	103,970	103,970
Finance Lease
Property and equipment, gross	1,888	1,888	$ 1,459
Accumulated depreciation	(1,188)	(1,188)	(1,001)
Property and equipment, net	700	700	458
Finance lease liabilities - Current	279	279	223
Finance lease liabilities - Non-current	474	474	$ 315
Total finance lease liabilities	753	753
Operating lease, impairment charge	$ 989	$ 1

Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 84,842	$ 95,881	$ 84,091
Restricted cash (current)	4,098	5,608	2,256
Restricted cash (non-current)	2,507	2,642	3,645
Cash, cash equivalents and restricted cash	$ 91,447	$ 104,131	$ 89,992	$ 94,277

Leases - Cash Flow and Other Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$ 13,749
Operating cash outflows for finance leases	45
Financing cash outflows for finance leases	207
Right-of-use assets obtained in exchange for new operating lease liabilities	27,750
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 0
Weighted-average remaining lease term
Finance lease	2 years 4 months 24 days
Operating lease	6 years 6 months
Weighted-average discount rate
Finance lease	8.70%
Operating lease	7.30%

Segment and Geographical Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Revenues and Cost of Revenues for Company's Reportable Segments

Revenues and cost of revenues for the three months ended June 30, 2019 and 2018, respectively, for each of the reportable segments, are as follows:



	Three months ended June 30, 2019
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	72,236	$	20,016	$	17,541	$	26,422	$	19,423	$	87,871	$	243,509
Cost of revenues⁽¹⁾	49,906		16,865		9,989		15,994		12,261		57,431		162,446
Gross profit⁽¹⁾	$	22,330	$	3,151	$	7,552	$	10,428	$	7,162	$	30,440	$	81,063
Operating expenses													67,207
Foreign exchange gain, interest expense and other income, net													1,440
Income tax expense													2,670
Loss from equity-method investment													62
Net income													$	12,564



	Three months ended June 30, 2018
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	64,812	$	19,817	$	18,549	$	24,228	$	23,088	$	59,618	$	210,112
Cost of revenues⁽¹⁾	44,033		16,713		10,625		14,543		15,079		38,656		139,649
Gross profit⁽¹⁾	$	20,779	$	3,104	$	7,924	$	9,685	$	8,009	$	20,962	$	70,463
Operating expenses													53,373
Foreign exchange gain, interest expense and other income, net													2,940
Income tax expense													5,510
Loss from equity-method investment													58
Net income													$	14,462

⁽¹⁾ Exclusive of depreciation and amortization.

Revenues and cost of revenue for the six months ended June 30, 2019 and 2018, respectively, for each of the reportable

segments, are as follows:



	Six months ended June 30, 2019
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	141,274	$	40,584	$	34,966	$	52,146	$	39,280	$	174,832	$	483,082
Cost of revenues⁽¹⁾	96,598		33,860		19,789		30,268		24,838		114,333		319,686
Gross profit⁽¹⁾	$	44,676	$	6,724	$	15,177	$	21,878	$	14,442	$	60,499	$	163,396
Operating expenses													132,679
Foreign exchange gain, interest expense and other income, net													3,541
Income tax expense													6,870
Loss from equity-method investment													129
Net income													$	27,259

⁽¹⁾ Exclusive of depreciation and amortization.



	Six months ended June 30, 2018
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	128,715	$	42,614	$	36,048	$	48,200	$	44,788	$	116,720	$	417,085
Cost of revenues⁽¹⁾	86,460		33,955		21,068		29,272		30,264		76,731		277,750
Gross profit⁽¹⁾	$	42,255	$	8,659	$	14,980	$	18,928	$	14,524	$	39,989	$	139,335
Operating expenses													107,095
Foreign exchange gain, interest expense and other income, net													6,551
Income tax expense													1,057
Loss from equity-method investment													114
Net income													$	37,620

⁽¹⁾ Exclusive of depreciation and amortization.

Revenues, net by service type, were as follows:



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
BPM and related services⁽¹⁾	$	155,638	$	150,494	$	308,250	$	300,365
Analytics services	87,871		59,618		174,832		116,720
Revenues, net	$	243,509	$	210,112	$	483,082	$	417,085

Revenues Based on Geographical Information

The Company attributes the revenues to regions based upon the location of its customers.



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Revenues, net
United States	$	197,901	$	174,087	$	394,005	$	345,285
Non-United States
United Kingdom	30,155		27,480		59,256		55,496
Rest of World	15,453		8,545		29,821		16,304
Total Non-United States	45,608		36,025		89,077		71,800
Revenues, net	$	243,509	$	210,112	$	483,082	$	417,085

Property, Plant and Equipment based on Geographical Information

Property and equipment, net by geographic area, were as follows:



	As of
	June 30, 2019		December 31, 2018
Property and equipment, net
India	$	33,605	$	36,152
United States	31,378		28,254
Philippines	9,345		5,985
Rest of World	3,755		3,119
Property and equipment, net	$	78,083	$	73,510

Borrowings Borrowings (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Schedule of Maturities of Long-term Debt

Future principal payments/maturities for all of the Company's borrowings as of June 30, 2019 were as follows:



	Notes		Revolver Credit		Structured Payables		Total
2019 (July - December)	$	—	$	10,000	$	831	$	10,831
2020	—		24,000		693		24,693
2021	—		34,000		—		34,000
2022	—		49,000		—		49,000
2023	—		—		—		—
2024 and thereafter	150,000		—		—		150,000
Total	$	150,000	$	117,000	$	1,524	$	268,524

Revenues, net - Contracts with Customer, Receivables, Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 180,680	$ 164,752
Contract assets	4,885	5,445
Contract liabilities:
Deferred revenue (consideration received in advance)	10,441	6,345
Consideration received for process transition activities	$ 3,233	$ 1,669

Related Party Disclosures (Details) - USD ($)	3 Months Ended		6 Months Ended
Related Party Disclosures (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Oct. 01, 2018
Related Party Transaction [Line Items]
Debt outstanding	$ 268,524,000		$ 268,524,000
Revenues from related party	243,509,000	$ 210,112,000	483,082,000	$ 417,085,000
Accounts receivable from related party	0		0		$ 5,000
Consulting Services \| Affiliated Entity
Related Party Transaction [Line Items]
Revenues from related party	0	$ 16,000		$ 215,000
Convertible Notes Payable \| 3.50% Convertible Senior Notes due October 1, 2024
Related Party Transaction [Line Items]
Debt instrument face amount						$ 150,000,000
Debt outstanding	150,000,000		150,000,000		150,000,000
Interest accrued	$ 1,313,000		$ 1,313,000		$ 1,313,000

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(a) Basis of Preparation and Principles of Consolidation

(b) Use of Estimates

(d) Cash and Cash Equivalents and Restricted Cash

(e) Revenue Recognition

Nature of services

Type of Contracts

Modification to contracts

Arrangements with Multiple Performance Obligations

Variable Consideration

Variability in the transaction price arises primarily due to service level agreements, pre-payment and volume discounts.

The Company considers its experience with similar transactions and expectations regarding the contract in estimating the amount of variable consideration that should be recognized during a period.

Allocation of transaction price to performance obligations

Unbilled Receivables

Deferred Revenue

Contract Acquisition Cost

Upfront payment made to customer

Out of pocket expenses

Reimbursements of out-of-pocket expenses received from clients are included as part of revenues.

Payment terms

Remaining Performance Obligation

The Company does not disclose the value of remaining performance obligations by applying the practical expedient provided in Topic 606, for contracts that meet any of the following criteria:


i.	Contract with an original expected length of one year or less as determined under ASC 606,


ii.	Contracts for which Company recognize revenue based on the right to invoice for service performed.

Accounts Receivable

(f) Leases

The adoption had no impact on opening balance of retained earnings. Refer Note 21 to the unaudited consolidated financial statements for details.

(g) Recent Accounting Pronouncements

(h) Recently Adopted Accounting Pronouncements

Revenues, net (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Contracts with Customer, Receivables and Liabilities

The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers:



	As of
	June 30, 2019		December 31, 2018
Accounts receivable, net	$	180,680	$	164,752
Contract assets	$	4,885	$	5,445
Contract liabilities:
Deferred revenue (consideration received in advance)	$	10,441	$	6,345
Consideration received for process transition activities	$	3,233	$	1,669

Property and Equipment, net - Internally Developed Software Costs, Included under Software (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Cost	$ 10,522		$ 10,522		$ 8,783
Less : Accumulated amortization	(3,449)		(3,449)		(2,393)
Internally developed software, net	7,073		7,073		$ 6,390
Amortization expense	559	$ 254	1,206	$ 472
Impairment charges	$ 951		$ 2,178

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, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerators:
Net income	$ 12,564	$ 14,462	$ 27,259	$ 37,620
Denominators:
Basic weighted average common shares outstanding (in shares)	34,451,671	34,511,777	34,413,455	34,479,202
Dilutive effect of share based awards (in shares)	250,876	630,611	354,748	743,636
Diluted weighted average common shares outstanding (in shares)	34,702,547	35,142,388	34,768,203	35,222,838
Earnings per share attributable to ExlService Holdings Inc. stockholders:
Basic (in dollars per share)	$ 0.36	$ 0.42	$ 0.79	$ 1.09
Diluted (in dollars per share)	$ 0.36	$ 0.41	$ 0.78	$ 1.07
Weighted average potentially dilutive considered anti-dilutive and not included in computing diluted earnings per share (in shares)	69	336,599	212,751	242,561

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2019
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 $2,670 and $5,510 for the three months ended June 30, 2019 and 2018, respectively. The effective tax rate decreased from 27.5% during the three months ended June 30, 2018 to 17.5% during the three months ended June 30, 2019, primarily due to impact of change in effective state tax rates during the three months ended June 30, 2019. The Company recorded income tax expense of $6,870 and $1,057 for the six months ended June 30, 2019 and 2018, respectively. The effective tax rate increased from 2.7% during the six months ended June 30, 2018 to 20.1% during the six months ended June 30, 2019, primarily as a result of (i) an adjustment of $4,836 reducing the provisional transition tax on the mandatory deemed repatriation of accumulated earnings and profits ("E&P") of foreign subsidiaries recognized during the six months ended June 30, 2018 and (ii) the recording of excess tax benefits related to stock awards of $5,150 pursuant to ASU No. 2016-09 during the six months ended June 30, 2018 compared to $1,072 during the six months ended June 30, 2019.

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Purchase commitments, net of advances	$ 7,495
Export-oriented units established, percentage	100.00%
Litigation, settlement amount		$ 2,400
Settlement payments made during the period		1,200
Aggregate disputed amount amount related to transfer pricing and permanent establishment	$ 17,924	18,177
Total bank guarantees and deposits in respect of contingencies	8,262	8,171
Amounts paid as deposits in respect of contingencies	6,343	6,272
Bank guarantee issued	$ 1,919	$ 1,899

Revenues, net

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]