Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 10, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | EPAM Systems, Inc. | ||
Trading Symbol | EPAM | ||
Entity Central Index Key | 1,352,010 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 51,184,697 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Public Float | $ 3,092 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 362,025 | $ 199,449 |
Restricted cash | 2,400 | 0 |
Time deposits | 403 | 30,181 |
Accounts receivable, net of allowance of $1,434 and $1,729, respectively | 199,982 | 174,617 |
Unbilled revenues | 63,325 | 95,808 |
Prepaid and other assets, net of allowance of $644 and $0, respectively | 15,690 | 14,344 |
Employee loans, net of allowance of $0 and $0, respectively | 2,726 | 2,689 |
Deferred tax assets | 0 | 11,847 |
Total current assets | 646,551 | 528,935 |
Property and equipment, net | 73,616 | 60,499 |
Restricted cash | 239 | 238 |
Employee loans, net of allowance of $0 and $0, respectively | 3,252 | 3,649 |
Intangible assets, net | 51,260 | 46,860 |
Goodwill | 109,289 | 115,930 |
Deferred tax assets | 31,005 | 18,312 |
Other long-term assets, net of allowance of $132 and $0, respectively | 10,599 | 4,113 |
Total assets | 925,811 | 778,536 |
Current liabilities | ||
Accounts payable | 3,213 | 2,576 |
Accrued expenses and other liabilities | 49,895 | 63,796 |
Due to employees | 32,203 | 26,703 |
Deferred compensation due to employees | 5,900 | 5,364 |
Taxes payable | 25,008 | 29,472 |
Total current liabilities | 116,219 | 127,911 |
Long-term debt | 25,048 | 35,000 |
Other long-term liabilities | 3,132 | 2,402 |
Total liabilities | 144,399 | 165,313 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value; 160,000,000 authorized; 51,117,422 and 50,177,044 shares issued, 51,097,687 and 50,166,537 shares outstanding at December 31, 2016 and December 31, 2015, respectively | 50 | 49 |
Additional paid-in capital | 374,907 | 303,363 |
Retained earnings | 444,320 | 345,054 |
Treasury stock | (177) | (93) |
Accumulated other comprehensive loss | (37,688) | (35,150) |
Total stockholders’ equity | 781,412 | 613,223 |
Total liabilities and stockholders’ equity | $ 925,811 | $ 778,536 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Accounts receivable allowance | $ 1,434 | $ 1,729 |
Prepaid and other assets allowance | 644 | 0 |
Employee loans current allowance | 0 | 0 |
Noncurrent assets | ||
Employee loans long-term allowance | 0 | 0 |
Other long-term assets allowance | $ 132 | $ 0 |
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 51,117,422 | 50,177,044 |
Common stock, shares outstanding | 51,097,687 | 50,166,537 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Income Statement [Abstract] | |||||
Revenues | $ 1,160,132 | $ 914,128 | $ 730,027 | ||
Operating expenses: | |||||
Cost of revenues (exclusive of depreciation and amortization) | 737,186 | 566,913 | 456,530 | ||
Selling, general and administrative expenses | 264,658 | 222,759 | 163,666 | ||
Depreciation and amortization expense | 23,387 | 17,395 | 17,483 | ||
Goodwill impairment loss | 0 | 0 | 2,241 | ||
Other operating expenses, net | 1,205 | 1,094 | 3,924 | ||
Income from operations | 133,696 | 105,967 | 86,183 | ||
Interest and other income, net | 4,848 | 4,731 | 4,769 | ||
Change in fair value of contingent consideration | 0 | 0 | (1,924) | ||
Foreign exchange loss | (12,078) | (4,628) | (2,075) | ||
Income before provision for income taxes | 126,466 | 106,070 | 86,953 | ||
Provision for income taxes | 27,200 | 21,614 | 17,312 | ||
Net income | 99,266 | 84,456 | 69,641 | ||
Foreign currency translation adjustments | (2,538) | (13,096) | (20,251) | ||
Comprehensive income | $ 96,728 | $ 71,360 | $ 49,390 | ||
Net income per share: | |||||
Basic (in dollars per share) | $ 1.97 | [1] | $ 1.73 | [1] | $ 1.48 |
Diluted (in dollars per share) | $ 1.87 | [1] | $ 1.62 | [1] | $ 1.40 |
Shares used in calculation of net income per share: | |||||
Basic (in shares) | 50,309 | 48,721 | 47,189 | ||
Diluted (in shares) | 53,215 | 51,986 | 49,734 | ||
[1] | (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 CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Restricted Stock Units (RSUs) | Common Stock | Common StockRestricted Stock2012 Directors Plan | Common StockRestricted Stock Units (RSUs) | Additional Paid-in Capital | Additional Paid-in CapitalRestricted Stock Units (RSUs) | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss)/ Income |
Balance, beginning of period (in shares) at Dec. 31, 2013 | 46,614,916 | |||||||||
Balance, beginning of period at Dec. 31, 2013 | $ 376,101 | $ 46 | $ 195,585 | $ 190,986 | $ (8,684) | $ (1,832) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock issued in connection with acquisition (Note 3) | (2,788) | (2,076) | (4,864) | |||||||
Stock issued in connection with acquisition (Note 3) (in shares) | 534,534 | |||||||||
Forfeiture of stock issued in connection with acquisition | 223 | (223) | ||||||||
Forfeiture of stock issued in connection with acquisition (in shares) | (24,474) | |||||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | ||||||||||
Proceeds from stock option exercises | 10,598 | $ 2 | 10,596 | |||||||
Proceeds from stock options exercises (in shares) | 1,171,097 | |||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract] | ||||||||||
Restricted stock issued (in shares) | 7,738 | |||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures [Abstract] | ||||||||||
Stock-based compensation expense | 21,397 | 21,397 | ||||||||
Excess tax benefits | 3,776 | 3,776 | ||||||||
Prior periods retained earnings adjustment | (29) | 29 | ||||||||
Foreign currency translation adjustment | (20,251) | (20,251) | ||||||||
Net income | 69,641 | 69,641 | ||||||||
Balance, end of period (in shares) at Dec. 31, 2014 | 48,303,811 | |||||||||
Balance, end of period at Dec. 31, 2014 | 464,050 | $ 48 | 229,501 | 260,598 | (4,043) | (22,054) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock issued in connection with acquisition (Note 3) | (5,081) | (1,118) | (3,963) | |||||||
Stock issued in connection with acquisition (Note 3) (in shares) | 435,462 | |||||||||
Forfeiture of stock issued in connection with acquisition | 13 | (13) | ||||||||
Forfeiture of stock issued in connection with acquisition (in shares) | (1,482) | |||||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | ||||||||||
Proceeds from stock option exercises | 20,675 | $ 1 | 20,674 | |||||||
Proceeds from stock options exercises (in shares) | 1,405,826 | |||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract] | ||||||||||
Restricted stock issued (in shares) | 5,295 | 17,625 | ||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures [Abstract] | ||||||||||
Restricted stock issued | $ 574 | $ 574 | ||||||||
Stock-based compensation expense | 43,120 | 43,120 | ||||||||
Excess tax benefits | 8,363 | 8,363 | ||||||||
Foreign currency translation adjustment | (13,096) | (13,096) | ||||||||
Net income | 84,456 | 84,456 | ||||||||
Balance, end of period (in shares) at Dec. 31, 2015 | 50,166,537 | |||||||||
Balance, end of period at Dec. 31, 2015 | 613,223 | $ 49 | 303,363 | 345,054 | (93) | (35,150) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Forfeiture of stock issued in connection with acquisition | 84 | (84) | ||||||||
Forfeiture of stock issued in connection with acquisition (in shares) | (9,228) | |||||||||
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | ||||||||||
Proceeds from stock option exercises | 18,028 | $ 1 | 18,027 | |||||||
Proceeds from stock options exercises (in shares) | 895,804 | |||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract] | ||||||||||
Restricted stock issued (in shares) | 6,510 | |||||||||
Restricted stock units issued, net of shares withheld for taxes (in shares) | 38,064 | |||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures [Abstract] | ||||||||||
Restricted stock units vested, net of shares withheld for taxes | 2,069 | $ 2,069 | ||||||||
Stock-based compensation expense | 46,100 | 46,100 | ||||||||
Excess tax benefits | 5,264 | 5,264 | ||||||||
Foreign currency translation adjustment | (2,538) | (2,538) | ||||||||
Net income | 99,266 | 99,266 | ||||||||
Balance, end of period (in shares) at Dec. 31, 2016 | 51,097,687 | |||||||||
Balance, end of period at Dec. 31, 2016 | $ 781,412 | $ 50 | $ 374,907 | $ 444,320 | $ (177) | $ (37,688) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 99,266 | $ 84,456 | $ 69,641 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 23,387 | 17,395 | 17,483 |
Bad debt expense | 1,539 | 1,407 | 817 |
Deferred taxes | (3,304) | (15,328) | (3,270) |
Stock-based compensation expense | 49,244 | 45,833 | 24,620 |
Impairment charges and acquisition related adjustments | 0 | (1,183) | 7,907 |
Excess tax benefit on stock-based compensation plans | (5,264) | (8,363) | (3,776) |
Other | 6,228 | 3,883 | 735 |
(Increase)/decrease in operating assets: | |||
Accounts receivable | (30,612) | (47,694) | (30,410) |
Unbilled revenues | 34,777 | (38,076) | (11,134) |
Prepaid expenses and other assets | (4,791) | (574) | 565 |
Increase/(decrease) in operating liabilities: | |||
Accounts payable | 741 | (2,781) | (2,603) |
Accrued expenses and other liabilities | (13,926) | 25,694 | 9,978 |
Due to employees | 5,261 | 2,752 | 7,453 |
Taxes payable | 2,271 | 8,972 | 16,868 |
Net cash provided by operating activities | 164,817 | 76,393 | 104,874 |
Cash flows used in investing activities: | |||
Purchases of property and equipment | (29,317) | (13,272) | (11,916) |
Payment for construction of corporate facilities | 0 | (4,692) | (3,924) |
Employee housing loans issued | (2,006) | (2,054) | (1,740) |
Proceeds from repayments of employee housing loans | 2,177 | 2,249 | 1,793 |
(Increase)/decrease in restricted cash and time deposits, net | 29,595 | (29,944) | 1,430 |
Increase in other long-term assets, net | (4,327) | (708) | (1,479) |
Acquisition of businesses, net of cash acquired (Note 3) | (5,500) | (76,908) | (37,093) |
Other investing activities, net | 56 | (165) | 0 |
Net cash used in investing activities | (9,322) | (125,494) | (52,929) |
Cash flows from financing activities: | |||
Proceeds related to stock options exercises | 17,996 | 20,675 | 10,571 |
Excess tax benefit on stock-based compensation plans | 5,264 | 8,363 | 3,776 |
Payments of withholding taxes related to net share settlements of restricted stock units | (539) | 0 | 0 |
Proceeds from debt (Note 13) | 20,000 | 35,000 | 0 |
Repayment of debt (Note 13) | (30,129) | 0 | 0 |
Proceeds from government grants | 135 | 0 | 0 |
Acquisition of businesses, deferred consideration (Note 3) | (2,260) | (30,274) | (4,000) |
Net cash provided by financing activities | 10,467 | 33,764 | 10,347 |
Effect of exchange rate changes on cash and cash equivalents | (3,386) | (5,748) | (10,965) |
Net increase/(decrease) in cash and cash equivalents | 162,576 | (21,085) | 51,327 |
Cash and cash equivalents, beginning of period | 199,449 | 220,534 | 169,207 |
Cash and cash equivalents, end of period | 362,025 | 199,449 | 220,534 |
Supplemental disclosures of cash flow information: | |||
Income taxes | 37,488 | 25,071 | 11,756 |
Bank interest | 566 | 124 | 7 |
Supplemental disclosure of non-cash operating activities | |||
Goodwill impairment loss | 0 | 0 | 2,241 |
Contingent consideration fair value adjustment | 0 | 0 | 1,924 |
Write off related to the construction of a building in Minsk, Belarus | 0 | 0 | 3,742 |
Prepaid and other current assets write-off related to vendor advance | 0 | 741 | 0 |
Supplemental disclosure of non-cash investing and financing activities | |||
Deferred consideration payable | 0 | 603 | 1,022 |
Contingent consideration payable | $ 0 | $ 0 | $ 36,322 |
NATURE OF BUSINESS AND SIGNIFIC
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES EPAM is a leading global provider of software product development and digital platform engineering services to clients located around the world, primarily in North America, Europe, Asia and Australia. The Company has expertise in various industries, including software and hi-tech, financial services, media and entertainment, travel and hospitality, retail and distribution and life sciences and healthcare. The Company is incorporated in Delaware with headquarters in Newtown, PA. 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 — 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 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. Reclassification — During the first quarter of 2016, the Company revised the classification of certain health insurance premium and other employee fringe benefit expenses between the cost of revenues and selling, general and administrative expenses line items on the statements of income and comprehensive income. The effect of this reclassification had no impact on total income from operations for the year ended December 31, 2016 . Revenue Recognition — The Company recognizes revenue when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the sales price is fixed or determinable; and (4) 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 reported. 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. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. If there is an uncertainty about the project completion or receipt of payment for the services, revenue is deferred until the uncertainty is sufficiently resolved. At the time revenue is recognized, the Company provides for any contractual deductions and reduces the revenue accordingly. The Company defers amounts billed to its clients for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. Unbilled revenue is recorded when services have been provided but billed subsequent to the period end in accordance with the contract terms. The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. The majority of the Company’s revenues ( 88.2% of revenues in 2016 , 85.8% in 2015 and 84.7% in 2014 ) are generated under time-and-material contracts where revenues are recognized as services are performed with the corresponding cost of providing those services reflected as cost of revenues. The majority of such revenues are billed on an hourly, daily or monthly basis as actual time is incurred on the client. Revenues from fixed-price contracts ( 10.4% of revenues in 2016 , 12.8% in 2015 and 13.6% in 2014 ) are primarily determined using the proportional performance method. In instances where final acceptance of the product, system, or solution is specified by the client, and the acceptance criteria are not objectively determinable to have been met as the services are provided, 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, 2016 , 2015 and 2014 . The Company’s fixed price contracts are generally recognized over a period of 12 months or less. Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries and bonuses of the revenue producing personnel, as well as employee benefits, stock-based compensation expense and travel costs for these professionals. Selling, General and Administrative Expenses — Consist mainly of compensation, benefits and travel expenses of the officers, management, sales, marketing and administrative personnel. Other operating expenses included in selling, general and administrative expenses are advertising, promotional activities, legal and audit expenses, recruitment and development efforts, insurance, and operating lease expenses. In addition, the Company has issued stock to the sellers and/or personnel in connection with business acquisitions and has been recognizing stock-based compensation expense in the periods after the closing of these acquisitions as part of the selling, general and administrative expenses. Stock option expenses related to acquisitions comprised a significant portion of total selling, general and administrative stock-based compensation expense in 2016 and 2015 . Fair Value of Financial Instruments — The Company makes assumptions about fair values of its financial assets and liabilities in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurement,” and utilizes the following fair value hierarchy in determining inputs used for valuation: 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 management’s 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 sheets 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, option pricing models and other relevant valuation models. To the extent possible, observable market data is used as inputs into these models but when it is not feasible, a degree of judgment is required to establish fair values. The Company’s contingent liabilities measured at fair value on a recurring basis are comprised of performance-based awards issued to certain former owners of acquired businesses in exchange for future services and cash-settled restricted stock units issued to employees. During a performance measurement period, performance-based awards are valued using significant inputs that are not observable in the market, which are defined as Level 3 inputs according to fair value measurement accounting. The Company estimates the fair value of contingent liabilities based on certain performance milestones of the acquired businesses and estimated probabilities of achievement, then discounts the liabilities to present value using the Company’s cost of debt for the cash component of contingent consideration, and a risk free rate for the stock component of a contractual contingency. The Company believes its estimates and assumptions are reasonable, however, there is significant judgment involved. Changes in the fair value of contingent consideration liabilities primarily result from changes in the timing and amount of specific milestone estimates and changes in probability assumptions with respect to the likelihood of achieving the various earnout criteria. Cash-settled restricted stock units issued to employees are valued using the price of the Company’s stock, a significant input that is observable in the market, which is defined as Level 1 input according to fair value measurement accounting. Changes in the fair value of these liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 17 “Fair Value Measurements.” Employee Loans — The Company issues employee housing loans in Belarus, relocation loans to assist employees with relocation needs in connection with intra-company transfers and loans for the purchase of automobiles in India. There are no loans issued to principal officers, directors, and their affiliates. 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. On a quarterly basis, the Company reviews the aging of its loan portfolio and evaluates the ability of employees to repay their debt on schedule. Factors considered in the review include historical payment experience, reasons for payment delays and shortfalls, if any, as well as probability of collecting scheduled principal and interest payments. Since the initiation of the loan program there have not been material past due or non-accrual employee loans or write-offs related to loan losses and, therefore, the Company determined that no allowance for loan losses is required. Employee Housing Loans — The Employee Housing Program (the “Housing Program”) provides employees with loans to purchase housing in Belarus. The housing loans are measured using the Level 3 inputs within the fair value hierarchy because they are valued using significant unobservable inputs. These housing loans are measured at fair value upon initial recognition through the market approach under ASC Topic 820, “Fair Value Measurement” and subsequently carried at amortized cost less allowance for loan losses, if any. Any difference between the carrying value and the fair value of a loan upon initial recognition is charged to expense. Other Employee Loans — The Company issues short-term, non-interest bearing relocation loans to employees who have relocated within the company. In addition, the Company has in the past issued and may issue in the future a small number of interest bearing loans to employees for the purchase of automobiles. Such loans are issued to qualified employees with certain conditions attached. Due to the short term duration of these employee loans and high certainty of repayment, their carrying amount is a reasonable estimate of their fair value. Business Combinations — 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 in accordance with the FASB ASC Topic 805, “Business Combinations.” The Company identifies and attributes fair values and estimated lives to the intangible assets acquired and allocates the total cost of an acquisition to the underlying net assets based on their respective estimated fair values. 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. There are 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. All acquisition-related costs, other than the costs to issue debt or equity securities, are accounted for as expenses in the period in which they are incurred. Changes in fair value of contingent consideration arrangements that are not measurement period adjustments are recognized in earnings. Payments to settle contingent consideration, if any, are reflected in cash flows from financing activities and the changes in fair value are reflected in cash flows from operating activities in the Company’s consolidated statements of cash flows. The acquired assets typically consist of customer relationships, trade names, non-competition agreements, and workforce and as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. 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, 2016 and 2015 the Company had no cash equivalents. Restricted Cash — Restricted cash represents cash that is restricted by agreements with third parties for special purposes or is subject to other limiting conditions. See Note 7 for items that constitute restricted cash. Accounts Receivable — Accounts receivable are stated net of an allowance for doubtful accounts. Outstanding accounts receivable are reviewed periodically and allowances are provided at such time management believes it is probable that such balances will not be collected within a reasonable time. 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. Accounts receivable are generally written off when they are deemed uncollectible. Bad debts are recorded based on historical experience and management’s evaluation of accounts receivable. 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 two to fifty 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. Goodwill and Other Intangible Assets — Goodwill and intangible assets that have indefinite useful lives are treated consistently with FASB ASC 350, “Intangibles — Goodwill and Other.” The Company does not have any intangible assets with indefinite useful lives. The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31 st , and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is a reportable segment or one level below. The Company initially performs a qualitative assessment of goodwill to test for impairment indicators. After applying the qualitative assessment, if the entity concludes that it is not more likely than not that the fair value of goodwill is less than the carrying amount; the two-step goodwill impairment test is not required. If the Company determines that it is more likely than not that the carrying amount exceeds the fair value, the Company performs a quantitative impairment test. If an indicator of impairment is identified, 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 the 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. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. 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 future cash flows 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, and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and exceeds the asset’s fair value. When the carrying value of an asset is more than the sum of the undiscounted cash flows that are expected to result from the asset’s use and eventual disposition, it is considered to be unrecoverable. Therefore, when an asset’s carrying value will not be recovered and it is more than its fair value, the Company would deem the asset to be impaired. Property and equipment held for disposal are carried at the lower of the current carrying value or fair value less estimated costs to sell. The Company did not incur any impairment of long-lived assets for the years ended December 31, 2016 and 2015 . The Company wrote off $1,149 related to the building construction in Minsk, Belarus against allowance for losses in the year ended December 31, 2014 . 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 11 to the consolidated financial statements for further information. Earnings per Share (“EPS”) — Basic EPS is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Stock-Based Compensation — The Company recognizes the cost of its stock-based incentive awards based on the fair value of the award at the date of grant net of estimated forfeitures. Stock-based compensation cost is recognized as expense on a straight-line basis over the requisite service period. The service period is the period over which the employee performs the related services, which is normally the same as the vesting period. Over time, the forfeiture assumption is adjusted to the actual forfeiture rate and such change may affect the timing of the total amount of expense recognized over the vesting period. Equity-based awards that do not require future service are expensed immediately. Equity-based awards that do not meet the criteria for equity classification are recorded as liabilities and adjusted to fair value at the end of each reporting period. Off-Balance Sheet Financial Instruments — The Company uses the FASB ASC Topic 825, “Financial Instruments.” to identify and disclose off-balance sheet financial instruments, which include credit instruments, such as commitments to make employee loans and related guarantees, standby letters of credit and certain 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. Loss contingencies arising from off-balance sheet financial instruments 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 such matters exist that would have a material effect on the 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. Transaction gains and losses are included in the period in which they occur. Risks and Uncertainties — As a result of its global operations, the Company may be subject to certain inherent risks. Concentration of Credit — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, trade accounts receivable and unbilled revenues. The Company maintains cash and cash equivalents and short-term deposits with financial institutions. The Company determined that the Company’s credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. As of December 31, 2016 , $194.6 million of total cash, including time deposits and restricted cash, was held in CIS countries, with $153.8 million of that total in Belarus. Banking and other financial systems in the CIS region are less developed and regulated than in some more developed markets, and bank deposits made by corporate entities in the CIS region are not insured. Changes in the market behavior or decisions of the Company’s clients could adversely affect the Company’s results of operations. During the years ended December 31, 2016 , 2015 and 2014 , revenues from our top five customers were $327,092 , $298,063 and $239,396 , respectively, representing 28.2% , 32.6% and 32.8% , respectively, of total revenues in the corresponding periods. Revenues from our top ten customers were $442,253 , $400,250 and $320,126 in 2016 , 2015 and 2014 , respectively, representing 38.1% , 43.8% and 43.9% , respectively, of total revenues in corresponding periods. Foreign currency risk — The Company’s global operations are conducted predominantly in U.S. dollars. Other than U.S. dollars, the Company generates a significant portion of revenues in various currencies, principally, euros, British pounds sterling, Canadian dollars, Swiss francs and Russian rubles and incurs expenditures principally in Hungarian forints, Russian rubles, Polish zlotys, Swiss francs, British pounds sterling, Indian rupees and China yuan renminbi (“CNY”) associated with its delivery centers. The Company’s international operations expose it to foreign currency exchange rate changes that could impact translations of foreign denominated assets and liabilities into U.S. dollars and future earnings and cash flows from transactions denominated in different currencies. The Company is exposed to fluctuations in foreign currency exchange rates primarily related to accounts receivable and unbilled revenues from sales in foreign currencies and cash outflows for expenditures in foreign currencies. The Company’s results of operations, primarily revenues and expenses denominated in foreign currencies, can be affected if any of the currencies, which we use materially in our business, appreciate or depreciate against the U.S. dollar. Interest rate risk — The Company’s exposure to market risk is influenced primarily by changes in interest rates on interest payments received on cash and cash equivalent deposits and paid on any outstanding balance on the Company’s revolving line of credit, which is subject to a variety of rates depending on the type and timing of funds borrowed (Note 13 ). The Company does not use derivative financial instruments to hedge the risk of interest rate volatility. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards Unless otherwise discussed below, the adoption of new accounting standards did not have an impact on the Company’s consolidated financial position, results of operations, and cash flows. Balance Sheet Classification of Deferred Taxes — Effective April 1, 2016, the Company adopted Accounting Standard Update (“ASU”) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which resulted in the reclassification of current deferred tax assets and current deferred tax liabilities to non-current deferred tax assets and non-current deferred tax liabilities on its condensed consolidated balance sheets. No prior periods were retrospectively adjusted. See Note 11. Simplifying the Accounting for Measurement-Period Adjustments — Effective January 1, 2016, the Company adopted the amended guidance of Accounting Standards Codification (“ASC”) Topic 805, Business Combinations , which simplifies the accounting for adjustments made to provisional amounts recognized in a business combination. The amended guidance requires an acquirer to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustment amounts are determined. The adoption of this amended guidance did not have a significant impact on the Company’s financial results. Presentation of Debt Issuance Costs — In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Previously, debt issuance costs were recognized as deferred charges and recorded as other assets. In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 allows an entity to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The guidance was effective January 1, 2016. The Company early adopted the standards effective December 31, 2015 and elected to continue to classify debt issuance costs associated with its revolving line of credit in other assets. Although the impact of applying these standards to its existing revolving facility has been immaterial, the standards could have a significant impact on the accounting for future borrowings. Pending Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that the Company will adopt according to the various timetables the FASB specifies. Unless otherwise discussed below, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. Stock-Based Compensation — Effective January 1, 2017, the Company will be required to adopt the various amendments in ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The provisions of the new guidance affecting the Company require excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled; remove the requirement to include hypothetical excess tax benefits in the application of the treasury stock method when computing earnings per share; and provided for a new policy election to either: (1) continue applying forfeiture rate estimates in the determination of compensation cost, or (2) account for forfeitures as a reduction of share-based compensation cost as they occur. The new guidance also requires cash flows related to excess tax benefits to be classified as an operating activity in the cash flow statement and now requires shares withheld for tax withholding purposes to be classified as a financing activity. While the Company is still evaluating the impact of adoption of the new guidance, it believes the new standard will cause volatility in its effective tax rates as well as basic and diluted earnings per share due to the tax effects related to share-based payments being recorded to the income statement (rather than equity.) The volatility in future periods will depend on the Company’s stock price at the awards’ vesting dates, geographical mix and tax rates in applicable jurisdictions, as well as the number of awards that vest in each period. The Company will adopt provisions related to recognition of excess tax benefits and tax deficiencies in income on a prospective basis and is in the process of evaluating transition alternatives for various other provisions of the new guidance. The Company will not change its accounting policy and will continue to estimate forfeitures in the determination of its compensation cost. In addition, cash flows related to excess tax benefits will be included in cash provided by operating activities and will no longer be separately classified as a financing activity. Further, consistent with historical presentation, the Company will continue to classify shares withheld for tax withholding purposes as a financing activity. Simplifying the Measurement for Goodwill — Effective January 1, 2017, the Company will early adopt the new accounting guidance simplifying the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance will be applied prospectively. The Company does not expect the adoption of this amended guidance to have an impact on its financial results. Revenue Recognition — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP and permits the use of either the retrospective or modified retrospective transition method. The update requires significant additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09, as amended by ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , is effective for years beginning after December 15, 2017, including interim periods, with early adoption permitted for years beginning after December 15, 2016. Since the issuance of ASU 2014-09, the FASB has issued additional interpretive guidance, including new accounting standards updates, that clarify certain points of the standard and modify certain requirements. The Company has performed a review of the requirements of the new revenue standard and is monitoring the activity of the FASB and the transition resource group as it relates to specific interpretive guidance. It is reviewing customer contracts and is in the process of applying the five-step model of the new standard to each contract category it has identified and will compare the results to its current accounting practices. The Company plans to adopt ASU 2014-09, as well as other clarifications and technical guidance issued by the FASB related to this new revenue standard, on January 1, 2018. The Company expects the new standard could change the amount and timing of revenue and costs under certain arrangement types. The Company is also assessing pricing provisions contained in certain of its customer contracts. Pricing provisions contained in some of its customer contracts represent variable consideration or may provide the customer with a material right, potentially resulting in a different allocation of the transaction price than under current guidance. Due to the complexity of certain of the Company’s contracts, the actual revenue recognition treatment required under the new standard for these arrangements may be dependent on contract-specific terms and may vary in some instances. The Company has not yet determined what impact the new guidance will have on its consolidated financial statements and/or related disclosures or concluded on the transition method. The Company expects to further its assessment of the financial impact of the new guidance on its consolidated financial statements in 2017. Leases — Effective January 1, 2019, the Company will be required to adopt the new guidance of ASC Topic 842, Leases (with early adoption permitted effective January 1, 2018.) This amendment supersedes previous accounting guidance (Topic 840) and requires all leases, with the exception of leases with a term of twelve months or less, to be recorded on the balance sheet as lease assets and lease liabilities. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The transition guidance in Topic 842 also provides specific guidance for the amounts previously recognized in accordance with the business combinations guidance for leases. The Company has not yet completed its assessment of the impact of the new guidance on its consolidated financial statements, when it will adopt the standard, or concluded on whether it will elect to apply practical expedients. Measurement of Credit Losses on Financial Instruments — Effective January 1, 2020, the Company will be required to adopt the amended guidance of ASC Topic 326, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial instruments , (with early adoption permitted effective January 1, 2019.) The amendments in this update change how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including trade receivables) that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. Entities are required to adopt the standard using a modified-retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The Company has not yet completed its assessment of the impact of the new guidance on its consolidated financial statements or concluded on when it will adopt the standard. Tax Accounting for Intra-Entity Asset Transfers — Effective January 1, 2018, with early adoption permitted, the Company will be required to adopt the accounting guidance ASU 2016-16, Accounting for Income taxes: Inter-Entity Asset Transfers of Assets Other than Inventory, that will require the tax effects of intra-entity asset transfers to be recognized in the period when the transfer occurs. Under current guidance, the tax effects of intra-entity sales of assets are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The new guidance does not apply to intra-entity transfers of inventory and is required to be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The Company has not yet completed its assessment of the impact of the new guidance on its consolidated financial statements or concluded on when it will adopt the standard. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS The Company’s acquisitions allow it to expand into desirable geographic locations, complement its existing vertical markets, increase revenue and create new service offerings. Acquisitions were settled in cash and/or stock where a portion of the settlement price may have been deferred. For some transactions, purchase agreements contain contingent consideration in the form of an earnout obligation. 2015 Acquisitions NavigationArts — On July 10, 2015, the Company acquired all of the outstanding equity of NavigationArts, Inc. and its subsidiary, NavigationArts, LLC (collectively “NavigationArts”). The U.S.-based NavigationArts provided digital consulting, architecture and content solutions and was regarded as a leading user-experience agency. The acquisition of NavigationArts added approximately 90 design consultants to the Company’s headcount. In connection with the NavigationArts acquisition the Company paid $28,747 as cash consideration, of which $2,670 was placed in escrow for a period of 18 months as security for the indemnification obligations of the sellers under the terms of the stock purchase agreement. In the first quarter of 2016, the Company decided to make a 338(h)(10) election to treat the NavigationArts acquisition as an asset purchase for tax purposes. As a result, during the second quarter of 2016 the Company paid an additional $1,797 to the sellers of NavigationArts, as provided for in the stock purchase agreement. The acquired goodwill that is deductible for tax purposes was $23,794 as of the date of the acquisition. AGS — On November 16, 2015, the Company acquired all of the outstanding equity of Alliance Consulting Global Holdings, Inc including its wholly-owned direct and indirect subsidiaries Alliance Global Services, Inc., Alliance Global Services, LLC, companies organized under the laws of the U.S., and Alliance Global Services IT India, a company organized under the laws of India (collectively, “AGS”). AGS provided software product development services and test automation solutions and had multiple locations in the United States and India. The acquisition of AGS added 1,151 IT professionals to the Company’s headcount in the United States and India. In connection with the AGS acquisition the Company paid $51,717 as cash consideration, of which $5,000 was placed in escrow for a period of 15 months as security for the indemnification obligations of the sellers under the terms of the stock purchase agreement. The following is a summary of the estimated fair values of the net assets acquired at the date of each respective acquisition as originally reported during the year 2015 and at December 31, 2016 : NavigationArts AGS Total As Originally Reported Final as of September 30, 2016 As Originally Reported Final as of December 31, 2016 As Originally Reported Final as of Cash and cash equivalents $ 1,317 $ 1,317 $ 1,727 $ 1,727 $ 3,044 $ 3,044 Accounts receivable and other current assets 3,920 3,920 10,600 9,934 14,520 13,854 Property and equipment and other long-term assets 230 230 1,665 1,600 1,895 1,830 Deferred tax assets — — 4,996 5,722 4,996 5,722 Acquired intangible assets 1,500 2,800 10,000 22,700 11,500 25,500 Goodwill 23,822 23,794 33,815 24,454 57,637 48,248 Total assets acquired 30,789 32,061 62,803 66,137 93,592 98,198 Accounts payable and accrued expenses 871 871 3,087 2,760 3,958 3,631 Bank loans and other long-term liabilities — — — 295 — 295 Deferred revenue 50 50 1,049 1,049 1,099 1,099 Due to employees 596 596 3,010 2,342 3,606 2,938 Deferred tax liabilities 525 — 3,800 7,974 4,325 7,974 Total liabilities assumed 2,042 1,517 10,946 14,420 12,988 15,937 Net assets acquired $ 28,747 $ 30,544 $ 51,857 $ 51,717 $ 80,604 $ 82,261 As of December 31, 2016 , and during the period since the date of each respective acquisition up through December 31, 2016 , or the date purchase accounting was finalized, as applicable, the Company made updates to the initially reported acquired balances and has finalized the valuation of the balances of NavigationArts and AGS. For NavigationArts, finalization of the purchase price allocation included adjustments to intangible assets to reflect the results of a final valuation report as well as certain adjustments made to goodwill and deferred tax liabilities as a result of the 338(h)(10) election to treat the NavigationArts acquisition as an asset purchase for tax purposes, increasing net assets acquired by $1,797 . For AGS the Company made adjustments to goodwill, intangible assets, deferred taxes and working capital, resulting in a decrease of $140 to the net assets acquired, as well as reclassified certain liabilities out of accrued expenses into a separate category. The adjustments identified above did not significantly impact our previously reported net income of prior periods and, as such, prior period amounts have not been retrospectively adjusted. The following table presents the estimated fair values and useful lives of intangible assets acquired during the year ended December 31, 2015 : NavigationArts AGS Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 10 $ 2,800 10 $ 22,700 Total $ 2,800 $ 22,700 2014 Acquisitions The following table discloses details of purchase price consideration of each of the 2014 acquisitions: Name of Acquisition Effective Date of Acquisition Common Shares Fair Value of Common Shares Cash, Net of Working Capital and Other Adjustments Recorded Earnout Payable Total Recorded Purchase Price Maximum Potential Earnout Payable Issued Deferred Issued Deferred Paid Deferred Cash Stock (in shares) (in thousands) Netsoft March 5, 2014 — — $ — $ — $ 2,403 $ 1,022 $ 1,825 $ — $ 5,250 $ 1,825 Jointech April 30, 2014 — 89,552 — 2,788 10,000 4,000 15,000 5,000 36,788 20,000 GGA* June 6, 2014 — — — — 14,892 — 11,400 — 26,292 Great Fridays October 31, 2014 — — — — 10,777 — 1,173 — 11,950 1,173 — 89,552 $ — $ 2,788 $ 38,072 $ 5,022 $ 29,398 $ 5,000 $ 80,280 * Earn-out for GGA had no maximum limit. The determination period ended as of December 31, 2014. Common shares issued in connection with acquisitions, if applicable, are valued at closing market prices as of the effective date of the applicable acquisition. The maximum potential earnout payables disclosed in the foregoing table represent the maximum amount of additional consideration that could be paid pursuant to the terms of the purchase agreement for the applicable acquisition. The amounts recorded as earnout payables, which are based upon the estimated future operating results of the acquired businesses within a seven -to- twelve -month period subsequent to the acquisition date, are measured at fair value as of the acquisition date and are included on that basis in the recorded purchase price consideration in the foregoing table. The Company records any subsequent changes in the fair value of the earnout obligations in its consolidated income from operations. Please see Note 17 for discussion of significant inputs and assumptions relating to the earnout obligations. All earnout obligations for these acquisitions have been settled. Netsoft — On March 5, 2014, the Company completed an acquisition of substantially all of the assets and assumed certain specific liabilities of U.S.-based healthcare technology consulting firm Netsoft Holdings LLC and Armenia-based Ozsoft, LLC (collectively, “Netsoft”). As a result of this transaction, substantially all of the employees of Netsoft, including approximately 40 IT professionals, accepted employment with the Company. In connection with the Netsoft acquisition, the Company agreed to issue 2,289 restricted shares of Company common stock as consideration for future services to key management and employees of Netsoft (the “Netsoft Closing Shares”). The Company agreed to pay deferred consideration consisting partly of 9,154 restricted shares of Company common stock. During the first quarter of 2015, the Company issued 16,349 restricted shares of Company common stock to Netsoft for achieving certain performance targets (collectively with the Netsoft Closing Shares, the “Netsoft Employment Shares”). The Netsoft Employment Shares vest in equal annual installments over a three -year period starting from the date of acquisition. All unvested shares will be forfeited upon termination of services by the Company for cause or by the employee other than for good reason. The Netsoft Employment Shares had an estimated value of $1,017 at the time of grant and were recorded as stock-based compensation expense over an associated service period of three years (Note 14 ). The acquired goodwill that is deductible for tax purposes was $924 as of the date of the acquisition: this amount excludes additional tax deductible amounts resulting from vesting of the employment shares. Jointech — On April 30, 2014, the Company acquired all of the outstanding equity of Joint Technology Development Limited, a company organized under the laws of Hong Kong, including its wholly-owned subsidiaries Jointech Software (Shenzhen) Co., Ltd., a company organized under the laws of China, and Jointech Software Pte. Ltd., a company organized under the laws of Singapore (collectively, “Jointech”). Jointech provides strategic technology services to multi-national organizations in investment banking, wealth and asset management. As a result of this transaction, substantially all employees of Jointech, including approximately 216 IT professionals, accepted employment with the Company. In connection with the Jointech acquisition, the Company issued 89,552 shares of the Company common stock to a former owner of Jointech as consideration for future services on or about the six-month anniversary from the date of acquisition (the “Jointech Closing Shares”). Furthermore, during the second quarter of 2015, the Company issued 83,057 restricted shares of Company common stock to Jointech for achieving certain performance targets (collectively with the Jointech Closing Shares, the “Jointech Employment Shares”). The Jointech Employment Shares vest in equal annual installments over a three -year period starting from the date of acquisition. All unvested Jointech Employment Shares will be forfeited upon termination of services for cause by the Company or other than for good reason (as applicable) by either of the two former owners of the acquired business. The aggregate fair value of the Jointech Employment Shares at the date of grant was $7,788 and will be recorded as stock-based compensation expense over an associated service period of three years (Note 14 ). GGA — On June 6, 2014, the Company acquired substantially all of the assets and assumed certain specific liabilities of GGA Software Services, LLC, Institute of Theoretical Chemistry, Inc., and GGA’s Russian affiliate (collectively, “GGA”). Established in 1994, GGA develops scientific informatics applications and content databases; creates state-of-the-art algorithms and models; and delivers IT support, maintenance, and QA services to the world’s leading healthcare and life sciences companies. As a result of this transaction, substantially all employees of GGA, including approximately 329 IT professionals and 126 scientists, accepted employment with the Company. In connection with the GGA acquisition, the Company agreed to issue 262,277 shares of the Company common stock to the former owners of GGA as consideration for future services (the “GGA Closing Shares”). Furthermore, during the second quarter of 2015, the Company issued 233,753 restricted shares of Company common stock to the former owners of GGA for achieving certain performance targets (collectively with the GGA Closing Shares, the “GGA Employment Shares”). The GGA Employment Shares vest in equal annual installments over a three -year period starting from the date of acquisition. With respect to each former owner, all unvested shares will be forfeited upon either termination of services by the Company for cause or by the employee other than for good reason. The aggregate fair value of the GGA Employment Shares at the date of grant was $20,655 and will be recorded as stock-based expense over an associated service period of three years (Note 14 ). The acquired goodwill that is deductible for tax purposes was $7,306 as of the date of the acquisition; this amount excludes additional tax deductible amounts resulting from vesting of the employment shares. Great Fridays — On October 31, 2014, the Company acquired all of the outstanding equity of Great Fridays Limited and its subsidiaries with intent to expand the Company’s product and design service portfolio. Great Fridays Limited, headquartered in Manchester, UK, with offices in London, San Francisco and New York, focuses on bridging the gap between business and design. The acquisition of Great Fridays added approximately 50 creative design professionals to the Company’s headcount. In connection with the Great Fridays acquisition, the Company agreed to issue 90,864 shares of the Company common stock to the former owners of Great Fridays as consideration for future services (the “Great Fridays Closing Shares”). Furthermore, during the second quarter of 2015, subject to attainment of specified performance targets, the Company issued to the former owners of Great Fridays 10,092 shares of the Company common stock (collectively with Great Fridays Closing Shares, the “GF Employment Shares”). The GF Employment Shares vest in equal annual installments over a three -year period starting from the date of acquisition. With respect to each former owner, all unvested shares will be forfeited upon either termination of services by the Company for cause or by the employee other than for good reason. The aggregate fair value of the GF Employment Shares at the date of grant was $4,823 and will be recorded as stock-based compensation expense over an associated service period of three years (Note 14 ). The following is a summary of the estimated fair values of the net assets acquired at the date of each respective acquisition during the year ended December 31, 2014 as originally reported in the quarterly condensed consolidated financial statements and at December 31, 2015: Netsoft Jointech GGA Great Fridays Total As Originally Reported Final as of March 31, 2015 As Originally Reported Final as of June 30, 2015 As Originally Reported Final as of June 30, 2015 As Originally Reported Final as of December 31, 2015 As Originally Reported Final as of December 31, 2015 Cash and cash equivalents $ — $ — $ 871 $ 871 $ — $ — $ 259 $ 259 $ 1,130 $ 1,130 Trade receivables and other current assets 788 788 784 784 5,157 5,377 1,825 1,825 8,554 8,774 Property and equipment and other long-term assets 52 52 338 338 444 306 262 262 1,096 958 Deferred tax assets 351 — — — 4,463 — — — 4,814 — Acquired intangible assets 1,700 1,700 25,744 15,312 10,959 16,000 5,747 200 44,150 33,212 Goodwill 2,776 2,779 11,033 23,758 6,496 7,306 6,947 11,262 27,252 45,105 Total assets acquired 5,667 5,319 38,770 41,063 27,519 28,989 15,040 13,808 86,996 89,179 Accounts payable and accrued expenses 69 69 728 728 2,593 2,593 872 807 4,262 4,197 Deferred revenue — — — — — 104 317 317 317 421 Due to employees — — 1,254 1,254 — — 624 624 1,878 1,878 Deferred tax liabilities — — — 2,293 — — 1,200 110 1,200 2,403 Total liabilities assumed 69 69 1,982 4,275 2,593 2,697 3,013 1,858 7,657 8,899 Net assets acquired $ 5,598 $ 5,250 $ 36,788 $ 36,788 $ 24,926 $ 26,292 $ 12,027 $ 11,950 $ 79,339 $ 80,280 As of December 31, 2015 the fair values of the assets acquired and liabilities assumed and the related purchase price allocation for the 2014 acquisitions have been finalized. As of December 31, 2015, and during the period since the date of each respective acquisition up through December 31, 2015, or the date purchase accounting was finalized, as applicable, the Company made updates to the initially reported acquired balances and has finalized the valuation of the balances of Netsoft, Jointech, GGA and Great Fridays. For Netsoft, the deferred tax assets and goodwill were adjusted decreasing the net assets acquired by $348 . For Jointech, intangible assets were adjusted to reflect the final fair value of intangible assets acquired and a deferred tax liability was established, both increasing goodwill with no change to the net assets acquired. For GGA, the final working capital adjustment was completed, deferred tax assets were netted with additional recognized deferred tax liabilities and additional accounts receivable and deferred revenue were recognized. In addition, intangible assets and property and equipment were adjusted to reflect the final fair value of the assets acquired. These adjustments resulted in an overall increase to goodwill and increased the net assets acquired by $1,366 . For Great Fridays, the value of the intangible assets and associated deferred tax liabilities were reduced based on the final fair value estimates of acquired intangible assets, which increased goodwill. These adjustments resulted in a decrease in net assets acquired by $77 . The adjustments identified above did not significantly impact our previously reported net income of prior periods and, as such, prior period amounts have not been retrospectively adjusted. The following table presents the estimated fair values and useful lives of intangible assets acquired during the year ended December 31, 2014: Netsoft Jointech GGA Great Fridays Weighted Average Amount Weighted Average Amount Weighted Average Amount Weighted Average Amount Customer relationships 10 $ 1,700 10 $ 15,000 10 $ 16,000 3 $ 200 Trade names — — 2 312 — — — — Total $ 1,700 $ 15,312 $ 16,000 $ 200 As of December 31, 2016 , the companies acquired during 2015 and 2014 have been significantly integrated into the Company and as such, it is not possible to precisely report their individual post-acquisition results of operations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS - NET | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS - NET | GOODWILL AND INTANGIBLE ASSETS — NET Goodwill by reportable segment was as follows: North America Europe Total Balance as of January 1, 2015 $ 31,078 $ 26,339 $ 57,417 Acquisition of NavigationArts (Note 3) 23,822 — 23,822 Acquisition of AGS (Note 3) 33,815 — 33,815 Netsoft purchase accounting adjustment (Note 3) 30 — 30 Jointech purchase accounting adjustment (Note 3) — 6,181 6,181 GGA purchase accounting adjustment (Note 3) (4,807 ) — (4,807 ) Great Fridays purchase accounting adjustment (Note 3) — 4,315 4,315 NavigationArts purchase accounting adjustment (Note 3) (2,058 ) — (2,058 ) Effect of net foreign currency exchange rate changes (416 ) (2,369 ) (2,785 ) Balance as of December 31, 2015 81,464 34,466 115,930 NavigationArts purchase accounting adjustment (Note 3) 2,030 — 2,030 AGS purchase accounting adjustment (Note 3) (9,361 ) — (9,361 ) Other acquisitions 2,404 177 2,581 Other acquisitions purchase accounting adjustment 395 87 482 Effect of net foreign currency exchange rate changes (120 ) (2,253 ) (2,373 ) Balance as of December 31, 2016 $ 76,812 $ 32,477 $ 109,289 Excluded from the table above are the Russia and Other segments. The Company performed an annual goodwill impairment test as of October 31, 2014 in accordance with ASC No. 350, “Intangibles-Goodwill and Other.” In assessing impairment both qualitatively and quantitatively based on the total of the expected future discounted cash flows directly related to the Russia reporting unit, the Company determined that the fair value of 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 $2,241 in the Russia segment. As of December 31, 2016 and 2015 the book value of the goodwill related to the Russia segment was zero . All existing assets that related to the Russia segment, excluding goodwill, were assessed by management and deemed to not be impaired. 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 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 in the Other reportable segment. As of December 31, 2016 , and 2015 the book value of the goodwill related to the Other segment was zero . There were no accumulated impairments losses in the North America or Europe reportable segments as of December 31, 2016 , 2015 or 2014 . As part of the AGS and NavigationArts acquisitions in 2015, substantially all of the employees of these companies continued employment. The Company believes the amount of goodwill resulting from the allocation of the purchase price to acquire each of the businesses is attributable to the workforce of the acquired businesses. All of the goodwill was allocated to the Company’s U.S. operations and is presented within the North America segment. As part of the Jointech acquisition in 2014, substantially all of the employees of Jointech continued employment. The Company believes the amount of goodwill resulting from the allocation of purchase price to acquire Jointech is attributable to the workforce of the acquired business. Based on the determination of the reportable units, Jointech has been placed in the Europe reportable unit based on managerial responsibility and consistent with segment reporting. All of the goodwill was allocated to the Company’s UK operations and is presented within the Europe segment. As part of the Netsoft, GGA and Great Fridays acquisitions in 2014, substantially all of the employees of these companies accepted employment with the Company. The Company believes the amount of goodwill resulting from the allocation of purchase price to acquire each of the businesses is attributable to the workforce of the acquired businesses. All of the goodwill was allocated to the Company’s U.S. operations and is presented within North America. Intangible assets other than goodwill for the years ended December 31, 2016 and 2015 were as follows: As of December 31, 2016 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 10 $ 65,409 $ (15,133 ) $ 50,276 Trade names 5 5,622 (4,661 ) 961 Non-competition agreements 4 756 (733 ) 23 Total $ 71,787 $ (20,527 ) $ 51,260 As of December 31, 2015 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 10 $ 52,974 $ (8,387 ) $ 44,587 Trade names 5 5,853 (3,772 ) 2,081 Non-competition agreements 4 746 (554 ) 192 Total $ 59,573 $ (12,713 ) $ 46,860 All of the intangible assets have finite lives and as such are subject to amortization. Recognized amortization expense for each of the years ended December 31 is presented in the table below: For the Years Ended December 31, 2016 2015 2014 Customer relationships $ 6,858 $ 3,961 $ 3,843 Trade names 1,139 1,280 1,319 Non-competition agreements 173 175 187 Total $ 8,170 $ 5,416 $ 5,349 Estimated amortization expense related to the Company’s existing intangible assets for the next five years ending December 31 was as follows: Amount 2017 $ 7,482 2018 6,539 2019 6,539 2020 6,539 2021 6,539 Thereafter 17,622 Total $ 51,260 |
PREPAID AND OTHER CURRENT ASSET
PREPAID AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID AND OTHER ASSETS | PREPAID AND OTHER ASSETS Prepaid and other assets consisted of the following: December 31, December 31, Taxes receivable $ 6,054 $ 7,954 Prepaid expenses 5,462 4,693 Unamortized software licenses and subscriptions 1,550 699 Security deposits under operating leases 1,323 575 Notes receivable, net of allowance of $580 and $0, respectively 710 — Other, net of allowance of $64 and $0, respectively 591 423 Total $ 15,690 $ 14,344 |
EMPLOYEE LOANS AND ALLOWANCE FO
EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Leases Receivable, Related Parties Disclosure [Abstract] | |
EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES | EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES In 2012, the Board of Directors of the Company approved the Employee Housing Program (the “Housing Program”), which provides employees with loans to purchase housing in Belarus. The housing is sold directly to employees by independent third parties. The Housing Program was designed as a retention mechanism for the Company’s employees in Belarus and is available to full-time qualified employees who have been with the Company for at least three years . The aggregate maximum lending limit of the program is $10,000 , with no individual outstanding loans exceeding $50 . 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, 2016 , loans issued by the Company under the Housing Program were denominated in U.S. Dollars with a 5 -year term and carried an interest rate of 7.5% . At December 31, 2016 and December 31, 2015 , categories of employee loans included in the loan portfolio were as follows: December 31, December 31, Housing loans $ 5,448 $ 5,654 Relocation and other loans 530 684 Total employee loans 5,978 6,338 Less: Allowance for loan losses — — Total loans, net of allowance for loan losses $ 5,978 $ 6,338 During the years ended December 31, 2016 and 2015 , the Company issued a total of $2,960 and $3,427 of loans to its employees, respectively, and received $3,273 and $3,547 in loan repayments during the same periods, respectively. No loans were written-off during the year ended December 31, 2016 . There was one loan written-off during the year ended December 31, 2015 . There were no loans issued to principal officers, directors, or their affiliates during the years ended December 31, 2016 , 2015 and 2014 . On a quarterly basis, the Company reviews the aging of its loan portfolio and evaluates the ability of employees to repay their debt on schedule. Factors considered in the review include historical payment experience, reasons for payment delays and shortfalls, if any, as well as probability of collecting scheduled principal and interest payments. As of December 31, 2016 and December 31, 2015 , 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, 2016 and December 31, 2015 and there were no movements in the provision for loan losses during the years ended December 31, 2016 , 2015 and 2014 . |
RESTRICTED CASH AND TIME DEPOSI
RESTRICTED CASH AND TIME DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH AND TIME DEPOSITS | RESTRICTED CASH AND TIME DEPOSITS Restricted cash and time deposits consisted of the following: December 31, December 31, Restricted cash, short-term $ 2,400 $ — Time deposits 403 30,181 Other long-term security deposits 239 238 Total $ 3,042 $ 30,419 As of December 31, 2015 time deposits consisted of a bank deposit of $30,181 , earning interest at the rate of 0.74% placed with the Company’s Cyprus entity’s bank accounts in the United Kingdom. The deposit matured on March 11, 2016 . |
PROPERTY AND EQUIPMENT - NET
PROPERTY AND EQUIPMENT - NET | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT - NET | PROPERTY AND EQUIPMENT — NET Property and equipment consisted of the following: Weighted Average Useful Life (in years) December 31, December 31, Computer hardware 3 $ 49,599 $ 36,612 Building 49 34,012 34,002 Furniture and fixtures 7 13,178 8,990 Office equipment 7 9,416 8,307 Leasehold improvements 4 7,944 6,801 Purchased computer software 5 4,601 4,099 Land improvements 20 1,467 1,464 120,217 100,275 Less accumulated depreciation and amortization (46,601 ) (39,776 ) Total $ 73,616 $ 60,499 For the leasehold improvements, the useful life is determined based on the shorter of the lease term or useful life of the underlying asset. Depreciation and amortization expense related to property and equipment was $15,217 , $11,979 and $12,134 for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: December 31, December 31, Compensation $ 33,404 $ 47,285 Deferred revenue 3,319 3,047 Subcontractor costs 3,317 4,360 Professional fees 2,348 2,251 Business trips 2,324 939 Facilities costs 1,534 1,538 Insurance costs 1,091 810 Acquisition related deferred consideration — 603 Deferred tax liabilities — 365 Other 2,558 2,598 Total $ 49,895 $ 63,796 |
TAXES PAYABLE
TAXES PAYABLE | 12 Months Ended |
Dec. 31, 2016 | |
Taxes Payable, Current [Abstract] | |
TAXES PAYABLE | TAXES PAYABLE Current taxes payable consisted of the following: December 31, December 31, Corporate profit tax $ 4,000 $ 15,057 Value added taxes 10,644 8,553 Payroll, social security, and other taxes 10,364 5,862 Total $ 25,008 $ 29,472 There were no long-term taxes payable as of December 31, 2016 and 2015 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before provision for income taxes included income from domestic operations and income from foreign operations based on geographic location as disclosed in the table below: For the Years Ended December 31, 2016 2015 2014 Income/ (loss) before income tax expense: Domestic $ (9,300 ) $ (7,687 ) $ (7,229 ) Foreign 135,766 113,757 94,182 Total $ 126,466 $ 106,070 $ 86,953 The provision for income taxes consists of the following: For the Years Ended December 31, 2016 2015 2014 Income tax expense (benefit) consists of: Current Federal $ 13,324 $ 19,851 $ 7,741 State (63 ) 2,563 338 Foreign 17,243 14,528 12,504 Deferred Federal (3,581 ) (13,361 ) (3,979 ) State 312 (1,891 ) (43 ) Foreign (35 ) (76 ) 751 Total $ 27,200 $ 21,614 $ 17,312 Deferred Income Taxes Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, December 31, Deferred tax assets: Property and equipment $ 203 $ 681 Intangible assets 1,525 1,428 Accrued expenses 9,172 10,729 Net operating loss carryforward 5,368 5,233 Deferred revenue 1,165 2,162 Stock-based compensation 19,701 12,484 Other assets 17 14 Deferred tax assets 37,151 32,731 Deferred tax liabilities: Property and equipment 1,735 646 Intangible assets 4,969 1,598 Accrued revenue and expenses 500 511 Stock-based compensation 1,606 1,672 Other liabilities 314 912 Deferred tax liabilities 9,124 5,339 Net deferred tax assets $ 28,027 $ 27,392 Included in the stock-based compensation expense deferred tax asset at December 31, 2016 and 2015 is $11,471 and $7,219 , respectively that is related to acquisitions and is amortized for tax purposes over a 15 -year period. We have income tax net operating loss (“NOL”) carryforwards related to several jurisdictions of $20,899 . We have recorded a deferred tax asset of $5,368 reflecting the full benefit of $20,899 in loss carryforwards as we fully expect to utilize all NOLs before each country’s expiration period. Adoption of ASU 2015-17 resulted in the classification of current deferred tax assets and liabilities to non-current deferred tax assets and liabilities. As such the Company has no current deferred tax assets and liabilities as of December 31, 2016 . As of December 31, 2016 , the Company had non-current deferred tax assets and liabilities of $31,005 and $2,979 , respectively. At December 31, 2015 , the Company had current and non-current deferred tax assets of $11,847 and $18,312 , respectively, and current and non-current deferred tax liabilities of $365 and $2,402 , respectively. Current and non-current deferred tax liabilities were shown under other current and long-term liabilities on the consolidated balance sheets. 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, 2016, certain subsidiaries had approximately $571.4 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 reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows: For the Years Ended December 31, 2016 2015 2014 Statutory federal tax $ 44,263 $ 37,125 $ 29,564 Increase/ (decrease) in taxes resulting from: State taxes, net of federal benefit 1,192 341 311 Provision adjustment for current year uncertain tax position — — (1,220 ) Effect of permanent differences 5,042 7,314 8,589 Stock-based compensation expense 9,535 7,591 3,782 Foreign tax expense and tax rate differential (33,477 ) (31,094 ) (24,772 ) Change in foreign tax rate — 9 754 Change in valuation allowance — — 149 Other 645 328 155 Provision for income taxes $ 27,200 $ 21,614 $ 17,312 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 , for a period of 15 years . The aggregate dollar benefits derived from this tax holiday approximated $13.6 million , $20.8 million and $16.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The benefit the tax holiday had on diluted net income per share approximated $0.26 , $0.40 and $0.34 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Uncertain Tax Positions The liability for unrecognized tax benefits is included in taxes payable within the consolidated balance sheets at December 31, 2016 and 2015 . At December 31, 2016 and 2015 , the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state tax positions) was $66 and $62 , respectively. These amounts represent 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. There was no accrued interest and penalties resulting from such unrecognized tax benefits at December 31, 2016 and December 31, 2015 . The total amount of accrued interest and penalties resulting from such unrecognized tax benefits was $12 at December 31, 2014 . The beginning to ending reconciliation of the gross unrecognized tax benefits is as follows: For the Years Ended December 31, 2016 2015 2014 Balance at January 1 $ 62 $ 200 $ 1,271 Increases in tax positions in current year 4 — — Increases in tax positions in prior year — — — Decreases due to settlement — (138 ) (1,071 ) Balance at December 31 $ 66 $ 62 $ 200 There were no tax positions for which it was reasonably possible that unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date. The Company files income tax returns in the United States and in various state, local and foreign jurisdictions. The Company’s significant tax jurisdictions are the United States, Canada, Russia, Denmark, Germany, Ukraine, the United Kingdom, Hungary, Switzerland, and India. The tax years subsequent to 2012 remain open to examination by the Internal Revenue Service and generally, the tax years subsequent to 2012 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, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS The Company offers employees 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 up to the statutory limit defined by the Internal Revenue Service. The Company provides discretionary matching contributions to the plan of up to a maximum of 2.0% of the employee’s eligible compensation as defined by the plan. Employer contributions are subject to a two year vesting schedule. Employer contributions charged to expense for the years ended December 31, 2016 , 2015 and 2014 , were $1,934 , $740 and $549 , respectively. The Company does not maintain any defined benefit pension plans or any nonqualified deferred compensation plans. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Revolving Line of Credit — On September 12, 2014, the Company entered into a revolving loan agreement (the “2014 Credit Facility”) with PNC Bank, National Association; Santander Bank, N.A; and Silicon Valley Bank (collectively the “Lenders”) to replace its former revolving loan agreement. The 2014 Credit Facility provides for a borrowing capacity of $100,000 , with potential to increase the credit facility up to $200,000 if certain conditions are met. The 2014 Credit Facility matures on September 12, 2019. Borrowings under the 2014 Credit Facility may be denominated in U.S. dollars or up to a maximum of $50,000 in British pounds sterling, Canadian dollars, euros or Swiss francs (or other currencies as may be approved by the lenders). Borrowings under the 2014 Credit Facility bear interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. Base rate is equal to the highest of (a) the Federal Funds Open Rate, plus 0.5% , (b) the Prime Rate, or (c) the Daily LIBOR Rate, plus 1.0% . The 2014 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 and 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% of the outstanding shares of capital stock and other equity interests in certain of the Company’s foreign subsidiaries. The 2014 Credit Facility includes customary business and financial covenants and restricts the Company’s ability to make or pay dividends (other than certain intercompany dividends) unless no potential or actual event of default has occurred or would be triggered. As of December 31, 2016 , the Company was in compliance with all covenants contained in the 2014 Credit Facility. As of December 31, 2016 and 2015 , the outstanding debt of the Company under the 2014 Credit Facility was $25,000 and $35,000 respectively, and is subject to a LIBOR-based interest rate, which resets regularly at issuance, based on lending terms. In addition, as of December 31, 2016 , the Company has a $942 unused irrevocable standby letter of credit associated with its insurance program that was issued under the 2014 Credit Facility during the year 2016. As of December 31, 2016 and 2015 , the borrowing capacity of the Company under the 2014 Credit Facility was $74,058 and $65,000 , respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income and comprehensive income: For the Years Ended December 31, 2016 2015 2014 Cost of revenues $ 16,619 $ 13,695 $ 8,648 Selling, general and administrative expenses — Acquisition related 12,884 18,690 8,829 Selling, general and administrative expenses — All other 19,741 13,448 7,143 Total $ 49,244 $ 45,833 $ 24,620 Equity Plans 2012 Non-Employee Directors Compensation Plan — On January 11, 2012, the Company approved the 2012 Non-Employee Directors Compensation Plan (“2012 Directors Plan”) to 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. As of December 31, 2016 , 547,560 shares of common stock remained available for issuance under the 2012 Directors Plan. The 2012 Directors Plan will expire after 10 years and is administered by the Company’s Board of Directors. 2015 Long-Term Incentive Plan — On June 11, 2015, the Company’s stockholders approved the 2015 Long-Term Incentive Plan (“2015 Plan”) to be used to issue equity awards to company personnel. As of December 31, 2016 , 6,202,977 shares of common stock remained available for issuance under the 2015 Plan. All of the awards issued pursuant to the 2015 Plan expire 10 years from the date of grant. 2012 Long-Term Incentive Plan — On January 11, 2012, the Company approved the 2012 Long-Term Incentive Plan (“2012 Plan”) to be used to issue equity grants to company personnel. In June 2015, the 2012 Plan was discontinued; however, outstanding awards remain subject to the terms of the 2012 Plan and any shares that are subject to an award that was previously granted under the 2012 Plan and that expire or terminate for any reason prior to exercise will become available for issuance under the 2015 Plan. All of the awards issued pursuant to the 2012 Plan expire 10 years from the date of grant. 2006 Stock Option Plan — Effective May 31, 2006, the Board of Directors of the Company adopted the 2006 Stock Option Plan (the “2006 Plan”) to grant stock options to directors, employees, and certain independent contractors. 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 award that was previously granted under the 2006 Plan and that expire or terminate for any reason prior to exercise will become available for issuance under the 2015 Plan. All of the awards issued pursuant to the 2006 Plan expire 10 years from the date of grant. Stock Options Stock option activity under the Company’s plans is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value Options outstanding at January 1, 2014 5,823,536 $ 13.99 $ 122,003 Options granted 2,400,500 32.51 36,584 Options exercised (1,171,097 ) 9.05 (45,321 ) Options forfeited/cancelled (214,193 ) 25.33 (4,802 ) Options outstanding at December 31, 2014 6,838,746 $ 20.98 $ 183,073 Options granted 2,219,725 62.18 36,492 Options exercised (1,405,826 ) 14.70 (89,860 ) Options forfeited/cancelled (201,731 ) 34.48 (8,904 ) Options outstanding at December 31, 2015 7,450,914 $ 34.07 $ 331,938 Options granted 313,088 70.27 (1,866 ) Options exercised (895,804 ) 20.13 (39,577 ) Options forfeited/cancelled (227,759 ) 47.89 (3,740 ) Options expired (3,200 ) 1.52 (201 ) Options outstanding at December 31, 2016 6,637,239 $ 37.20 $ 179,936 Options vested and exercisable at December 31, 2016 3,350,682 $ 25.96 $ 128,499 Options expected to vest 3,127,635 $ 48.28 $ 50,136 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. During 2014, the Company began including the historical volatility for the Company in conjunction with peer public companies to formulate estimated volatility regarding stock options. The expected volatility was 31.9% , 34.1% and 45.9% in the years ended December 31, 2016 , 2015 and 2014 , respectively. 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 the Company does not have sufficient history in order to develop a more precise estimate. The expected term was 6.24 years in 2016 , 6.25 years in 2015 , and 6.20 years in 2014 . 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 1.5% , 1.8% and 2.0% in 2016 , 2015 and 2014 , 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 records share-based compensation expense only for those awards that are expected to vest. The Company applies an estimated forfeiture rate at the time of grant and adjusts those estimated forfeitures to reflect actual forfeitures at least annually. Aggregate grant-date fair value of stock options issued during the year ended December 31, 2016 was $6,874 . The options are typically scheduled to vest over four years from the time of grant, subject to the terms of the applicable plan and stock option agreement. In general, in the event of the participant’s termination of service for any reason, unvested options are forfeited as of the date of such termination without any payment to the participant. As of December 31, 2016 , total remaining unrecognized compensation cost related to unvested stock options, net of estimated forfeitures, was approximately $44,162 . The expense is expected to be recognized over a weighted-average period of 1.6 years . As of December 31, 2016 , the weighted average remaining contractual term was 6.0 years for fully vested and exercisable options and 7.8 years for options expected to vest. As of December 31, 2016 , a total of 2,550 shares underlying options exercised through December 31, 2016 , were in transfer with the Company’s transfer agent. Restricted Stock and Restricted Stock Units The Company grants awards of restricted stock to non-employee directors under the Company’s 2012 Directors Plan and restricted stock units (“RSUs”) to Company personnel under the Company’s 2015 Plan (and prior to its approval, under the 2012 Plan). In addition, the Company has issued in the past, and may issue in the future, its equity securities to compensate employees of acquired businesses for future services. Equity-based awards granted in connection with acquisitions of businesses are generally issued in the form of service-based awards (dependent on continuing employment only) and performance-based awards, which are granted and vest only if certain specified performance conditions are met. The awards issued in connection with acquisitions of businesses are subject to the terms and conditions contained in the applicable award agreement and acquisition documents with typical vesting period of 3 years , with 33.3% of the awards granted vesting in equal installments on the first, second and third anniversaries of the grant. Service-Based Awards The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the years ended December 31, 2016 , 2015 and 2014 : Equity-Classified Equity-Settled Restricted Stock Equity-Classified Equity-Settled Restricted Stock Units Liability-Classified Cash-Settled Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested service-based awards outstanding at January 1, 2014 344,928 $ 18.74 — $ — — $ — Awards granted 452,720 41.63 70,500 32.55 — — Awards vested (217,668 ) 17.84 — — — — Awards forfeited/cancelled (17,038 ) 21.14 — — — — Unvested service-based awards outstanding at December 31, 2014 562,942 $ 37.42 70,500 $ 32.55 — $ — Awards granted 5,295 70.79 108,319 67.21 — — Awards vested (261,504 ) 33.74 (17,625 ) 32.55 — — Awards forfeited/cancelled 106 36.57 (11,922 ) 34.49 — — Unvested service-based awards outstanding at December 31, 2015 306,839 $ 41.14 149,272 $ 57.55 — $ — Awards granted 6,510 73.00 408,629 70.39 207,586 70.53 Awards vested (156,535 ) 42.64 (41,015 ) 55.60 — — Awards forfeited/cancelled (2,689 ) 45.32 (31,698 ) 70.44 (3,085 ) 70.52 Unvested service-based awards outstanding at December 31, 2016 154,125 $ 40.89 485,188 $ 67.69 204,501 $ 70.53 As of December 31, 2016 , the aggregate unrecognized compensation expense for outstanding service-based equity-classified restricted stock was $3,444 . This expense is expected to be recognized over the next 1.0 years using the weighted average method. As of December 31, 2016 , the aggregate unrecognized compensation expense for all outstanding service-based equity-classified RSUs was $22,584 . This cost is expected to be recognized over the next 2.0 years using the weighted average method. As of December 31, 2016 , the aggregate unrecognized compensation expense for all outstanding service-based liability-classified cash-settled RSUs was $8,842 , which is expected to be recognized over the next 2.1 years using the weighted average method. Performance -Based Awards In 2014, the Company granted performance-based awards in connection with the acquisitions completed during that year. The total number of the awards varies based on attainment of certain performance targets pursuant to the terms of the relevant transaction documents. During the year ended December 31, 2016 , two-thirds of the performance-based awards issued in 2014 acquisitions vested, net of any forfeitures. Summarized activity related to the Company’s performance-based awards for the years ended December 31, 2016 , was as follows: Equity-Classified Liability-Classified Equity-Classified Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested performance-based awards outstanding at January 1, 2014 — $ — — $ — — $ — Awards granted 26,441 38.91 360,617 38.13 — — Awards vested — — — — — — Awards forfeited/cancelled (2,550 ) 36.57 — — — — Changes in the number of awards expected to be delivered 9,154 36.57 (22,152 ) 18.32 — — Unvested performance-based awards outstanding at December 31, 2014 33,045 $ 38.44 338,465 $ 39.43 — $ — Awards granted — — — — 14,000 70.22 Awards vested (12,145 ) 39.92 (105,604 ) 40.44 — — Awards forfeited/cancelled (1,360 ) 36.57 — — — — Changes in the number of awards expected to be delivered 2,550 36.57 (21,655 ) 32.27 — — Unvested performance-based awards outstanding at December 31, 2015 22,090 $ 37.52 211,206 $ 39.65 14,000 $ 70.22 Awards granted — — — — — — Awards vested (9,978 ) 40.15 (105,604 ) 40.44 (4,666 ) 70.22 Awards forfeited/cancelled (6,539 ) 36.97 — — (4,667 ) 70.22 Unvested performance-based awards outstanding at December 31, 2016 5,573 $ 33.47 105,602 $ 38.86 4,667 $ 70.22 As of December 31, 2016 , the aggregate unrecognized compensation expense for all outstanding performance-based equity-classified restricted stock was $144 . That cost is expected to be recognized over the next 1.0 year using the weighted average method. As of December 31, 2016 , the aggregate unrecognized compensation expense for all outstanding performance-based liability-classified restricted stock was $3,002 . That cost is expected to be recognized over the next 1.0 year using the weighted average method. As of December 31, 2016 , the aggregate unrecognized compensation expense for all outstanding performance-based equity-classified RSUs was $471 . This expense is expected to be recognized over the next 1.3 years using the weighted average method. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 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. Diluted earnings per share is computed by dividing the net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock and unvested RSUs. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share of common stock as follows: For the Years Ended December 31, 2016 2015 2014 Numerator for common earnings per share: Net income $ 99,266 $ 84,456 $ 69,641 Numerator for basic and diluted earnings per share $ 99,266 $ 84,456 $ 69,641 Denominator for basic and diluted earnings per share: Weighted average common shares outstanding 50,309 48,721 47,189 Effect of dilutive securities: Stock options, RSUs and performance-based awards 2,906 3,265 2,545 Denominator for diluted earnings per share 53,215 51,986 49,734 Net income per share: Basic $ 1.97 $ 1.73 $ 1.48 Diluted $ 1.87 $ 1.62 $ 1.40 For the years ended December 31, 2016 , 2015 and 2014 a total of 2,325 , 1,637 and 2,260 shares underlying equity-based awards, respectively, were outstanding but were not included in the computation of diluted earnings per share because the effect was anti-dilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company leases office space under operating leases, which expire at various dates. 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, 2016 , 2015 and 2014 was $28,220 , $20,065 , and $18,200 respectively. Future minimum rental payments under operating leases that have initial or remaining lease terms in excess of one year as of December 31, 2016 were as follows: Year Ending December 31, Operating Leases 2017 $ 30,791 2018 24,706 2019 16,044 2020 10,271 2021 7,170 Thereafter 11,098 Total minimum lease payments $ 100,080 Indemnification Obligations — 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 certain arrangements. 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 financial statements of the Company. Litigation — From time to time, the Company is involved in 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, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company carries contingent liabilities and certain equity-based awards at fair value on a recurring basis on its consolidated balance sheets. Changes in the fair values of these financial liabilities are typically recorded within selling, general and administrative expenses on the Company’s consolidated statements of income and comprehensive income. The following tables show the fair values of the Company’s financial liabilities measured at fair value on a recurring basis as of December 31, 2016 and 2015 : As of December 31, 2016 Balance Level 1 Level 2 Level 3 Performance-based equity awards $ 3,789 $ 3,789 $ — $ — Cash-settled restricted stock units 2,111 2,111 — — Total liabilities measured at fair value on a recurring basis $ 5,900 $ 5,900 $ — $ — As of December 31, 2015 Balance Level 1 Level 2 Level 3 Performance-based equity awards $ 5,364 $ — $ — $ 5,364 Total liabilities measured at fair value on a recurring basis $ 5,364 $ — $ — $ 5,364 Performance-based equity awards carried at fair value on a recurring basis represent contractual liabilities related to certain business combination transactions completed in 2014. During the determination period, the Company classified the performance-based equity awards within Level 3. The Company estimated the fair value of these liabilities based on transaction-specific inputs by discounting the expected cash flows to a present value, after taking into account estimated probabilities of reaching specified performance targets, as appropriate. During the year ended December 31, 2016, the fair value of the performance-based awards was measured using prices for which observable market information became available. As a result, the Company reclassified these liabilities from Level 3 to Level 1. The fair value of the cash-settled restricted stock units is measured using prices for which observable market information is available. A reconciliation of the beginning and ending balances of acquisition-related contractual contingent liabilities using significant unobservable inputs (Level 3) for the years ended December 31, 2016 and 2015 , was as follows: Amount Contractual contingent liabilities at January 1, 2014 $ — Acquisition date fair value of contractual contingent liabilities — Netsoft 1,825 Acquisition date fair value of contractual contingent liabilities — Jointech 20,000 Acquisition date fair value of contractual contingent liabilities — GGA 11,400 Acquisition date fair value of contractual contingent liabilities — Great Fridays 1,173 Liability-classified stock-based awards 3,088 Changes in fair value of contractual contingent liabilities included in earnings 2,059 Changes in fair value of contractual contingent liabilities recorded against goodwill 1,366 Effect of net foreign currency exchange rate changes (288 ) Contractual contingent liabilities at December 31, 2014 40,623 Liability-classified stock-based awards 5,148 Changes in fair value of contractual contingent liabilities included in earnings 4,355 Effect of net foreign currency exchange rate changes 246 Settlements of contractual contingent liabilities (45,008 ) Contractual contingent liabilities at December 31, 2015 5,364 Acquisition date fair value of contractual contingent liabilities — other acquisitions 800 Liability-classified stock-based awards 5,148 Changes in fair value of contractual contingent liabilities included in earnings 1,232 Changes in fair value of contractual contingent liabilities recorded against goodwill 200 Settlements of contractual contingent liabilities (8,955 ) Reclassification of contractual contingent liabilities out of Level 3 (3,789 ) Contractual contingent liabilities at December 31, 2016 $ — Estimates of fair value of financial instruments not carried at fair value on a recurring basis on the Company’s consolidated balance sheets are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The Company uses the following methods to estimate the fair values of its financial instruments: • for financial instruments that have quoted market prices, those quoted prices are used to estimate fair value; • for financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. • for financial instruments for which no quoted market prices are available and that have no defined maturity, have a remaining maturity of 360 days or less, or reprice frequently to a market rate, the Company assumes that the fair value of these instruments approximates their reported value, after taking into consideration any applicable credit risk; The generally short duration of certain of the Company’s assets and liabilities results in a significant number of assets and liabilities for which fair value equals or closely approximates the amount recorded on the Company’s consolidated balance sheets. These assets and liabilities are reported on the Company’s consolidated balance sheets: • cash and cash equivalents; • time deposits and restricted cash; • employee loans and notes receivable; • borrowings under the 2014 Credit Facility (Note 13 ) In addition, due to the relatively short duration of certain of our loans, the Company considers fair value for these loans to approximate their carrying amounts. The fair value of other types of loans, such as employee loans issued under the Housing Program, is estimated using information on the rates of return that market participants in Belarus would require when investing in unsecured U.S. dollar-denominated government bonds with similar maturities (a “risk-free rate”), after taking into consideration any applicable credit and liquidity risk. The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2016 Financial Assets: Cash and cash equivalents $ 362,025 $ 362,025 $ 362,025 $ — $ — Time deposits and restricted cash $ 3,042 $ 3,042 $ — $ 3,042 $ — Employee loans $ 5,978 $ 5,978 $ — $ — $ 5,978 Financial Liabilities: Borrowing under 2014 Credit Facility $ 25,019 $ 25,019 $ — $ 25,019 $ — Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2015 Financial Assets: Cash and cash equivalents $ 199,449 $ 199,449 $ 199,449 $ — $ — Time deposits and restricted cash $ 30,419 $ 30,419 $ — $ 30,419 $ — Employee loans $ 6,338 $ 6,338 $ — $ — $ 6,338 Financial Liabilities: Borrowing under 2014 Credit Facility $ 35,000 $ 35,000 $ — $ 35,000 $ — |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company determines its business segments and reports segment information in accordance with the management approach, which designates internal reporting used by management to make operating decisions and assess performance as the source of the Company’s reportable segments. The Company manages its business primarily based on the geographic managerial responsibility for its client base. As 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 cases, managerial responsibility for a particular client is assigned to a management team in another region and is usually based on the strength of the relationship between client executives and particular members of EPAM’s senior management team. In such a case, 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 revenues in the Other segment represented less than 1% of total segment revenues in 2014 and 2015 due to the ending of certain customer relationships and contractual changes with other clients. As no substantial clients remained in the segment, during the first quarter of 2016, the Company shifted managerial responsibility for the remaining clients to the Russia segment. This change does not represent a change in the Company's existing segments but rather a movement in responsibility for several clients that represent less than 1% of total segment revenue. The Company’s Chief Operating Decision Maker (“CODM”) evaluates performance and allocates resources based on the segment’s revenues and operating profit. Segment operating profit is defined as income from operations before unallocated costs. Generally, operating expenses for each reportable 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 that are not controllable at the segment level are not allocated to specific segments. Such “unallocated” expenses are deducted against the Company’s total income from operations and are not allocated to individual segments in internal management reports used by the CODM. Revenues from external customers and segment operating profit, before unallocated expenses, for the North America, Europe, Russia and Other reportable segments were as follows: For the years ended December 31, 2016 2015 2014 Total segment revenues: North America $ 642,216 $ 471,603 $ 374,509 Europe 474,988 400,460 299,279 Russia 43,611 37,992 50,663 Other — 4,911 5,552 Total segment revenues $ 1,160,815 $ 914,966 $ 730,003 Segment operating profit: North America $ 143,021 $ 112,312 $ 90,616 Europe 67,545 68,717 50,189 Russia 7,555 5,198 7,034 Other — (94 ) (3,220 ) Total segment operating profit $ 218,121 $ 186,133 $ 144,619 Intersegment transactions were excluded from the above on the basis that they are neither included into the measure of a segment’s profit and loss by the CODM, nor provided to the CODM on a regular basis. During the years ended December 31, 2016 , 2015 and 2014 , revenues from one customer, UBS AG, were $138,124 , $130,605 and $97,872 , respectively and accounted for more than 10% of total revenues. Revenue from this customer is reported in the Company’s Europe segment and includes reimbursable expenses. Trade accounts receivable and unbilled revenues are generally dispersed across our clients in proportion to their revenues. As of December 31, 2016 , unbilled trade receivables from two customers, individually exceeded 10% and accounted for 22.2% of our total unbilled trade receivables. There were no customers individually exceeding 10% of our billed trade receivables as of December 31, 2016 . As of December 31, 2015 , billed and unbilled trade receivables from one customer, UBS AG, individually exceeded 10% and accounted for 12.4% and 19.8% of our total billed and unbilled trade receivables, respectively. Reconciliation of segment revenues and operating profit to consolidated income before provision for income taxes is presented below: For the Years Ended December 31, 2016 2015 2014 Total segment revenues $ 1,160,815 $ 914,966 $ 730,003 Unallocated (revenue)/loss (683 ) (838 ) 24 Revenues $ 1,160,132 $ 914,128 $ 730,027 Total segment operating profit: $ 218,121 $ 186,133 $ 144,619 Unallocated amounts: Other (revenues)/loss (683 ) (838 ) 24 Stock-based compensation expense (49,244 ) (45,833 ) (24,620 ) Non-corporate taxes (5,909 ) (4,274 ) (6,882 ) Professional fees (8,265 ) (7,104 ) (5,312 ) Depreciation and amortization (8,290 ) (5,581 ) (7,988 ) Bank charges (1,515 ) (1,352 ) (1,049 ) One-time charges (706 ) (747 ) (5,983 ) Other corporate expenses (9,813 ) (14,437 ) (6,626 ) Income from operations 133,696 105,967 86,183 Interest and other income, net 4,848 4,731 4,769 Change in fair value of contingent consideration — — (1,924 ) Foreign exchange loss (12,078 ) (4,628 ) (2,075 ) Income before provision for income taxes $ 126,466 $ 106,070 $ 86,953 Geographic Area Information Long-lived assets include property and equipment, net of accumulated depreciation and amortization, and management has determined that it is not practical to allocate these assets by segment since such assets are used interchangeably among the segments. Geographical information about the Company’s long-lived assets based on physical location of the assets was as follows: December 31, December 31, Belarus $ 46,011 $ 44,879 Russia 7,203 2,084 Ukraine 5,610 4,487 Hungary 3,485 2,485 United States 2,618 1,969 Poland 2,213 1,088 China 1,887 514 India 1,650 1,099 Other 2,939 1,894 Total $ 73,616 $ 60,499 Information about the Company’s revenues by client location is as follows: For the Years Ended December 31, 2016 2015 2014 United States $ 605,856 $ 427,433 $ 318,304 United Kingdom 174,719 164,301 141,366 Switzerland 122,399 111,353 87,111 Canada 58,742 57,643 49,193 Germany 43,216 36,089 25,740 Russia 40,866 36,506 48,945 Sweden 22,945 10,589 7,892 Hong Kong 20,333 23,117 13,445 Netherlands 16,762 9,989 8,838 Belgium 8,505 7,916 4,198 Ireland 5,152 5,437 3,667 China 4,445 817 — Italy 3,970 2,318 1,746 Spain 3,406 1,028 106 Other locations 16,295 10,081 11,066 Reimbursable expenses and other revenues 12,521 9,511 8,410 Revenues $ 1,160,132 $ 914,128 $ 730,027 Service Offering Information Information about the Company’s revenues by service offering is as follows: For the Years Ended December 31, 2016 2015 2014 Software development $ 841,916 $ 644,732 $ 504,590 Application testing services 223,010 174,259 140,363 Application maintenance and support 74,475 70,551 58,840 Infrastructure services 5,069 11,311 14,198 Licensing 3,141 3,764 3,626 Reimbursable expenses and other revenues 12,521 9,511 8,410 Revenues $ 1,160,132 $ 914,128 $ 730,027 |
QUARTERLY FINANCIAL DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA | QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly results for the two years ended December 31, 2016 and 2015 were as follows: Three Months Ended 2016 March 31 June 30 September 30 December 31 Full Year Revenues $ 264,482 $ 283,832 $ 298,293 $ 313,525 $ 1,160,132 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 167,381 180,782 190,797 198,226 737,186 Selling, general and administrative expenses 61,494 64,241 67,491 71,432 264,658 Depreciation and amortization expense 5,102 6,123 5,925 6,237 23,387 Other operating expenses, net 174 606 178 247 1,205 Income from operations 30,331 32,080 33,902 37,383 133,696 Interest and other income, net 1,211 1,138 1,067 1,432 4,848 Foreign exchange loss (1,290 ) (2,295 ) (1,728 ) (6,765 ) (12,078 ) Income before provision for income taxes 30,252 30,923 33,241 32,050 126,466 Provision for income taxes 6,353 6,493 7,067 7,287 27,200 Net income $ 23,899 $ 24,430 $ 26,174 $ 24,763 $ 99,266 Comprehensive income $ 28,598 $ 22,044 $ 26,532 $ 19,554 $ 96,728 Basic net income per share (1) $ 0.48 $ 0.49 $ 0.51 $ 0.49 $ 1.97 Diluted net income per share (1) $ 0.45 $ 0.46 $ 0.49 $ 0.46 $ 1.87 (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 2015 March 31 June 30 September 30 December 31 Full Year Revenues $ 200,045 $ 217,781 $ 236,049 $ 260,253 $ 914,128 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 125,887 134,256 148,479 158,291 566,913 Selling, general and administrative expenses 46,938 55,976 55,431 64,414 222,759 Depreciation and amortization expense 4,200 3,903 4,393 4,899 17,395 Other operating expenses/(income), net 200 40 (30 ) 884 1,094 Income from operations 22,820 23,606 27,776 31,765 105,967 Interest and other income, net 1,158 1,299 865 1,409 4,731 Foreign exchange (loss)/income (5,754 ) (465 ) 32 1,559 (4,628 ) Income before provision for income taxes 18,224 24,440 28,673 34,733 106,070 Provision for income taxes 3,510 5,209 5,800 7,095 21,614 Net income $ 14,714 $ 19,231 $ 22,873 $ 27,638 $ 84,456 Comprehensive income $ 11,984 $ 22,905 $ 14,532 $ 21,939 $ 71,360 Basic net income per share (1) $ 0.31 $ 0.40 $ 0.47 $ 0.56 $ 1.73 Diluted net income per share (1) $ 0.29 $ 0.37 $ 0.44 $ 0.52 $ 1.62 (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. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS (Valuation and Qualifying Accounts)(Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | VALUATION AND QUALIFYING ACCOUNTS (US Dollars in thousands) The table below summarizes movements in qualifying accounts, which include accounts receivable and notes receivable (from customers) for the years ended December 31, 2016 , 2015 and 2014 : Balance at Beginning of Year Charged to Expenses Deductions/ Write offs Balance at End of Year Fiscal Year 2014 $ 1,800 $ 1,325 $ (944 ) $ 2,181 Fiscal Year 2015 2,181 1,704 (2,156 ) 1,729 Fiscal Year 2016 1,729 3,500 (3,215 ) 2,014 |
NATURE OF BUSINESS AND SIGNIF27
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | The Company has expertise in various industries, including software and hi-tech, financial services, media and entertainment, travel and hospitality, retail and distribution and life sciences and healthcare. The Company is incorporated in Delaware with headquarters in Newtown, PA. |
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 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. |
Reclassification | Reclassification — During the first quarter of 2016, the Company revised the classification of certain health insurance premium and other employee fringe benefit expenses between the cost of revenues and selling, general and administrative expenses line items on the statements of income and comprehensive income. The effect of this reclassification had no impact on total income from operations for the year ended December 31, 2016 . |
Revenue Recognition | Revenue Recognition — The Company recognizes revenue when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the sales price is fixed or determinable; and (4) 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 reported. 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. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. If there is an uncertainty about the project completion or receipt of payment for the services, revenue is deferred until the uncertainty is sufficiently resolved. At the time revenue is recognized, the Company provides for any contractual deductions and reduces the revenue accordingly. The Company defers amounts billed to its clients for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. Unbilled revenue is recorded when services have been provided but billed subsequent to the period end in accordance with the contract terms. The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. The majority of the Company’s revenues ( 88.2% of revenues in 2016 , 85.8% in 2015 and 84.7% in 2014 ) are generated under time-and-material contracts where revenues are recognized as services are performed with the corresponding cost of providing those services reflected as cost of revenues. The majority of such revenues are billed on an hourly, daily or monthly basis as actual time is incurred on the client. Revenues from fixed-price contracts ( 10.4% of revenues in 2016 , 12.8% in 2015 and 13.6% in 2014 ) are primarily determined using the proportional performance method. In instances where final acceptance of the product, system, or solution is specified by the client, and the acceptance criteria are not objectively determinable to have been met as the services are provided, 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, 2016 , 2015 and 2014 . The Company’s fixed price contracts are generally recognized over a period of 12 months or less. |
Cost of Revenues (Exclusive of Depreciation and Amortization) | Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries and bonuses of the revenue producing personnel, as well as employee benefits, stock-based compensation expense and travel costs for these professionals. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses — Consist mainly of compensation, benefits and travel expenses of the officers, management, sales, marketing and administrative personnel. Other operating expenses included in selling, general and administrative expenses are advertising, promotional activities, legal and audit expenses, recruitment and development efforts, insurance, and operating lease expenses. In addition, the Company has issued stock to the sellers and/or personnel in connection with business acquisitions and has been recognizing stock-based compensation expense in the periods after the closing of these acquisitions as part of the selling, general and administrative expenses. Stock option expenses related to acquisitions comprised a significant portion of total selling, general and administrative stock-based compensation expense in 2016 and 2015 . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The Company makes assumptions about fair values of its financial assets and liabilities in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurement,” and utilizes the following fair value hierarchy in determining inputs used for valuation: 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 management’s 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 sheets 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, option pricing models and other relevant valuation models. To the extent possible, observable market data is used as inputs into these models but when it is not feasible, a degree of judgment is required to establish fair values. The Company’s contingent liabilities measured at fair value on a recurring basis are comprised of performance-based awards issued to certain former owners of acquired businesses in exchange for future services and cash-settled restricted stock units issued to employees. During a performance measurement period, performance-based awards are valued using significant inputs that are not observable in the market, which are defined as Level 3 inputs according to fair value measurement accounting. The Company estimates the fair value of contingent liabilities based on certain performance milestones of the acquired businesses and estimated probabilities of achievement, then discounts the liabilities to present value using the Company’s cost of debt for the cash component of contingent consideration, and a risk free rate for the stock component of a contractual contingency. The Company believes its estimates and assumptions are reasonable, however, there is significant judgment involved. Changes in the fair value of contingent consideration liabilities primarily result from changes in the timing and amount of specific milestone estimates and changes in probability assumptions with respect to the likelihood of achieving the various earnout criteria. Cash-settled restricted stock units issued to employees are valued using the price of the Company’s stock, a significant input that is observable in the market, which is defined as Level 1 input according to fair value measurement accounting. Changes in the fair value of these liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 17 “Fair Value Measurements.” |
Employee Loans | Employee Loans — The Company issues employee housing loans in Belarus, relocation loans to assist employees with relocation needs in connection with intra-company transfers and loans for the purchase of automobiles in India. There are no loans issued to principal officers, directors, and their affiliates. 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. On a quarterly basis, the Company reviews the aging of its loan portfolio and evaluates the ability of employees to repay their debt on schedule. Factors considered in the review include historical payment experience, reasons for payment delays and shortfalls, if any, as well as probability of collecting scheduled principal and interest payments. Since the initiation of the loan program there have not been material past due or non-accrual employee loans or write-offs related to loan losses and, therefore, the Company determined that no allowance for loan losses is required. Employee Housing Loans — The Employee Housing Program (the “Housing Program”) provides employees with loans to purchase housing in Belarus. The housing loans are measured using the Level 3 inputs within the fair value hierarchy because they are valued using significant unobservable inputs. These housing loans are measured at fair value upon initial recognition through the market approach under ASC Topic 820, “Fair Value Measurement” and subsequently carried at amortized cost less allowance for loan losses, if any. Any difference between the carrying value and the fair value of a loan upon initial recognition is charged to expense. Other Employee Loans — The Company issues short-term, non-interest bearing relocation loans to employees who have relocated within the company. In addition, the Company has in the past issued and may issue in the future a small number of interest bearing loans to employees for the purchase of automobiles. Such loans are issued to qualified employees with certain conditions attached. Due to the short term duration of these employee loans and high certainty of repayment, their carrying amount is a reasonable estimate of their fair value. |
Business Combinations | Business Combinations — 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 in accordance with the FASB ASC Topic 805, “Business Combinations.” The Company identifies and attributes fair values and estimated lives to the intangible assets acquired and allocates the total cost of an acquisition to the underlying net assets based on their respective estimated fair values. 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. There are 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. All acquisition-related costs, other than the costs to issue debt or equity securities, are accounted for as expenses in the period in which they are incurred. Changes in fair value of contingent consideration arrangements that are not measurement period adjustments are recognized in earnings. Payments to settle contingent consideration, if any, are reflected in cash flows from financing activities and the changes in fair value are reflected in cash flows from operating activities in the Company’s consolidated statements of cash flows. The acquired assets typically consist of customer relationships, trade names, non-competition agreements, and workforce and as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. |
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, 2016 and 2015 the Company had no cash equivalents. |
Restricted Cash | Restricted Cash — Restricted cash represents cash that is restricted by agreements with third parties for special purposes or is subject to other limiting conditions. See Note 7 for items that constitute restricted cash. |
Accounts Receivable | Accounts Receivable — Accounts receivable are stated net of an allowance for doubtful accounts. Outstanding accounts receivable are reviewed periodically and allowances are provided at such time management believes it is probable that such balances will not be collected within a reasonable time. 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. Accounts receivable are generally written off when they are deemed uncollectible. Bad debts are recorded based on historical experience and management’s evaluation of accounts receivable. |
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 two to fifty 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. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets — Goodwill and intangible assets that have indefinite useful lives are treated consistently with FASB ASC 350, “Intangibles — Goodwill and Other.” The Company does not have any intangible assets with indefinite useful lives. The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31 st , and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is a reportable segment or one level below. The Company initially performs a qualitative assessment of goodwill to test for impairment indicators. After applying the qualitative assessment, if the entity concludes that it is not more likely than not that the fair value of goodwill is less than the carrying amount; the two-step goodwill impairment test is not required. If the Company determines that it is more likely than not that the carrying amount exceeds the fair value, the Company performs a quantitative impairment test. If an indicator of impairment is identified, 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 the 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. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. 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 future cash flows 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, and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and exceeds the asset’s fair value. When the carrying value of an asset is more than the sum of the undiscounted cash flows that are expected to result from the asset’s use and eventual disposition, it is considered to be unrecoverable. Therefore, when an asset’s carrying value will not be recovered and it is more than its fair value, the Company would deem the asset to be impaired. Property and equipment held for disposal are carried at the lower of the current carrying value or fair value less estimated costs to sell. The Company did not incur any impairment of long-lived assets for the years ended December 31, 2016 and 2015 . The Company wrote off $1,149 related to the building construction in Minsk, Belarus against allowance for losses in the year ended December 31, 2014 . |
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 11 to the consolidated financial statements for further information. |
Earnings Per Share (EPS) | Earnings per Share (“EPS”) — Basic EPS is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. |
Stock-based Compensation | Stock-Based Compensation — The Company recognizes the cost of its stock-based incentive awards based on the fair value of the award at the date of grant net of estimated forfeitures. Stock-based compensation cost is recognized as expense on a straight-line basis over the requisite service period. The service period is the period over which the employee performs the related services, which is normally the same as the vesting period. Over time, the forfeiture assumption is adjusted to the actual forfeiture rate and such change may affect the timing of the total amount of expense recognized over the vesting period. Equity-based awards that do not require future service are expensed immediately. Equity-based awards that do not meet the criteria for equity classification are recorded as liabilities and adjusted to fair value at the end of each reporting period. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments — The Company uses the FASB ASC Topic 825, “Financial Instruments.” to identify and disclose off-balance sheet financial instruments, which include credit instruments, such as commitments to make employee loans and related guarantees, standby letters of credit and certain 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. Loss contingencies arising from off-balance sheet financial instruments 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 such matters exist that would have a material effect on the financial statements. |
Foreign Currency Transaction | 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. Transaction gains and losses are included in the period in which they occur. |
Risks and Uncertainties | Risks and Uncertainties — As a result of its global operations, the Company may be subject to certain inherent risks. Concentration of Credit — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, trade accounts receivable and unbilled revenues. The Company maintains cash and cash equivalents and short-term deposits with financial institutions. The Company determined that the Company’s credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. As of December 31, 2016 , $194.6 million of total cash, including time deposits and restricted cash, was held in CIS countries, with $153.8 million of that total in Belarus. Banking and other financial systems in the CIS region are less developed and regulated than in some more developed markets, and bank deposits made by corporate entities in the CIS region are not insured. Changes in the market behavior or decisions of the Company’s clients could adversely affect the Company’s results of operations. During the years ended December 31, 2016 , 2015 and 2014 , revenues from our top five customers were $327,092 , $298,063 and $239,396 , respectively, representing 28.2% , 32.6% and 32.8% , respectively, of total revenues in the corresponding periods. Revenues from our top ten customers were $442,253 , $400,250 and $320,126 in 2016 , 2015 and 2014 , respectively, representing 38.1% , 43.8% and 43.9% , respectively, of total revenues in corresponding periods. Foreign currency risk — The Company’s global operations are conducted predominantly in U.S. dollars. Other than U.S. dollars, the Company generates a significant portion of revenues in various currencies, principally, euros, British pounds sterling, Canadian dollars, Swiss francs and Russian rubles and incurs expenditures principally in Hungarian forints, Russian rubles, Polish zlotys, Swiss francs, British pounds sterling, Indian rupees and China yuan renminbi (“CNY”) associated with its delivery centers. The Company’s international operations expose it to foreign currency exchange rate changes that could impact translations of foreign denominated assets and liabilities into U.S. dollars and future earnings and cash flows from transactions denominated in different currencies. The Company is exposed to fluctuations in foreign currency exchange rates primarily related to accounts receivable and unbilled revenues from sales in foreign currencies and cash outflows for expenditures in foreign currencies. The Company’s results of operations, primarily revenues and expenses denominated in foreign currencies, can be affected if any of the currencies, which we use materially in our business, appreciate or depreciate against the U.S. dollar. Interest rate risk — The Company’s exposure to market risk is influenced primarily by changes in interest rates on interest payments received on cash and cash equivalent deposits and paid on any outstanding balance on the Company’s revolving line of credit, which is subject to a variety of rates depending on the type and timing of funds borrowed (Note 13 ). The Company does not use derivative financial instruments to hedge the risk of interest rate volatility. |
RECENT ACCOUNTING PRONOUNCEME28
RECENT ACCOUNTING PRONOUNCEMENTS RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Adoption of New Accounting Standards Unless otherwise discussed below, the adoption of new accounting standards did not have an impact on the Company’s consolidated financial position, results of operations, and cash flows. Balance Sheet Classification of Deferred Taxes — Effective April 1, 2016, the Company adopted Accounting Standard Update (“ASU”) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which resulted in the reclassification of current deferred tax assets and current deferred tax liabilities to non-current deferred tax assets and non-current deferred tax liabilities on its condensed consolidated balance sheets. No prior periods were retrospectively adjusted. See Note 11. Simplifying the Accounting for Measurement-Period Adjustments — Effective January 1, 2016, the Company adopted the amended guidance of Accounting Standards Codification (“ASC”) Topic 805, Business Combinations , which simplifies the accounting for adjustments made to provisional amounts recognized in a business combination. The amended guidance requires an acquirer to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustment amounts are determined. The adoption of this amended guidance did not have a significant impact on the Company’s financial results. Presentation of Debt Issuance Costs — In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Previously, debt issuance costs were recognized as deferred charges and recorded as other assets. In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 allows an entity to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The guidance was effective January 1, 2016. The Company early adopted the standards effective December 31, 2015 and elected to continue to classify debt issuance costs associated with its revolving line of credit in other assets. Although the impact of applying these standards to its existing revolving facility has been immaterial, the standards could have a significant impact on the accounting for future borrowings. Pending Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that the Company will adopt according to the various timetables the FASB specifies. Unless otherwise discussed below, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. Stock-Based Compensation — Effective January 1, 2017, the Company will be required to adopt the various amendments in ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The provisions of the new guidance affecting the Company require excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled; remove the requirement to include hypothetical excess tax benefits in the application of the treasury stock method when computing earnings per share; and provided for a new policy election to either: (1) continue applying forfeiture rate estimates in the determination of compensation cost, or (2) account for forfeitures as a reduction of share-based compensation cost as they occur. The new guidance also requires cash flows related to excess tax benefits to be classified as an operating activity in the cash flow statement and now requires shares withheld for tax withholding purposes to be classified as a financing activity. While the Company is still evaluating the impact of adoption of the new guidance, it believes the new standard will cause volatility in its effective tax rates as well as basic and diluted earnings per share due to the tax effects related to share-based payments being recorded to the income statement (rather than equity.) The volatility in future periods will depend on the Company’s stock price at the awards’ vesting dates, geographical mix and tax rates in applicable jurisdictions, as well as the number of awards that vest in each period. The Company will adopt provisions related to recognition of excess tax benefits and tax deficiencies in income on a prospective basis and is in the process of evaluating transition alternatives for various other provisions of the new guidance. The Company will not change its accounting policy and will continue to estimate forfeitures in the determination of its compensation cost. In addition, cash flows related to excess tax benefits will be included in cash provided by operating activities and will no longer be separately classified as a financing activity. Further, consistent with historical presentation, the Company will continue to classify shares withheld for tax withholding purposes as a financing activity. Simplifying the Measurement for Goodwill — Effective January 1, 2017, the Company will early adopt the new accounting guidance simplifying the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance will be applied prospectively. The Company does not expect the adoption of this amended guidance to have an impact on its financial results. Revenue Recognition — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP and permits the use of either the retrospective or modified retrospective transition method. The update requires significant additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09, as amended by ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , is effective for years beginning after December 15, 2017, including interim periods, with early adoption permitted for years beginning after December 15, 2016. Since the issuance of ASU 2014-09, the FASB has issued additional interpretive guidance, including new accounting standards updates, that clarify certain points of the standard and modify certain requirements. The Company has performed a review of the requirements of the new revenue standard and is monitoring the activity of the FASB and the transition resource group as it relates to specific interpretive guidance. It is reviewing customer contracts and is in the process of applying the five-step model of the new standard to each contract category it has identified and will compare the results to its current accounting practices. The Company plans to adopt ASU 2014-09, as well as other clarifications and technical guidance issued by the FASB related to this new revenue standard, on January 1, 2018. The Company expects the new standard could change the amount and timing of revenue and costs under certain arrangement types. The Company is also assessing pricing provisions contained in certain of its customer contracts. Pricing provisions contained in some of its customer contracts represent variable consideration or may provide the customer with a material right, potentially resulting in a different allocation of the transaction price than under current guidance. Due to the complexity of certain of the Company’s contracts, the actual revenue recognition treatment required under the new standard for these arrangements may be dependent on contract-specific terms and may vary in some instances. The Company has not yet determined what impact the new guidance will have on its consolidated financial statements and/or related disclosures or concluded on the transition method. The Company expects to further its assessment of the financial impact of the new guidance on its consolidated financial statements in 2017. Leases — Effective January 1, 2019, the Company will be required to adopt the new guidance of ASC Topic 842, Leases (with early adoption permitted effective January 1, 2018.) This amendment supersedes previous accounting guidance (Topic 840) and requires all leases, with the exception of leases with a term of twelve months or less, to be recorded on the balance sheet as lease assets and lease liabilities. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The transition guidance in Topic 842 also provides specific guidance for the amounts previously recognized in accordance with the business combinations guidance for leases. The Company has not yet completed its assessment of the impact of the new guidance on its consolidated financial statements, when it will adopt the standard, or concluded on whether it will elect to apply practical expedients. Measurement of Credit Losses on Financial Instruments — Effective January 1, 2020, the Company will be required to adopt the amended guidance of ASC Topic 326, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial instruments , (with early adoption permitted effective January 1, 2019.) The amendments in this update change how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including trade receivables) that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. Entities are required to adopt the standard using a modified-retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The Company has not yet completed its assessment of the impact of the new guidance on its consolidated financial statements or concluded on when it will adopt the standard. Tax Accounting for Intra-Entity Asset Transfers — Effective January 1, 2018, with early adoption permitted, the Company will be required to adopt the accounting guidance ASU 2016-16, Accounting for Income taxes: Inter-Entity Asset Transfers of Assets Other than Inventory, that will require the tax effects of intra-entity asset transfers to be recognized in the period when the transfer occurs. Under current guidance, the tax effects of intra-entity sales of assets are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The new guidance does not apply to intra-entity transfers of inventory and is required to be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The Company has not yet completed its assessment of the impact of the new guidance on its consolidated financial statements or concluded on when it will adopt the standard. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
2015 Acquisitions | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following is a summary of the estimated fair values of the net assets acquired at the date of each respective acquisition as originally reported during the year 2015 and at December 31, 2016 : NavigationArts AGS Total As Originally Reported Final as of September 30, 2016 As Originally Reported Final as of December 31, 2016 As Originally Reported Final as of Cash and cash equivalents $ 1,317 $ 1,317 $ 1,727 $ 1,727 $ 3,044 $ 3,044 Accounts receivable and other current assets 3,920 3,920 10,600 9,934 14,520 13,854 Property and equipment and other long-term assets 230 230 1,665 1,600 1,895 1,830 Deferred tax assets — — 4,996 5,722 4,996 5,722 Acquired intangible assets 1,500 2,800 10,000 22,700 11,500 25,500 Goodwill 23,822 23,794 33,815 24,454 57,637 48,248 Total assets acquired 30,789 32,061 62,803 66,137 93,592 98,198 Accounts payable and accrued expenses 871 871 3,087 2,760 3,958 3,631 Bank loans and other long-term liabilities — — — 295 — 295 Deferred revenue 50 50 1,049 1,049 1,099 1,099 Due to employees 596 596 3,010 2,342 3,606 2,938 Deferred tax liabilities 525 — 3,800 7,974 4,325 7,974 Total liabilities assumed 2,042 1,517 10,946 14,420 12,988 15,937 Net assets acquired $ 28,747 $ 30,544 $ 51,857 $ 51,717 $ 80,604 $ 82,261 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table presents the estimated fair values and useful lives of intangible assets acquired during the year ended December 31, 2015 : NavigationArts AGS Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 10 $ 2,800 10 $ 22,700 Total $ 2,800 $ 22,700 |
2014 Acquisition | |
Business Acquisition [Line Items] | |
Summary of Acquisitions in Exchange for Common Stock and/or Cash | The following table discloses details of purchase price consideration of each of the 2014 acquisitions: Name of Acquisition Effective Date of Acquisition Common Shares Fair Value of Common Shares Cash, Net of Working Capital and Other Adjustments Recorded Earnout Payable Total Recorded Purchase Price Maximum Potential Earnout Payable Issued Deferred Issued Deferred Paid Deferred Cash Stock (in shares) (in thousands) Netsoft March 5, 2014 — — $ — $ — $ 2,403 $ 1,022 $ 1,825 $ — $ 5,250 $ 1,825 Jointech April 30, 2014 — 89,552 — 2,788 10,000 4,000 15,000 5,000 36,788 20,000 GGA* June 6, 2014 — — — — 14,892 — 11,400 — 26,292 Great Fridays October 31, 2014 — — — — 10,777 — 1,173 — 11,950 1,173 — 89,552 $ — $ 2,788 $ 38,072 $ 5,022 $ 29,398 $ 5,000 $ 80,280 * Earn-out for GGA had no maximum limit. The determination period ended as of December 31, 2014. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following is a summary of the estimated fair values of the net assets acquired at the date of each respective acquisition during the year ended December 31, 2014 as originally reported in the quarterly condensed consolidated financial statements and at December 31, 2015: Netsoft Jointech GGA Great Fridays Total As Originally Reported Final as of March 31, 2015 As Originally Reported Final as of June 30, 2015 As Originally Reported Final as of June 30, 2015 As Originally Reported Final as of December 31, 2015 As Originally Reported Final as of December 31, 2015 Cash and cash equivalents $ — $ — $ 871 $ 871 $ — $ — $ 259 $ 259 $ 1,130 $ 1,130 Trade receivables and other current assets 788 788 784 784 5,157 5,377 1,825 1,825 8,554 8,774 Property and equipment and other long-term assets 52 52 338 338 444 306 262 262 1,096 958 Deferred tax assets 351 — — — 4,463 — — — 4,814 — Acquired intangible assets 1,700 1,700 25,744 15,312 10,959 16,000 5,747 200 44,150 33,212 Goodwill 2,776 2,779 11,033 23,758 6,496 7,306 6,947 11,262 27,252 45,105 Total assets acquired 5,667 5,319 38,770 41,063 27,519 28,989 15,040 13,808 86,996 89,179 Accounts payable and accrued expenses 69 69 728 728 2,593 2,593 872 807 4,262 4,197 Deferred revenue — — — — — 104 317 317 317 421 Due to employees — — 1,254 1,254 — — 624 624 1,878 1,878 Deferred tax liabilities — — — 2,293 — — 1,200 110 1,200 2,403 Total liabilities assumed 69 69 1,982 4,275 2,593 2,697 3,013 1,858 7,657 8,899 Net assets acquired $ 5,598 $ 5,250 $ 36,788 $ 36,788 $ 24,926 $ 26,292 $ 12,027 $ 11,950 $ 79,339 $ 80,280 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table presents the estimated fair values and useful lives of intangible assets acquired during the year ended December 31, 2014: Netsoft Jointech GGA Great Fridays Weighted Average Amount Weighted Average Amount Weighted Average Amount Weighted Average Amount Customer relationships 10 $ 1,700 10 $ 15,000 10 $ 16,000 3 $ 200 Trade names — — 2 312 — — — — Total $ 1,700 $ 15,312 $ 16,000 $ 200 |
GOODWILL AND INTANGIBLE ASSET30
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill By Reportable Segment | Goodwill by reportable segment was as follows: North America Europe Total Balance as of January 1, 2015 $ 31,078 $ 26,339 $ 57,417 Acquisition of NavigationArts (Note 3) 23,822 — 23,822 Acquisition of AGS (Note 3) 33,815 — 33,815 Netsoft purchase accounting adjustment (Note 3) 30 — 30 Jointech purchase accounting adjustment (Note 3) — 6,181 6,181 GGA purchase accounting adjustment (Note 3) (4,807 ) — (4,807 ) Great Fridays purchase accounting adjustment (Note 3) — 4,315 4,315 NavigationArts purchase accounting adjustment (Note 3) (2,058 ) — (2,058 ) Effect of net foreign currency exchange rate changes (416 ) (2,369 ) (2,785 ) Balance as of December 31, 2015 81,464 34,466 115,930 NavigationArts purchase accounting adjustment (Note 3) 2,030 — 2,030 AGS purchase accounting adjustment (Note 3) (9,361 ) — (9,361 ) Other acquisitions 2,404 177 2,581 Other acquisitions purchase accounting adjustment 395 87 482 Effect of net foreign currency exchange rate changes (120 ) (2,253 ) (2,373 ) Balance as of December 31, 2016 $ 76,812 $ 32,477 $ 109,289 |
Components of Intangible Assets | Intangible assets other than goodwill for the years ended December 31, 2016 and 2015 were as follows: As of December 31, 2016 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 10 $ 65,409 $ (15,133 ) $ 50,276 Trade names 5 5,622 (4,661 ) 961 Non-competition agreements 4 756 (733 ) 23 Total $ 71,787 $ (20,527 ) $ 51,260 As of December 31, 2015 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 10 $ 52,974 $ (8,387 ) $ 44,587 Trade names 5 5,853 (3,772 ) 2,081 Non-competition agreements 4 746 (554 ) 192 Total $ 59,573 $ (12,713 ) $ 46,860 |
Finite-lived Intangible Assets Amortization Expense | All of the intangible assets have finite lives and as such are subject to amortization. Recognized amortization expense for each of the years ended December 31 is presented in the table below: For the Years Ended December 31, 2016 2015 2014 Customer relationships $ 6,858 $ 3,961 $ 3,843 Trade names 1,139 1,280 1,319 Non-competition agreements 173 175 187 Total $ 8,170 $ 5,416 $ 5,349 |
Estimated Amortization Expenses | Estimated amortization expense related to the Company’s existing intangible assets for the next five years ending December 31 was as follows: Amount 2017 $ 7,482 2018 6,539 2019 6,539 2020 6,539 2021 6,539 Thereafter 17,622 Total $ 51,260 |
PREPAID AND OTHER CURRENT ASS31
PREPAID AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid and Other Current Assets | Prepaid and other assets consisted of the following: December 31, December 31, Taxes receivable $ 6,054 $ 7,954 Prepaid expenses 5,462 4,693 Unamortized software licenses and subscriptions 1,550 699 Security deposits under operating leases 1,323 575 Notes receivable, net of allowance of $580 and $0, respectively 710 — Other, net of allowance of $64 and $0, respectively 591 423 Total $ 15,690 $ 14,344 |
EMPLOYEE LOANS AND ALLOWANCE 32
EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Leases Receivable, Related Parties Disclosure [Abstract] | |
Categories of Employee Loans Included in Loans Portfolio | At December 31, 2016 and December 31, 2015 , categories of employee loans included in the loan portfolio were as follows: December 31, December 31, Housing loans $ 5,448 $ 5,654 Relocation and other loans 530 684 Total employee loans 5,978 6,338 Less: Allowance for loan losses — — Total loans, net of allowance for loan losses $ 5,978 $ 6,338 |
RESTRICTED CASH AND TIME DEPO33
RESTRICTED CASH AND TIME DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Deposits and Restricted Cash | Restricted cash and time deposits consisted of the following: December 31, December 31, Restricted cash, short-term $ 2,400 $ — Time deposits 403 30,181 Other long-term security deposits 239 238 Total $ 3,042 $ 30,419 |
PROPERTY AND EQUIPMENT - NET (T
PROPERTY AND EQUIPMENT - NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: Weighted Average Useful Life (in years) December 31, December 31, Computer hardware 3 $ 49,599 $ 36,612 Building 49 34,012 34,002 Furniture and fixtures 7 13,178 8,990 Office equipment 7 9,416 8,307 Leasehold improvements 4 7,944 6,801 Purchased computer software 5 4,601 4,099 Land improvements 20 1,467 1,464 120,217 100,275 Less accumulated depreciation and amortization (46,601 ) (39,776 ) Total $ 73,616 $ 60,499 |
ACCRUED EXPENSES AND OTHER LI35
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following: December 31, December 31, Compensation $ 33,404 $ 47,285 Deferred revenue 3,319 3,047 Subcontractor costs 3,317 4,360 Professional fees 2,348 2,251 Business trips 2,324 939 Facilities costs 1,534 1,538 Insurance costs 1,091 810 Acquisition related deferred consideration — 603 Deferred tax liabilities — 365 Other 2,558 2,598 Total $ 49,895 $ 63,796 |
TAXES PAYABLE TAXES PAYABLE (Ta
TAXES PAYABLE TAXES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Taxes Payable, Current [Abstract] | |
TaxesPayable | Current taxes payable consisted of the following: December 31, December 31, Corporate profit tax $ 4,000 $ 15,057 Value added taxes 10,644 8,553 Payroll, social security, and other taxes 10,364 5,862 Total $ 25,008 $ 29,472 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income before provision of income taxes | Income before provision for income taxes included income from domestic operations and income from foreign operations based on geographic location as disclosed in the table below: For the Years Ended December 31, 2016 2015 2014 Income/ (loss) before income tax expense: Domestic $ (9,300 ) $ (7,687 ) $ (7,229 ) Foreign 135,766 113,757 94,182 Total $ 126,466 $ 106,070 $ 86,953 |
Components of income tax expense | The provision for income taxes consists of the following: For the Years Ended December 31, 2016 2015 2014 Income tax expense (benefit) consists of: Current Federal $ 13,324 $ 19,851 $ 7,741 State (63 ) 2,563 338 Foreign 17,243 14,528 12,504 Deferred Federal (3,581 ) (13,361 ) (3,979 ) State 312 (1,891 ) (43 ) Foreign (35 ) (76 ) 751 Total $ 27,200 $ 21,614 $ 17,312 |
Components of deferred tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, December 31, Deferred tax assets: Property and equipment $ 203 $ 681 Intangible assets 1,525 1,428 Accrued expenses 9,172 10,729 Net operating loss carryforward 5,368 5,233 Deferred revenue 1,165 2,162 Stock-based compensation 19,701 12,484 Other assets 17 14 Deferred tax assets 37,151 32,731 Deferred tax liabilities: Property and equipment 1,735 646 Intangible assets 4,969 1,598 Accrued revenue and expenses 500 511 Stock-based compensation 1,606 1,672 Other liabilities 314 912 Deferred tax liabilities 9,124 5,339 Net deferred tax assets $ 28,027 $ 27,392 |
Reconciliation of effective income tax | The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows: For the Years Ended December 31, 2016 2015 2014 Statutory federal tax $ 44,263 $ 37,125 $ 29,564 Increase/ (decrease) in taxes resulting from: State taxes, net of federal benefit 1,192 341 311 Provision adjustment for current year uncertain tax position — — (1,220 ) Effect of permanent differences 5,042 7,314 8,589 Stock-based compensation expense 9,535 7,591 3,782 Foreign tax expense and tax rate differential (33,477 ) (31,094 ) (24,772 ) Change in foreign tax rate — 9 754 Change in valuation allowance — — 149 Other 645 328 155 Provision for income taxes $ 27,200 $ 21,614 $ 17,312 |
Unrecognized tax benefits | The beginning to ending reconciliation of the gross unrecognized tax benefits is as follows: For the Years Ended December 31, 2016 2015 2014 Balance at January 1 $ 62 $ 200 $ 1,271 Increases in tax positions in current year 4 — — Increases in tax positions in prior year — — — Decreases due to settlement — (138 ) (1,071 ) Balance at December 31 $ 66 $ 62 $ 200 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Costs Related to Stock Compensation Plans | The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income and comprehensive income: For the Years Ended December 31, 2016 2015 2014 Cost of revenues $ 16,619 $ 13,695 $ 8,648 Selling, general and administrative expenses — Acquisition related 12,884 18,690 8,829 Selling, general and administrative expenses — All other 19,741 13,448 7,143 Total $ 49,244 $ 45,833 $ 24,620 |
Stock Option Activity | Stock option activity under the Company’s plans is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value Options outstanding at January 1, 2014 5,823,536 $ 13.99 $ 122,003 Options granted 2,400,500 32.51 36,584 Options exercised (1,171,097 ) 9.05 (45,321 ) Options forfeited/cancelled (214,193 ) 25.33 (4,802 ) Options outstanding at December 31, 2014 6,838,746 $ 20.98 $ 183,073 Options granted 2,219,725 62.18 36,492 Options exercised (1,405,826 ) 14.70 (89,860 ) Options forfeited/cancelled (201,731 ) 34.48 (8,904 ) Options outstanding at December 31, 2015 7,450,914 $ 34.07 $ 331,938 Options granted 313,088 70.27 (1,866 ) Options exercised (895,804 ) 20.13 (39,577 ) Options forfeited/cancelled (227,759 ) 47.89 (3,740 ) Options expired (3,200 ) 1.52 (201 ) Options outstanding at December 31, 2016 6,637,239 $ 37.20 $ 179,936 Options vested and exercisable at December 31, 2016 3,350,682 $ 25.96 $ 128,499 Options expected to vest 3,127,635 $ 48.28 $ 50,136 |
Service-based Awards Activity | The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the years ended December 31, 2016 , 2015 and 2014 : Equity-Classified Equity-Settled Restricted Stock Equity-Classified Equity-Settled Restricted Stock Units Liability-Classified Cash-Settled Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested service-based awards outstanding at January 1, 2014 344,928 $ 18.74 — $ — — $ — Awards granted 452,720 41.63 70,500 32.55 — — Awards vested (217,668 ) 17.84 — — — — Awards forfeited/cancelled (17,038 ) 21.14 — — — — Unvested service-based awards outstanding at December 31, 2014 562,942 $ 37.42 70,500 $ 32.55 — $ — Awards granted 5,295 70.79 108,319 67.21 — — Awards vested (261,504 ) 33.74 (17,625 ) 32.55 — — Awards forfeited/cancelled 106 36.57 (11,922 ) 34.49 — — Unvested service-based awards outstanding at December 31, 2015 306,839 $ 41.14 149,272 $ 57.55 — $ — Awards granted 6,510 73.00 408,629 70.39 207,586 70.53 Awards vested (156,535 ) 42.64 (41,015 ) 55.60 — — Awards forfeited/cancelled (2,689 ) 45.32 (31,698 ) 70.44 (3,085 ) 70.52 Unvested service-based awards outstanding at December 31, 2016 154,125 $ 40.89 485,188 $ 67.69 204,501 $ 70.53 |
Performance-based Awards Activity | Summarized activity related to the Company’s performance-based awards for the years ended December 31, 2016 , was as follows: Equity-Classified Liability-Classified Equity-Classified Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Unvested performance-based awards outstanding at January 1, 2014 — $ — — $ — — $ — Awards granted 26,441 38.91 360,617 38.13 — — Awards vested — — — — — — Awards forfeited/cancelled (2,550 ) 36.57 — — — — Changes in the number of awards expected to be delivered 9,154 36.57 (22,152 ) 18.32 — — Unvested performance-based awards outstanding at December 31, 2014 33,045 $ 38.44 338,465 $ 39.43 — $ — Awards granted — — — — 14,000 70.22 Awards vested (12,145 ) 39.92 (105,604 ) 40.44 — — Awards forfeited/cancelled (1,360 ) 36.57 — — — — Changes in the number of awards expected to be delivered 2,550 36.57 (21,655 ) 32.27 — — Unvested performance-based awards outstanding at December 31, 2015 22,090 $ 37.52 211,206 $ 39.65 14,000 $ 70.22 Awards granted — — — — — — Awards vested (9,978 ) 40.15 (105,604 ) 40.44 (4,666 ) 70.22 Awards forfeited/cancelled (6,539 ) 36.97 — — (4,667 ) 70.22 Unvested performance-based awards outstanding at December 31, 2016 5,573 $ 33.47 105,602 $ 38.86 4,667 $ 70.22 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of common stock as follows: For the Years Ended December 31, 2016 2015 2014 Numerator for common earnings per share: Net income $ 99,266 $ 84,456 $ 69,641 Numerator for basic and diluted earnings per share $ 99,266 $ 84,456 $ 69,641 Denominator for basic and diluted earnings per share: Weighted average common shares outstanding 50,309 48,721 47,189 Effect of dilutive securities: Stock options, RSUs and performance-based awards 2,906 3,265 2,545 Denominator for diluted earnings per share 53,215 51,986 49,734 Net income per share: Basic $ 1.97 $ 1.73 $ 1.48 Diluted $ 1.87 $ 1.62 $ 1.40 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum rental payments under operating leases | Future minimum rental payments under operating leases that have initial or remaining lease terms in excess of one year as of December 31, 2016 were as follows: Year Ending December 31, Operating Leases 2017 $ 30,791 2018 24,706 2019 16,044 2020 10,271 2021 7,170 Thereafter 11,098 Total minimum lease payments $ 100,080 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Liabilities Measured at Fair Value on a Recurring Basis | The following tables show the fair values of the Company’s financial liabilities measured at fair value on a recurring basis as of December 31, 2016 and 2015 : As of December 31, 2016 Balance Level 1 Level 2 Level 3 Performance-based equity awards $ 3,789 $ 3,789 $ — $ — Cash-settled restricted stock units 2,111 2,111 — — Total liabilities measured at fair value on a recurring basis $ 5,900 $ 5,900 $ — $ — As of December 31, 2015 Balance Level 1 Level 2 Level 3 Performance-based equity awards $ 5,364 $ — $ — $ 5,364 Total liabilities measured at fair value on a recurring basis $ 5,364 $ — $ — $ 5,364 |
Reconciliation of Liabilities Measured on Recurring Basis, Unobservable Input | The fair value of the cash-settled restricted stock units is measured using prices for which observable market information is available. A reconciliation of the beginning and ending balances of acquisition-related contractual contingent liabilities using significant unobservable inputs (Level 3) for the years ended December 31, 2016 and 2015 , was as follows: Amount Contractual contingent liabilities at January 1, 2014 $ — Acquisition date fair value of contractual contingent liabilities — Netsoft 1,825 Acquisition date fair value of contractual contingent liabilities — Jointech 20,000 Acquisition date fair value of contractual contingent liabilities — GGA 11,400 Acquisition date fair value of contractual contingent liabilities — Great Fridays 1,173 Liability-classified stock-based awards 3,088 Changes in fair value of contractual contingent liabilities included in earnings 2,059 Changes in fair value of contractual contingent liabilities recorded against goodwill 1,366 Effect of net foreign currency exchange rate changes (288 ) Contractual contingent liabilities at December 31, 2014 40,623 Liability-classified stock-based awards 5,148 Changes in fair value of contractual contingent liabilities included in earnings 4,355 Effect of net foreign currency exchange rate changes 246 Settlements of contractual contingent liabilities (45,008 ) Contractual contingent liabilities at December 31, 2015 5,364 Acquisition date fair value of contractual contingent liabilities — other acquisitions 800 Liability-classified stock-based awards 5,148 Changes in fair value of contractual contingent liabilities included in earnings 1,232 Changes in fair value of contractual contingent liabilities recorded against goodwill 200 Settlements of contractual contingent liabilities (8,955 ) Reclassification of contractual contingent liabilities out of Level 3 (3,789 ) Contractual contingent liabilities at December 31, 2016 $ — |
Financial Assets and Liabilities not Measured on a Recurring Basis | The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2016 Financial Assets: Cash and cash equivalents $ 362,025 $ 362,025 $ 362,025 $ — $ — Time deposits and restricted cash $ 3,042 $ 3,042 $ — $ 3,042 $ — Employee loans $ 5,978 $ 5,978 $ — $ — $ 5,978 Financial Liabilities: Borrowing under 2014 Credit Facility $ 25,019 $ 25,019 $ — $ 25,019 $ — Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2015 Financial Assets: Cash and cash equivalents $ 199,449 $ 199,449 $ 199,449 $ — $ — Time deposits and restricted cash $ 30,419 $ 30,419 $ — $ 30,419 $ — Employee loans $ 6,338 $ 6,338 $ — $ — $ 6,338 Financial Liabilities: Borrowing under 2014 Credit Facility $ 35,000 $ 35,000 $ — $ 35,000 $ — |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenues from External Customers and Segment Operating Profit Before Unallocated Expenses | Revenues from external customers and segment operating profit, before unallocated expenses, for the North America, Europe, Russia and Other reportable segments were as follows: For the years ended December 31, 2016 2015 2014 Total segment revenues: North America $ 642,216 $ 471,603 $ 374,509 Europe 474,988 400,460 299,279 Russia 43,611 37,992 50,663 Other — 4,911 5,552 Total segment revenues $ 1,160,815 $ 914,966 $ 730,003 Segment operating profit: North America $ 143,021 $ 112,312 $ 90,616 Europe 67,545 68,717 50,189 Russia 7,555 5,198 7,034 Other — (94 ) (3,220 ) Total segment operating profit $ 218,121 $ 186,133 $ 144,619 |
Reconciliation of Segment Revenues and Operating Profit to Consolidated Income Before Provision for Income Taxes | Reconciliation of segment revenues and operating profit to consolidated income before provision for income taxes is presented below: For the Years Ended December 31, 2016 2015 2014 Total segment revenues $ 1,160,815 $ 914,966 $ 730,003 Unallocated (revenue)/loss (683 ) (838 ) 24 Revenues $ 1,160,132 $ 914,128 $ 730,027 Total segment operating profit: $ 218,121 $ 186,133 $ 144,619 Unallocated amounts: Other (revenues)/loss (683 ) (838 ) 24 Stock-based compensation expense (49,244 ) (45,833 ) (24,620 ) Non-corporate taxes (5,909 ) (4,274 ) (6,882 ) Professional fees (8,265 ) (7,104 ) (5,312 ) Depreciation and amortization (8,290 ) (5,581 ) (7,988 ) Bank charges (1,515 ) (1,352 ) (1,049 ) One-time charges (706 ) (747 ) (5,983 ) Other corporate expenses (9,813 ) (14,437 ) (6,626 ) Income from operations 133,696 105,967 86,183 Interest and other income, net 4,848 4,731 4,769 Change in fair value of contingent consideration — — (1,924 ) Foreign exchange loss (12,078 ) (4,628 ) (2,075 ) Income before provision for income taxes $ 126,466 $ 106,070 $ 86,953 |
Geographical Information of Long-Lived Assets Based on Physical Location | Geographical information about the Company’s long-lived assets based on physical location of the assets was as follows: December 31, December 31, Belarus $ 46,011 $ 44,879 Russia 7,203 2,084 Ukraine 5,610 4,487 Hungary 3,485 2,485 United States 2,618 1,969 Poland 2,213 1,088 China 1,887 514 India 1,650 1,099 Other 2,939 1,894 Total $ 73,616 $ 60,499 |
Revenues by Client Location | Information about the Company’s revenues by client location is as follows: For the Years Ended December 31, 2016 2015 2014 United States $ 605,856 $ 427,433 $ 318,304 United Kingdom 174,719 164,301 141,366 Switzerland 122,399 111,353 87,111 Canada 58,742 57,643 49,193 Germany 43,216 36,089 25,740 Russia 40,866 36,506 48,945 Sweden 22,945 10,589 7,892 Hong Kong 20,333 23,117 13,445 Netherlands 16,762 9,989 8,838 Belgium 8,505 7,916 4,198 Ireland 5,152 5,437 3,667 China 4,445 817 — Italy 3,970 2,318 1,746 Spain 3,406 1,028 106 Other locations 16,295 10,081 11,066 Reimbursable expenses and other revenues 12,521 9,511 8,410 Revenues $ 1,160,132 $ 914,128 $ 730,027 |
Revenues by Service Offering | Information about the Company’s revenues by service offering is as follows: For the Years Ended December 31, 2016 2015 2014 Software development $ 841,916 $ 644,732 $ 504,590 Application testing services 223,010 174,259 140,363 Application maintenance and support 74,475 70,551 58,840 Infrastructure services 5,069 11,311 14,198 Licensing 3,141 3,764 3,626 Reimbursable expenses and other revenues 12,521 9,511 8,410 Revenues $ 1,160,132 $ 914,128 $ 730,027 |
QUARTERLY FINANCIAL DATA (Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly results for the two years ended December 31, 2016 and 2015 were as follows: Three Months Ended 2016 March 31 June 30 September 30 December 31 Full Year Revenues $ 264,482 $ 283,832 $ 298,293 $ 313,525 $ 1,160,132 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 167,381 180,782 190,797 198,226 737,186 Selling, general and administrative expenses 61,494 64,241 67,491 71,432 264,658 Depreciation and amortization expense 5,102 6,123 5,925 6,237 23,387 Other operating expenses, net 174 606 178 247 1,205 Income from operations 30,331 32,080 33,902 37,383 133,696 Interest and other income, net 1,211 1,138 1,067 1,432 4,848 Foreign exchange loss (1,290 ) (2,295 ) (1,728 ) (6,765 ) (12,078 ) Income before provision for income taxes 30,252 30,923 33,241 32,050 126,466 Provision for income taxes 6,353 6,493 7,067 7,287 27,200 Net income $ 23,899 $ 24,430 $ 26,174 $ 24,763 $ 99,266 Comprehensive income $ 28,598 $ 22,044 $ 26,532 $ 19,554 $ 96,728 Basic net income per share (1) $ 0.48 $ 0.49 $ 0.51 $ 0.49 $ 1.97 Diluted net income per share (1) $ 0.45 $ 0.46 $ 0.49 $ 0.46 $ 1.87 (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 2015 March 31 June 30 September 30 December 31 Full Year Revenues $ 200,045 $ 217,781 $ 236,049 $ 260,253 $ 914,128 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 125,887 134,256 148,479 158,291 566,913 Selling, general and administrative expenses 46,938 55,976 55,431 64,414 222,759 Depreciation and amortization expense 4,200 3,903 4,393 4,899 17,395 Other operating expenses/(income), net 200 40 (30 ) 884 1,094 Income from operations 22,820 23,606 27,776 31,765 105,967 Interest and other income, net 1,158 1,299 865 1,409 4,731 Foreign exchange (loss)/income (5,754 ) (465 ) 32 1,559 (4,628 ) Income before provision for income taxes 18,224 24,440 28,673 34,733 106,070 Provision for income taxes 3,510 5,209 5,800 7,095 21,614 Net income $ 14,714 $ 19,231 $ 22,873 $ 27,638 $ 84,456 Comprehensive income $ 11,984 $ 22,905 $ 14,532 $ 21,939 $ 71,360 Basic net income per share (1) $ 0.31 $ 0.40 $ 0.47 $ 0.56 $ 1.73 Diluted net income per share (1) $ 0.29 $ 0.37 $ 0.44 $ 0.52 $ 1.62 (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. |
VALUATION AND QUALIFYING ACCO44
VALUATION AND QUALIFYING ACCOUNTS (Valuation and Qualifying Accounts)(Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The table below summarizes movements in qualifying accounts, which include accounts receivable and notes receivable (from customers) for the years ended December 31, 2016 , 2015 and 2014 : Balance at Beginning of Year Charged to Expenses Deductions/ Write offs Balance at End of Year Fiscal Year 2014 $ 1,800 $ 1,325 $ (944 ) $ 2,181 Fiscal Year 2015 2,181 1,704 (2,156 ) 1,729 Fiscal Year 2016 1,729 3,500 (3,215 ) 2,014 |
NATURE OF BUSINESS AND SIGNIF45
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Reclassification) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income from operations | |
Effect of Reclassification Adjustments [Line Items] | |
Impact of reclassification of IS line items | $ 0 |
NATURE OF BUSINESS AND SIGNIF46
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Revenue Recognition) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Time and Material Contracts | Sales Revenue, Net | Product Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 88.20% | 85.80% | 84.70% |
Fixed Price Contracts | |||
Concentration Risk [Line Items] | |||
Revenue recognition period | 12 months | ||
Fixed Price Contracts | Sales Revenue, Net | Product Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 10.40% | 12.80% | 13.60% |
NATURE OF BUSINESS AND SIGNIF47
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Employee Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans issued to principal officers, directors, or their affiliates | $ 0 | $ 0 | $ 0 |
Non-accrual employee loans | 0 | 0 | |
Material loans past due | 0 | 0 | |
Material loans written-off | 0 | ||
Allowance for employee loans | $ 0 | $ 0 |
NATURE OF BUSINESS AND SIGNIF48
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Cash and Cash Equivalents) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Cash equivalents | $ 0 | $ 0 |
NATURE OF BUSINESS AND SIGNIF49
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Weighted Average Useful Life (in years) | 2 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Weighted Average Useful Life (in years) | 50 years |
NATURE OF BUSINESS AND SIGNIF50
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Impairment of Long-Lived Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Impairment of long-lived assets | $ 0 | $ 0 | |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of long-lived assets | $ 1,149 |
NATURE OF BUSINESS AND SIGNIF51
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Risks and Uncertainties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Revenues | $ 1,160,132 | $ 914,128 | $ 730,027 |
Customer Concentration Risk | Sales Revenue, Net | Top Five Customers | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 28.20% | 32.60% | 32.80% |
Revenues | $ 327,092 | $ 298,063 | $ 239,396 |
Customer Concentration Risk | Sales Revenue, Net | Top Ten Customers | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 38.10% | 43.80% | 43.90% |
Revenues | $ 442,253 | $ 400,250 | $ 320,126 |
CIS Countries | Geographic Concentration Risk | Assets, Total | |||
Concentration Risk [Line Items] | |||
Cash including time deposits and restricted cash | 194,600 | ||
Belarus | Geographic Concentration Risk | Assets, Total | |||
Concentration Risk [Line Items] | |||
Cash including time deposits and restricted cash | $ 153,800 |
ACQUISITIONS (Earnout Obligatio
ACQUISITIONS (Earnout Obligation) (Details) - USD ($) $ in Thousands | Nov. 16, 2015 | Jul. 10, 2015 | Oct. 31, 2014 | Jun. 06, 2014 | Apr. 30, 2014 | Mar. 05, 2014 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||||||
Cash, Net of Working Capital and Other Adjustments, Deferred | $ 2,260 | $ 30,274 | $ 4,000 | |||||||
2015 Acquisitions | NavigationArts | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash, Net of Working Capital and Other Adjustments, Paid | $ 28,747 | |||||||||
Cash, Net of Working Capital and Other Adjustments, Deferred | $ 1,797 | |||||||||
2015 Acquisitions | AGS | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash, Net of Working Capital and Other Adjustments, Paid | $ 51,717 | |||||||||
2014 Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash, Net of Working Capital and Other Adjustments, Paid | 38,072 | |||||||||
Cash, Net of Working Capital and Other Adjustments, Deferred | 5,022 | |||||||||
Recorded Earnout Payable, Cash | 29,398 | |||||||||
Recorded Earnout Payable, Stock | 5,000 | |||||||||
Total Recorded Purchase Price | $ 80,280 | |||||||||
2014 Acquisition | Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common Shares, Issued (in shares) | 0 | |||||||||
Common Shares, Deferred (in shares) | 89,552 | |||||||||
Fair Value of Common Shares, Issued | $ 0 | |||||||||
Fair Value of Common Shares, Deferred | $ 2,788 | |||||||||
2014 Acquisition | Netsoft | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash, Net of Working Capital and Other Adjustments, Paid | $ 2,403 | |||||||||
Cash, Net of Working Capital and Other Adjustments, Deferred | 1,022 | |||||||||
Recorded Earnout Payable, Cash | 1,825 | |||||||||
Recorded Earnout Payable, Stock | 0 | |||||||||
Total Recorded Purchase Price | $ 5,250 | |||||||||
2014 Acquisition | Netsoft | Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common Shares, Issued (in shares) | 0 | |||||||||
Common Shares, Deferred (in shares) | 0 | |||||||||
Fair Value of Common Shares, Issued | $ 0 | |||||||||
Fair Value of Common Shares, Deferred | 0 | |||||||||
2014 Acquisition | Netsoft | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Maximum Potential Earnout Payable | $ 1,825 | |||||||||
2014 Acquisition | Jointech | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash, Net of Working Capital and Other Adjustments, Paid | $ 10,000 | |||||||||
Cash, Net of Working Capital and Other Adjustments, Deferred | 4,000 | |||||||||
Recorded Earnout Payable, Cash | 15,000 | |||||||||
Recorded Earnout Payable, Stock | 5,000 | |||||||||
Total Recorded Purchase Price | $ 36,788 | |||||||||
2014 Acquisition | Jointech | Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common Shares, Issued (in shares) | 0 | |||||||||
Common Shares, Deferred (in shares) | 89,552 | |||||||||
Fair Value of Common Shares, Issued | $ 0 | |||||||||
Fair Value of Common Shares, Deferred | 2,788 | |||||||||
2014 Acquisition | Jointech | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Maximum Potential Earnout Payable | $ 20,000 | |||||||||
2014 Acquisition | GGA | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash, Net of Working Capital and Other Adjustments, Paid | $ 14,892 | |||||||||
Cash, Net of Working Capital and Other Adjustments, Deferred | 0 | |||||||||
Recorded Earnout Payable, Cash | 11,400 | |||||||||
Recorded Earnout Payable, Stock | 0 | |||||||||
Total Recorded Purchase Price | $ 26,292 | |||||||||
2014 Acquisition | GGA | Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common Shares, Issued (in shares) | 0 | |||||||||
Common Shares, Deferred (in shares) | 0 | |||||||||
Fair Value of Common Shares, Issued | $ 0 | |||||||||
Fair Value of Common Shares, Deferred | $ 0 | |||||||||
2014 Acquisition | Great Fridays | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash, Net of Working Capital and Other Adjustments, Paid | $ 10,777 | |||||||||
Cash, Net of Working Capital and Other Adjustments, Deferred | 0 | |||||||||
Recorded Earnout Payable, Cash | 1,173 | |||||||||
Recorded Earnout Payable, Stock | 0 | |||||||||
Total Recorded Purchase Price | $ 11,950 | |||||||||
2014 Acquisition | Great Fridays | Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common Shares, Issued (in shares) | 0 | |||||||||
Common Shares, Deferred (in shares) | 0 | |||||||||
Fair Value of Common Shares, Issued | $ 0 | |||||||||
Fair Value of Common Shares, Deferred | 0 | |||||||||
2014 Acquisition | Great Fridays | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Maximum Potential Earnout Payable | $ 1,173 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) $ in Thousands | Nov. 16, 2015USD ($) | Jul. 10, 2015USD ($) | Oct. 31, 2014USD ($)shares | Jun. 06, 2014USD ($)shares | Apr. 30, 2014USD ($)shares | Mar. 05, 2014USD ($)shares | Jun. 30, 2015shares | Mar. 31, 2015shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)shares |
Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Estimated future operating results period, subsequent to acquisition date | 7 months | ||||||||||
Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Estimated future operating results period, subsequent to acquisition date | 12 months | ||||||||||
2015 Acquisitions | NavigationArts | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ | $ 1,797 | ||||||||||
Cash consideration placed in escrow | $ | $ 2,670 | ||||||||||
Consideration placed in escrow, period | 18 months | ||||||||||
2015 Acquisitions | NavigationArts | Design Consultant | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Numbers of professionals acquired | 90 | ||||||||||
2015 Acquisitions | AGS | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ | $ (140) | ||||||||||
Cash consideration placed in escrow | $ | $ 5,000 | ||||||||||
Consideration placed in escrow, period | 15 months | ||||||||||
2015 Acquisitions | AGS | IT professionals | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Numbers of professionals acquired | 1,151 | ||||||||||
2014 Acquisition | Netsoft | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ | $ (348) | ||||||||||
2014 Acquisition | Netsoft | IT professionals | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Numbers of professionals acquired | 40 | ||||||||||
2014 Acquisition | Jointech | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ | 0 | ||||||||||
Number of former owners | 2 | ||||||||||
2014 Acquisition | Jointech | IT professionals | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Numbers of professionals acquired | 216 | ||||||||||
2014 Acquisition | GGA | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ | 1,366 | ||||||||||
2014 Acquisition | GGA | IT professionals | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Numbers of professionals acquired | 329 | ||||||||||
2014 Acquisition | GGA | Scientists | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Numbers of professionals acquired | 126 | ||||||||||
2014 Acquisition | Great Fridays | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment | $ | $ (77) | ||||||||||
2014 Acquisition | Great Fridays | Designers | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Numbers of professionals acquired | 50 | ||||||||||
2014 Acquisition | Employment Shares | Netsoft | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Vesting period (in years) | 3 years | 3 years | |||||||||
Stock issued or issuable, value assigned | $ | $ 1,017 | ||||||||||
2014 Acquisition | Employment Shares | Jointech | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Vesting period (in years) | 3 years | 3 years | |||||||||
Stock issued or issuable, value assigned | $ | $ 7,788 | ||||||||||
2014 Acquisition | Employment Shares | GGA | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Vesting period (in years) | 3 years | 3 years | |||||||||
Stock issued or issuable, value assigned | $ | $ 20,655 | ||||||||||
2014 Acquisition | Employment Shares | Great Fridays | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Vesting period (in years) | 3 years | 3 years | |||||||||
Stock issued or issuable, value assigned | $ | $ 4,823 | ||||||||||
2014 Acquisition | Employment Shares, Closing Shares | Netsoft | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 2,289 | ||||||||||
2014 Acquisition | Employment Shares, Closing Shares | Jointech | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 89,552 | ||||||||||
2014 Acquisition | Employment Shares, Closing Shares | GGA | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 262,277 | ||||||||||
2014 Acquisition | Employment Shares, Closing Shares | Great Fridays | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 90,864 | ||||||||||
2014 Acquisition | Employment Shares, Earn-Out Shares | Netsoft | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 16,349 | ||||||||||
Common Shares, Deferred (in shares) | 9,154 | ||||||||||
2014 Acquisition | Employment Shares, Earn-Out Shares | Jointech | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 83,057 | ||||||||||
2014 Acquisition | Employment Shares, Earn-Out Shares | GGA | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 233,753 | ||||||||||
2014 Acquisition | Employment Shares, Earn-Out Shares | Great Fridays | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 10,092 | ||||||||||
2014 Acquisition | Common Stock | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 0 | ||||||||||
Common Shares, Deferred (in shares) | 89,552 | ||||||||||
Stock issued or issuable, value assigned | $ | $ 0 | ||||||||||
2014 Acquisition | Common Stock | Netsoft | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 0 | ||||||||||
Common Shares, Deferred (in shares) | 0 | ||||||||||
Stock issued or issuable, value assigned | $ | $ 0 | ||||||||||
2014 Acquisition | Common Stock | Jointech | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 0 | ||||||||||
Common Shares, Deferred (in shares) | 89,552 | ||||||||||
Stock issued or issuable, value assigned | $ | $ 0 | ||||||||||
2014 Acquisition | Common Stock | GGA | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 0 | ||||||||||
Common Shares, Deferred (in shares) | 0 | ||||||||||
Stock issued or issuable, value assigned | $ | $ 0 | ||||||||||
2014 Acquisition | Common Stock | Great Fridays | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Common Shares, Issued (in shares) | 0 | ||||||||||
Common Shares, Deferred (in shares) | 0 | ||||||||||
Stock issued or issuable, value assigned | $ | $ 0 |
ACQUISITIONS (Estimated Fair Va
ACQUISITIONS (Estimated Fair Values) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Nov. 16, 2015 | Jul. 10, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2014 | Jun. 06, 2014 | Apr. 30, 2014 | Mar. 05, 2014 | |
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 109,289 | $ 115,930 | $ 57,417 | |||||||||
2015 Acquisitions | NavigationArts | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Adjustment to net assets acquired | 1,797 | |||||||||||
Goodwill deductable for tax purposes | $ 23,794 | |||||||||||
2015 Acquisitions | AGS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Adjustment to net assets acquired | (140) | |||||||||||
2015 Acquisitions | As Originally Reported | NavigationArts | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | 1,317 | |||||||||||
Accounts receivable and other current assets | 3,920 | |||||||||||
Property and equipment and other long-term assets | 230 | |||||||||||
Deferred tax assets | 0 | |||||||||||
Acquired intangible assets | 1,500 | |||||||||||
Goodwill | 23,822 | |||||||||||
Total assets acquired | 30,789 | |||||||||||
Accounts payable and accrued expenses | 871 | |||||||||||
Bank loans and other long-term liabilities | 0 | |||||||||||
Deferred revenue | 50 | |||||||||||
Due to employees | 596 | |||||||||||
Deferred tax liabilities | 525 | |||||||||||
Total liabilities assumed | 2,042 | |||||||||||
Net assets acquired | $ 28,747 | |||||||||||
2015 Acquisitions | As Originally Reported | AGS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | $ 1,727 | |||||||||||
Accounts receivable and other current assets | 10,600 | |||||||||||
Property and equipment and other long-term assets | 1,665 | |||||||||||
Deferred tax assets | 4,996 | |||||||||||
Acquired intangible assets | 10,000 | |||||||||||
Goodwill | 33,815 | |||||||||||
Total assets acquired | 62,803 | |||||||||||
Accounts payable and accrued expenses | 3,087 | |||||||||||
Bank loans and other long-term liabilities | 0 | |||||||||||
Deferred revenue | 1,049 | |||||||||||
Due to employees | 3,010 | |||||||||||
Deferred tax liabilities | 3,800 | |||||||||||
Total liabilities assumed | 10,946 | |||||||||||
Net assets acquired | $ 51,857 | |||||||||||
2015 Acquisitions | As Originally Reported | Total | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | 3,044 | |||||||||||
Accounts receivable and other current assets | 14,520 | |||||||||||
Property and equipment and other long-term assets | 1,895 | |||||||||||
Deferred tax assets | 4,996 | |||||||||||
Acquired intangible assets | 11,500 | |||||||||||
Goodwill | 57,637 | |||||||||||
Total assets acquired | 93,592 | |||||||||||
Accounts payable and accrued expenses | 3,958 | |||||||||||
Bank loans and other long-term liabilities | 0 | |||||||||||
Deferred revenue | 1,099 | |||||||||||
Due to employees | 3,606 | |||||||||||
Deferred tax liabilities | 4,325 | |||||||||||
Total liabilities assumed | 12,988 | |||||||||||
Net assets acquired | 80,604 | |||||||||||
2015 Acquisitions | Final Valuation [Member] | NavigationArts | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | $ 1,317 | |||||||||||
Accounts receivable and other current assets | 3,920 | |||||||||||
Property and equipment and other long-term assets | 230 | |||||||||||
Deferred tax assets | 0 | |||||||||||
Acquired intangible assets | 2,800 | |||||||||||
Goodwill | 23,794 | |||||||||||
Total assets acquired | 32,061 | |||||||||||
Accounts payable and accrued expenses | 871 | |||||||||||
Bank loans and other long-term liabilities | 0 | |||||||||||
Deferred revenue | 50 | |||||||||||
Due to employees | 596 | |||||||||||
Deferred tax liabilities | 0 | |||||||||||
Total liabilities assumed | 1,517 | |||||||||||
Net assets acquired | $ 30,544 | |||||||||||
2015 Acquisitions | Final Valuation [Member] | AGS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | 1,727 | |||||||||||
Accounts receivable and other current assets | 9,934 | |||||||||||
Property and equipment and other long-term assets | 1,600 | |||||||||||
Deferred tax assets | 5,722 | |||||||||||
Acquired intangible assets | 22,700 | |||||||||||
Goodwill | 24,454 | |||||||||||
Total assets acquired | 66,137 | |||||||||||
Accounts payable and accrued expenses | 2,760 | |||||||||||
Bank loans and other long-term liabilities | 295 | |||||||||||
Deferred revenue | 1,049 | |||||||||||
Due to employees | 2,342 | |||||||||||
Deferred tax liabilities | 7,974 | |||||||||||
Total liabilities assumed | 14,420 | |||||||||||
Net assets acquired | 51,717 | |||||||||||
2015 Acquisitions | Final Valuation [Member] | Total | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | 3,044 | |||||||||||
Accounts receivable and other current assets | 13,854 | |||||||||||
Property and equipment and other long-term assets | 1,830 | |||||||||||
Deferred tax assets | 5,722 | |||||||||||
Acquired intangible assets | 25,500 | |||||||||||
Goodwill | 48,248 | |||||||||||
Total assets acquired | 98,198 | |||||||||||
Accounts payable and accrued expenses | 3,631 | |||||||||||
Bank loans and other long-term liabilities | 295 | |||||||||||
Deferred revenue | 1,099 | |||||||||||
Due to employees | 2,938 | |||||||||||
Deferred tax liabilities | 7,974 | |||||||||||
Total liabilities assumed | 15,937 | |||||||||||
Net assets acquired | $ 82,261 | |||||||||||
2014 Acquisition | Netsoft | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Adjustment to net assets acquired | (348) | |||||||||||
Goodwill deductable for tax purposes | $ 924 | |||||||||||
2014 Acquisition | Jointech | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Adjustment to net assets acquired | 0 | |||||||||||
2014 Acquisition | GGA | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Adjustment to net assets acquired | 1,366 | |||||||||||
Goodwill deductable for tax purposes | $ 7,306 | |||||||||||
2014 Acquisition | Great Fridays | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Adjustment to net assets acquired | (77) | |||||||||||
2014 Acquisition | As Originally Reported | Netsoft | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | 0 | |||||||||||
Accounts receivable and other current assets | 788 | |||||||||||
Property and equipment and other long-term assets | 52 | |||||||||||
Deferred tax assets | 351 | |||||||||||
Acquired intangible assets | 1,700 | |||||||||||
Goodwill | 2,776 | |||||||||||
Total assets acquired | 5,667 | |||||||||||
Accounts payable and accrued expenses | 69 | |||||||||||
Deferred revenue | 0 | |||||||||||
Due to employees | 0 | |||||||||||
Deferred tax liabilities | 0 | |||||||||||
Total liabilities assumed | 69 | |||||||||||
Net assets acquired | $ 5,598 | |||||||||||
2014 Acquisition | As Originally Reported | Jointech | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | $ 871 | |||||||||||
Accounts receivable and other current assets | 784 | |||||||||||
Property and equipment and other long-term assets | 338 | |||||||||||
Deferred tax assets | 0 | |||||||||||
Acquired intangible assets | 25,744 | |||||||||||
Goodwill | 11,033 | |||||||||||
Total assets acquired | 38,770 | |||||||||||
Accounts payable and accrued expenses | 728 | |||||||||||
Deferred revenue | 0 | |||||||||||
Due to employees | 1,254 | |||||||||||
Deferred tax liabilities | 0 | |||||||||||
Total liabilities assumed | 1,982 | |||||||||||
Net assets acquired | $ 36,788 | |||||||||||
2014 Acquisition | As Originally Reported | GGA | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | 0 | |||||||||||
Accounts receivable and other current assets | 5,157 | |||||||||||
Property and equipment and other long-term assets | 444 | |||||||||||
Deferred tax assets | 4,463 | |||||||||||
Acquired intangible assets | 10,959 | |||||||||||
Goodwill | 6,496 | |||||||||||
Total assets acquired | 27,519 | |||||||||||
Accounts payable and accrued expenses | 2,593 | |||||||||||
Deferred revenue | 0 | |||||||||||
Due to employees | 0 | |||||||||||
Deferred tax liabilities | 0 | |||||||||||
Total liabilities assumed | 2,593 | |||||||||||
Net assets acquired | $ 24,926 | |||||||||||
2014 Acquisition | As Originally Reported | Great Fridays | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | $ 259 | |||||||||||
Accounts receivable and other current assets | 1,825 | |||||||||||
Property and equipment and other long-term assets | 262 | |||||||||||
Deferred tax assets | 0 | |||||||||||
Acquired intangible assets | 5,747 | |||||||||||
Goodwill | 6,947 | |||||||||||
Total assets acquired | 15,040 | |||||||||||
Accounts payable and accrued expenses | 872 | |||||||||||
Deferred revenue | 317 | |||||||||||
Due to employees | 624 | |||||||||||
Deferred tax liabilities | 1,200 | |||||||||||
Total liabilities assumed | 3,013 | |||||||||||
Net assets acquired | $ 12,027 | |||||||||||
2014 Acquisition | As Originally Reported | Total | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | 1,130 | |||||||||||
Accounts receivable and other current assets | 8,554 | |||||||||||
Property and equipment and other long-term assets | 1,096 | |||||||||||
Deferred tax assets | 4,814 | |||||||||||
Acquired intangible assets | 44,150 | |||||||||||
Goodwill | 27,252 | |||||||||||
Total assets acquired | 86,996 | |||||||||||
Accounts payable and accrued expenses | 4,262 | |||||||||||
Deferred revenue | 317 | |||||||||||
Due to employees | 1,878 | |||||||||||
Deferred tax liabilities | 1,200 | |||||||||||
Total liabilities assumed | 7,657 | |||||||||||
Net assets acquired | $ 79,339 | |||||||||||
2014 Acquisition | Final Valuation [Member] | Netsoft | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | $ 0 | |||||||||||
Accounts receivable and other current assets | 788 | |||||||||||
Property and equipment and other long-term assets | 52 | |||||||||||
Deferred tax assets | 0 | |||||||||||
Acquired intangible assets | 1,700 | |||||||||||
Goodwill | 2,779 | |||||||||||
Total assets acquired | 5,319 | |||||||||||
Accounts payable and accrued expenses | 69 | |||||||||||
Deferred revenue | 0 | |||||||||||
Due to employees | 0 | |||||||||||
Deferred tax liabilities | 0 | |||||||||||
Total liabilities assumed | 69 | |||||||||||
Net assets acquired | $ 5,250 | |||||||||||
2014 Acquisition | Final Valuation [Member] | Jointech | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | $ 871 | |||||||||||
Accounts receivable and other current assets | 784 | |||||||||||
Property and equipment and other long-term assets | 338 | |||||||||||
Deferred tax assets | 0 | |||||||||||
Acquired intangible assets | 15,312 | |||||||||||
Goodwill | 23,758 | |||||||||||
Total assets acquired | 41,063 | |||||||||||
Accounts payable and accrued expenses | 728 | |||||||||||
Deferred revenue | 0 | |||||||||||
Due to employees | 1,254 | |||||||||||
Deferred tax liabilities | 2,293 | |||||||||||
Total liabilities assumed | 4,275 | |||||||||||
Net assets acquired | 36,788 | |||||||||||
2014 Acquisition | Final Valuation [Member] | GGA | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | 0 | |||||||||||
Accounts receivable and other current assets | 5,377 | |||||||||||
Property and equipment and other long-term assets | 306 | |||||||||||
Deferred tax assets | 0 | |||||||||||
Acquired intangible assets | 16,000 | |||||||||||
Goodwill | 7,306 | |||||||||||
Total assets acquired | 28,989 | |||||||||||
Accounts payable and accrued expenses | 2,593 | |||||||||||
Deferred revenue | 104 | |||||||||||
Due to employees | 0 | |||||||||||
Deferred tax liabilities | 0 | |||||||||||
Total liabilities assumed | 2,697 | |||||||||||
Net assets acquired | $ 26,292 | |||||||||||
2014 Acquisition | Final Valuation [Member] | Great Fridays | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | 259 | |||||||||||
Accounts receivable and other current assets | 1,825 | |||||||||||
Property and equipment and other long-term assets | 262 | |||||||||||
Deferred tax assets | 0 | |||||||||||
Acquired intangible assets | 200 | |||||||||||
Goodwill | 11,262 | |||||||||||
Total assets acquired | 13,808 | |||||||||||
Accounts payable and accrued expenses | 807 | |||||||||||
Deferred revenue | 317 | |||||||||||
Due to employees | 624 | |||||||||||
Deferred tax liabilities | 110 | |||||||||||
Total liabilities assumed | 1,858 | |||||||||||
Net assets acquired | 11,950 | |||||||||||
2014 Acquisition | Final Valuation [Member] | Total | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash and cash equivalents | 1,130 | |||||||||||
Accounts receivable and other current assets | 8,774 | |||||||||||
Property and equipment and other long-term assets | 958 | |||||||||||
Deferred tax assets | 0 | |||||||||||
Acquired intangible assets | 33,212 | |||||||||||
Goodwill | 45,105 | |||||||||||
Total assets acquired | 89,179 | |||||||||||
Accounts payable and accrued expenses | 4,197 | |||||||||||
Deferred revenue | 421 | |||||||||||
Due to employees | 1,878 | |||||||||||
Deferred tax liabilities | 2,403 | |||||||||||
Total liabilities assumed | 8,899 | |||||||||||
Net assets acquired | $ 80,280 |
ACQUISITIONS (Intangible Assets
ACQUISITIONS (Intangible Assets) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
2015 Acquisitions | NavigationArts | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 2,800 |
2015 Acquisitions | AGS | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 22,700 |
2015 Acquisitions | Customer relationships | NavigationArts | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Finite-lived Intangible Assets Acquired | $ 2,800 |
2015 Acquisitions | Customer relationships | AGS | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Finite-lived Intangible Assets Acquired | $ 22,700 |
2014 Acquisition | Netsoft | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | 1,700 |
2014 Acquisition | Jointech | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | 15,312 |
2014 Acquisition | GGA | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | 16,000 |
2014 Acquisition | Great Fridays | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 200 |
2014 Acquisition | Customer relationships | Netsoft | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Finite-lived Intangible Assets Acquired | $ 1,700 |
2014 Acquisition | Customer relationships | Jointech | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Finite-lived Intangible Assets Acquired | $ 15,000 |
2014 Acquisition | Customer relationships | GGA | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Finite-lived Intangible Assets Acquired | $ 16,000 |
2014 Acquisition | Customer relationships | Great Fridays | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years |
Finite-lived Intangible Assets Acquired | $ 200 |
2014 Acquisition | Trade names | Jointech | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years |
Finite-lived Intangible Assets Acquired | $ 312 |
GOODWILL AND INTANGIBLE ASSET56
GOODWILL AND INTANGIBLE ASSETS - NET (Goodwill Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Balance beginning of period | $ 115,930 | $ 57,417 |
Effect of net foreign currency exchange rate changes | (2,373) | (2,785) |
Balance end of period | 109,289 | 115,930 |
North America | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 81,464 | 31,078 |
Effect of net foreign currency exchange rate changes | (120) | (416) |
Balance end of period | 76,812 | 81,464 |
Europe | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 34,466 | 26,339 |
Effect of net foreign currency exchange rate changes | (2,253) | (2,369) |
Balance end of period | 32,477 | 34,466 |
Russia | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 0 | |
Balance end of period | 0 | 0 |
Other | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 0 | |
Balance end of period | 0 | 0 |
NavigationArts | ||
Goodwill [Roll Forward] | ||
Acquisition | 23,822 | |
Purchase accounting adjustments | 2,030 | (2,058) |
NavigationArts | North America | ||
Goodwill [Roll Forward] | ||
Acquisition | 23,822 | |
Purchase accounting adjustments | 2,030 | (2,058) |
NavigationArts | Europe | ||
Goodwill [Roll Forward] | ||
Acquisition | 0 | |
Purchase accounting adjustments | 0 | 0 |
AGS | ||
Goodwill [Roll Forward] | ||
Acquisition | 33,815 | |
Purchase accounting adjustments | (9,361) | |
AGS | North America | ||
Goodwill [Roll Forward] | ||
Acquisition | 33,815 | |
Purchase accounting adjustments | (9,361) | |
AGS | Europe | ||
Goodwill [Roll Forward] | ||
Acquisition | 0 | |
Purchase accounting adjustments | 0 | |
Netsoft | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | 30 | |
Netsoft | North America | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | 30 | |
Netsoft | Europe | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | 0 | |
Jointech | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | 6,181 | |
Jointech | North America | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | 0 | |
Jointech | Europe | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | 6,181 | |
GGA | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | (4,807) | |
GGA | North America | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | (4,807) | |
GGA | Europe | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | 0 | |
Great Fridays | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | 4,315 | |
Great Fridays | North America | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | 0 | |
Great Fridays | Europe | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | $ 4,315 | |
Other Acquisitions [Member] | ||
Goodwill [Roll Forward] | ||
Acquisition | 2,581 | |
Purchase accounting adjustments | 482 | |
Other Acquisitions [Member] | North America | ||
Goodwill [Roll Forward] | ||
Acquisition | 2,404 | |
Purchase accounting adjustments | 395 | |
Other Acquisitions [Member] | Europe | ||
Goodwill [Roll Forward] | ||
Acquisition | 177 | |
Purchase accounting adjustments | $ 87 |
GOODWILL AND INTANGIBLE ASSET57
GOODWILL AND INTANGIBLE ASSETS - NET (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||||
Goodwill | $ 109,289 | $ 115,930 | $ 57,417 | |
Goodwill impairment charge | 0 | 0 | (2,241) | |
North America | ||||
Goodwill [Line Items] | ||||
Goodwill | 76,812 | 81,464 | 31,078 | |
Accumulated impairment loss | 0 | 0 | 0 | |
Europe | ||||
Goodwill [Line Items] | ||||
Goodwill | 32,477 | 34,466 | 26,339 | |
Accumulated impairment loss | 0 | 0 | 0 | |
Russia | ||||
Goodwill [Line Items] | ||||
Goodwill | 0 | 0 | ||
Goodwill impairment charge | (2,241) | |||
Accumulated impairment loss | 2,241 | 2,241 | 2,241 | |
Other | ||||
Goodwill [Line Items] | ||||
Goodwill | 0 | 0 | ||
Goodwill impairment charge | $ (1,697) | |||
Accumulated impairment loss | $ 1,697 | $ 1,697 | $ 1,697 |
GOODWILL AND INTANGIBLE ASSET58
GOODWILL AND INTANGIBLE ASSETS - NET (Intangible Assets Compinents and Amortization Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 71,787 | $ 59,573 | |
Accumulated amortization | (20,527) | (12,713) | |
Net carrying amount | 51,260 | 46,860 | |
Amortization of Intangible Assets | $ 8,170 | $ 5,416 | $ 5,349 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 10 years | 10 years | |
Gross carrying amount | $ 65,409 | $ 52,974 | |
Accumulated amortization | (15,133) | (8,387) | |
Net carrying amount | 50,276 | 44,587 | |
Amortization of Intangible Assets | $ 6,858 | $ 3,961 | 3,843 |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 5 years | 5 years | |
Gross carrying amount | $ 5,622 | $ 5,853 | |
Accumulated amortization | (4,661) | (3,772) | |
Net carrying amount | 961 | 2,081 | |
Amortization of Intangible Assets | $ 1,139 | $ 1,280 | 1,319 |
Non-competition agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 4 years | 4 years | |
Gross carrying amount | $ 756 | $ 746 | |
Accumulated amortization | (733) | (554) | |
Net carrying amount | 23 | 192 | |
Amortization of Intangible Assets | $ 173 | $ 175 | $ 187 |
GOODWILL AND INTANGIBLE ASSET59
GOODWILL AND INTANGIBLE ASSETS - NET (Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 7,482 | |
2,018 | 6,539 | |
2,019 | 6,539 | |
2,020 | 6,539 | |
2,021 | 6,539 | |
Thereafter | 17,622 | |
Total | $ 51,260 | $ 46,860 |
PREPAID AND OTHER ASSETS (Prepa
PREPAID AND OTHER ASSETS (Prepaid and other current assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Deferred Costs, Capitalized, Prepaid, and Other Assets [Line Items] | ||
Taxes receivable | $ 6,054 | $ 7,954 |
Prepaid expenses | 5,462 | 4,693 |
Unamortized software licenses and subscriptions | 1,550 | 699 |
Security deposits under operating leases | 1,323 | 575 |
Notes receivable, net of allowance of $580 and $0, respectively | 710 | 0 |
Other, net of allowance of $64 and $0, respectively | 591 | 423 |
Total | 15,690 | 14,344 |
Prepaid and other assets allowance | 644 | 0 |
Notes receivable | ||
Schedule of Deferred Costs, Capitalized, Prepaid, and Other Assets [Line Items] | ||
Prepaid and other assets allowance | 580 | 0 |
Other assets | ||
Schedule of Deferred Costs, Capitalized, Prepaid, and Other Assets [Line Items] | ||
Prepaid and other assets allowance | $ 64 | $ 0 |
EMPLOYEE LOANS AND ALLOWANCE 61
EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES (Employee Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total employee loans | $ 5,978 | $ 6,338 |
Less: Allowance for loan losses | 0 | 0 |
Total loans, net of allowance for loan losses | 5,978 | 6,338 |
Housing loans | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total employee loans | 5,448 | 5,654 |
Relocation and other loans | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||
Total employee loans | $ 530 | $ 684 |
EMPLOYEE LOANS AND ALLOWANCE 62
EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans issued to employees | $ 2,960 | $ 3,427 | |
Repayment of loans by employees | $ 3,273 | $ 3,547 | |
Number of loans written-off | 0 | 1 | |
Material loans written-off | $ 0 | ||
Loans issued to principal officers, directors, or their affiliates | 0 | $ 0 | $ 0 |
Material loans past due | 0 | 0 | |
Non-accrual employee loans | 0 | 0 | |
Provision for loan losses | $ 0 | $ 0 | $ 0 |
Loans Under Employee Housing Program | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Minimum service period for employee housing program | 3 years | ||
Loan term (in years) | 5 years | ||
Interest rate on loan (as a percent) | 7.50% | ||
Loans Under Employee Housing Program | Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans authorized for issuance, amount | $ 10,000 | ||
Individual Loan Original Amount Limit | $ 50 |
RESTRICTED CASH AND TIME DEPO63
RESTRICTED CASH AND TIME DEPOSITS (Schedule of Restricted Cash and Time Deposits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 0 | $ 2,400 |
Time deposits | 30,181 | 403 |
Other long-term security deposits | 238 | 239 |
Total | 30,419 | $ 3,042 |
United Kingdom | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Time deposits | $ 30,181 | |
Interest rate on time deposit (as a percent) | 0.74% | |
Maturity date of time deposit | 3/11/2016 |
PROPERTY AND EQUIPMENT - NET (P
PROPERTY AND EQUIPMENT - NET (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 120,217 | $ 100,275 | |
Less accumulated depreciation and amortization | (46,601) | (39,776) | |
Total | 73,616 | 60,499 | |
Depreciation and amortization expenses | $ 15,217 | 11,979 | $ 12,134 |
Computer hardware | |||
Property, Plant and Equipment [Line Items] | |||
Weighted Average Useful Life (in years) | 3 years | ||
Property and equipment, gross | $ 49,599 | 36,612 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Weighted Average Useful Life (in years) | 49 years | ||
Property and equipment, gross | $ 34,012 | 34,002 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Weighted Average Useful Life (in years) | 7 years | ||
Property and equipment, gross | $ 13,178 | 8,990 | |
Office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Weighted Average Useful Life (in years) | 7 years | ||
Property and equipment, gross | $ 9,416 | 8,307 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Weighted Average Useful Life (in years) | 4 years | ||
Property and equipment, gross | $ 7,944 | 6,801 | |
Purchased computer software | |||
Property, Plant and Equipment [Line Items] | |||
Weighted Average Useful Life (in years) | 5 years | ||
Property and equipment, gross | $ 4,601 | 4,099 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Weighted Average Useful Life (in years) | 20 years | ||
Property and equipment, gross | $ 1,467 | $ 1,464 |
ACCRUED EXPENSES AND OTHER LI65
ACCRUED EXPENSES AND OTHER LIABILITIES (Accrued expenses and other liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Compensation | $ 33,404 | $ 47,285 |
Deferred revenue | 3,319 | 3,047 |
Subcontractor costs | 3,317 | 4,360 |
Professional fees | 2,348 | 2,251 |
Business trips | 2,324 | 939 |
Facilities costs | 1,534 | 1,538 |
Insurance costs | 1,091 | 810 |
Acquisition related deferred consideration | 0 | 603 |
Deferred tax liabilities | 0 | 365 |
Other | 2,558 | 2,598 |
Total | $ 49,895 | $ 63,796 |
TAXES PAYABLE (Components of Ta
TAXES PAYABLE (Components of Taxes Payable) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ComponentsOfTaxesOtherThanIncome [Abstract] | ||
Corporate profit tax | $ 4,000 | $ 15,057 |
Value added taxes | 10,644 | 8,553 |
Payroll, social security, and other taxes | 10,364 | 5,862 |
Total | 25,008 | 29,472 |
Taxes Payable, Noncurrent | $ 0 | $ 0 |
INCOME TAXES (Income before Pro
INCOME TAXES (Income before Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income/ (loss) before income tax expense: | |||||||||||
Domestic | $ (9,300) | $ (7,687) | $ (7,229) | ||||||||
Foreign | 135,766 | 113,757 | 94,182 | ||||||||
Income before provision for income taxes | $ 32,050 | $ 33,241 | $ 30,923 | $ 30,252 | $ 34,733 | $ 28,673 | $ 24,440 | $ 18,224 | $ 126,466 | $ 106,070 | $ 86,953 |
INCOME TAXES (Income Tax Expens
INCOME TAXES (Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||||||||||
Federal | $ 13,324 | $ 19,851 | $ 7,741 | ||||||||
State | (63) | 2,563 | 338 | ||||||||
Foreign | 17,243 | 14,528 | 12,504 | ||||||||
Deferred | |||||||||||
Federal | (3,581) | (13,361) | (3,979) | ||||||||
State | 312 | (1,891) | (43) | ||||||||
Foreign | (35) | (76) | 751 | ||||||||
Total | $ 7,287 | $ 7,067 | $ 6,493 | $ 6,353 | $ 7,095 | $ 5,800 | $ 5,209 | $ 3,510 | $ 27,200 | $ 21,614 | $ 17,312 |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets: | ||
Property and equipment | $ 203 | $ 681 |
Intangible assets | 1,525 | 1,428 |
Accrued expenses | 9,172 | 10,729 |
Net operating loss carryforward | 5,368 | 5,233 |
Deferred revenue | 1,165 | 2,162 |
Stock-based compensation | 19,701 | 12,484 |
Other assets | 17 | 14 |
Deferred tax assets | 37,151 | 32,731 |
Deferred tax liabilities: | ||
Property and equipment | 1,735 | 646 |
Intangible assets | 4,969 | 1,598 |
Accrued revenue and expenses | 500 | 511 |
Stock-based compensation | 1,606 | 1,672 |
Other liabilities | 314 | 912 |
Deferred tax liabilities | 9,124 | 5,339 |
Net deferred tax assets | 28,027 | 27,392 |
Deferred Tax Assets Classification | ||
Deferred tax assets, current | 0 | 11,847 |
Deferred tax assets, noncurrent | 31,005 | 18,312 |
Deferred Tax Liabilities Classification | ||
Deferred tax liabilities | 0 | 365 |
Deferred tax liabilities, noncurrent | 2,979 | 2,402 |
Business acquisitions | ||
Deferred tax assets: | ||
Stock-based compensation | $ 11,471 | $ 7,219 |
Amortization period of stock-based compensation for tax | 15 years |
INCOME TAXES (Operating Loss Ca
INCOME TAXES (Operating Loss Carryforwards) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss | $ 20,899 | |
Net operating loss carryforward | 5,368 | $ 5,233 |
Several jurisdictions | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss | $ 20,899 |
INCOME TAXES (Effective Income
INCOME TAXES (Effective Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Statutory federal tax | $ 44,263 | $ 37,125 | $ 29,564 | ||||||||
Increase/ (decrease) in taxes resulting from: | |||||||||||
State taxes, net of federal benefit | 1,192 | 341 | 311 | ||||||||
Provision adjustment for current year uncertain tax position | 0 | 0 | (1,220) | ||||||||
Effect of permanent differences | 5,042 | 7,314 | 8,589 | ||||||||
Stock-based compensation expense | 9,535 | 7,591 | 3,782 | ||||||||
Foreign tax expense and tax rate differential | (33,477) | (31,094) | (24,772) | ||||||||
Change in foreign tax rate | 0 | 9 | 754 | ||||||||
Change in valuation allowance | 0 | 0 | 149 | ||||||||
Other | 645 | 328 | 155 | ||||||||
Total | $ 7,287 | $ 7,067 | $ 6,493 | $ 6,353 | $ 7,095 | $ 5,800 | $ 5,209 | $ 3,510 | $ 27,200 | $ 21,614 | $ 17,312 |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 62 | $ 200 | $ 1,271 |
Increases in tax positions in current year | 4 | 0 | 0 |
Increases in tax positions in prior year | 0 | 0 | 0 |
Decreases due to settlement | 0 | (138) | (1,071) |
Balance at end of period | $ 66 | $ 62 | $ 200 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Holiday [Line Items] | ||||
Undistributed Earnings of Foreign Subsidiaries | $ 571,400 | |||
Aggregate dollar benefits from tax holidays | $ 13,600 | $ 20,800 | $ 16,800 | |
Income tax holiday benefit (in dollars per share) | $ 0.26 | $ 0.40 | $ 0.34 | |
Unrecognized tax benefits | $ 66 | $ 62 | $ 200 | $ 1,271 |
Penalties and interest | $ 0 | $ 0 | $ 12 | |
Belarus | ||||
Income Tax Holiday [Line Items] | ||||
Exemption (as a percent) | 100.00% | |||
Federal income tax rate (as a percent) | 18.00% | |||
Tax exemption period (in years) | 15 years | |||
Income tax holiday description | 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 , for a period of 15 years . |
EMPLOYEE BENEFITS (Employee ben
EMPLOYEE BENEFITS (Employee benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Discretionary matching contribution to retirement plan by employer (as a percent) | 2.00% | ||
Vesting period | 2 years | ||
Contribution by employer for retirement plan | $ 1,934 | $ 740 | $ 549 |
DEBT (Debt) (Details)
DEBT (Debt) (Details) - USD ($) $ in Thousands | Sep. 12, 2014 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Irrevocable standby letter of credit | $ 942 | ||
2014 Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 200,000 | ||
Line of credit, collateralized borrowing capacity | 100,000 | ||
Line of credit , maximum borrowing capacity in foreign currency | $ 50,000 | ||
Percentage of foreign subsidiaries outstanding shares of capital stock serves as collateral | 65.00% | ||
Outstanding debt | $ 25,000 | $ 35,000 | |
Line of credit, remaining borrowing capacity | $ 74,058 | $ 65,000 | |
2014 Credit Facility | LIBOR | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Variable rate spread | 1.00% | ||
2014 Credit Facility | Federal Funds Open Rate | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Variable rate spread | 0.50% |
STOCK-BASED COMPENSATION (Costs
STOCK-BASED COMPENSATION (Costs Related to Stock Compensation Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 49,244 | $ 45,833 | $ 24,620 |
Cost of revenues | Organic growth | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 16,619 | 13,695 | 8,648 |
Selling, general and administrative expenses | Organic growth | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 19,741 | 13,448 | 7,143 |
Selling, general and administrative expenses | Business acquisitions | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 12,884 | $ 18,690 | $ 8,829 |
STOCK-BASED COMPENSATION (Equit
STOCK-BASED COMPENSATION (Equity Plans) (Details) - shares | Jun. 11, 2015 | Jan. 11, 2012 | May 31, 2006 | Dec. 31, 2016 |
2012 Directors Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance | 600,000 | |||
Number of shares available for issuance | 547,560 | |||
Expiration period | 10 years | |||
2015 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for issuance | 6,202,977 | |||
Expiration period | 10 years | |||
2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
2006 Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Options (in shares) | |||
Options outstanding, beginning of period | 7,450,914 | 6,838,746 | 5,823,536 |
Options granted | 313,088 | 2,219,725 | 2,400,500 |
Options exercised | (895,804) | (1,405,826) | (1,171,097) |
Options forfeited/cancelled | (227,759) | (201,731) | (214,193) |
Options expired | (3,200) | ||
Options outstanding, end of period | 6,637,239 | 7,450,914 | 6,838,746 |
Options vested and exercisable at December 31, 2016 | 3,350,682 | ||
Options expected to vest | 3,127,635 | ||
Weighted Average Exercise Price (in dollars per share) | |||
Options outstanding, beginning of period | $ 34.07 | $ 20.98 | $ 13.99 |
Options granted | 70.27 | 62.18 | 32.51 |
Options exercised | 20.13 | 14.70 | 9.05 |
Options forfeited/cancelled | 47.89 | 34.48 | 25.33 |
Options expired | 1.52 | ||
Options outstanding, end of period | 37.20 | $ 34.07 | $ 20.98 |
Options vested and exercisable at December 31, 2016 | 25.96 | ||
Options expected to vest | $ 48.28 | ||
Aggregate Intrinsic Value | |||
Options outstanding, beginning of period | $ 331,938 | $ 183,073 | $ 122,003 |
Options granted | (1,866) | 36,492 | 36,584 |
Options exercised | (39,577) | (89,860) | (45,321) |
Options forfeited/cancelled | (3,740) | (8,904) | (4,802) |
Options expired | (201) | ||
Options outstanding, end of period | 179,936 | $ 331,938 | $ 183,073 |
Options vested and exercisable at December 31, 2016 | 128,499 | ||
Options expected to vest | $ 50,136 |
STOCK-BASED COMPENSATION (Sto79
STOCK-BASED COMPENSATION (Stock Options) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options exercised, in transfer (in shares) | 2,550 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (as a percent) | 31.85% | 34.07% | 45.85% |
Expected term (in years) | 6 years 2 months 27 days | 6 years 2 months 29 days | 6 years 2 months 13 days |
Risk free interest rate (as a percent) | 1.50% | 1.80% | 2.00% |
Dividend rate (as a percent) | 0.00% | 0.00% | 0.00% |
2015 Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate grant date fair value | $ 6,874 | ||
Vesting period (in years) | 4 years | ||
Unrecognized compensation cost net of forfeitures | $ 44,162 | ||
Unrecognized compensation cost, period for recognition | 1 year 7 months 5 days | ||
Weighted average remaining contractual term, vested and exercisable | 5 years 11 months 15 days | ||
Weighted average remaining contractual term, outstanding | 7 years 9 months 12 days |
STOCK-BASED COMPENSATION (Retri
STOCK-BASED COMPENSATION (Retricted Stock and Restricted Stock Units Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Service Period | Equity Classified Award [Member] | Equity-Settled Award [Member] | Restricted Stock | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 306,839 | 562,942 | 344,928 |
Awards granted | 6,510 | 5,295 | 452,720 |
Awards vested | (156,535) | (261,504) | (217,668) |
Awards forfeited/cancelled | 2,689 | 106 | 17,038 |
Unvested awards outstanding, end of period | 154,125 | 306,839 | 562,942 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 41.14 | $ 37.42 | $ 18.74 |
Awards granted | 73 | 70.79 | 41.63 |
Awards vested | 42.64 | 33.74 | 17.84 |
Awards forfeited/cancelled | 45.32 | 36.57 | 21.14 |
Unvested awards outstanding, end of period | $ 40.89 | $ 41.14 | $ 37.42 |
Service Period | Equity Classified Award [Member] | Equity-Settled Award [Member] | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 149,272 | 70,500 | 0 |
Awards granted | 408,629 | 108,319 | 70,500 |
Awards vested | (41,015) | (17,625) | 0 |
Awards forfeited/cancelled | 31,698 | 11,922 | 0 |
Unvested awards outstanding, end of period | 485,188 | 149,272 | 70,500 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 57.55 | $ 32.55 | $ 0 |
Awards granted | 70.39 | 67.21 | 32.55 |
Awards vested | 55.60 | 32.55 | 0 |
Awards forfeited/cancelled | 70.44 | 34.49 | 0 |
Unvested awards outstanding, end of period | $ 67.69 | $ 57.55 | $ 32.55 |
Service Period | Liability Classified Award [Member] | Cash-Settled Award | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 0 | 0 | 0 |
Awards granted | 207,586 | 0 | 0 |
Awards vested | 0 | 0 | 0 |
Awards forfeited/cancelled | 3,085 | 0 | 0 |
Unvested awards outstanding, end of period | 204,501 | 0 | 0 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 0 | $ 0 | $ 0 |
Awards granted | 70.53 | 0 | 0 |
Awards vested | 0 | 0 | 0 |
Awards forfeited/cancelled | 70.52 | 0 | 0 |
Unvested awards outstanding, end of period | $ 70.53 | $ 0 | $ 0 |
Performance Targets | Equity Classified Award [Member] | Equity-Settled Award [Member] | Restricted Stock | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 22,090 | 33,045 | 0 |
Awards granted | 0 | 0 | 26,441 |
Awards vested | (9,978) | (12,145) | 0 |
Awards forfeited/cancelled | 6,539 | 1,360 | 2,550 |
Changes in the number of awards expected to be delivered | 2,550 | 9,154 | |
Unvested awards outstanding, end of period | 5,573 | 22,090 | 33,045 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 37.52 | $ 38.44 | $ 0 |
Awards granted | 0 | 0 | 38.91 |
Awards vested | 40.15 | 39.92 | 0 |
Awards forfeited/cancelled | 36.97 | 36.57 | 36.57 |
Changes in the number of awards expected to be delivered | 36.57 | 36.57 | |
Unvested awards outstanding, end of period | $ 33.47 | $ 37.52 | $ 38.44 |
Performance Targets | Equity Classified Award [Member] | Equity-Settled Award [Member] | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 14,000 | 0 | 0 |
Awards granted | 0 | 14,000 | 0 |
Awards vested | (4,666) | 0 | 0 |
Awards forfeited/cancelled | 4,667 | 0 | 0 |
Changes in the number of awards expected to be delivered | 0 | 0 | |
Unvested awards outstanding, end of period | 4,667 | 14,000 | 0 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 70.22 | $ 0 | $ 0 |
Awards granted | 0 | 70.22 | 0 |
Awards vested | 70.22 | 0 | 0 |
Awards forfeited/cancelled | 70.22 | 0 | 0 |
Changes in the number of awards expected to be delivered | 0 | 0 | |
Unvested awards outstanding, end of period | $ 70.22 | $ 70.22 | $ 0 |
Performance Targets | Liability Classified Award [Member] | Equity-Settled Award [Member] | Restricted Stock | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 211,206 | 338,465 | 0 |
Awards granted | 0 | 0 | 360,617 |
Awards vested | (105,604) | (105,604) | 0 |
Awards forfeited/cancelled | 0 | 0 | 0 |
Changes in the number of awards expected to be delivered | (21,655) | (22,152) | |
Unvested awards outstanding, end of period | 105,602 | 211,206 | 338,465 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 39.65 | $ 39.43 | $ 0 |
Awards granted | 0 | 0 | 38.13 |
Awards vested | 40.44 | 40.44 | 0 |
Awards forfeited/cancelled | 0 | 0 | 0 |
Changes in the number of awards expected to be delivered | 32.27 | 18.32 | |
Unvested awards outstanding, end of period | $ 38.86 | $ 39.65 | $ 39.43 |
STOCK-BASED COMPENSATION (Ret81
STOCK-BASED COMPENSATION (Retricted Stock and Restricted Stock Units) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Equity Classified Award [Member] | Performance Targets | Equity-Settled Award [Member] | Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 144 |
Unrecognized compensation cost, period for recognition | 1 year |
Equity Classified Award [Member] | Performance Targets | Equity-Settled Award [Member] | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 471 |
Unrecognized compensation cost, period for recognition | 1 year 3 months 19 days |
Equity Classified Award [Member] | Service Period | Equity-Settled Award [Member] | Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 3,444 |
Unrecognized compensation cost, period for recognition | 1 year 14 days |
Equity Classified Award [Member] | Service Period | Equity-Settled Award [Member] | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 22,584 |
Unrecognized compensation cost, period for recognition | 2 years 13 days |
Liability Classified Award [Member] | Performance Targets | Equity-Settled Award [Member] | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 3,002 |
Unrecognized compensation cost, period for recognition | 1 year |
Liability Classified Award [Member] | Service Period | Cash-Settled Award | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 8,842 |
Unrecognized compensation cost, period for recognition | 2 years 1 month 20 days |
Business acquisitions | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
Vesting percentage | 33.30% |
EARNINGS PER SHARE (Earning per
EARNINGS PER SHARE (Earning per share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||||
Numerator for common earnings per share: | |||||||||||||||||||||
Net income | $ 24,763 | $ 26,174 | $ 24,430 | $ 23,899 | $ 27,638 | $ 22,873 | $ 19,231 | $ 14,714 | $ 99,266 | $ 84,456 | $ 69,641 | ||||||||||
Numerator for basic and diluted earnings per share | $ 99,266 | $ 84,456 | $ 69,641 | ||||||||||||||||||
Denominator for basic and diluted earnings per share: | |||||||||||||||||||||
Weighted average common shares outstanding (in shares) | 50,309 | 48,721 | 47,189 | ||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||
Stock options, RSUs and performance-based awards (in shares) | 2,906 | 3,265 | 2,545 | ||||||||||||||||||
Denominator for diluted earnings per share (in shares) | 53,215 | 51,986 | 49,734 | ||||||||||||||||||
Net income per share: | |||||||||||||||||||||
Basic (in dollars per share) | $ 0.49 | [1] | $ 0.51 | [1] | $ 0.49 | [1] | $ 0.48 | [1] | $ 0.56 | [1] | $ 0.47 | [1] | $ 0.40 | [1] | $ 0.31 | [1] | $ 1.97 | [1] | $ 1.73 | [1] | $ 1.48 |
Diluted (in dollars per share) | $ 0.46 | [1] | $ 0.49 | [1] | $ 0.46 | [1] | $ 0.45 | [1] | $ 0.52 | [1] | $ 0.44 | [1] | $ 0.37 | [1] | $ 0.29 | [1] | $ 1.87 | [1] | $ 1.62 | [1] | $ 1.40 |
Anti-dilutive options not included in the calculation (in shares) | 2,325 | 1,637 | 2,260 | ||||||||||||||||||
[1] | (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 AND CONTINGENCIES83
COMMITMENTS AND CONTINGENCIES (Future Minimum Rental Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | $ 30,791 | ||
2,018 | 24,706 | ||
2,019 | 16,044 | ||
2,020 | 10,271 | ||
2,021 | 7,170 | ||
Thereafter | 11,098 | ||
Total minimum lease payments | 100,080 | ||
Operating lease expense | $ 28,220 | $ 20,065 | $ 18,200 |
FAIR VALUE MEASUREMENTS (Financ
FAIR VALUE MEASUREMENTS (Financial Liabilities at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Stock | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Performance-based equity awards | $ 3,789 | $ 5,364 |
Cash-Settled Award | Restricted Stock Units (RSUs) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Cash-settled restricted stock units | 2,111 | |
Level 1 | Restricted Stock | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Performance-based equity awards | 3,789 | 0 |
Level 1 | Cash-Settled Award | Restricted Stock Units (RSUs) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Cash-settled restricted stock units | 2,111 | |
Level 2 | Restricted Stock | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Performance-based equity awards | 0 | 0 |
Level 2 | Cash-Settled Award | Restricted Stock Units (RSUs) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Cash-settled restricted stock units | 0 | |
Level 3 | Restricted Stock | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Performance-based equity awards | 0 | 5,364 |
Level 3 | Cash-Settled Award | Restricted Stock Units (RSUs) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Cash-settled restricted stock units | 0 | |
Recurring | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total liabilities measured at fair value on a recurring basis | 5,900 | 5,364 |
Recurring | Level 1 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total liabilities measured at fair value on a recurring basis | 5,900 | 0 |
Recurring | Level 2 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Recurring | Level 3 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total liabilities measured at fair value on a recurring basis | $ 0 | $ 5,364 |
FAIR VALUE MEASUREMENTS (Contin
FAIR VALUE MEASUREMENTS (Contingent Consideration Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Acquisition date fair value of contractual contingent liabilities | $ 0 | $ 0 | $ 1,924 |
Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Contractual contingent liabilities, beginning of period | 5,364 | 40,623 | 0 |
Liability-classified stock-based awards | 5,148 | 5,148 | 3,088 |
Changes in fair value of contractual contingent liabilities included in earnings | 1,232 | 4,355 | 2,059 |
Changes in fair value of contractual contingent liabilities recorded against goodwill | 200 | 1,366 | |
Effect of net foreign currency exchange rate changes | 246 | (288) | |
Settlements of contractual contingent liabilities | (8,955) | (45,008) | |
Reclassification of contractual contingent liabilities out of Level 3 | (3,789) | ||
Contractual contingent liabilities, end of period | 0 | $ 5,364 | 40,623 |
Level 3 | Netsoft | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Acquisition date fair value of contractual contingent liabilities | 1,825 | ||
Level 3 | Jointech | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Acquisition date fair value of contractual contingent liabilities | 20,000 | ||
Level 3 | GGA | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Acquisition date fair value of contractual contingent liabilities | 11,400 | ||
Level 3 | Great Fridays | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Acquisition date fair value of contractual contingent liabilities | $ 1,173 | ||
Level 3 | Other Acquisitions [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Acquisition date fair value of contractual contingent liabilities | $ 800 |
FAIR VALUE MEASUREMENTS (Fina86
FAIR VALUE MEASUREMENTS (Financial Assets and Liabilities Not Measured on Recurring Basis) (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Balance | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 362,025 | $ 199,449 |
Time Deposits and Restricted Cash and Cash Equivalents, Fair Value Disclosure | 3,042 | 30,419 |
Loans Receivable, Fair Value Disclosure | 5,978 | 6,338 |
Balance | Revolving Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowing under 2014 Credit Facility | 25,019 | 35,000 |
Estimated Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 362,025 | 199,449 |
Time Deposits and Restricted Cash and Cash Equivalents, Fair Value Disclosure | 3,042 | 30,419 |
Loans Receivable, Fair Value Disclosure | 5,978 | 6,338 |
Estimated Fair Value | Revolving Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowing under 2014 Credit Facility | 25,019 | 35,000 |
Estimated Fair Value | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 362,025 | 199,449 |
Time Deposits and Restricted Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Loans Receivable, Fair Value Disclosure | 0 | 0 |
Estimated Fair Value | Level 1 | Revolving Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowing under 2014 Credit Facility | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Time Deposits and Restricted Cash and Cash Equivalents, Fair Value Disclosure | 3,042 | 30,419 |
Loans Receivable, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowing under 2014 Credit Facility | 25,019 | 35,000 |
Estimated Fair Value | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Time Deposits and Restricted Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Loans Receivable, Fair Value Disclosure | 5,978 | 6,338 |
Estimated Fair Value | Level 3 | Revolving Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowing under 2014 Credit Facility | $ 0 | $ 0 |
SEGMENT INFORMATION (Revenues f
SEGMENT INFORMATION (Revenues from External Customers and Segment Operating Profit Before Unallocated Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 313,525 | $ 298,293 | $ 283,832 | $ 264,482 | $ 260,253 | $ 236,049 | $ 217,781 | $ 200,045 | $ 1,160,132 | $ 914,128 | $ 730,027 |
Operating profit | $ 37,383 | $ 33,902 | $ 32,080 | $ 30,331 | $ 31,765 | $ 27,776 | $ 23,606 | $ 22,820 | 133,696 | 105,967 | 86,183 |
Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 40,866 | 36,506 | 48,945 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,160,815 | 914,966 | 730,003 | ||||||||
Operating profit | 218,121 | 186,133 | 144,619 | ||||||||
Operating Segments | North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 642,216 | 471,603 | 374,509 | ||||||||
Operating profit | 143,021 | 112,312 | 90,616 | ||||||||
Operating Segments | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 474,988 | 400,460 | 299,279 | ||||||||
Operating profit | 67,545 | 68,717 | 50,189 | ||||||||
Operating Segments | Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 43,611 | 37,992 | 50,663 | ||||||||
Operating profit | 7,555 | 5,198 | 7,034 | ||||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 4,911 | 5,552 | ||||||||
Operating profit | $ 0 | $ (94) | $ (3,220) |
SEGMENT INFORMATION (Major Cust
SEGMENT INFORMATION (Major Customers) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 313,525 | $ 298,293 | $ 283,832 | $ 264,482 | $ 260,253 | $ 236,049 | $ 217,781 | $ 200,045 | $ 1,160,132 | $ 914,128 | $ 730,027 |
Operating Segments | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | 1,160,815 | 914,966 | 730,003 | ||||||||
Operating Segments | Europe | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 474,988 | 400,460 | 299,279 | ||||||||
Sales Revenue, Segment [Member] | Customer Concentration Risk | Operating Segments | Europe | UBS AG | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Number of customers | 1 | ||||||||||
Revenues | $ 138,124 | $ 130,605 | $ 97,872 | ||||||||
Sales Revenue, Net | Customer Concentration Risk | Operating Segments | Europe | UBS AG | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Number of customers | 1 | 1 | |||||||||
Accounts Receivable | Customer Concentration Risk | Billed Revenues [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Number of customers | 0 | ||||||||||
Accounts Receivable | Customer Concentration Risk | Unbilled Revenues [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Number of customers | 2 | ||||||||||
Concentration percentage | 22.20% | ||||||||||
Accounts Receivable | Customer Concentration Risk | UBS AG | Billed Revenues [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Number of customers | 1 | ||||||||||
Concentration percentage | 12.40% | ||||||||||
Accounts Receivable | Customer Concentration Risk | UBS AG | Unbilled Revenues [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Number of customers | 1 | ||||||||||
Concentration percentage | 19.80% |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation of Segment Revenues and Operating Profit to Consolidated Income From Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 1,160,132 | $ 914,128 | $ 730,027 | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment operating profit: | $ 37,383 | $ 33,902 | $ 32,080 | $ 30,331 | $ 31,765 | $ 27,776 | $ 23,606 | $ 22,820 | 133,696 | 105,967 | 86,183 |
Stock-based compensation expense | (49,244) | (45,833) | (24,620) | ||||||||
Depreciation and amortization | (6,237) | (5,925) | (6,123) | (5,102) | (4,899) | (4,393) | (3,903) | (4,200) | (23,387) | (17,395) | (17,483) |
Interest and other income, net | 1,432 | 1,067 | 1,138 | 1,211 | 1,409 | 865 | 1,299 | 1,158 | 4,848 | 4,731 | 4,769 |
Change in fair value of contingent consideration | 0 | 0 | (1,924) | ||||||||
Foreign exchange loss | (6,765) | (1,728) | (2,295) | (1,290) | 1,559 | 32 | (465) | (5,754) | (12,078) | (4,628) | (2,075) |
Income before provision for income taxes | $ 32,050 | $ 33,241 | $ 30,923 | $ 30,252 | $ 34,733 | $ 28,673 | $ 24,440 | $ 18,224 | 126,466 | 106,070 | 86,953 |
Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 1,160,815 | 914,966 | 730,003 | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment operating profit: | 218,121 | 186,133 | 144,619 | ||||||||
Unallocated Amounts | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | (683) | (838) | 24 | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other (revenues)/loss | (683) | (838) | 24 | ||||||||
Stock-based compensation expense | (49,244) | (45,833) | (24,620) | ||||||||
Non-corporate taxes | (5,909) | (4,274) | (6,882) | ||||||||
Professional fees | (8,265) | (7,104) | (5,312) | ||||||||
Depreciation and amortization | (8,290) | (5,581) | (7,988) | ||||||||
Bank charges | (1,515) | (1,352) | (1,049) | ||||||||
One-time charges | (706) | (747) | (5,983) | ||||||||
Other corporate expenses | $ (9,813) | $ (14,437) | $ (6,626) |
SEGMENT INFORMATION (Geographic
SEGMENT INFORMATION (Geographical Information of Long-Lived Assets Based on Physical Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | $ 73,616 | $ 60,499 |
Belarus | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 46,011 | 44,879 |
Russia | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 7,203 | 2,084 |
Ukraine | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 5,610 | 4,487 |
Hungary | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 3,485 | 2,485 |
United States | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 2,618 | 1,969 |
Poland | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 2,213 | 1,088 |
China | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 1,887 | 514 |
India | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 1,650 | 1,099 |
Other | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | $ 2,939 | $ 1,894 |
SEGMENT INFORMATION (Revenues b
SEGMENT INFORMATION (Revenues by Client Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 313,525 | $ 298,293 | $ 283,832 | $ 264,482 | $ 260,253 | $ 236,049 | $ 217,781 | $ 200,045 | $ 1,160,132 | $ 914,128 | $ 730,027 |
Reimbursable expenses and other revenues | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 12,521 | 9,511 | 8,410 | ||||||||
United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 605,856 | 427,433 | 318,304 | ||||||||
United Kingdom | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 174,719 | 164,301 | 141,366 | ||||||||
Switzerland | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 122,399 | 111,353 | 87,111 | ||||||||
Canada | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 58,742 | 57,643 | 49,193 | ||||||||
Germany | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 43,216 | 36,089 | 25,740 | ||||||||
Russia | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 40,866 | 36,506 | 48,945 | ||||||||
Sweden | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 22,945 | 10,589 | 7,892 | ||||||||
Hong Kong | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 20,333 | 23,117 | 13,445 | ||||||||
Netherlands | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 16,762 | 9,989 | 8,838 | ||||||||
Belgium | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 8,505 | 7,916 | 4,198 | ||||||||
Ireland | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 5,152 | 5,437 | 3,667 | ||||||||
China | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 4,445 | 817 | 0 | ||||||||
Italy | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 3,970 | 2,318 | 1,746 | ||||||||
Spain | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 3,406 | 1,028 | 106 | ||||||||
Other locations | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 16,295 | $ 10,081 | $ 11,066 |
SEGMENT INFORMATION (Revenues92
SEGMENT INFORMATION (Revenues by Service Offering) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 313,525 | $ 298,293 | $ 283,832 | $ 264,482 | $ 260,253 | $ 236,049 | $ 217,781 | $ 200,045 | $ 1,160,132 | $ 914,128 | $ 730,027 |
Software development | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 841,916 | 644,732 | 504,590 | ||||||||
Application testing services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 223,010 | 174,259 | 140,363 | ||||||||
Application maintenance and support | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 74,475 | 70,551 | 58,840 | ||||||||
Infrastructure services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 5,069 | 11,311 | 14,198 | ||||||||
Licensing | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 3,141 | 3,764 | 3,626 | ||||||||
Reimbursable expenses and other revenues | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 12,521 | $ 9,511 | $ 8,410 |
QUARTERLY FINANCIAL DATA (Quate
QUARTERLY FINANCIAL DATA (Quaterly financial data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Revenues | $ 313,525 | $ 298,293 | $ 283,832 | $ 264,482 | $ 260,253 | $ 236,049 | $ 217,781 | $ 200,045 | $ 1,160,132 | $ 914,128 | $ 730,027 | ||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 198,226 | 190,797 | 180,782 | 167,381 | 158,291 | 148,479 | 134,256 | 125,887 | 737,186 | 566,913 | 456,530 | ||||||||||
Selling, general and administrative expenses | 71,432 | 67,491 | 64,241 | 61,494 | 64,414 | 55,431 | 55,976 | 46,938 | 264,658 | 222,759 | 163,666 | ||||||||||
Depreciation and amortization expense | 6,237 | 5,925 | 6,123 | 5,102 | 4,899 | 4,393 | 3,903 | 4,200 | 23,387 | 17,395 | 17,483 | ||||||||||
Other operating expenses, net | 247 | 178 | 606 | 174 | 884 | (30) | 40 | 200 | 1,205 | 1,094 | 3,924 | ||||||||||
Total segment operating profit: | 37,383 | 33,902 | 32,080 | 30,331 | 31,765 | 27,776 | 23,606 | 22,820 | 133,696 | 105,967 | 86,183 | ||||||||||
Interest and other income, net | 1,432 | 1,067 | 1,138 | 1,211 | 1,409 | 865 | 1,299 | 1,158 | 4,848 | 4,731 | 4,769 | ||||||||||
Foreign exchange loss | (6,765) | (1,728) | (2,295) | (1,290) | 1,559 | 32 | (465) | (5,754) | (12,078) | (4,628) | (2,075) | ||||||||||
Income before provision for income taxes | 32,050 | 33,241 | 30,923 | 30,252 | 34,733 | 28,673 | 24,440 | 18,224 | 126,466 | 106,070 | 86,953 | ||||||||||
Provision for income taxes | 7,287 | 7,067 | 6,493 | 6,353 | 7,095 | 5,800 | 5,209 | 3,510 | 27,200 | 21,614 | 17,312 | ||||||||||
Net income | 24,763 | 26,174 | 24,430 | 23,899 | 27,638 | 22,873 | 19,231 | 14,714 | 99,266 | 84,456 | 69,641 | ||||||||||
Comprehensive income | $ 19,554 | $ 26,532 | $ 22,044 | $ 28,598 | $ 21,939 | $ 14,532 | $ 22,905 | $ 11,984 | $ 96,728 | $ 71,360 | $ 49,390 | ||||||||||
Basic (in dollars per share) | $ 0.49 | [1] | $ 0.51 | [1] | $ 0.49 | [1] | $ 0.48 | [1] | $ 0.56 | [1] | $ 0.47 | [1] | $ 0.40 | [1] | $ 0.31 | [1] | $ 1.97 | [1] | $ 1.73 | [1] | $ 1.48 |
Diluted (in dollars per share) | $ 0.46 | [1] | $ 0.49 | [1] | $ 0.46 | [1] | $ 0.45 | [1] | $ 0.52 | [1] | $ 0.44 | [1] | $ 0.37 | [1] | $ 0.29 | [1] | $ 1.87 | [1] | $ 1.62 | [1] | $ 1.40 |
[1] | (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. |
VALUATION AND QUALIFYING ACCO94
VALUATION AND QUALIFYING ACCOUNTS (Valuation and Qualifying Accounts)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 1,729 | $ 2,181 | $ 1,800 |
Charged to Expenses | 3,500 | 1,704 | 1,325 |
Deductions/ Write offs | (3,215) | (2,156) | (944) |
Balance at End of Year | $ 2,014 | $ 1,729 | $ 2,181 |