Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 12, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35418 | ||
Entity Registrant Name | EPAM SYSTEMS, INC. | ||
Entity Central Index Key | 0001352010 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 22-3536104 | ||
Entity Address, Address Line One | 41 University Drive | ||
Entity Address, Address Line Two | Suite 202 | ||
Entity Address, City or Town | Newtown | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 18940 | ||
City Area Code | 267 | ||
Local Phone Number | 759-9000 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | EPAM | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,127,000,000 | ||
Entity Common Stock, Shares Outstanding | 55,259,184 | ||
Documents Incorporated by Reference | The registrant intends to file a definitive Proxy Statement for its 2020 annual meeting of stockholders pursuant to Regulation 14A within 120 days of the end of the registrant’s fiscal year ended December 31, 2019. Portions of the registrant’s Proxy Statement are incorporated by reference into Part III of this Form 10-K. With the exception of the portions of the Proxy Statement expressly incorporated by reference, such document shall not be deemed filed with this Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 936,552 | $ 770,560 |
Trade receivables and contract assets, net of allowance of $2,920 and $1,557, respectively | 497,716 | 402,337 |
Prepaid and other current assets | 39,943 | 26,171 |
Total current assets | 1,474,211 | 1,199,068 |
Property and equipment, net | 165,259 | 102,646 |
Operating lease right-of-use assets | 238,991 | 0 |
Intangible assets, net | 56,258 | 57,065 |
Goodwill | 195,043 | 166,832 |
Deferred tax assets | 75,013 | 69,983 |
Other noncurrent assets | 39,433 | 16,208 |
Total assets | 2,244,208 | 1,611,802 |
Current liabilities | ||
Accounts payable | 7,831 | 7,444 |
Accrued compensation and benefits expenses | 230,035 | 177,594 |
Accrued expenses and other current liabilities | 82,476 | 50,253 |
Income taxes payable, current | 9,064 | 27,538 |
Operating lease liabilities, current | 57,542 | 0 |
Total current liabilities | 386,948 | 262,829 |
Long-term debt | 25,074 | 25,031 |
Income taxes payable, noncurrent | 45,878 | 43,685 |
Operating lease liabilities, noncurrent | 180,848 | 0 |
Other noncurrent liabilities | 9,315 | 17,661 |
Total liabilities | 648,063 | 349,206 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value; 160,000,000 authorized; 55,207,446 and 54,099,927 shares issued, 55,187,711 and 54,080,192 shares outstanding at December 31, 2019 and December 31, 2018, respectively | 55 | 54 |
Additional paid-in capital | 607,051 | 544,700 |
Retained earnings | 1,020,590 | 759,533 |
Treasury stock | (177) | (177) |
Accumulated other comprehensive loss | (31,374) | (41,514) |
Total stockholders’ equity | 1,596,145 | 1,262,596 |
Total liabilities and stockholders’ equity | $ 2,244,208 | $ 1,611,802 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Trade receivables and contract assets allowance | $ 2,920 | $ 1,557 |
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 | 55,207,446 | 54,099,927 |
Common stock, shares outstanding | 55,187,711 | 54,080,192 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||||
Income Statement [Abstract] | |||||||||||||||||||||
Revenues | $ 632,775 | $ 588,103 | $ 551,587 | $ 521,333 | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 2,293,798 | $ 1,842,912 | $ 1,450,448 | ||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 410,069 | 377,525 | 355,915 | 344,689 | 319,031 | 301,081 | 289,175 | 277,634 | 1,488,198 | 1,186,921 | 921,352 | ||||||||||
Selling, general and administrative expenses | 124,999 | 118,886 | 111,762 | 101,786 | 97,447 | 93,226 | 93,273 | 89,641 | 457,433 | 373,587 | 327,588 | ||||||||||
Depreciation and amortization expense | 12,962 | 11,127 | 11,028 | 10,200 | 10,183 | 9,319 | 8,962 | 8,176 | 45,317 | 36,640 | 28,562 | ||||||||||
Income from operations | 84,745 | 80,565 | 72,882 | 64,658 | 78,270 | 64,560 | 54,237 | 48,697 | 302,850 | 245,764 | 172,946 | ||||||||||
Interest and other income, net | 1,950 | 2,509 | 1,190 | 3,076 | 1,080 | 1,941 | 1,052 | (551) | 8,725 | 3,522 | 4,601 | ||||||||||
Foreign exchange (loss)/gain | (1,898) | (3,105) | (3,562) | (3,484) | (582) | (514) | 1,830 | (247) | (12,049) | 487 | (3,242) | ||||||||||
Income before provision for income taxes | 84,797 | 79,969 | 70,510 | 64,250 | 78,768 | 65,987 | 57,119 | 47,899 | 299,526 | 249,773 | 174,305 | ||||||||||
Provision for income taxes | 10,273 | 12,967 | 11,733 | 3,496 | 18,803 | 369 | 6,864 | (16,519) | 38,469 | 9,517 | 101,545 | ||||||||||
Net income | 74,524 | 67,002 | 58,777 | 60,754 | 59,965 | 65,618 | 50,255 | 64,418 | 261,057 | 240,256 | 72,760 | ||||||||||
Foreign currency translation adjustments, net of tax | 6,295 | (21,338) | 20,065 | ||||||||||||||||||
Unrealized gain/(loss) on cash-flow hedging instruments, net of tax | 3,845 | (2,553) | 0 | ||||||||||||||||||
Comprehensive income | $ 86,741 | $ 54,725 | $ 62,934 | $ 66,797 | $ 52,798 | $ 63,426 | $ 32,345 | $ 67,796 | $ 271,197 | $ 216,365 | $ 92,825 | ||||||||||
Net income per share: | |||||||||||||||||||||
Basic (in dollars per share) | $ 1.35 | [1] | $ 1.22 | [1] | $ 1.07 | [1] | $ 1.12 | [1] | $ 1.11 | [2] | $ 1.22 | [2] | $ 0.94 | [2] | $ 1.21 | [2] | $ 4.77 | [1] | $ 4.48 | [2] | $ 1.40 |
Diluted (in dollars per share) | $ 1.29 | [1] | $ 1.16 | [1] | $ 1.02 | [1] | $ 1.06 | [1] | $ 1.05 | [2] | $ 1.15 | [2] | $ 0.89 | [2] | $ 1.15 | [2] | $ 4.53 | [1] | $ 4.24 | [2] | $ 1.32 |
Shares used in calculation of net income per share: | |||||||||||||||||||||
Basic (in shares) | 54,719,414 | 53,622,989 | 52,077,011 | ||||||||||||||||||
Diluted (in shares) | 57,667,789 | 56,672,676 | 54,984,173 | ||||||||||||||||||
[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. | ||||||||||||||||||||
[2] | (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 | Common Stock | Common StockRestricted Stock | Common StockRestricted Stock Units (RSUs) | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss)/ Income |
Balance, beginning of period at Dec. 31, 2016 | $ 781,412 | $ 50 | $ 374,907 | $ 444,320 | $ (37,688) | |||
Balance, beginning of period (in shares) at Dec. 31, 2016 | 51,097,687 | |||||||
Treasury stock, beginning of period at Dec. 31, 2016 | $ (177) | |||||||
Treasury stock, beginning of period (in shares) at Dec. 31, 2016 | 19,735 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation expense | 48,173 | 48,173 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract] | ||||||||
Stock units vested (in shares) | 140,043 | |||||||
Stock units withheld for employee taxes | (3,300) | (3,300) | ||||||
Stock units withheld for employee taxes (in shares) | (43,479) | |||||||
Proceeds from stock option exercises | 54,097 | $ 3 | 54,094 | |||||
Proceeds from stock options exercises (in shares) | 1,789,434 | |||||||
Foreign currency translation adjustments | 20,065 | 20,065 | ||||||
Foreign currency translation adjustments, net of tax | 20,065 | |||||||
Change in unrealized gains and losses on cash flow hedges, net of tax | 0 | |||||||
Cumulative effect of the adoption of ASU | ASU 2016-09 | 1,740 | 1,740 | ||||||
Net income | 72,760 | 72,760 | ||||||
Balance, end of period at Dec. 31, 2017 | 974,947 | $ 53 | 473,874 | 518,820 | (17,623) | |||
Balance, end of period (in shares) at Dec. 31, 2017 | 52,983,685 | |||||||
Treasury stock, end of period at Dec. 31, 2017 | $ (177) | |||||||
Treasury stock, end of period (in shares) at Dec. 31, 2017 | 19,735 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation expense | 44,279 | 44,279 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract] | ||||||||
Stock units vested (in shares) | 222,675 | |||||||
Stock units withheld for employee taxes | (8,131) | (8,131) | ||||||
Stock units withheld for employee taxes (in shares) | (71,334) | |||||||
Proceeds from stock option exercises | 34,679 | $ 1 | 34,678 | |||||
Proceeds from stock options exercises (in shares) | 945,166 | |||||||
Foreign currency translation adjustments, net of tax | (21,338) | (21,338) | ||||||
Change in unrealized gains and losses on cash flow hedges, net of tax | (2,553) | (2,553) | ||||||
Cumulative effect of the adoption of ASU | ASU 2014-09 | 457 | 457 | ||||||
Net income | 240,256 | 240,256 | ||||||
Balance, end of period at Dec. 31, 2018 | $ 1,262,596 | $ 54 | 544,700 | 759,533 | (41,514) | |||
Balance, end of period (in shares) at Dec. 31, 2018 | 54,080,192 | 54,080,192 | ||||||
Treasury stock, end of period at Dec. 31, 2018 | $ (177) | |||||||
Treasury stock, end of period (in shares) at Dec. 31, 2018 | 19,735 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation expense | $ 41,256 | 41,256 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract] | ||||||||
Stock issued in connection with acquisitions (in shares) | 18,787 | |||||||
Stock units vested (in shares) | 284,922 | |||||||
Stock units withheld for employee taxes | (15,951) | (15,951) | ||||||
Stock units withheld for employee taxes (in shares) | (95,223) | |||||||
Proceeds from stock option exercises | 37,047 | $ 1 | 37,046 | |||||
Proceeds from stock options exercises (in shares) | 899,033 | |||||||
Foreign currency translation adjustments, net of tax | 6,295 | 6,295 | ||||||
Change in unrealized gains and losses on cash flow hedges, net of tax | 3,845 | 3,845 | ||||||
Net income | 261,057 | 261,057 | ||||||
Balance, end of period at Dec. 31, 2019 | $ 1,596,145 | $ 55 | $ 607,051 | $ 1,020,590 | $ (31,374) | |||
Balance, end of period (in shares) at Dec. 31, 2019 | 55,187,711 | 55,187,711 | ||||||
Treasury stock, end of period at Dec. 31, 2019 | $ (177) | |||||||
Treasury stock, end of period (in shares) at Dec. 31, 2019 | 19,735 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 261,057 | $ 240,256 | $ 72,760 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 45,317 | 36,640 | 28,562 |
Operating lease right-of-use assets amortization expense | 55,859 | 0 | 0 |
Bad debt expense | 1,619 | 848 | 51 |
Deferred taxes | (7,764) | (48,000) | 12,561 |
Stock-based compensation expense | 72,036 | 59,188 | 52,407 |
Other | 4,764 | (1,712) | (4,010) |
Changes in assets and liabilities: | |||
Trade receivables and contract assets | (87,174) | (46,902) | (81,488) |
Prepaid and other assets | (7,155) | (8,432) | 1,061 |
Accounts payable | (1,685) | (772) | 1,221 |
Accrued expenses and other liabilities | 27,125 | 51,953 | 47,803 |
Operating lease liabilities | (53,419) | 0 | 0 |
Income taxes payable | (23,127) | 9,151 | 61,892 |
Net cash provided by operating activities | 287,453 | 292,218 | 192,820 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (99,308) | (37,574) | (29,806) |
Decrease in time deposits, net | 0 | 418 | 0 |
Acquisition of businesses, net of cash acquired (Note 2) | (39,322) | (74,268) | (6,810) |
Other investing activities, net | (6,739) | (699) | 465 |
Net cash used in investing activities | (145,369) | (112,123) | (36,151) |
Cash flows from financing activities: | |||
Proceeds from stock option exercises | 37,003 | 34,845 | 53,984 |
Payments of withholding taxes related to net share settlements of restricted stock units | (15,503) | (7,747) | (3,194) |
Proceeds from debt (Note 8) | 0 | 0 | 25,000 |
Repayment of debt (Note 8) | (9) | (3,494) | (25,103) |
Acquisition of businesses, contingent consideration | (1,104) | 0 | 0 |
Other financing activities, net | (24) | (603) | (941) |
Net cash provided by financing activities | 20,363 | 23,001 | 49,746 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,530 | (14,240) | 11,776 |
Net increase in cash, cash equivalents and restricted cash | 165,977 | 188,856 | 218,191 |
Cash, cash equivalents and restricted cash, beginning of period | 771,711 | 582,855 | 364,664 |
Cash, cash equivalents and restricted cash, end of period | 937,688 | 771,711 | 582,855 |
Cash paid during the year for: | |||
Income taxes, net of refunds | 65,306 | 40,437 | 26,669 |
Interest | 832 | 777 | 548 |
Supplemental disclosure of non-cash investing and financing activities | |||
Acquisition-date fair value of contingent consideration issued for acquisition of businesses | 3,876 | 8,390 | 0 |
Capital expenditures incurred but not yet paid | $ 16,921 | $ 2,140 | $ 1,042 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 936,552 | $ 770,560 | $ 582,585 |
Restricted Cash and Cash Equivalents [Abstract] | |||
Total restricted cash | 1,136 | 1,151 | 270 |
Total cash, cash equivalents and restricted cash | 937,688 | 771,711 | 582,855 |
Prepaid and Other Current Assets | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Restricted cash current | 0 | 14 | 91 |
Other Noncurrent Assets | |||
Restricted Cash and Cash Equivalents [Abstract] | |||
Restricted cash noncurrent | $ 1,136 | $ 1,137 | $ 179 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading global provider of digital platform engineering and software development services to customers located around the world, primarily in North America, Europe, Asia and Australia. The Company’s industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as other emerging industries. The Company is incorporated in Delaware with headquarters in Newtown, Pennsylvania. Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM and its subsidiaries. All intercompany balances and transactions have been eliminated. Reclassifications — Certain amounts recorded in the prior-period consolidated balance sheets and consolidated statements of cash flows presented have been reclassified to conform to the current-period financial statement presentation. These reclassifications had no effect on previously reported results of operations. The Company made the following reclassifications to its consolidated balance sheet as of December 31, 2018: • The Company combined previously reported Accounts receivable and Unbilled revenues into Trade receivables and contract assets. • Amounts previously reported within Accrued expenses and other current liabilities, Due to employees, Deferred compensation due to employees and Taxes payable, current were reclassified to Accrued compensation and benefits expenses. • Amounts previously reported within Taxes payable, current were reclassified to Accrued expenses and other current liabilities, Accrued compensation and benefits expenses and Income taxes payable, current. The following table summarizes the impact of these changes on the consolidated balance sheet as of December 31, 2018: As of December 31, 2018 As Previously Reported Change As Reported Current assets Accounts receivable, net of allowance of $1,557 $ 297,685 $ (297,685 ) $ — Unbilled revenues $ 104,652 $ (104,652 ) $ — Trade receivables and contract assets, net of allowance of $1,557 $ — $ 402,337 $ 402,337 Current liabilities Accrued expenses and other current liabilities $ 127,937 $ (77,684 ) $ 50,253 Accrued compensation and benefits expenses $ — $ 177,594 $ 177,594 Due to employees $ 49,683 $ (49,683 ) $ — Deferred compensation due to employees $ 9,920 $ (9,920 ) $ — Taxes payable, current $ 67,845 $ (67,845 ) $ — Income taxes payable, current $ — $ 27,538 $ 27,538 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. 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. Trade Receivables and Contract Assets — The Company classifies its right to consideration in exchange for deliverables as either a trade receivable or a contract asset. A trade receivable is a right to consideration that is unconditional (i.e., only the passage of time is required before payment is due) regardless of whether the amounts have been billed. Trade receivables are stated net of allowance for doubtful accounts. Outstanding trade receivables are reviewed periodically and allowances are provided for the estimated amount of receivables that may not be collected. The allowance for doubtful accounts is determined based on historical experience and management’s evaluation of trade receivables. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets primarily relate to unbilled amounts on fixed-price contracts. Contract assets are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. The Company recognizes an impairment loss when the contract carrying amount is greater than the remaining consideration receivable, less directly related costs to be incurred. 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 a 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. Business Combinations — The Company accounts for business combinations using the acquisition method which requires it to estimate the fair value of identifiable assets acquired and liabilities assumed, including any contingent consideration, to properly allocate the purchase price to the individual assets acquired and liabilities assumed in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations . The allocation of the purchase price utilizes significant estimates in determining the fair values of identifiable assets acquired and liabilities assumed, especially with respect to intangible assets. The significant estimates and assumptions used include the timing and amount of forecasted revenues and cash flows, anticipated growth rates, client attrition rates, the discount rate reflecting the risk inherent in future cash flows and the determination of useful lives for finite-lived assets. 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. The acquired assets typically include customer relationships, software, trade names, non-competition agreements, and assembled workforce and as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. If the initial accounting for the business combination has not been completed by the end of the reporting period in which the business combination occurs, provisional amounts are reported to present information about facts and circumstances that existed as of the acquisition date. Once the measurement period ends, which in no case extends beyond one year from the acquisition date, revisions to the accounting for the business combination are recorded in earnings. 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 the fair value of contingent consideration arrangements that are not measurement period adjustments are recognized in earnings. 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. When the carrying value of an asset is more than the sum of the undiscounted expected future cash flows, an impairment is recognized. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill and other intangible assets that have indefinite useful lives are accounted for in accordance with FASB ASC 350, Intangibles — Goodwill and Other . The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31st, and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is an operating segment or one level below. The Company does not have intangible assets other than goodwill that have indefinite useful lives. Derivative Financial Instruments — The Company enters into derivative financial instruments to manage exposure to fluctuations in certain foreign currencies. During 2018, for accounting purposes, these foreign currency forward contracts became designated as hedges, as defined under FASB ASC Topic 815, Derivatives and Hedging . The Company measures these foreign currency derivative contracts at fair value on a recurring basis utilizing Level 2 inputs. The Company records changes in the fair value of these hedges in accumulated other comprehensive income/(loss) until the forecasted transaction occurs. When the forecasted transaction occurs, the Company reclassifies the related gain or loss on the cash flow hedge to cost of revenues (exclusive of depreciation and amortization). In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the Company reclassifies the gain or loss on the underlying hedge into income. If the Company does not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in income. The cash flow impact of derivatives identified as hedging instruments is reflected as cash flows from operating activities. The cash flow impact of derivatives not identified as hedging instruments is reflected as cash flows from investing activities. Fair Value of Financial Instruments — The Company makes assumptions about fair values of its financial assets and liabilities in accordance with FASB 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. Changes in the fair value of liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 11 “Fair Value Measurements.” Revenue Recognition — Effective January 1, 2018, the Company adopted the Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) as amended using the modified retrospective method. The standard effectively replaced previously existing revenue recognition guidance (Topic 605) and requires entities to 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 as well as requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company applied a practical expedient to aggregate the effect of all contract modifications that occurred before the adoption date. The following table summarizes the impacts of changes in accounting policies after adoption of Topic 606 on the Company’s consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2018 , which primarily resulted from deferring the timing of revenue recognition for contracts that were previously recognized on a cash basis and recognizing revenues from certain license agreements at a point-in-time rather than over time: Year Ended December 31, 2018 As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Revenues $ 1,842,912 $ 1,843,159 $ (247 ) Income from operations $ 245,764 $ 246,011 $ (247 ) Provision for income taxes $ 9,517 $ 9,572 $ (55 ) Net income $ 240,256 $ 240,448 $ (192 ) For the years ended December 31, 2019 and 2018 The Company recognizes revenues when control of goods or services is passed to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Such control may be transferred over time or at a point in time depending on satisfaction of obligations stipulated by the contract. Consideration expected to be received may consist of both fixed and variable components and is allocated to each separately identifiable performance obligation based on the performance obligation’s relative standalone selling price. Variable consideration usually takes the form of volume-based discounts, service level credits, price concessions or incentives. Determining the estimated amount of such variable consideration involves assumptions and judgment that can have an impact on the amount of revenues reported. The Company derives revenues from a variety of service arrangements, which have been evolving to provide more customized and integrated solutions to customers by combining software engineering with customer experience design, business consulting and technology innovation services. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. The Company generates the majority of its revenues under time-and-material contracts, which are billed using hourly, daily or monthly rates to determine the amounts to be charged directly to the customer. EPAM applies a practical expedient and revenues related to time-and-material contracts are recognized based on the right to invoice for services performed. Fixed-price contracts include maintenance and support arrangements which may exceed one year in duration. Maintenance and support arrangements generally relate to the provision of ongoing services and revenues for such contracts are recognized ratably over the expected service period. Fixed-price contracts also include application development arrangements, where progress towards satisfaction of the performance obligation is measured using input or output methods and input methods are used only when there is a direct correlation between hours incurred and the end product delivered. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. Revenues from licenses which have significant stand-alone functionality are recognized at a point in time when control of the license is transferred to the customer. Revenues from licenses which do not have stand-alone functionality are recognized over time. If there is an uncertainty about the receipt of payment for the services, revenue recognition is deferred until the uncertainty is sufficiently resolved. The Company applies a practical expedient and does not assess the existence of a significant financing component if the period between transfer of the service to a customer and when the customer pays for that service is one year or less. 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. For the year ended December 31, 2017 The Company recognized revenue when the following criteria were met: (1) persuasive evidence of an arrangement existed; (2) delivery had occurred; (3) the sales price was fixed or determinable; and (4) collectability was reasonably assured. Determining whether and when some of these criteria had been satisfied often involved assumptions and judgments that could have had a significant impact on the timing and amount of revenue reported. The Company derived its revenues from a variety of service offerings, which represent specific competencies of its delivery 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 the appropriate revenue recognition. Fees for these contracts may have been in the form of time-and-materials or fixed-price arrangements. If there was uncertainty about the project completion or receipt of payment for the services, revenue was deferred until the uncertainty was sufficiently resolved. At the time revenue was recognized, the Company provided for any contractual deductions and reduced revenue accordingly. The Company reported gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. The Company deferred amounts billed to its customers for revenues not yet earned. Such amounts were anticipated to be recorded as revenues when services were performed in subsequent periods. Unbilled revenue was recorded when services have been provided but billed subsequent to the period end in accordance with the contract terms. The majority of the Company’s revenues ( 90.3% of revenues in 2017) were generated under time-and-material contracts whereby revenues were recognized as services were performed with the corresponding cost of providing those services reflected as cost of revenues. The majority of such revenues were billed using hourly, daily or monthly rates as actual time was incurred on the project. Revenues from fixed-price contracts ( 8.3% of revenues in 2017) included fixed-price maintenance and support arrangements, which may have exceeded one year in duration and revenues from maintenance and support arrangements were generally recognized ratably over the expected service period. Fixed-price contracts also included application development arrangements and revenues from these arrangements were primarily determined using the proportional performance method. In cases where final acceptance of the product, system, or solution was specified by the customer, and the acceptance criteria were not objectively determinable to have been met as the services were provided, revenues were deferred until all acceptance criteria had been met. In the absence of a sufficient basis to measure progress towards completion, revenue was recognized upon receipt of final acceptance from the customer. Assumptions, risks and uncertainties inherent in the estimates used in the application of the proportional performance method of accounting could have affected the amount of revenues, receivables and deferred revenues at each reporting period. Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries, bonuses, fringe benefits, stock-based compensation, project related travel costs and fees for subcontractors that are assigned to customer projects. Salaries and other compensation expenses of the Company’s delivery professionals are reported as cost of revenues regardless of whether the employees are actually performing client services during a given period. Selling, General and Administrative Expenses — Consists of expenses associated with promoting and selling the Company’s services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation, severance, bad debt, travel, legal and accounting services, insurance, facilities including operating leases, advertising and other promotional activities. In addition, we pay a membership fee of 1% of revenues generated in Belarus to the administrative organization of the Belarus High-Technologies Park. Stock-Based Compensation — The Company recognizes the cost of its equity settled stock-based incentive awards based on the fair value of the award at the date of grant, net of estimated forfeitures. The cost is expensed evenly over the 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. Quarterly, the forfeiture assumption is adjusted and such adjustment may affect the timing of recognition of the total amount of expense recognized over the vesting period. Equity-based awards that do not require future service are expensed immediately. Stock-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. 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 realizability of deferred tax assets is primarily dependent on future earnings. 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. A 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. On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (“U.S. Tax Act”), which subjects a U.S. shareholder to taxes on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. During the year ended December 31, 2018, the Company elected to provide for the tax expense related to GILTI in the year the tax is incurred. This election did not have a material impact on the financial statements for the years ended December 31, 2019 or 2018. 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 by 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. Foreign Currency Translation — Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income/(loss). For consolidated foreign subsidiaries whose functional currency is the U.S. dollar, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income 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 concentration of credit risk consist primarily of cash, cash equivalents and trade receivables. The Company maintains cash, 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. The Company has cash in banks in countries such as Belarus, Russia, Ukraine, Kazakhstan, Armenia and Uzbekistan, where the banking sector remains subject to periodic instability. Banking and other financial systems generally do not meet the banking standards of more developed markets, and bank deposits made by corporate entities are not insured. As of December 31, 2019 , $206,485 of total cash was kept in banks in these countries, of which $123,370 was held in Belarus. In this region, and particularly in Belarus, a banking crisis, bankruptcy or insolvency of banks that process or hold the Company’s funds, may result in the loss of deposits or adversely affect the Company’s ability to complete banking transactions in the region, which could adversely affect the Company’s business and financial condition. Cash in this region is used for operational needs and cash balances in those banks move with the needs of those entities. Trade receivables are generally dispersed across many customers operating in different industries; therefore, concentration of credit risk is limited. Historically, credit losses and write-offs of trade receivable balances have not been material to the consolidated financial statements. 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, Canadian dollars, Swiss francs and Russian rubles and incurs expenditures principally in Russian rubles, Hungarian forints, Polish zlotys, British pounds, Swiss francs, euros, Indian rupees and Chinese yuan renminbi. 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 trade receivables 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 are used materially in the Company’s business, appreciate or depreciate against the U.S. dollar. The Company has a hedging program whereby it entered into a series of foreign exchange forward contracts that are designated as cash flow hedges of forecasted Russian ruble, Polish zloty and Indian rupee transactions. Interest rate risk — The Company’s exposure to market risk is influenced primarily by changes in interest rates received on cash and cash equivalents and paid on the Company’s borrowings, mainly under the 2017 Credit Facility, which is subject to a variety of rates depending on the type and timing of funds borrowed (See Note 8 “Long-Term Debt”). The Company does not use derivative financial instruments to hedge the risk of interest rate volatility. Adoption of New Accounting Standards Unless otherwise discussed below, the adoption of new accounting standards did not have a material impact on the Company’s consolidated financial position, results of operations, and cash flows. Leases — In February 2016, the FASB issued ASU 2016-02, Leases (“Topic 842”). The standard supersedes previously existing lease guidance (Topic 840) and requires entities to recognize all leases, with the exception of leases with a term of twelve months or less, on the balance sheet as right-of-use assets (“RoU Assets”) and lease liabilities. The guidance also changes disclosure requirements with a focus on providing information that will enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The Company adopted Topic 842, effective January 1, 2019, using the optional transition approach, which allows the Company to apply the provisions of the standard at the effective date without adjusting the comparable periods and carry forward disclosures under previously existing guidance for those periods presented within the Company’s financial statements. The Company determines if an arrangement is a lease or contains a lease at inception. The Company performs an assessment and classifies the lease as either an operating lease or a financing lease at the lease commencement date with a right-of-use asset and a lease liability recognized in the consolidated balance sheet under both classifications. The Company does not have finance leases that are material to the Company’s consolidated financial statements. Lease liabilities are initially measured at the present value of lease payments not yet paid. The present value is determined by applying the readily determinable rate implicit in the lease or, if not available, the incremental borrowing rate of the lessee. The Company determines the incremental borrowing rate of the lessee on a lease-by-lease basis by developing an estimated centralized U.S. dollar borrowing rate for a fully collateralized obligation with a term similar to the lease term and adjusts the rate to reflect the incremental risk associated with the foreign currency in which the lease is denominated. The development of this estimate includes the use of recovery rates, U.S. risk-free rates, foreign currency/country base rate yields, and a synthetic corporate credit rating of the Company developed using regression analysis. Lease agreements of the Company may include options to extend or terminate the lease and the Company includes such options in the lease term when it is reasonably certain that the Company will exercise that option. RoU Assets are recognized based on the initial measurement of the lease liabilities plus initial direct costs less lease incentives and, according to the guidance for long-lived assets, RoU Assets are reviewed for impairment whenever events or changes in circumstances ind |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Continuum — On March 15, 2018 , the Company acquired all of the outstanding equity of Continuum Innovation LLC together with its subsidiaries (“Continuum”) to enhance the Company’s consulting capabilities as well as its digital and service design practices. Continuum, headquartered in Boston with offices located in Milan, Seoul, and Shanghai, focuses on four practices including strategy, physical and digital design, technology and its Made Real Lab. The acquisition of Continuum added approximately 125 design consultants to the Company’s headcount. In connection with the Continuum acquisition, the Company paid $52,515 of cash and committed to making a cash earnout payment with a maximum amount payable of $3,135 , subject to attainment of specified performance targets in the 12 months after the acquisition date. See Note 11 “Fair Value Measurements” for more information regarding this earnout payment. Think — On November 1, 2018 , the Company acquired all of the equity interests of Think Limited (“Think”), a digital transformation agency headquartered in London, UK. This acquisition is intended to strengthen EPAM’s digital and organizational consulting capabilities in the UK and Western European markets and enhance the Company’s global product and design offerings. In connection with the Think acquisition, the Company paid $26,254 at closing and committed to making a cash earnout payment with a maximum amount payable based on exchange rates at the date of acquisition of $8,156 subject to attainment of specified performance targets in the 12 months after the acquisition date. During the year ended December 31, 2019, the Company paid $185 of net true-up payments which increased the purchase price. See Note 11 “Fair Value Measurements” for more information regarding the earnout payment. test IO — On April 30, 2019 , the Company acquired 100% of the equity interests of a crowdtesting company, test IO GmbH, and its subsidiary (“test IO”). In connection with the test IO acquisition, the Company paid $17,323 of cash. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition as updated for any changes as of December 31, 2019 for each respective acquisition: Continuum Think test IO Cash and cash equivalents $ 2,251 $ 2,344 $ 663 Trade receivables and contract assets 9,139 2,637 688 Prepaid and other current assets 936 900 96 Goodwill 26,617 20,477 12,150 Intangible assets 14,450 6,882 6,219 Property and equipment and other noncurrent assets 8,902 1,214 151 Total assets acquired $ 62,295 $ 34,454 $ 19,967 Accounts payable, accrued expenses and other current liabilities $ 3,746 $ 2,025 $ 910 Long-term debt (Note 8) 3,220 — — Other noncurrent liabilities 490 — 1,734 Total liabilities assumed $ 7,456 $ 2,025 $ 2,644 Net assets acquired $ 54,839 $ 32,429 $ 17,323 During 2018, the Company adjusted initially recognized intangible assets acquired with Continuum and their useful lives, recognized an additional intangible asset in the form of a favorable lease, removed a noncurrent liability associated with an initially recognized unfavorable lease and revised the initial fair value of contingent consideration. The Company also finalized a working capital adjustment that resulted in cash collection in the amount of $76 reducing the original amount of the net assets acquired. These adjustments resulted in a corresponding decrease to the originally recognized value of acquired goodwill. During the first quarter of 2019, the Company finalized the fair value of the assets acquired and liabilities assumed in the acquisition of Continuum and no additional adjustments were recorded. During 2019, the Company recorded purchase price adjustments which increased the original purchase price for Think by $185 , with a corresponding adjustment to net assets acquired. In addition, the Company recorded a $1,497 increase in deferred tax assets and other insignificant adjustments to other accounts with corresponding decreases to goodwill. During the fourth quarter of 2019, the Company finalized the fair value of the assets acquired and liabilities assumed in the acquisition of Think. As of December 31, 2019, the Company finalized the valuation of intangible assets acquired in connection with the acquisition of test IO. For the acquisition of test IO, estimated fair values of the income tax-related assets acquired and liabilities assumed remain provisional and based on the facts and circumstances that existed as of the acquisition date. The Company expects to complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date. During 2019, the Company recorded purchase price adjustments which increased the original purchase price for test IO and adjusted related working capital accounts increasing the original amount of the net assets acquired by $119 . In addition for the test IO acquisition, the Company reduced the value of acquired intangible assets by $145 with a corresponding increase to goodwill. The following table presents the estimated fair values and useful lives of intangible assets acquired from Continuum, Think, and test IO as of the date of acquisition and updated for any changes during the year ended December 31, 2019 for each respective acquisition: Continuum Think test IO Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 6.5 $ 5,800 7 $ 6,117 7 $ 2,456 Favorable lease 11.2 5,500 — — — — Software — — — — 6 3,461 Contract royalties 8 1,900 — — — — Trade names 5 1,250 5 765 4 302 Total $ 14,450 $ 6,882 $ 6,219 In connection with the adoption of Topic 842, effective January 1, 2019, the Company reclassified the favorable lease intangible asset to Operating lease right-of-use assets. The goodwill recognized as a result of the acquisitions is attributable primarily to strategic and synergistic opportunities related to the consulting and design businesses, the assembled workforces acquired and other factors. The goodwill acquired as a result of the Continuum acquisition is expected to be deductible for income tax purposes while the goodwill acquired as a result of the Think and test IO acquisitions is not expected to be deductible for income tax purposes. Revenues generated by test IO, acquired on April 30, 2019, totaled $4,539 for the year ended December 31, 2019 . Pro forma results of operations have not been presented because the effect of the acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. Other 2019 Acquisitions — During the year ended December 31, 2019, the Company completed four additional acquisitions with an aggregate cash purchase price of $24,786 and committed to making cash earnout payments with a maximum amount payable of $3,000 subject to attainment of specified performance targets ranging from 12 months to 24 months after the respective acquisition dates. These acquisitions increased EPAM’s educational service and platform offerings and expanded the Company’s geographical reach, as well as added $7,488 in intangible assets, consisting mainly of customer relationships. Revenues generated by these other 2019 acquisitions totaled $9,336 during the year ended December 31, 2019. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. During the year ended December 31, 2017, the Company completed acquisitions with aggregated purchase price of $6,980 . These acquisitions individually and in the aggregate are not material to the Company’s consolidated financial statements. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2019 | |
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 Russia Total Balance as of January 1, 2018 $ 77,290 $ 42,241 $ — $ 119,531 Continuum acquisition (Note 2) 26,617 — — 26,617 Think acquisition (Note 2) — 22,482 — 22,482 Effect of currency translation (365 ) (1,433 ) — (1,798 ) Balance as of December 31, 2018 103,542 63,290 — 166,832 test IO acquisition (Note 2) 3,301 8,849 — 12,150 Other 2019 acquisitions (Note 2) 6,503 9,546 738 16,787 Think purchase accounting adjustments — (2,043 ) — (2,043 ) Effect of currency translation $ 80 $ 1,231 $ 6 1,317 Balance as of December 31, 2019 $ 113,426 $ 80,873 $ 744 $ 195,043 The Russia segment had accumulated goodwill impairment losses of $2,241 as of December 31, 2019 , 2018 and 2017 . There were no accumulated goodwill impairment losses in the North America or Europe reportable segments as of December 31, 2019 , 2018 or 2017 . Intangible assets other than goodwill as of December 31, 2019 and 2018 were as follows: As of December 31, 2019 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 9 $ 87,489 $ (38,526 ) $ 48,963 Software 6 4,472 (486 ) 3,986 Trade names 5 6,439 (4,753 ) 1,686 Contract royalties 8 1,900 (435 ) 1,465 Assembled workforce 3 158 — 158 Total $ 100,458 $ (44,200 ) $ 56,258 As of December 31, 2018 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 9.5 $ 78,042 $ (29,580 ) $ 48,462 Favorable lease 11.2 5,500 (410 ) 5,090 Trade names 5.3 6,111 (4,300 ) 1,811 Contract royalties 8 1,900 (198 ) 1,702 Total $ 91,553 $ (34,488 ) $ 57,065 In connection with the adoption of Topic 842, effective January 1, 2019, the Company reclassified the favorable lease intangible asset to Operating lease right-of-use assets. See Note 7 “Leases” for further information regarding the Company’s operating leases. All of the intangible assets other than goodwill have finite lives and as such are subject to amortization. Amortization of the other intangible assets is recognized in depreciation and amortization expense in the consolidated statements of income and comprehensive income. The following table presents amortization expense recognized for the periods indicated: For the Years Ended December 31, 2019 2018 2017 Customer relationships $ 8,743 $ 7,637 $ 6,643 Software 486 — — Trade names 447 266 896 Contract royalties 238 198 — Favorable lease — 410 — Non-competition agreements — — 23 Total $ 9,914 $ 8,511 $ 7,562 Based on the carrying value of the Company’s existing intangible assets as of December 31, 2019, the estimated amortization expense for the future years is as follows: Year ending December 31, Amount 2020 $ 11,322 2021 11,322 2022 11,126 2023 9,526 2024 7,023 Thereafter 5,939 Total $ 56,258 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: Weighted Average Useful Life (in years) As of As of Computer hardware 3 $ 96,286 $ 74,884 Buildings 47 51,300 34,458 Purchased computer software 3 32,115 10,406 Leasehold improvements 8 30,634 25,036 Furniture, fixture and other equipment 7 28,193 21,544 Office equipment 6 18,901 13,203 Land improvements 18 2,137 1,474 259,566 181,005 Less accumulated depreciation and amortization (94,307 ) (78,359 ) Total $ 165,259 $ 102,646 Depreciation and amortization expense related to property and equipment was $35,379 , $28,539 and $21,000 during the years ended December 31, 2019 , 2018 and 2017 , respectively. On November 1, 2019 , the Company acquired an office building in Minsk, Belarus for $18,904 , excluding refundable VAT. The acquired building is intended to be used in the Company’s normal operations as office space for its employees; however, a portion of the building was leased to third parties under operating lease agreements prior to the Company’s purchase and the Company will continue leasing under those agreements (see Note 7 “Leases”). In addition to this building, the Company has other assets which generate lease income. The gross amount of such assets including the leased portion of the Minsk building was $10,654 and the associated accumulated depreciation was $101 as of December 31, 2019. Depreciation expense associated with these assets held under operating leases was $42 for the year ended December 31, 2019. There were no |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: As of As of Value added taxes payable 24,016 19,985 Contingent consideration, current (Note 11) 10,057 1,501 Deferred revenue 9,132 4,558 Other current liabilities and accrued expenses 39,271 24,209 Total $ 82,476 $ 50,253 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income/(Loss) Before Provision for Income Taxes Income/(loss) before provision for income taxes based on geographic location is disclosed in the table below: For the Years Ended December 31, 2019 2018 2017 Income/(loss) before provision for income taxes: United States $ 65,370 $ 44,527 $ (6,595 ) Foreign 234,156 205,246 180,900 Total $ 299,526 $ 249,773 $ 174,305 Provision for Income Taxes The provision for income taxes consists of the following: For the Years Ended December 31, 2019 2018 2017 Current Federal $ 16,943 $ 10,814 $ 65,571 State 3,610 4,123 (204 ) Foreign 25,680 42,580 23,617 Deferred Federal (9,425 ) (37,785 ) 7,235 State (358 ) (3,548 ) (90 ) Foreign 2,019 (6,667 ) 5,416 Total $ 38,469 $ 9,517 $ 101,545 The U.S. Tax Act significantly changed U.S. corporate income tax laws including a reduction of the U.S. corporate income tax rate from 35.0% to 21.0% effective January 1, 2018 and the creation of a territorial tax system with a one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax. In addition, the U.S. Tax Act created new taxes on certain foreign-sourced earnings and certain related party payments, which are referred to as GILTI and the base erosion and anti-abuse tax (“BEAT”), respectively. Due to the timing of the enactment and the complexity involved in applying the provisions of the U.S. Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in its financial statements as of December 31, 2017. During the year ended December 31, 2018, the Company completed its analysis of the impact of the U.S. Tax Act and recorded the following adjustments to the recorded provisional amounts: • The one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax requires the Company to pay U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8.0% on the remaining earnings. During the year ended December 31, 2017, the Company recorded a provisional income tax expense and corresponding income taxes payable of $64,321 to be paid over the next 8 years associated with the one-time transition tax. During the year ended December 31, 2018, the Company completed its assessment and refined its estimate reducing the provisional charge by $4,935 . The total charge for the one-time transition tax now totals $59,386 . • In 2017, the Company provisionally reduced its net deferred tax assets by $10,311 reflecting the impact of the change in the U.S. statutory tax rate from 35.0% to 21.0% in the periods in which the net deferred tax assets are expected to be realized as a result of the U.S. Tax Act. In 2018, the Company completed its analysis, and consequently recorded an additional charge of $926 to further reduce its net deferred tax assets for a total charge of $11,237 . In 2017, the Company reassessed its accumulated foreign earnings in light of the U.S. Tax Act and determined $97,000 of its accumulated earnings in Belarus were no longer indefinitely reinvested. As a result, the Company recorded a charge of $4,850 in the provision for income taxes during the year ended December 31, 2017 for the withholding tax payable to Belarus when the earnings are distributed. In 2018, the Company remitted this full amount of accumulated earnings as dividends and also remitted as dividends certain earnings of its foreign subsidiaries in Canada, Cyprus, Ireland and Russia and additional earnings in Belarus. Based on proposed tax regulations issued by the U.S. Department of the Treasury during 2018, it was determined that an offsetting U.S. foreign tax credit could be claimed for the withholding tax paid to Belarus resulting in a net $4,850 income tax benefit recognized during the year ended December 31, 2018. As of December 31, 2019, the Company has determined that all accumulated undistributed foreign earnings of $861,893 are expected to be indefinitely reinvested. Due to the enactment of the U.S. Tax Act and the one-time transition tax on accumulated foreign subsidiary earnings, these accumulated foreign earnings are no longer expected to be subject to U.S. federal income tax if repatriated but could be subject to state and foreign income and withholding taxes. Effective Tax Rate Reconciliation The reconciliation of the provision for income taxes at the federal statutory income tax rate to the Company’s effective income tax rate is as follows: For the Years Ended December 31, 2019 2018 2017 Provision for income taxes at federal statutory rate $ 62,898 $ 52,452 $ 61,007 Increase/(decrease) in taxes resulting from: Impact from U.S. Tax Act — (4,009 ) 74,632 Entity classification election deferred tax asset impact — (25,962 ) — GILTI and BEAT U.S. taxes (926 ) 1,526 — Excess tax benefits relating to stock-based compensation (28,385 ) (17,370 ) (9,307 ) Subsidiary withholding tax liability and related foreign tax credit — (4,850 ) 4,850 Foreign tax expense and tax rate differential (1,402 ) (88 ) (39,997 ) Effect of permanent differences 3,264 2,724 3,205 State taxes, net of federal benefit 2,971 3,452 (116 ) Change in valuation allowance 218 151 783 Stock-based compensation expense 571 652 6,908 Other (740 ) 839 (420 ) Provision for income taxes $ 38,469 $ 9,517 $ 101,545 The Company’s worldwide effective tax rate for years ended December 31, 2019 , 2018 and 2017 was 12.8% , 3.8% and 58.3% , respectively. The provision for income taxes in the year ended December 31, 2018 was favorably impacted by the recognition of $25,962 of net deferred tax assets resulting from the Company’s decision to change the tax status and to classify most of its foreign subsidiaries as disregarded for U.S. income tax purposes. This change subjects the income of the disregarded foreign subsidiaries to U.S. income taxation, resulting in a reduced foreign tax rate differential benefit in 2019 and 2018 as compared to 2017. In addition, the Company recorded excess tax benefits upon vesting or exercise of stock-based awards of $28,385 , $17,370 and $9,307 during the years ended December 31, 2019 , 2018 and 2017 , respectively. In Belarus, member technology companies of High-Technologies Park, including the Company’s local subsidiary, have a full exemption from Belarus income tax on qualifying income through January 2049 . However, beginning February 1, 2018, the earnings of the Company’s Belarus local subsidiary became subject to U. S. income taxation due to the Company’s decision to change the tax status of the subsidiary. Consequently, there was less income tax benefit from the Belarus tax exemption for the year ended December 31, 2018 compared to the previous year. There was no aggregate dollar benefit derived from this tax holiday for the year ended December 31, 2019 , and the aggregate dollar benefits derived from this tax holiday approximated $1,352 and $15,503 for the years ended December 31, 2018 and 2017 , respectively. There was no impact on diluted net income per share for the year ended December 31, 2019 . The benefit the tax holiday had on diluted net income per share approximated $0.02 and $0.28 for the years ended December 31, 2018 and 2017 , respectively. 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: As of As of Deferred tax assets: Property and equipment $ 5,329 $ 4,531 Intangible assets 574 1,262 Accrued expenses 41,457 32,067 Net operating loss carryforward 5,168 4,983 Deferred revenue 3,510 5,802 Stock-based compensation 29,596 27,558 Operating lease liabilities 7,438 — Foreign tax credit 3,491 — Foreign currency exchange 2,499 5,772 Other assets 1,533 782 Deferred tax assets $ 100,595 $ 82,757 Less: valuation allowance (3,877 ) (3,189 ) Total deferred tax assets $ 96,718 $ 79,568 Deferred tax liabilities: Property and equipment $ 4,981 $ 1,480 Intangible assets 11,364 5,582 Operating lease right-of-use assets 6,900 — Accrued revenue and expenses 2,176 1,540 U.S. taxation of foreign subsidiaries — 3,000 Other liabilities 812 933 Total deferred tax liabilities $ 26,233 $ 12,535 Net deferred tax assets $ 70,485 $ 67,033 As of December 31, 2019 and 2018 , the Company classified $4,530 and $2,950 , respectively, of deferred tax liabilities as Other noncurrent liabilities in the consolidated balance sheets. Included in the stock-based compensation expense deferred tax asset at December 31, 2019 and 2018 is $6,788 and $7,561 , respectively, that is related to acquisitions and is amortized for tax purposes over a 10 to 15 -year period. As of December 31, 2019 , the Company’s domestic and foreign net operating loss (“NOL”) carryforwards for income tax purposes were approximately $3,712 and $25,487 , respectively. If not utilized, the domestic NOL carryforwards will begin to expire in 2021. The foreign NOL carryforwards include $9,311 from jurisdictions with no expiration date, with the remainder expiring as follows: $274 in 2020, $5,805 in 2021, $6,273 in 2022, $1,371 in 2023, $2,204 in 2024, and $249 beyond 2024. The Company maintains a valuation allowance primarily related to the net operating loss carryforwards in certain foreign jurisdictions that the Company believes are not likely to be realized, which totaled $21,948 as of December 31, 2019 . Unrecognized Tax Benefits As of December 31, 2019 and 2018 , unrecognized tax benefits of $2,904 and $1,432 , respectively, are included in Income taxes payable, noncurrent within the consolidated balance sheets. There were no significant new tax positions that resulted in unrecognized tax benefits or reversals of prior year tax positions during the years ended December 31, 2019 , 2018 and 2017. 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, Russia, Germany, Ukraine, the United Kingdom, Hungary, Switzerland, Netherlands, Poland and India. The tax years subsequent to 2015 remain open to examination by the United States Internal Revenue Service and generally, the tax years subsequent to 2015 remain open to examination by various state and local taxing authorities and various foreign taxing authorities. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the RoU Assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 to 11.4 years . Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company leases and subleases a portion of its office space to third parties. Lease income and sublease income were immaterial for the years ended December 31, 2019, 2018 and 2017. During the year ended December 31, 2019 , the components of lease expense were as follows: Income Statement Classification Year Ended December 31, 2019 Operating lease cost Selling, general and administrative expenses $ 62,740 Variable lease cost Selling, general and administrative expenses 8,730 Short-term lease cost Selling, general and administrative expenses 3,870 Total lease cost $ 75,340 Rent expense under operating lease agreements for the years ended December 31, 2018 and 2017 was $46,924 and $37,916 , respectively. Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 59,952 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 107,822 Non-cash net increase due to lease modifications: Operating lease right-of-use assets $ 10,124 Operating lease liabilities $ 10,192 Weighted average remaining lease term and discount rate as of December 31, 2019 , were as follows: As of December 31, 2019 Weighted average remaining lease term, in years: Operating leases 6.1 Weighted average discount rate: Operating leases 3.6 % As of December 31, 2019 , operating lease liabilities will mature as follows: Year ending December 31, Lease Payments 2020 $ 64,667 2021 54,343 2022 36,886 2023 27,018 2024 22,603 Thereafter 58,532 Total lease payments 264,049 Less: imputed interest (25,660 ) Total $ 238,389 There were no lease agreements that contained material restrictive covenants or material residual value guarantees as of December 31, 2019 . There were no material lease agreements signed with related parties as of December 31, 2019 . As of December 31, 2019 , the Company had committed to payments of $ 37,559 related to operating lease agreements that had not yet commenced. These operating leases will commence during various dates during 2020 with lease terms ranging from 1.2 to 10.9 years. The Company did not have any material finance lease agreements that had not yet commenced. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM 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 “2014 Lenders”). Under the 2014 Credit Facility, the Company’s borrowing capacity was set at $100,000 , with potential to increase it to $200,000 if certain conditions were met. Borrowings under the 2014 Credit Facility were denominated in U.S. dollars or, up to a maximum of $50,000 in British pounds, Canadian dollars, euros and Swiss francs and other currencies as may be approved by the administrative agent and the 2014 Lenders. Borrowings under the 2014 Credit Facility bore interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. The base rate was equal to the highest of (a) the Federal Funds Open Rate, plus 0.5% , (b) the Prime Rate, and (c) the Daily LIBOR Rate, plus 1.0% . On May 24, 2017, the Company terminated the 2014 Credit Facility and entered into a new unsecured credit facility (the “2017 Credit Facility”), as may be amended from time to time, with PNC Bank, National Association; PNC Capital Markets LLC; Citibank N.A.; Wells Fargo Bank, National Association; Fifth Third Bank and Santander Bank, N.A. (collectively the “Lenders”). The 2017 Credit Facility provides for a borrowing capacity of $300,000 , with potential to increase the credit facility up to $400,000 if certain conditions are met. The 2017 Credit Facility matures on May 24, 2022 . Borrowings under the 2017 Credit Facility may be denominated in U.S. dollars or up to a maximum of $100,000 in British pounds, Canadian dollars, euros and Swiss francs and other currencies as may be approved by the administrative agent and the Lenders. Borrowings under the 2017 Credit Facility bear interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. The base rate is equal to the highest of (a) the Overnight Bank Funding Rate, plus 0.5% , (b) the Prime Rate, or (c) the Daily LIBOR Rate, plus 1.0% . As of December 31, 2019 , the Company’s outstanding borrowings are subject to a LIBOR-based interest rate, which resets regularly at issuance, based on lending terms. The 2017 Credit Facility includes customary business and financial covenants that may restrict the Company’s ability to make or pay dividends (other than certain intercompany dividends) if a potential or an actual event of default has occurred or would be triggered. As of December 31, 2019 , the Company was in compliance with all covenants contained in the 2017 Credit Facility. The following table presents the outstanding debt and borrowing capacity of the Company under the 2017 Credit Facility: As of As of Outstanding debt $ 25,000 $ 25,000 Interest rate 2.8 % 3.5 % Irrevocable standby letters of credit $ 303 $ 382 Available borrowing capacity $ 274,697 $ 274,618 Current maximum borrowing capacity $ 300,000 $ 300,000 As part of the acquisition of Continuum in 2018, the Company assumed $3,448 of long-term debt associated with a leased facility and payable to Continuum’s landlord. The debt was payable in monthly installments through March 31, 2029 and bore interest at a rate of 8% per annum. In March 2018, the Company paid $3,448 to settle this assumed long-term debt. |
REVENUES (Notes)
REVENUES (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Disaggregation of Revenues The following tables show the disaggregation of the Company’s revenues by major customer location, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the years ended December 31, 2019 and 2018: Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations North America $ 1,344,040 $ 45,859 $ 116 $ 1,390,015 Europe 27,042 719,548 276 746,866 CIS 8,583 143 91,745 100,471 APAC 1,279 55,167 — 56,446 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 Year Ended December 31, 2018 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations North America $ 1,046,232 $ 52,860 $ 75 $ 1,099,167 Europe 16,679 595,741 52 612,472 CIS 8,437 336 72,930 81,703 APAC 5,631 43,848 91 49,570 Revenues $ 1,076,979 $ 692,785 $ 73,148 $ 1,842,912 The following tables show the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the year ended December 31, 2019 and 2018: Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Financial Services $ 184,469 $ 244,284 $ 72,119 $ 500,872 Travel & Consumer 198,264 229,523 11,571 439,358 Software & Hi-Tech 354,023 77,377 1,998 433,398 Business Information & Media 262,448 157,844 631 420,923 Life Sciences & Healthcare 224,925 23,444 83 248,452 Emerging Verticals 156,815 88,245 5,735 250,795 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 Year Ended December 31, 2018 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Financial Services $ 112,444 $ 252,196 $ 59,337 $ 423,977 Travel and Consumer 177,910 208,266 7,467 393,643 Software & Hi-Tech 269,067 79,121 2,627 350,815 Business Information & Media 251,081 72,898 54 324,033 Life Sciences & Healthcare 151,418 20,272 13 171,703 Emerging Verticals 115,059 60,032 3,650 178,741 Revenues $ 1,076,979 $ 692,785 $ 73,148 $ 1,842,912 The following tables show the disaggregation of the Company’s revenues by contract type, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the year ended December 31, 2019 and 2018: Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,247,979 $ 688,605 $ 54,069 $ 1,990,653 Fixed-price 127,926 128,977 37,747 294,650 Licensing 3,626 1,230 225 5,081 Other revenues 1,413 1,905 96 3,414 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 Year Ended December 31, 2018 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 983,436 $ 628,707 $ 40,754 $ 1,652,897 Fixed-price 89,831 62,078 32,342 184,251 Licensing 2,748 1,332 17 4,097 Other revenues 964 668 35 1,667 Revenues $ 1,076,979 $ 692,785 $ 73,148 $ 1,842,912 Timing of Revenue Recognition The following tables show the timing of revenue recognition: Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,379,256 $ 819,913 $ 92,076 $ 2,291,245 Transferred at a point of time 1,688 804 61 2,553 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 Year Ended December 31, 2018 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,076,084 $ 692,023 $ 73,135 $ 1,841,242 Transferred at a point of time 895 762 13 1,670 Revenues $ 1,076,979 $ 692,785 $ 73,148 $ 1,842,912 During the years ended December 31, 2019 and 2018 the Company recognized $7,806 and $5,736 , respectively, of revenues from performance obligations satisfied in previous periods. The following table includes the estimated revenues expected to be recognized in the future related to performance obligations that are partially or fully unsatisfied as of December 31, 2019 . The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts that (i) have an original expected duration of one year or less and (ii) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services provided: Less than 1 year 1 Year 2 Years 3 Years Total Contract Type Fixed-price $ 17,892 $ 992 $ 64 $ — $ 18,948 The Company applies a practical expedient and does not disclose the amount of the transaction price allocated to the remaining performance obligations nor provide an explanation of when the Company expects to recognize that amount as revenue for certain variable consideration. Contract Balances The following table provides information on the classification of contract assets and liabilities in the consolidated balance sheets: As of As of December 31, 2018 Contract assets included in Trade receivables and contract assets $ 14,320 $ 13,522 Contract liabilities included in Accrued expenses and other current liabilities $ 9,132 $ 4,558 Contract liabilities included in Other noncurrent liabilities $ 5 $ 224 Contract assets have increased from December 31, 2018 primarily due to new contracts entered into in 2019 where the Company’s right to bill is contingent upon achievement of contractual milestones. Contract liabilities comprise amounts collected from the Company’s customers for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. Contract liabilities have increased from December 31, 2018 due to an increase in advance billings largely attributable to the businesses acquired during 2019. During the year ended December 31, 2019 , the Company recognized $3,850 of revenues that were included in Accrued expenses and other current liabilities at December 31, 2018. During the year ended December 31, 2018, the Company recognized $3,810 of revenues that were included in Accrued expenses and other current liabilities at January 1, 2018. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL ISTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company conducts a large portion of its operations in international markets that subject it to foreign currency fluctuations. To manage the risk of fluctuations in foreign currency exchange rates, during the year ended December 31, 2018 , the Company implemented a hedging program whereby it enters into a series of foreign exchange forward contracts with durations of twelve months or less that are designated as cash flow hedges of forecasted Russian ruble, Polish zloty and Indian rupee transactions. The Company measures derivative instruments and hedging activities at fair value and recognizes them as either assets or liabilities in its consolidated balance sheets. Accounting for the gains and losses resulting from changes in fair value depends on the use of the derivative and whether it is designated and qualifies for hedge accounting. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. As of December 31, 2019 , all of the Company’s foreign exchange forward contracts were designated as hedges. Derivatives may give rise to credit risks from the possible non-performance by counterparties. The Company has limited its credit risk by entering into derivative transactions only with highly-rated financial institutions and by conducting an ongoing evaluation of the creditworthiness of the financial institutions with which the Company does business. There is no financial collateral (including cash collateral) required to be posted by the Company related to the foreign exchange forward contracts. The fair value of derivative instruments on the Company’s consolidated balance sheets as of December 31, 2019 and December 31, 2018 were as follows: As of December 31, 2019 As of December 31, 2018 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Designated as hedging instruments Prepaid and other current assets $ 1,910 $ 181 Accrued expenses and other current liabilities $ 243 $ 3,475 The changes in the fair value of foreign currency derivative instruments in the Company’s consolidated statements of income and comprehensive income for the years ended December 31, 2019 , 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 Foreign exchange forward contracts - Designated as hedging instruments: Net gain/(loss) in fair value recognized in Accumulated other comprehensive loss $ 4,961 $ (3,294 ) $ — Net gain/(loss) reclassified from Accumulated other comprehensive loss into Cost of revenues (exclusive of depreciation and amortization) $ 2,028 $ (4,161 ) $ — Foreign exchange forward contracts - Not designated as hedging instruments: Net gain recognized in Foreign exchange (loss)/gain $ — $ 44 $ 425 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 : As of December 31, 2019 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 1,910 $ — $ 1,910 $ — Total assets measured at fair value on a recurring basis $ 1,910 $ — $ 1,910 $ — Foreign exchange derivative liabilities $ 243 $ — $ 243 $ — Contingent consideration 10,495 — — 10,495 Total liabilities measured at fair value on a recurring basis $ 10,738 $ — $ 243 $ 10,495 The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 . As of December 31, 2018 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 181 $ — $ 181 $ — Total assets measured at fair value on a recurring basis $ 181 $ — $ 181 $ — Foreign exchange derivative liabilities $ 3,475 $ — $ 3,475 $ — Contingent consideration 7,468 — — 7,468 Total liabilities measured at fair value on a recurring basis $ 10,943 $ — $ 3,475 $ 7,468 The foreign exchange derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange data at the measurement date. See Note 10 “Derivative Financial Instruments” for additional information regarding derivative financial instruments. The fair value of the contingent consideration is based on the expected future payments to be made to the sellers of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. Although there is significant judgment involved, the Company believes its estimates and assumptions are reasonable. In determining fair value, the Company considered a variety of factors, including future performance of the acquired business using financial projections developed by the Company and market risk assumptions that were derived for revenue growth and earnings before interest and taxes. The Company estimated future payments using the earnout formula and performance targets specified in the purchase agreements and adjusted those estimates to reflect the probability of their achievement. Those estimated future payments were then discounted to present value using a rate based on the weighted-average cost of capital of guideline companies. Changes in financial projections, market risk assumptions, discount rates or probability assumptions related to achieving the various earnout criteria would result in a change in the fair value of the recorded contingent liabilities. Such changes, if any, are recorded within Interest and other income, net in the Company’s consolidated statement of income and comprehensive income. In connection with the Continuum acquisition, the Company committed to making a cash earnout payment subject to attainment of specified performance targets in the 12 months after the acquisition date. As of the acquisition date, the Company recorded a $2,400 contingent consideration liability related to this earnout payment and, subsequently, reduced this liability by $900 during the third quarter of 2018 and $396 during the second quarter of 2019 due to the change in its fair value. The Company extinguished the earnout obligation during the second quarter of 2019 by paying $1,104 in cash. In connection with the Think acquisition, the Company committed to making a cash earnout payment subject to attainment of specified performance targets in the 12 months after the acquisition date. As of the acquisition date, the Company recorded a $5,990 liability related to this earnout payment as contingent consideration and, subsequently, increased this liability by $2,172 during 2019 due to the change in its fair value. In connection with the Company’s other 2019 acquisitions, the Company committed to making cash earnout payments subject to attainment of specified performance targets ranging from 12 months to 24 months after the respective acquisition dates. See Note 2 “Acquisitions” in the consolidated financial statements for additional information regarding business acquisitions. 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, 2018 and December 31, 2019 are as follows: Amount Contractual contingent liabilities as of January 1, 2018 $ — Acquisition date fair value of contingent consideration — Continuum acquisition (Note 2) 2,400 Acquisition date fair value of contingent consideration — Think acquisition (Note 2) 5,990 Changes in fair value of contingent consideration included in Interest and other income, net (900 ) Effect of net foreign currency exchange rate changes (22 ) Contractual contingent liabilities as of December 31, 2018 $ 7,468 Payment of contingent consideration (1,104 ) Acquisition date fair value of contractual contingent consideration — Other 2019 acquisitions (Note 2) 2,100 Changes in fair value of contingent consideration included in Interest and other income, net 1,776 Effect of net foreign currency exchange rate changes 255 Contingent consideration liabilities as of December 31, 2019 $ 10,495 The Company had no activity related to contractual contingent liabilities during the year ended December 31, 2017 . 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. The Company’s financial assets and liabilities that are not carried at fair value on a recurring basis on the Company’s consolidated balance sheets are as follows: • cash equivalents; • restricted cash; • employee loans; • long-term debt (Note 8 “Long-Term Debt”) The following tables present the reported amounts and estimated fair values of the financial assets and liabilities for which disclosure of fair value is required, 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, 2019 Financial Assets: Cash equivalents: Money market funds $ 407,817 $ 407,817 $ 407,817 $ — $ — Time deposits 10,002 10,002 — 10,002 — Total cash equivalents $ 417,819 $ 417,819 $ 407,817 $ 10,002 $ — Restricted cash $ 1,136 $ 1,136 $ 1,136 $ — $ — Employee loans $ 2,434 $ 2,434 $ — $ — $ 2,434 Financial Liabilities: Borrowings under 2017 Credit Facility $ 25,017 $ 25,017 $ — $ 25,017 $ — Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2018 Financial Assets: Cash equivalents Money market funds $ 282,664 $ 282,664 $ 282,664 $ — $ — Total cash equivalents $ 282,664 $ 282,664 $ 282,664 $ — $ — Restricted cash $ 1,151 $ 1,151 $ 1,151 $ — $ — Employee loans $ 3,525 $ 3,525 $ — $ — $ 3,525 Financial Liabilities: Borrowings under 2017 Credit Facility $ 25,020 $ 25,020 $ — $ 25,020 $ — |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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, 2019 2018 2017 Cost of revenues (exclusive of depreciation and amortization) $ 37,580 $ 27,245 $ 20,868 Selling, general and administrative expenses 34,456 31,943 31,539 Total $ 72,036 $ 59,188 $ 52,407 Equity Plans 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, 2019 , 4,969,754 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 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, 2019 , 528,441 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. 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 Weighted Average Options outstanding as of January 1, 2017 6,637,239 $ 37.20 $ 179,936 Options granted 261,373 $ 73.40 Options exercised (1,789,434 ) $ 30.23 Options forfeited/cancelled (200,210 ) $ 57.09 Options expired (7,220 ) $ 4.63 Options outstanding as of December 31, 2017 4,901,748 $ 40.91 $ 326,064 Options granted 160,181 $ 112.81 Options exercised (945,166 ) $ 36.69 Options forfeited/cancelled (32,569 ) $ 63.28 Options expired (1,250 ) $ 25.72 Options outstanding as of December 31, 2018 4,082,944 $ 44.54 $ 291,846 Options granted 131,849 $ 169.13 Options modified 17,871 $ 163.55 Options exercised (899,033 ) $ 41.21 Options forfeited/cancelled (10,701 ) $ 97.83 Options outstanding as of December 31, 2019 3,322,930 $ 50.85 $ 536,015 4.8 Options vested and exercisable as of December 31, 2019 2,908,237 $ 41.53 $ 496,226 4.3 Options expected to vest as of December 31, 2019 392,241 $ 115.26 $ 38,010 8.1 The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The model incorporated the following weighted-average assumptions: For the Years Ended December 31, 2019 2018 2017 Expected volatility 33.5 % 33.8 % 30.5 % Expected term (in years) 6.25 6.25 6.25 Risk-free interest rate 2.3 % 2.7 % 2.1 % Expected dividends — % — % — % Effective January 1, 2018, the Company changed its methodology for estimating volatility used in the Black-Scholes option valuation model. Prior to January 1, 2018, the Company estimated the volatility of its common stock by using the historical volatility of peer public companies including the Company’s historical volatility. In the first quarter of 2018, the Company began exclusively using its own historical volatility as it believes this is a more accurate estimate of future volatility of the price of the Company’s common stock. The Company did not change the methodology for estimating any other Black-Scholes option valuation model assumptions. The risk-free rate is based on the U.S. Treasury yield curve for periods equal to the expected term of the options in effect at the time of grant. The Company has not declared or paid any dividends on its common stock. The Company intends to retain any earnings to fund operations and future growth of its business and, therefore, does not anticipate paying any cash dividends in the foreseeable future. The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2019 , 2018 and 2017 was $63.12 , $43.42 and $25.29 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2019 , 2018 and 2017 was $121,063 , $83,250 and $91,148 , respectively. The Company recognizes the fair value of each option as compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period. 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 a 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. The Company records share-based compensation expense only for those awards that are expected to vest and as such, the Company applies an estimated forfeiture rate at the time of grant and adjusts the forfeiture rate to reflect actual forfeitures quarterly. As of December 31, 2019 , $12,262 of total remaining unrecognized compensation cost related to unvested stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.6 years . Restricted Stock and Restricted Stock Units The Company grants restricted stock units (“RSUs”) to Company personnel and non-employee directors under the Company’s 2015 Plan (and prior to its approval, under the 2012 Plan) and 2012 Directors Plan, respectively. Prior to 2017, awards to non-employee directors were in the form of restricted stock. 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 and service conditions are met. The awards issued in connection with acquisitions of businesses are subject to the terms and conditions contained in the applicable award agreements and acquisition documents. 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, 2019 , 2018 and 2017 : 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 as of January 1, 2017 154,125 $ 40.89 485,188 $ 67.69 204,501 $ 70.53 Awards granted — $ — 424,623 $ 73.89 170,295 $ 74.21 Awards modified — $ — (2,570 ) $ 26.85 2,570 $ 73.27 Awards vested (152,285 ) $ 43.39 (140,043 ) $ 66.54 (52,004 ) $ 70.56 Awards forfeited/cancelled — $ — (79,186 ) $ 70.30 (10,533 ) $ 71.72 Unvested service-based awards outstanding as of December 31, 2017 1,840 $ 54.37 688,012 $ 71.60 314,829 $ 72.50 Awards granted — $ — 380,864 $ 115.84 85,380 $ 112.65 Awards modified — $ — (3,110 ) $ 80.27 3,110 $ 120.18 Awards vested (1,047 ) $ 47.76 (217,800 ) $ 70.10 (91,684 ) $ 72.69 Awards forfeited/cancelled — $ — (50,063 ) $ 86.97 (8,668 ) $ 81.40 Unvested service-based awards outstanding as of December 31, 2018 793 $ 63.10 797,903 $ 92.13 302,967 $ 83.99 Awards granted 9,394 $ 167.18 284,269 $ 170.29 55,923 $ 170.13 Awards modified — $ — 6,897 $ 170.74 668 $ 168.36 Awards vested (396 ) $ 63.10 (286,654 ) $ 87.79 (110,643 ) $ 80.51 Awards forfeited/cancelled — $ — (43,630 ) $ 114.45 (6,627 ) $ 94.77 Unvested service-based awards outstanding as of December 31, 2019 9,791 $ 162.96 758,785 $ 122.48 242,288 $ 105.40 The fair value of vested service-based awards (measured at the vesting date) for the years ended December 31, 2019 , 2018 and 2017 was as follows: For the Years Ended December 31, 2019 2018 2017 Equity-classified equity-settled Restricted stock $ 73 $ 142 $ 12,607 Restricted stock units 48,111 24,987 10,620 Liability-classified cash-settled Restricted stock units 18,449 10,349 3,811 Total fair value of vested service-based awards $ 66,633 $ 35,478 $ 27,038 As of December 31, 2019 , $1,413 of total remaining unrecognized stock-based compensation costs related to service-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 2.7 years . During the year ended December 31, 2019 , the Company issued 9,394 shares of service-based restricted stock in connection with an acquisition of a business. See Note 2 “Acquisitions” for additional information regarding business acquisitions. As of December 31, 2019 , $63,588 of total remaining unrecognized stock-based compensation costs related to service-based equity-classified RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.5 years . During the years ended December 31, 2019 and 2018 , in connection with business acquisitions, the Company issued 21,933 and 88,578 equity-classified RSUs. See Note 2 “Acquisitions” for additional information regarding business acquisitions. As of December 31, 2019 , $27,538 of total remaining unrecognized stock-based compensation costs related to service-based liability-classified RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.1 years . During the year ended December 31, 2019 , the Company issued 7,280 shares of service-based liability-classified cash-settled RSUs in connection with a business acquisition. See Note 2 “Acquisitions” for additional information regarding business acquisitions. The liability associated with the Company’s service-based liability-classified RSUs as of December 31, 2019 and 2018 was $21,902 and $9,920 , respectively, and is classified as Accrued compensation and benefits expenses in the consolidated balance sheets. Performance -Based Awards The table below summarizes activity related to the Company’s performance-based awards for the years ended December 31, 2019 , 2018 and 2017 : 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 as of January 1, 2017 5,573 $ 33.47 105,602 $ 38.86 4,667 $ 70.22 Awards granted — $ — — $ — — $ — Awards vested (5,573 ) $ 33.47 (105,602 ) $ 38.86 — $ — Awards forfeited/cancelled — $ — — $ — (4,667 ) $ 70.22 Unvested performance-based awards outstanding as of December 31, 2017 — $ — — $ — — $ — Awards granted — $ — — $ — 45,375 $ 121.75 Awards vested — $ — — $ — (8,769 ) $ 121.75 Awards forfeited/cancelled — $ — — $ — (7,014 ) $ 121.75 Unvested performance-based awards outstanding as of December 31, 2018 — $ — — $ — 29,592 $ 121.75 Awards granted 9,393 $ 165.87 — $ — — $ — Awards modified — $ — — $ — (29,592 ) $ 121.75 Unvested performance-based awards outstanding as of December 31, 2019 9,393 $ 165.87 — $ — — $ — During the year ended December 31, 2019 , the Company issued 9,393 shares of performance-based equity-classified restricted stock, in connection with an acquisition of a business. Vesting of these awards are subject to attainment of specified performance targets in the 12 months after the acquisition date. See Note 2 “Acquisitions” for additional information regarding business acquisitions. As of December 31, 2019 , $1,002 of total remaining unrecognized stock-based compensation cost related to performance-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 3.7 years . Performance-based equity-classified RSUs were granted during the year ended December 31, 2018 in connection with the acquisition of Continuum and have a variable vesting period, subject to satisfaction of the applicable performance conditions with each vesting portion having its own service inception date. Compensation is recognized over the vesting period and adjusted each period for the probability of achievement of the performance criteria for each vesting portion separately. During the fourth quarter of 2018, the Company accelerated the recognition of $835 of expense due to vesting of performance-based equity-classified RSUs in accordance with the terms of the award agreement. During the year ended December 31, 2019, the Company and holders of the unvested performance-based equity-classified RSUs mutually agreed to cancel these awards and the Company issued service-based stock option and equity-classified RSU awards with four-year vesting terms to those same recipients. As of December 31, 2019 , there is no remaining unrecognized stock-based compensation cost related to performance-based equity-classified RSUs. As part of an acquisition completed during the year ended December 31, 2019 , the Company recognized $348 stock-based compensation expense related to stock awards that had not yet been formally issued as of December 31, 2019. These awards were considered to be granted for accounting purposes as all key terms were communicated to the employees. On January 3, 2020 , the Company formally issued 5,793 service-based RSUs and 24,836 performance-based equity-classified RSUs to these employees. The fair value of vested performance-based awards (measured at the vesting date) for the years ended December 31, 2019 , 2018 and 2017 was as follows: For the Years Ended December 31, 2019 2018 2017 Equity-classified equity-settled Restricted stock $ — $ — $ 452 Restricted stock units — 1,046 — Liability-classified equity-settled Restricted stock — — 8,633 Total fair value of vested performance-based awards $ — $ 1,046 $ 9,085 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing basic earnings per share, any nonvested shares of restricted stock that have been issued by the Company and are contingently returnable to the Company are excluded from the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing 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 equity-settled 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, 2019 2018 2017 Numerator for basic and diluted earnings per share: Net income $ 261,057 $ 240,256 $ 72,760 Numerator for basic and diluted earnings per share $ 261,057 $ 240,256 $ 72,760 Denominator: Weighted average common shares for basic earnings per share 54,719,414 53,622,989 52,077,011 Net effect of dilutive stock options, restricted stock units and restricted stock awards 2,948,375 3,049,687 2,907,162 Weighted average common shares for diluted earnings per share 57,667,789 56,672,676 54,984,173 Net Income per share: Basic $ 4.77 $ 4.48 $ 1.40 Diluted $ 4.53 $ 4.24 $ 1.32 The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 120,021 , 138,639 and 883,350 for the years ended December 31, 2019 , 2018 and 2017 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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 with customers where the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations or covenants for certain matters, infringement of third party intellectual property rights, data privacy violations, and certain tortious conduct in the course of providing services. 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 would have a material effect on the consolidated financial statements of the Company. Litigation — From time to time, the Company is involved in litigation, claims or other contingencies arising in the ordinary course of business. The Company accrues a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. In the opinion of management, the outcome of any existing claims and legal or regulatory proceedings, if decided adversely, is not expected to have a material effect on the Company’s business, financial condition, results of operations or cash flows. Building Acquisition Commitment —During the year ended December 31, 2019, the Company entered into agreements to purchase office space in Ukraine intended to support the global delivery centers in that country. The agreement is subject to completion of construction and other ordinary closing conditions and requires the Company to pay approximately $48,900 in cash including VAT to the sellers, $12,000 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company determines its business segments and reports segment information in accordance with how the Company’s chief operating decision maker (“CODM”) organizes the segments to evaluate performance, allocate resources and make business decisions. Segment results are based on the segment’s revenues and operating profit, where segment operating profit is defined as income from operations before unallocated costs. 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 corporate expenses are not allocated to specific segments as these expenses are not controllable at the segment level. Such expenses include certain types of professional fees, non-corporate taxes, compensation to non-employee directors and certain other general and administrative expenses, including compensation of specific groups of non-production employees. In addition, the Company does not allocate stock-based compensation expenses, amortization of purchased intangible assets, other acquisition-related expenses and other unallocated costs. These unallocated amounts are combined with total segment operating profit to arrive at consolidated income from operations as reported below in the reconciliation of segment operating profit to consolidated income before provision for income taxes. Additionally, management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably among the segments. The Company manages its business primarily based on the managerial responsibility for its client base and market. As managerial responsibility for a particular customer relationship generally correlates with the customer’s geographic location, there is a high degree of similarity between customer locations and the geographic boundaries of the Company’s reportable segments. In some cases, managerial responsibility for a particular customer is assigned to a management team in another region and is usually based on the strength of the relationship between customer executives and particular members of EPAM’s senior management team. In such cases, the customer’s activity would be reported through the management team’s reportable segment. During the fourth quarter of 2019, the Company changed its management reporting of segment revenue to exclude other income. Prior year amounts presented below have been changed to conform to the new presentation. Revenues from external customers and operating profit, before unallocated expenses, by reportable segments were as follows: For the years ended December 31, 2019 2018 2017 Segment revenues: North America $ 1,380,944 $ 1,076,979 $ 796,040 Europe 820,717 692,785 591,450 Russia 92,137 73,148 62,958 Total revenues $ 2,293,798 $ 1,842,912 $ 1,450,448 Segment operating profit: North America $ 293,757 $ 221,846 $ 169,340 Europe 114,863 115,876 92,080 Russia 17,347 11,377 13,906 Total segment operating profit $ 425,967 $ 349,099 $ 275,326 Intersegment transactions were excluded from the above on the basis that they are neither included in the measure of a segment’s profit and loss results, nor considered by the CODM during the review of segment results. There were no customers individually exceeding 10% of our total segment revenues for the years ended December 31, 2019 , 2018 and 2017. Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below: For the Years Ended December 31, 2019 2018 2017 Total segment operating profit: $ 425,967 $ 349,099 $ 275,326 Unallocated costs: Stock-based compensation expense (72,036 ) (59,188 ) (52,407 ) Amortization of purchased intangibles (9,914 ) (8,101 ) (7,562 ) Other acquisition-related expenses (3,774 ) (916 ) (1,500 ) Other unallocated costs (37,393 ) (35,130 ) (40,911 ) Income from operations 302,850 245,764 172,946 Interest and other income, net 8,725 3,522 4,601 Foreign exchange (loss)/gain (12,049 ) 487 (3,242 ) Income before provision for income taxes $ 299,526 $ 249,773 $ 174,305 During the year ended December 31, 2018, the Company began to allocate certain staff recruitment and development expenses into segment operating profit as these expenses became part of the evaluation of segment management’s performance. These costs were not previously allocated to segments and were included in other unallocated costs in the reconciliation of segment operating profit to consolidated income before provision for income taxes above. The effect of this reclassification was not material to segment operating profit and had no impact on total income from operations for the year end December 31, 2018. 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. Physical locations and values of the Company’s long-lived assets are presented below: As of As of As of December 31, 2017 Belarus $ 75,984 $ 50,085 $ 49,866 Ukraine 24,652 8,433 6,995 Russia 17,980 9,902 9,617 United States 15,637 13,101 3,371 India 7,443 7,019 2,698 Hungary 5,201 3,168 3,901 Poland 5,029 2,637 2,893 China 3,036 2,651 2,608 Other 10,297 5,650 4,470 Total $ 165,259 $ 102,646 $ 86,419 The table below presents the Company’s revenues by customer location for the years ended December 31, 2019 , 2018 and 2017 : For the Years Ended December 31, 2019 2018 2017 United States $ 1,321,662 $ 1,029,327 $ 783,563 United Kingdom 290,039 200,918 188,995 Switzerland 152,710 144,398 123,281 Russia 89,941 71,181 61,222 Netherlands 88,488 70,274 51,556 Germany 82,441 80,787 60,158 Canada 68,304 69,836 57,129 Other locations 200,213 176,191 124,544 Revenues $ 2,293,798 $ 1,842,912 $ 1,450,448 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly results for the years ended December 31, 2019 and 2018 were as follows: Three Months Ended 2019 March 31 June 30 September 30 December 31 Full Year Revenues $ 521,333 $ 551,587 $ 588,103 $ 632,775 $ 2,293,798 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 344,689 355,915 377,525 410,069 1,488,198 Selling, general and administrative expenses 101,786 111,762 118,886 124,999 457,433 Depreciation and amortization expense 10,200 11,028 11,127 12,962 45,317 Income from operations 64,658 72,882 80,565 84,745 302,850 Interest and other income, net 3,076 1,190 2,509 1,950 8,725 Foreign exchange loss (3,484 ) (3,562 ) (3,105 ) (1,898 ) (12,049 ) Income before provision for income taxes 64,250 70,510 79,969 84,797 299,526 Provision for income taxes 3,496 11,733 12,967 10,273 38,469 Net income $ 60,754 $ 58,777 $ 67,002 $ 74,524 $ 261,057 Comprehensive income $ 66,797 $ 62,934 $ 54,725 $ 86,741 $ 271,197 Basic net income per share (1) $ 1.12 $ 1.07 $ 1.22 $ 1.35 $ 4.77 Diluted net income per share (1) $ 1.06 $ 1.02 $ 1.16 $ 1.29 $ 4.53 (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 2018 March 31 June 30 September 30 December 31 Full Year Revenues $ 424,148 $ 445,647 $ 468,186 $ 504,931 $ 1,842,912 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 277,634 289,175 301,081 319,031 1,186,921 Selling, general and administrative expenses 89,641 93,273 93,226 97,447 373,587 Depreciation and amortization expense 8,176 8,962 9,319 10,183 36,640 Income from operations 48,697 54,237 64,560 78,270 245,764 Interest and other income/(expense), net (551 ) 1,052 1,941 1,080 3,522 Foreign exchange gain/(loss) (247 ) 1,830 (514 ) (582 ) 487 Income before provision for/(benefit from) income taxes 47,899 57,119 65,987 78,768 249,773 Provision for/(benefit from) income taxes (16,519 ) 6,864 369 18,803 9,517 Net income $ 64,418 $ 50,255 $ 65,618 $ 59,965 $ 240,256 Comprehensive income $ 67,796 $ 32,345 $ 63,426 $ 52,798 $ 216,365 Basic net income per share (1) $ 1.21 $ 0.94 $ 1.22 $ 1.11 $ 4.48 Diluted net income per share (1) $ 1.15 $ 0.89 $ 1.15 $ 1.05 $ 4.24 (1) Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On February 3, 2020 , the Company acquired 100% of Deltix and its affiliates, a provider of software and services for quantitative research to the financial sector. The Company paid approximately $10,620 in cash at closing and could pay up to $18,975 in earn-out consideration based on achievement of certain revenue and earnings targets. In addition, the Company granted to Deltix employees 17,981 service-based RSUs and performance and service-based equity-settled awards that could pay up to $13,915 based on achievement of certain revenue and earnings targets. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2019 , 2018 AND 2017 (In thousands) Balance at Beginning of Year Additions Deductions/ Write offs Balance at End of Year Year Ended December 31, 2019 Allowance for doubtful accounts for trade receivables and contract assets $ 1,557 2,072 (419 ) $ 3,210 Valuation allowance on deferred tax assets $ 3,189 688 — $ 3,877 Year Ended December 31, 2018 Allowance for doubtful accounts for trade receivables and contract assets $ 1,186 2,722 (2,351 ) $ 1,557 Valuation allowance on deferred tax assets $ 924 2,265 — $ 3,189 Year Ended December 31, 2017 Allowance for doubtful accounts for trade receivables and contract assets $ 2,014 998 (1,826 ) $ 1,186 Valuation allowance on deferred tax assets $ — 924 — $ 924 |
BUSINESS AND SIGNIFICANT ACCOUN
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading global provider of digital platform engineering and software development services to customers located around the world, primarily in North America, Europe, Asia and Australia. The Company’s industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as other emerging industries. The Company is incorporated in Delaware with headquarters in Newtown, Pennsylvania. |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM and its subsidiaries. All intercompany balances and transactions have been eliminated. |
Reclassifications | Reclassifications — Certain amounts recorded in the prior-period consolidated balance sheets and consolidated statements of cash flows presented have been reclassified to conform to the current-period financial statement presentation. These reclassifications had no effect on previously reported results of operations. The Company made the following reclassifications to its consolidated balance sheet as of December 31, 2018: • The Company combined previously reported Accounts receivable and Unbilled revenues into Trade receivables and contract assets. • Amounts previously reported within Accrued expenses and other current liabilities, Due to employees, Deferred compensation due to employees and Taxes payable, current were reclassified to Accrued compensation and benefits expenses. • Amounts previously reported within Taxes payable, current were reclassified to Accrued expenses and other current liabilities, Accrued compensation and benefits expenses and Income taxes payable, current. |
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. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Accounts Receivable | Trade Receivables and Contract Assets |
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 a 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. |
Business Combinations | Business Combinations — The Company accounts for business combinations using the acquisition method which requires it to estimate the fair value of identifiable assets acquired and liabilities assumed, including any contingent consideration, to properly allocate the purchase price to the individual assets acquired and liabilities assumed in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations . The allocation of the purchase price utilizes significant estimates in determining the fair values of identifiable assets acquired and liabilities assumed, especially with respect to intangible assets. The significant estimates and assumptions used include the timing and amount of forecasted revenues and cash flows, anticipated growth rates, client attrition rates, the discount rate reflecting the risk inherent in future cash flows and the determination of useful lives for finite-lived assets. 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. The acquired assets typically include customer relationships, software, trade names, non-competition agreements, and assembled workforce and as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. If the initial accounting for the business combination has not been completed by the end of the reporting period in which the business combination occurs, provisional amounts are reported to present information about facts and circumstances that existed as of the acquisition date. Once the measurement period ends, which in no case extends beyond one year from the acquisition date, revisions to the accounting for the business combination are recorded in earnings. 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 the fair value of contingent consideration arrangements that are not measurement period adjustments are recognized in earnings. |
Long-Lived Assets | Long-Lived Assets |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill and other intangible assets that have indefinite useful lives are accounted for in accordance with FASB ASC 350, Intangibles — Goodwill and Other . The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31st, and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is an operating segment or one level below. The Company does not have intangible assets other than goodwill that have indefinite useful lives. |
Derivative Financial Instruments | Derivative Financial Instruments — The Company enters into derivative financial instruments to manage exposure to fluctuations in certain foreign currencies. During 2018, for accounting purposes, these foreign currency forward contracts became designated as hedges, as defined under FASB ASC Topic 815, Derivatives and Hedging . The Company measures these foreign currency derivative contracts at fair value on a recurring basis utilizing Level 2 inputs. The Company records changes in the fair value of these hedges in accumulated other comprehensive income/(loss) until the forecasted transaction occurs. When the forecasted transaction occurs, the Company reclassifies the related gain or loss on the cash flow hedge to cost of revenues (exclusive of depreciation and amortization). In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the Company reclassifies the gain or loss on the underlying hedge into income. If the Company does not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in income. The cash flow impact of derivatives identified as hedging instruments is reflected as cash flows from operating activities. The cash flow impact of derivatives not identified as hedging instruments is reflected as cash flows from investing activities. |
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 FASB 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. Changes in the fair value of liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 11 “Fair Value Measurements.” |
Revenue Recognition | Revenue Recognition — Effective January 1, 2018, the Company adopted the Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) as amended using the modified retrospective method. The standard effectively replaced previously existing revenue recognition guidance (Topic 605) and requires entities to 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 as well as requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company applied a practical expedient to aggregate the effect of all contract modifications that occurred before the adoption date. The following table summarizes the impacts of changes in accounting policies after adoption of Topic 606 on the Company’s consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2018 , which primarily resulted from deferring the timing of revenue recognition for contracts that were previously recognized on a cash basis and recognizing revenues from certain license agreements at a point-in-time rather than over time: Year Ended December 31, 2018 As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Revenues $ 1,842,912 $ 1,843,159 $ (247 ) Income from operations $ 245,764 $ 246,011 $ (247 ) Provision for income taxes $ 9,517 $ 9,572 $ (55 ) Net income $ 240,256 $ 240,448 $ (192 ) For the years ended December 31, 2019 and 2018 The Company recognizes revenues when control of goods or services is passed to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Such control may be transferred over time or at a point in time depending on satisfaction of obligations stipulated by the contract. Consideration expected to be received may consist of both fixed and variable components and is allocated to each separately identifiable performance obligation based on the performance obligation’s relative standalone selling price. Variable consideration usually takes the form of volume-based discounts, service level credits, price concessions or incentives. Determining the estimated amount of such variable consideration involves assumptions and judgment that can have an impact on the amount of revenues reported. The Company derives revenues from a variety of service arrangements, which have been evolving to provide more customized and integrated solutions to customers by combining software engineering with customer experience design, business consulting and technology innovation services. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. The Company generates the majority of its revenues under time-and-material contracts, which are billed using hourly, daily or monthly rates to determine the amounts to be charged directly to the customer. EPAM applies a practical expedient and revenues related to time-and-material contracts are recognized based on the right to invoice for services performed. Fixed-price contracts include maintenance and support arrangements which may exceed one year in duration. Maintenance and support arrangements generally relate to the provision of ongoing services and revenues for such contracts are recognized ratably over the expected service period. Fixed-price contracts also include application development arrangements, where progress towards satisfaction of the performance obligation is measured using input or output methods and input methods are used only when there is a direct correlation between hours incurred and the end product delivered. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. Revenues from licenses which have significant stand-alone functionality are recognized at a point in time when control of the license is transferred to the customer. Revenues from licenses which do not have stand-alone functionality are recognized over time. If there is an uncertainty about the receipt of payment for the services, revenue recognition is deferred until the uncertainty is sufficiently resolved. The Company applies a practical expedient and does not assess the existence of a significant financing component if the period between transfer of the service to a customer and when the customer pays for that service is one year or less. 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. For the year ended December 31, 2017 The Company recognized revenue when the following criteria were met: (1) persuasive evidence of an arrangement existed; (2) delivery had occurred; (3) the sales price was fixed or determinable; and (4) collectability was reasonably assured. Determining whether and when some of these criteria had been satisfied often involved assumptions and judgments that could have had a significant impact on the timing and amount of revenue reported. The Company derived its revenues from a variety of service offerings, which represent specific competencies of its delivery 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 the appropriate revenue recognition. Fees for these contracts may have been in the form of time-and-materials or fixed-price arrangements. If there was uncertainty about the project completion or receipt of payment for the services, revenue was deferred until the uncertainty was sufficiently resolved. At the time revenue was recognized, the Company provided for any contractual deductions and reduced revenue accordingly. The Company reported gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. The Company deferred amounts billed to its customers for revenues not yet earned. Such amounts were anticipated to be recorded as revenues when services were performed in subsequent periods. Unbilled revenue was recorded when services have been provided but billed subsequent to the period end in accordance with the contract terms. The majority of the Company’s revenues ( 90.3% of revenues in 2017) were generated under time-and-material contracts whereby revenues were recognized as services were performed with the corresponding cost of providing those services reflected as cost of revenues. The majority of such revenues were billed using hourly, daily or monthly rates as actual time was incurred on the project. Revenues from fixed-price contracts ( 8.3% of revenues in 2017) included fixed-price maintenance and support arrangements, which may have exceeded one year in duration and revenues from maintenance and support arrangements were generally recognized ratably over the expected service period. Fixed-price contracts also included application development arrangements and revenues from these arrangements were primarily determined using the proportional performance method. In cases where final acceptance of the product, system, or solution was specified by the customer, and the acceptance criteria were not objectively determinable to have been met as the services were provided, revenues were deferred until all acceptance criteria had been met. In the absence of a sufficient basis to measure progress towards completion, revenue was recognized upon receipt of final acceptance from the customer. Assumptions, risks and uncertainties inherent in the estimates used in the application of the proportional performance method of accounting could have affected the amount of revenues, receivables and deferred revenues at each reporting period. |
Cost of Revenues (Exclusive of Depreciation and Amortization) | Cost of Revenues (Exclusive of Depreciation and Amortization) |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses — Consists of expenses associated with promoting and selling the Company’s services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation, severance, bad debt, travel, legal and accounting services, insurance, facilities including operating leases, advertising and other promotional activities. In addition, we pay a membership fee of 1% of revenues generated in Belarus to the administrative organization of the Belarus High-Technologies Park. |
Stock-based Compensation | Stock-Based Compensation — The Company recognizes the cost of its equity settled stock-based incentive awards based on the fair value of the award at the date of grant, net of estimated forfeitures. The cost is expensed evenly over the 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. Quarterly, the forfeiture assumption is adjusted and such adjustment may affect the timing of recognition of the total amount of expense recognized over the vesting period. Equity-based awards that do not require future service are expensed immediately. Stock-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. |
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 realizability of deferred tax assets is primarily dependent on future earnings. 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. A 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. On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (“U.S. Tax Act”), which subjects a U.S. shareholder to taxes on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. During the year ended December 31, 2018, the Company elected to provide for the tax expense related to GILTI in the year the tax is incurred. This election did not have a material impact on the financial statements for the years ended December 31, 2019 or 2018. |
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 by 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. |
Foreign Currency Transaction | Foreign Currency Translation — Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income/(loss). For consolidated foreign subsidiaries whose functional currency is the U.S. dollar, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income 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 concentration of credit risk consist primarily of cash, cash equivalents and trade receivables. The Company maintains cash, 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. The Company has cash in banks in countries such as Belarus, Russia, Ukraine, Kazakhstan, Armenia and Uzbekistan, where the banking sector remains subject to periodic instability. Banking and other financial systems generally do not meet the banking standards of more developed markets, and bank deposits made by corporate entities are not insured. As of December 31, 2019 , $206,485 of total cash was kept in banks in these countries, of which $123,370 was held in Belarus. In this region, and particularly in Belarus, a banking crisis, bankruptcy or insolvency of banks that process or hold the Company’s funds, may result in the loss of deposits or adversely affect the Company’s ability to complete banking transactions in the region, which could adversely affect the Company’s business and financial condition. Cash in this region is used for operational needs and cash balances in those banks move with the needs of those entities. Trade receivables are generally dispersed across many customers operating in different industries; therefore, concentration of credit risk is limited. Historically, credit losses and write-offs of trade receivable balances have not been material to the consolidated financial statements. 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, Canadian dollars, Swiss francs and Russian rubles and incurs expenditures principally in Russian rubles, Hungarian forints, Polish zlotys, British pounds, Swiss francs, euros, Indian rupees and Chinese yuan renminbi. 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 trade receivables 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 are used materially in the Company’s business, appreciate or depreciate against the U.S. dollar. The Company has a hedging program whereby it entered into a series of foreign exchange forward contracts that are designated as cash flow hedges of forecasted Russian ruble, Polish zloty and Indian rupee transactions. Interest rate risk — The Company’s exposure to market risk is influenced primarily by changes in interest rates received on cash and cash equivalents and paid on the Company’s borrowings, mainly under the 2017 Credit Facility, which is subject to a variety of rates depending on the type and timing of funds borrowed (See Note 8 |
Adoption of New/ Pending Accounting Standards | Adoption of New Accounting Standards Unless otherwise discussed below, the adoption of new accounting standards did not have a material impact on the Company’s consolidated financial position, results of operations, and cash flows. Leases — In February 2016, the FASB issued ASU 2016-02, Leases (“Topic 842”). The standard supersedes previously existing lease guidance (Topic 840) and requires entities to recognize all leases, with the exception of leases with a term of twelve months or less, on the balance sheet as right-of-use assets (“RoU Assets”) and lease liabilities. The guidance also changes disclosure requirements with a focus on providing information that will enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The Company adopted Topic 842, effective January 1, 2019, using the optional transition approach, which allows the Company to apply the provisions of the standard at the effective date without adjusting the comparable periods and carry forward disclosures under previously existing guidance for those periods presented within the Company’s financial statements. The Company determines if an arrangement is a lease or contains a lease at inception. The Company performs an assessment and classifies the lease as either an operating lease or a financing lease at the lease commencement date with a right-of-use asset and a lease liability recognized in the consolidated balance sheet under both classifications. The Company does not have finance leases that are material to the Company’s consolidated financial statements. Lease liabilities are initially measured at the present value of lease payments not yet paid. The present value is determined by applying the readily determinable rate implicit in the lease or, if not available, the incremental borrowing rate of the lessee. The Company determines the incremental borrowing rate of the lessee on a lease-by-lease basis by developing an estimated centralized U.S. dollar borrowing rate for a fully collateralized obligation with a term similar to the lease term and adjusts the rate to reflect the incremental risk associated with the foreign currency in which the lease is denominated. The development of this estimate includes the use of recovery rates, U.S. risk-free rates, foreign currency/country base rate yields, and a synthetic corporate credit rating of the Company developed using regression analysis. Lease agreements of the Company may include options to extend or terminate the lease and the Company includes such options in the lease term when it is reasonably certain that the Company will exercise that option. RoU Assets are recognized based on the initial measurement of the lease liabilities plus initial direct costs less lease incentives and, according to the guidance for long-lived assets, RoU Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company elected a practical expedient to account for lease and non-lease components together as a single lease component. The Company also elected the short-term lease recognition exemption for all classes of lease assets with an original term of twelve months or less. As part of the transition, the Company elected a package of practical expedients allowing it to carry forward historical accounting for any expired or existing contracts that are or contain lease contracts, including classification of such contracts and initial direct costs associated with them. The adoption of Topic 842 on January 1, 2019 resulted in the recognition of RoU Assets for operating leases of $177,597 and operating lease liabilities of $173,863 . The adoption of Topic 842 did not have a material impact on the consolidated statement of income and comprehensive income, consolidated statement of changes in stockholders’ equity or the consolidated statement of cash flows. See Note 7 “Leases” in the condensed consolidated financial statements for additional information regarding leases. 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. Measurement of Credit Losses on Financial Instruments — Effective January 1, 2020, the Company will adopt the amended guidance of FASB 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 requires 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 does not expect Topic 326 to have a material impact on its consolidated financial statements. |
REVENUES (Policies)
REVENUES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Contract liabilities comprise amounts collected from the Company’s customers for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. |
SEGMENT INFORMATION (Policies)
SEGMENT INFORMATION (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reclassification | During the year ended December 31, 2018, the Company began to allocate certain staff recruitment and development expenses into segment operating profit as these expenses became part of the evaluation of segment management’s performance. These costs were not previously allocated to segments and were included in other unallocated costs in the reconciliation of segment operating profit to consolidated income before provision for income taxes above. The effect of this reclassification was not material to segment operating profit and had no impact on total income from operations for the year end December 31, 2018. |
BUSINESS AND SIGNIFICANT ACCO_2
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Impact of Reclassifications on the Consolidated Balance Sheet | The following table summarizes the impact of these changes on the consolidated balance sheet as of December 31, 2018: As of December 31, 2018 As Previously Reported Change As Reported Current assets Accounts receivable, net of allowance of $1,557 $ 297,685 $ (297,685 ) $ — Unbilled revenues $ 104,652 $ (104,652 ) $ — Trade receivables and contract assets, net of allowance of $1,557 $ — $ 402,337 $ 402,337 Current liabilities Accrued expenses and other current liabilities $ 127,937 $ (77,684 ) $ 50,253 Accrued compensation and benefits expenses $ — $ 177,594 $ 177,594 Due to employees $ 49,683 $ (49,683 ) $ — Deferred compensation due to employees $ 9,920 $ (9,920 ) $ — Taxes payable, current $ 67,845 $ (67,845 ) $ — Income taxes payable, current $ — $ 27,538 $ 27,538 |
Topic 606 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Impact of Changes in Accounting Policies after Adoption of ASU | The following table summarizes the impacts of changes in accounting policies after adoption of Topic 606 on the Company’s consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2018 , which primarily resulted from deferring the timing of revenue recognition for contracts that were previously recognized on a cash basis and recognizing revenues from certain license agreements at a point-in-time rather than over time: Year Ended December 31, 2018 As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Revenues $ 1,842,912 $ 1,843,159 $ (247 ) Income from operations $ 245,764 $ 246,011 $ (247 ) Provision for income taxes $ 9,517 $ 9,572 $ (55 ) Net income $ 240,256 $ 240,448 $ (192 ) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition as updated for any changes as of December 31, 2019 for each respective acquisition: Continuum Think test IO Cash and cash equivalents $ 2,251 $ 2,344 $ 663 Trade receivables and contract assets 9,139 2,637 688 Prepaid and other current assets 936 900 96 Goodwill 26,617 20,477 12,150 Intangible assets 14,450 6,882 6,219 Property and equipment and other noncurrent assets 8,902 1,214 151 Total assets acquired $ 62,295 $ 34,454 $ 19,967 Accounts payable, accrued expenses and other current liabilities $ 3,746 $ 2,025 $ 910 Long-term debt (Note 8) 3,220 — — Other noncurrent liabilities 490 — 1,734 Total liabilities assumed $ 7,456 $ 2,025 $ 2,644 Net assets acquired $ 54,839 $ 32,429 $ 17,323 |
Fair Values and Useful Lives of Intangible Assets Acquired | The following table presents the estimated fair values and useful lives of intangible assets acquired from Continuum, Think, and test IO as of the date of acquisition and updated for any changes during the year ended December 31, 2019 for each respective acquisition: Continuum Think test IO Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 6.5 $ 5,800 7 $ 6,117 7 $ 2,456 Favorable lease 11.2 5,500 — — — — Software — — — — 6 3,461 Contract royalties 8 1,900 — — — — Trade names 5 1,250 5 765 4 302 Total $ 14,450 $ 6,882 $ 6,219 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill By Reportable Segment | Goodwill by reportable segment was as follows: North America Europe Russia Total Balance as of January 1, 2018 $ 77,290 $ 42,241 $ — $ 119,531 Continuum acquisition (Note 2) 26,617 — — 26,617 Think acquisition (Note 2) — 22,482 — 22,482 Effect of currency translation (365 ) (1,433 ) — (1,798 ) Balance as of December 31, 2018 103,542 63,290 — 166,832 test IO acquisition (Note 2) 3,301 8,849 — 12,150 Other 2019 acquisitions (Note 2) 6,503 9,546 738 16,787 Think purchase accounting adjustments — (2,043 ) — (2,043 ) Effect of currency translation $ 80 $ 1,231 $ 6 1,317 Balance as of December 31, 2019 $ 113,426 $ 80,873 $ 744 $ 195,043 |
Components of Intangible Assets | Intangible assets other than goodwill as of December 31, 2019 and 2018 were as follows: As of December 31, 2019 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 9 $ 87,489 $ (38,526 ) $ 48,963 Software 6 4,472 (486 ) 3,986 Trade names 5 6,439 (4,753 ) 1,686 Contract royalties 8 1,900 (435 ) 1,465 Assembled workforce 3 158 — 158 Total $ 100,458 $ (44,200 ) $ 56,258 As of December 31, 2018 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net carrying amount Customer relationships 9.5 $ 78,042 $ (29,580 ) $ 48,462 Favorable lease 11.2 5,500 (410 ) 5,090 Trade names 5.3 6,111 (4,300 ) 1,811 Contract royalties 8 1,900 (198 ) 1,702 Total $ 91,553 $ (34,488 ) $ 57,065 |
Intangible Assets Amortization Expense Recognized | The following table presents amortization expense recognized for the periods indicated: For the Years Ended December 31, 2019 2018 2017 Customer relationships $ 8,743 $ 7,637 $ 6,643 Software 486 — — Trade names 447 266 896 Contract royalties 238 198 — Favorable lease — 410 — Non-competition agreements — — 23 Total $ 9,914 $ 8,511 $ 7,562 |
Estimated Amortization Expense | Based on the carrying value of the Company’s existing intangible assets as of December 31, 2019, the estimated amortization expense for the future years is as follows: Year ending December 31, Amount 2020 $ 11,322 2021 11,322 2022 11,126 2023 9,526 2024 7,023 Thereafter 5,939 Total $ 56,258 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consisted of the following: Weighted Average Useful Life (in years) As of As of Computer hardware 3 $ 96,286 $ 74,884 Buildings 47 51,300 34,458 Purchased computer software 3 32,115 10,406 Leasehold improvements 8 30,634 25,036 Furniture, fixture and other equipment 7 28,193 21,544 Office equipment 6 18,901 13,203 Land improvements 18 2,137 1,474 259,566 181,005 Less accumulated depreciation and amortization (94,307 ) (78,359 ) Total $ 165,259 $ 102,646 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of As of Value added taxes payable 24,016 19,985 Contingent consideration, current (Note 11) 10,057 1,501 Deferred revenue 9,132 4,558 Other current liabilities and accrued expenses 39,271 24,209 Total $ 82,476 $ 50,253 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income/(Loss) Before Provision of Income Taxes | Income/(loss) before provision for income taxes based on geographic location is disclosed in the table below: For the Years Ended December 31, 2019 2018 2017 Income/(loss) before provision for income taxes: United States $ 65,370 $ 44,527 $ (6,595 ) Foreign 234,156 205,246 180,900 Total $ 299,526 $ 249,773 $ 174,305 |
Provision for Income Taxes | The provision for income taxes consists of the following: For the Years Ended December 31, 2019 2018 2017 Current Federal $ 16,943 $ 10,814 $ 65,571 State 3,610 4,123 (204 ) Foreign 25,680 42,580 23,617 Deferred Federal (9,425 ) (37,785 ) 7,235 State (358 ) (3,548 ) (90 ) Foreign 2,019 (6,667 ) 5,416 Total $ 38,469 $ 9,517 $ 101,545 |
Effective Tax Rate Reconciliation | The reconciliation of the provision for income taxes at the federal statutory income tax rate to the Company’s effective income tax rate is as follows: For the Years Ended December 31, 2019 2018 2017 Provision for income taxes at federal statutory rate $ 62,898 $ 52,452 $ 61,007 Increase/(decrease) in taxes resulting from: Impact from U.S. Tax Act — (4,009 ) 74,632 Entity classification election deferred tax asset impact — (25,962 ) — GILTI and BEAT U.S. taxes (926 ) 1,526 — Excess tax benefits relating to stock-based compensation (28,385 ) (17,370 ) (9,307 ) Subsidiary withholding tax liability and related foreign tax credit — (4,850 ) 4,850 Foreign tax expense and tax rate differential (1,402 ) (88 ) (39,997 ) Effect of permanent differences 3,264 2,724 3,205 State taxes, net of federal benefit 2,971 3,452 (116 ) Change in valuation allowance 218 151 783 Stock-based compensation expense 571 652 6,908 Other (740 ) 839 (420 ) Provision for income taxes $ 38,469 $ 9,517 $ 101,545 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: As of As of Deferred tax assets: Property and equipment $ 5,329 $ 4,531 Intangible assets 574 1,262 Accrued expenses 41,457 32,067 Net operating loss carryforward 5,168 4,983 Deferred revenue 3,510 5,802 Stock-based compensation 29,596 27,558 Operating lease liabilities 7,438 — Foreign tax credit 3,491 — Foreign currency exchange 2,499 5,772 Other assets 1,533 782 Deferred tax assets $ 100,595 $ 82,757 Less: valuation allowance (3,877 ) (3,189 ) Total deferred tax assets $ 96,718 $ 79,568 Deferred tax liabilities: Property and equipment $ 4,981 $ 1,480 Intangible assets 11,364 5,582 Operating lease right-of-use assets 6,900 — Accrued revenue and expenses 2,176 1,540 U.S. taxation of foreign subsidiaries — 3,000 Other liabilities 812 933 Total deferred tax liabilities $ 26,233 $ 12,535 Net deferred tax assets $ 70,485 $ 67,033 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expenses | During the year ended December 31, 2019 , the components of lease expense were as follows: Income Statement Classification Year Ended December 31, 2019 Operating lease cost Selling, general and administrative expenses $ 62,740 Variable lease cost Selling, general and administrative expenses 8,730 Short-term lease cost Selling, general and administrative expenses 3,870 Total lease cost $ 75,340 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 59,952 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 107,822 Non-cash net increase due to lease modifications: Operating lease right-of-use assets $ 10,124 Operating lease liabilities $ 10,192 |
Weighted Average Remaining Lease Term and Discount Rate | Weighted average remaining lease term and discount rate as of December 31, 2019 , were as follows: As of December 31, 2019 Weighted average remaining lease term, in years: Operating leases 6.1 Weighted average discount rate: Operating leases 3.6 % |
Maturity of Operating Lease Liabilities | As of December 31, 2019 , operating lease liabilities will mature as follows: Year ending December 31, Lease Payments 2020 $ 64,667 2021 54,343 2022 36,886 2023 27,018 2024 22,603 Thereafter 58,532 Total lease payments 264,049 Less: imputed interest (25,660 ) Total $ 238,389 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Outstanding Debt And Borrowing Capacity under 2017 Credit Facility | The following table presents the outstanding debt and borrowing capacity of the Company under the 2017 Credit Facility: As of As of Outstanding debt $ 25,000 $ 25,000 Interest rate 2.8 % 3.5 % Irrevocable standby letters of credit $ 303 $ 382 Available borrowing capacity $ 274,697 $ 274,618 Current maximum borrowing capacity $ 300,000 $ 300,000 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following tables show the disaggregation of the Company’s revenues by major customer location, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the years ended December 31, 2019 and 2018: Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations North America $ 1,344,040 $ 45,859 $ 116 $ 1,390,015 Europe 27,042 719,548 276 746,866 CIS 8,583 143 91,745 100,471 APAC 1,279 55,167 — 56,446 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 Year Ended December 31, 2018 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations North America $ 1,046,232 $ 52,860 $ 75 $ 1,099,167 Europe 16,679 595,741 52 612,472 CIS 8,437 336 72,930 81,703 APAC 5,631 43,848 91 49,570 Revenues $ 1,076,979 $ 692,785 $ 73,148 $ 1,842,912 The following tables show the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the year ended December 31, 2019 and 2018: Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Financial Services $ 184,469 $ 244,284 $ 72,119 $ 500,872 Travel & Consumer 198,264 229,523 11,571 439,358 Software & Hi-Tech 354,023 77,377 1,998 433,398 Business Information & Media 262,448 157,844 631 420,923 Life Sciences & Healthcare 224,925 23,444 83 248,452 Emerging Verticals 156,815 88,245 5,735 250,795 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 Year Ended December 31, 2018 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Financial Services $ 112,444 $ 252,196 $ 59,337 $ 423,977 Travel and Consumer 177,910 208,266 7,467 393,643 Software & Hi-Tech 269,067 79,121 2,627 350,815 Business Information & Media 251,081 72,898 54 324,033 Life Sciences & Healthcare 151,418 20,272 13 171,703 Emerging Verticals 115,059 60,032 3,650 178,741 Revenues $ 1,076,979 $ 692,785 $ 73,148 $ 1,842,912 The following tables show the disaggregation of the Company’s revenues by contract type, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 15 “Segment Information”) for the year ended December 31, 2019 and 2018: Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,247,979 $ 688,605 $ 54,069 $ 1,990,653 Fixed-price 127,926 128,977 37,747 294,650 Licensing 3,626 1,230 225 5,081 Other revenues 1,413 1,905 96 3,414 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 Year Ended December 31, 2018 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 983,436 $ 628,707 $ 40,754 $ 1,652,897 Fixed-price 89,831 62,078 32,342 184,251 Licensing 2,748 1,332 17 4,097 Other revenues 964 668 35 1,667 Revenues $ 1,076,979 $ 692,785 $ 73,148 $ 1,842,912 Timing of Revenue Recognition The following tables show the timing of revenue recognition: Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,379,256 $ 819,913 $ 92,076 $ 2,291,245 Transferred at a point of time 1,688 804 61 2,553 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 Year Ended December 31, 2018 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,076,084 $ 692,023 $ 73,135 $ 1,841,242 Transferred at a point of time 895 762 13 1,670 Revenues $ 1,076,979 $ 692,785 $ 73,148 $ 1,842,912 |
Timing of Revenue Recognition | The following table includes the estimated revenues expected to be recognized in the future related to performance obligations that are partially or fully unsatisfied as of December 31, 2019 . The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts that (i) have an original expected duration of one year or less and (ii) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services provided: Less than 1 year 1 Year 2 Years 3 Years Total Contract Type Fixed-price $ 17,892 $ 992 $ 64 $ — $ 18,948 |
Classification of Contract Assets and Liabilities | The following table provides information on the classification of contract assets and liabilities in the consolidated balance sheets: As of As of December 31, 2018 Contract assets included in Trade receivables and contract assets $ 14,320 $ 13,522 Contract liabilities included in Accrued expenses and other current liabilities $ 9,132 $ 4,558 Contract liabilities included in Other noncurrent liabilities $ 5 $ 224 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The fair value of derivative instruments on the Company’s consolidated balance sheets as of December 31, 2019 and December 31, 2018 were as follows: As of December 31, 2019 As of December 31, 2018 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Designated as hedging instruments Prepaid and other current assets $ 1,910 $ 181 Accrued expenses and other current liabilities $ 243 $ 3,475 |
Changes in the Fair Value of Derivative Instruments | The changes in the fair value of foreign currency derivative instruments in the Company’s consolidated statements of income and comprehensive income for the years ended December 31, 2019 , 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 Foreign exchange forward contracts - Designated as hedging instruments: Net gain/(loss) in fair value recognized in Accumulated other comprehensive loss $ 4,961 $ (3,294 ) $ — Net gain/(loss) reclassified from Accumulated other comprehensive loss into Cost of revenues (exclusive of depreciation and amortization) $ 2,028 $ (4,161 ) $ — Foreign exchange forward contracts - Not designated as hedging instruments: Net gain recognized in Foreign exchange (loss)/gain $ — $ 44 $ 425 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 : As of December 31, 2019 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 1,910 $ — $ 1,910 $ — Total assets measured at fair value on a recurring basis $ 1,910 $ — $ 1,910 $ — Foreign exchange derivative liabilities $ 243 $ — $ 243 $ — Contingent consideration 10,495 — — 10,495 Total liabilities measured at fair value on a recurring basis $ 10,738 $ — $ 243 $ 10,495 The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 . As of December 31, 2018 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 181 $ — $ 181 $ — Total assets measured at fair value on a recurring basis $ 181 $ — $ 181 $ — Foreign exchange derivative liabilities $ 3,475 $ — $ 3,475 $ — Contingent consideration 7,468 — — 7,468 Total liabilities measured at fair value on a recurring basis $ 10,943 $ — $ 3,475 $ 7,468 |
Reconciliation of Acquisition-Related Contractual Contingent Liabilities Using Significant Unobservable Inputs | 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, 2018 and December 31, 2019 are as follows: Amount Contractual contingent liabilities as of January 1, 2018 $ — Acquisition date fair value of contingent consideration — Continuum acquisition (Note 2) 2,400 Acquisition date fair value of contingent consideration — Think acquisition (Note 2) 5,990 Changes in fair value of contingent consideration included in Interest and other income, net (900 ) Effect of net foreign currency exchange rate changes (22 ) Contractual contingent liabilities as of December 31, 2018 $ 7,468 Payment of contingent consideration (1,104 ) Acquisition date fair value of contractual contingent consideration — Other 2019 acquisitions (Note 2) 2,100 Changes in fair value of contingent consideration included in Interest and other income, net 1,776 Effect of net foreign currency exchange rate changes 255 Contingent consideration liabilities as of December 31, 2019 $ 10,495 |
Reported Amounts and Estimated Fair Values of the Financial Assets and Liabilities for Which Disclosure of Fair Value is Required | The following tables present the reported amounts and estimated fair values of the financial assets and liabilities for which disclosure of fair value is required, 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, 2019 Financial Assets: Cash equivalents: Money market funds $ 407,817 $ 407,817 $ 407,817 $ — $ — Time deposits 10,002 10,002 — 10,002 — Total cash equivalents $ 417,819 $ 417,819 $ 407,817 $ 10,002 $ — Restricted cash $ 1,136 $ 1,136 $ 1,136 $ — $ — Employee loans $ 2,434 $ 2,434 $ — $ — $ 2,434 Financial Liabilities: Borrowings under 2017 Credit Facility $ 25,017 $ 25,017 $ — $ 25,017 $ — Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2018 Financial Assets: Cash equivalents Money market funds $ 282,664 $ 282,664 $ 282,664 $ — $ — Total cash equivalents $ 282,664 $ 282,664 $ 282,664 $ — $ — Restricted cash $ 1,151 $ 1,151 $ 1,151 $ — $ — Employee loans $ 3,525 $ 3,525 $ — $ — $ 3,525 Financial Liabilities: Borrowings under 2017 Credit Facility $ 25,020 $ 25,020 $ — $ 25,020 $ — |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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, 2019 2018 2017 Cost of revenues (exclusive of depreciation and amortization) $ 37,580 $ 27,245 $ 20,868 Selling, general and administrative expenses 34,456 31,943 31,539 Total $ 72,036 $ 59,188 $ 52,407 |
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 Weighted Average Options outstanding as of January 1, 2017 6,637,239 $ 37.20 $ 179,936 Options granted 261,373 $ 73.40 Options exercised (1,789,434 ) $ 30.23 Options forfeited/cancelled (200,210 ) $ 57.09 Options expired (7,220 ) $ 4.63 Options outstanding as of December 31, 2017 4,901,748 $ 40.91 $ 326,064 Options granted 160,181 $ 112.81 Options exercised (945,166 ) $ 36.69 Options forfeited/cancelled (32,569 ) $ 63.28 Options expired (1,250 ) $ 25.72 Options outstanding as of December 31, 2018 4,082,944 $ 44.54 $ 291,846 Options granted 131,849 $ 169.13 Options modified 17,871 $ 163.55 Options exercised (899,033 ) $ 41.21 Options forfeited/cancelled (10,701 ) $ 97.83 Options outstanding as of December 31, 2019 3,322,930 $ 50.85 $ 536,015 4.8 Options vested and exercisable as of December 31, 2019 2,908,237 $ 41.53 $ 496,226 4.3 Options expected to vest as of December 31, 2019 392,241 $ 115.26 $ 38,010 8.1 |
Black-Scholes Option Valuation Model Assumptions | The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The model incorporated the following weighted-average assumptions: For the Years Ended December 31, 2019 2018 2017 Expected volatility 33.5 % 33.8 % 30.5 % Expected term (in years) 6.25 6.25 6.25 Risk-free interest rate 2.3 % 2.7 % 2.1 % Expected dividends — % — % — % |
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, 2019 , 2018 and 2017 : 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 as of January 1, 2017 154,125 $ 40.89 485,188 $ 67.69 204,501 $ 70.53 Awards granted — $ — 424,623 $ 73.89 170,295 $ 74.21 Awards modified — $ — (2,570 ) $ 26.85 2,570 $ 73.27 Awards vested (152,285 ) $ 43.39 (140,043 ) $ 66.54 (52,004 ) $ 70.56 Awards forfeited/cancelled — $ — (79,186 ) $ 70.30 (10,533 ) $ 71.72 Unvested service-based awards outstanding as of December 31, 2017 1,840 $ 54.37 688,012 $ 71.60 314,829 $ 72.50 Awards granted — $ — 380,864 $ 115.84 85,380 $ 112.65 Awards modified — $ — (3,110 ) $ 80.27 3,110 $ 120.18 Awards vested (1,047 ) $ 47.76 (217,800 ) $ 70.10 (91,684 ) $ 72.69 Awards forfeited/cancelled — $ — (50,063 ) $ 86.97 (8,668 ) $ 81.40 Unvested service-based awards outstanding as of December 31, 2018 793 $ 63.10 797,903 $ 92.13 302,967 $ 83.99 Awards granted 9,394 $ 167.18 284,269 $ 170.29 55,923 $ 170.13 Awards modified — $ — 6,897 $ 170.74 668 $ 168.36 Awards vested (396 ) $ 63.10 (286,654 ) $ 87.79 (110,643 ) $ 80.51 Awards forfeited/cancelled — $ — (43,630 ) $ 114.45 (6,627 ) $ 94.77 Unvested service-based awards outstanding as of December 31, 2019 9,791 $ 162.96 758,785 $ 122.48 242,288 $ 105.40 |
Fair Value of Service-Based Awards Vested | The fair value of vested service-based awards (measured at the vesting date) for the years ended December 31, 2019 , 2018 and 2017 was as follows: For the Years Ended December 31, 2019 2018 2017 Equity-classified equity-settled Restricted stock $ 73 $ 142 $ 12,607 Restricted stock units 48,111 24,987 10,620 Liability-classified cash-settled Restricted stock units 18,449 10,349 3,811 Total fair value of vested service-based awards $ 66,633 $ 35,478 $ 27,038 |
Performance-Based Awards Activity | The table below summarizes activity related to the Company’s performance-based awards for the years ended December 31, 2019 , 2018 and 2017 : 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 as of January 1, 2017 5,573 $ 33.47 105,602 $ 38.86 4,667 $ 70.22 Awards granted — $ — — $ — — $ — Awards vested (5,573 ) $ 33.47 (105,602 ) $ 38.86 — $ — Awards forfeited/cancelled — $ — — $ — (4,667 ) $ 70.22 Unvested performance-based awards outstanding as of December 31, 2017 — $ — — $ — — $ — Awards granted — $ — — $ — 45,375 $ 121.75 Awards vested — $ — — $ — (8,769 ) $ 121.75 Awards forfeited/cancelled — $ — — $ — (7,014 ) $ 121.75 Unvested performance-based awards outstanding as of December 31, 2018 — $ — — $ — 29,592 $ 121.75 Awards granted 9,393 $ 165.87 — $ — — $ — Awards modified — $ — — $ — (29,592 ) $ 121.75 Unvested performance-based awards outstanding as of December 31, 2019 9,393 $ 165.87 — $ — — $ — |
Fair Value of Performance-Based Awards Vested | The fair value of vested performance-based awards (measured at the vesting date) for the years ended December 31, 2019 , 2018 and 2017 was as follows: For the Years Ended December 31, 2019 2018 2017 Equity-classified equity-settled Restricted stock $ — $ — $ 452 Restricted stock units — 1,046 — Liability-classified equity-settled Restricted stock — — 8,633 Total fair value of vested performance-based awards $ — $ 1,046 $ 9,085 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Numerator for basic and diluted earnings per share: Net income $ 261,057 $ 240,256 $ 72,760 Numerator for basic and diluted earnings per share $ 261,057 $ 240,256 $ 72,760 Denominator: Weighted average common shares for basic earnings per share 54,719,414 53,622,989 52,077,011 Net effect of dilutive stock options, restricted stock units and restricted stock awards 2,948,375 3,049,687 2,907,162 Weighted average common shares for diluted earnings per share 57,667,789 56,672,676 54,984,173 Net Income per share: Basic $ 4.77 $ 4.48 $ 1.40 Diluted $ 4.53 $ 4.24 $ 1.32 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenues from External Customers and Operating Profit/(Loss) Before Unallocated Expenses | Revenues from external customers and operating profit, before unallocated expenses, by reportable segments were as follows: For the years ended December 31, 2019 2018 2017 Segment revenues: North America $ 1,380,944 $ 1,076,979 $ 796,040 Europe 820,717 692,785 591,450 Russia 92,137 73,148 62,958 Total revenues $ 2,293,798 $ 1,842,912 $ 1,450,448 Segment operating profit: North America $ 293,757 $ 221,846 $ 169,340 Europe 114,863 115,876 92,080 Russia 17,347 11,377 13,906 Total segment operating profit $ 425,967 $ 349,099 $ 275,326 |
Reconciliation of Segment Operating Profit to Consolidated Income Before Provision for Income Taxes | Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below: For the Years Ended December 31, 2019 2018 2017 Total segment operating profit: $ 425,967 $ 349,099 $ 275,326 Unallocated costs: Stock-based compensation expense (72,036 ) (59,188 ) (52,407 ) Amortization of purchased intangibles (9,914 ) (8,101 ) (7,562 ) Other acquisition-related expenses (3,774 ) (916 ) (1,500 ) Other unallocated costs (37,393 ) (35,130 ) (40,911 ) Income from operations 302,850 245,764 172,946 Interest and other income, net 8,725 3,522 4,601 Foreign exchange (loss)/gain (12,049 ) 487 (3,242 ) Income before provision for income taxes $ 299,526 $ 249,773 $ 174,305 |
Geographical Information of Long-Lived Assets Based on Physical Location | Physical locations and values of the Company’s long-lived assets are presented below: As of As of As of December 31, 2017 Belarus $ 75,984 $ 50,085 $ 49,866 Ukraine 24,652 8,433 6,995 Russia 17,980 9,902 9,617 United States 15,637 13,101 3,371 India 7,443 7,019 2,698 Hungary 5,201 3,168 3,901 Poland 5,029 2,637 2,893 China 3,036 2,651 2,608 Other 10,297 5,650 4,470 Total $ 165,259 $ 102,646 $ 86,419 |
Revenues by Customer Location | The table below presents the Company’s revenues by customer location for the years ended December 31, 2019 , 2018 and 2017 : For the Years Ended December 31, 2019 2018 2017 United States $ 1,321,662 $ 1,029,327 $ 783,563 United Kingdom 290,039 200,918 188,995 Switzerland 152,710 144,398 123,281 Russia 89,941 71,181 61,222 Netherlands 88,488 70,274 51,556 Germany 82,441 80,787 60,158 Canada 68,304 69,836 57,129 Other locations 200,213 176,191 124,544 Revenues $ 2,293,798 $ 1,842,912 $ 1,450,448 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly results for the years ended December 31, 2019 and 2018 were as follows: Three Months Ended 2019 March 31 June 30 September 30 December 31 Full Year Revenues $ 521,333 $ 551,587 $ 588,103 $ 632,775 $ 2,293,798 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 344,689 355,915 377,525 410,069 1,488,198 Selling, general and administrative expenses 101,786 111,762 118,886 124,999 457,433 Depreciation and amortization expense 10,200 11,028 11,127 12,962 45,317 Income from operations 64,658 72,882 80,565 84,745 302,850 Interest and other income, net 3,076 1,190 2,509 1,950 8,725 Foreign exchange loss (3,484 ) (3,562 ) (3,105 ) (1,898 ) (12,049 ) Income before provision for income taxes 64,250 70,510 79,969 84,797 299,526 Provision for income taxes 3,496 11,733 12,967 10,273 38,469 Net income $ 60,754 $ 58,777 $ 67,002 $ 74,524 $ 261,057 Comprehensive income $ 66,797 $ 62,934 $ 54,725 $ 86,741 $ 271,197 Basic net income per share (1) $ 1.12 $ 1.07 $ 1.22 $ 1.35 $ 4.77 Diluted net income per share (1) $ 1.06 $ 1.02 $ 1.16 $ 1.29 $ 4.53 (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 2018 March 31 June 30 September 30 December 31 Full Year Revenues $ 424,148 $ 445,647 $ 468,186 $ 504,931 $ 1,842,912 Operating expenses: Cost of revenues (exclusive of depreciation and amortization) 277,634 289,175 301,081 319,031 1,186,921 Selling, general and administrative expenses 89,641 93,273 93,226 97,447 373,587 Depreciation and amortization expense 8,176 8,962 9,319 10,183 36,640 Income from operations 48,697 54,237 64,560 78,270 245,764 Interest and other income/(expense), net (551 ) 1,052 1,941 1,080 3,522 Foreign exchange gain/(loss) (247 ) 1,830 (514 ) (582 ) 487 Income before provision for/(benefit from) income taxes 47,899 57,119 65,987 78,768 249,773 Provision for/(benefit from) income taxes (16,519 ) 6,864 369 18,803 9,517 Net income $ 64,418 $ 50,255 $ 65,618 $ 59,965 $ 240,256 Comprehensive income $ 67,796 $ 32,345 $ 63,426 $ 52,798 $ 216,365 Basic net income per share (1) $ 1.21 $ 0.94 $ 1.22 $ 1.11 $ 4.48 Diluted net income per share (1) $ 1.15 $ 0.89 $ 1.15 $ 1.05 $ 4.24 (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 ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Balance at Beginning of Year Additions Deductions/ Write offs Balance at End of Year Year Ended December 31, 2019 Allowance for doubtful accounts for trade receivables and contract assets $ 1,557 2,072 (419 ) $ 3,210 Valuation allowance on deferred tax assets $ 3,189 688 — $ 3,877 Year Ended December 31, 2018 Allowance for doubtful accounts for trade receivables and contract assets $ 1,186 2,722 (2,351 ) $ 1,557 Valuation allowance on deferred tax assets $ 924 2,265 — $ 3,189 Year Ended December 31, 2017 Allowance for doubtful accounts for trade receivables and contract assets $ 2,014 998 (1,826 ) $ 1,186 Valuation allowance on deferred tax assets $ — 924 — $ 924 |
BUSINESS AND SUMMARY OF SIGNI_2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Impact of Reclassifications on the Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Accounts receivable, net of allowance of $1,557 | $ 0 | |
Unbilled revenues | 0 | |
Trade receivables and contract assets, net of allowance of $1,557 | $ 497,716 | 402,337 |
Current liabilities | ||
Accrued expenses and other current liabilities | 82,476 | 50,253 |
Accrued compensation and benefits expenses | 230,035 | 177,594 |
Due to employees | 0 | |
Deferred compensation due to employees | 0 | |
Taxes payable, current | 0 | |
Income taxes payable, current | $ 9,064 | 27,538 |
As Previously Reported | ||
Current assets | ||
Accounts receivable, net of allowance of $1,557 | 297,685 | |
Unbilled revenues | 104,652 | |
Trade receivables and contract assets, net of allowance of $1,557 | 0 | |
Current liabilities | ||
Accrued expenses and other current liabilities | 127,937 | |
Accrued compensation and benefits expenses | 0 | |
Due to employees | 49,683 | |
Deferred compensation due to employees | 9,920 | |
Taxes payable, current | 67,845 | |
Income taxes payable, current | 0 | |
Change | ||
Current assets | ||
Accounts receivable, net of allowance of $1,557 | (297,685) | |
Unbilled revenues | (104,652) | |
Trade receivables and contract assets, net of allowance of $1,557 | 402,337 | |
Current liabilities | ||
Accrued expenses and other current liabilities | (77,684) | |
Accrued compensation and benefits expenses | 177,594 | |
Due to employees | (49,683) | |
Deferred compensation due to employees | (9,920) | |
Taxes payable, current | (67,845) | |
Income taxes payable, current | $ 27,538 |
BUSINESS AND SUMMARY OF SIGNI_3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Impact of Reclassifications on the Consolidated Balance Sheet Allowance) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade receivables and contract assets allowance | $ 2,920 | $ 1,557 |
Previously Reported [Member] | ||
Accounts receivable allowance | $ 1,557 |
BUSINESS AND SUMMARY OF SIGNI_4
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 50 years |
BUSINESS AND SUMMARY OF SIGNI_5
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Goodwill and Other Indefinite-Lived Intangible Assets) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
Indefinite-lived intangible assets other than goodwill | $ 0 |
BUSINESS AND SUMMARY OF SIGNI_6
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Effect of Adoption of Topic 606) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement | |||||||||||
Revenues | $ 632,775 | $ 588,103 | $ 551,587 | $ 521,333 | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 2,293,798 | $ 1,842,912 | $ 1,450,448 |
Income from operations | 84,745 | 80,565 | 72,882 | 64,658 | 78,270 | 64,560 | 54,237 | 48,697 | 302,850 | 245,764 | 172,946 |
Provision for income taxes | 10,273 | 12,967 | 11,733 | 3,496 | 18,803 | 369 | 6,864 | (16,519) | 38,469 | 9,517 | 101,545 |
Net income | $ 74,524 | $ 67,002 | $ 58,777 | $ 60,754 | $ 59,965 | $ 65,618 | $ 50,255 | $ 64,418 | $ 261,057 | 240,256 | $ 72,760 |
Balance Under Revenue Guidance in Effect Before Topic 606 | |||||||||||
Income Statement | |||||||||||
Revenues | 1,843,159 | ||||||||||
Income from operations | 246,011 | ||||||||||
Provision for income taxes | 9,572 | ||||||||||
Net income | 240,448 | ||||||||||
Topic 606 | Adjustments | |||||||||||
Income Statement | |||||||||||
Revenues | (247) | ||||||||||
Income from operations | (247) | ||||||||||
Provision for income taxes | (55) | ||||||||||
Net income | $ (192) |
BUSINESS AND SUMMARY OF SIGNI_7
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concentration by Contract Types) (Details) - Product Concentration Risk - Revenues | 12 Months Ended |
Dec. 31, 2017 | |
Time-and-material | |
Concentration Risk [Line Items] | |
Concentration percentage | 90.30% |
Fixed-price | |
Concentration Risk [Line Items] | |
Concentration percentage | 8.30% |
BUSINESS AND SUMMARY OF SIGNI_8
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Risks and Uncertainties) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Concentration Risk [Line Items] | ||||
Total cash | $ 937,688 | $ 771,711 | $ 582,855 | $ 364,664 |
Belarus, Russia, Ukraine, Kazakhstan, Armenia and Uzbekistan | Geographic Concentration Risk | Total Cash | ||||
Concentration Risk [Line Items] | ||||
Total cash | 206,485 | |||
Belarus | Geographic Concentration Risk | Total Cash | ||||
Concentration Risk [Line Items] | ||||
Total cash | $ 123,370 |
BUSINESS AND SUMMARY OF SIGNI_9
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Lease) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
RoU Assets for operating leases | $ 238,991 | $ 0 | |
Operating lease liabilities | $ 238,389 | ||
Topic 842 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
RoU Assets for operating leases | $ 177,597 | ||
Operating lease liabilities | $ 173,863 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) $ in Thousands | Apr. 30, 2019USD ($) | Nov. 01, 2018USD ($) | Mar. 15, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) |
Continuum | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | Mar. 15, 2018 | ||||
Cash consideration | $ 52,515 | ||||
Maximum amount of earnout payable | $ 3,135 | ||||
Estimated future operating results, period | 12 months | ||||
Continuum | Design Consultant | |||||
Business Acquisition [Line Items] | |||||
Numbers of professionals acquired | 125 | ||||
Think | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | Nov. 1, 2018 | ||||
Cash consideration | $ 26,254 | ||||
Maximum amount of earnout payable | $ 8,156 | ||||
Estimated future operating results, period | 12 months | ||||
test IO | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | Apr. 30, 2019 | ||||
Cash consideration | $ 17,323 | ||||
Equity interest acquired | 100.00% | ||||
Other 2019 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 24,786 | ||||
Maximum amount of earnout payable | $ 3,000 | ||||
Number of completed acquisitions | 4 | ||||
Other 2019 Acquisitions | Minimum | |||||
Business Acquisition [Line Items] | |||||
Estimated future operating results, period | 12 months | ||||
Other 2019 Acquisitions | Maximum | |||||
Business Acquisition [Line Items] | |||||
Estimated future operating results, period | 24 months | ||||
2017 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 6,980 |
ACQUISITIONS (Fair Values of Ne
ACQUISITIONS (Fair Values of Net Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2019 | Nov. 01, 2018 | Mar. 15, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 195,043 | $ 166,832 | $ 119,531 | |||
Continuum | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 2,251 | |||||
Trade receivables and contract assets | 9,139 | |||||
Prepaid and other current assets | 936 | |||||
Goodwill | 26,617 | |||||
Intangible assets | 14,450 | |||||
Property and equipment and other noncurrent assets | 8,902 | |||||
Total assets acquired | 62,295 | |||||
Accounts payable, accrued expenses and other current liabilities | 3,746 | |||||
Long-term debt (Note 8) | 3,220 | |||||
Other noncurrent liabilities | 490 | |||||
Total liabilities assumed | 7,456 | |||||
Net assets acquired | $ 54,839 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Purchase price adjustment | (76) | |||||
Total net assets purchase accounting adjustment | $ (76) | |||||
Think | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 2,344 | |||||
Trade receivables and contract assets | 2,637 | |||||
Prepaid and other current assets | 900 | |||||
Goodwill | 20,477 | |||||
Intangible assets | 6,882 | |||||
Property and equipment and other noncurrent assets | 1,214 | |||||
Total assets acquired | 34,454 | |||||
Accounts payable, accrued expenses and other current liabilities | 2,025 | |||||
Long-term debt (Note 8) | 0 | |||||
Other noncurrent liabilities | 0 | |||||
Total liabilities assumed | 2,025 | |||||
Net assets acquired | $ 32,429 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Purchase price adjustment | 185 | |||||
Total net assets purchase accounting adjustment | 185 | |||||
Increase in deferred tax assets | 1,497 | |||||
Goodwill purchase accounting adjustment | (2,043) | |||||
test IO | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 663 | |||||
Trade receivables and contract assets | 688 | |||||
Prepaid and other current assets | 96 | |||||
Goodwill | 12,150 | |||||
Intangible assets | 6,219 | |||||
Property and equipment and other noncurrent assets | 151 | |||||
Total assets acquired | 19,967 | |||||
Accounts payable, accrued expenses and other current liabilities | 910 | |||||
Long-term debt (Note 8) | 0 | |||||
Other noncurrent liabilities | 1,734 | |||||
Total liabilities assumed | 2,644 | |||||
Net assets acquired | $ 17,323 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Purchase price adjustment | 119 | |||||
Total net assets purchase accounting adjustment | 119 | |||||
Intangible assets purchase accounting adjustment | (145) | |||||
Goodwill purchase accounting adjustment | 145 | |||||
Other 2019 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 7,488 |
ACQUISITIONS (Fair Values and U
ACQUISITIONS (Fair Values and Useful Lives of Intangible Assets Acquired) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Nov. 01, 2018 | Mar. 15, 2018 |
Continuum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired, amount | $ 14,450 | ||
Think | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired, amount | $ 6,882 | ||
test IO | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired, amount | $ 6,219 | ||
Customer relationships | Continuum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 6 years 6 months | ||
Finite-lived intangible assets acquired, amount | $ 5,800 | ||
Customer relationships | Think | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 7 years | ||
Finite-lived intangible assets acquired, amount | $ 6,117 | ||
Customer relationships | test IO | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 7 years | ||
Finite-lived intangible assets acquired, amount | $ 2,456 | ||
Favorable lease | Continuum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 11 years 2 months 12 days | ||
Finite-lived intangible assets acquired, amount | $ 5,500 | ||
Favorable lease | Think | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired, amount | 0 | ||
Favorable lease | test IO | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired, amount | $ 0 | ||
Software | Continuum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired, amount | $ 0 | ||
Software | Think | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired, amount | 0 | ||
Software | test IO | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 6 years | ||
Finite-lived intangible assets acquired, amount | $ 3,461 | ||
Contract royalties | Continuum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 8 years | ||
Finite-lived intangible assets acquired, amount | $ 1,900 | ||
Contract royalties | Think | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired, amount | $ 0 | ||
Contract royalties | test IO | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired, amount | $ 0 | ||
Trade names | Continuum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 5 years | ||
Finite-lived intangible assets acquired, amount | $ 1,250 | ||
Trade names | Think | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 5 years | ||
Finite-lived intangible assets acquired, amount | $ 765 | ||
Trade names | test IO | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 4 years | ||
Finite-lived intangible assets acquired, amount | $ 302 |
ACQUISITIONS (Income Statement
ACQUISITIONS (Income Statement Effect) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||||||||
Revenues | $ 632,775 | $ 588,103 | $ 551,587 | $ 521,333 | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 2,293,798 | $ 1,842,912 | $ 1,450,448 |
test IO | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenues | 4,539 | ||||||||||
Other 2019 Acquisitions | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenues | $ 9,336 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET (Goodwill Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance beginning of period | $ 166,832 | $ 119,531 |
Effect of currency translation | 1,317 | (1,798) |
Balance end of period | 195,043 | 166,832 |
North America Segment | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 103,542 | 77,290 |
Effect of currency translation | 80 | (365) |
Balance end of period | 113,426 | 103,542 |
Europe Segment | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 63,290 | 42,241 |
Effect of currency translation | 1,231 | (1,433) |
Balance end of period | 80,873 | 63,290 |
Russia Segment | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 0 | 0 |
Effect of currency translation | 6 | 0 |
Balance end of period | 744 | 0 |
Continuum | ||
Goodwill [Roll Forward] | ||
Acquisition | 26,617 | |
Continuum | North America Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | 26,617 | |
Continuum | Europe Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | 0 | |
Continuum | Russia Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | 0 | |
Think | ||
Goodwill [Roll Forward] | ||
Acquisition | 22,482 | |
Purchase accounting adjustments | (2,043) | |
Think | North America Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | 0 | |
Purchase accounting adjustments | 0 | |
Think | Europe Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | 22,482 | |
Purchase accounting adjustments | (2,043) | |
Think | Russia Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | $ 0 | |
Purchase accounting adjustments | 0 | |
test IO | ||
Goodwill [Roll Forward] | ||
Acquisition | 12,150 | |
Purchase accounting adjustments | 145 | |
test IO | North America Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | 3,301 | |
test IO | Europe Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | 8,849 | |
test IO | Russia Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | 0 | |
Other 2019 Acquisitions | ||
Goodwill [Roll Forward] | ||
Acquisition | 16,787 | |
Other 2019 Acquisitions | North America Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | 6,503 | |
Other 2019 Acquisitions | Europe Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | 9,546 | |
Other 2019 Acquisitions | Russia Segment | ||
Goodwill [Roll Forward] | ||
Acquisition | $ 738 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET (Goodwill Accumulated Impaitment Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
North America Segment | |||
Goodwill [Line Items] | |||
Accumulated impairment loss | $ 0 | $ 0 | $ 0 |
Europe Segment | |||
Goodwill [Line Items] | |||
Accumulated impairment loss | 0 | 0 | 0 |
Russia Segment | |||
Goodwill [Line Items] | |||
Accumulated impairment loss | $ 2,241 | $ 2,241 | $ 2,241 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET (Intangible Assets Components and Amortization Expense Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 100,458 | $ 91,553 | |
Accumulated amortization | (44,200) | (34,488) | |
Net carrying amount | 56,258 | 57,065 | |
Amortization of purchased intangibles | $ 9,914 | $ 8,511 | $ 7,562 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 9 years | 9 years 6 months | |
Gross carrying amount | $ 87,489 | $ 78,042 | |
Accumulated amortization | (38,526) | (29,580) | |
Net carrying amount | 48,963 | 48,462 | |
Customer relationships | Depreciation and Amortization Expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of purchased intangibles | $ 8,743 | 7,637 | 6,643 |
Software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 6 years | ||
Gross carrying amount | $ 4,472 | ||
Accumulated amortization | (486) | ||
Net carrying amount | 3,986 | ||
Software | Depreciation and Amortization Expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of purchased intangibles | $ 486 | $ 0 | 0 |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 5 years | 5 years 3 months 18 days | |
Gross carrying amount | $ 6,439 | $ 6,111 | |
Accumulated amortization | (4,753) | (4,300) | |
Net carrying amount | 1,686 | 1,811 | |
Trade names | Depreciation and Amortization Expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of purchased intangibles | $ 447 | $ 266 | 896 |
Contract royalties | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 8 years | 8 years | |
Gross carrying amount | $ 1,900 | $ 1,900 | |
Accumulated amortization | (435) | (198) | |
Net carrying amount | 1,465 | 1,702 | |
Contract royalties | Depreciation and Amortization Expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of purchased intangibles | $ 238 | $ 198 | 0 |
Assembled workforce | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 3 years | ||
Gross carrying amount | $ 158 | ||
Accumulated amortization | 0 | ||
Net carrying amount | 158 | ||
Favorable lease | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 11 years 2 months 12 days | ||
Gross carrying amount | $ 5,500 | ||
Accumulated amortization | (410) | ||
Net carrying amount | 5,090 | ||
Favorable lease | Selling, General and Administrative Expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of purchased intangibles | 0 | 410 | 0 |
Non-competition agreements | Depreciation and Amortization Expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of purchased intangibles | $ 0 | $ 0 | $ 23 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS, NET (Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2020 | $ 11,322 | |
2021 | 11,322 | |
2022 | 11,126 | |
2023 | 9,526 | |
2024 | 7,023 | |
Thereafter | 5,939 | |
Total | $ 56,258 | $ 57,065 |
PROPERTY AND EQUIPMENT, NET (Co
PROPERTY AND EQUIPMENT, NET (Components of Property and Equipment and Depreciation) (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 259,566 | $ 181,005 | ||
Less accumulated depreciation and amortization | (94,307) | (78,359) | ||
Total | 165,259 | 102,646 | $ 86,419 | |
Depreciation and amortization expense | 35,379 | 28,539 | 21,000 | |
Payments to acquire property and equipment | $ 99,308 | 37,574 | 29,806 | |
Computer hardware | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted average useful life (in years) | 3 years | |||
Property and equipment, gross | $ 96,286 | 74,884 | ||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted average useful life (in years) | 47 years | |||
Property and equipment, gross | $ 51,300 | 34,458 | ||
Purchased computer software | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted average useful life (in years) | 3 years | |||
Property and equipment, gross | $ 32,115 | 10,406 | ||
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted average useful life (in years) | 8 years | |||
Property and equipment, gross | $ 30,634 | 25,036 | ||
Furniture, fixture and other equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted average useful life (in years) | 7 years | |||
Property and equipment, gross | $ 28,193 | 21,544 | ||
Office equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted average useful life (in years) | 6 years | |||
Property and equipment, gross | $ 18,901 | 13,203 | ||
Land improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted average useful life (in years) | 18 years | |||
Property and equipment, gross | $ 2,137 | 1,474 | ||
Assets leased to third parties under operating lease | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 10,654 | 0 | ||
Less accumulated depreciation and amortization | (101) | |||
Depreciation and amortization expense | 42 | |||
Belarus | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | $ 75,984 | $ 50,085 | $ 49,866 | |
Belarus | Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Payments to acquire property and equipment | $ 18,904 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Components of Accrued expenses and other current liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Value added taxes payable | $ 24,016 | $ 19,985 |
Contingent consideration, current (Note 11) | 10,057 | 1,501 |
Deferred revenue | 9,132 | 4,558 |
Other current liabilities and accrued expenses | 39,271 | 24,209 |
Total | $ 82,476 | $ 50,253 |
INCOME TAXES (Income_(Loss) bef
INCOME TAXES (Income/(Loss) before Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income/(loss) before provision for income taxes: | |||||||||||
United States | $ 65,370 | $ 44,527 | $ (6,595) | ||||||||
Foreign | 234,156 | 205,246 | 180,900 | ||||||||
Income/(loss) before provision for income taxes | $ 84,797 | $ 79,969 | $ 70,510 | $ 64,250 | $ 78,768 | $ 65,987 | $ 57,119 | $ 47,899 | $ 299,526 | $ 249,773 | $ 174,305 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||||||||||
Federal | $ 16,943 | $ 10,814 | $ 65,571 | ||||||||
State | 3,610 | 4,123 | (204) | ||||||||
Foreign | 25,680 | 42,580 | 23,617 | ||||||||
Deferred | |||||||||||
Federal | (9,425) | (37,785) | 7,235 | ||||||||
State | (358) | (3,548) | (90) | ||||||||
Foreign | 2,019 | (6,667) | 5,416 | ||||||||
Total | $ 10,273 | $ 12,967 | $ 11,733 | $ 3,496 | $ 18,803 | $ 369 | $ 6,864 | $ (16,519) | $ 38,469 | $ 9,517 | $ 101,545 |
INCOME TAXES (U.S. Tax Act Effe
INCOME TAXES (U.S. Tax Act Effect) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability [Abstract] | |||
Income tax payable related to one-time transition tax | $ 64,321 | ||
Income tax payable related to transition tax payment period | 8 years | ||
Provisional charge adjustment | $ (4,935) | $ (64,321) | |
Transition tax provisional charge | $ 59,386 | ||
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax Expense (Benefit) [Abstract] | |||
Provisional deferred income tax expense recorded | 926 | 10,311 | |
Total adjustment to deferred tax asset recorded | 11,237 | ||
Income tax expense (benefit) related to withholding tax payable | $ 4,850 | ||
Net income tax benefit resulting from U.S. foreign tax credit for withholding tax | 0 | $ 4,850 | |
Accumulated undistributed foreign earnings indefinitely reinvested | $ 861,893 | ||
United States | |||
Effect of Tax Cuts and Jobs Act, Incomplete Accounting, Provisional [Abstract] | |||
Statutory income tax rate | 35.00% | ||
U.S. Tax Cuts and Jobs Act | |||
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability [Abstract] | |||
Income tax rate on foreign cash and certain other net current assets | 15.50% | ||
Income tax rate on remaining earnings | 8.00% | ||
U.S. Tax Cuts and Jobs Act | United States | |||
Effect of Tax Cuts and Jobs Act, Incomplete Accounting, Provisional [Abstract] | |||
Statutory income tax rate | 21.00% | ||
U.S. Tax Cuts and Jobs Act | Belarus | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax Expense (Benefit) [Abstract] | |||
Accumulated earnings that are no longer indefinitely reinvested | $ 97,000 | ||
Income tax expense (benefit) related to withholding tax payable | $ 4,850 | ||
Net income tax benefit resulting from U.S. foreign tax credit for withholding tax | $ 4,850 |
INCOME TAXES (Effective Tax Rat
INCOME TAXES (Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Provision for income taxes at federal statutory rate | $ 62,898 | $ 52,452 | $ 61,007 | ||||||||
Increase/ (decrease) in taxes resulting from: | |||||||||||
Impact from U.S. Tax Act | 0 | (4,009) | 74,632 | ||||||||
Entity classification election deferred tax asset impact | 0 | (25,962) | 0 | ||||||||
GILTI and BEAT U.S. taxes | (926) | 1,526 | 0 | ||||||||
Excess tax benefits relating to stock-based compensation | (28,385) | (17,370) | (9,307) | ||||||||
Subsidiary withholding tax liability and related foreign tax credit | 0 | (4,850) | |||||||||
Subsidiary withholding tax liability and related foreign tax credit | 4,850 | ||||||||||
Foreign tax expense and tax rate differential | (1,402) | (88) | (39,997) | ||||||||
Effect of permanent differences | 3,264 | 2,724 | 3,205 | ||||||||
State taxes, net of federal benefit | 2,971 | 3,452 | (116) | ||||||||
Change in valuation allowance | 218 | 151 | 783 | ||||||||
Stock-based compensation expense | 571 | 652 | 6,908 | ||||||||
Other | (740) | 839 | (420) | ||||||||
Total | $ 10,273 | $ 12,967 | $ 11,733 | $ 3,496 | $ 18,803 | $ 369 | $ 6,864 | $ (16,519) | $ 38,469 | $ 9,517 | $ 101,545 |
Effective tax rate | 12.80% | 3.80% | 58.30% | ||||||||
Net deferred tax assets resulting from the change in tax status of foreign subsidiaries | $ 25,962 | $ 25,962 | |||||||||
ASU 2016-09 | |||||||||||
Increase/ (decrease) in taxes resulting from: | |||||||||||
Excess tax benefit | $ 28,385 | $ 17,370 | $ 9,307 |
INCOME TAXES (Income Tax Holida
INCOME TAXES (Income Tax Holiday) (Details) - Foreign - Belarus - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Holiday [Line Items] | |||
Income tax holiday description | In Belarus, member technology companies of High-Technologies Park, including the Company’s local subsidiary, have a full exemption from Belarus income tax on qualifying income through January 2049. However, beginning February 1, 2018, the earnings of the Company’s Belarus local subsidiary became subject to U. S. income taxation due to the Company’s decision to change the tax status of the subsidiary. Consequently, there was less income tax benefit from the Belarus tax exemption for the year ended December 31, 2018 compared to the previous year. There was no aggregate dollar benefit derived from this tax holiday for the year ended December 31, 2019, and the aggregate dollar benefits derived from this tax holiday approximated $1,352 and $15,503 for the years ended December 31, 2018 and 2017, respectively. There was no impact on diluted net income per share for the year ended December 31, 2019. The benefit the tax holiday had on diluted net income per share approximated $0.02 and $0.28 for the years ended December 31, 2018 and 2017, respectively. | ||
Income tax holiday termination date | 2049-01 | ||
Aggregate dollar benefits from tax holiday | $ 0 | $ 1,352 | $ 15,503 |
Tax holiday benefit on diluted net income per share | $ 0 | $ 0.02 | $ 0.28 |
INCOME TAXES (Deferred Income T
INCOME TAXES (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Tax Assets, Gross [Abstract] | ||
Property and equipment | $ 5,329 | $ 4,531 |
Intangible assets | 574 | 1,262 |
Accrued expenses | 41,457 | 32,067 |
Net operating loss carryforward | 5,168 | 4,983 |
Deferred revenue | 3,510 | 5,802 |
Stock-based compensation | 29,596 | 27,558 |
Operating lease liabilities | 7,438 | 0 |
Foreign tax credit | 3,491 | 0 |
Foreign currency exchange | 2,499 | 5,772 |
Other assets | 1,533 | 782 |
Deferred tax assets | 100,595 | 82,757 |
Less: valuation allowance | (3,877) | (3,189) |
Total deferred tax assets | 96,718 | 79,568 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Property and equipment | 4,981 | 1,480 |
Intangible assets | 11,364 | 5,582 |
Operating lease right-of-use assets | 6,900 | 0 |
Accrued revenue and expenses | 2,176 | 1,540 |
U.S. taxation of foreign subsidiaries | 0 | 3,000 |
Other liabilities | 812 | 933 |
Total deferred tax liabilities | 26,233 | 12,535 |
Net deferred tax assets | 70,485 | 67,033 |
Other Noncurrent Liabilities | ||
Deferred Tax Liabilities, Classification [Abstract] | ||
Deferred tax liabilities, noncurrent | 4,530 | 2,950 |
Business acquisitions | ||
Deferred Tax Assets, Gross [Abstract] | ||
Stock-based compensation | $ 6,788 | $ 7,561 |
Business acquisitions | Minimum | ||
Deferred Tax Assets, Gross [Abstract] | ||
Amortization period of stock-based compensation for tax | 10 years | |
Business acquisitions | Maximum | ||
Deferred Tax Assets, Gross [Abstract] | ||
Amortization period of stock-based compensation for tax | 15 years |
INCOME TAXES (Operating Loss Ca
INCOME TAXES (Operating Loss Carryforwards) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Domestic | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | $ 3,712 |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 25,487 |
Operating loss carryforward subject to valuation allowance | 21,948 |
Foreign | No expiry | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 9,311 |
Foreign | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 274 |
Foreign | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 5,805 |
Foreign | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 6,273 |
Foreign | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 1,371 |
Foreign | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 2,204 |
Foreign | Beyond 2024 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | $ 249 |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Significant new tax position resulted in increase in prior year | $ 0 | $ 0 | $ 0 |
Significant new tax position resulted in increase in current year | 0 | 0 | $ 0 |
Tax positions for which significant change in unrecognized tax benefits is reasonably possible | 0 | ||
Income Taxes Payable, Noncurrent | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefit | $ 2,904 | $ 1,432 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Existence of material residual value guarantees | false |
Existence of material restrictive covenants | There were no lease agreements that contained material restrictive covenants |
Existance of lease agreements signed with related parties | There were no material lease agreements signed with related parties |
Commitments related to operating lease agreements that have not yet commenced | $ 37,559 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 month 2 days |
Lease term of lease agreements that have not yet commenced | 1 year 2 months 12 days |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 11 years 4 months 24 days |
Lease term of lease agreements that have not yet commenced | 10 years 10 months 24 days |
LEASES (Components of Lease Exp
LEASES (Components of Lease Expenses) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease, Cost [Line Items] | |
Total lease cost | $ 75,340 |
Selling, General and Administrative Expenses | |
Lease, Cost [Line Items] | |
Operating lease cost | 62,740 |
Variable lease cost | 8,730 |
Short-term lease cost | $ 3,870 |
LEASES (Rent Expenses for Prior
LEASES (Rent Expenses for Prior Periods) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | ||
Operating lease expense | $ 46,924 | $ 37,916 |
LEASES (Supplemental Cash Flow
LEASES (Supplemental Cash Flow Information) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows used for operating leases | $ 59,952 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 107,822 |
Non-cash net increase due to lease modifications: | |
Operating lease right-of-use assets | 10,124 |
Operating lease liabilities | $ 10,192 |
LEASES (Weighted Average Remain
LEASES (Weighted Average Remaining Lease Term and Discount Rate) (Details) | Dec. 31, 2019 |
Weighted average remaining lease term, in years: | |
Operating leases | 6 years 1 month 6 days |
Weighted average discount rate: | |
Operating leases | 3.60% |
LEASES (Maturity of Operating L
LEASES (Maturity of Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 64,667 |
2021 | 54,343 |
2022 | 36,886 |
2023 | 27,018 |
2024 | 22,603 |
Thereafter | 58,532 |
Total lease payments | 264,049 |
Less: imputed interest | (25,660) |
Total | $ 238,389 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Mar. 15, 2018 | May 24, 2017 | Sep. 12, 2014 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Continuum | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Mar. 31, 2029 | |||||
Long-term debt | $ 3,448 | |||||
Contractual interest rate | 8.00% | |||||
Repayments of debt | $ 3,448 | |||||
Revolving Credit Facility | 2014 Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate spread | 1.00% | |||||
Revolving Credit Facility | 2014 Credit Facility | Overnight Bank Funding Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate spread | 0.50% | |||||
Revolving Credit Facility | 2014 Credit Facility | U.S. Dollars | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, current borrowing capacity | $ 100,000 | |||||
Line of credit, maximum borrowing capacity | 200,000 | |||||
Revolving Credit Facility | 2014 Credit Facility | Other currencies, excluding U.S. dollars | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 50,000 | |||||
Revolving Credit Facility | 2017 Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | May 24, 2022 | |||||
Revolving Credit Facility | 2017 Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate spread | 1.00% | |||||
Revolving Credit Facility | 2017 Credit Facility | Overnight Bank Funding Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate spread | 0.50% | |||||
Revolving Credit Facility | 2017 Credit Facility | U.S. Dollars | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, current borrowing capacity | $ 300,000 | |||||
Line of credit, maximum borrowing capacity | 400,000 | |||||
Outstanding debt | $ 25,000 | $ 25,000 | ||||
Interest rate | 2.80% | 3.50% | ||||
Available borrowing capacity | $ 274,697 | $ 274,618 | ||||
Revolving Credit Facility | 2017 Credit Facility | U.S. Dollars | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, current borrowing capacity | 300,000 | 300,000 | ||||
Revolving Credit Facility | 2017 Credit Facility | Other currencies, excluding U.S. dollars | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 100,000 | |||||
Standby Letters of Credit | 2017 Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Irrevocable standby letters of credit | $ 303 | $ 382 |
REVENUES (Disaggregation of Rev
REVENUES (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 632,775 | $ 588,103 | $ 551,587 | $ 521,333 | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 2,293,798 | $ 1,842,912 | $ 1,450,448 |
Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,291,245 | 1,841,242 | |||||||||
Transferred at a Point of Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,553 | 1,670 | |||||||||
Time-and-material | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,990,653 | 1,652,897 | |||||||||
Fixed-price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 294,650 | 184,251 | |||||||||
Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 5,081 | 4,097 | |||||||||
Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 3,414 | 1,667 | |||||||||
Financial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 500,872 | 423,977 | |||||||||
Travel & Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 439,358 | 393,643 | |||||||||
Software & Hi-Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 433,398 | 350,815 | |||||||||
Business Information & Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 420,923 | 324,033 | |||||||||
Life Sciences & Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 248,452 | 171,703 | |||||||||
Emerging Verticals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 250,795 | 178,741 | |||||||||
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,390,015 | 1,099,167 | |||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 746,866 | 612,472 | |||||||||
CIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 100,471 | 81,703 | |||||||||
APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 56,446 | 49,570 | |||||||||
North America Segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,380,944 | 1,076,979 | 796,040 | ||||||||
North America Segment | Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,379,256 | 1,076,084 | |||||||||
North America Segment | Transferred at a Point of Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,688 | 895 | |||||||||
North America Segment | Time-and-material | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,247,979 | 983,436 | |||||||||
North America Segment | Fixed-price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 127,926 | 89,831 | |||||||||
North America Segment | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 3,626 | 2,748 | |||||||||
North America Segment | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,413 | 964 | |||||||||
North America Segment | Financial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 184,469 | 112,444 | |||||||||
North America Segment | Travel & Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 198,264 | 177,910 | |||||||||
North America Segment | Software & Hi-Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 354,023 | 269,067 | |||||||||
North America Segment | Business Information & Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 262,448 | 251,081 | |||||||||
North America Segment | Life Sciences & Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 224,925 | 151,418 | |||||||||
North America Segment | Emerging Verticals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 156,815 | 115,059 | |||||||||
North America Segment | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,344,040 | 1,046,232 | |||||||||
North America Segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 27,042 | 16,679 | |||||||||
North America Segment | CIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 8,583 | 8,437 | |||||||||
North America Segment | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,279 | 5,631 | |||||||||
Europe Segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 820,717 | 692,785 | 591,450 | ||||||||
Europe Segment | Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 819,913 | 692,023 | |||||||||
Europe Segment | Transferred at a Point of Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 804 | 762 | |||||||||
Europe Segment | Time-and-material | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 688,605 | 628,707 | |||||||||
Europe Segment | Fixed-price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 128,977 | 62,078 | |||||||||
Europe Segment | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,230 | 1,332 | |||||||||
Europe Segment | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,905 | 668 | |||||||||
Europe Segment | Financial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 244,284 | 252,196 | |||||||||
Europe Segment | Travel & Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 229,523 | 208,266 | |||||||||
Europe Segment | Software & Hi-Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 77,377 | 79,121 | |||||||||
Europe Segment | Business Information & Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 157,844 | 72,898 | |||||||||
Europe Segment | Life Sciences & Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 23,444 | 20,272 | |||||||||
Europe Segment | Emerging Verticals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 88,245 | 60,032 | |||||||||
Europe Segment | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 45,859 | 52,860 | |||||||||
Europe Segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 719,548 | 595,741 | |||||||||
Europe Segment | CIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 143 | 336 | |||||||||
Europe Segment | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 55,167 | 43,848 | |||||||||
Russia Segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 92,137 | 73,148 | $ 62,958 | ||||||||
Russia Segment | Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 92,076 | 73,135 | |||||||||
Russia Segment | Transferred at a Point of Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 61 | 13 | |||||||||
Russia Segment | Time-and-material | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 54,069 | 40,754 | |||||||||
Russia Segment | Fixed-price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 37,747 | 32,342 | |||||||||
Russia Segment | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 225 | 17 | |||||||||
Russia Segment | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 96 | 35 | |||||||||
Russia Segment | Financial Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 72,119 | 59,337 | |||||||||
Russia Segment | Travel & Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 11,571 | 7,467 | |||||||||
Russia Segment | Software & Hi-Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,998 | 2,627 | |||||||||
Russia Segment | Business Information & Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 631 | 54 | |||||||||
Russia Segment | Life Sciences & Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 83 | 13 | |||||||||
Russia Segment | Emerging Verticals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 5,735 | 3,650 | |||||||||
Russia Segment | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 116 | 75 | |||||||||
Russia Segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 276 | 52 | |||||||||
Russia Segment | CIS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 91,745 | 72,930 | |||||||||
Russia Segment | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 0 | $ 91 |
REVENUES (Timing of Revenue Rec
REVENUES (Timing of Revenue Recognition) (Details) - Fixed-price $ in Thousands | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 18,948 |
Less than 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 17,892 |
1 Year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 992 |
2 Years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 64 |
3 Years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 0 |
REVENUES (Contract Assets and L
REVENUES (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Contract with Customer, Liability [Abstract] | ||
Revenues from performance obligations satisfied in previous periods | $ 7,806 | $ 5,736 |
Trade Receivables and Contract Assets | ||
Change in Contract with Customer, Liability [Abstract] | ||
Contract assets | 14,320 | 13,522 |
Accrued Expenses and Other Current Liabilities | ||
Change in Contract with Customer, Liability [Abstract] | ||
Revenues recognized | 3,850 | 3,810 |
Contract liabilities | 9,132 | 4,558 |
Other Noncurrent Liabilities | ||
Change in Contract with Customer, Liability [Abstract] | ||
Contract liabilities | $ 5 | $ 224 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Fair Value of Derivative Instruments) (Details) - Foreign Exchange Forward Contract - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Financial collateral required to be posted | $ 0 | |
Designated as Hedging Instrument | Cash Flow Hedging | Prepaid and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 1,910 | $ 181 |
Designated as Hedging Instrument | Cash Flow Hedging | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 243 | $ 3,475 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Changes in the Fair Value of Derivative Instruments) (Details) - Foreign Exchange Forward Contract - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Designated as Hedging Instrument | Cash Flow Hedging | Accumulated Other Comprehensive Loss | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain/(loss) in fair value recognized | $ 4,961 | $ (3,294) | $ 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Cost of Revenues (Exclusive of Depreciation and Amortization) | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain/(loss) reclassified | 2,028 | (4,161) | 0 |
Not Designated as Hedging Instrument | Foreign Exchange Gain/(Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain recognized | $ 0 | $ 44 | $ 425 |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets and Liabilities at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | $ 3,876 | $ 8,390 | $ 0 |
Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets measured at fair value on a recurring basis | 1,910 | 181 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | 10,495 | 7,468 | |
Total financial liabilities measured at fair value on a recurring basis | 10,738 | 10,943 | |
Recurring | Foreign Exchange Forward Contract | |||
Assets, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative assets | 1,910 | 181 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative liabilities | 243 | 3,475 | |
Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets measured at fair value on a recurring basis | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | 0 | 0 | |
Total financial liabilities measured at fair value on a recurring basis | 0 | 0 | |
Recurring | Level 1 | Foreign Exchange Forward Contract | |||
Assets, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative assets | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative liabilities | 0 | 0 | |
Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets measured at fair value on a recurring basis | 1,910 | 181 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | 0 | 0 | |
Total financial liabilities measured at fair value on a recurring basis | 243 | 3,475 | |
Recurring | Level 2 | Foreign Exchange Forward Contract | |||
Assets, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative assets | 1,910 | 181 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative liabilities | 243 | 3,475 | |
Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total assets measured at fair value on a recurring basis | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Contingent consideration | 10,495 | 7,468 | |
Total financial liabilities measured at fair value on a recurring basis | 10,495 | 7,468 | |
Recurring | Level 3 | Foreign Exchange Forward Contract | |||
Assets, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative assets | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Foreign exchange derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Mar. 15, 2018 | Jun. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition, Contingent Consideration [Line Items] | |||||||
Contingent consideration | $ 3,876 | $ 8,390 | $ 0 | ||||
Cash payment to extinguish the earnout obligation | (1,104) | $ 0 | $ 0 | ||||
Continuum | |||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||
Estimated future operating results, period | 12 months | ||||||
Contingent consideration | $ 2,400 | ||||||
Contingent consideration liability adjustment | $ (396) | $ (900) | |||||
Cash payment to extinguish the earnout obligation | $ (1,104) | ||||||
Think | |||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||
Estimated future operating results, period | 12 months | ||||||
Contingent consideration | $ 5,990 | ||||||
Contingent consideration liability adjustment | $ 2,172 | ||||||
Minimum | Other 2019 Acquisitions | |||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||
Estimated future operating results, period | 12 months | ||||||
Maximum | Other 2019 Acquisitions | |||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||
Estimated future operating results, period | 24 months |
FAIR VALUE MEASUREMENTS (Reconc
FAIR VALUE MEASUREMENTS (Reconciliation of Acquisition-Related Contractual Contingent Liabilities Using Significant Unobservable Inputs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Continuum | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Change in fair value of contingent consideration | $ (396) | $ (900) | |||
Think | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Change in fair value of contingent consideration | $ 2,172 | ||||
Level 3 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Contractual contingent liabilities, beginning of period | 7,468 | $ 0 | $ 0 | ||
Settlements of contractual contingent liabilities | 1,104 | ||||
Other activity related to contractual contingent liabilities | 0 | 0 | |||
Effect of net foreign currency exchange rate changes | 255 | (22) | |||
Contractual contingent liabilities, end of period | 10,495 | 7,468 | $ 0 | ||
Level 3 | Interest and Other Income, net | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Change in fair value of contingent consideration | 1,776 | (900) | |||
Level 3 | Continuum | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Acquisition date fair value | 2,400 | ||||
Level 3 | Think | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Acquisition date fair value | $ 5,990 | ||||
Level 3 | Other 2019 Acquisitions | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Acquisition date fair value | $ 2,100 |
FAIR VALUE MEASUREMENTS (Report
FAIR VALUE MEASUREMENTS (Reported Amounts and Estimated Fair Values of the Financial Assets and Liabilities for Which Disclosure of Fair Value is Required) (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Balance | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | $ 417,819 | $ 282,664 |
Restricted cash | 1,136 | 1,151 |
Employee loans | 2,434 | 3,525 |
Balance | Revolving Credit Facility | 2017 Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowings | 25,017 | 25,020 |
Balance | Money Market Funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 407,817 | 282,664 |
Balance | Time Deposits | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 10,002 | |
Estimated Fair Value | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 417,819 | 282,664 |
Restricted cash | 1,136 | 1,151 |
Employee loans | 2,434 | 3,525 |
Estimated Fair Value | Revolving Credit Facility | 2017 Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowings | 25,017 | 25,020 |
Estimated Fair Value | Money Market Funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 407,817 | 282,664 |
Estimated Fair Value | Time Deposits | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 10,002 | |
Estimated Fair Value | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 407,817 | 282,664 |
Restricted cash | 1,136 | 1,151 |
Employee loans | 0 | 0 |
Estimated Fair Value | Level 1 | Revolving Credit Facility | 2017 Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowings | 0 | 0 |
Estimated Fair Value | Level 1 | Money Market Funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 407,817 | 282,664 |
Estimated Fair Value | Level 1 | Time Deposits | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | |
Estimated Fair Value | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 10,002 | 0 |
Restricted cash | 0 | 0 |
Employee loans | 0 | 0 |
Estimated Fair Value | Level 2 | Revolving Credit Facility | 2017 Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowings | 25,017 | 25,020 |
Estimated Fair Value | Level 2 | Money Market Funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
Estimated Fair Value | Level 2 | Time Deposits | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 10,002 | |
Estimated Fair Value | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Employee loans | 2,434 | 3,525 |
Estimated Fair Value | Level 3 | Revolving Credit Facility | 2017 Credit Facility | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Borrowings | 0 | 0 |
Estimated Fair Value | Level 3 | Money Market Funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | $ 0 |
Estimated Fair Value | Level 3 | Time Deposits | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | $ 0 |
STOCK-BASED COMPENSATION (Costs
STOCK-BASED COMPENSATION (Costs Related to Stock Compensation Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 72,036 | $ 59,188 | $ 52,407 |
Cost of Revenues (Exclusive of Depreciation and Amortization) | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 37,580 | 27,245 | 20,868 |
Selling, General and Administrative Expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 34,456 | $ 31,943 | $ 31,539 |
Year 2020 | 2019 Acquisitions | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 348 |
STOCK-BASED COMPENSATION (Equit
STOCK-BASED COMPENSATION (Equity Plans) (Details) - shares | Jun. 11, 2015 | Jan. 11, 2012 | May 31, 2006 | Dec. 31, 2019 |
2015 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for issuance (in shares) | 4,969,754 | |||
Expiration period | 10 years | |||
2012 Directors Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for issuance (in shares) | 528,441 | |||
Number of shares authorized for issuance (in shares) | 600,000 | |||
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options (in shares) | |||
Options outstanding, beginning of period | 4,082,944 | 4,901,748 | 6,637,239 |
Options granted | 131,849 | 160,181 | 261,373 |
Options modified | 17,871 | ||
Options exercised | (899,033) | (945,166) | (1,789,434) |
Options forfeited/cancelled | (10,701) | (32,569) | (200,210) |
Options expired | (1,250) | (7,220) | |
Options outstanding, end of period | 3,322,930 | 4,082,944 | 4,901,748 |
Options vested and exercisable as of December 31, 2019 | 2,908,237 | ||
Options expected to vest as of December 31, 2019 | 392,241 | ||
Weighted Average Exercise Price (in dollars per share) | |||
Options outstanding, beginning of period | $ 44.54 | $ 40.91 | $ 37.20 |
Options granted | 169.13 | 112.81 | 73.40 |
Options modified | 163.55 | ||
Options exercised | 41.21 | 36.69 | 30.23 |
Options forfeited/cancelled | 97.83 | 63.28 | 57.09 |
Options expired | 25.72 | 4.63 | |
Options outstanding, end of period | 50.85 | $ 44.54 | $ 40.91 |
Options vested and exercisable as of December 31, 2019 | 41.53 | ||
Options expected to vest as of December 31, 2019 | $ 115.26 | ||
Aggregate Intrinsic Value | |||
Options outstanding, beginning of period | $ 291,846 | $ 326,064 | $ 179,936 |
Options outstanding, end of period | 536,015 | $ 291,846 | $ 326,064 |
Options vested and exercisable as of December 31, 2019 | 496,226 | ||
Options expected to vest as of December 31, 2019 | $ 38,010 | ||
Weighted Average Remaining Contractual Term (in years) | |||
Options outstanding as of December 31, 2019 | 4 years 9 months 18 days | ||
Options vested and exercisable as of December 31, 2019 | 4 years 3 months 18 days | ||
Options expected to vest as of December 31, 2019 | 8 years 1 month 6 days |
STOCK-BASED COMPENSATION (Black
STOCK-BASED COMPENSATION (Black Scholes Option Valuation Model Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Expected volatility | 33.50% | 33.80% | 30.50% |
Expected term (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Risk-free interest rate | 2.30% | 2.70% | 2.10% |
Expected dividends | 0.00% | 0.00% | 0.00% |
STOCK-BASED COMPENSATION (Sto_2
STOCK-BASED COMPENSATION (Stock Options Additional Information) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value | $ 63.12 | $ 43.42 | $ 25.29 |
Total intrinsic value of options exercised | $ 121,063 | $ 83,250 | $ 91,148 |
Vesting period (in years) | 4 years | ||
Unrecognized compensation cost net of estimated forfeitures | $ 12,262 | ||
Unrecognized compensation cost, period for recognition | 2 years 7 months 6 days |
STOCK-BASED COMPENSATION (Retri
STOCK-BASED COMPENSATION (Retricted Stock and Restricted Stock Units Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 793 | 1,840 | 154,125 |
Awards granted | 9,394 | 0 | 0 |
Awards modified | 0 | 0 | 0 |
Awards vested | (396) | (1,047) | (152,285) |
Awards forfeited/cancelled | 0 | 0 | 0 |
Unvested awards outstanding, end of period | 9,791 | 793 | 1,840 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 63.10 | $ 54.37 | $ 40.89 |
Awards granted | 167.18 | 0 | 0 |
Awards modified | 0 | 0 | 0 |
Awards vested | 63.10 | 47.76 | 43.39 |
Awards forfeited/cancelled | 0 | 0 | 0 |
Unvested awards outstanding, end of period | $ 162.96 | $ 63.10 | $ 54.37 |
Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 797,903 | 688,012 | 485,188 |
Awards granted | 284,269 | 380,864 | 424,623 |
Awards modified | 6,897 | (3,110) | (2,570) |
Awards vested | (286,654) | (217,800) | (140,043) |
Awards forfeited/cancelled | (43,630) | (50,063) | (79,186) |
Unvested awards outstanding, end of period | 758,785 | 797,903 | 688,012 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 92.13 | $ 71.60 | $ 67.69 |
Awards granted | 170.29 | 115.84 | 73.89 |
Awards modified | 170.74 | 80.27 | 26.85 |
Awards vested | 87.79 | 70.10 | 66.54 |
Awards forfeited/cancelled | 114.45 | 86.97 | 70.30 |
Unvested awards outstanding, end of period | $ 122.48 | $ 92.13 | $ 71.60 |
Service Period | Liability Classified Award | Cash-Settled Award | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 302,967 | 314,829 | 204,501 |
Awards granted | 55,923 | 85,380 | 170,295 |
Awards modified | 668 | 3,110 | 2,570 |
Awards vested | (110,643) | (91,684) | (52,004) |
Awards forfeited/cancelled | (6,627) | (8,668) | (10,533) |
Unvested awards outstanding, end of period | 242,288 | 302,967 | 314,829 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 83.99 | $ 72.50 | $ 70.53 |
Awards granted | 170.13 | 112.65 | 74.21 |
Awards modified | 168.36 | 120.18 | 73.27 |
Awards vested | 80.51 | 72.69 | 70.56 |
Awards forfeited/cancelled | 94.77 | 81.40 | 71.72 |
Unvested awards outstanding, end of period | $ 105.40 | $ 83.99 | $ 72.50 |
Performance Targets | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 0 | 0 | 5,573 |
Awards granted | 9,393 | 0 | 0 |
Awards modified | 0 | ||
Awards vested | 0 | (5,573) | |
Awards forfeited/cancelled | 0 | 0 | |
Unvested awards outstanding, end of period | 9,393 | 0 | 0 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 0 | $ 0 | $ 33.47 |
Awards granted | 165.87 | 0 | 0 |
Awards modified | 0 | ||
Awards vested | 0 | 33.47 | |
Awards forfeited/cancelled | 0 | 0 | |
Unvested awards outstanding, end of period | $ 165.87 | $ 0 | $ 0 |
Performance Targets | Equity Classified Award | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 29,592 | 0 | 4,667 |
Awards granted | 0 | 45,375 | 0 |
Awards modified | (29,592) | ||
Awards vested | (8,769) | 0 | |
Awards forfeited/cancelled | (7,014) | (4,667) | |
Unvested awards outstanding, end of period | 0 | 29,592 | 0 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 121.75 | $ 0 | $ 70.22 |
Awards granted | 0 | 121.75 | 0 |
Awards modified | 121.75 | ||
Awards vested | 121.75 | 0 | |
Awards forfeited/cancelled | 121.75 | 70.22 | |
Unvested awards outstanding, end of period | $ 0 | $ 121.75 | $ 0 |
Performance Targets | Liability Classified Award | Equity-Settled Award | Restricted Stock | |||
Number of Shares | |||
Unvested awards outstanding, beginning of period | 0 | 0 | 105,602 |
Awards granted | 0 | 0 | 0 |
Awards modified | 0 | ||
Awards vested | 0 | (105,602) | |
Awards forfeited/cancelled | 0 | 0 | |
Unvested awards outstanding, end of period | 0 | 0 | 0 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | |||
Unvested awards outstanding, beginning of period | $ 0 | $ 0 | $ 38.86 |
Awards granted | 0 | 0 | 0 |
Awards modified | 0 | ||
Awards vested | 0 | 38.86 | |
Awards forfeited/cancelled | 0 | 0 | |
Unvested awards outstanding, end of period | $ 0 | $ 0 | $ 0 |
2019 Acquisitions | Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||
Number of Shares | |||
Awards granted | 9,394 | ||
2019 Acquisitions | Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Awards granted | 21,933 | ||
2019 Acquisitions | Service Period | Liability Classified Award | Cash-Settled Award | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Awards granted | 7,280 | ||
2019 Acquisitions | Performance Targets | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||
Number of Shares | |||
Awards granted | 9,393 | ||
2018 Acquisitions | Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Awards granted | 88,578 | ||
Year 2020 | 2019 Acquisitions | Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Awards granted | 5,793 | ||
Year 2020 | 2019 Acquisitions | Performance Targets | Equity Classified Award | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Awards granted | 24,836 |
STOCK-BASED COMPENSATION (Fair
STOCK-BASED COMPENSATION (Fair Value of Restricted Stock and Restricted Stock Units Vested) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Service Period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 66,633 | $ 35,478 | $ 27,038 |
Performance Targets | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 0 | 1,046 | 9,085 |
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 73 | 142 | 12,607 |
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 48,111 | 24,987 | 10,620 |
Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 0 | 0 | 452 |
Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 0 | 1,046 | 0 |
Liability Classified Award | Service Period | Cash-Settled Award | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 18,449 | 10,349 | 3,811 |
Liability Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 0 | $ 0 | $ 8,633 |
STOCK-BASED COMPENSATION (Ret_2
STOCK-BASED COMPENSATION (Retricted Stock and Restricted Stock Units Additional Information) (Details) - USD ($) $ in Thousands | Mar. 15, 2018 | Dec. 31, 2018 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liability associated with stock-based awards current | $ 0 | ||
Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1,002 | ||
Unrecognized compensation cost, period for recognition | 3 years 8 months 12 days | ||
Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 0 | ||
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1,413 | ||
Unrecognized compensation cost, period for recognition | 2 years 8 months 12 days | ||
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 63,588 | ||
Unrecognized compensation cost, period for recognition | 2 years 6 months | ||
Liability Classified Award | Service Period | Cash-Settled Award | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 27,538 | ||
Unrecognized compensation cost, period for recognition | 2 years 1 month 6 days | ||
Liability Classified Award | Service Period | Cash-Settled Award | Restricted Stock Units (RSUs) | Deferred compensation due to employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liability associated with stock-based awards current | 9,920 | $ 21,902 | |
2019 Acquisitions | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated future operating results, period | 12 months | ||
Continuum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated future operating results, period | 12 months | ||
Continuum | Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award accelerated compensation cost | $ 835 |
EARNINGS PER SHARE (Earning per
EARNINGS PER SHARE (Earning per share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||
Net income | $ 74,524 | $ 67,002 | $ 58,777 | $ 60,754 | $ 59,965 | $ 65,618 | $ 50,255 | $ 64,418 | $ 261,057 | $ 240,256 | $ 72,760 | ||||||||||
Numerator for basic and diluted earnings per share | $ 261,057 | $ 240,256 | $ 72,760 | ||||||||||||||||||
Denominator: | |||||||||||||||||||||
Basic weighted average common stock outstanding (in shares) | 54,719,414 | 53,622,989 | 52,077,011 | ||||||||||||||||||
Stock options, equity-settled RSUs and performance-based awards (in shares) | 2,948,375 | 3,049,687 | 2,907,162 | ||||||||||||||||||
Diluted weighted average common stock outstanding (in shares) | 57,667,789 | 56,672,676 | 54,984,173 | ||||||||||||||||||
Net Income per share: | |||||||||||||||||||||
Basic (in dollars per share) | $ 1.35 | [1] | $ 1.22 | [1] | $ 1.07 | [1] | $ 1.12 | [1] | $ 1.11 | [2] | $ 1.22 | [2] | $ 0.94 | [2] | $ 1.21 | [2] | $ 4.77 | [1] | $ 4.48 | [2] | $ 1.40 |
Diluted (in dollars per share) | $ 1.29 | [1] | $ 1.16 | [1] | $ 1.02 | [1] | $ 1.06 | [1] | $ 1.05 | [2] | $ 1.15 | [2] | $ 0.89 | [2] | $ 1.15 | [2] | $ 4.53 | [1] | $ 4.24 | [2] | $ 1.32 |
Anti-dilutive stock excluded from the calculation (in shares) | 120,021 | 138,639 | 883,350 | ||||||||||||||||||
[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. | ||||||||||||||||||||
[2] | (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 CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Building Acquisition Commitment) (Details) - Office Space Purchase Commitment - Ukraine $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Other Commitments [Line Items] | |
Total commitment amount | $ 48,900 |
Other Noncurrent Assets | |
Other Commitments [Line Items] | |
Amount paid | $ 12,000 |
SEGMENT INFORMATION (Revenues f
SEGMENT INFORMATION (Revenues from External Customers and Operating Profit/(Loss) Before Unallocated Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Segment revenues | $ 632,775 | $ 588,103 | $ 551,587 | $ 521,333 | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 2,293,798 | $ 1,842,912 | $ 1,450,448 |
Operating profit | $ 84,745 | $ 80,565 | $ 72,882 | $ 64,658 | $ 78,270 | $ 64,560 | $ 54,237 | $ 48,697 | 302,850 | 245,764 | 172,946 |
North America Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment revenues | 1,380,944 | 1,076,979 | 796,040 | ||||||||
Operating profit | 293,757 | 221,846 | 169,340 | ||||||||
Europe Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment revenues | 820,717 | 692,785 | 591,450 | ||||||||
Operating profit | 114,863 | 115,876 | 92,080 | ||||||||
Russia Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment revenues | 92,137 | 73,148 | 62,958 | ||||||||
Operating profit | 17,347 | 11,377 | 13,906 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | $ 425,967 | $ 349,099 | $ 275,326 |
SEGMENT INFORMATION (Major Cust
SEGMENT INFORMATION (Major Customers) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Segments | Sales Revenue, Segment | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 0 | 0 | 0 |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation of Segment Operating Profit to Consolidated Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total segment operating profit: | $ 84,745 | $ 80,565 | $ 72,882 | $ 64,658 | $ 78,270 | $ 64,560 | $ 54,237 | $ 48,697 | $ 302,850 | $ 245,764 | $ 172,946 |
Stock-based compensation expense | 72,036 | 59,188 | 52,407 | ||||||||
Amortization of purchased intangibles | 9,914 | 8,511 | 7,562 | ||||||||
Interest and other income, net | 1,950 | 2,509 | 1,190 | 3,076 | 1,080 | 1,941 | 1,052 | (551) | 8,725 | 3,522 | 4,601 |
Foreign exchange (loss)/gain | (1,898) | (3,105) | (3,562) | (3,484) | (582) | (514) | 1,830 | (247) | (12,049) | 487 | (3,242) |
Income before provision for income taxes | $ 84,797 | $ 79,969 | $ 70,510 | $ 64,250 | $ 78,768 | $ 65,987 | $ 57,119 | $ 47,899 | 299,526 | 249,773 | 174,305 |
Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total segment operating profit: | 425,967 | 349,099 | 275,326 | ||||||||
Unallocated Amounts | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Stock-based compensation expense | (72,036) | (59,188) | (52,407) | ||||||||
Amortization of purchased intangibles | (9,914) | (8,101) | (7,562) | ||||||||
Other acquisition-related expenses | (3,774) | (916) | (1,500) | ||||||||
Other unallocated costs | $ (37,393) | $ (35,130) | $ (40,911) |
SEGMENT INFORMATION (Reclassifi
SEGMENT INFORMATION (Reclassification) (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income from operations | |
Effect of Reclassification Adjustments [Line Items] | |
Effect of reclassification | $ 0 |
SEGMENT INFORMATION (Geographic
SEGMENT INFORMATION (Geographical Information of Long-Lived Assets Based on Physical Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 165,259 | $ 102,646 | $ 86,419 |
Belarus | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 75,984 | 50,085 | 49,866 |
Ukraine | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 24,652 | 8,433 | 6,995 |
Russia | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 17,980 | 9,902 | 9,617 |
United States | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 15,637 | 13,101 | 3,371 |
India | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 7,443 | 7,019 | 2,698 |
Hungary | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 5,201 | 3,168 | 3,901 |
Poland | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 5,029 | 2,637 | 2,893 |
China | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 3,036 | 2,651 | 2,608 |
Other | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 10,297 | $ 5,650 | $ 4,470 |
SEGMENT INFORMATION (Revenues b
SEGMENT INFORMATION (Revenues by Customer Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 632,775 | $ 588,103 | $ 551,587 | $ 521,333 | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 2,293,798 | $ 1,842,912 | $ 1,450,448 |
United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 1,321,662 | 1,029,327 | 783,563 | ||||||||
United Kingdom | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 290,039 | 200,918 | 188,995 | ||||||||
Switzerland | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 152,710 | 144,398 | 123,281 | ||||||||
Russia | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 89,941 | 71,181 | 61,222 | ||||||||
Netherlands | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 88,488 | 70,274 | 51,556 | ||||||||
Germany | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 82,441 | 80,787 | 60,158 | ||||||||
Canada | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 68,304 | 69,836 | 57,129 | ||||||||
Other locations | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 200,213 | $ 176,191 | $ 124,544 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Quaterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Revenues | $ 632,775 | $ 588,103 | $ 551,587 | $ 521,333 | $ 504,931 | $ 468,186 | $ 445,647 | $ 424,148 | $ 2,293,798 | $ 1,842,912 | $ 1,450,448 | ||||||||||
Cost of revenues (exclusive of depreciation and amortization) | 410,069 | 377,525 | 355,915 | 344,689 | 319,031 | 301,081 | 289,175 | 277,634 | 1,488,198 | 1,186,921 | 921,352 | ||||||||||
Selling, general and administrative expenses | 124,999 | 118,886 | 111,762 | 101,786 | 97,447 | 93,226 | 93,273 | 89,641 | 457,433 | 373,587 | 327,588 | ||||||||||
Depreciation and amortization expense | 12,962 | 11,127 | 11,028 | 10,200 | 10,183 | 9,319 | 8,962 | 8,176 | 45,317 | 36,640 | 28,562 | ||||||||||
Total segment operating profit: | 84,745 | 80,565 | 72,882 | 64,658 | 78,270 | 64,560 | 54,237 | 48,697 | 302,850 | 245,764 | 172,946 | ||||||||||
Interest and other income, net | 1,950 | 2,509 | 1,190 | 3,076 | 1,080 | 1,941 | 1,052 | (551) | 8,725 | 3,522 | 4,601 | ||||||||||
Foreign exchange (loss)/gain | (1,898) | (3,105) | (3,562) | (3,484) | (582) | (514) | 1,830 | (247) | (12,049) | 487 | (3,242) | ||||||||||
Income before provision for income taxes | 84,797 | 79,969 | 70,510 | 64,250 | 78,768 | 65,987 | 57,119 | 47,899 | 299,526 | 249,773 | 174,305 | ||||||||||
Provision for/(benefit from) income taxes | 10,273 | 12,967 | 11,733 | 3,496 | 18,803 | 369 | 6,864 | (16,519) | 38,469 | 9,517 | 101,545 | ||||||||||
Net income | 74,524 | 67,002 | 58,777 | 60,754 | 59,965 | 65,618 | 50,255 | 64,418 | 261,057 | 240,256 | 72,760 | ||||||||||
Comprehensive income | $ 86,741 | $ 54,725 | $ 62,934 | $ 66,797 | $ 52,798 | $ 63,426 | $ 32,345 | $ 67,796 | $ 271,197 | $ 216,365 | $ 92,825 | ||||||||||
Basic net income per share | $ 1.35 | [1] | $ 1.22 | [1] | $ 1.07 | [1] | $ 1.12 | [1] | $ 1.11 | [2] | $ 1.22 | [2] | $ 0.94 | [2] | $ 1.21 | [2] | $ 4.77 | [1] | $ 4.48 | [2] | $ 1.40 |
Diluted net income per share | $ 1.29 | [1] | $ 1.16 | [1] | $ 1.02 | [1] | $ 1.06 | [1] | $ 1.05 | [2] | $ 1.15 | [2] | $ 0.89 | [2] | $ 1.15 | [2] | $ 4.53 | [1] | $ 4.24 | [2] | $ 1.32 |
[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. | ||||||||||||||||||||
[2] | (1) Earnings per share amounts for each quarter may not necessarily total to the yearly earnings per share due to the weighting of shares outstanding on a quarterly and year to date basis. |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - Deltix - Subsequent Event $ in Thousands | Feb. 03, 2020USD ($)shares |
Subsequent Event [Line Items] | |
Acquisition date | Feb. 3, 2020 |
Equity interest acquired | 100.00% |
Cash consideration | $ 10,620 |
Maximum amount of earnout payable | $ 18,975 |
Equity Classified Award | Performance and Service-based awards | |
Subsequent Event [Line Items] | |
Awards granted | shares | 17,981 |
Estimated value of share-based awards to be paid | $ 13,915 |
VALUATION AND QUALIFYING ACCO_3
VALUATION AND QUALIFYING ACCOUNTS (Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts for Trade Receivables and Contract Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 1,557 | $ 1,186 | $ 2,014 |
Additions | 2,072 | 2,722 | 998 |
Deductions/ Write offs | (419) | (2,351) | (1,826) |
Balance at End of Year | 3,210 | 1,557 | 1,186 |
Valuation Allowance on Deferred Tax Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 3,189 | 924 | 0 |
Additions | 688 | 2,265 | 924 |
Deductions/ Write offs | 0 | 0 | 0 |
Balance at End of Year | $ 3,877 | $ 3,189 | $ 924 |