Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 01, 2014 | Jun. 30, 2013 |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'EPAM Systems, Inc. | ' | ' |
Entity Central Index Key | '0001352010 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 46,848,703 | ' |
Entity Public Float | ' | ' | $653.30 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $169,207 | $118,112 |
Accounts receivable, net of allowance of $1,800 and $2,203 respectively | 95,431 | 78,906 |
Unbilled revenues | 43,108 | 33,414 |
Prepaid and other current assets | 14,355 | 11,835 |
Employee loans, net of allowance for loan losses of $0 and $0, respectively, current | 1,989 | 429 |
Time deposits | 1,188 | 1,006 |
Restricted cash, current | 298 | 660 |
Deferred tax assets, current | 5,392 | 6,593 |
Total current assets | 330,968 | 250,955 |
Property and equipment, net | 53,315 | 53,135 |
Restricted cash, long-term | 225 | 467 |
Employee loans, net of allowance for loan losses of $0 and $0, respectively, long-term | 4,401 | 0 |
Intangible assets, net | 13,734 | 16,834 |
Goodwill | 22,268 | 22,698 |
Deferred tax assets, long-term | 4,557 | 6,093 |
Other long-term assets | 3,409 | 632 |
Total assets | 432,877 | 350,814 |
Current liabilities | ' | ' |
Accounts payable | 2,835 | 6,095 |
Accrued expenses and other liabilities | 20,175 | 19,814 |
Deferred revenues, current | 4,543 | 6,369 |
Due to employees | 12,665 | 12,026 |
Taxes payable | 14,171 | 14,557 |
Deferred tax liabilities, current | 275 | 491 |
Total current liabilities | 54,664 | 59,352 |
Deferred revenues, long-term | 533 | 1,263 |
Taxes payable, long-term | 1,228 | 1,228 |
Deferred tax liabilities, long-term | 351 | 2,691 |
Total liabilities | 56,776 | 64,534 |
Commitments and contingencies (See Note 16) | ' | ' |
Stockholders' equity | ' | ' |
Common stock, $0.001 par value; 160,000,000 authorized; 47,569,463 and 45,398,523 shares issued, 46,614,916 and 44,442,494 shares outstanding at December 31, 2013 and December 31, 2012, respectively | 46 | 44 |
Additional paid-in capital | 195,585 | 166,962 |
Retained earnings | 190,986 | 128,992 |
Treasury stock | -8,684 | -8,697 |
Accumulated other comprehensive loss | -1,832 | -1,021 |
Total stockholders' equity | 376,101 | 286,280 |
Total liabilities and stockholders' equity | $432,877 | $350,814 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $1,800 | $2,203 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 47,569,463 | 45,398,523 |
Common stock, shares outstanding | 46,614,916 | 44,442,494 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Revenues | $555,117 | $433,799 | $334,528 | ||
Operating expenses: | ' | ' | ' | ||
Cost of revenues (exclusive of depreciation and amortization) | 347,650 | 270,361 | 205,336 | ||
Selling, general and administrative expenses | 116,497 | 85,868 | 64,930 | ||
Depreciation and amortization expense | 15,120 | 10,882 | 7,538 | ||
Goodwill impairment loss | 0 | 0 | 1,697 | ||
Other operating (income)/ expenses, net | -643 | 682 | 19 | ||
Income from operations | 76,493 | 66,006 | 55,008 | ||
Interest and other income, net | 3,077 | 1,941 | 1,422 | ||
Foreign exchange loss | -2,800 | -2,084 | -3,638 | ||
Total | 76,770 | 65,863 | 52,792 | ||
Provision for income taxes | 14,776 | 11,379 | 8,439 | ||
Net income | 61,994 | 54,484 | 44,353 | ||
Cumulative translation adjustment | -811 | 2,493 | -1,250 | ||
Comprehensive income | 61,183 | 56,977 | 43,103 | ||
Accretion of preferred stock | 0 | 0 | -17,563 | ||
Net income allocated to participating securities | 0 | -3,341 | -15,025 | ||
Net income available for common stockholders | 61,994 | 51,143 | 11,765 | ||
Net income per share of common stock: | ' | ' | ' | ||
Basic (in dollars per share) | $1.35 | [1] | $1.27 | [1] | ' |
Diluted (in dollars per share) | $1.28 | [1] | $1.17 | [1] | ' |
Weighted Average Number of Shares Outstanding, Basic | 45,754 | 40,190 | 17,094 | ||
Weighted Average Number of Shares Outstanding, Diluted | 48,358 | 43,821 | 20,473 | ||
Common Stock [Member] | ' | ' | ' | ||
Operating expenses: | ' | ' | ' | ||
Net income | 61,994 | 54,484 | 44,353 | ||
Net income available for common stockholders | 61,994 | 51,143 | 11,765 | ||
Net income per share of common stock: | ' | ' | ' | ||
Basic (in dollars per share) | $1.35 | $1.27 | $0.69 | ||
Diluted (in dollars per share) | $1.28 | $1.17 | $0.63 | ||
Weighted Average Number of Shares Outstanding, Basic | 45,754,000 | 40,190,000 | 17,094,000 | ||
Weighted Average Number of Shares Outstanding, Diluted | 48,358,000 | 43,821,000 | 20,473,000 | ||
Puttable Common Stock [Member] | ' | ' | ' | ||
Operating expenses: | ' | ' | ' | ||
Net income available for common stockholders | $0 | $0 | $26 | ||
Net income per share of common stock: | ' | ' | ' | ||
Basic (in dollars per share) | $0 | $0 | $1.42 | ||
Diluted (in dollars per share) | $0 | $0 | $0.77 | ||
Weighted Average Number of Shares Outstanding, Basic | 0 | 0 | 18,000 | ||
Weighted Average Number of Shares Outstanding, Diluted | 0 | 0 | 18,000 | ||
[1] | Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year-to-date basis. |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (USD $) | Series A-1 and A-2, Convertible Redeemable Preferred Stock | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Series A-3 Convertible Preferred Stock [Member] | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Treasury Stock | Treasury Stock | Accumulated Other Comprehensive Income | Total | Initial Public Offering | Instant Information Inc | Thoughtcorp Inc | Empathy Lab LLC | Puttable Common Stock [Member] |
In Thousands, except Share data | USD ($) | USD ($) | Initial Public Offering | Instant Information Inc | Thoughtcorp Inc | Empathy Lab LLC | USD ($) | Initial Public Offering | Instant Information Inc | Thoughtcorp Inc | Empathy Lab LLC | USD ($) | USD ($) | Thoughtcorp Inc | Empathy Lab LLC | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||
Beginning Balance at Dec. 31, 2010 | $68,377 | $17 | ' | ' | ' | ' | ' | $36,750 | ' | ' | ' | ' | $47,718 | ($15,972) | ' | ' | ($2,264) | $66,249 | ' | ' | ' | ' | $332 |
Beginning Balance (in shares) at Dec. 31, 2010 | 2,439,739 | 17,054,408 | ' | ' | ' | ' | 290,277 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,896 |
Accretion of A-2 preferred stock to redemption value | 17,563 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -17,563 | ' | ' | ' | ' | -17,563 | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | 2,866 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,866 | ' | ' | ' | ' | ' |
Proceeds from stock options exercises (in shares) | ' | 47,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,600 | ' | ' | ' | ' | ' |
Proceeds from stock options exercises | ' | ' | ' | ' | ' | ' | ' | 72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72 | ' | ' | ' | ' | ' |
Put option expiry (in shares) | ' | 56,896 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,896 | ' | ' | ' | ' | -56,896 |
Put option expiry | ' | ' | ' | ' | ' | ' | ' | 332 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 332 | ' | ' | ' | ' | -332 |
Currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,250 | -1,250 | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,353 | ' | ' | ' | ' | 44,353 | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2011 | 85,940 | 17 | ' | ' | ' | ' | ' | 40,020 | ' | ' | ' | ' | 74,508 | -15,972 | ' | ' | -3,514 | 95,059 | ' | ' | ' | ' | ' |
Ending Balance (in shares) at Dec. 31, 2011 | 2,439,739 | 17,158,904 | ' | ' | ' | ' | 290,277 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued (in shares) | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued | ' | ' | 3 | ' | ' | ' | ' | ' | 32,361 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,364 | ' | ' | ' | ' |
Conversion to common stock (in shares) | -2,439,739 | 21,840,128 | ' | ' | ' | ' | -290,277 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion to common stock | -85,940 | 22 | ' | ' | ' | ' | ' | 85,918 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,940 | ' | ' | ' | ' | ' |
Offering issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | -3,395 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,395 | ' | ' | ' | ' |
Issuance of restricted stock | ' | 213,656 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued in connection with acquisition (in shares) | ' | ' | ' | 53,336 | 434,546 | 326,344 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,336 | ' | ' | ' |
Stock issued in connection with acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 640 | -346 | -2,969 | ' | ' | 3,953 | 2,969 | ' | ' | ' | 640 | 3,607 | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | 6,826 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,826 | ' | ' | ' | ' | ' |
Proceeds from stock options exercises (in shares) | ' | 1,515,580 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,552,742 | ' | ' | ' | ' | ' |
Proceeds from stock options exercises | ' | 2 | ' | ' | ' | ' | ' | 4,963 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,965 | ' | ' | ' | ' | ' |
Treasury stock retirement | ' | ' | ' | ' | ' | ' | ' | -353 | ' | ' | ' | ' | ' | 353 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefits | ' | ' | ' | ' | ' | ' | ' | 3,297 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,297 | ' | ' | ' | ' | ' |
Currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,493 | 2,493 | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,484 | ' | ' | ' | ' | 54,484 | ' | ' | ' | ' | ' |
Stock issued under the 2012 Non-Employee Directors Compensation Plan (Note 14) | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2012 | ' | 44 | ' | ' | ' | ' | ' | 166,962 | ' | ' | ' | ' | 128,992 | -8,697 | ' | ' | -1,021 | 286,280 | ' | ' | ' | ' | ' |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 44,442,494 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued (in shares) | ' | 14,041 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued in connection with acquisition (in shares) | ' | ' | ' | ' | ' | 1,483 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued in connection with acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 | ' | ' | ' | ' | ' | -13 | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | 13,150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,150 | ' | ' | ' | ' | ' |
Proceeds from stock options exercises (in shares) | ' | 2,156,898 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,156,898 | ' | ' | ' | ' | ' |
Proceeds from stock options exercises | ' | 2 | ' | ' | ' | ' | ' | 9,285 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,287 | ' | ' | ' | ' | ' |
Excess tax benefits | ' | ' | ' | ' | ' | ' | ' | 6,201 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,201 | ' | ' | ' | ' | ' |
Currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -811 | -811 | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,994 | ' | ' | ' | ' | 61,994 | ' | ' | ' | ' | ' |
Stock issued under the 2012 Non-Employee Directors Compensation Plan (Note 14) | ' | 14,041 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2013 | ' | $46 | ' | ' | ' | ' | ' | $195,585 | ' | ' | ' | ' | $190,986 | ($8,684) | ' | ' | ($1,832) | $376,101 | ' | ' | ' | ' | ' |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 46,614,916 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $61,994 | $54,484 | $44,353 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 15,120 | 10,882 | 7,538 |
Bad debt expense | 335 | 662 | 727 |
Deferred taxes | 41 | -3,933 | 497 |
Stock-based compensation expense | 13,150 | 6,826 | 2,866 |
Excess tax benefits on stock-based compensation plans | -6,201 | -3,297 | 0 |
Non-cash stock charge | 0 | 640 | 0 |
Goodwill impairment loss | 0 | 0 | 1,697 |
Other | 1,199 | -66 | 777 |
(Increase)/ decrease in operating assets: | ' | ' | ' |
Accounts receivable | -17,302 | -12,664 | -19,030 |
Unbilled revenues | -9,833 | -6,905 | -1,004 |
Prepaid expenses and other assets | 587 | -1,339 | -1,694 |
Increase/ (decrease) in operating liabilities: | ' | ' | ' |
Accounts payable | -2,900 | 1,407 | 254 |
Accrued expenses and other liabilities | 501 | -5,825 | 9,474 |
Deferred revenues | -2,325 | -767 | 1,843 |
Due to employees | 785 | 2,896 | 2,796 |
Taxes payable | 3,074 | 5,498 | 3,426 |
Net cash provided by operating activities | 58,225 | 48,499 | 54,520 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -13,360 | -13,376 | -15,548 |
Payments for construction of corporate facilities | -2,560 | -13,701 | -1,545 |
Issuance of employee housing loans | -7,982 | 0 | 0 |
Proceeds from repayments of employee housing loans | 2,189 | 0 | 0 |
Decrease/(increase) in restricted cash, net (Note 6) | 429 | 470 | -144 |
Increase in other long-term assets, net | -516 | -69 | -171 |
Acquisition of businesses, net of cash acquired (Note 2) | -20 | -32,951 | 0 |
Net cash used in investing activities | -21,820 | -59,627 | -17,408 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds related to stock options exercises | 9,300 | 4,951 | 72 |
Excess tax benefits on stock-based compensation plans | 6,201 | 3,297 | 0 |
Net proceeds from issuance of common stock in initial public offering | 0 | 32,364 | 0 |
Costs related to stock issue | 0 | -1,765 | -1,630 |
Proceeds related to line of credit | 0 | 0 | 5,000 |
Repayment related to line of credit | 0 | 0 | -5,000 |
* Net cash provided by/(used in) financing activities * | 15,501 | 38,847 | -1,558 |
Effect of exchange-rate changes on cash and cash equivalents | -811 | 1,597 | -762 |
Net increase in cash and cash equivalents | 51,095 | 29,316 | 34,792 |
Cash and cash equivalents, beginning of year-January 1 | 118,112 | 88,796 | 54,004 |
Cash and cash equivalents, end of year | 169,207 | 118,112 | 88,796 |
Cash paid during the year for: | ' | ' | ' |
Income taxes | 10,207 | 13,065 | 7,007 |
Bank interest | $26 | $14 | $37 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Total incurred but not paid costs related to stock issue | ' | ' | ' |
Summary of non-cash investing and financing transactions: | ' | ' | ' |
Other significant noncash transactions | $0 | $0 | $470 |
Total incurred but not paid costs related to acquisition of businesses | ' | ' | ' |
Summary of non-cash investing and financing transactions: | ' | ' | ' |
Other significant noncash transactions | 0 | 96 | 0 |
Series A-2 Convertible Redeemable Preferred Stock [Member] | ' | ' | ' |
Summary of non-cash investing and financing transactions: | ' | ' | ' |
Accretion of convertible redeemable preferred stock | $0 | $0 | $17,563 |
NATURE_OF_BUSINESS_AND_SIGNIFI
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||||||
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
1 | NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading provider of complex software engineering solutions and a leader in Central and Eastern European IT services delivery. The Company provides these solutions primarily to Fortune Global 2000 companies in multiple verticals, including Independent Software Vendors (“ISVs”) and Technology, Banking and Financial services, Business Information and Media, and Travel and Consumer. | |||||||||||||||||
Since EPAM’s inception in 1993, the Company has focused on providing software product development services, software engineering and vertically-oriented custom development solutions through its global delivery model. This has served as a foundation for the Company’s other solutions, including custom application development, application testing, platform-based solutions, application maintenance and support, and infrastructure management. | |||||||||||||||||
The Company is incorporated in Delaware with headquarters in Newtown, PA, with multiple delivery centers located in Belarus, Ukraine, Russia, Hungary, Kazakhstan and Poland, and client management locations in the United States, Canada, the United Kingdom, Germany, Sweden, Switzerland, Netherlands, Russia, Kazakhstan, Singapore, Hong Kong and Australia. | |||||||||||||||||
Emerging growth company status — In April 2012, several weeks after EPAM’s initial public offering in February 2012, President Obama signed into law the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). The JOBS Act contains provisions that relax certain requirements for “emerging growth companies” that otherwise apply to larger public companies. For as long as a company retains emerging growth company status, which may be until the fiscal year-end after the fifth anniversary of its initial public offering, it will not be required to (1) provide an auditor’s attestation report on its management’s assessment of the effectiveness of its internal control over financial reporting, otherwise required by Section 404(b) of the Sarbanes-Oxley Act of 2002, (2) comply with any new or revised financial accounting standard applicable to public companies until such standard is also applicable to private companies, (3) comply with certain new requirements adopted by the Public Company Accounting Oversight Board, (4) provide certain disclosure regarding executive compensation required of larger public companies or (5) hold shareholder advisory votes on matters relating to executive compensation. | |||||||||||||||||
EPAM is classified as an emerging growth company under the JOBS Act and is eligible to take advantage of the accommodations described above for as long as it retains this status. However, EPAM has elected not to take advantage of the transition period described in (2) above, which is the exemption provided in Section 7(a)(2)(B) of the Securities Act of 1933 and Section 13(a) of the Securities Exchange Act of 1934 (in each case as amended by the JOBS Act) for complying with new or revised financial accounting standards. EPAM will therefore comply with new or revised financial accounting standards to the same extent that a non-emerging growth company is required to comply with such standards. | |||||||||||||||||
Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM Systems, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Reclassifications — The Company reclassified certain prior period amounts to conform to the current period presentation. Such reclassifications had no effect on the Company’s results of operations or total stockholders’ equity. | |||||||||||||||||
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the financial statements. | |||||||||||||||||
Business Combinations — The Company allocates the total cost of an acquisition to the underlying net assets based on their respective estimated fair values. As part of this allocation process, the Company identifies and attributes values and estimated lives to the intangible assets acquired. These determinations involve significant estimates and assumptions about several highly subjective variables, including future cash flows, discount rates, and asset lives. There are also different valuation models for each component, the selection of which requires considerable judgment. These determinations will affect the amount of amortization expense recognized in future periods. The Company bases its fair value estimates on assumptions it believes are reasonable, but recognizes that the assumptions are inherently uncertain. Depending on the size of the purchase price of a particular acquisition and the mix of intangible assets acquired, the purchase price allocation could be materially impacted by applying a different set of assumptions and estimates. | |||||||||||||||||
Revenue Recognition — The Company recognizes revenue when realized or realizable and earned, which is when the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue the Company reports. If there is an uncertainty about the project completion or receipt of payment for the consulting services, revenues are deferred until the uncertainty is sufficiently resolved. At the time revenues are recognized, the Company provides for any contractual deductions and reduces revenues accordingly. The Company defers amounts billed to its clients for revenues not yet earned. Such amounts are anticipated to be recorded as revenues as services are performed in subsequent periods. Unbilled revenues represent services provided which are billed subsequent to the period end in accordance with the contract terms. | |||||||||||||||||
The Company derives its revenues from a variety of service offerings which represent specific competencies of its IT professionals. Contracts for these services have different terms and conditions based on the scope, deliverables, and complexity of the engagement which require management to make judgments and estimates in determining appropriate revenue recognition pattern. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. | |||||||||||||||||
The majority of the Company’s revenues (82.3% of revenues in 2013, 84.1% in 2012 and 86.1% in 2011) is generated under time-and-material contracts whereby revenues are recognized as services are performed with the corresponding cost of providing those services reflected as cost of revenues when incurred. The majority of such revenues are billed on an hourly, daily or monthly basis whereby actual time is charged directly to the client. | |||||||||||||||||
Revenues from fixed-price contracts (15.7% of revenues in 2013, 13.7% in 2012 and 11.0% in 2011) are determined using the proportional performance method. In instances where final acceptance of the product, system, or solution is specified by the client, revenues are deferred until all acceptance criteria have been met. In absence of a sufficient basis to measure progress towards completion, revenue is recognized upon receipt of final acceptance from the client. In order to estimate the amount of revenue for the period under the proportional performance method, the Company determines the percentage of actual labor hours incurred as compared to estimated total labor hours and applies that percentage to the consideration allocated to the deliverable. The complexity of the estimation process and factors relating to the assumptions, risks and uncertainties inherent with the application of the proportional performance method of accounting affects the amounts of revenues and related expenses reported in the Company’s consolidated financial statements. A number of internal and external factors can affect such estimates, including labor hours and specification and testing requirement changes. The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known. No significant revisions occurred in each of the three years ended December 31, 2013, 2012 and 2011. The Company’s fixed price contracts are generally recognized over a period of 12 months or less. | |||||||||||||||||
From time to time, the Company enters into multiple element arrangements with its customers. In vast majority of cases such multiple-element arrangements represent fixed-priced arrangements to develop a customized IT solution to meet the customer’s needs combined with warranty support over a specified period of time in the future, to which the Company refers to as the “warranty period.” The Company’s customers retain full intellectual property (IP) rights to the results of the Company’s services, and the software element created in lieu of such services is no more than incidental to any of the service deliverables, as defined in accordance with ASC 985-605-15-13. For such arrangements, the Company follows the guidance set forth in ASC 605-25, Revenue Recognition – Multiple Element Arrangements, as to whether multiple deliverables exist, how the arrangement should be separated, and how the consideration should be allocated. The Company recognizes revenue related to the delivered products only if all revenue recognition criteria are met and the delivered element has a standalone value to the customer and allocates total consideration among the deliverables based on their relative selling prices. Revenue related to the software development services is recognized under the proportional performance method, as described above, while warranty support services are recognized on a straight-line basis over the warranty period. The warranty period is generally three months to two years. | |||||||||||||||||
The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income. | |||||||||||||||||
Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries, employee benefits and stock compensation expense, reimbursable and non-reimbursable travel costs and subcontractor fees. | |||||||||||||||||
Selling, General and Administrative Expenses — Consist of expenses associated with promoting and selling the Company’s services and include such items as sales and marketing personnel salaries, stock compensation expense and related fringe benefits, commissions, travel, and the cost of advertising and other promotional activities. General and administrative expenses include other operating items such as officers’ and administrative personnel salaries, marketing personnel salaries, stock compensation expense and related fringe benefits, legal and audit expenses, insurance, provision for doubtful accounts, and operating lease expenses. | |||||||||||||||||
Fair Value of Financial Instruments — The Company makes significant assumptions about fair values of its financial instruments. Fair value is determined based on the assumptions that market participants would use in pricing the asset or liability. The Company utilizes the following fair value hierarchy in determining fair values: | |||||||||||||||||
Level 1 — Quoted prices for identical assets or liabilities in active markets. | |||||||||||||||||
Level 2 — Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. | |||||||||||||||||
Level 3 — Unobservable inputs reflecting our view about the assumptions that market participants would use in pricing the asset or liability. | |||||||||||||||||
Where the fair values of financial assets and liabilities recorded in the consolidated balance sheet cannot be derived from an active market, they are determined using a variety of valuation techniques. These valuation techniques include a net present value technique, comparison to similar instruments with market observable inputs, options pricing models and other relevant valuation models. Inputs into these models are taken from observable market data whenever possible, but in instances where it is not feasible, a degree of judgment is required to establish fair values. The Company had no assets or liabilities measured at fair value on a recurring basis as of December 31, 2013 or 2012. | |||||||||||||||||
The Company's financial assets and liabilities, with the exceptions of employee loans described further herein, are all short term in nature; therefore, the carrying value of these items approximates their fair value. | |||||||||||||||||
Employee Housing Loans — The Company issues loans to its employees under the Employee Housing Program (“housing loans”). Housing loans are issued in U.S. Dollars with a 5-year term and carry an interest rate of 7.5%. The program was designed to be a retention mechanism for the Company’s employees in Belarus. | |||||||||||||||||
Although permitted by authoritative guidance, the Company did not elect a fair value option for these financial instruments. These housing loans are measured at fair value upon initial recognition and subsequently carried at amortized cost less allowance for loan losses. Any difference between the carrying value and the fair value of a loan upon initial recognition (“day-one” recognition) is charged to expense. | |||||||||||||||||
The housing loans were classified as Level 3 measurements within the fair value hierarchy because they were valued using significant unobservable inputs. The estimated fair value of these housing loans upon initial recognition was computed by projecting the future contractual cash flows to be received from the loans and discounting those projected net cash flows to a present value, which is the estimated fair value (the “Income Approach”). In applying the Income Approach, the Company analyzed similar loans offered by third-party financial institutions in Belarusian Rubles (“BYR”) and adjusted the interest rates charged on such loans to exclude the effects of underlying economic factors, such as inflation and currency devaluation. The Company also assessed the probability of future defaults and associated cash flows impact. In addition, the Company separately analyzed the rate of return that market participants in Belarus would require when investing in unsecured USD-denominated government bonds with similar maturities (a “risk-free rate”) and evaluated a risk premium component to compensate the market participants for the credit and liquidity risks inherent in the loans’ cash flows, as described in the following paragraph. As a result of the analysis performed, the Company determined the carrying values of the housing loans issued during the year ended December 31, 2013 approximated their fair values upon initial recognition. The Company also estimated the fair values of the housing loans that were outstanding as of December 31, 2013 using the inputs noted above and determined their fair values approximated the carrying values as of that date. | |||||||||||||||||
Repayment of housing loans is primarily dependent on personal income of borrowers obtained through employment with the Company, which income is set in U.S. dollars and is not closely correlated with common macroeconomic risks existing in Belarus, such as inflation, local currency devaluation and decrease in the purchasing power of the borrowers’ income. Given a large demand for the program among the Company’s employees and its advantages as compared to alternative methods of financing available on the market, the Company expects the borrowers to fulfill their obligations, and the Company estimates the probability of voluntary termination of employment among the borrowers as de minimis. Additionally, housing loans are capped at $50 per loan and secured by real estate financed through the program. The Company establishes a maximum loan-to-value ratio of 70% and expects a decrease in the ratio over the life of a housing loan due to on-going payments by employees. | |||||||||||||||||
Employee loans, other — The Company also issues short-term non-interest bearing relocation loans and other employee loans. These loans are considered Level 3 measurements. The Company’s Level 3, unobservable inputs reflect its assumptions about the factors that market participants use in pricing similar receivables, and are based on the best information available in the circumstances. Due to the short-term nature of employee loans (i.e., the relatively short time between the origination of the instrument and its expected realization), the carrying amount is a reasonable estimate of fair value. As of December 31, 2013, the carrying values of these employee loans approximated their fair values. | |||||||||||||||||
Cash and Cash Equivalents — Cash equivalents are short-term, highly liquid investments that are readily convertible into cash, with maturities of three months or less at the date acquired. As of December 31, 2013 and 2012 all amounts were in cash. | |||||||||||||||||
Restricted Cash — Restricted cash represents cash that is restricted by agreements with third parties for special purposes (see Note 6). | |||||||||||||||||
Accounts Receivable — Accounts receivable are recorded at net realizable value. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its clients to make required payments. The allowance for doubtful accounts is determined by evaluating the relative creditworthiness of each client, historical collections experience and other information, including the aging of the receivables. | |||||||||||||||||
Recoveries of losses from accounts receivable written off in prior years are presented within income from operations on the Company’s consolidated statements of income. There were no collections in respect of prior year write-offs during the years ended December 31, 2013, 2012 or 2011. | |||||||||||||||||
The table below summarizes movements in qualifying accounts for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Balance at | Charged to Costs | Deductions/ | Balance at End | ||||||||||||||
Beginning of | and Expenses | Other | of Year | ||||||||||||||
Period | |||||||||||||||||
Allowance for Doubtful Accounts (Billed and Unbilled): | |||||||||||||||||
Fiscal Year 2011 | $ | 1,671 | $ | 1,234 | $ | (655 | ) | $ | 2,250 | ||||||||
Fiscal Year 2012 | 2,250 | 1,244 | (1,291 | ) | 2,203 | ||||||||||||
Fiscal Year 2013 | 2,203 | 619 | (1,022 | ) | 1,800 | ||||||||||||
Employee Loans — Loans are initially recorded at their fair value, and subsequently measured at their amortized cost, less allowance for loan losses, if any. The Company intends to hold all employee loans until their maturity. Interest income is reported using the effective interest method. Where applicable, loan origination fees, net of direct origination costs, are deferred and recognized in interest income over the life of the loan. | |||||||||||||||||
Generally, loans are placed on non-accrual status at 90 days past due. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. All interest accrued but not collected for loans that are placed on non-accrual is reversed against interest income. Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. Interest income on loans individually classified as impaired is recognized on a cash basis after all past due and current principal payments have been made. | |||||||||||||||||
Allowance for Loan Losses — The Company periodically evaluates loans that exhibit probable or observed credit weaknesses are subject to individual review. Where appropriate, amounts of allowances are allocated to individual loans based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flow and legal options available to the Company. The allowance for loan losses is established when losses are deemed to have occurred through a provision for loan losses charged to income and represents management’s estimate of probable credit losses inherent in the loan portfolio. Write-offs of unrecoverable loans are charged against the allowance when management believes the uncollectability of a loan balance and any interest due thereon is confirmed. Subsequent recoveries, if any, are credited to the provision for bad debts. | |||||||||||||||||
Property and Equipment — Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful lives of the assets generally ranging from 3 to 50 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. Maintenance and repairs are expensed as incurred, while renewals and betterments are capitalized. | |||||||||||||||||
Goodwill and Other Intangible Assets — The Company accounts for its business combinations using the acquisition accounting method, which requires it to determine the fair value of net assets acquired and the related goodwill and other intangible assets. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and involves the use of significant estimates, including projections of future cash inflows and outflows, discount rates, asset lives and market multiples. The Company’s acquisitions usually do not have significant amounts of tangible assets, as the principal assets it typically acquires are customer relationships, trade names, non-competition agreements, and workforce. As a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. | |||||||||||||||||
Goodwill and intangible assets that have indefinite useful lives are not amortized but are tested annually for impairment. Events or circumstances that might require impairment testing of goodwill and other intangible assets include the loss of a significant client, the identification of other impaired assets within a reporting unit, loss of key personnel, the disposition of a significant portion of a reporting unit, significant decline in stock price or a significant adverse change in business climate or regulations. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. | |||||||||||||||||
As of December 31, 2013 and 2012, all of the Company’s intangible assets had finite lives and the Company did not incur any impairment losses in respect of its intangible assets during the years ended December 31, 2013, 2012 or 2011. | |||||||||||||||||
Effective in the fourth quarter of 2013, the Company changed the annual goodwill impairment assessment date for all of its reporting units from December 31st to October 31st, which represented a voluntary change in the annual goodwill impairment testing date. The Company is also required to assess the goodwill of its reporting units for impairment between annual assessment dates when events or circumstances dictate. This change does not delay, accelerate or avoid an impairment charge and is preferable as additional resources for the preparation, review, and conclusion of the annual goodwill impairment test are available at this time. Further, this timing more closely aligns with the Company’s annual budgeting and planning process. Information prepared during the annual budgeting and planning process is used extensively in the Company’s impairment assessment. The Company evaluates the recoverability of goodwill at a reporting unit level and it had three reporting units that were subject to the annual impairment testing in 2013. The Company’s annual impairment review as of October 31, 2013 and December 31, 2012 did not result in an impairment charge for any of these reporting units. It was impracticable to apply this change retrospectively, as the Company is unable to objectively determine significant estimates and assumptions that would have been used in those earlier periods without the use of hindsight. | |||||||||||||||||
For the Company’s annual impairment test, it compares the respective fair value of its reporting units to their respective carrying values in order to determine if impairment is indicated. If so, the implied fair value of the reporting unit’s goodwill is compared to its carrying amount, and the impairment loss is measured by the excess of the carrying value over fair value. The fair values are estimated using a combination of the income approach, which incorporates the use of the discounted cash flow method, and the market approach, which incorporates the use of earnings multiples based on market data. These valuations are considered Level 3 measurements under FASB ASC Topic 820. The Company utilizes estimates to determine the fair value of the reporting units such as future cash flows, growth rates, capital requirements, effective tax rates and projected margins, among other factors. Estimates utilized in the future evaluations of goodwill for impairment could differ from estimates used in the current period calculations. | |||||||||||||||||
When facts and circumstances indicate potential impairment of amortizable intangible assets, the Company evaluates the recoverability of the asset’s carrying value, using estimates of undiscounted future cash flows that utilize a discount rate determined by its management to be commensurate with the risk inherent in the Company’s business model over the remaining asset life. The estimates of future cash flows attributable to intangible assets require significant judgment based on the Company’s historical and anticipated results. Any impairment loss is measured by the excess of carrying value over fair value. | |||||||||||||||||
Impairment of Long-Lived Assets — Long-lived assets, such as property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The assessment for potential impairment is based primarily on the Company’s ability to recover the carrying value of its long-lived assets from expected future cash flows from its operations on an undiscounted basis at each reporting date. If such assets are determined to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets. Property and equipment to be disposed of by sale is carried at the lower of the then current carrying value or fair value less estimated costs to sell. The Company did not incur any impairment of long-lived assets for 2013, 2012, or 2011. | |||||||||||||||||
Income Taxes — The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. | |||||||||||||||||
The realization of deferred tax assets is primarily dependent on future earnings. Any reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings. See Note 10 to the consolidated financial statements for further information. | |||||||||||||||||
Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and our effective tax rate in the future. The American Taxpayer Relief Act of 2012 (the “Act”) was signed into law on January 2, 2013. Because a change in tax law is accounted for in the period of enactment, certain provisions of the Act benefiting the Company’s 2012 U.S. federal taxes, including the Subpart F controlled foreign corporation look-through exception were not recognized in the Company’s 2012 financial results and instead were reflected in the Company’s 2013 financial results. | |||||||||||||||||
Earnings per Share (“EPS”) — Basic EPS is computed by dividing the net income applicable to common stockholders for the period by the weighted average number of shares of common stock outstanding during the same period. The Company’s Series A-1 Preferred, Series A-2 Preferred, and Series A-3 Preferred Stock, that had been outstanding and convertible into common stock until February 13, 2012 (the date of the Company’s initial public offering), and our puttable common stock were considered participating securities since these securities had non-forfeitable rights to dividends or dividend equivalents during the contractual period and thus required the two-class method of computing EPS. When calculating diluted EPS, the numerator is computed by adding back the undistributed earnings allocated to the participating securities in arriving at the basic EPS and then reallocating such undistributed earnings among our common stock, participating securities and the potential common shares that result from the assumed exercise of all dilutive options. The denominator is increased to include the number of additional common shares that would have been outstanding had the options been issued. | |||||||||||||||||
Accounting for Stock-Based Employee Compensation Plans — Stock-based compensation expense for awards of equity instruments to employees and non-employee directors is determined based on the grant-date fair value of the awards ultimately expected to vest. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of four years (See Note14.) | |||||||||||||||||
The Company estimates forfeitures at the time of grant and revises its estimates, if necessary, in subsequent periods if actual forfeitures or vesting differ from those estimates. Such revisions could have a material effect on the Company’s operating results. The assumptions used in the valuation model are based on subjective future expectations combined with management judgment. If any of the assumptions used in the valuation model changes significantly, stock-based compensation for future awards may differ materially compared to the awards previously granted. | |||||||||||||||||
Off-Balance Sheet Financial Instruments — Off-balance sheet financial instruments include credit instruments, such as commitments to make employee loans and related guarantees, standby letters of credit and guarantees issued under customer contracts. The face amount for these items represents the exposure to loss, before considering available collateral or the borrower’s ability to repay. Such financial instruments are recorded when they are funded. Loss contingencies arising from off-balance sheet credit exposures are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company does not believe there are such matters that will have a material effect on the consolidated financial statements. | |||||||||||||||||
Foreign Currency Translation — Assets and liabilities of consolidated foreign subsidiaries, whose functional currency is the local currency, are translated to U.S. dollars at period end exchange rates. Revenues and expenses are translated to U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries to U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income. | |||||||||||||||||
The Company reports the effect of exchange rate changes on cash balances held in foreign currencies as a separate item in the reconciliation of the changes in cash and cash equivalents during the period. Transaction gains and losses are included in the period in which they occur. | |||||||||||||||||
Risks and Uncertainties — Principally all of the Company’s IT delivery centers and a majority of its employees is located in Central and Eastern Europe. As a result, the Company may be subject to certain risks associated with international operations, risks associated with the application and imposition of protective legislation and regulations relating to import and export, or otherwise resulting from foreign policy or the variability of foreign economic or political conditions. Additional risks associated with international operations include difficulties in enforcing intellectual property rights, the burdens of complying with a wide variety of foreign laws, potential geopolitical and other risks associated with potentially adverse tax consequences, tariffs, quotas and other barriers. | |||||||||||||||||
Concentration of Credit — Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of employee loans, cash and cash equivalents, trade accounts receivable and unbilled revenues. | |||||||||||||||||
At December 31, 2013, loans issued to employees were $6,390, or 1.5%, of our total assets. These loans expose the Company to a risk of non-payment and loss. Repayment of these loans is primarily dependent on personal income of borrowers obtained through their employment with EPAM and may be adversely affected by changes in macroeconomic situations, such as higher unemployment levels, currency devaluation and inflation. Additionally, continuing financial stability of a borrower may be adversely affected by job loss, divorce, illness or personal bankruptcy. The Company also faces the risk that the collateral will be insufficient to compensate it for loan losses, if any, and costs of foreclosure. Decreases in real estate values could adversely affect the value of property used as collateral, and the Company may be unsuccessful in recovering the remaining balance from either the borrower and/or guarantors. | |||||||||||||||||
The Company maintains its cash with financial institutions. As of December 31, 2013, $103.1 million of total cash was held in CIS countries, with $73.9 million of that in Belarus. Banking and other financial systems in the CIS are less developed and regulated than in some more developed markets, and legislation relating to banks and bank accounts is subject to varying interpretations and inconsistent application. Banks in the CIS generally do not meet the banking standards of more developed markets, and the transparency of the banking sector lags behind international standards. Furthermore, bank deposits made by corporate entities in CIS are not insured. As a result, the banking sector remains subject to periodic instability. Another banking crisis, or the bankruptcy or insolvency of banks through which the Company receives or with which it holds funds, particularly in Belarus, may result in the loss of its deposits or adversely affect its ability to complete banking transactions in the CIS, which could materially adversely affect the Company’s business and financial condition. | |||||||||||||||||
Trade accounts receivable and unbilled revenues are generally dispersed across EPAM’s customers in proportion to their revenues. During the years ended December 31, 2013, 2012 and 2011, revenues from top five customers were $169,987, $ 134,484, and $107,171, respectively, representing 30.6%, 31.0% and 32.0%, respectively, of total revenues in the corresponding periods. Revenues from the Company’s top ten customers were $234,955, $192,426 and $149,094 in 2013, 2012 and 2011, respectively, representing 42.3%, 44.4%, and 44.6%, respectively, of total revenues in corresponding periods. No customer accounted for over 10% of total revenues in 2013 or 2012. As of December 31, 2013, unbilled revenues from two customers individually exceeded 10% of total unbilled revenues and jointly accounted for 33.3% of total unbilled revenues as of that date; and one customer accounted for over 10% of total accounts receivable as of that date. | |||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011 the Company incurred subcontractor costs of $2,078, $3,535 and $4,545, respectively, to a vendor for staffing, consulting, training, recruiting and other logistical / support services provided for the Company’s delivery and development operations in Eastern Europe. Such costs are included in cost of revenues and sales, general and administrative expenses, as appropriate, in the accompanying consolidated statements of income and comprehensive income. | |||||||||||||||||
Foreign currency risk — The Company generates revenues in various global markets based on client contracts obtained in non-U.S. dollar currencies, principally, Euros, British pounds and Russian Rubles. The Company incurs expenditures in non-U.S. dollar currencies, principally in Hungarian Forints, Euros, and Russian Rubles associated with the IT delivery centers located in CEE. The Company is exposed to fluctuations in foreign currency exchange rates primarily on accounts receivable and unbilled revenues from sales in these foreign currencies, and cash flows for expenditures in foreign currencies. The Company does not use derivative financial instruments to hedge the risk of foreign exchange volatility. | |||||||||||||||||
Interest rate risk — The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s cash and cash equivalents and the LIBOR plus 1.25% rate long-term credit facility (see Note 12). The Company does not use derivative financial instruments to hedge the risk of interest rate volatility. | |||||||||||||||||
Recent Accounting Pronouncements — In January 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The ASU clarifies that ordinary trade receivables and receivables are not in the scope of ASU 2012-11, “Disclosures about Offsetting Assets and Liabilities.” ASU 2012-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the Codification or subject to a master netting arrangement or similar agreement. The ASU is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods and requires retrospective application for all comparative periods presented. The Company adopted the ASU effective January 1, 2013. The adoption of this standard did not have any effect on the Company’s financial condition, results of operations and cash flows. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which adds new disclosure requirements for items reclassified out of accumulated other comprehensive income (“AOCI”.) The ASU is intended to help entities improve the transparency of changes in other comprehensive income (OCI) and items reclassified out of AOCI in their financial statements. It does not amend any existing requirements for reporting net income or OCI in the financial statements. New disclosure requirements are effective for fiscal periods beginning after December 15, 2012 and are applied prospectively. The Company adopted the ASU effective January 1, 2013. The adoption of this standard did not have any effect on the Company’s financial reporting because the only item that had historically affected AOCI and therefore included in cumulative AOCI was currency translation adjustments. | |||||||||||||||||
In March 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 updates accounting guidance related to the application of consolidation guidance and foreign currency matters. This guidance resolves the diversity in practice about what guidance applies to the release of the cumulative translation adjustment into net income. This guidance is effective for interim and annual periods beginning after December 15, 2013. The Company does not expect the adoption of this pronouncement to have a material effect on its financial condition, results of operations and cash flows. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 is a new accounting standard on the financial statement presentation of unrecognized tax benefits. The new standard provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The new standard becomes effective for the periods commencing January 1, 2014, and it should be applied prospectively to unrecognized tax benefits that exist at the effective date with retrospective application permitted. The Company is currently assessing the impacts of this new standard on its financial conditions, results of operating and cash flows. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
ACQUISITIONS [Abstract] | ' | ||||||||
ACQUISITIONS | ' | ||||||||
2 | ACQUISITIONS | ||||||||
Empathy Lab, LLC — On December 18, 2012, the Company completed its acquisition of substantially all of the assets and assumed certain liabilities of Empathy Lab, LLC (“Empathy Lab”), a U.S.-based digital strategy and multi-channel experience design firm. The acquisition has enhanced the Company’s strong capabilities in global delivery of software engineering services with the proven expertise in two important growth areas-development and execution of enterprise-wide eCommerce initiatives and transformation of media consumption and distribution channels. In addition to strengthening our Travel and Consumer and Business Information and Media verticals, Empathy Lab brings significant expertise in digital marketing strategy consulting and program management. | |||||||||
The total preliminary purchase price of $27,257 was allocated to net tangible and intangible assets based on their estimated fair values as of December 18, 2012. During the second quarter of 2013, the Company finalized the fair values of the assets acquired and liabilities assumed. As a result, total consideration transferred was set at $27,172, as presented in the following table. The purchase price was paid in cash, of which approximately 10% was placed in escrow for a period of 18 months as a security for the indemnification obligations of the sellers under the asset purchase agreement. | |||||||||
The purchase price was allocated to the assets acquired based on their related fair values, as follows: | |||||||||
Amount | |||||||||
Cash and cash equivalents | $ | 1,191 | |||||||
Trade receivables and other current assets | 5,983 | ||||||||
Property and equipment | 186 | ||||||||
Deferred tax asset | 30 | ||||||||
Acquired intangible assets | 11,200 | ||||||||
Goodwill | 11,359 | ||||||||
Total assets acquired | 29,949 | ||||||||
Accounts payable and accrued expenses | 1,113 | ||||||||
Deferred revenue and other liabilities | 1,664 | ||||||||
Total liabilities assumed | 2,777 | ||||||||
Net assets acquired | $ | 27,172 | |||||||
In addition, the Company issued to the sellers a total of 327,827 shares of non-vested (“restricted”) common stock contingent on their continued employment with the Company (Note 14), including 1,483 shares issued on July 11, 2013, to settle the difference between the initial number of shares issued upon acquisition and the total number of shares due in connection with this transaction. Of these shares, 65,500 shares were placed in escrow for a period of 18 months as a security for the indemnification obligations of the sellers under the asset purchase agreement. The restricted stock had an estimated value of $6,797 at the time of grant and will be recorded as a stock-based compensation expense over an associated service period of three years. | |||||||||
The Company also agreed to issue stock options to certain employees acquired through the Empathy Lab acquisition. The stock options were issued in the amount by which the acquiree’s revenue exceeded the target revenue for the first half of 2013, as defined by the purchase agreement, and were issued under the Company’s current long-term incentive plan. The stock options are subject to all vesting restrictions and other terms and conditions customary for the Company. | |||||||||
The Company performed a valuation analysis to determine the fair values of certain intangible assets of Empathy Lab as of the acquisition date. As part of the valuation process, the excess earnings method was used to determine the value of customer relationships. Fair values of trade name and non-competition agreements were determined using the relief from royalty and discounted earnings methods, respectively. The Company expects approximately $11,470 of tax goodwill amortizable over a 15-year period. | |||||||||
The following table presents the estimated fair values and useful lives of intangible assets acquired as of December 18, 2012: | |||||||||
Weighted Average | Amount | ||||||||
Useful Life | |||||||||
(in years) | |||||||||
Customer relationships | 10 | $ | 6,900 | ||||||
Trade names | 5 | 3,900 | |||||||
Non-competition agreements | 4 | 400 | |||||||
Total | $ | 11,200 | |||||||
Included in consolidated statements of income and comprehensive income for the year ended December 31, 2012 were $545 of revenues and $104 of net income of the acquiree, respectively. | |||||||||
Total acquisition-related post-combination compensation expense recognized for the year ended December 31, 2012 was $79 and is presented within selling, general and administrative expenses. Total acquisition-related costs were $81 and are presented within selling, general and administrative expenses for the year ended December 31, 2012, respectively. | |||||||||
Pro forma results of operations for the Empathy Lab acquisition completed during the year ended December 31, 2012 have not been presented because the effects of the acquisition were not material, individually and in aggregate with other acquisitions completed by the Company during 2012, to the Company’s consolidated results of operations. | |||||||||
Thoughtcorp, Inc. — On May 23, 2012, the Company acquired substantially all of the assets and assumed certain liabilities of Thoughtcorp, Inc., a Toronto-based software solutions provider (“Thoughtcorp”). The acquisition is intended to expand the Company’s geographic footprint within North America, and complement its global delivery capabilities with expertise in areas such as agile development, enterprise mobility and business intelligence. In addition, Thoughtcorp brings significant telecommunications expertise, and expands and enhances the Company’s offering within the Banking and Financial Services and Travel and Consumer verticals. | |||||||||
The purchase price was comprised of $7,497 paid in cash and 217,274 shares of common stock with a fair value of $3,607 at the acquisition date. Half of these shares were placed in escrow for a period of 18 months as a security for the indemnification obligations of the sellers under the asset purchase agreement. Additionally, the Company issued to the sellers 217,272 shares of non-vested (“restricted”) common stock contingent on their continued employment with the Company (Note 14). These shares have an estimated value of $3,607 and will be recorded as stock-based compensation expense over an associated service period of two years. A deferred tax asset has been recognized for the tax effect of the fair value of the portion of the shares that were placed in escrow. | |||||||||
The purchase price was allocated to the assets acquired based on their related fair values, as follows: | |||||||||
Amount | |||||||||
Cash and cash equivalents | $ | 1,111 | |||||||
Trade receivables and other current assets | 2,484 | ||||||||
Property and equipment | 92 | ||||||||
Deferred tax asset | 1,348 | ||||||||
Acquired intangible assets | 5,296 | ||||||||
Goodwill | 2,935 | ||||||||
Total assets acquired | 13,266 | ||||||||
Accounts payable and accrued expenses | 461 | ||||||||
Assumed shareholder and director loans | 1,290 | ||||||||
Deferred revenue and other liabilities | 411 | ||||||||
Total liabilities assumed | 2,162 | ||||||||
Net assets acquired | $ | 11,104 | |||||||
The Company performed a valuation analysis to determine the fair values of certain intangible assets of Thoughtcorp as of the acquisition date. As part of the valuation process, the excess earnings method was used to determine the value of customer relationships. Fair values of trade name and non-competition agreements were determined using the relief from royalty and discounted earnings methods, respectively. The Company expects approximately $8,310 of tax goodwill, of which 75% is deductible at 7% per annum on a declining basis. | |||||||||
The following table presents the fair values and useful lives of intangible assets acquired as of May 23, 2012: | |||||||||
Weighted Average | Amount | ||||||||
Useful Life | |||||||||
(in years) | |||||||||
Customer relationships | 10 | $ | 2,810 | ||||||
Trade names | 5 | 2,014 | |||||||
Non-competition agreements | 5 | 472 | |||||||
Total | $ | 5,296 | |||||||
Included in consolidated statements of income for the year ended December 31, 2012 were $7,184 of revenues and $206 of net losses of the acquiree, respectively. | |||||||||
Total acquisition-related post-combination compensation expense recognized for the year ended December 31, 2012 was $1,252 and is presented within selling, general and administrative expenses. Total acquisition-related costs were $420 and are presented within selling, general and administrative expenses for the year ended December 31, 2012, respectively. | |||||||||
Pro forma results of operations for the Thoughtcorp acquisition completed during the year ended December 31, 2012 have not been presented because the effects of the acquisition, individually and in aggregate with other acquisitions completed by the Company during 2012, were not material to the Company’s consolidated results of operations. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS - NET | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS - NET [Abstract] | ' | ||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS - NET | ' | ||||||||||||||||||||
3 | GOODWILL AND INTANGIBLE ASSETS — NET | ||||||||||||||||||||
Goodwill by reportable segment was as follows: | |||||||||||||||||||||
North America | EU | Russia | Other | Total | |||||||||||||||||
Balance as of January 1, 2012 | $ | 2,286 | $ | 2,864 | $ | 3,019 | $ | — | $ | 8,169 | |||||||||||
Acquisition of Thoughtcorp (Note 2) | 2,935 | — | — | — | 2,935 | ||||||||||||||||
Acquisition of Empathy Lab (Note 2) | 11,359 | — | — | — | 11,359 | ||||||||||||||||
Effect of net foreign currency exchange rate changes | 63 | — | 172 | — | 235 | ||||||||||||||||
Balance as of December 31, 2012 | 16,643 | 2,864 | 3,191 | — | 22,698 | ||||||||||||||||
Effect of net foreign currency exchange rate changes | (205 | ) | — | (225 | ) | — | (430 | ) | |||||||||||||
Balance as of December 31, 2013 | $ | 16,438 | $ | 2,864 | $ | 2,966 | $ | — | $ | 22,268 | |||||||||||
As a result of an operating loss in the Other reporting unit for the three months ended June 30, 2011, the Company performed a goodwill impairment test. In assessing impairment in accordance with Accounting Standards Codification, (“ASC”) No. 350, “Intangibles-Goodwill and Other,” the Company determined that the fair value of the Other reporting unit, based on the total of the expected future discounted cash flows directly related to the reporting unit, was below the carrying value of the reporting unit. The Company completed the second step of the goodwill impairment test, resulting in an impairment charge of $1,697. There were no accumulated impairments losses in any of the North America, Europe or Russia segments as of December 31, 2013, 2012 or 2011. | |||||||||||||||||||||
As part of the Thoughtcorp acquisition, substantially all of the employees of the acquiree accepted employment with the Company. The Company believes the amount of goodwill resulting from the allocation of purchase price to acquire Thoughtcorp is attributable to the workforce of the acquired business. All of the goodwill was allocated to the Company’s Canadian operations and is presented within North America. | |||||||||||||||||||||
As part of the Empathy Lab acquisition, substantially all of the employees of the acquiree accepted employment with the Company. The Company believes the amount of goodwill resulting from the allocation of purchase price to acquire Empathy Lab is attributable to the workforce of the acquired business. All of the goodwill was allocated to the Company’s U.S. operations and is presented within North America. | |||||||||||||||||||||
Components of intangible assets were as follows: | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Weighted average | Gross | Accumulated | Net carrying | ||||||||||||||||||
life at acquisition | carrying | amortization | amount | ||||||||||||||||||
(in years) | amount | ||||||||||||||||||||
Client relationships | 9 | $ | 13,432 | $ | (4,885 | ) | $ | 8,547 | |||||||||||||
Trade name | 5 | 6,232 | (1,643 | ) | 4,589 | ||||||||||||||||
Non-competition agreements | 5 | 848 | (250 | ) | 598 | ||||||||||||||||
Total | $ | 20,512 | $ | (6,778 | ) | $ | 13,734 | ||||||||||||||
2012 | |||||||||||||||||||||
Weighted average | Gross | Accumulated | Net carrying | ||||||||||||||||||
life at acquisition | carrying | amortization | amount | ||||||||||||||||||
(in years) | amount | ||||||||||||||||||||
Client relationships | 9 | $ | 13,724 | $ | (3,640 | ) | $ | 10,084 | |||||||||||||
Trade name | 5 | 6,372 | (439 | ) | 5,933 | ||||||||||||||||
Non-competition agreements | 5 | 881 | (64 | ) | 817 | ||||||||||||||||
Total | $ | 20,977 | $ | (4,143 | ) | $ | 16,834 | ||||||||||||||
All of the intangible assets have finite lives and as such are subject to amortization. Amortization of intangibles for the years ended December 31 is presented in the table below: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Client relationships | $ | 1,373 | $ | 627 | $ | 720 | |||||||||||||||
Trade name | 1,222 | 333 | 59 | ||||||||||||||||||
Non-competition agreements | 190 | 64 | — | ||||||||||||||||||
Total | $ | 2,785 | $ | 1,024 | $ | 779 | |||||||||||||||
Estimated amortization expenses of the Company’s existing intangible assets for the next five years ending December 31, were as follows: | |||||||||||||||||||||
Amount | |||||||||||||||||||||
2014 | $ | 2,503 | |||||||||||||||||||
2015 | 2,376 | ||||||||||||||||||||
2016 | 2,341 | ||||||||||||||||||||
2017 | 1,865 | ||||||||||||||||||||
2018 | 977 | ||||||||||||||||||||
Thereafter | 3,672 | ||||||||||||||||||||
Total | $ | 13,734 |
PREPAID_AND_OTHER_CURRENT_ASSE
PREPAID AND OTHER CURRENT ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
PREPAID AND OTHER CURRENT ASSETS [Abstract] | ' | ||||||||
PREPAID AND OTHER CURRENT ASSETS | ' | ||||||||
4. PREPAID AND OTHER CURRENT ASSETS | |||||||||
Prepaid and other current assets consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Taxes receivable | $ | 7,295 | $ | 4,522 | |||||
Prepaid expenses | 3,399 | 3,825 | |||||||
Security deposits under operating leases | 1,005 | 837 | |||||||
Prepaid equipment | 986 | 1,695 | |||||||
Unamortized software licenses and subscriptions | 981 | 616 | |||||||
Due from employees | 218 | 104 | |||||||
Other | 471 | 236 | |||||||
Total | $ | 14,355 | $ | 11,835 | |||||
EMPLOYEE_LOANS_AND_ALLOWANCE_F
EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | ' | ||||||||
EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES | ' | ||||||||
5. EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES | |||||||||
In the third quarter of 2012, the Board of Directors of the Company approved the Employee Housing Program (“the Housing Program”), which assists employees in purchasing housing in Belarus. The Housing Program was designed to be a retention mechanism for the Company’s employees in Belarus and is available to full-time employees who have been with the Company for at least three years. As part of the Housing Program, the Company will extend financing to employees up to an aggregate amount of $10,000. The Company does not bear any market risk in connection with the Housing Program, as the housing will be sold directly to employees by independent third parties. In addition to the housing loans, the Company issues relocation loans in connection with intra-company transfers, as well as certain other individual loans. | |||||||||
During the year ended December 31, 2013, loans issued by the Company under the Housing Program were denominated in U.S. Dollars with a five-year term and carried an interest rate of 7.5%. | |||||||||
At December 31, 2013 and December 31, 2012, categories of employee loans included in the loan portfolio were as follows: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Housing loans | $ | 5,896 | $ | — | |||||
Relocation and other loans | 494 | 429 | |||||||
Total employee loans | 6,390 | 429 | |||||||
Less: | |||||||||
Allowance for loan losses | — | — | |||||||
Total loans, net of allowance for loan losses | $ | 6,390 | $ | 429 | |||||
There were no loans issued to principal officers, directors, and their affiliates during the years ended December 31, 2013, 2012 and 2011. | |||||||||
On a quarterly basis, the Company reviews the aging of its loan portfolio to evaluate information about the ability of employees to service their debt, including historical payment experience, reasons for payment delays and shortfalls, if any, as well as probability of collecting scheduled principal and interest payments based on the knowledge of individual borrowers, among other factors. | |||||||||
As of December 31, 2013 and December 31, 2012, there were no material past due or non-accrual employee loans. The Company determined no allowance for loan losses was required regarding its employee loans as of December 31, 2013 and December 31, 2012, and there were no movements in provision for loan losses during the years ended December 31, 2013, 2012 and 2011. |
RESTRICTED_CASH_AND_TIME_DEPOS
RESTRICTED CASH AND TIME DEPOSITS | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
RESTRICTED CASH AND TIME DEPOSITS [Abstract] | ' | ||||||||
RESTRICTED CASH AND TIME DEPOSITS | ' | ||||||||
6. RESTRICTED CASH AND TIME DEPOSITS | |||||||||
Restricted cash and time deposits consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Time deposits | $ | 1,188 | $ | 1,006 | |||||
Short-term security deposits under customer contracts | 298 | 660 | |||||||
Long-term deposits under employee loan programs | 225 | 360 | |||||||
Long-term deposits under operating leases | — | 107 | |||||||
Total | $ | 1,711 | $ | 2,133 | |||||
Included in time deposits as of December 31, 2013, was a bank deposit of $1,188. The deposit matures on October 15, 2014 and earns interest at the rate of 2.05%. The Company does not intend to withdraw the deposit prior to its maturity. | |||||||||
Included in time deposits as of December 31, 2012, was a bank deposit of $1,006, which earned interest at the rate of 2.95%. The deposit matured in September 2013. | |||||||||
At December 31, 2013 and 2012 short-term security deposits under customer contracts included fixed amounts placed in connection with bank guarantees to secure appropriate performance by the Company. The Company estimates the probability of non-performance under these contracts as remote therefore, no provision for losses has been recognized in respect of these amounts as of December 31, 2013 and 2012. | |||||||||
Also included in restricted cash as of December 31, 2013 and 2012 were deposits of $225 and $360, respectively, placed in connection with certain employee loan programs (See Note 16). | |||||||||
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT - NET | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
PROPERTY AND EQUIPMENT - NET [Abstract] | ' | ||||||||||||
PROPERTY AND EQUIPMENT - NET | ' | ||||||||||||
7. PROPERTY AND EQUIPMENT — NET | |||||||||||||
Property and equipment consisted of the following: | |||||||||||||
Useful Life | December 31, | December 31, | |||||||||||
(in years) | 2013 | 2012 | |||||||||||
Computer hardware | 3 | $ | 29,884 | $ | 24,239 | ||||||||
Leasehold improvements | lease term | 5,903 | 5,527 | ||||||||||
Furniture and fixtures | 7 | 5,688 | 4,351 | ||||||||||
Purchased computer software | 3 | 5,042 | 4,452 | ||||||||||
Office equipment | 7 | 4,679 | 4,325 | ||||||||||
Building | 50 | 16,534 | 16,534 | ||||||||||
Construction in progress (Note 16) | n/a | 15,749 | 15,561 | ||||||||||
83,479 | 74,989 | ||||||||||||
Less accumulated depreciation and amortization | (30,164 | ) | (21,854 | ) | |||||||||
Total | $ | 53,315 | $ | 53,135 | |||||||||
Depreciation and amortization expense related to property and equipment was $12,335, $9,858 and $6,759 for the years ended December 31, 2013, 2012 and 2011, respectively. |
ACCRUED_EXPENSES_AND_OTHER_LIA
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | ' | ||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES | ' | ||||||||
8 | ACCRUED EXPENSES AND OTHER LIABILITIES | ||||||||
Accrued expenses consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Compensation | $ | 13,674 | $ | 15,450 | |||||
Subcontractor costs | 2,933 | 1,915 | |||||||
Professional fees | 947 | 544 | |||||||
Facilities costs | 334 | 297 | |||||||
Other | 2,287 | 1,608 | |||||||
Total | $ | 20,175 | $ | 19,814 |
TAXES_PAYABLE
TAXES PAYABLE | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
TAXES PAYABLE [Abstract] | ' | ||||||||
TAXES PAYABLE | ' | ||||||||
9 | TAXES PAYABLE | ||||||||
Current taxes payable consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Corporate profit tax | $ | 3,717 | $ | 3,315 | |||||
Value added taxes | 5,975 | 6,274 | |||||||
Payroll, social security, and other taxes | 4,479 | 4,968 | |||||||
Total | $ | 14,171 | $ | 14,557 | |||||
As of December 31, 2013 and 2012, long-term taxes payable included amounts in respect of unrecognized tax benefits and related interest. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
10. INCOME TAXES | |||||||||||||
Income before provision for income taxes shown below was based on the geographic location to which such income was attributed as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income before income tax expense: | |||||||||||||
Domestic | $ | 7,001 | $ | 9,291 | $ | 2,872 | |||||||
Foreign | 69,769 | 56,572 | 49,920 | ||||||||||
Total | $ | 76,770 | 65,863 | $ | 52,792 | ||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax expense/ (benefit) consists of: | |||||||||||||
Current | |||||||||||||
Federal | $ | 6,150 | $ | 6,881 | $ | 4,878 | |||||||
State | 310 | 319 | 389 | ||||||||||
Foreign | 8,275 | 7,969 | 2,483 | ||||||||||
Deferred | |||||||||||||
Federal | (668 | ) | (625 | ) | (1,629 | ) | |||||||
State | 14 | 24 | (72 | ) | |||||||||
Foreign | 695 | (3,189 | ) | 2,390 | |||||||||
Total | $ | 14,776 | $ | 11,379 | $ | 8,439 | |||||||
Deferred tax assets and liabilities are provided for the effects of temporary differences between the tax basis of an asset and liability and its reported amount in the consolidated balance sheets. These temporary differences result in taxable or deductible amounts in future years. | |||||||||||||
The components of the Company’s deferred tax assets and liabilities were as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Fixed assets | $ | 732 | $ | 703 | |||||||||
Intangible assets | 4,532 | 4,737 | |||||||||||
Accrued expenses | 3,488 | 4,042 | |||||||||||
Deferred revenue | 2,050 | 1,583 | |||||||||||
Stock-based compensation | 407 | 413 | |||||||||||
Valuation allowance | — | (489 | ) | ||||||||||
Restricted stock options | 1,336 | 1,616 | |||||||||||
Other assets | 680 | 1,214 | |||||||||||
Deferred tax assets | 13,225 | 13,819 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Fixed assets | 804 | 742 | |||||||||||
Accrued revenue and expenses | 846 | 737 | |||||||||||
Deferred intercompany gain | 405 | 405 | |||||||||||
Equity compensation | 1,593 | 2,431 | |||||||||||
Other liabilities | 254 | — | |||||||||||
Deferred tax liability | 3,902 | 4,315 | |||||||||||
Net deferred tax asset | $ | 9,323 | $ | 9,504 | |||||||||
At December 31, 2013, the Company had current and non-current deferred tax assets of $5,392 and $4,557, respectively, and current and non-current tax liabilities of $275 and $351, respectively. At December 31, 2012, the Company had current and non-current deferred tax assets of $6,593 and $6,093, respectively and current and non-current tax liabilities of $491 and $2,691, respectively. | |||||||||||||
Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the amount of tax holiday the company can use in Hungary before the credit expires in that jurisdiction in 2015. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. | |||||||||||||
On the basis of this evaluation, as of December 31, 2013, no valuation allowance is required to record the portion of the deferred tax asset that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. | |||||||||||||
At December 31, 2013, the Company had utilized all of its federal net operating losses. No provision has been made for U.S. or non-U.S. income taxes on the undistributed earnings of subsidiaries or for unrecognized deferred tax liabilities for temporary differences related to basis differences in investments in subsidiaries, as such earnings are expected to be permanently reinvested, the investments are essentially permanent in duration, or the Company has concluded that no additional tax liability will arise as a result of the distribution of such earnings. As of December 31, 2013, certain subsidiaries had approximately $249.6 million of undistributed earnings that we intend to permanently reinvest. A liability could arise if our intention to permanently reinvest such earnings were to change and amounts are distributed by such subsidiaries or if such subsidiaries are ultimately disposed. It is not practicable to estimate the additional income taxes related to permanently reinvested earnings or the basis differences related to investments in subsidiaries. | |||||||||||||
The provision for income taxes differs from the amount of income tax determined by applying the applicable US statutory federal income tax rate to pretax income as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal tax | $ | 26,102 | $ | 22,393 | $ | 18,482 | |||||||
Increase/ (decrease) in taxes resulting from: | |||||||||||||
State taxes, net of federal benefit | 368 | 280 | 266 | ||||||||||
Provision adjustment for current year uncertain tax position | — | — | 178 | ||||||||||
Effect of permanent differences | 2,524 | 2,177 | 2,816 | ||||||||||
Stock-based compensation | 1,948 | 1,165 | — | ||||||||||
Rate differential between U.S. and foreign | (17,279 | ) | (14,472 | ) | (13,297 | ) | |||||||
Change in foreign tax rate | (59 | ) | 148 | (22 | ) | ||||||||
Change in valuation allowance | 489 | (489 | ) | — | |||||||||
Other | 683 | 177 | 16 | ||||||||||
Income tax expense | $ | 14,776 | $ | 11,379 | $ | 8,439 | |||||||
The growth in the permanent differences in the year ended December 31, 2012 related to goodwill impairment loss and increases in non-deductible expenses incurred by foreign subsidiaries. | |||||||||||||
On September 22, 2005, the president of Belarus signed the decree “On the High-Technologies Park” (the “Decree”). The Decree is aimed at boosting the country’s high-technology sector. The Decree stipulates that member technology companies have a 100% exemption from Belarusian income tax of 18% effective July 1, 2006. The Decree is in effect for a period of 15 years from date of signing. | |||||||||||||
The Company’s subsidiary in Hungary benefits from a tax credit of 10% of annual qualified salaries, taken over a four-year period, for up to 70% of the total tax due for that period. The Company has been able to take the full 70% credit for 2008 - 2013. The Hungarian tax authorities repealed the tax credit beginning with 2012. Credits earned in years prior to 2012, will be allowed until fully utilized. The Company anticipates full utilization up to the 70% limit until 2014, with full phase out in 2015. | |||||||||||||
The aggregate dollar benefits derived from these tax holidays approximated $9.7 million, $8.5 million and $21.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. The decrease in aggregate dollar benefits derived from these tax holidays in 2013, as compared to 2012, was primarily due to a decrease in statutory tax rate in Belarus. The benefit the tax holiday had on diluted net income per share approximated $0.20, $0.19 and $0.49 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
The liability for unrecognized tax benefits is included in income tax liability within the consolidated balance sheets at December 31, 2013 and 2012. At December 31, 2013 and 2012, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state tax positions) was $1,271 and $1,271, respectively, (excluding penalties and interest of $189 and $125, respectively). Of this total, $1,328 and $1,354, respectively, (net of the federal benefit on state tax issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. | |||||||||||||
The Company’s policy is to recognize interest and penalties related to uncertain tax positions as a component of its provision for income taxes. The total amount of accrued interest and penalties resulting from such unrecognized tax benefits was $189, $125 and $55 at December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
The beginning to ending reconciliation of the gross unrecognized tax benefits were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Gross Balance at January 1 | $ | 1,271 | $ | 1,271 | $ | 56 | |||||||
Increases in tax positions in current year | — | — | 178 | ||||||||||
Increases in tax positions in prior year | — | — | 1,093 | ||||||||||
Decreases due to settlement | — | — | (56 | ) | |||||||||
Balance at December 31 | $ | 1,271 | $ | 1,271 | $ | 1,271 | |||||||
There were no tax positions for which it was reasonably possible that unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. | |||||||||||||
The Company files income tax returns in the United States and in various states, local and foreign jurisdictions. The Company’s significant tax jurisdictions are the U.S. Federal, Pennsylvania, Canada, Russia, Denmark, Germany, Ukraine, the United Kingdom, Hungary, Switzerland and Kazakhstan. The tax years subsequent to 2009 remain open to examination by the Internal Revenue Service. Generally, the tax years subsequent to 2009 remain open to examination by various state and local taxing authorities and various foreign taxing authorities. |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2012 | |
EMPLOYEE BENEFITS [Abstract] | ' |
EMPLOYEE BENEFITS | ' |
11. EMPLOYEE BENEFITS | |
The Company has established a 401(k) retirement plan, which is a tax-qualified self-funded retirement plan covering substantially all of the Company’s U.S. employees. Under this plan, employees may elect to defer their current compensation by up to the statutory limit. Effective January 1, 2013, the Company provides discretionary matching contributions to the plan up to a maximum of 2.0% of the employee’s eligible compensation. Employer contributions charged to expense for the year ended December 31, 2013 were $404. The Company does not maintain any defined benefit pension plans or any nonqualified deferred compensation plans. |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2012 | |
LONG-TERM DEBT [Abstract] | ' |
LONG-TERM DEBT | ' |
12. LONG-TERM DEBT | |
Revolving Line of Credit — In November 2006, the Company entered into a revolving loan agreement (the “Credit Facility”) with PNC Bank, National Association (the “Bank”). The Credit Facility was comprised of a five-year revolving line of credit pursuant to which the Company could borrow up to $7,000 at any point in time based on borrowing availability at an annual rate equal to the London Interbank Offer Rate, or LIBOR, plus 1.25%. The borrowing availability under the Credit Facility was based upon a percentage of eligible accounts receivable and US cash. On July 25, 2011, the Company and the Bank agreed to amend the Credit Facility to increase the maximum borrowing capacity to $30,000. | |
On January 15, 2013, the Company entered into a new revolving loan agreement (the “2013 Credit Facility”) with the Bank, which expires on January 15, 2015. Under the new agreement, the Company’s maximum borrowing capacity was set at $40,000. Advances under the new line of credit accrue interest at an annual rate equal to the LIBOR, plus 1.25%. The 2013 Credit Facility is collateralized with: (a) all tangible and intangible assets of the Company, and its U.S.-based subsidiaries including all accounts, general intangibles, intellectual property rights, equipment; and (b) all of the outstanding shares of capital stock and other equity interests in U.S.-based subsidiaries of the Company, and 65.0% of the outstanding shares of capital stock and other equity interests in certain of the Company’s foreign subsidiaries. | |
As of December 31, 2013, the borrowing capacity of the Company under the 2013 Credit Facility was $40,000. | |
The 2013 Credit Facility contains customary affirmative and negative covenants, including financial and coverage ratios. As of December 31, 2013, the Company was in compliance with all debt covenants as of that date. | |
As of December 31, 2013 and 2012, the Company had no outstanding borrowing. |
COMMON_AND_PREFERRED_STOCK
COMMON AND PREFERRED STOCK | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
COMMON AND PREFERRED STOCK [Abstract] | ' | ||||
COMMON AND PREFERRED STOCK | ' | ||||
13. COMMON AND PREFERRED STOCK | |||||
On January 19, 2012, the Company effected an 8-for-1 stock split of the Company’s common stock, on which date the number of authorized common and preferred stock was increased to 160,000,000 and 40,000,000 shares, respectively. All shares of common stock, options to purchase common stock and per share information presented in the consolidated financial statements have been adjusted to reflect the stock split on a retroactive basis for all periods presented. There was no change in the par value of the Company’s common stock. The ratio by which the then outstanding shares of Series A-1 Preferred, Series A-2 Preferred and Series A-3 Preferred Stock were convertible into shares of common stock was adjusted to reflect the effects of the common stock split, such that each share of preferred stock was convertible into eight shares of common stock. | |||||
In February 2012, the Company completed an initial public offering of 6,900,000 shares of its common stock, which included 900,000 shares of common stock sold by the Company pursuant to an over-allotment option granted to the underwriters, which were sold at a price to the public of $12.00 per share. The offering commenced on February 7, 2012 and closed on February 13, 2012. Of the 6,900,000 shares of common stock sold, the Company issued and sold 2,900,000 shares of common stock and its selling stockholders sold 4,000,000 shares of common stock, resulting in gross proceeds to the Company of $34,800 and $28,969 in net proceeds after deducting underwriting discounts and commissions of $2,436 and offering expenses of $3,395. The Company did not receive any proceeds from the sale of common stock by the selling stockholders. | |||||
On August 20, 2010, the Company entered into an agreement with Instant Information Inc. to issue shares of common stock to Instant Information Inc. as consideration for the acquisition of the assets of Instant Information Inc. subject to achievement of certain financial milestones or upon completion of an initial public offering by the Company. A total of 53,336 shares of common stock were issued to Instant Information Inc. upon completion of the Company’s initial public offering for an aggregate value of $640, which was expensed during the first quarter of 2012. | |||||
Upon the closing of the initial public offering, all outstanding Series-A1 and Series-A2 convertible redeemable preferred stock, and Series A3 convertible preferred stock were converted into a total of 21,840,128 shares of common stock, as shown in the table below. | |||||
Conversion Shares | |||||
Series A-1 Convertible Redeemable Preferred Stock | 16,439,480 | ||||
Series A-2 Convertible Redeemable Preferred Stock | 3,078,432 | ||||
Series A-3 Convertible Preferred Stock | 2,322,216 | ||||
Total | 21,840,128 | ||||
Series A-1 Convertible Redeemable Preferred Stock (“Series A-1 Preferred”) — On January 20, 2006, Siguler Guff LLC, a New York based private equity investment firm, acting through its affiliated investment funds Russia Partners II LP (“RPII”) and Russia Partners EPAM Fund LP (“RPE”), purchased 657,354 shares of Series A-1 Preferred at $12.17 per share or $8,000. At the same time, RPII and RPE also acquired 11,180,648 shares of the Company’s common stock from existing holders, and the Company enabled RPII and RPE to convert such shares into 1,397,581 shares of Series A-1 Preferred. The difference between the share price of the Series A-1 Preferred ($12.17 per share) and the common stock ($1.13 per share) exchanged of $6,803 has been recorded as a deemed dividend. The Company accreted the 12.5% compounded annual rate of return through April 15, 2010, in accordance with the redemption provision as detailed below. There was no accretion for the years ended December 31, 2013, 2012 and 2011. The ending redemption value was $41,245 at December 31, 2011. | |||||
The terms of the Series A-1 Preferred were as follows: | |||||
Dividends — No dividends will be paid on the Series A-1 Preferred unless dividends are paid on common stock. | |||||
Liquidation — Before any payment to the common stockholders, the Series A-1 Preferred will receive their purchase price of the Series A-1 Preferred ($12.17 per share) plus a 12.5% compounded annual rate of return on the purchase price. | |||||
If the assets distributable to the holders of the Series A Preferred upon a liquidation are insufficient to pay the full Series A-1, A-2 and A-3 Preferred liquidation amounts, then such assets or the proceeds shall be distributed among the holders of the Series A-1, A-2 and A-3 Preferred ratably in proportion to the respective amount to which they otherwise would be entitled. | |||||
The liquidation amount is equal to the carrying value for all periods presented. | |||||
Redemption — At any time after January 1, 2011, if the Company has not affected a qualified public offering, as defined, the holders of at least a majority of the then outstanding shares of Series A-1 Preferred, voting together as a separate class, may by written request, require the Company to redeem all or any number of shares of the Series A-1 Preferred in four equal semi-annual installments beginning thirty calendar days from the date of the redemption election and ending on the date one and one-half years after such date. The Company shall affect such redemptions on the applicable redemption date by paying in cash in exchange for each share of Series A-1 Preferred to be redeemed then outstanding an amount equal to the Series A-1 Preferred liquidation amount ($12.17 per share plus a 12.5% compounded annual rate of return) on such redemption date. | |||||
Pursuant to section 6.8 of the Series A-3 convertible preferred stock purchase agreement, the 12.5% compounded annual return related to the Series A-1 Preferred, which has been part of the Series A-1 liquidation amount, ceases after the date of issuance of the Series A-3 Preferred. EPAM terminated the accretion related to this liquidation amount on or about April 15, 2010. | |||||
Voting — Each holder of a share of Series A-1 Preferred shall be entitled to voting rights and powers equal to the voting rights and powers of the common stock (except as otherwise expressly provided or as required by law) voting together with the common stock as a single class on an as-converted to common stock basis. Each share of Series A-1 Preferred (including fractional shares) shall be entitled to one vote for each whole share of common stock that would be issuable upon conversion of such shares on the record date for determining eligibility to participate in the action being taken. | |||||
Conversion Rights — Any holder of Series A-1 Preferred may convert any share of Series A-1 Preferred held by such holder into a number of shares of common stock determined by dividing (i) the Series A-1 Preferred purchase price ($12.17 per share) by (ii) the Series A-1 conversion price then in effect. The initial conversion price for the Series A-1 Preferred (the “Series A-1 Conversion Price”) shall be equal to the purchase price ($12.17 per share). The Series A-1 Conversion Price from time to time in effect is subject to adjustment, as defined. Each share of Series A-1 Preferred shall automatically be converted into shares of common stock at the then effective applicable Series A-1 Conversion Price upon the earliest of (i) the date specified by vote or written consent or agreement of holders of at least a majority of the shares of Series A-1 Preferred then outstanding, (ii) effective immediately before a qualified public offering, as defined, or (iii) effective upon the closing of a liquidation or a reorganization event, as defined, that results in the receipt of a per share amount of cash proceeds or non-cash property valued equal to or greater than the Series A-1 Preferred liquidation amount, as defined. | |||||
Series A-2 Convertible Redeemable Preferred Stock (“Series A-2 Preferred”) — On February 19, 2008, the Company completed a private placement and raised net proceeds of $47,601 ($50,000 gross less $2,399 costs) from the sale of 675,081 shares of Series A-2 Preferred at a sale price of $74.07 per share. Annual accretion was $0, $0 and $17,563 for the years ended December 31, 2013, 2012 and 2011, respectively. The ending carrying value was $0, $0 and $44,695 at December 31, 2013, 2012 and 2011, respectively. | |||||
In connection with this private placement, the Company designated the Series A-2 Preferred as a new series of preferred stock and renamed the existing series of shares of Series A preferred stock as Series A-1 Preferred. | |||||
On January 19, 2010, the Company entered into a stock repurchase agreement with certain stockholders to repurchase 290,277 of Series A-2 Convertible Redeemable Preferred Stock at a per share price of $51.85 for a total consideration of $15,050. On November 10, 2010, Board of Directors of the Company voted to retire these shares. | |||||
The Series A-2 Preferred shares had the following rights and preferences: | |||||
Dividends — No dividends will be paid on the Series A-2 Preferred unless dividends are paid on common stock. | |||||
Liquidation — Before any payment to the common stockholders, the Series A-2 Preferred holders will receive their liquidation preference. | |||||
In the event of any liquidation that values 100% of the equity securities of the Company on a fully-diluted basis at an amount that is less than the Series A-2 post-money valuation, as defined, the holders of shares of Series A-2 Preferred shall be entitled to receive either their per share purchase price of the Series A-2 Preferred ($74.07) plus a 12.5% compounded annual rate of return if the purchase price is less than the percentage ceiling amount, defined for purposes of liquidation as 17.1% of cash proceeds or non-cash property received by the Company in the event of any liquidation, or the greater of (1) $74.07 per share and (2) the percentage ceiling amount. | |||||
In the event of liquidation that values 100% of the equity securities of the Company on a fully-diluted basis at an amount that is equal to or greater than the Series A-2 post-money valuation, as defined, the holders of shares of Series A-2 Preferred shall be entitled to receive either their per share purchase price of the Series A-2 Preferred ($74.07) plus a 12.5% to 18% compounded annual rate of return on the purchase price, if greater than the percentage ceiling amount, or the percentage ceiling amount. | |||||
If the assets distributable to the holders of the Series A Preferred upon a liquidation are insufficient to pay the full Series A-1, A-2 and A-3 Preferred liquidation amounts, then such assets or the proceeds shall be distributed among the holders of the Series A-1, A-2 and A-3 Preferred ratably in proportion to the respective amount to which they otherwise would be entitled. | |||||
Redemption — At any time before January 1, 2011, if the Company has not effected a qualified public offering, as defined, the holders of at least a majority of the then outstanding shares of Series A-2 Preferred, may, by written request, require the Company to redeem all or any number of shares of the Series A-2 Preferred in three equal installments payable no later than the 12th, 18th and 24th month following the date of the redemption election. The Company shall effect such redemptions on the applicable redemption date by paying in cash in exchange for each shares of Series A-2 Preferred to be redeemed then outstanding, a per share amount equal to the lesser of (x) an amount that would provide a compounded annual return of 12.5% from the date of initial issuance date and (y) the percentage ceiling amount. At any time on or after January 1, 2011, the redemption per share amount is equal to the lesser of (x) the hurdle amount, an amount that would provide an annual IRR, as defined, from the initial issuance date of such share of at least 17%, provided, however, that the hurdle amount, as defined, shall cease to compound after December 31, 2010 and (y) the percentage ceiling amount, as defined. The percentage ceiling amount means, initially, 17.1% and thereafter adjusted pro rata for any changes in the percentage of capital stock of the Company owned by the holders of shares of Series A-2 Preferred (on a fully diluted basis) multiplied by the aggregate value of all Common Stock (assuming conversion of the Series A Preferred) as reasonably determined by the Board in good faith. | |||||
Voting — Each holder of a Series A-2 Preferred shall be entitled to voting rights and powers equal to the voting rights and powers of common stock (except as otherwise expressly provided or as required by law) voting together with the common stock as a single class on an as-converted to common stock basis. Each share of Series A-2 Preferred (including fractional shares) shall be entitled to one vote for each whole share of common stock that would be issuable upon conversion of such shares on the record date for determining eligibility to participate in the action being taken. | |||||
Conversion rights — Any holder of Series A-2 Preferred may convert any share of Series A-2 Preferred held by such holder into a number of shares of common stock determined by dividing (i) the Series A-2 Preferred purchase price ($74.07 per share) by (ii) the Series A-2 conversion price then in effect. The initial conversion price for the Series A-2 Preferred (the “Series A-2 Conversion Price”) shall be equal to the purchase price ($74.07 per share). The Series A-2 Conversion Price from time in effect is subject to adjustment, as defined. Each share of Series A-2 Preferred shall automatically be converted into shares of common stock at the then effective applicable Series A-2 Conversion Price upon the earliest of (i) the date specified by vote or written consent or agreement of holders of at least a majority of the shares of Series A-2 Preferred then outstanding, (ii) effective immediately before a qualified public offering, as defined. or (iii) effective upon the closing of a liquidation or a reorganization event, as defined, that results in the receipt per share of amount of cash proceeds or non-cash property valued equal to or greater than, the lesser of (x) their purchase price of the Series A-2 Preferred ($74.07 per share) plus a 12.5% compounded annual rate of return on the purchase price and (y) the percentage ceiling amount, as defined. | |||||
Registration Rights — The holders of at least majority of the Series A-2 Preferred holders, may, by written request, require the Company to file a registration statement with certain limitations. | |||||
Series A-3 Convertible Preferred Stock (“Series A-3 Preferred”) — On April 15, 2010, the Company created and issued 290,277 shares of Series A-3 Preferred at $51.85 per share, for a total consideration of $14,971, net of costs. | |||||
The Series A-3 Preferred had the following rights and preferences: | |||||
Dividends — No dividends will be paid on the Series A-3 Preferred unless dividends are paid on common stock. | |||||
Liquidation — Before any payment to the common stockholders, the Series A-3 Preferred holders will receive their liquidation preference. | |||||
In the event of liquidation that values 100% of the equity securities of the Company on a fully-diluted basis at an amount that is equal to or greater than the Series A-3 liquidation amount, as defined, the holders of shares of Series A-3 Preferred shall be entitled to receive their pro rata portion based on the per share amount available to common stockholders. | |||||
If the assets distributable to the holders of the Series A Preferred upon a liquidation are insufficient to pay the full Series A-1, | |||||
A-2 and A-3 Preferred liquidation amounts, then such assets or the proceeds shall be distributed among the holders of the Series A-1, A-2 and A-3 Preferred ratably in proportion to the respective amount to which they otherwise would be entitled. | |||||
The liquidation amount is equal to the carrying value for all periods presented. | |||||
Voting — Each holder of a Series A-3 Preferred shall be entitled to voting rights and powers equal to the voting rights and powers of common stock (except as otherwise expressly provided or as required by law) voting together with the common stock as a single class on an as-converted to common stock basis. Each share of Series A-3 Preferred (including fractional shares) shall be entitled to one vote for each whole share of common stock that would be issuable upon conversion of such shares on the record date for determining eligibility to participate in the action being taken. | |||||
Conversion rights — Any holder of Series A-3 Preferred may convert any share of Series A-3 Preferred held by such holder into a number of shares of common stock determined by dividing (i) the Series A-3 Preferred purchase price ($51.85 per share) by (ii) the Series A-3 conversion price then in effect. The initial conversion price for the Series A-3 Preferred (the “Series A-3 Conversion Price”) shall be equal to the purchase price ($51.85 per share). The Series A-3 Conversion Price from time in effect is subject to adjustment, as defined. Each share of Series A-3 Preferred shall automatically be converted into shares of common stock at the then effective applicable Series A-3 Conversion Price upon the earliest of (i) the date specified by vote or written consent or agreement of holders of at least a majority of the shares of Series A-3 Preferred then outstanding, (ii) effective immediately before a qualified public offering, as defined, or (iii) effective upon the closing of a liquidation or a reorganization event, as defined. | |||||
Registration Rights — The holders of at least a majority of the Series A-3 Preferred holders, may, by written request, require the Company to file a registration statement with certain limitations. | |||||
Puttable Stock — As part of consideration paid in business combinations, the Company issued common stock to certain stockholders of the acquired companies. The shares had an attached Put Option that provided the holders with the right to put the shares at the original per share value in the event the Company did not have a qualified public offering or reorganization event within a specified period from the acquisition date. During 2011, put options in respect of 56,896 of puttable common stock expired unexecuted. | |||||
Treasury Stock — During the years ended December 31, 2013 and 2012, the Company issued treasury stock in connections with acquisitions completed in 2012 (See Note 2). In addition, in May 2012, Board of Directors of the Company voted to retire 38,792 shares of its treasury stock. | |||||
STOCK_COMPENSATION
STOCK COMPENSATION | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
STOCK COMPENSATION [Abstract] | ' | ||||||||||||
STOCK COMPENSATION | ' | ||||||||||||
14. STOCK COMPENSATION | |||||||||||||
The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income and comprehensive income: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cost of revenues | $ | 4,823 | $ | 2,809 | $ | 1,365 | |||||||
Selling, general and administrative | 8,327 | 4,017 | 1,501 | ||||||||||
Total | $ | 13,150 | $ | 6,826 | $ | 2,866 | |||||||
During the second quarter of 2013, the Company finalized the fair values of the net assets acquired from Empathy Lab (See Note 2). As a result, the Company issued an additional 1,483 shares of non-vested (“restricted”) common stock to the sellers of Empathy Lab on July 11, 2013 to settle the difference between the initial number of shares issued upon acquisition and the total number of shares due in connection with this transaction. The shares vest 33.33% on each of the first, second and third anniversaries of the closing date. Upon termination of the recipient’s services with the Company with Cause or without Good Reason (in each case, as defined in the escrow agreement), any unvested shares will be forfeited. The fair value of the restricted shares at the time of grant was $42. | |||||||||||||
2012 Non-Employee Directors Compensation Plan—On January 11, 2012, the Company approved the 2012 Non-Employee Directors Compensation Plan (“2012 Directors Plan”), which will be used to issue equity grants to its non-employee directors. The Company authorized 600,000 shares of common stock to be reserved for issuance under the plan. The 2012 Directors Plan will expire after ten years and will be administered by the Company’s Board of Directors. | |||||||||||||
On January 8, 2013, the Company issued 5,257 shares of non-vested (“restricted”) common stock to its new non-employee director under the 2012 Directors Plan. The shares will vest and become unforfeitable 25% on each of the first, second, third and fourth anniversaries of the grant date. Upon termination of service from the Board at any time, a portion of these shares shall vest as of the date of such termination on a pro rata basis determined by the number of days that the participant served on the Board from the grant date through the date of such termination. The fair value of the restricted shares at the time of grant was $101. | |||||||||||||
On June 13, 2013, the Company issued 8,784 shares of non-vested (“restricted”) common stock to its non-employee directors under the 2012 Non-Employee Directors Compensation Plan. The shares will vest and become unforfeitable on the first anniversary of the grant date. Upon termination of service from the Board at any time, a portion of these shares shall vest as of the date of such termination on a pro rata basis determined by the number of days that the participant served on the Board from the grant date through the date of such termination. The fair value of the restricted shares at the time of grant was $225. | |||||||||||||
2012 Long-Term Incentive Plan — On January 11, 2012, the Company approved the 2012 Long-Term Incentive Plan (“2012 Plan”), which will be used to issue equity grants to employees. As of December 31, 2013, 7,042,568 shares of common stock remained available for issuance under the 2012 Plan. This includes (i) any shares that were available for issuance under the 2006 Plan (as defined below) as of its discontinuance date and that became available for issuance under the 2012 Plan and (ii) any shares that were subject to outstanding awards under the 2006 Plan and have expired or terminated or were cancelled between the discontinuance date of the 2006 Plan and December 31, 2013 and therefore became available for issuance under the 2012 Plan. In addition, up to 2,647,121 shares that are subject to outstanding awards as of December 31, 2013 under the 2006 Plan and that expire or terminate for any reason prior to exercise or that would otherwise have returned to the 2006 Plan’s share reserve under the terms of the 2006 Plan will be available for awards to be granted under the 2012 Plan. | |||||||||||||
During the year ended December 31, 2013, the Company issued a total of 1,987,952 shares underlying stock options under the 2012 Plan with an aggregate grant-date fair value of $19,473. | |||||||||||||
2006 Stock Option Plan — Effective May 31, 2006, the Board of Directors of the Company adopted the 2006 Stock Option Plan (the “2006 Plan”). The Company’s stock option plan permitted the granting of options to directors, employees, and certain independent contractors. The Compensation Committee of the Board of Directors generally had the authority to select individuals who were to receive options and to specify the terms and conditions of each option so granted, including the number of shares covered by the option, the exercise price, vesting provisions, and the overall option term. In January 2012, the 2006 Plan was discontinued; however, outstanding awards remain subject to the terms of the 2006 Plan and any shares that are subject to an option that was previously granted under the 2006 Plan and that will expire or terminate for any reason prior to exercise will become again available for issuance under the 2012 Plan. All of the options issued pursuant to the 2006 Plan expire ten years from the date of grant. | |||||||||||||
Stock option activity under the Company’s plans is set forth below: | |||||||||||||
Number of | Weighted | Aggregate | |||||||||||
Options | Average | Intrinsic | |||||||||||
Exercise Price | Value | ||||||||||||
Options outstanding at January 1, 2011 | 6,378,584 | $ | 3.79 | $ | 19,708 | ||||||||
Options granted | 600,000 | 14 | 1,200 | ||||||||||
Options exercised | (47,600 | ) | 1.52 | (499 | ) | ||||||||
Options forfeited/cancelled | (335,848 | ) | 5.3 | (2,250 | ) | ||||||||
Options outstanding at December 31, 2011 | 6,595,136 | $ | 4.65 | $ | 48,447 | ||||||||
Options granted | 1,443,810 | 16.8 | 1,877 | ||||||||||
Options exercised | (1,552,742 | ) | 3.53 | (22,623 | ) | ||||||||
Options forfeited/cancelled | (189,495 | ) | 11.35 | (1,279 | ) | ||||||||
Options outstanding at December 31, 2012 | 6,296,709 | $ | 7.51 | $ | 66,682 | ||||||||
Options granted | 1,987,952 | 23.6 | 22,543 | ||||||||||
Options exercised | (2,156,898 | ) | 4.31 | (66,066 | ) | ||||||||
Options forfeited/cancelled | (304,227 | ) | 11.5 | (7,131 | ) | ||||||||
Options outstanding at December 31, 2013 | 5,823,536 | $ | 13.99 | $ | 122,003 | ||||||||
Options vested and exercisable at December 31, 2013 | 2,555,245 | $ | 5.89 | $ | 74,230 | ||||||||
Options expected to vest | 3,010,762 | $ | 20.19 | $ | 44,409 | ||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The Company recognizes the fair value of each option as compensation expense ratably using the straight-line method over the service period (generally the vesting period). The Black-Scholes model incorporates the following assumptions: | |||||||||||||
a. Expected volatility — the Company estimated the volatility of its common stock at the date of grant using historical volatility of peer public companies for the year ended December 31, 2011. In order to compare volatilities for different interval lengths, the Company expresses volatility in annual terms. The Company applied the same approach regarding the stock options issued in 2013 and 2012 due to insufficiency of historical volatility data of its stock prices at the time of grant. The expected volatility was 46% in both years ended December 31, 2013 and 2012, and 43% in the year ended December 31, 2011. | |||||||||||||
b. Expected term — the Company estimates the expected term of options granted using the simplified method of determining expected term as outlined in SEC Staff Accounting Bulletin 107 as used for grants. The expected term was 6.24 years in 2013, and 6.25 years in both 2012 and 2011. | |||||||||||||
c. Risk-free interest rate — the Company estimates the risk-free interest rate using the U.S. Treasury yield curve for periods equal to the expected term of the options in effect at the time of grant. The risk-free rate was approximately 1.41%, 1.13% and 2.05% in 2013, 2012 and 2011, respectively. | |||||||||||||
d. Dividends — the Company uses an expected dividend yield of zero since it has never declared or paid any dividends on its common stock. The Company intends to retain any earnings to fund future growth and the operation of its business and, therefore, does not anticipate paying any cash dividends in the foreseeable future. | |||||||||||||
Additionally, the Company estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. It uses a combination of historical data and other factors to estimate pre-vesting option forfeitures and record share-based compensation expense only for those awards that are expected to vest. | |||||||||||||
As of December 31, 2013, there was $28,921 of total unrecognized compensation cost related to non-vested share-based compensation awards. That cost is expected to be recognized over the next two years using the weighted average method. | |||||||||||||
Summary of restricted stock activity is presented below: | |||||||||||||
Number of | Weighted Average | ||||||||||||
Shares | Grant Date Fair | ||||||||||||
Value Per Share | |||||||||||||
Unvested restricted stock outstanding at January 1, 2011 | — | $ | — | ||||||||||
Restricted stock granted | — | — | |||||||||||
Restricted stock vested | — | — | |||||||||||
Unvested restricted stock outstanding at December 31, 2011 | — | $ | — | ||||||||||
Restricted stock granted | 757,272 | 17.15 | |||||||||||
Restricted stock vested | (97,400 | ) | 12 | ||||||||||
Unvested restricted stock outstanding at December 31, 2012 | 659,872 | $ | 17.92 | ||||||||||
Restricted stock granted | 15,524 | 23.69 | |||||||||||
Restricted stock vested | (330,468 | ) | 17.33 | ||||||||||
Unvested restricted stock outstanding at December 31, 2013 | 344,928 | $ | 18.74 |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||
15. EARNINGS PER SHARE | |||||||||||||
Basic EPS is computed by dividing the net income applicable to common stockholders for the period by the weighted average number of shares of common stock outstanding during the same period. Our Series A-1 Preferred, Series A-2 Preferred, Series A-3 Preferred, restricted stock units and puttable common stock were considered participating securities since these securities had non-forfeitable rights to dividends or dividend equivalents during the contractual period of the award and thus required the two-class method of computing EPS. When calculating diluted EPS, the numerator is computed by adding back the undistributed earnings allocated to the participating securities in arriving at the basic EPS and then reallocating such undistributed earnings among the company’s common stock, participating securities and the potential common shares that result from the assumed exercise of all dilutive options. The denominator is increased to include the number of additional common shares that would have been outstanding had the options been issued. | |||||||||||||
The following table sets forth the computation of basic and diluted earnings per share as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator for common earnings per share: | |||||||||||||
Net income | $ | 61,994 | $ | 54,484 | $ | 44,353 | |||||||
Accretion of preferred stock | — | — | (17,563 | ) | |||||||||
Net income allocated to participating securities | — | (3,341 | ) | (15,025 | ) | ||||||||
Effect on income available from redemption of preferred stock | — | — | — | ||||||||||
Numerator for basic/ (common) earnings per share | 61,994 | 51,143 | 11,765 | ||||||||||
Effect on income available from reallocation of options | — | 261 | 1,185 | ||||||||||
Numerator for diluted/ (common) earnings per share | $ | 61,994 | $ | 51,404 | $ | 12,950 | |||||||
Numerator for (puttable common) earnings per share: | |||||||||||||
Net income allocated to basic (puttable common) | — | — | 26 | ||||||||||
Effect on income available from reallocation of options | — | — | (12 | ) | |||||||||
Numerator for diluted (puttable common) earnings per share | — | — | 14 | ||||||||||
Denominator for basic (common) earnings per share: | |||||||||||||
Weighted average common shares outstanding | 45,754 | 40,190 | 17,094 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 2,604 | 3,631 | 3,379 | ||||||||||
Denominator for diluted (common) earnings per share | 48,358 | 43,821 | 20,473 | ||||||||||
Denominator for basic and diluted (puttable common) earnings per share: | |||||||||||||
Weighted average puttable common shares outstanding | — | — | 18 | ||||||||||
Earnings per share: | |||||||||||||
Basic (common) | $ | 1.35 | $ | 1.27 | $ | 0.69 | |||||||
Basic (puttable common) | $ | — | $ | — | $ | 1.42 | |||||||
Diluted (common) | $ | 1.28 | $ | 1.17 | $ | 0.63 | |||||||
Diluted (puttable common) | $ | — | $ | — | $ | 0.77 | |||||||
For the years ended December 31, 2013, 2012 and 2011, options to purchase approximately 1,080, 1,534, and 572 shares of common stock, respectively, were not included in the calculation of the diluted earnings per share in corresponding periods because the effect would have been anti-dilutive. |
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
16. COMMITMENTS, CONTINGENCIES AND GUARANTEES | |||||
The Company leases office space under operating leases, which expire at various dates through 2019. Certain leases contain renewal provisions and generally require the Company to pay utilities, insurance, taxes, and other operating expenses. Rent expense under operating lease agreements for the years ended December 31, 2013, 2012 and 2011 was $15,664, $11,594, and $8,522 respectively. Future minimum rental payments under operating leases that have initial or remaining lease terms in excess of one year as of December 31, 2013 were as follows: | |||||
Year Ending December 31, | Operating Leases | ||||
2014 | $ | 13,924 | |||
2015 | 8,218 | ||||
2016 | 4,136 | ||||
2017 | 2,504 | ||||
2018 | 2,017 | ||||
Thereafter | 480 | ||||
Total minimum lease payments | $ | 31,279 | |||
Employee Loan Program — Beginning in third quarter of 2006, the Company started to guarantee bank loans for certain of its key employees. Under the conditions of the guarantees, the Company is required to maintain a security deposit (See Note 6). While the program has been discontinued, total commitment of the Company under these guarantees remains at $233 as of December 31, 2013. The Company estimates a probability of material losses under the program as remote, therefore, no provision for losses was recognized for the years ended December 31, 2013, 2012 and 2011. | |||||
Construction in progress — On December 7, 2011, the Company entered into an agreement with IDEAB Project Eesti AS for the construction of an office building within the High Technologies Park in Minsk, Belarus. The building is expected to be operational in the first half of 2014. As of December 31, 2013, total outstanding commitment of the Company was $1,890. | |||||
Employee Housing Program — In the third quarter of 2012, the Board of Directors of the Company approved the Employee Housing Program (“the Housing Program”), which assists employees in purchasing housing in Belarus (See Note 5). As of December 31, 2013, the Company’s total outstanding commitment under the Housing Program was $35. The Company estimates a probability of material losses under the program as remote, therefore, no provision for losses was recognized for the year ended December 31, 2013. | |||||
Indemnifications — In the normal course of business, the Company is a party to a variety of agreements under which it may be obligated to indemnify the other party for certain matters. These obligations typically arise in contracts where the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations or covenants for certain matters such as title to assets and intellectual property rights associated with the sale of products. The duration of these indemnifications varies, and in certain cases, is indefinite. | |||||
The Company is unable to reasonably estimate the maximum potential amount of future payments under these or similar agreements due to the unique facts and circumstances of each agreement and the fact that certain indemnifications provide for no limitation to the maximum potential future payments under the indemnification. Management is not aware of any such matters that historically had or would have a material effect on the consolidated financial statements of the Company. | |||||
Litigation — From time to time, the Company is involved with litigation, claims or other contingencies. Management is not aware of any such matters that would have a material effect on the consolidated financial statements of the Company. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||
17. FAIR VALUE MEASUREMENTS | |||||||||||||
The Company accounts for certain assets and liabilities at fair value. The authoritative guidance defines fair value as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. | |||||||||||||
The following table represents the Company’s fair value hierarchy for its financial assets and liabilities as of December 31 2013, and 2012. | |||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Cash and cash equivalents | $ | 169,207 | $ | — | $ | — | |||||||
Time deposits and restricted cash | — | 1,711 | — | ||||||||||
Employee loans | — | — | 6,390 | ||||||||||
Total | $ | 169,207 | $ | 1,711 | $ | 6,390 | |||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Cash and cash equivalents | $ | 118,112 | $ | — | $ | — | |||||||
Time deposits and restricted cash | — | 2,133 | — | ||||||||||
Employee loans | — | — | 429 | ||||||||||
Total | $ | 118,112 | $ | 2,133 | $ | 429 | |||||||
During the years ended December 31, 2013 and 2012, the Company issued a total of $8,963 and $566 of loans to its employees, respectively, and received $3,088 and $640 in loan repayments during the same periods, respectively. | |||||||||||||
During the years ended December 31, 2013 and 2012, there were no transfers amongst Level 1, Level 2, or Level 3 financial assets and liabilities. |
OPERATING_SEGMENTS
OPERATING SEGMENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
OPERATING SEGMENTS [Abstract] | ' | ||||||||||||
OPERATING SEGMENTS | ' | ||||||||||||
18. OPERATING SEGMENTS | |||||||||||||
The Company reports segment information based on the managerial responsibility for its client base. Because managerial responsibility for a particular client relationship generally correlates with the client’s geographic location, there is a high degree of similarity between client locations and the geographic boundaries of the Company’s reportable segments. In some specific cases, however, managerial responsibility for a particular client is assigned to a management team in another region, usually based on the strength of the relationship between client executives and particular members of EPAM’s senior management team. In a case like this, the client’s activity would be reported through the management team’s reportable segment. | |||||||||||||
The Company’s reportable segments are North America, Europe, Russia and Other. The Company’s Chief Operating Decision Maker (“CODM”) evaluates its performance and allocates resources based on segment revenues and operating profit. Segment operating profit is defined as income from operations before unallocated costs. Generally, operating expenses for each operating segment have similar characteristics and are subject to similar factors, pressures and challenges. Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as an allocation of certain shared services expenses. Certain expenses are not allocated to specific segments, as management does not believe it is practical to allocate such costs to individual segments because they are not directly attributable to any specific segment. Further, stock-based compensation expense is not allocated to individual segments in internal management reports used by the CODM. Accordingly, these expenses are separately disclosed as “unallocated” and adjusted only against the Company’s total income from operations. | |||||||||||||
Revenues from external clients and segment operating profit, before unallocated expenses, for the North America, Europe, Russia and Other reportable segments were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total segment revenues: | |||||||||||||
North America | $ | 284,636 | $ | 197,271 | $ | 151,707 | |||||||
Europe | 204,150 | 168,913 | 123,510 | ||||||||||
Russia | 55,764 | 50,552 | 46,219 | ||||||||||
Other | 10,493 | 16,986 | 12,851 | ||||||||||
Total segment revenues | $ | 555,043 | $ | 433,722 | $ | 334,287 | |||||||
Segment operating profit: | |||||||||||||
North America | $ | 66,814 | $ | 38,671 | $ | 33,744 | |||||||
Europe | 34,573 | 32,750 | 25,098 | ||||||||||
Russia | 7,077 | 9,049 | 10,445 | ||||||||||
Other | 844 | 6,985 | 2,416 | ||||||||||
Total segment operating profit | $ | 109,308 | $ | 87,455 | $ | 71,703 | |||||||
During the years ended December 31, 2013 and 2012, there were no customers that represented at least 10% of total revenues. During the year ended December 31, 2011, revenues from one customer, Thomson Reuters, accounted for 10.7% of total revenues, or $35,903, and were included within our North America segment. | |||||||||||||
Intersegment transactions were excluded from the above on the basis they are neither included into the measure of a segment’s profit and loss by the chief operating decision maker, nor provided to the chief operating decision maker on a regular basis. | |||||||||||||
Reconciliation of reportable segment revenues and operating profit to the consolidated income before provision for income taxes is presented below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total segment revenues | $ | 555,043 | $ | 433,722 | $ | 334,287 | |||||||
Unallocated revenue | 74 | 77 | 241 | ||||||||||
Revenues | $ | 555,117 | $ | 433,799 | $ | 334,528 | |||||||
Total segment operating profit | $ | 109,308 | $ | 87,455 | $ | 71,703 | |||||||
Unallocated Amounts: | |||||||||||||
Other revenue | 74 | 77 | 241 | ||||||||||
Stock-based compensation expense | (13,150 | ) | (6,826 | ) | (2,866 | ) | |||||||
Non-corporate taxes | (3,201 | ) | (2,346 | ) | (2,722 | ) | |||||||
Professional fees | (3,651 | ) | (2,850 | ) | (2,802 | ) | |||||||
Depreciation and amortization | (2,829 | ) | (1,100 | ) | (810 | ) | |||||||
Bank charges | (1,194 | ) | (1,136 | ) | (793 | ) | |||||||
Goodwill impairment loss (Note 3) | — | — | (1,697 | ) | |||||||||
Stock charge | — | (640 | ) | — | |||||||||
Provision for bad debts | (36 | ) | — | — | |||||||||
Other corporate expenses | (8,828 | ) | (6,628 | ) | (5,246 | ) | |||||||
Income from operations | 76,493 | 66,006 | 55,008 | ||||||||||
Interest and other income, net | 3,077 | 1,941 | 1,422 | ||||||||||
Foreign exchange loss | (2,800 | ) | (2,084 | ) | (3,638 | ) | |||||||
Income before provision for income taxes | $ | 76,770 | $ | 65,863 | $ | 52,792 | |||||||
Geographic Area Information | |||||||||||||
Management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably amongst the segments. Geographical information about the Company’s long-lived assets based on physical location of the assets follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Belarus | $ | 38,697 | $ | 40,095 | |||||||||
Ukraine | 5,525 | 5,357 | |||||||||||
Russia | 3,414 | 3,234 | |||||||||||
United States | 2,217 | 2,048 | |||||||||||
Hungary | 2,644 | 1,744 | |||||||||||
Other | 818 | 657 | |||||||||||
Total | $ | 53,315 | $ | 53,135 | |||||||||
Long-lived assets included property and equipment, net of accumulated depreciation and amortization. | |||||||||||||
Information about the Company’s revenues by client location is presented below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 247,979 | $ | 197,593 | $ | 163,068 | |||||||
United Kingdom | 108,892 | 98,346 | 70,989 | ||||||||||
Russia | 53,328 | 47,507 | 43,799 | ||||||||||
Switzerland | 51,941 | 30,120 | 15,870 | ||||||||||
Canada | 33,759 | 9,256 | 2,058 | ||||||||||
Germany | 20,261 | 16,391 | 7,909 | ||||||||||
Kazakhstan | 9,886 | 11,352 | 8,845 | ||||||||||
Netherlands | 7,719 | 3,127 | 4,031 | ||||||||||
Sweden | 5,742 | 4,913 | 5,292 | ||||||||||
Spain | 1,957 | 1,710 | 1,893 | ||||||||||
Ukraine | 681 | 4,733 | 891 | ||||||||||
Other locations | 5,346 | 2,334 | 3,707 | ||||||||||
Reimbursable expenses and other revenues | 7,626 | 6,417 | 6,176 | ||||||||||
Revenues | $ | 555,117 | $ | 433,799 | $ | 334,528 | |||||||
Service Offering Information | |||||||||||||
Information about the Company’s revenues by service offering is presented below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Software development | $ | 374,426 | $ | 290,139 | $ | 219,211 | |||||||
Application testing services | 109,222 | 85,849 | 67,840 | ||||||||||
Application maintenance and support | 45,971 | 36,056 | 29,287 | ||||||||||
Infrastructure services | 14,433 | 12,424 | 8,488 | ||||||||||
Licensing | 3,439 | 2,914 | 3,526 | ||||||||||
Reimbursable expenses and other revenues | 7,626 | 6,417 | 6,176 | ||||||||||
Revenues | $ | 555,117 | $ | 433,799 | $ | 334,528 | |||||||
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | ' | ||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||||||
19. QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||
Summarized quarterly results for the two years ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
2013 | March 31 | June 30 | September 30 | December 31 | Full Year | ||||||||||||||||
Revenues | $ | 124,198 | $ | 133,184 | $ | 140,150 | $ | 157,585 | $ | 555,117 | |||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 77,937 | 83,547 | 88,539 | 97,627 | 347,650 | ||||||||||||||||
Selling, general and administrative expenses | 27,083 | 28,541 | 27,893 | 32,980 | 116,497 | ||||||||||||||||
Depreciation and amortization expense | 3,617 | 3,854 | 3,906 | 3,743 | 15,120 | ||||||||||||||||
Other operating (income)/ expenses, net | 25 | (293 | ) | (418 | ) | 43 | (643 | ) | |||||||||||||
Income from operations | 15,536 | 17,535 | 20,230 | 23,192 | 76,493 | ||||||||||||||||
Interest and other income, net | 630 | 769 | 846 | 832 | 3,077 | ||||||||||||||||
Foreign exchange loss | (499 | ) | (869 | ) | (720 | ) | (712 | ) | (2,800 | ) | |||||||||||
Income before provision for income taxes | 15,667 | 17,435 | 20,356 | 23,312 | 76,770 | ||||||||||||||||
Provision for income taxes | 2,987 | 3,317 | 3,919 | 4,553 | 14,776 | ||||||||||||||||
Net income | $ | 12,680 | $ | 14,118 | $ | 16,437 | $ | 18,759 | $ | 61,994 | |||||||||||
Comprehensive income | $ | 10,337 | $ | 13,073 | $ | 19,412 | $ | 18,361 | $ | 61,183 | |||||||||||
Basic net income per share(1) | $ | 0.28 | $ | 0.31 | $ | 0.36 | $ | 0.4 | $ | 1.35 | |||||||||||
Diluted net income per share(1) | $ | 0.27 | $ | 0.29 | $ | 0.34 | $ | 0.38 | $ | 1.28 | |||||||||||
-1 | Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
2012 | March 31 | June 30 | September 30 | December 31 | Full Year | ||||||||||||||||
Revenues | $ | 94,383 | $ | 103,800 | $ | 110,078 | $ | 125,538 | $ | 433,799 | |||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 60,175 | 63,803 | 69,099 | 77,284 | 270,361 | ||||||||||||||||
Selling, general and administrative expenses | 17,627 | 20,711 | 21,153 | 26,377 | 85,868 | ||||||||||||||||
Depreciation and amortization expense | 2,211 | 2,423 | 3,040 | 3,208 | 10,882 | ||||||||||||||||
Other operating expenses, net | 586 | 33 | 50 | 13 | 682 | ||||||||||||||||
Income from operations | 13,784 | 16,830 | 16,736 | 18,656 | 66,006 | ||||||||||||||||
Interest and other income, net | 476 | 460 | 486 | 519 | 1,941 | ||||||||||||||||
Foreign exchange gain/ (loss) | 80 | (1,394 | ) | (635 | ) | (135 | ) | (2,084 | ) | ||||||||||||
Income before provision for income taxes | 14,340 | 15,896 | 16,587 | 19,040 | 65,863 | ||||||||||||||||
Provision for income taxes | 2,241 | 2,575 | 2,522 | 4,041 | 11,379 | ||||||||||||||||
Net income | $ | 12,099 | $ | 13,321 | $ | 14,065 | $ | 14,999 | $ | 54,484 | |||||||||||
Comprehensive income | $ | 13,711 | $ | 10,857 | $ | 16,769 | $ | 15,640 | $ | 56,977 | |||||||||||
Basic net income per share(1) | $ | 0.3 | $ | 0.31 | $ | 0.33 | $ | 0.35 | $ | 1.27 | |||||||||||
Diluted net income per share(1) | $ | 0.27 | $ | 0.29 | $ | 0.3 | $ | 0.32 | $ | 1.17 | |||||||||||
-1 | Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. | ||||||||||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |
Dec. 31, 2013 | ||
SUBSEQUENT EVENTS [Abstract] | ' | |
SUBSEQUENT EVENTS | ' | |
20 | SUBSEQUENT EVENTS | |
On March 5, 2014, the Company entered into an agreement to acquire substantially all assets and certain specified liabilities of Netsoft Holdings LLC, a U.S.-based information technology services company with a focus on healthcare industry. In connection with this transaction, the Company also acquired substantially all assets of an Armenian-based company Ozsoft LLC. According to the purchase agreement, the aggregate purchase price, including any additional earn-out payments, will not exceed $6,000. |
NATURE_OF_BUSINESS_AND_SIGNIFI1
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||||||
Emerging Growth Company Status | ' | ||||||||||||||||
Emerging growth company status — In April 2012, several weeks after EPAM’s initial public offering in February 2012, President Obama signed into law the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). The JOBS Act contains provisions that relax certain requirements for “emerging growth companies” that otherwise apply to larger public companies. For as long as a company retains emerging growth company status, which may be until the fiscal year-end after the fifth anniversary of its initial public offering, it will not be required to (1) provide an auditor’s attestation report on its management’s assessment of the effectiveness of its internal control over financial reporting, otherwise required by Section 404(b) of the Sarbanes-Oxley Act of 2002, (2) comply with any new or revised financial accounting standard applicable to public companies until such standard is also applicable to private companies, (3) comply with certain new requirements adopted by the Public Company Accounting Oversight Board, (4) provide certain disclosure regarding executive compensation required of larger public companies or (5) hold shareholder advisory votes on matters relating to executive compensation. | |||||||||||||||||
EPAM is classified as an emerging growth company under the JOBS Act and is eligible to take advantage of the accommodations described above for as long as it retains this status. However, EPAM has elected not to take advantage of the transition period described in (2) above, which is the exemption provided in Section 7(a)(2)(B) of the Securities Act of 1933 and Section 13(a) of the Securities Exchange Act of 1934 (in each case as amended by the JOBS Act) for complying with new or revised financial accounting standards. EPAM will therefore comply with new or revised financial accounting standards to the same extent that a non-emerging growth company is required to comply with such standards. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM Systems, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the financial statements. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition — The Company recognizes revenue when realized or realizable and earned, which is when the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue the Company reports. If there is an uncertainty about the project completion or receipt of payment for the consulting services, revenues are deferred until the uncertainty is sufficiently resolved. At the time revenues are recognized, the Company provides for any contractual deductions and reduces revenues accordingly. The Company defers amounts billed to its clients for revenues not yet earned. Such amounts are anticipated to be recorded as revenues as services are performed in subsequent periods. Unbilled revenues represent services provided which are billed subsequent to the period end in accordance with the contract terms. | |||||||||||||||||
The Company derives its revenues from a variety of service offerings which represent specific competencies of its IT professionals. Contracts for these services have different terms and conditions based on the scope, deliverables, and complexity of the engagement which require management to make judgments and estimates in determining appropriate revenue recognition pattern. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. | |||||||||||||||||
The majority of the Company’s revenues (82.3% of revenues in 2013, 84.1% in 2012 and 86.1% in 2011) is generated under time-and-material contracts whereby revenues are recognized as services are performed with the corresponding cost of providing those services reflected as cost of revenues when incurred. The majority of such revenues are billed on an hourly, daily or monthly basis whereby actual time is charged directly to the client. | |||||||||||||||||
Revenues from fixed-price contracts (15.7% of revenues in 2013, 13.7% in 2012 and 11.0% in 2011) are determined using the proportional performance method. In instances where final acceptance of the product, system, or solution is specified by the client, revenues are deferred until all acceptance criteria have been met. In absence of a sufficient basis to measure progress towards completion, revenue is recognized upon receipt of final acceptance from the client. In order to estimate the amount of revenue for the period under the proportional performance method, the Company determines the percentage of actual labor hours incurred as compared to estimated total labor hours and applies that percentage to the consideration allocated to the deliverable. The complexity of the estimation process and factors relating to the assumptions, risks and uncertainties inherent with the application of the proportional performance method of accounting affects the amounts of revenues and related expenses reported in the Company’s consolidated financial statements. A number of internal and external factors can affect such estimates, including labor hours and specification and testing requirement changes. The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known. No significant revisions occurred in each of the three years ended December 31, 2013, 2012 and 2011. The Company’s fixed price contracts are generally recognized over a period of 12 months or less. | |||||||||||||||||
From time to time, the Company enters into multiple element arrangements with its customers. In vast majority of cases such multiple-element arrangements represent fixed-priced arrangements to develop a customized IT solution to meet the customer’s needs combined with warranty support over a specified period of time in the future, to which the Company refers to as the “warranty period.” The Company’s customers retain full intellectual property (IP) rights to the results of the Company’s services, and the software element created in lieu of such services is no more than incidental to any of the service deliverables, as defined in accordance with ASC 985-605-15-13. For such arrangements, the Company follows the guidance set forth in ASC 605-25, Revenue Recognition – Multiple Element Arrangements, as to whether multiple deliverables exist, how the arrangement should be separated, and how the consideration should be allocated. The Company recognizes revenue related to the delivered products only if all revenue recognition criteria are met and the delivered element has a standalone value to the customer and allocates total consideration among the deliverables based on their relative selling prices. Revenue related to the software development services is recognized under the proportional performance method, as described above, while warranty support services are recognized on a straight-line basis over the warranty period. The warranty period is generally three months to two years. | |||||||||||||||||
The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income. | |||||||||||||||||
Cost of Revenues (exclusive of depreciation and amortization) | ' | ||||||||||||||||
Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries, employee benefits and stock compensation expense, reimbursable and non-reimbursable travel costs and subcontractor fees. | |||||||||||||||||
Selling, General and Administrative Expenses | ' | ||||||||||||||||
Selling, General and Administrative Expenses — Consist of expenses associated with promoting and selling the Company’s services and include such items as sales and marketing personnel salaries, stock compensation expense and related fringe benefits, commissions, travel, and the cost of advertising and other promotional activities. General and administrative expenses include other operating items such as officers’ and administrative personnel salaries, marketing personnel salaries, stock compensation expense and related fringe benefits, legal and audit expenses, insurance, provision for doubtful accounts, and operating lease expenses. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents — Cash equivalents are short-term, highly liquid investments that are readily convertible into cash, with maturities of three months or less at the date acquired. As of December 31, 2013 and 2012 all amounts were in cash. | |||||||||||||||||
Restricted Cash | ' | ||||||||||||||||
Restricted Cash — Restricted cash represents cash that is restricted by agreements with third parties for special purposes (see Note 6). | |||||||||||||||||
Accounts Receivable | ' | ||||||||||||||||
Accounts Receivable — Accounts receivable are recorded at net realizable value. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its clients to make required payments. The allowance for doubtful accounts is determined by evaluating the relative creditworthiness of each client, historical collections experience and other information, including the aging of the receivables. | |||||||||||||||||
Recoveries of losses from accounts receivable written off in prior years are presented within income from operations on the Company’s consolidated statements of income. There were no collections in respect of prior year write-offs during the years ended December 31, 2013, 2012 or 2011. | |||||||||||||||||
The table below summarizes movements in qualifying accounts for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Balance at | Charged to Costs | Deductions/ | Balance at End | ||||||||||||||
Beginning of | and Expenses | Other | of Year | ||||||||||||||
Period | |||||||||||||||||
Allowance for Doubtful Accounts (Billed and Unbilled): | |||||||||||||||||
Fiscal Year 2011 | $ | 1,671 | $ | 1,234 | $ | (655 | ) | $ | 2,250 | ||||||||
Fiscal Year 2012 | 2,250 | 1,244 | (1,291 | ) | 2,203 | ||||||||||||
Fiscal Year 2013 | 2,203 | 619 | (1,022 | ) | 1,800 | ||||||||||||
Property and Equipment | ' | ||||||||||||||||
Property and Equipment — Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful lives of the assets generally ranging from 3 to 50 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. Maintenance and repairs are expensed as incurred, while renewals and betterments are capitalized. | |||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
Goodwill and Other Intangible Assets — The Company accounts for its business combinations using the acquisition accounting method, which requires it to determine the fair value of net assets acquired and the related goodwill and other intangible assets. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and involves the use of significant estimates, including projections of future cash inflows and outflows, discount rates, asset lives and market multiples. The Company’s acquisitions usually do not have significant amounts of tangible assets, as the principal assets it typically acquires are customer relationships, trade names, non-competition agreements, and workforce. As a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. | |||||||||||||||||
Goodwill and intangible assets that have indefinite useful lives are not amortized but are tested annually for impairment. Events or circumstances that might require impairment testing of goodwill and other intangible assets include the loss of a significant client, the identification of other impaired assets within a reporting unit, loss of key personnel, the disposition of a significant portion of a reporting unit, significant decline in stock price or a significant adverse change in business climate or regulations. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. | |||||||||||||||||
As of December 31, 2013 and 2012, all of the Company’s intangible assets had finite lives and the Company did not incur any impairment losses in respect of its intangible assets during the years ended December 31, 2013, 2012 or 2011. | |||||||||||||||||
Effective in the fourth quarter of 2013, the Company changed the annual goodwill impairment assessment date for all of its reporting units from December 31st to October 31st, which represented a voluntary change in the annual goodwill impairment testing date. The Company is also required to assess the goodwill of its reporting units for impairment between annual assessment dates when events or circumstances dictate. This change does not delay, accelerate or avoid an impairment charge and is preferable as additional resources for the preparation, review, and conclusion of the annual goodwill impairment test are available at this time. Further, this timing more closely aligns with the Company’s annual budgeting and planning process. Information prepared during the annual budgeting and planning process is used extensively in the Company’s impairment assessment. The Company evaluates the recoverability of goodwill at a reporting unit level and it had three reporting units that were subject to the annual impairment testing in 2013. The Company’s annual impairment review as of October 31, 2013 and December 31, 2012 did not result in an impairment charge for any of these reporting units. It was impracticable to apply this change retrospectively, as the Company is unable to objectively determine significant estimates and assumptions that would have been used in those earlier periods without the use of hindsight. | |||||||||||||||||
For the Company’s annual impairment test, it compares the respective fair value of its reporting units to their respective carrying values in order to determine if impairment is indicated. If so, the implied fair value of the reporting unit’s goodwill is compared to its carrying amount, and the impairment loss is measured by the excess of the carrying value over fair value. The fair values are estimated using a combination of the income approach, which incorporates the use of the discounted cash flow method, and the market approach, which incorporates the use of earnings multiples based on market data. These valuations are considered Level 3 measurements under FASB ASC Topic 820. The Company utilizes estimates to determine the fair value of the reporting units such as future cash flows, growth rates, capital requirements, effective tax rates and projected margins, among other factors. Estimates utilized in the future evaluations of goodwill for impairment could differ from estimates used in the current period calculations. | |||||||||||||||||
When facts and circumstances indicate potential impairment of amortizable intangible assets, the Company evaluates the recoverability of the asset’s carrying value, using estimates of undiscounted future cash flows that utilize a discount rate determined by its management to be commensurate with the risk inherent in the Company’s business model over the remaining asset life. The estimates of future cash flows attributable to intangible assets require significant judgment based on the Company’s historical and anticipated results. Any impairment loss is measured by the excess of carrying value over fair value. | |||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||
Impairment of Long-Lived Assets — Long-lived assets, such as property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The assessment for potential impairment is based primarily on the Company’s ability to recover the carrying value of its long-lived assets from expected future cash flows from its operations on an undiscounted basis at each reporting date. If such assets are determined to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets. Property and equipment to be disposed of by sale is carried at the lower of the then current carrying value or fair value less estimated costs to sell. The Company did not incur any impairment of long-lived assets for 2013, 2012, or 2011. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes — The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. | |||||||||||||||||
The realization of deferred tax assets is primarily dependent on future earnings. Any reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings. See Note 10 to the consolidated financial statements for further information. | |||||||||||||||||
Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and our effective tax rate in the future. The American Taxpayer Relief Act of 2012 (the “Act”) was signed into law on January 2, 2013. Because a change in tax law is accounted for in the period of enactment, certain provisions of the Act benefiting the Company’s 2012 U.S. federal taxes, including the Subpart F controlled foreign corporation look-through exception were not recognized in the Company’s 2012 financial results and instead were reflected in the Company’s 2013 financial results. | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings per Share (“EPS”) — Basic EPS is computed by dividing the net income applicable to common stockholders for the period by the weighted average number of shares of common stock outstanding during the same period. The Company’s Series A-1 Preferred, Series A-2 Preferred, and Series A-3 Preferred Stock, that had been outstanding and convertible into common stock until February 13, 2012 (the date of the Company’s initial public offering), and our puttable common stock were considered participating securities since these securities had non-forfeitable rights to dividends or dividend equivalents during the contractual period and thus required the two-class method of computing EPS. When calculating diluted EPS, the numerator is computed by adding back the undistributed earnings allocated to the participating securities in arriving at the basic EPS and then reallocating such undistributed earnings among our common stock, participating securities and the potential common shares that result from the assumed exercise of all dilutive options. The denominator is increased to include the number of additional common shares that would have been outstanding had the options been issued. | |||||||||||||||||
Foreign Currency Translation | ' | ||||||||||||||||
Foreign Currency Translation — Assets and liabilities of consolidated foreign subsidiaries, whose functional currency is the local currency, are translated to U.S. dollars at period end exchange rates. Revenues and expenses are translated to U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries to U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income. | |||||||||||||||||
The Company reports the effect of exchange rate changes on cash balances held in foreign currencies as a separate item in the reconciliation of the changes in cash and cash equivalents during the period. Transaction gains and losses are included in the period in which they occur. | |||||||||||||||||
Risks and Uncertainties | ' | ||||||||||||||||
Risks and Uncertainties — Principally all of the Company’s IT delivery centers and a majority of its employees is located in Central and Eastern Europe. As a result, the Company may be subject to certain risks associated with international operations, risks associated with the application and imposition of protective legislation and regulations relating to import and export, or otherwise resulting from foreign policy or the variability of foreign economic or political conditions. Additional risks associated with international operations include difficulties in enforcing intellectual property rights, the burdens of complying with a wide variety of foreign laws, potential geopolitical and other risks associated with potentially adverse tax consequences, tariffs, quotas and other barriers. | |||||||||||||||||
Concentration of Credit — Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of employee loans, cash and cash equivalents, trade accounts receivable and unbilled revenues. | |||||||||||||||||
At December 31, 2013, loans issued to employees were $6,390, or 1.5%, of our total assets. These loans expose the Company to a risk of non-payment and loss. Repayment of these loans is primarily dependent on personal income of borrowers obtained through their employment with EPAM and may be adversely affected by changes in macroeconomic situations, such as higher unemployment levels, currency devaluation and inflation. Additionally, continuing financial stability of a borrower may be adversely affected by job loss, divorce, illness or personal bankruptcy. The Company also faces the risk that the collateral will be insufficient to compensate it for loan losses, if any, and costs of foreclosure. Decreases in real estate values could adversely affect the value of property used as collateral, and the Company may be unsuccessful in recovering the remaining balance from either the borrower and/or guarantors. | |||||||||||||||||
The Company maintains its cash with financial institutions. As of December 31, 2013, $103.1 million of total cash was held in CIS countries, with $73.9 million of that in Belarus. Banking and other financial systems in the CIS are less developed and regulated than in some more developed markets, and legislation relating to banks and bank accounts is subject to varying interpretations and inconsistent application. Banks in the CIS generally do not meet the banking standards of more developed markets, and the transparency of the banking sector lags behind international standards. Furthermore, bank deposits made by corporate entities in CIS are not insured. As a result, the banking sector remains subject to periodic instability. Another banking crisis, or the bankruptcy or insolvency of banks through which the Company receives or with which it holds funds, particularly in Belarus, may result in the loss of its deposits or adversely affect its ability to complete banking transactions in the CIS, which could materially adversely affect the Company’s business and financial condition. | |||||||||||||||||
Trade accounts receivable and unbilled revenues are generally dispersed across EPAM’s customers in proportion to their revenues. During the years ended December 31, 2013, 2012 and 2011, revenues from top five customers were $169,987, $ 134,484, and $107,171, respectively, representing 30.6%, 31.0% and 32.0%, respectively, of total revenues in the corresponding periods. Revenues from the Company’s top ten customers were $234,955, $192,426 and $149,094 in 2013, 2012 and 2011, respectively, representing 42.3%, 44.4%, and 44.6%, respectively, of total revenues in corresponding periods. No customer accounted for over 10% of total revenues in 2013 or 2012. As of December 31, 2013, unbilled revenues from two customers individually exceeded 10% of total unbilled revenues and jointly accounted for 33.3% of total unbilled revenues as of that date; and one customer accounted for over 10% of total accounts receivable as of that date. | |||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011 the Company incurred subcontractor costs of $2,078, $3,535 and $4,545, respectively, to a vendor for staffing, consulting, training, recruiting and other logistical / support services provided for the Company’s delivery and development operations in Eastern Europe. Such costs are included in cost of revenues and sales, general and administrative expenses, as appropriate, in the accompanying consolidated statements of income and comprehensive income. | |||||||||||||||||
Foreign currency risk — The Company generates revenues in various global markets based on client contracts obtained in non-U.S. dollar currencies, principally, Euros, British pounds and Russian Rubles. The Company incurs expenditures in non-U.S. dollar currencies, principally in Hungarian Forints, Euros, and Russian Rubles associated with the IT delivery centers located in CEE. The Company is exposed to fluctuations in foreign currency exchange rates primarily on accounts receivable and unbilled revenues from sales in these foreign currencies, and cash flows for expenditures in foreign currencies. The Company does not use derivative financial instruments to hedge the risk of foreign exchange volatility. | |||||||||||||||||
Interest rate risk — The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s cash and cash equivalents and the LIBOR plus 1.25% rate long-term credit facility (see Note 12). The Company does not use derivative financial instruments to hedge the risk of interest rate volatility. | |||||||||||||||||
Fair value of financial instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments — The Company makes significant assumptions about fair values of its financial instruments. Fair value is determined based on the assumptions that market participants would use in pricing the asset or liability. The Company utilizes the following fair value hierarchy in determining fair values: | |||||||||||||||||
Level 1 — Quoted prices for identical assets or liabilities in active markets. | |||||||||||||||||
Level 2 — Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. | |||||||||||||||||
Level 3 — Unobservable inputs reflecting our view about the assumptions that market participants would use in pricing the asset or liability. | |||||||||||||||||
Where the fair values of financial assets and liabilities recorded in the consolidated balance sheet cannot be derived from an active market, they are determined using a variety of valuation techniques. These valuation techniques include a net present value technique, comparison to similar instruments with market observable inputs, options pricing models and other relevant valuation models. Inputs into these models are taken from observable market data whenever possible, but in instances where it is not feasible, a degree of judgment is required to establish fair values. The Company had no assets or liabilities measured at fair value on a recurring basis as of December 31, 2013 or 2012. | |||||||||||||||||
The Company's financial assets and liabilities, with the exceptions of employee loans described further herein, are all short term in nature; therefore, the carrying value of these items approximates their fair value. | |||||||||||||||||
Employee Housing Loans — The Company issues loans to its employees under the Employee Housing Program (“housing loans”). Housing loans are issued in U.S. Dollars with a 5-year term and carry an interest rate of 7.5%. The program was designed to be a retention mechanism for the Company’s employees in Belarus. | |||||||||||||||||
Although permitted by authoritative guidance, the Company did not elect a fair value option for these financial instruments. These housing loans are measured at fair value upon initial recognition and subsequently carried at amortized cost less allowance for loan losses. Any difference between the carrying value and the fair value of a loan upon initial recognition (“day-one” recognition) is charged to expense. | |||||||||||||||||
The housing loans were classified as Level 3 measurements within the fair value hierarchy because they were valued using significant unobservable inputs. The estimated fair value of these housing loans upon initial recognition was computed by projecting the future contractual cash flows to be received from the loans and discounting those projected net cash flows to a present value, which is the estimated fair value (the “Income Approach”). In applying the Income Approach, the Company analyzed similar loans offered by third-party financial institutions in Belarusian Rubles (“BYR”) and adjusted the interest rates charged on such loans to exclude the effects of underlying economic factors, such as inflation and currency devaluation. The Company also assessed the probability of future defaults and associated cash flows impact. In addition, the Company separately analyzed the rate of return that market participants in Belarus would require when investing in unsecured USD-denominated government bonds with similar maturities (a “risk-free rate”) and evaluated a risk premium component to compensate the market participants for the credit and liquidity risks inherent in the loans’ cash flows, as described in the following paragraph. As a result of the analysis performed, the Company determined the carrying values of the housing loans issued during the year ended December 31, 2013 approximated their fair values upon initial recognition. The Company also estimated the fair values of the housing loans that were outstanding as of December 31, 2013 using the inputs noted above and determined their fair values approximated the carrying values as of that date. | |||||||||||||||||
Repayment of housing loans is primarily dependent on personal income of borrowers obtained through employment with the Company, which income is set in U.S. dollars and is not closely correlated with common macroeconomic risks existing in Belarus, such as inflation, local currency devaluation and decrease in the purchasing power of the borrowers’ income. Given a large demand for the program among the Company’s employees and its advantages as compared to alternative methods of financing available on the market, the Company expects the borrowers to fulfill their obligations, and the Company estimates the probability of voluntary termination of employment among the borrowers as de minimis. Additionally, housing loans are capped at $50 per loan and secured by real estate financed through the program. The Company establishes a maximum loan-to-value ratio of 70% and expects a decrease in the ratio over the life of a housing loan due to on-going payments by employees. | |||||||||||||||||
Employee loans, other — The Company also issues short-term non-interest bearing relocation loans and other employee loans. These loans are considered Level 3 measurements. The Company’s Level 3, unobservable inputs reflect its assumptions about the factors that market participants use in pricing similar receivables, and are based on the best information available in the circumstances. Due to the short-term nature of employee loans (i.e., the relatively short time between the origination of the instrument and its expected realization), the carrying amount is a reasonable estimate of fair value. As of December 31, 2013, the carrying values of these employee loans approximated their fair values. | |||||||||||||||||
Accounting for Stock-Based Employee Compensation Plans | ' | ||||||||||||||||
Accounting for Stock-Based Employee Compensation Plans — Stock-based compensation expense for awards of equity instruments to employees and non-employee directors is determined based on the grant-date fair value of the awards ultimately expected to vest. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of four years (See Note14.) | |||||||||||||||||
The Company estimates forfeitures at the time of grant and revises its estimates, if necessary, in subsequent periods if actual forfeitures or vesting differ from those estimates. Such revisions could have a material effect on the Company’s operating results. The assumptions used in the valuation model are based on subjective future expectations combined with management judgment. If any of the assumptions used in the valuation model changes significantly, stock-based compensation for future awards may differ materially compared to the awards previously granted. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements — In January 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The ASU clarifies that ordinary trade receivables and receivables are not in the scope of ASU 2012-11, “Disclosures about Offsetting Assets and Liabilities.” ASU 2012-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the Codification or subject to a master netting arrangement or similar agreement. The ASU is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods and requires retrospective application for all comparative periods presented. The Company adopted the ASU effective January 1, 2013. The adoption of this standard did not have any effect on the Company’s financial condition, results of operations and cash flows. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which adds new disclosure requirements for items reclassified out of accumulated other comprehensive income (“AOCI”.) The ASU is intended to help entities improve the transparency of changes in other comprehensive income (OCI) and items reclassified out of AOCI in their financial statements. It does not amend any existing requirements for reporting net income or OCI in the financial statements. New disclosure requirements are effective for fiscal periods beginning after December 15, 2012 and are applied prospectively. The Company adopted the ASU effective January 1, 2013. The adoption of this standard did not have any effect on the Company’s financial reporting because the only item that had historically affected AOCI and therefore included in cumulative AOCI was currency translation adjustments. | |||||||||||||||||
In March 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 updates accounting guidance related to the application of consolidation guidance and foreign currency matters. This guidance resolves the diversity in practice about what guidance applies to the release of the cumulative translation adjustment into net income. This guidance is effective for interim and annual periods beginning after December 15, 2013. The Company does not expect the adoption of this pronouncement to have a material effect on its financial condition, results of operations and cash flows. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 is a new accounting standard on the financial statement presentation of unrecognized tax benefits. The new standard provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The new standard becomes effective for the periods commencing January 1, 2014, and it should be applied prospectively to unrecognized tax benefits that exist at the effective date with retrospective application permitted. The Company is currently assessing the impacts of this new standard on its financial conditions, results of operating and cash flows. |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS - NET (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS - NET [Abstract] | ' | ||||||||||||||||||||
Goodwill by Reportable Segment | ' | ||||||||||||||||||||
Goodwill by reportable segment was as follows: | |||||||||||||||||||||
North America | EU | Russia | Other | Total | |||||||||||||||||
Balance as of January 1, 2012 | $ | 2,286 | $ | 2,864 | $ | 3,019 | $ | — | $ | 8,169 | |||||||||||
Acquisition of Thoughtcorp (Note 2) | 2,935 | — | — | — | 2,935 | ||||||||||||||||
Acquisition of Empathy Lab (Note 2) | 11,359 | — | — | — | 11,359 | ||||||||||||||||
Effect of net foreign currency exchange rate changes | 63 | — | 172 | — | 235 | ||||||||||||||||
Balance as of December 31, 2012 | 16,643 | 2,864 | 3,191 | — | 22,698 | ||||||||||||||||
Effect of net foreign currency exchange rate changes | (205 | ) | — | (225 | ) | — | (430 | ) | |||||||||||||
Balance as of December 31, 2013 | $ | 16,438 | $ | 2,864 | $ | 2,966 | $ | — | $ | 22,268 | |||||||||||
Components of Intangible Assets | ' | ||||||||||||||||||||
Components of intangible assets were as follows: | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Weighted average | Gross | Accumulated | Net carrying | ||||||||||||||||||
life at acquisition | carrying | amortization | amount | ||||||||||||||||||
(in years) | amount | ||||||||||||||||||||
Client relationships | 9 | $ | 13,432 | $ | (4,885 | ) | $ | 8,547 | |||||||||||||
Trade name | 5 | 6,232 | (1,643 | ) | 4,589 | ||||||||||||||||
Non-competition agreements | 5 | 848 | (250 | ) | 598 | ||||||||||||||||
Total | $ | 20,512 | $ | (6,778 | ) | $ | 13,734 | ||||||||||||||
2012 | |||||||||||||||||||||
Weighted average | Gross | Accumulated | Net carrying | ||||||||||||||||||
life at acquisition | carrying | amortization | amount | ||||||||||||||||||
(in years) | amount | ||||||||||||||||||||
Client relationships | 9 | $ | 13,724 | $ | (3,640 | ) | $ | 10,084 | |||||||||||||
Trade name | 5 | 6,372 | (439 | ) | 5,933 | ||||||||||||||||
Non-competition agreements | 5 | 881 | (64 | ) | 817 | ||||||||||||||||
Total | $ | 20,977 | $ | (4,143 | ) | $ | 16,834 | ||||||||||||||
Amortization of Intangible Assets | ' | ||||||||||||||||||||
All of the intangible assets have finite lives and as such are subject to amortization. Amortization of intangibles for the years ended December 31 is presented in the table below: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Client relationships | $ | 1,373 | $ | 627 | $ | 720 | |||||||||||||||
Trade name | 1,222 | 333 | 59 | ||||||||||||||||||
Non-competition agreements | 190 | 64 | — | ||||||||||||||||||
Total | $ | 2,785 | $ | 1,024 | $ | 779 | |||||||||||||||
Estimated Amortization Expenses | ' | ||||||||||||||||||||
Estimated amortization expenses of the Company’s existing intangible assets for the next five years ending December 31, were as follows: | |||||||||||||||||||||
Amount | |||||||||||||||||||||
2014 | $ | 2,503 | |||||||||||||||||||
2015 | 2,376 | ||||||||||||||||||||
2016 | 2,341 | ||||||||||||||||||||
2017 | 1,865 | ||||||||||||||||||||
2018 | 977 | ||||||||||||||||||||
Thereafter | 3,672 | ||||||||||||||||||||
Total | $ | 13,734 |
PREPAID_AND_OTHER_CURRENT_ASSE1
PREPAID AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
PREPAID AND OTHER CURRENT ASSETS [Abstract] | ' | ||||||||
Prepaid and Other Current Assets | ' | ||||||||
Prepaid and other current assets consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Taxes receivable | $ | 7,295 | $ | 4,522 | |||||
Prepaid expenses | 3,399 | 3,825 | |||||||
Security deposits under operating leases | 1,005 | 837 | |||||||
Prepaid equipment | 986 | 1,695 | |||||||
Unamortized software licenses and subscriptions | 981 | 616 | |||||||
Due from employees | 218 | 104 | |||||||
Other | 471 | 236 | |||||||
Total | $ | 14,355 | $ | 11,835 | |||||
RESTRICTED_CASH_AND_TIME_DEPOS1
RESTRICTED CASH AND TIME DEPOSITS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
RESTRICTED CASH AND TIME DEPOSITS [Abstract] | ' | ||||||||
Components of Restricted Cash and Time Deposits | ' | ||||||||
Restricted cash and time deposits consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Time deposits | $ | 1,188 | $ | 1,006 | |||||
Short-term security deposits under customer contracts | 298 | 660 | |||||||
Long-term deposits under employee loan programs | 225 | 360 | |||||||
Long-term deposits under operating leases | — | 107 | |||||||
Total | $ | 1,711 | $ | 2,133 |
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT - NET (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
PROPERTY AND EQUIPMENT - NET [Abstract] | ' | ||||||||||||
Property and Equipment | ' | ||||||||||||
Property and equipment consisted of the following: | |||||||||||||
Useful Life | December 31, | December 31, | |||||||||||
(in years) | 2013 | 2012 | |||||||||||
Computer hardware | 3 | $ | 29,884 | $ | 24,239 | ||||||||
Leasehold improvements | lease term | 5,903 | 5,527 | ||||||||||
Furniture and fixtures | 7 | 5,688 | 4,351 | ||||||||||
Purchased computer software | 3 | 5,042 | 4,452 | ||||||||||
Office equipment | 7 | 4,679 | 4,325 | ||||||||||
Building | 50 | 16,534 | 16,534 | ||||||||||
Construction in progress (Note 16) | n/a | 15,749 | 15,561 | ||||||||||
83,479 | 74,989 | ||||||||||||
Less accumulated depreciation and amortization | (30,164 | ) | (21,854 | ) | |||||||||
Total | $ | 53,315 | $ | 53,135 |
ACCRUED_EXPENSES_AND_OTHER_LIA1
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
Accrued expenses consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Compensation | $ | 13,674 | $ | 15,450 | |||||
Subcontractor costs | 2,933 | 1,915 | |||||||
Professional fees | 947 | 544 | |||||||
Facilities costs | 334 | 297 | |||||||
Other | 2,287 | 1,608 | |||||||
Total | $ | 20,175 | $ | 19,814 |
TAXES_PAYABLE_Tables
TAXES PAYABLE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
TAXES PAYABLE [Abstract] | ' | ||||||||
Taxes Payable | ' | ||||||||
Current taxes payable consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Corporate profit tax | $ | 3,717 | $ | 3,315 | |||||
Value added taxes | 5,975 | 6,274 | |||||||
Payroll, social security, and other taxes | 4,479 | 4,968 | |||||||
Total | $ | 14,171 | $ | 14,557 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
Income before Provision for Income Taxes | ' | ||||||||||||
Income before provision for income taxes shown below was based on the geographic location to which such income was attributed as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income before income tax expense: | |||||||||||||
Domestic | $ | 7,001 | $ | 9,291 | $ | 2,872 | |||||||
Foreign | 69,769 | 56,572 | 49,920 | ||||||||||
Total | $ | 76,770 | 65,863 | $ | 52,792 | ||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax expense/ (benefit) consists of: | |||||||||||||
Current | |||||||||||||
Federal | $ | 6,150 | $ | 6,881 | $ | 4,878 | |||||||
State | 310 | 319 | 389 | ||||||||||
Foreign | 8,275 | 7,969 | 2,483 | ||||||||||
Deferred | |||||||||||||
Federal | (668 | ) | (625 | ) | (1,629 | ) | |||||||
State | 14 | 24 | (72 | ) | |||||||||
Foreign | 695 | (3,189 | ) | 2,390 | |||||||||
Total | $ | 14,776 | $ | 11,379 | $ | 8,439 | |||||||
Deferred Tax Assets and Liabilities | ' | ||||||||||||
The components of the Company’s deferred tax assets and liabilities were as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Fixed assets | $ | 732 | $ | 703 | |||||||||
Intangible assets | 4,532 | 4,737 | |||||||||||
Accrued expenses | 3,488 | 4,042 | |||||||||||
Deferred revenue | 2,050 | 1,583 | |||||||||||
Stock-based compensation | 407 | 413 | |||||||||||
Valuation allowance | — | (489 | ) | ||||||||||
Restricted stock options | 1,336 | 1,616 | |||||||||||
Other assets | 680 | 1,214 | |||||||||||
Deferred tax assets | 13,225 | 13,819 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Fixed assets | 804 | 742 | |||||||||||
Accrued revenue and expenses | 846 | 737 | |||||||||||
Deferred intercompany gain | 405 | 405 | |||||||||||
Equity compensation | 1,593 | 2,431 | |||||||||||
Other liabilities | 254 | — | |||||||||||
Deferred tax liability | 3,902 | 4,315 | |||||||||||
Net deferred tax asset | $ | 9,323 | $ | 9,504 | |||||||||
Reconciliation of Effective Income Tax | ' | ||||||||||||
The provision for income taxes differs from the amount of income tax determined by applying the applicable US statutory federal income tax rate to pretax income as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal tax | $ | 26,102 | $ | 22,393 | $ | 18,482 | |||||||
Increase/ (decrease) in taxes resulting from: | |||||||||||||
State taxes, net of federal benefit | 368 | 280 | 266 | ||||||||||
Provision adjustment for current year uncertain tax position | — | — | 178 | ||||||||||
Effect of permanent differences | 2,524 | 2,177 | 2,816 | ||||||||||
Stock-based compensation | 1,948 | 1,165 | — | ||||||||||
Rate differential between U.S. and foreign | (17,279 | ) | (14,472 | ) | (13,297 | ) | |||||||
Change in foreign tax rate | (59 | ) | 148 | (22 | ) | ||||||||
Change in valuation allowance | 489 | (489 | ) | — | |||||||||
Other | 683 | 177 | 16 | ||||||||||
Income tax expense | $ | 14,776 | $ | 11,379 | $ | 8,439 | |||||||
Unrecognized Tax Benefits | ' | ||||||||||||
The beginning to ending reconciliation of the gross unrecognized tax benefits were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Gross Balance at January 1 | $ | 1,271 | $ | 1,271 | $ | 56 | |||||||
Increases in tax positions in current year | — | — | 178 | ||||||||||
Increases in tax positions in prior year | — | — | 1,093 | ||||||||||
Decreases due to settlement | — | — | (56 | ) | |||||||||
Balance at December 31 | $ | 1,271 | $ | 1,271 | $ | 1,271 | |||||||
COMMON_AND_PREFERRED_STOCK_Tab
COMMON AND PREFERRED STOCK (Tables) | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
COMMON AND PREFERRED STOCK [Abstract] | ' | ||||
Conversion of Convertible Preferred Stock | ' | ||||
Upon the closing of the initial public offering, all outstanding Series-A1 and Series-A2 convertible redeemable preferred stock, and Series A3 convertible preferred stock were converted into a total of 21,840,128 shares of common stock, as shown in the table below. | |||||
Conversion Shares | |||||
Series A-1 Convertible Redeemable Preferred Stock | 16,439,480 | ||||
Series A-2 Convertible Redeemable Preferred Stock | 3,078,432 | ||||
Series A-3 Convertible Preferred Stock | 2,322,216 | ||||
Total | 21,840,128 |
STOCK_COMPENSATION_Tables
STOCK COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
STOCK COMPENSATION [Abstract] | ' | ||||||||||||
Stock Compensation Expense | ' | ||||||||||||
The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income and comprehensive income: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cost of revenues | $ | 4,823 | $ | 2,809 | $ | 1,365 | |||||||
Selling, general and administrative | 8,327 | 4,017 | 1,501 | ||||||||||
Total | $ | 13,150 | $ | 6,826 | $ | 2,866 | |||||||
Stock Option Activity | ' | ||||||||||||
Stock option activity under the Company’s plans is set forth below: | |||||||||||||
Number of | Weighted | Aggregate | |||||||||||
Options | Average | Intrinsic | |||||||||||
Exercise Price | Value | ||||||||||||
Options outstanding at January 1, 2011 | 6,378,584 | $ | 3.79 | $ | 19,708 | ||||||||
Options granted | 600,000 | 14 | 1,200 | ||||||||||
Options exercised | (47,600 | ) | 1.52 | (499 | ) | ||||||||
Options forfeited/cancelled | (335,848 | ) | 5.3 | (2,250 | ) | ||||||||
Options outstanding at December 31, 2011 | 6,595,136 | $ | 4.65 | $ | 48,447 | ||||||||
Options granted | 1,443,810 | 16.8 | 1,877 | ||||||||||
Options exercised | (1,552,742 | ) | 3.53 | (22,623 | ) | ||||||||
Options forfeited/cancelled | (189,495 | ) | 11.35 | (1,279 | ) | ||||||||
Options outstanding at December 31, 2012 | 6,296,709 | $ | 7.51 | $ | 66,682 | ||||||||
Options granted | 1,987,952 | 23.6 | 22,543 | ||||||||||
Options exercised | (2,156,898 | ) | 4.31 | (66,066 | ) | ||||||||
Options forfeited/cancelled | (304,227 | ) | 11.5 | (7,131 | ) | ||||||||
Options outstanding at December 31, 2013 | 5,823,536 | $ | 13.99 | $ | 122,003 | ||||||||
Options vested and exercisable at December 31, 2013 | 2,555,245 | $ | 5.89 | $ | 74,230 | ||||||||
Options expected to vest | 3,010,762 | $ | 20.19 | $ | 44,409 | ||||||||
Restricted Stock Activity | ' | ||||||||||||
Summary of restricted stock activity is presented below: | |||||||||||||
Number of | Weighted Average | ||||||||||||
Shares | Grant Date Fair | ||||||||||||
Value Per Share | |||||||||||||
Unvested restricted stock outstanding at January 1, 2011 | — | $ | — | ||||||||||
Restricted stock granted | — | — | |||||||||||
Restricted stock vested | — | — | |||||||||||
Unvested restricted stock outstanding at December 31, 2011 | — | $ | — | ||||||||||
Restricted stock granted | 757,272 | 17.15 | |||||||||||
Restricted stock vested | (97,400 | ) | 12 | ||||||||||
Unvested restricted stock outstanding at December 31, 2012 | 659,872 | $ | 17.92 | ||||||||||
Restricted stock granted | 15,524 | 23.69 | |||||||||||
Restricted stock vested | (330,468 | ) | 17.33 | ||||||||||
Unvested restricted stock outstanding at December 31, 2013 | 344,928 | $ | 18.74 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||
Computation of Basic and Diluted Earning per Share | ' | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator for common earnings per share: | |||||||||||||
Net income | $ | 61,994 | $ | 54,484 | $ | 44,353 | |||||||
Accretion of preferred stock | — | — | (17,563 | ) | |||||||||
Net income allocated to participating securities | — | (3,341 | ) | (15,025 | ) | ||||||||
Effect on income available from redemption of preferred stock | — | — | — | ||||||||||
Numerator for basic/ (common) earnings per share | 61,994 | 51,143 | 11,765 | ||||||||||
Effect on income available from reallocation of options | — | 261 | 1,185 | ||||||||||
Numerator for diluted/ (common) earnings per share | $ | 61,994 | $ | 51,404 | $ | 12,950 | |||||||
Numerator for (puttable common) earnings per share: | |||||||||||||
Net income allocated to basic (puttable common) | — | — | 26 | ||||||||||
Effect on income available from reallocation of options | — | — | (12 | ) | |||||||||
Numerator for diluted (puttable common) earnings per share | — | — | 14 | ||||||||||
Denominator for basic (common) earnings per share: | |||||||||||||
Weighted average common shares outstanding | 45,754 | 40,190 | 17,094 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 2,604 | 3,631 | 3,379 | ||||||||||
Denominator for diluted (common) earnings per share | 48,358 | 43,821 | 20,473 | ||||||||||
Denominator for basic and diluted (puttable common) earnings per share: | |||||||||||||
Weighted average puttable common shares outstanding | — | — | 18 | ||||||||||
Earnings per share: | |||||||||||||
Basic (common) | $ | 1.35 | $ | 1.27 | $ | 0.69 | |||||||
Basic (puttable common) | $ | — | $ | — | $ | 1.42 | |||||||
Diluted (common) | $ | 1.28 | $ | 1.17 | $ | 0.63 | |||||||
Diluted (puttable common) | $ | — | $ | — | $ | 0.77 | |||||||
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||
Future Minimum Rental Payments under Operating Lease | ' | ||||
The Company leases office space under operating leases, which expire at various dates through 2019. Certain leases contain renewal provisions and generally require the Company to pay utilities, insurance, taxes, and other operating expenses. Rent expense under operating lease agreements for the years ended December 31, 2013, 2012 and 2011 was $15,664, $11,594, and $8,522 respectively. Future minimum rental payments under operating leases that have initial or remaining lease terms in excess of one year as of December 31, 2013 were as follows: | |||||
Year Ending December 31, | Operating Leases | ||||
2014 | $ | 13,924 | |||
2015 | 8,218 | ||||
2016 | 4,136 | ||||
2017 | 2,504 | ||||
2018 | 2,017 | ||||
Thereafter | 480 | ||||
Total minimum lease payments | $ | 31,279 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||
Fair Value Hierarchy | ' | ||||||||||||
The following table represents the Company’s fair value hierarchy for its financial assets and liabilities as of December 31 2013, and 2012. | |||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Cash and cash equivalents | $ | 169,207 | $ | — | $ | — | |||||||
Time deposits and restricted cash | — | 1,711 | — | ||||||||||
Employee loans | — | — | 6,390 | ||||||||||
Total | $ | 169,207 | $ | 1,711 | $ | 6,390 | |||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Cash and cash equivalents | $ | 118,112 | $ | — | $ | — | |||||||
Time deposits and restricted cash | — | 2,133 | — | ||||||||||
Employee loans | — | — | 429 | ||||||||||
Total | $ | 118,112 | $ | 2,133 | $ | 429 |
OPERATING_SEGMENTS_Tables
OPERATING SEGMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
OPERATING SEGMENTS [Abstract] | ' | ||||||||||||
Revenues from External Clients and Segment Operating Profit | ' | ||||||||||||
Revenues from external clients and segment operating profit, before unallocated expenses, for the North America, Europe, Russia and Other reportable segments were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total segment revenues: | |||||||||||||
North America | $ | 284,636 | $ | 197,271 | $ | 151,707 | |||||||
Europe | 204,150 | 168,913 | 123,510 | ||||||||||
Russia | 55,764 | 50,552 | 46,219 | ||||||||||
Other | 10,493 | 16,986 | 12,851 | ||||||||||
Total segment revenues | $ | 555,043 | $ | 433,722 | $ | 334,287 | |||||||
Segment operating profit: | |||||||||||||
North America | $ | 66,814 | $ | 38,671 | $ | 33,744 | |||||||
Europe | 34,573 | 32,750 | 25,098 | ||||||||||
Russia | 7,077 | 9,049 | 10,445 | ||||||||||
Other | 844 | 6,985 | 2,416 | ||||||||||
Total segment operating profit | $ | 109,308 | $ | 87,455 | $ | 71,703 | |||||||
Reconciliation of Reportable Segment Revenues and Operating Profit to Consolidated Income from Operation | ' | ||||||||||||
Reconciliation of reportable segment revenues and operating profit to the consolidated income before provision for income taxes is presented below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total segment revenues | $ | 555,043 | $ | 433,722 | $ | 334,287 | |||||||
Unallocated revenue | 74 | 77 | 241 | ||||||||||
Revenues | $ | 555,117 | $ | 433,799 | $ | 334,528 | |||||||
Total segment operating profit | $ | 109,308 | $ | 87,455 | $ | 71,703 | |||||||
Unallocated Amounts: | |||||||||||||
Other revenue | 74 | 77 | 241 | ||||||||||
Stock-based compensation expense | (13,150 | ) | (6,826 | ) | (2,866 | ) | |||||||
Non-corporate taxes | (3,201 | ) | (2,346 | ) | (2,722 | ) | |||||||
Professional fees | (3,651 | ) | (2,850 | ) | (2,802 | ) | |||||||
Depreciation and amortization | (2,829 | ) | (1,100 | ) | (810 | ) | |||||||
Bank charges | (1,194 | ) | (1,136 | ) | (793 | ) | |||||||
Goodwill impairment loss (Note 3) | — | — | (1,697 | ) | |||||||||
Stock charge | — | (640 | ) | — | |||||||||
Provision for bad debts | (36 | ) | — | — | |||||||||
Other corporate expenses | (8,828 | ) | (6,628 | ) | (5,246 | ) | |||||||
Income from operations | 76,493 | 66,006 | 55,008 | ||||||||||
Interest and other income, net | 3,077 | 1,941 | 1,422 | ||||||||||
Foreign exchange loss | (2,800 | ) | (2,084 | ) | (3,638 | ) | |||||||
Income before provision for income taxes | $ | 76,770 | $ | 65,863 | $ | 52,792 | |||||||
Long-Lived Assets by Geographical Location | ' | ||||||||||||
Management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably amongst the segments. Geographical information about the Company’s long-lived assets based on physical location of the assets follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Belarus | $ | 38,697 | $ | 40,095 | |||||||||
Ukraine | 5,525 | 5,357 | |||||||||||
Russia | 3,414 | 3,234 | |||||||||||
United States | 2,217 | 2,048 | |||||||||||
Hungary | 2,644 | 1,744 | |||||||||||
Other | 818 | 657 | |||||||||||
Total | $ | 53,315 | $ | 53,135 | |||||||||
Revenues by Client Location | ' | ||||||||||||
Information about the Company’s revenues by client location is presented below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 247,979 | $ | 197,593 | $ | 163,068 | |||||||
United Kingdom | 108,892 | 98,346 | 70,989 | ||||||||||
Russia | 53,328 | 47,507 | 43,799 | ||||||||||
Switzerland | 51,941 | 30,120 | 15,870 | ||||||||||
Canada | 33,759 | 9,256 | 2,058 | ||||||||||
Germany | 20,261 | 16,391 | 7,909 | ||||||||||
Kazakhstan | 9,886 | 11,352 | 8,845 | ||||||||||
Netherlands | 7,719 | 3,127 | 4,031 | ||||||||||
Sweden | 5,742 | 4,913 | 5,292 | ||||||||||
Spain | 1,957 | 1,710 | 1,893 | ||||||||||
Ukraine | 681 | 4,733 | 891 | ||||||||||
Other locations | 5,346 | 2,334 | 3,707 | ||||||||||
Reimbursable expenses and other revenues | 7,626 | 6,417 | 6,176 | ||||||||||
Revenues | $ | 555,117 | $ | 433,799 | $ | 334,528 | |||||||
Revenues by Service Offering | ' | ||||||||||||
Information about the Company’s revenues by service offering is presented below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Software development | $ | 374,426 | $ | 290,139 | $ | 219,211 | |||||||
Application testing services | 109,222 | 85,849 | 67,840 | ||||||||||
Application maintenance and support | 45,971 | 36,056 | 29,287 | ||||||||||
Infrastructure services | 14,433 | 12,424 | 8,488 | ||||||||||
Licensing | 3,439 | 2,914 | 3,526 | ||||||||||
Reimbursable expenses and other revenues | 7,626 | 6,417 | 6,176 | ||||||||||
Revenues | $ | 555,117 | $ | 433,799 | $ | 334,528 |
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | ' | ||||||||||||||||||||
Summarized Quarterly Results | ' | ||||||||||||||||||||
Summarized quarterly results for the two years ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
2013 | March 31 | June 30 | September 30 | December 31 | Full Year | ||||||||||||||||
Revenues | $ | 124,198 | $ | 133,184 | $ | 140,150 | $ | 157,585 | $ | 555,117 | |||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 77,937 | 83,547 | 88,539 | 97,627 | 347,650 | ||||||||||||||||
Selling, general and administrative expenses | 27,083 | 28,541 | 27,893 | 32,980 | 116,497 | ||||||||||||||||
Depreciation and amortization expense | 3,617 | 3,854 | 3,906 | 3,743 | 15,120 | ||||||||||||||||
Other operating (income)/ expenses, net | 25 | (293 | ) | (418 | ) | 43 | (643 | ) | |||||||||||||
Income from operations | 15,536 | 17,535 | 20,230 | 23,192 | 76,493 | ||||||||||||||||
Interest and other income, net | 630 | 769 | 846 | 832 | 3,077 | ||||||||||||||||
Foreign exchange loss | (499 | ) | (869 | ) | (720 | ) | (712 | ) | (2,800 | ) | |||||||||||
Income before provision for income taxes | 15,667 | 17,435 | 20,356 | 23,312 | 76,770 | ||||||||||||||||
Provision for income taxes | 2,987 | 3,317 | 3,919 | 4,553 | 14,776 | ||||||||||||||||
Net income | $ | 12,680 | $ | 14,118 | $ | 16,437 | $ | 18,759 | $ | 61,994 | |||||||||||
Comprehensive income | $ | 10,337 | $ | 13,073 | $ | 19,412 | $ | 18,361 | $ | 61,183 | |||||||||||
Basic net income per share(1) | $ | 0.28 | $ | 0.31 | $ | 0.36 | $ | 0.4 | $ | 1.35 | |||||||||||
Diluted net income per share(1) | $ | 0.27 | $ | 0.29 | $ | 0.34 | $ | 0.38 | $ | 1.28 | |||||||||||
-1 | Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
2012 | March 31 | June 30 | September 30 | December 31 | Full Year | ||||||||||||||||
Revenues | $ | 94,383 | $ | 103,800 | $ | 110,078 | $ | 125,538 | $ | 433,799 | |||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 60,175 | 63,803 | 69,099 | 77,284 | 270,361 | ||||||||||||||||
Selling, general and administrative expenses | 17,627 | 20,711 | 21,153 | 26,377 | 85,868 | ||||||||||||||||
Depreciation and amortization expense | 2,211 | 2,423 | 3,040 | 3,208 | 10,882 | ||||||||||||||||
Other operating expenses, net | 586 | 33 | 50 | 13 | 682 | ||||||||||||||||
Income from operations | 13,784 | 16,830 | 16,736 | 18,656 | 66,006 | ||||||||||||||||
Interest and other income, net | 476 | 460 | 486 | 519 | 1,941 | ||||||||||||||||
Foreign exchange gain/ (loss) | 80 | (1,394 | ) | (635 | ) | (135 | ) | (2,084 | ) | ||||||||||||
Income before provision for income taxes | 14,340 | 15,896 | 16,587 | 19,040 | 65,863 | ||||||||||||||||
Provision for income taxes | 2,241 | 2,575 | 2,522 | 4,041 | 11,379 | ||||||||||||||||
Net income | $ | 12,099 | $ | 13,321 | $ | 14,065 | $ | 14,999 | $ | 54,484 | |||||||||||
Comprehensive income | $ | 13,711 | $ | 10,857 | $ | 16,769 | $ | 15,640 | $ | 56,977 | |||||||||||
Basic net income per share(1) | $ | 0.3 | $ | 0.31 | $ | 0.33 | $ | 0.35 | $ | 1.27 | |||||||||||
Diluted net income per share(1) | $ | 0.27 | $ | 0.29 | $ | 0.3 | $ | 0.32 | $ | 1.17 | |||||||||||
-1 | Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. |
NATURE_OF_BUSINESS_AND_SIGNIFI2
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 15, 2013 | Dec. 31, 2010 | Nov. 30, 2006 |
ReportingUnit | Customer | Customer | ||||
Customer | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' |
Collections in respect of prior year write-offs amount | $0 | $0 | $0 | ' | ' | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at Beginning of Period | 2,203 | 2,250 | 1,671 | ' | ' | ' |
Charged to Costs and Expenses | 619 | 1,244 | 1,234 | ' | ' | ' |
Deductions/Other | -1,022 | -1,291 | -655 | ' | ' | ' |
Balance at End of Year | 1,800 | 2,203 | 2,250 | ' | ' | ' |
Finite lived intangible assets impairment charges | 0 | 0 | 0 | ' | ' | ' |
Long-lived assets impairment charges | 0 | 0 | 0 | ' | ' | ' |
Cash and cash equivalents | 169,207 | 118,112 | 88,796 | ' | 54,004 | ' |
Number of customers accounted for more than ten percentage of revenue | 0 | 0 | 1 | ' | ' | ' |
Subcontractor costs | 2,078 | 3,535 | 4,545 | ' | ' | ' |
Basis spread on variable rate (in hundredths) | 1.25% | ' | ' | 1.25% | ' | 1.25% |
Stock options vesting term | '4 years | ' | ' | ' | ' | ' |
Loan term | '5 years | ' | ' | ' | ' | ' |
Interest rate on loan | 7.50% | ' | ' | ' | ' | ' |
Employee loans | 6,390 | 429 | ' | ' | ' | ' |
Employee Loans As A Percentage Of Total Assets | 1.50% | ' | ' | ' | ' | ' |
Number of reporting units subject to annual impairment testing | 3 | ' | ' | ' | ' | ' |
Loans on nonaccrual status | '90 days | ' | ' | ' | ' | ' |
Number Of Customers Accounted For More Than Ten Percentage of Accounts Receivable | 1 | ' | ' | ' | ' | ' |
Number of Customers Accounted For More Than Ten Percentage Of Unbilled Revenues | 2 | ' | ' | ' | ' | ' |
Disclosure of Change of Date for Annual Goodwill Impairment Test | 'Effective in the fourth quarter of 2013, the Company changed the annual goodwill impairment assessment date for all of its reporting units from December 31st to October 31st, which represented a voluntary change in the annual goodwill impairment testing date. The Company is also required to assess the goodwill of its reporting units for impairment between annual assessment dates when events or circumstances dictate. This change does not delay, accelerate or avoid an impairment charge and is preferable as additional resources for the preparation, review, and conclusion of the annual goodwill impairment test are available at this time. Further, this timing more closely aligns with the Companybs annual budgeting and planning process. Information prepared during the annual budgeting and planning process is used extensively in the Companybs impairment assessment. The Company evaluates the recoverability of goodwill at a reporting unit level and it had three reporting units that were subject to the annual impairment testing in 2013. The Companybs annual impairment review as of October 31, 2013 and December 31, 2012 did not result in an impairment charge for any of these reporting units. It was impracticable to apply this change retrospectively, as the Company is unable to objectively determine significant estimates and assumptions that would have been used in those earlier periods without the use of hindsight. | ' | ' | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment | '3 years | ' | ' | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment | '50 years | ' | ' | ' | ' | ' |
Top Five Customers [Member] | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' |
Percentage of revenues accounted by major customers (in hundredths) | 30.60% | 31.00% | 32.00% | ' | ' | ' |
Revenue amount by major customer | 169,987 | 134,484 | 107,171 | ' | ' | ' |
Top Ten Customers [Member] | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' |
Percentage of revenues accounted by major customers (in hundredths) | 42.30% | 44.40% | 44.60% | ' | ' | ' |
Revenue amount by major customer | 234,955 | 192,426 | 149,094 | ' | ' | ' |
Top Two Customers [Member] | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' |
Percentage of total unbilled revenues by major customer | 33.30% | ' | ' | ' | ' | ' |
CIS Countries [Member] | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 103,100 | ' | ' | ' | ' | ' |
Belarus [Member] | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 73,900 | ' | ' | ' | ' | ' |
Time And Material Contracts [Member] | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of revenues (in hundredths) | 82.30% | 84.10% | 86.10% | ' | ' | ' |
Fixed Price Contracts [Member] | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of revenues (in hundredths) | 15.70% | 13.70% | 11.00% | ' | ' | ' |
Fixed Price Contracts [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' |
Warranty period | '2 years | ' | ' | ' | ' | ' |
Fixed Price Contracts [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' |
Fixed price contracts period | '3 years | ' | ' | ' | ' | ' |
Warranty period | '3 years | ' | ' | ' | ' | ' |
Loans Under Employee Housing Program [Member] | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' |
Loan term | '5 years | ' | ' | ' | ' | ' |
Interest rate on loan | 7.50% | ' | ' | ' | ' | ' |
Capped price per housing loan | $50 | ' | ' | ' | ' | ' |
Maximum loan-to-value-ratio | 70.00% | ' | ' | ' | ' | ' |
ACQUISITIONS_Detail
ACQUISITIONS (Detail) (USD $) | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 18, 2012 | 23-May-12 | 25-May-12 | Dec. 31, 2013 | 23-May-12 | 23-May-12 | 23-May-12 | 23-May-12 | Dec. 31, 2012 | 23-May-12 | 23-May-12 | 23-May-12 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 18, 2015 | Jul. 11, 2013 | Dec. 18, 2012 | Dec. 31, 2012 | Jun. 13, 2013 | Dec. 18, 2012 | Dec. 18, 2012 | Dec. 18, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
Client Relationships [Member] | Trade Name [Member] | Non-competition Agreements [Member] | Thoughtcorp Inc [Member] | Thoughtcorp Inc [Member] | Thoughtcorp Inc [Member] | Thoughtcorp Inc [Member] | Thoughtcorp Inc [Member] | Thoughtcorp Inc [Member] | Thoughtcorp Inc [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | |||||
Client Relationships [Member] | Trade Name [Member] | Non-competition Agreements [Member] | Stock Based Compensation Expense and Bonuses [Member] | Professional Fees [Member] | Client Relationships [Member] | Trade Name [Member] | Non-competition Agreements [Member] | Sales, General and Administrative [Member] | Sales, General and Administrative [Member] | |||||||||||||||
Stock Based Compensation Expense and Bonuses [Member] | Professional Fees [Member] | |||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, cash paid | ' | ' | ' | ' | ' | ' | ' | $7,497 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration placed in escrow period | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' |
Percentage of consideration placed in escrow | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | 217,272 | ' | ' | ' | ' | ' | ' | 327,827 | 1,483 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares placed in escrow (in shares) | ' | ' | ' | 65,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted common stock | ' | ' | ' | ' | ' | ' | ' | 3,607 | ' | ' | ' | ' | ' | ' | ' | ' | 6,797 | ' | ' | ' | ' | ' | ' | ' |
Vesting period | '3 years | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected tax goodwill | ' | ' | ' | ' | ' | ' | ' | 8,310 | ' | ' | ' | ' | ' | ' | ' | ' | 11,470 | ' | ' | ' | ' | ' | ' | ' |
Amortization period of goodwill for tax purposes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ' | ' | ' | ' | ' | ' | ' |
Percent of tax basis of acquired goodwill (in hundredths) | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill amortization rate (in hundredths) | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue of acquiree included in consolidated statements of income | ' | ' | ' | ' | ' | ' | ' | ' | 7,184 | ' | ' | ' | ' | ' | ' | ' | ' | 545 | ' | ' | ' | ' | ' | ' |
Net income (losses) of acquiree included in consolidated statements of income | ' | ' | ' | ' | ' | ' | ' | ' | -206 | ' | ' | ' | ' | ' | ' | ' | ' | 104 | ' | ' | ' | ' | ' | ' |
Acquisition related costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,252 | 420 | ' | ' | ' | ' | ' | ' | ' | ' | 79 | 81 |
Purchase Price Allocation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | 1,111 | ' | ' | ' | ' | ' | ' | ' | ' | 1,191 | ' | ' | ' | ' | ' | ' | ' |
Trade receivables and other current assets | ' | ' | ' | ' | ' | ' | ' | 2,484 | ' | ' | ' | ' | ' | ' | ' | ' | 5,983 | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | ' | ' | 92 | ' | ' | ' | ' | ' | ' | ' | ' | 186 | ' | ' | ' | ' | ' | ' | ' |
Deferred tax asset | ' | ' | ' | ' | ' | ' | ' | 1,348 | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | 5,296 | ' | 2,810 | 2,014 | 472 | ' | ' | ' | ' | 11,200 | ' | ' | 6,900 | 3,900 | 400 | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | 2,935 | ' | ' | ' | ' | ' | ' | ' | ' | 11,359 | ' | ' | ' | ' | ' | ' | ' |
Total assets acquired | ' | ' | ' | ' | ' | ' | ' | 13,266 | ' | ' | ' | ' | ' | ' | ' | ' | 29,949 | ' | ' | ' | ' | ' | ' | ' |
Accounts payable and accrued expenses | ' | ' | ' | ' | ' | ' | ' | 461 | ' | ' | ' | ' | ' | ' | ' | ' | 1,113 | ' | ' | ' | ' | ' | ' | ' |
Assumed shareholder and director loans | ' | ' | ' | ' | ' | ' | ' | 1,290 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue and other liabilities | ' | ' | ' | ' | ' | ' | ' | 411 | ' | ' | ' | ' | ' | ' | ' | ' | 1,664 | ' | ' | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | ' | ' | 2,162 | ' | ' | ' | ' | ' | ' | ' | ' | 2,777 | ' | ' | ' | ' | ' | ' | ' |
Net assets acquired | ' | ' | ' | ' | ' | ' | ' | 11,104 | ' | ' | ' | ' | ' | ' | ' | ' | 27,172 | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-lived Intangible Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | 5,296 | ' | 2,810 | 2,014 | 472 | ' | ' | ' | ' | 11,200 | ' | ' | 6,900 | 3,900 | 400 | ' | ' |
Weighted Average Useful Life (in years) | ' | ' | ' | ' | '10 years | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '5 years | '4 years | ' | ' |
Business Combination, Consideration Transferred, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,257 | ' | 27,172 | ' | ' | ' | ' | ' |
Business Combination, Consideration Transferred, Equity Instruments Issued and Issuable | ' | ' | ' | ' | ' | ' | ' | 217,274 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Consideration Transferred, Equity Instruments Issued and Issuable | ' | $3,607 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS - NET (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill, net - beginning balance | ' | $22,698 | $8,169 | ' |
Effect of net foreign currency exchange rate changes | ' | -430 | 235 | ' |
Goodwill, net - ending balance | ' | 22,268 | 22,698 | 8,169 |
Goodwill impairment loss | 1,697 | 0 | 0 | 1,697 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross carrying amount | ' | 20,512 | 20,977 | ' |
Accumulated amortization | ' | -6,778 | -4,143 | ' |
Net carrying amount | ' | 13,734 | 16,834 | ' |
Amortization of intangible assets | ' | 2,785 | 1,024 | 779 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
2014 | ' | 2,503 | ' | ' |
2015 | ' | 2,376 | ' | ' |
2016 | ' | 2,341 | ' | ' |
2017 | ' | 1,865 | ' | ' |
2018 | ' | 977 | ' | ' |
Thereafter | ' | 3,672 | ' | ' |
Client Relationships [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Weighted average life at acquisition | ' | '9 years | '9 years | ' |
Gross carrying amount | ' | 13,432 | 13,724 | ' |
Accumulated amortization | ' | -4,885 | -3,640 | ' |
Net carrying amount | ' | 8,547 | 10,084 | ' |
Amortization of intangible assets | ' | 1,373 | 627 | 720 |
Trade Name [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Weighted average life at acquisition | ' | '5 years | '5 years | ' |
Gross carrying amount | ' | 6,232 | 6,372 | ' |
Accumulated amortization | ' | -1,643 | -439 | ' |
Net carrying amount | ' | 4,589 | 5,933 | ' |
Amortization of intangible assets | ' | 1,222 | 333 | 59 |
Non-competition Agreements [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Weighted average life at acquisition | ' | '5 years | '5 years | ' |
Gross carrying amount | ' | 848 | 881 | ' |
Accumulated amortization | ' | -250 | -64 | ' |
Net carrying amount | ' | 598 | 817 | ' |
Amortization of intangible assets | ' | 190 | 64 | 0 |
Thoughtcorp Inc [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Acquisition of Goodwill | ' | ' | 2,935 | ' |
Empathy Lab LLC [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Acquisition of Goodwill | ' | ' | 11,359 | ' |
North America [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill, net - beginning balance | ' | 16,643 | 2,286 | ' |
Effect of net foreign currency exchange rate changes | ' | -205 | 63 | ' |
Goodwill, net - ending balance | ' | 16,438 | 16,643 | ' |
Goodwill, Impaired, Accumulated Impairment Loss | ' | 0 | 0 | 0 |
North America [Member] | Thoughtcorp Inc [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Acquisition of Goodwill | ' | ' | 2,935 | ' |
North America [Member] | Empathy Lab LLC [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Acquisition of Goodwill | ' | ' | 11,359 | ' |
EU [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill, net - beginning balance | ' | 2,864 | 2,864 | ' |
Effect of net foreign currency exchange rate changes | ' | 0 | 0 | ' |
Goodwill, net - ending balance | ' | 2,864 | 2,864 | ' |
Goodwill, Impaired, Accumulated Impairment Loss | ' | 0 | 0 | 0 |
EU [Member] | Thoughtcorp Inc [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Acquisition of Goodwill | ' | ' | 0 | ' |
EU [Member] | Empathy Lab LLC [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Acquisition of Goodwill | ' | ' | 0 | ' |
Russia [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill, net - beginning balance | ' | 3,191 | 3,019 | ' |
Effect of net foreign currency exchange rate changes | ' | -225 | 172 | ' |
Goodwill, net - ending balance | ' | 2,966 | 3,191 | ' |
Goodwill, Impaired, Accumulated Impairment Loss | ' | 0 | 0 | 0 |
Russia [Member] | Thoughtcorp Inc [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Acquisition of Goodwill | ' | ' | 0 | ' |
Russia [Member] | Empathy Lab LLC [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Acquisition of Goodwill | ' | ' | 0 | ' |
Other [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill, net - beginning balance | ' | 0 | 0 | ' |
Effect of net foreign currency exchange rate changes | ' | 0 | 0 | ' |
Goodwill, net - ending balance | ' | 0 | 0 | ' |
Goodwill, Impaired, Accumulated Impairment Loss | ' | -1,697 | -1,697 | -1,697 |
Other [Member] | Thoughtcorp Inc [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Acquisition of Goodwill | ' | ' | 0 | ' |
Other [Member] | Empathy Lab LLC [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Acquisition of Goodwill | ' | ' | $0 | ' |
PREPAID_AND_OTHER_CURRENT_ASSE2
PREPAID AND OTHER CURRENT ASSETS (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ' |
Taxes receivable | $7,295 | $4,522 |
Prepaid expenses | 3,399 | 3,825 |
Security deposits under operating leases | 1,005 | 837 |
Prepaid equipment | 986 | 1,695 |
Unamortized software licenses and subscriptions | 981 | 616 |
Due from employees | 218 | 104 |
Other | 471 | 236 |
Total | $14,355 | $11,835 |
EMPLOYEE_LOANS_AND_ALLOWANCE_F1
EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Minimum service period for employee housing program | '3 years | ' |
Loans authorized for issuance, amount | $10,000 | ' |
Loan Term | '5 years | ' |
Interest rate on loan (in hundredths) | 7.50% | ' |
Loans and Leases Receivable, Net Reported Amount, by Category Alternative [Abstract] | ' | ' |
Employee Loans, Gross | 6,390 | 429 |
Less: Allowance for loan losses | 0 | 0 |
Employee Loans, Net Amount | 6,390 | 429 |
Employee Housing Program [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loan Term | '5 years | ' |
Interest rate on loan (in hundredths) | 7.50% | ' |
Loans and Leases Receivable, Net Reported Amount, by Category Alternative [Abstract] | ' | ' |
Employee Loans, Gross | 5,896 | 0 |
Relocation and Other Loans [Member] | ' | ' |
Loans and Leases Receivable, Net Reported Amount, by Category Alternative [Abstract] | ' | ' |
Employee Loans, Gross | $494 | $429 |
RESTRICTED_CASH_AND_TIME_DEPOS2
RESTRICTED CASH AND TIME DEPOSITS (Detail) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 15, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Cash and Cash Equivalents [Line Items] | ' | ' | ' |
Time deposits | ' | $1,188 | $1,006 |
Restricted Cash And Time Deposits | ' | 1,711 | 2,133 |
Time deposits original maturity period | 15-Oct-14 | ' | ' |
Interest rate of time deposits (in hundredths) | ' | 2.05% | 2.95% |
Client Contracts [Member] | ' | ' | ' |
Restricted Cash and Cash Equivalents [Line Items] | ' | ' | ' |
Short-term security deposits | ' | 298 | 660 |
Employee Loan Programs [Member] | Noncurrent Assets [Member] | ' | ' | ' |
Restricted Cash and Cash Equivalents [Line Items] | ' | ' | ' |
Long-term deposits | ' | 225 | 360 |
Operating Leases [Member] | Noncurrent Assets [Member] | ' | ' | ' |
Restricted Cash and Cash Equivalents [Line Items] | ' | ' | ' |
Long-term deposits | ' | $0 | $107 |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT - NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Gross, Total | $83,479 | $74,989 | ' |
Less accumulated depreciation and amortization | -30,164 | -21,854 | ' |
Total | 53,315 | 53,135 | ' |
Depreciation and amortization expense | 12,335 | 9,858 | 6,759 |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '7 years | ' | ' |
Property, Plant and Equipment, Gross, Total | 5,903 | 5,527 | ' |
Furniture and Fixtures [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '7 years | ' | ' |
Property, Plant and Equipment, Gross, Total | 5,688 | 4,351 | ' |
Office Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '7 years | ' | ' |
Property, Plant and Equipment, Gross, Total | 4,679 | 4,325 | ' |
Purchased Computer Software [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '7 years | ' | ' |
Property, Plant and Equipment, Gross, Total | 5,042 | 4,452 | ' |
Computer Hardware [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '3 years | ' | ' |
Property, Plant and Equipment, Gross, Total | 29,884 | 24,239 | ' |
Building [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '50 years | ' | ' |
Property, Plant and Equipment, Gross, Total | 16,534 | 16,534 | ' |
Construction in Progress [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Gross, Total | $15,749 | $15,561 | ' |
ACCRUED_EXPENSES_AND_OTHER_LIA2
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities, Current [Abstract] | ' | ' |
Compensation | $13,674 | $15,450 |
Subcontractor costs | 2,933 | 1,915 |
Professional fees | 947 | 544 |
Facilities costs | 334 | 297 |
Other | 2,287 | 1,608 |
Total | $20,175 | $19,814 |
TAXES_PAYABLE_Details
TAXES PAYABLE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components Of Taxes Other Than Income [Abstract] | ' | ' |
Corporate profit tax | $3,717 | $3,315 |
Value added taxes | 5,975 | 6,274 |
Payroll, social security, and other taxes | 4,479 | 4,968 |
Total | $14,171 | $14,557 |
INCOME_TAXES_Detail
INCOME TAXES (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Jun. 30, 2006 | |
Income Before Income Tax Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | $7,001,000 | $9,291,000 | $2,872,000 | ' | ' | ' | ' |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 69,769,000 | 56,572,000 | 49,920,000 | ' | ' | ' | ' |
Total | 23,312,000 | 20,356,000 | 17,435,000 | 15,667,000 | 19,040,000 | 16,587,000 | 15,896,000 | 14,340,000 | 76,770,000 | 65,863,000 | 52,792,000 | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 6,150,000 | 6,881,000 | 4,878,000 | ' | ' | ' | ' |
State | ' | ' | ' | ' | ' | ' | ' | ' | 310,000 | 319,000 | 389,000 | ' | ' | ' | ' |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 8,275,000 | 7,969,000 | 2,483,000 | ' | ' | ' | ' |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -668,000 | -625,000 | -1,629,000 | ' | ' | ' | ' |
State | ' | ' | ' | ' | ' | ' | ' | ' | 14,000 | 24,000 | -72,000 | ' | ' | ' | ' |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 695,000 | -3,189,000 | 2,390,000 | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 14,776,000 | 11,379,000 | 8,439,000 | ' | ' | ' | ' |
Deferred Tax Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed assets | 732,000 | ' | ' | ' | 703,000 | ' | ' | ' | 732,000 | 703,000 | ' | ' | ' | ' | ' |
Intangible assets | 4,532,000 | ' | ' | ' | 4,737,000 | ' | ' | ' | 4,532,000 | 4,737,000 | ' | ' | ' | ' | ' |
Accrued expenses | 3,488,000 | ' | ' | ' | 4,042,000 | ' | ' | ' | 3,488,000 | 4,042,000 | ' | ' | ' | ' | ' |
Deferred revenue | 2,050,000 | ' | ' | ' | 1,583,000 | ' | ' | ' | 2,050,000 | 1,583,000 | ' | ' | ' | ' | ' |
Stock-based compensation | 407,000 | ' | ' | ' | 413,000 | ' | ' | ' | 407,000 | 413,000 | ' | ' | ' | ' | ' |
Valuation allowance | 0 | ' | ' | ' | -489,000 | ' | ' | ' | 0 | -489,000 | ' | ' | ' | ' | ' |
Restricted stock options | 1,336,000 | ' | ' | ' | 1,616,000 | ' | ' | ' | 1,336,000 | 1,616,000 | ' | ' | ' | ' | ' |
Other assets | 680,000 | ' | ' | ' | 1,214,000 | ' | ' | ' | 680,000 | 1,214,000 | ' | ' | ' | ' | ' |
Deferred tax assets | 13,225,000 | ' | ' | ' | 13,819,000 | ' | ' | ' | 13,225,000 | 13,819,000 | ' | ' | ' | ' | ' |
Deferred Tax Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed assets | 804,000 | ' | ' | ' | 742,000 | ' | ' | ' | 804,000 | 742,000 | ' | ' | ' | ' | ' |
Accrued revenue and expenses | 846,000 | ' | ' | ' | 737,000 | ' | ' | ' | 846,000 | 737,000 | ' | ' | ' | ' | ' |
Deferred intercompany gain | 405,000 | ' | ' | ' | 405,000 | ' | ' | ' | 405,000 | 405,000 | ' | ' | ' | ' | ' |
Equity compensation | 1,593,000 | ' | ' | ' | 2,431,000 | ' | ' | ' | 1,593,000 | 2,431,000 | ' | ' | ' | ' | ' |
Other liabilities | 254,000 | ' | ' | ' | 0 | ' | ' | ' | 254,000 | 0 | ' | ' | ' | ' | ' |
Deferred tax liability | 3,902,000 | ' | ' | ' | 4,315,000 | ' | ' | ' | 3,902,000 | 4,315,000 | ' | ' | ' | ' | ' |
Net deferred tax asset | 9,323,000 | ' | ' | ' | 9,504,000 | ' | ' | ' | 9,323,000 | 9,504,000 | ' | ' | ' | ' | ' |
Deferred tax assets, current | 5,392,000 | ' | ' | ' | 6,593,000 | ' | ' | ' | 5,392,000 | 6,593,000 | ' | ' | ' | ' | ' |
Deferred tax assets, non current | 4,557,000 | ' | ' | ' | 6,093,000 | ' | ' | ' | 4,557,000 | 6,093,000 | ' | ' | ' | ' | ' |
Deferred tax liabilities, current | 275,000 | ' | ' | ' | 491,000 | ' | ' | ' | 275,000 | 491,000 | ' | ' | ' | ' | ' |
Deferred tax liabilities, non current | 351,000 | ' | ' | ' | 2,691,000 | ' | ' | ' | 351,000 | 2,691,000 | ' | ' | ' | ' | ' |
Undistributed earnings that intended to permanently reinvest | 249,600 | ' | ' | ' | ' | ' | ' | ' | 249,600 | ' | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory federal tax | ' | ' | ' | ' | ' | ' | ' | ' | 26,102,000 | 22,393,000 | 18,482,000 | ' | ' | ' | ' |
Increase/ (decrease) in taxes resulting from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
State taxes, net of federal benefit | ' | ' | ' | ' | ' | ' | ' | ' | 368,000 | 280,000 | 266,000 | ' | ' | ' | ' |
Provision adjustment for current year uncertain tax position | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 178,000 | ' | ' | ' | ' |
Effect of permanent differences | ' | ' | ' | ' | ' | ' | ' | ' | 2,524,000 | 2,177,000 | 2,816,000 | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | 1,948,000 | 1,165,000 | 0 | ' | ' | ' | ' |
Rate differential between U.S. and foreign | ' | ' | ' | ' | ' | ' | ' | ' | -17,279,000 | -14,472,000 | -13,297,000 | ' | ' | ' | ' |
Change in foreign tax rate | ' | ' | ' | ' | ' | ' | ' | ' | -59,000 | 148,000 | -22,000 | ' | ' | ' | ' |
Change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 489,000 | -489,000 | 0 | ' | ' | ' | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 683,000 | 177,000 | 16,000 | ' | ' | ' | ' |
Income tax expense | 4,553,000 | 3,919,000 | 3,317,000 | 2,987,000 | 4,041,000 | 2,522,000 | 2,575,000 | 2,241,000 | 14,776,000 | 11,379,000 | 8,439,000 | ' | ' | ' | ' |
Income tax rate exempted (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Effective income tax rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% |
Percentage of tax credit form annual Qualified salaries (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Income tax credit (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | ' |
Benefits from tax holidays | ' | ' | ' | ' | ' | ' | ' | ' | 9,700,000 | 8,500,000 | 21,000,000 | ' | ' | ' | ' |
Benefits from tax holidays per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.20 | $0.19 | $0.49 | ' | ' | ' | ' |
Gross unrecognized tax benefits | 1,271,000 | ' | ' | ' | 1,271,000 | ' | ' | ' | 1,271,000 | 1,271,000 | 1,271,000 | 56,000 | ' | ' | ' |
Unrecognized tax benefits, accrued penalties and interest | 189,000 | ' | ' | ' | 125,000 | ' | ' | ' | 189,000 | 125,000 | 55,000 | ' | ' | ' | ' |
Unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate | 1,328,000 | ' | ' | ' | 1,354,000 | ' | ' | ' | 1,328,000 | 1,354,000 | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Balance at beginning of year | ' | ' | ' | 1,271,000 | ' | ' | ' | 1,271,000 | 1,271,000 | 1,271,000 | 56,000 | ' | ' | ' | ' |
Increases in tax positions in current year | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 178,000 | ' | ' | ' | ' |
Increases in tax positions in prior year | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 1,093,000 | ' | ' | ' | ' |
Decreases due to settlement | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -56,000 | ' | ' | ' | ' |
Balance at end of year | $1,271,000 | ' | ' | ' | $1,271,000 | ' | ' | ' | $1,271,000 | $1,271,000 | $1,271,000 | $56,000 | ' | ' | ' |
Belarus [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase/ (decrease) in taxes resulting from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax exemption period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years |
Hungary [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase/ (decrease) in taxes resulting from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax exemption period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' |
Unrecognized Tax Benefits [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax credit limitations on use | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Hungarian tax authorities repealed the tax credit beginning with 2012. Credits earned in years prior to 2012, will be allowed until fully utilized. The Company anticipates full utilization up to the 70% limit until 2014, with full phase out in 2015. | ' | ' | ' | ' |
EMPLOYEE_BENEFITS_Details
EMPLOYEE BENEFITS (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
EMPLOYEE BENEFITS [Abstract] | ' |
Discretionary matching contribution to retirement plan by employer | 2.00% |
Contribution by employer for retirement plan | $404 |
LONGTERM_DEBT_Detail
LONG-TERM DEBT (Detail) (USD $) | 0 Months Ended | ||||
In Thousands, unless otherwise specified | Jan. 15, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 25, 2011 | Nov. 30, 2006 |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Line of credit, maximum borrowing capacity | $40,000 | ' | ' | $30,000 | $7,000 |
Basis spread on variable rate (in hundredths) | 1.25% | 1.25% | ' | ' | 1.25% |
Line of credit, expiration date | 15-Jan-15 | ' | ' | ' | ' |
Line of credit, current borrowing capacity | ' | 40,000 | ' | ' | ' |
Line of credit, outstanding amount | ' | $0 | $0 | ' | ' |
Line Of Credit Facility Percentage Of Equity Interest As Collateral | 65.00% | ' | ' | ' | ' |
COMMON_AND_PREFERRED_STOCK_Det
COMMON AND PREFERRED STOCK (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | 25-May-12 | Jan. 19, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 07, 2012 | Jan. 20, 2006 | Feb. 29, 2012 | Feb. 29, 2012 | Feb. 29, 2012 | Jan. 20, 2006 | Feb. 29, 2012 | Feb. 07, 2012 | Jan. 20, 2006 | Feb. 29, 2012 | Dec. 31, 2011 | Jan. 20, 2006 | Jan. 20, 2006 | Jan. 19, 2010 | Dec. 31, 2011 | Feb. 19, 2008 | Feb. 19, 2008 | Jan. 19, 2010 | Apr. 15, 2010 | Apr. 15, 2010 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 20, 2006 | Jan. 19, 2010 | Jan. 20, 2006 | Jan. 19, 2010 | Jan. 19, 2010 | Jan. 19, 2010 | Apr. 15, 2010 |
IPO [Member] | IPO [Member] | IPO [Member] | Private Placement [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Stockholders [Member] | Series A-1 Convertible Redeemable Preferred Stock [Member] | Series A-1 Convertible Redeemable Preferred Stock [Member] | Series A-1 Convertible Redeemable Preferred Stock [Member] | Series A-2 Convertible Redeemable Preferred Stock [Member] | Series A-2 Convertible Redeemable Preferred Stock [Member] | Series A-2 Convertible Redeemable Preferred Stock [Member] | Series A-2 Convertible Redeemable Preferred Stock [Member] | Series A-2 Convertible Redeemable Preferred Stock [Member] | Series A-3 Convertible Preferred Stock [Member] | Series A-3 Convertible Preferred Stock [Member] | Instant Information Inc [Member] | Empathy Lab LLC [Member] | Thoughtcorp Inc [Member] | Redemption [Member] | Redemption [Member] | Liquidation [Member] | Liquidation [Member] | Liquidation [Member] | Liquidation [Member] | Liquidation [Member] | ||||||||
Underwriting Discounts and Commissions [Member] | Offering expenses [Member] | IPO [Member] | IPO [Member] | Private Placement [Member] | IPO [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Series A-1 Convertible Redeemable Preferred Stock [Member] | Series A-2 Convertible Redeemable Preferred Stock [Member] | Series A-1 Convertible Redeemable Preferred Stock [Member] | Series A-2 Convertible Redeemable Preferred Stock [Member] | Series A-2 Convertible Redeemable Preferred Stock [Member] | Series A-2 Convertible Redeemable Preferred Stock [Member] | Series A-3 Convertible Preferred Stock [Member] | |||||||||||||||||||
Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||
Hurdle amount [Member] | |||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, stock split ratio (in shares) | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized (in shares) | ' | 160,000,000 | 160,000,000 | 160,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized (in shares) | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock sold pursuant to over-allotment option granted to underwriters (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of stock price per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12 | $1.13 | ' | ' | ' | $12.17 | ' | ' | ' | $74.07 | $51.85 | ' | $51.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock in initial public offering (in shares) | ' | ' | 47,569,463 | 45,398,523 | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | $34,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,969 | ' | ' | ' | ' | ' | 8,000 | ' | ' | ' | 47,601 | ' | ' | 14,971 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment for stock issuance costs | ' | ' | 0 | 1,765 | 1,630 | ' | ' | ' | 2,436 | 3,395 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,399 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued in connection with acquisition (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,336 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued in connection with acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 640 | -13 | 3,607 | ' | ' | ' | ' | ' | ' | ' |
Common Stock Share Sold | ' | ' | ' | ' | ' | ' | ' | 6,900,000 | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock (in shares) | ' | ' | ' | ' | ' | ' | ' | 21,840,128 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of preferred stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 657,354 | ' | ' | ' | 675,081 | ' | ' | 290,277 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Shares Converted to Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,180,648 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period Shares Convertible Preferred New Issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,397,581 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deemed dividend | ' | ' | ' | ' | ' | ' | 6,803 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compounded annual rate of return (in hundredths)) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | 12.50% | 12.50% | 12.50% | 17.00% | 18.00% | ' |
Accretion expense | ' | ' | ' | ' | 17,563 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,245 | ' | ' | ' | 44,695 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from issuance of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of Series A-2 convertible redeemable preferred stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 290,277 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of Series A-2 convertible redeemable preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,050 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of liquidation price to cash and non-cash proceeds (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17.10% | ' | ' | ' |
Put option expiry (in shares) | ' | ' | ' | ' | 56,896 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity securities subject to liquidation evaluation (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% |
Treasury stock retired (in shares) | 38,792 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Features of Convertible Preferred Stock [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock (in shares) | ' | ' | ' | ' | ' | ' | ' | 21,840,128 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCK_COMPENSATION_Detail
STOCK COMPENSATION (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Jul. 11, 2013 | Jun. 13, 2013 | Jan. 08, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 13, 2013 | Jan. 08, 2013 | Jan. 11, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | 23-May-12 | Dec. 18, 2015 | Jul. 11, 2013 | Dec. 18, 2013 | Jan. 08, 2017 | Jan. 08, 2016 | Jan. 08, 2015 | Jun. 13, 2014 | Jan. 08, 2014 | Dec. 18, 2015 | Dec. 18, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
2012 Non Employee Directors Compensation Plan [Member] | 2012 Non Employee Directors Compensation Plan [Member] | 2012 Non Employee Directors Compensation Plan [Member] | 2012 Long Term Incentive Plan [Member] | 2006 Stock Option Plan [Member] | Thoughtcorp Inc [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Cost of Revenues [Member] | Cost of Revenues [Member] | Cost of Revenues [Member] | Sales, General and Administrative [Member] | Sales, General and Administrative [Member] | Sales, General and Administrative [Member] | ||||||||
2012 Non Employee Directors Compensation Plan [Member] | 2012 Non Employee Directors Compensation Plan [Member] | 2012 Non Employee Directors Compensation Plan [Member] | 2012 Non Employee Directors Compensation Plan [Member] | 2012 Non Employee Directors Compensation Plan [Member] | Empathy Lab LLC [Member] | Empathy Lab LLC [Member] | |||||||||||||||||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | $13,150 | $6,826 | $2,866 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,823 | $2,809 | $1,365 | $8,327 | $4,017 | $1,501 |
Issue of Non-vested Shares (in shares) | ' | ' | ' | ' | ' | ' | ' | 8,784 | 5,257 | ' | ' | ' | 217,272 | 327,827 | 1,483 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of restricted shares vested (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.33% | 25.00% | 25.00% | 25.00% | 100.00% | 25.00% | 33.33% | 33.33% | ' | ' | ' | ' | ' | ' |
Fair value of non vested restricted shares | ' | 42 | 225 | 101 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized to be reserved for issuance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Plan expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares subject to outstanding awards that expire or terminate that are available for awards to be granted (in shares) | 2,647,121 | ' | ' | ' | 2,647,121 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares available for issuance (in shares) | 7,042,568 | ' | ' | ' | 7,042,568 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options issued (in shares) | ' | ' | ' | ' | 2,156,898 | 1,552,742 | 47,600 | ' | ' | ' | 1,987,952 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options issued, grant fair value | ' | ' | ' | ' | 19,473 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (in hundredths) | ' | ' | ' | ' | 46.00% | 46.00% | 43.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | ' | '6 years 2 months 26 days | '6 years 3 months | '6 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (in hundredths) | ' | ' | ' | ' | 1.41% | 1.13% | 2.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield (in hundredths) | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to non-vested share-based compensation awards granted | $28,921 | ' | ' | ' | $28,921 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to non-vested share-based compensation awards granted, period for recognition | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCK_COMPENSATION_PLANS_Detai
STOCK COMPENSATION, PLANS (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Number of options | ' | ' | ' |
Options outstanding beginning of year (in shares) | 6,296,709 | 6,595,136 | 6,378,584 |
Options granted (in shares) | 1,987,952 | 1,443,810 | 600,000 |
Options exercised (in shares) | -2,156,898 | -1,552,742 | -47,600 |
Options forfeited/cancelled (in shares) | -304,227 | -189,495 | -335,848 |
Options outstanding end of year (in shares) | 5,823,536 | 6,296,709 | 6,595,136 |
Options vested and exercisable end of year (in shares) | 2,555,245 | ' | ' |
Options expected to vest (in shares) | 3,010,762 | ' | ' |
Weighted-Average Exercise Price | ' | ' | ' |
Options outstanding beginning of year (in dollars per share) | $7.51 | $4.65 | $3.79 |
Options granted (in dollars per share) | $23.60 | $16.80 | $14 |
Options exercised (in dollars per share) | $4.31 | $3.53 | $1.52 |
Options forfeited/cancelled (in dollars per share) | $11.50 | $11.35 | $5.30 |
Options outstanding at end of year (in dollars per share) | $13.99 | $7.51 | $4.65 |
Options vested and exercisable end of year (in dollars per share) | $5.89 | ' | ' |
Options expected to vest (in dollars per share) | $20.19 | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Options outstanding at beginning of year | $66,682 | $48,447 | $19,708 |
Options granted | 22,543 | 1,877 | 1,200 |
Options exercised | -66,066 | -22,623 | -499 |
Options forfeited/cancelled | -7,131 | -1,279 | -2,250 |
Options outstanding at end of year | 122,003 | 66,682 | 48,447 |
Options vested and exercisable at end of year | 74,230 | ' | ' |
Options expected to vest | $44,409 | ' | ' |
Unvested restricted stock Number of shares | ' | ' | ' |
Unvested at beginning of year (in shares) | 659,872 | 0 | 0 |
Granted (in shares) | 15,524 | 757,272 | 0 |
Vested (in shares) | -330,468 | -97,400 | 0 |
Unvested at end of year (in shares) | 344,928 | 659,872 | 0 |
Unvested restricted stock weighted-average grant date fair value | ' | ' | ' |
Unvested at beginning of year (in dollars per share) | $17.92 | $0 | $0 |
Granted (in dollars per share) | $23.69 | $17.15 | $0 |
Vested (in dollars per share) | $17.33 | $12 | $0 |
Unvested at end of year (in dollars per share) | $18.74 | $17.92 | $0 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||||
Numerator for earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net income | $18,759 | $16,437 | $14,118 | $12,680 | $14,999 | $14,065 | $13,321 | $12,099 | $61,994 | $54,484 | $44,353 | ||||||||||
Numerator for basic earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 61,994 | 51,143 | 11,765 | ||||||||||
Denominator for basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Weighted average common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 45,754 | 40,190 | 17,094 | ||||||||||
Denominator for diluted (common) earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 48,358 | 43,821 | 20,473 | ||||||||||
Denominator for basic and diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Weighted average puttable common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 18 | ||||||||||
Earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Basic (in dollars per share) | $0.40 | [1] | $0.36 | [1] | $0.31 | [1] | $0.28 | [1] | $0.35 | [1] | $0.33 | [1] | $0.31 | [1] | $0.30 | [1] | $1.35 | [1] | $1.27 | [1] | ' |
Diluted (in dollars per share) | $0.38 | [1] | $0.34 | [1] | $0.29 | [1] | $0.27 | [1] | $0.32 | [1] | $0.30 | [1] | $0.29 | [1] | $0.27 | [1] | $1.28 | [1] | $1.17 | [1] | ' |
Excluded Options due to Anti-Dilutive (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,080 | 1,534 | 572 | ||||||||||
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Denominator for basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Effect of dilutive securities (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 2,604 | 3,631 | 3,379 | ||||||||||
Common Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Numerator for earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 61,994 | 54,484 | 44,353 | ||||||||||
Accretion of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -17,563 | ||||||||||
Net income allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -3,341 | -15,025 | ||||||||||
Effect on income available from redemption of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ||||||||||
Numerator for basic earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 61,994 | 51,143 | 11,765 | ||||||||||
Effect on income available from reallocation of options | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 261 | 1,185 | ||||||||||
Numerator for diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 61,994 | 51,404 | 12,950 | ||||||||||
Denominator for basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Weighted average common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 45,754,000 | 40,190,000 | 17,094,000 | ||||||||||
Denominator for diluted (common) earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 48,358,000 | 43,821,000 | 20,473,000 | ||||||||||
Earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Basic (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $1.35 | $1.27 | $0.69 | ||||||||||
Diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $1.28 | $1.17 | $0.63 | ||||||||||
Puttable Common Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Numerator for earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Numerator for basic earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 26 | ||||||||||
Effect on income available from reallocation of options | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -12 | ||||||||||
Numerator for diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $14 | ||||||||||
Denominator for basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Weighted average common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 18,000 | ||||||||||
Denominator for diluted (common) earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 18,000 | ||||||||||
Earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Basic (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $1.42 | ||||||||||
Diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0.77 | ||||||||||
[1] | Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year-to-date basis. |
COMMITMENTS_CONTINGENCIES_AND_2
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loss Contingencies [Line Items] | ' | ' | ' |
Rent expense under operating lease agreements | $15,664 | $11,594 | $8,522 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2014 | 13,924 | ' | ' |
2015 | 8,218 | ' | ' |
2016 | 4,136 | ' | ' |
2017 | 2,504 | ' | ' |
2018 | 2,017 | ' | ' |
Thereafter | 480 | ' | ' |
Total minimum lease payments | 31,279 | ' | ' |
2006 Employee Loan Program [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Total commitment | 233 | ' | ' |
Provision for losses | 0 | 0 | 0 |
Construction in Progress [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Total commitment | 1,890 | ' | ' |
Employee Housing Program [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Total commitment | 35 | ' | ' |
Provision for losses | $0 | ' | ' |
FAIR_VALUE_MEASURES_Detail
FAIR VALUE MEASURES (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loan issued to employee | $8,963 | $566 |
Repayment of loan by employees | 3,088 | 640 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | 169,207 | 118,112 |
Time deposits and restricted cash | ' | ' |
Employee loans | ' | ' |
Total | 169,207 | 118,112 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | ' | ' |
Time deposits and restricted cash | 1,711 | 2,133 |
Employee loans | ' | ' |
Total | 1,711 | 2,133 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | ' | ' |
Time deposits and restricted cash | ' | ' |
Employee loans | 6,390 | 429 |
Total | $6,390 | $429 |
OPERATING_SEGMENTS_Details
OPERATING SEGMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Customer | Customer | Customer | ||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $157,585 | $140,150 | $133,184 | $124,198 | $125,538 | $110,078 | $103,800 | $94,383 | ' | $555,117 | $433,799 | $334,528 |
Operating profit | 23,192 | 20,230 | 17,535 | 15,536 | 18,656 | 16,736 | 16,830 | 13,784 | ' | 76,493 | 66,006 | 55,008 |
Unallocated Amounts: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | -13,150 | -6,826 | -2,866 |
Depreciation and amortization | -3,743 | -3,906 | -3,854 | -3,617 | -3,208 | -3,040 | -2,423 | -2,211 | ' | -15,120 | -10,882 | -7,538 |
Goodwill impairment loss (Note 3) | ' | ' | ' | ' | ' | ' | ' | ' | -1,697 | 0 | 0 | -1,697 |
Provision for bad debts | ' | ' | ' | ' | ' | ' | ' | ' | ' | -335 | -662 | -727 |
Income from operations | 23,192 | 20,230 | 17,535 | 15,536 | 18,656 | 16,736 | 16,830 | 13,784 | ' | 76,493 | 66,006 | 55,008 |
Interest and other income, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,077 | 1,941 | 1,422 |
Foreign exchange loss | -712 | -720 | -869 | -499 | -135 | -635 | -1,394 | 80 | ' | -2,800 | -2,084 | -3,638 |
Income before provision for income taxes | 23,312 | 20,356 | 17,435 | 15,667 | 19,040 | 16,587 | 15,896 | 14,340 | ' | 76,770 | 65,863 | 52,792 |
Geographic Areas, Long-Lived Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 53,315 | ' | ' | ' | 53,135 | ' | ' | ' | ' | 53,315 | 53,135 | ' |
Number Of Customers Accounted For More Than Ten Percentage Of Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 1 |
Thomson Reuters [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic Areas, Long-Lived Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity-wide revenue, major customer, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,903 |
Percentage of revenues accounted by major customer (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.70% |
Reimbursable Expenses and Other Revenues [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,626 | 6,417 | 6,176 |
Software Development [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 374,426 | 290,139 | 219,211 |
Application Testing Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109,222 | 85,849 | 67,840 |
Application Maintenance and Support [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,971 | 36,056 | 29,287 |
Infrastructure Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,433 | 12,424 | 8,488 |
Licensing [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,439 | 2,914 | 3,526 |
Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 555,043 | 433,722 | 334,287 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109,308 | 87,455 | 71,703 |
Unallocated Amounts: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109,308 | 87,455 | 71,703 |
Unallocated Amounts [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74 | 77 | 241 |
Unallocated Amounts: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74 | 77 | 241 |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | -13,150 | -6,826 | -2,866 |
Stock charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -640 | 0 |
Non-corporate taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,201 | -2,346 | -2,722 |
Professional fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,651 | -2,850 | -2,802 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,829 | -1,100 | -810 |
Bank charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,194 | -1,136 | -793 |
Goodwill impairment loss (Note 3) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -1,697 |
Provision for bad debts | ' | ' | ' | ' | ' | ' | ' | ' | ' | -36 | 0 | 0 |
Other corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,828 | -6,628 | -5,246 |
North America [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 284,636 | 197,271 | 151,707 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,814 | 38,671 | 33,744 |
Unallocated Amounts: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,814 | 38,671 | 33,744 |
Europe [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 204,150 | 168,913 | 123,510 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,573 | 32,750 | 25,098 |
Unallocated Amounts: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,573 | 32,750 | 25,098 |
Russia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,328 | 47,507 | 43,799 |
Geographic Areas, Long-Lived Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 3,414 | ' | ' | ' | 3,234 | ' | ' | ' | ' | 3,414 | 3,234 | ' |
Russia [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,764 | 50,552 | 46,219 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,077 | 9,049 | 10,445 |
Unallocated Amounts: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,077 | 9,049 | 10,445 |
Belarus [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic Areas, Long-Lived Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 38,697 | ' | ' | ' | 40,095 | ' | ' | ' | ' | 38,697 | 40,095 | ' |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 247,979 | 197,593 | 163,068 |
Geographic Areas, Long-Lived Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 2,217 | ' | ' | ' | 2,048 | ' | ' | ' | ' | 2,217 | 2,048 | ' |
Hungary [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic Areas, Long-Lived Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 2,644 | ' | ' | ' | 1,744 | ' | ' | ' | ' | 2,644 | 1,744 | ' |
United Kingdom [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108,892 | 98,346 | 70,989 |
Switzerland [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,941 | 30,120 | 15,870 |
Germany [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,261 | 16,391 | 7,909 |
Kazakhstan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,886 | 11,352 | 8,845 |
Canada [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,759 | 9,256 | 2,058 |
Sweden [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,742 | 4,913 | 5,292 |
Ukraine [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 681 | 4,733 | 891 |
Geographic Areas, Long-Lived Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 5,525 | ' | ' | ' | 5,357 | ' | ' | ' | ' | 5,525 | 5,357 | ' |
Netherlands [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,719 | 3,127 | 4,031 |
Other Countries [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,346 | 2,334 | 3,707 |
Geographic Areas, Long-Lived Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 818 | ' | ' | ' | 657 | ' | ' | ' | ' | 818 | 657 | ' |
Other Countries [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,493 | 16,986 | 12,851 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 844 | 6,985 | 2,416 |
Unallocated Amounts: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 844 | 6,985 | 2,416 |
Spain [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,957 | $1,710 | $1,893 |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Revenues | $157,585 | $140,150 | $133,184 | $124,198 | $125,538 | $110,078 | $103,800 | $94,383 | $555,117 | $433,799 | $334,528 | ||||||||||
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 97,627 | 88,539 | 83,547 | 77,937 | 77,284 | 69,099 | 63,803 | 60,175 | 347,650 | 270,361 | 205,336 | ||||||||||
Selling, general and administrative expenses | 32,980 | 27,893 | 28,541 | 27,083 | 26,377 | 21,153 | 20,711 | 17,627 | 116,497 | 85,868 | 64,930 | ||||||||||
Depreciation and amortization expense | 3,743 | 3,906 | 3,854 | 3,617 | 3,208 | 3,040 | 2,423 | 2,211 | 15,120 | 10,882 | 7,538 | ||||||||||
Other operating (income)/ expenses, net | 43 | -418 | -293 | 25 | 13 | 50 | 33 | 586 | -643 | 682 | 19 | ||||||||||
Income from operations | 23,192 | 20,230 | 17,535 | 15,536 | 18,656 | 16,736 | 16,830 | 13,784 | 76,493 | 66,006 | 55,008 | ||||||||||
Interest and other income, net | 832 | 846 | 769 | 630 | 519 | 486 | 460 | 476 | 3,077 | 1,941 | ' | ||||||||||
Foreign exchange gain/(loss) | -712 | -720 | -869 | -499 | -135 | -635 | -1,394 | 80 | -2,800 | -2,084 | -3,638 | ||||||||||
Provision for income taxes | 4,553 | 3,919 | 3,317 | 2,987 | 4,041 | 2,522 | 2,575 | 2,241 | 14,776 | 11,379 | 8,439 | ||||||||||
Net income | 18,759 | 16,437 | 14,118 | 12,680 | 14,999 | 14,065 | 13,321 | 12,099 | 61,994 | 54,484 | 44,353 | ||||||||||
Comprehensive income | 18,361 | 19,412 | 13,073 | 10,337 | 15,640 | 16,769 | 10,857 | 13,711 | 61,183 | 56,977 | 43,103 | ||||||||||
Basic net income per share (in dollars per share) | $0.40 | [1] | $0.36 | [1] | $0.31 | [1] | $0.28 | [1] | $0.35 | [1] | $0.33 | [1] | $0.31 | [1] | $0.30 | [1] | $1.35 | [1] | $1.27 | [1] | ' |
Diluted net income per share (in dollars per share) | $0.38 | [1] | $0.34 | [1] | $0.29 | [1] | $0.27 | [1] | $0.32 | [1] | $0.30 | [1] | $0.29 | [1] | $0.27 | [1] | $1.28 | [1] | $1.17 | [1] | ' |
Income before provision for income taxes | $23,312 | $20,356 | $17,435 | $15,667 | $19,040 | $16,587 | $15,896 | $14,340 | $76,770 | $65,863 | $52,792 | ||||||||||
[1] | Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year-to-date basis. |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Scenario, Forecast [Member], Acquisition of Businesses [Member], Netsoft [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Mar. 05, 2014 |
Scenario, Forecast [Member] | Acquisition of Businesses [Member] | Netsoft [Member] | ' |
Subsequent Event [Line Items] | ' |
Purchase price | $6,000 |