Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 07, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EBIX INC | |
Entity Central Index Key | 814,549 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 31,270,168 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Operating revenue | $ 128,643 | $ 92,800 | $ 361,499 | $ 259,290 |
Operating expenses: | ||||
Cost of Goods and Services Sold | 42,963 | 34,937 | 126,113 | 91,056 |
Product development | 11,010 | 8,536 | 28,115 | 25,303 |
Sales and marketing | 4,721 | 3,833 | 13,542 | 12,312 |
General and administrative | 28,188 | 14,874 | 74,416 | 42,156 |
Amortization and depreciation | 2,523 | 2,709 | 7,864 | 8,323 |
Total operating expenses | 89,405 | 64,889 | 250,050 | 179,150 |
Operating income | 39,238 | 27,911 | 111,449 | 80,140 |
Interest income | 103 | 375 | 309 | 1,614 |
Interest expense | (7,467) | (3,552) | (18,064) | (9,038) |
Non-operating income, gain on joint venture investment (see Note 8) | 7 | 0 | 60 | 0 |
Foreign currency exchange (loss) gain | (921) | (400) | (2,919) | 2,705 |
Income before income taxes | 30,960 | 24,334 | 90,835 | 75,421 |
Income tax benefit (expense) | (1,679) | 204 | (6,027) | (363) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 29,281 | 24,538 | 84,808 | 75,058 |
Net Income (Loss) Attributable to Noncontrolling Interest | 39 | 354 | 178 | 1,013 |
Net Income (Loss) Attributable to Parent | $ 29,242 | $ 24,184 | $ 84,630 | $ 74,045 |
Basic earnings per common share | $ 0.93 | $ 0.77 | $ 2.69 | $ 2.34 |
Diluted earnings per common share | $ 0.92 | $ 0.76 | $ 2.67 | $ 2.33 |
Basic weighted average shares outstanding | 31,492 | 31,453 | 31,480 | 31,582 |
Diluted weighted average shares outstanding | 31,628 | 31,622 | 31,638 | 31,743 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 29,281 | $ 24,538 | $ 84,808 | $ 75,058 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (30,873) | 659 | (61,810) | 3,917 |
Total other comprehensive (loss) income | (30,873) | 659 | (61,810) | 3,917 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (1,592) | 25,197 | 22,998 | 78,975 |
Net Income (Loss) Attributable to Noncontrolling Interest | 39 | 354 | 178 | 1,013 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (1,631) | $ 24,843 | $ 22,820 | $ 77,962 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 134,987 | $ 63,895 |
Short-term investments | 20,481 | 25,592 |
Restricted Cash and Cash Equivalents, Current | 0 | 4,040 |
Funds Held for Clients | 7,254 | 8,035 |
Trade accounts receivable, less allowances of $6,382 and $4,143, respectively | 153,171 | 117,838 |
Other current assets | 32,799 | 33,532 |
Total current assets | 348,692 | 252,932 |
Property and equipment, net | 45,648 | 41,704 |
Goodwill | 870,311 | 666,863 |
Intangibles, net | 36,948 | 45,711 |
Indefinite-lived intangibles | 42,055 | 42,055 |
Capitalized Software Development Costs for Software Sold to Customers | 10,039 | 8,499 |
Deferred tax asset, net | 44,656 | 43,529 |
Other assets | 30,546 | 11,720 |
Total assets | 1,428,895 | 1,113,013 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 109,458 | 75,073 |
Accrued payroll and related benefits | 9,801 | 8,201 |
Bank Overdrafts | 8,703 | 9,243 |
Funds Held for Clients, Liability | 7,254 | 8,035 |
Short Term Debt, net | 13,825 | 14,364 |
Capital lease obligations | 100 | 17 |
Current deferred rent | 121 | 278 |
Derivative Financial Instrument, Liabilities, Fair Value Disclosure, Current | 14,202 | 4,000 |
Deferred Revenue, Current | 30,174 | 22,562 |
Other current liabilities | 29,274 | 5,159 |
Total current liabilities | 222,912 | 146,932 |
Revolving line of credit | 399,694 | 274,529 |
Long-term Debt and Capital Lease Obligations, net | 229,982 | 110,978 |
Other liabilities | 11,158 | 11,658 |
Derivative Financial Instrument, Liabilities, Fair Value Disclosure, Noncurrent | 15,083 | 33,096 |
Deferred Revenue, Noncurrent | 8,153 | 1,423 |
Long term deferred rent | 323 | 638 |
Total liabilities | 887,305 | 579,254 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and outstanding at September 30, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $0.10 par value, 120,000,000 shares authorized, 31,501,029 issued and outstanding, at September 30, 2018, and 120,000,000 shares authorized, 31,476,428 issued and outstanding at December 31, 2017 | 3,150 | 3,148 |
Additional paid-in capital | 1,414 | 1,410 |
Retained Earnings (Accumulated Deficit) | 577,353 | 510,975 |
Accumulated other comprehensive loss | (85,833) | (24,023) |
Total stockholders’ equity | 496,084 | 491,510 |
Stockholders' Equity Attributable to Noncontrolling Interest | 45,506 | 42,249 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 541,590 | 533,759 |
Total liabilities and stockholders’ equity | $ 1,428,895 | $ 1,113,013 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Allowance for doubtful accounts | $ 6,382,000 | $ 4,143,000 |
Unamortized debt discount, current | 0 | 0 |
Deferred Costs, Current | 449,000 | 136,000 |
Unamortized debt discount, noncurrent | 0 | 0 |
Deferred Costs, Noncurrent | $ 1,523,000 | $ 298,000 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares issued | 31,501,029 | 31,476,428 |
Common stock, shares outstanding | 31,501,029 | 31,476,428 |
Treasury stock, shares | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, par value (per share) | $ 0.10 | $ 0.10 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Noncontrolling Interest [Member] | Accumulated Other Comprehensive Loss |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 533,759 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 11,600 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | (8,802) | $ (8,802) | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | ASC 340-40 [Member] | $ (1,460) | (1,460) | ||||
Beginning Balance, Issued Shares at Dec. 31, 2017 | 31,476,428 | 31,476,428 | ||||
Beginning Balance, Value at Dec. 31, 2017 | $ 491,510 | $ 3,148 | $ 1,410 | 510,975 | $ 42,249 | $ (24,023) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) Attributable to Parent | 84,630 | 84,630 | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | 178 | 178 | ||||
Cumulative translation adjustment | (61,810) | (61,810) | ||||
Repurchase and retirement of common stock, Shares | (30,000) | |||||
Repurchase and retirement of common stock, Value | (2,226) | $ (3) | (1,339) | (884) | ||
Vesting of restricted stock, Shares | 53,956 | |||||
Vesting of restricted stock, Value | 0 | $ 5 | (5) | |||
Exercise of stock options, Shares | 2,283 | |||||
Exercise of stock options, Value | 42 | $ 0 | 42 | |||
Share based compensation | 2,240 | 2,240 | ||||
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested, Shares | (1,638) | |||||
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested | (147) | $ 0 | (147) | |||
Recognized controlling ownership of joint venture | 2,292 | (787) | 3,079 | |||
Dividends paid | $ (7,106) | (7,106) | ||||
Ending Balance, Issued Shares at Sep. 30, 2018 | 31,501,029 | 31,501,029 | ||||
Ending Balance, Value at Sep. 30, 2018 | $ 496,084 | $ 3,150 | $ 1,414 | $ 577,353 | $ 45,506 | $ (85,833) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 541,590 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net Income (Loss) Attributable to Parent | $ 84,630 | $ 74,045 |
Net Income (Loss) Attributable to Noncontrolling Interest | 178 | 1,013 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Reduction of rent expense as a result of purchase accounting adjustment | 0 | (948) |
Depreciation and amortization | 7,864 | 8,323 |
Benefit for deferred taxes | (3,077) | (6,327) |
Share based compensation | 2,240 | 1,994 |
Provision for doubtful accounts | 2,622 | 1,107 |
Unrealized foreign exchange loss | 1,337 | 432 |
Capitalized Computer Software, Amortization | 1,608 | 1,304 |
Reduction of acquisition earnout accruals | (645) | (164) |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | (12,518) | (30,250) |
Other assets | (655) | 212 |
Accounts payable and accrued expenses | 6,811 | 838 |
Accrued payroll and related benefits | 322 | (1,009) |
Deferred revenue | (10,772) | (3,160) |
Deferred rent | (458) | (292) |
Unrecognized tax benefits, period increase (decrease) | 88 | 3,335 |
Other current liabilities | (5,410) | (255) |
Net cash provided by operating activities | 74,165 | 50,198 |
Cash flows from investing activities: | ||
Proceeds from Noncontrolling Interests | 4,996 | 0 |
Payments to Develop Software | (3,574) | (2,109) |
Payments for (Proceeds from) Investments | 4,444 | 7,517 |
Capital expenditures | (5,840) | (6,370) |
Net cash used in investing activities | (230,409) | (73,952) |
Cash flows from financing activities: | ||
Proceeds from (Repayments of) Lines of Credit | 125,165 | 80,000 |
Proceeds from Issuance of Other Long-term Debt | 124,250 | 0 |
Repayments of Secured Debt | (6,250) | (9,375) |
Repurchases of common stock | (2,226) | (45,732) |
Proceeds from the exercise of stock options | 42 | 52 |
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested | (147) | (327) |
Dividend payments | (7,106) | (7,176) |
Increase (Decrease) in Bank Overdrafts | 609 | 0 |
Repayments of Long-term Capital Lease Obligations | (6) | (7) |
Net cash provided by financing activities | 234,331 | 17,435 |
Effect of foreign exchange rates on cash | (11,444) | 381 |
Net change in cash and cash equivalents, and restricted cash | 66,643 | (5,938) |
Cash and cash equivalents, and restricted cash at the beginning of the period | 70,867 | 116,941 |
Cash and cash equivalents, and restricted cash at the end of the period | 137,510 | 111,003 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 16,865 | 8,474 |
Income taxes paid | 9,320 | 8,536 |
Mercury [Member] | ||
Payments for (Proceeds from) Previous Acquisition | (11,356) | |
Miles [Member] | ||
Payments for (Proceeds from) Previous Acquisition | 601 | 0 |
Leisure [Member] | ||
Cash flows from investing activities: | ||
Payments to Acquire Businesses, Net of Cash Acquired | (1,304) | 0 |
Transcorp [Member] | ||
Cash flows from investing activities: | ||
Payments to Acquire Businesses, Net of Cash Acquired | (6,554) | 0 |
beBetter [Member] | ||
Cash flows from investing activities: | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (1,000) |
ItzCash [Member] | ||
Payments for (Proceeds from) Previous Acquisition | (3,831) | 0 |
Cash flows from investing activities: | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (70,184) |
CDL (Centrum) [Member] | ||
Cash flows from investing activities: | ||
Payments to Acquire Businesses, Net of Cash Acquired | (176,137) | 0 |
Smartclass [Member] | ||
Cash flows from investing activities: | ||
Payments to Acquire Businesses, Net of Cash Acquired | (7,593) | 0 |
YouFirst [Member] | ||
Cash flows from investing activities: | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (1,806) |
Indus [Member] | ||
Cash flows from investing activities: | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ (24,261) | $ 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) Supplemental schedule of noncash financing activities $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Derivative Liability | $ 29,285 |
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested, Value | 147 |
Miles [Member] | |
Acquisition Obligations | $ 18,300 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business— Ebix, Inc., and its subsidiaries, (“Ebix” or the “Company”) is a leading international supplier of on-demand infrastructure Exchanges to the insurance, financial e-learning, and healthcare industries. In the insurance sector, the Company’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also providing Software-as-a-Service ("SaaS") enterprise solutions in the area of customer relationship management, front-end & back-end systems, outsourced administrative and risk compliance. The Company's products feature fully customizable and scalable on-demand software designed to streamline the way insurance professionals manage distribution, marketing, sales, customer service, and accounting activities. With a "Phygital” strategy that combines physical distribution outlets in many Association of Southeast Asian Nations (“ASEAN”) countries to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange, travel, pre-paid & gift cards, utility payments, etc., in emerging countries such as India. EbixCash through its travel portal Via.com is also one of Southeast Asia’s leading travel exchanges with distribution outlets and corporate clients processing millions of transactions every year. EbixCash, also, is a provider of lending software solutions to financial institutions and on-demand software on wealth and asset management to banks, asset managers and wealth management firms. The Company’s E-learning solutions are provided to schools across the breadth of India with the goal of educating students in a classroom through high quality 2-D and 3-D animation and multimedia learning. The Company has its headquarters in Johns Creek, Georgia and also conducts operating activities in Australia, Canada, India, New Zealand, Singapore, United Kingdom, Brazil, Philippines, Indonesia, and United Arab Emirates. International revenue accounted for 59.4% and 39.2% of the Company’s total revenue for the nine months ended September 30, 2018 and 2017 , respectively. The Company’s revenues are derived from four product/service channels. Presented in the table below is the breakout of our revenue streams for each of those product/service channels for the three months ended September 30, 2018 and 2017 . Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2018 2017 2018 2017 Exchanges $ 106,853 $ 64,130 $ 290,292 $ 177,117 Broker Systems 3,414 3,715 10,720 11,098 Risk Compliance Solutions (“RCS”) 18,066 24,265 59,340 68,780 Carrier Systems 310 690 1,147 2,295 Totals $ 128,643 $ 92,800 $ 361,499 $ 259,290 The Company is continuing to evaluate the classification of the 2017 and 2018 acquisitions that collectively make up the EbixCash Financial Exchanges, refer to Part I, Item I Business in our Form 10-K for the year ended December 31, 2017. Currently these acquisitions are reported under the Exchange channel, but this classification is subject to change based on the conclusions of our continued evaluations. Summary of Significant Accounting Policies Basis of Presentation— The accompanying unaudited condensed consolidated financial statements and these notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the effect of inter-company balances and transactions eliminated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP and SEC rules have been condensed or omitted as permitted by and pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements contain adjustments (consisting only of normal recurring items) necessary to fairly present the consolidated financial position of the Company and its consolidated results of operations and cash flows. Operating results for the nine months ended September 30, 2018 and 2017 are not necessarily indicative of the results that may be expected for future quarters or the full year of 2018. The condensed consolidated December 31, 2017 balance sheet included in this interim period filing has been derived from the audited financial statements at that date, but does not necessarily include all of the information and related notes required by GAAP for complete financial statements. These condensed interim financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Restricted Cash- As part of the Wdev Solucoes em Technologia SA ("Wdev") acquisition, upfront cash consideration is being held in an escrow account for the thirty-eight month period following the effective date of the acquisition to ensure that the acquired business achieves the minimum specified annual net revenue threshold, which if not achieved will result in said funds being returned to Ebix. As of September 30, 2018 there is $2.5 million included in other long-term assets of the Company's Condensed Consolidated Balance Sheet. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: Nine Months Ended September 30, (In thousands) 2018 2017 Cash and cash equivalents $ 134,987 $ 96,734 Restricted cash — 11,219 Restricted cash included in other long-term assets 2,523 3,050 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 137,510 $ 111,003 Advertising —Advertising costs amounted to $6.2 million and $4.4 million in the first nine months of 2018 and 2017 , respectively, and are included in sales and marketing expenses in the accompanying Condensed Consolidated Statements of Income. Under legacy US GAAP 340-20, direct response advertising was eligible for capitalization if certain conditions were met. During the first nine months of 2017 reported sales and marketing expenses included $3.0 million of amortization of certain direct-response advertising costs associated with our medical education services, which have been capitalized in accordance with Accounting Standards Codification ("ASC") Topic 340. These costs were previously amortized to advertising expense over periods ranging from twelve to twenty-four months based on the type of product the customer purchased. Effective January 1, 2018 Subtopic 340-40 replaced that guidance to require the costs of direct-response advertising to be expensed as they are incurred or the first time the advertising takes place. The Company was required to recognize a cumulative effective change to opening retained earnings in the year of adoption of the standard. The Company recorded a one-time $1.9 million adjustment to retained earnings on January 1, 2018 and is expensing all future costs from this date forward. Under the new guidance Subtopic 340-40, the Company's expense decreased by $625 thousand during the first nine months of 2018 from what would have been recorded under legacy US GAAP 340-20. Fair Value of Financial Instruments— The Company follows the relevant GAAP guidance concerning fair value measurements which provides a consistent framework to define, measure, and disclose the fair value of assets and liabilities in financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction. This guidance establishes a three-level hierarchy priority for disclosure of assets and liabilities recorded at fair value. The ordering of priority reflects the degree to which objective data from external active markets are available to measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. The classifications are as follows: • Level 1 Inputs - Unadjusted quoted prices available in active markets for identical investments to the reporting entity at the measurement date. • Level 2 Inputs - Other than quoted prices included in Level 1 inputs, which are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs - Unobservable inputs, which are used to the extent that observable inputs are not available, and used in situations where there is little or no market activity for the asset or liability and wherein the reporting entity makes estimates and assumptions related to the pricing of the asset or liability including assumptions regarding risk. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As of September 30, 2018 , the Company had the following financial instruments to which it had to consider fair values and had to make fair value assessments: • Short-term investments (commercial bank certificates of deposits and mutual funds), for which the fair values are measured as a Level 1 instrument. • Contingent accrued earn-out business acquisition consideration liabilities for which fair values are measured as Level 3 instruments. These contingent consideration liabilities were recorded at fair value on the acquisition date and are re-measured quarterly based on the then assessed fair value and adjusted if necessary. The increases or decreases in the fair value of contingent consideration payable can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3. Other financial instruments not measured at fair value on the Company's unaudited condensed consolidated balance sheet at September 30, 2018 but which require disclosure of their fair values include: cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, accrued payroll and related benefits, capital lease obligations, and the revolving line of credit and term loan debt under the syndicated credit agreement facility with Regions Financial Corporation. The Company believes that the estimated fair value of such instruments at September 30, 2018 and December 31, 2017 approximates their carrying value as reported on the unaudited Condensed Consolidated Balance Sheet. Additional information regarding the Company's assets and liabilities that are measured at fair value on a recurring basis is presented in the following tables: Fair Values at Reporting Date Using* Descriptions Balance, September 30, 2018 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets Commercial bank certificates of deposits ($2.86 million is recorded in the long term asset section of the consolidated balance sheets in "Other Assets") $ 23,342 $ 23,342 $ — $ — Mutual Funds (recorded in the long term asset section of the consolidated balance sheets in "Other Assets") 9,668 9,668 — — Total assets measured at fair value $ 33,010 $ 33,010 $ — $ — Liabilities Derivatives: Contingent accrued earn-out acquisition consideration (a) $ 29,285 $ — $ — $ 29,285 Total liabilities measured at fair value $ 29,285 $ — $ — $ 29,285 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments. * During the three and nine months ended September 30, 2018 there were no transfers between fair value Levels 1, 2 or 3. Fair Values at Reporting Date Using* Descriptions Balance, December 31, 2017 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets Commercial bank certificates of deposits ($2.19 million is recorded in the long term asset section of the consolidated balance sheets in "Other Assets") $ 22,293 22,293 $ — $ — Mutual Funds ($785 thousand recorded in the long term asset section of the consolidated balance sheets in "Other Assets") 6,278 6,278 — — Total assets measured at fair value $ 28,571 $ 28,571 $ — $ — Liabilities Derivatives: Contingent accrued earn-out acquisition consideration (a) $ 37,096 $ — $ — $ 37,096 Total liabilities measured at fair value $ 37,096 $ — $ — $ 37,096 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments. * During the twelve months ended December 31, 2017 there were no transfers between fair value Levels 1, 2 or 3. For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the nine months ended September 30, 2018 and during the year ended December 31, 2017 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Liability for Accrued Earn-out Acquisition Consideration September 30, 2018 December 31, 2017 (In thousands) Beginning balance $ 37,096 $ 8,510 Total remeasurement adjustments: Gains included in earnings ** (645 ) (164 ) Reductions recorded against goodwill (13,718 ) (4,007 ) Foreign currency translation adjustments *** (2,843 ) 522 Acquisitions and settlements Business acquisitions 13,226 34,156 Settlement payments (3,831 ) (1,921 ) Ending balance $ 29,285 $ 37,096 The amount of total (gains) losses for the period included in earnings or changes to net assets, attributable to changes in unrealized gains relating to assets or liabilities still held at period-end. $ (645 ) $ — ** recorded as a reduction to reported general and administrative expenses *** recorded as a component of other comprehensive income within stockholders' equity Quantitative Information about Level 3 Fair Value Measurements The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows: (In thousands) Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Input Contingent acquisition consideration: (Wdev, ItzCash, Indus, and Miles acquisition) $29,285 Discounted cash flow Projected revenue and probability of achievement (In thousands) Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Input Contingent acquisition consideration: (Wdev and ItzCash acquisition) $37,096 Discounted cash flow Projected revenue and probability of achievement Sensitivity to Changes in Significant Unobservable Inputs As presented in the table above, the significant unobservable inputs used in the fair value measurement of contingent consideration related to business acquisitions are projected revenue forecasts as developed by the relevant members of Company's management team and the probability of achievement of those revenue forecasts. Significant increases (decreases) in these unobservable inputs in isolation would result in a significantly higher (lower) fair value measurement. The Company applies these terms in its calculation and determination of the fair value of contingent earn out liabilities for purchased businesses as part of the related valuation and purchase price allocation exercise for the corresponding acquired assets and liabilities. During 2017 and 2018, certain of the Company's contingent earn out liabilities were adjusted because of changes to anticipated future revenues from these acquired businesses, or as a result of finalizing purchase price allocations that were previously provisional. Revenue Recognition— In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers ("Topic 606") . Topic 606 outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers, and supersedes most current revenue recognition guidance, including industry-specific guidance. In March 2016, the FASB issued ASU 2016-08, Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net), which amends the principal-versus-agent implementation guidance and in April 2016 the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing, which amends the guidance in those areas in the new revenue recognition standard. The Company derives its revenues primarily from subscription and transaction fees pertaining to services delivered over our exchanges or from our application service provider ("ASP") platforms, fees for risk compliance solution services, and fees for software development projects including associated fees for consulting, implementation, training, and project management provided to customers with installed systems and applications. Sales and value-added taxes are not included in revenues, but rather are recorded as a liability until the taxes assessed are remitted to the respective taxing authorities. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, we satisfy a performance obligation. For contracts that contain multiple deliverables, we analyze the revenue arrangements in accordance with the relevant technical accounting guidance, which provides criteria governing how to determine whether goods or services that are delivered separately in a bundled sales arrangement should be considered as separate performance obligations for the purpose of revenue recognition. These types of arrangements include obligations pertaining to software licenses, system set-up, and professional services associated with product customization or modification. Delivery of the various contractual obligations typically occurs over periods of less than eighteen months. These arrangements generally do not have refund provisions or have very limited refund terms. Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by FASB using the percentage-of-completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee. Financial exchange revenue consists largely of transaction-based fees and fees from the corporate and retail segments. The transaction-based fees are primarily based on a percentage of payment value processed for solutions such as retail and corporate payments, international and domestic money transfers, foreign exchange, travel related transactions and general purpose reloadable cards. Transaction-based fees are recognized at the completion of the transaction. The Company adopted Topic 606 as of January 1, 2018 using the modified retrospective method and applying the new standard to those contracts which were not completed as of January 1, 2018. Therefore, the comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption resulted in a decrease to retaine d earnings of $11.6 million for the cumulative e ffect of applying the Topic 606. This decrease was principally driven by the deferral of certain services revenues associated with programming, setup, and implementation activities related to our SaaS offering and changes related to costs to obtain customers, including the related amortization period. Impact of New Revenue Recognition Standard on Financial Statement Line Items The cumulative effect of applying Topic 606 to all contracts was recorded as an adjustment to retained earnings as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to accounts on the condensed consolidated balance sheet as of January 1, 2018: Impact of Change in Accounting Policy (In thousands) As Reported December 31, 2017 Adjustments Adjusted January 1, 2018 Other Current Assets $ 33,532 $ 898 $ 34,430 Current Assets 252,932 898 253,830 Deferred tax asset, net 43,529 2,843 46,372 Other Assets 11,720 1,502 13,222 Total Assets 1,113,013 5,243 1,118,256 Current Deferred Revenue 22,562 5,124 27,686 Current Liabilities 146,932 5,124 152,056 Long Term Deferred Revenue 1,423 8,921 10,344 Total Liabilities 579,254 14,045 593,299 Retained Earnings 510,975 (8,802 ) 502,173 The following tables present the impact of adopting Topic 606 on the Company’s unaudited consolidated financial statements as of and for the three and nine months ended September 30, 2018 : Impact of Change in Accounting Policy As Reported Three Months Ended September 30, 2018 Adjustments Balances without adoption of Topic 606 Condensed Consolidated Statement of Income (In thousands) Operating Revenue $ 128,643 $ 32 $ 128,675 Costs of Services Provided 42,963 (2 ) 42,961 Total Operating Expenses 89,405 (2 ) 89,403 Operating Income 39,238 34 39,272 Income before income taxes 30,960 34 30,994 Income tax (expense) benefit (1,679 ) (8 ) (1,687 ) Net income including non-controlling interest 29,281 26 29,307 Net income attributable to Ebix, Inc. 29,242 26 29,268 Basic earnings per common share attributable to Ebix, Inc. 0.93 — 0.93 Diluted Earnings per common share attributable to Ebix, Inc. 0.92 — 0.92 As Reported Nine Months Ended September 30, 2018 Adjustments Balances without adoption of Topic 606 Condensed Consolidated Statement of Income (In thousands) Operating Revenue $ 361,499 $ (592 ) $ 360,907 Costs of Services Provided 126,113 (122 ) 125,991 Total Operating Expenses 250,050 (122 ) 249,928 Operating Income 111,449 (470 ) 110,979 Income before income taxes 90,835 (470 ) 90,365 Income tax (expense) benefit (6,027 ) 115 (5,912 ) Net income including non-controlling interest 84,808 (355 ) 84,453 Net income attributable to Ebix, Inc. 84,630 (355 ) 84,275 Basic earnings per common share attributable to Ebix, Inc. 2.69 (0.01 ) 2.68 Diluted Earnings per common share attributable to Ebix, Inc. 2.67 (0.01 ) 2.66 As Reported September 30, 2018 Adjustments Balances without adoption of Topic 606 Condensed Consolidated Balance Sheet (In thousands) Other current assets $ 32,799 $ (843 ) $ 31,956 Total current assets 348,692 (843 ) 347,849 Deferred tax asset, net 44,656 (2,056 ) 42,600 Other assets 30,546 (1,273 ) 29,273 Total assets 1,428,895 (4,172 ) 1,424,723 Current Deferred Revenue 30,174 (4,618 ) 25,556 Total current liabilities 222,912 (4,618 ) 218,294 Long Term Deferred Revenue 8,153 (6,866 ) 1,287 Total liabilities 887,305 (11,484 ) 875,821 Retained earnings 577,353 7,312 584,665 As Reported Nine Months Ended September 30, 2018 Adjustments Balances without adoption of Topic 606 Condensed Consolidated Statement of Cash Flows (In thousands) Net income attributable to Ebix, Inc. $ 84,630 $ (355 ) $ 84,275 Other assets (655 ) (122 ) (777 ) Deferred Revenue (10,772 ) 2,561 (8,211 ) Net cash provided by operating activities 74,165 2,084 76,249 Disaggregation of Revenue The following tables present revenue disaggregated by primary geographical regions and product channels for the three months and nine months ended September 30, 2018 : Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (In thousands) Revenue: 2018 2017 (1) 2018 2017 (1) United States 48,395 52,603 $ 146,697 $ 157,682 Canada 1,267 1,827 4,323 5,969 Latin America 4,586 6,268 15,141 14,486 Australia 8,576 8,575 26,803 25,091 Singapore* 1,731 1,368 5,871 4,493 New Zealand 454 462 1,467 1,485 India* 56,631 17,509 139,985 37,508 Europe 3,854 4,188 11,726 12,576 United Arab Emirates* 319 — 694 — Indonesia* 1,683 — 5,052 — Philippines* 1,147 — 3,740 — $ 128,643 $ 92,800 $ 361,499 $ 259,290 *India led businesses, except for portion of Singapore which is not part of EbixCash. Total revenue in the third quarter of 2018 was $60.3 million. See Note 7 for additional geographic information Three Months Ended Nine Months Ended September 30 September 30 (In thousands) 2018 2017 (1) 2018 2017 Exchanges $ 106,853 $ 64,130 $ 290,292 $ 177,117 Broker Systems 3,414 3,715 10,720 11,098 RCS 18,066 24,265 59,340 68,780 Carrier Systems 310 690 1,147 2,295 Totals $ 128,643 $ 92,800 $ 361,499 $ 259,290 (1) Prior period amounts have not been adjusted under the modified retrospective method. Costs to Obtain and Fulfill a Contract The Company capitalizes certain costs in order to maintain the ability to obtain and fulfill new contracts and contract renewals. These costs are primarily related to the setup and customization of our SaaS based platforms and such costs are amortized over the benefit period. Under our treatment prior to implementing Topic 606, these costs were expensed as incurred. As of September 30, 2018 , the Company had $844 thousand of contract costs in “Other current assets” and $1.3 million in “Other Assets” on the Company's Condensed Consolidated Balance Sheets. (In thousands) September 30, 2018 Balance, beginning of period $ — Topic 606 adjustment 2,401 Adjusted beginning balance $ 2,401 Costs recognized from adjusted beginning balance (686 ) Additions, net of costs recognized 402 Balance, end of period $ 2,117 Deferred Revenue The Company records deferred revenue when it receives payments or invoices in advance of the performance of services. A significant portion of this balance relates to contracts where the customer has paid in advance for the use of our SaaS platforms over a specified period of time. This portion is recognized as the related performance obligation is fulfilled (generally less than one year). The remaining portion of the deferred revenue balance consists primarily of customer-specific customizations that are not distinct from related performance obligations that transfer over time. This portion is recognized over the expected useful life of the customizations. (In thousands) September 30, 2018 Balance, beginning of period $ 23,985 Topic 606 adjustment 14,045 Adjusted beginning balance $ 38,030 Revenue recognized from adjusted beginning balance (26,902 ) Additions from business acquisitions 12,223 Additions, net of revenue recognized and currency translation 14,976 Balance, end of period $ 38,327 Practical Expedients and Exemptions We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed, and (iii) contracts from periods prior to the application of Topic 606. Income Taxes The adoption of Topic 606 resulted in an increase to deferred revenue, which in turn generated an additional deferred tax asset that increased the Company’s net deferred tax asset position. Accounts Receivable and the Allowance for Doubtful Accounts— Reported accounts receivable include $111.0 million of trade receivables stated at invoice billed amounts and $42.2 million of unbilled receivables (net of the estimated allowance for doubtful accounts receivable in the amount of $6.4 million ). The unbilled receivables pertain to certain projects for which the timing of billing is tied to contractual milestones. The Company adheres to such contractually stated performance milestones and accordingly issues invoices to customers as per contract billing schedules. Approximately $5.3 million of deferred revenue is included in billed accounts receivable at September 30, 2018 . The Company recognized and recorded bad debt expense in the amount of $524 thousand and $2.6 million for the three and nine-month periods ended September 30, 2018 and $385 thousand and $1.1 million for the three and nine-month periods ended September 30, 2017 , respectively. Accounts receivable are written off against the allowance account when the Company has exhausted all reasonable collection efforts. During the nine months ended September 30, 2018 and 2017, $332 thousand and $513 thousand , respectively, of accounts receivable, which had been specifically reserved for in prior periods, were written off. Goodwill and Other Indefinite-Lived Intangible Assets— Goodwill represents the cost in excess of the fair value of the net assets of acquired businesses. Indefinite-lived intangible assets represent the fair value of certain acquired contractual customer relationships for which future cash flows are expected to continue indefinitely. In accordance with the relevant FASB accounting guidance, goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment at the reporting unit level on an annual basis or on an interim basis if an event occurs or circumstances change that would likely have reduced the fair value of a reporting unit below its carrying value. Potential impairment indicators include a significant change in the business climate, legal factors, operating performance indicators, competition, and the sale or disposition of a significant portion of the business. The impairment evaluation process involves an assessment of certain qualitative factors to determine whether the existence of events or circumstances would indicate that it is more likely than not that the fair value of any of our reporting units was less than its carrying amount. If after assessing the totality of events or circumstances, we were to determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company would not perform the two-step quantitative impairment testing described further below. The aforementioned two-step quantitative testing process involves comparing the reporting unit carrying values to their respective fair values; we determine fair value of our reporting units by applying the discounted cash flow method using the present value of future estimated net cash flows. If the fair value of a reporting unit exceeds its carrying value, then no further testing is required. However, if a reporting unit's fair value were to be less than its carrying value, we would then determine the amount of the impairment charge, if any, which would be the amount that the carrying value of the reporting unit's goodwill exceeded its implied value. Projections of cash flows are based on our views of growth rates, operating costs, anticipated future economic conditions and the appropriate discount rates relative to risk and estimates of residual values. We believe that our estimates are consistent with assumptions that marketplace participants would use in their estimates of fair value. The use of different estimates or assumptions for our projected discounted cash flows (e.g., growth rates, future economic conditions, discount rates and estimates of terminal values) when determining the fair value of our reporting units could result in different values and may result in a goodwill impairment charge. In 2017 the goodwill residing in the Exchange reporting unit, the RCS reporting unit, and the Carrier reporting unit were evaluated for impairment using step-one of the quantitative testing process described above. The fair value of all three of these reporting units were found to be greater than their carrying value and,therefore, step-two of the |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share A reconciliation between basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (In thousands, except per share data) Net income attributable to Ebix, Inc. $ 29,242 $ 24,184 $ 84,630 $ 74,045 Basic Weighted Average Shares Outstanding 31,492 31,453 31,480 31,582 Dilutive effect of stock options and restricted stock awards 136 169 158 161 Diluted weighted average shares outstanding 31,628 31,622 31,638 31,743 Basic earnings per common share $ 0.93 $ 0.77 $ 2.69 $ 2.34 Diluted earnings per common share $ 0.92 $ 0.76 $ 2.67 $ 2.33 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations The Company seeks to execute accretive business acquisitions (which primarily targets businesses that are complementary to Ebix's existing products and services), in combination with organic growth initiatives, as part of its comprehensive business growth and expansion strategy. During the nine months ended September 30, 2018 , the Company completed seven business acquisitions, as follows: Effective August 1, 2018 Ebix entered into an agreement to acquire India based Miles Software ("Miles"), a provider of on-demand software on wealth and asset management to banks, asset managers and wealth management firms, for approximately $18.3 million , included in other current liabilities of the Company's Condensed Consolidated Balance Sheet as it was not funded until October 2018, plus possible future contingent earn-out payments of up to $8.3 million based on earned revenues over the subsequent twenty-four month period following the effective date of the acquisition. The valuation and purchase price allocation remains preliminary and will be finalized as soon as practicable but in no event longer than one year from the effective date of this transaction. Effective July 1, 2018 Ebix entered into an agreement to acquire India based Leisure Corp ("Leisure") for approximately $2.1 million , with the goal of creating a new travel division to focus on a niche segment of the travel market. The valuation and purchase price allocation remains preliminary and will be finalized as soon as practicable but in no event longer than one year from the effective date of this transaction. Effective July 1, 2018 Ebix entered into an agreement to acquire India based Mercury Travels for approximately $13.2 million , with the goal of creating a new travel division to focus on a niche segment of the travel market. Mercury’s Forex business will be integrated into EbixCash’s existing CDL Forex exchange business. The valuation and purchase price allocation remains preliminary and will be finalized as soon as practicable but in no event longer than one year from the effective date of this transaction. Effective July 1, 2018 Ebix entered into an agreement to acquire India based Indus Software Technologies Pvt. Ltd. ("Indus"), a global provider of enterprise lending software solutions to financial institutions, captive auto finance and telecom companies, for approximately $22.9 million plus possible future contingent earn-out payments of up to $5.0 million based on earned revenues over the subsequent twenty-four month period following the effective date of the acquisition. The valuation and purchase price allocation remains preliminary and will be finalized as soon as practicable but in no event longer than one year from the effective date of this transaction. Effective April 1, 2018 Ebix entered into an agreement to acquire India based CentrumDirect Limited ("Centrum"), a leader in India’s foreign exchange and outward remittance markets for approximately $179.5 million . This acquisition was funded June 2018. Centrum will be tightly integrated into Ebix’s Financial Exchange EbixCash offering in India and abroad, with key Centrum business executives becoming an integral part of the combined EbixCash senior leadership. The valuation and purchase price allocation remains preliminary and will be finalized as soon as practicable but in no event longer than one year from the effective date of this transaction. Effective April 1, 2018 Ebix entered into an agreement to acquire a 60% stake in India based Smartclass Educational Services Private Limited ("Smartclass"), a leading e-learning Company engaged in the business of education services, development of education products, and implementation of education solutions for K-12 Schools. Under the terms of the agreement Ebix paid $8.6 million in cash for its stake in Smartclass. The valuation and purchase price allocation remains preliminary and will be finalized as soon as practicable but in no event longer than one year from the effective date of this transaction. Effective February 1, 2018 Ebix acquired the Money Transfer Service Scheme ("MTSS") Business of Transcorp International Limited (BSE:TRANSCOR.BO), for upfront cash consideration in the amount of $7.25 million , of which $6.55 million was funded with cash and $700 thousand assumed in liabilities. Ebix is consolidating this recent acquisition into Ebix's Financial Exchange operations which will bring synergies and reduce certain redundancies to the combined operation. During the twelve months ended December 31, 2017, the Company completed six business acquisitions, as follows: Effective November 1, 2017 Ebix acquired Via.com ("Via"), a recognized leader in the travel space in India and an Omni-channel online travel and assisted e-commerce exchange. Ebix acquired Via for upfront cash consideration in the amount $78.8 million plus possible future contingent payments of up to $2.3 million based on any potential claims made by tax authorities over the subsequent twelve month period following the effective date of the acquisition and $2.0 million based on the receipt of refunds pertaining to certain advance tax payments and withholding taxes, both of which are included in "Other current liabilities" in the Company's Consolidated Balance Sheet. Effective November 1, 2017 Ebix acquired the MTSS Business of Paul Merchants, the largest international remittance service provider in India, for upfront cash consideration in the amount $37.4 million . Effective October 1, 2017 Ebix acquired the MTSS Business of Wall Street, an inward international remittance service provider in India, along with the acquisition of its subsidiary company Goldman Securities Limited for upfront cash consideration in the amount $7.4 million . On August 18, 2017 Ebix entered into an agreement to acquire MTSS Business of YouFirst Money Express Private Limited ("YouFirst") for upfront cash consideration in the amount $10.2 million . The acquisition, effective September 1, 2017, was funded in October following the securing of requisite approvals for the closing. Effective June 1, 2017 Ebix acquired the assets of beBetter Health, Inc., ("beBetter"), a technology enabled corporate wellness provider that provides end-to-end wellness solutions offering a variety of tools and programs, including interactive platforms, health screening, coaching, tobacco cessation, weight and stress management, health information, and numerous other products and services. Ebix acquired the assets and intellectual property of beBetter for $1.0 million plus possible future contingent earn-out payments of up to $2.0 million based on earned revenues over the subsequent twenty-four month period following the effective date of the acquisition. The Company has determined that the fair value of the contingent earn-out consideration is zero as of September 30, 2018 . Effective April 1, 2017 Ebix entered into a joint venture with India-based Essel Group, while acquiring an 80% stake in ItzCash Card Limited ("ItzCash"), India’s leading payment solutions exchange. ItzCash is recognized as a leader in the prepaid cards and bill payments space in India. Under the terms of the agreement, ItzCash was valued at a total enterprise value of approximately $150 million . Accordingly, Ebix acquired an 80% stake in ItzCash for $120 million including upfront cash of $76.3 million plus possible future contingent earn-out payments of up to $44.0 million based on earned revenues over the subsequent thirty-six month period following the effective date of the acquisition. During the third quarter of 2018 $3.8 million of the possible future contingent earn-out payments which was previously being held in escrow accounts for the twelve -month period following the effective date of the acquisition to ensure that the acquired business achieved the minimum specified annual gross revenue threshold, was paid. The Company has determined that the fair value of the contingent earn-out consideration is $14.8 million as of September 30, 2018 . A significant component of the purchase price consideration for many of the Company's business acquisitions is a potential subsequent cash earnout payment based on reaching certain specified future revenue targets. The terms for the contingent earn out payments in most of the Company's business acquisitions typically address the GAAP recognizable revenues achieved by the acquired entity over a one, two, and/or three-year period subsequent to the effective date of their acquisition by Ebix. These terms typically establish a minimum threshold revenue target with achievement of revenues recognized over that target being awarded in the form of a specified cash earn out payment. The Company applies these terms in its calculation and determination of the fair value of contingent earn out liabilities for purchased businesses as part of the related valuation and purchase price allocation exercise for the corresponding acquired assets and liabilities. The Company recognizes these potential obligations as contingent liabilities and are reported as such on its Condensed Consolidated Balance Sheets. As discussed in more detail in Note 1, these contingent consideration liabilities are recorded at fair value on the acquisition date and are remeasured quarterly based on the then assessed fair value and adjusted if necessary. During the nine months ended September 30, 2018 and 2017 , these aggregate contingent accrued earn-out business acquisition consideration liabilities were reduced by $14.4 million and $3.6 million , respectively, due to remeasurements based on the then assessed fair value and changes in anticipated future revenue levels. In the first nine months ended September 30, 2018 and 2017 these reductions to the contingent accrued earn-out liabilities resulted in a corresponding reduction of $645 thousand and $164 thousand , respectively to general and administrative expenses as reported on the Condensed Consolidated Statements of Income and a reduction of $13.7 million and $3.4 million , respectively to goodwill as reported in the enclosed Condensed Consolidated Balance Sheets. As of September 30, 2018 , the total of these contingent liabilities was $29.3 million , of which $15.1 million is reported in long-term liabilities, and $14.2 million is included in current liabilities in the Company's Condensed Consolidated Balance Sheet. As of December 31, 2017 the total of these contingent liabilities was $37.1 million , of which $33.1 million was reported in long-term liabilities, and $4.0 million was included in current liabilities in the Company's Condensed Consolidated Balance Sheet. Consideration paid by the Company for the businesses it purchases is allocated to the assets and liabilities acquired based upon their estimated fair values as of the date of the acquisition. The excess of the purchase price over the estimated fair values of assets acquired and liabilities assumed is recorded as goodwill. Recognized goodwill pertains to the value of the expected synergies to be derived from combining the operations of the businesses we acquire including the value of the acquired workforce. The aggregated unaudited pro forma financial information pertaining to all of the Company's acquisitions that have an impact on the nine months ended September 30, 2018 and September 30, 2017 , which includes the acquisitions of the ItzCash (acquired April 2017), beBetter (acquired June 2017), YouFirst (acquired September 2017), Wall Street (acquired October 2017), Paul Merchants (acquired November 2017), Via (acquired November 2017), Transcorp (acquired February 2018), Centrum (acquired April 2018), Smartclass (acquired April 2018), Indus (acquired July 2018), Mercury acquired July 2018), Leisure (acquired July 2018), and Miles (acquired August 2018) and as presented in the table below is provided for informational purposes only and is not a projection of the Company's expected results of operations for any future period. No effect has been given in this pro forma information for future synergistic benefits that may still be realized as a result of combining these companies or costs that may yet be incurred in integrating their operations. The 2018 and 2017 pro forma financial information below assumes that all such business acquisitions were made on January 1, 2017, whereas the Company's reported financial statements for the three and nine months ended September 30, 2018 only include the operating results from these businesses since the effective date that they were acquired by Ebix. Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 As Reported Pro Forma As Reported Pro Forma As Reported Pro Forma As Reported Pro Forma (unaudited) (unaudited) (unaudited) (unaudited) (In thousands, except per share data) Revenue $ 128,643 $ 129,081 $ 92,800 $ 141,057 $ 361,499 $ 401,295 $ 259,290 $ 425,413 Net Income attributable to Ebix, Inc. $ 29,242 $ 29,097 $ 24,184 $ 26,434 $ 84,630 $ 86,742 $ 74,045 $ 86,060 Basic EPS $ 0.93 $ 0.92 $ 0.77 $ 0.84 $ 2.69 $ 2.76 $ 2.34 $ 2.72 Diluted EPS $ 0.92 $ 0.92 $ 0.76 $ 0.84 $ 2.67 $ 2.74 $ 2.33 $ 2.71 During the three months ended September 30, 2018 the Company's reported total operating revenues increased by $35.8 million or 39% to $128.6 million as compared to $92.8 million during the same period in 2017. During the nine months ended September 30, 2018 the Company's reported total operating revenues increased by $102.2 million or 39% to $361.5 million as compared to $259.3 million during the same period in 2017. With respect to business acquisitions completed during the years 2018 and 2017 on a pro forma basis, as disclosed in the above pro forma financial information table, combined revenues decreased 8.5% and 5.7% for the three and nine months ending September 30, 2018 , respectively, versus the same periods in 2017. The 2018 and 2017 pro forma financial information assumes that all business acquisitions made during this period were made on January 1, 2017, whereas the Company's reported financial statements for three months and nine months ended September 30, 2018 only includes the revenues from these businesses since the effective date that they were acquired or consolidated by Ebix, being April 2017 for Itzcash, June 2017 for beBetter, September 2017 for YouFirst, October 2017 for Wall Street, November 2017 for Paul Merchants, November 2017 for Via, February 2018 for Transcorp, April 2018 for Centrum, April 2018 for Smartclass, July 2018 for Indus, July 2018 for Mercury, July 2018 for Leisure, and August 2018 for Miles. The above referenced pro forma information and the relative comparative change in pro forma and reported revenues are based on the following premises: • 2018 and 2017 pro forma revenue contains actual revenue of the acquired entities before acquisition date, as reported by the sellers, as well as actual revenue of the acquired entities after acquisition, whereas the reported growth in revenues of the acquired entities after acquisition date are only reflected for the period after their acquisition. • Revenue billed to existing clients from the cross selling of acquired products has been assigned to the acquired section of our business. • Any existing products sold to new customers obtained through a newly acquired customer base are assigned to the acquired section of our business. • Pro formas do not include post acquisition revenue reductions as a result of discontinuation of any product lines and/or customer projects by Ebix in line with the Company's initiatives to maximize profitability. |
Debt with Commercial Bank
Debt with Commercial Bank | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt with Commercial Bank | Debt with Commercial Bank On April 9, 2018 the Company and certain of its subsidiaries entered into the Seventh Amendment (the “Seventh Amendment”) to the to the Regions Secured Credit Facility increasing the permitted indebtedness in the form of unsecured convertible notes from $250 million to $300 million . On February 21, 2018, Ebix, Inc. and certain of its subsidiaries entered into the Sixth Amendment (the “Sixth Amendment”) to the Regions Secured Credit Facility, dated August 5, 2014, among the Company, Regions Bank as Administrative and Collateral Agent ("Regions") and certain other lenders party thereto (as amended, the "Credit Agreement"). The Sixth Amendment amends the Credit Agreement by increasing its existing credit facility from $450 million to $650 million , to assist in funding its growth. The increase in the bank line was the result of many members of the existing bank group expanding their share of the credit facility and the addition of BBVA Compass and Bank of the West to the Banking Syndicate, which diversifies Ebix’s lending group under the credit facility to ten participants. The syndicated bank group now comprises ten leading financial institutions that include Regions Bank, PNC Bank, BMO Harris Bank, BBVA Compass, Fifth Third Bank, KeyBank, Bank of the West, Silicon Valley Bank, Cadence Bank and Trustmark National Bank. Regions Bank continued to lead the banking group while serving as the administrative and collateral agent. PNC Bank and BMO Harris Bank were added as co-syndication agents, BBVA Compass and Fifth Third Bank as co-documentation agent, while Regions Capital Markets, PNC Capital Markets and BMO Harris Bank acted as joint lead arrangers and joint bookrunners. The new credit facility has the following key components; A five -year term loan for $250 million , with initial repayments starting June 30, 2018 due in the amount $3.13 million for the first eight quarters and increasing thereafter and a five -year revolving credit facility for $400 million . The new credit facility also allows for up to $150 million of incremental facilities. The Credit Agreement carries a leverage-based LIBOR related interest rate, which currently stands at approximately 4.63% . On November 3, 2017 the Company and certain of its subsidiaries entered into the Fifth Amendment (the “Fifth Amendment”) to the Credit Agreement to exercise $50 million of its aggregate $100 million accordion option, increasing the total Term Loan Commitment to $175 million . $20 million of the increase was funded on November 3, 2017 and the remaining $30 million shall be disbursed upon the satisfaction of certain closing requirements set forth in the Fifth Amendment. Both such disbursements are tied to permitted acquisitions as set forth in the Fifth Amendment. On November 3, 2017, the Company and certain of its subsidiaries entered into the Fourth Amendment and Waiver (the “Fourth Amendment”) to the Credit Agreement. The Fourth Amendment waives certain technical defaults related to the failure to give required notice with respect to i) the existence of a subsidiary having intellectual property with an aggregate value above a stipulated amount and ii) the additional investment in a joint venture entity resulting in that entity becoming a subsidiary of the Company for the purpose of the Credit Agreement. In addition to such waiver, the Fourth Amendment also loosened the leverage ratios the Company is required to satisfy in connection with permitted acquisitions and for compliance generally. On October 19, 2017, the Company and certain of its subsidiaries entered into the Third Amendment and Waiver (the “Third Amendment”) to the Credit Agreement. The Third Amendment waives certain technical defaults related to the Company’s making certain restricted payments in excess of those permitted under the Credit Agreement. In addition to such waiver, the Third Amendment also loosened the limitations on the restricted payment covenant under the Credit Agreement. On June 17, 2016, the Company and certain of its subsidiaries entered into the Second Amendment (the “Second Amendment”) to the Credit Agreement, Regions Capital Markets, PNC Capital Markets, LLC, and TD Securities (USA) as joint Lead Arrangers for the syndicate of lenders (the “Regions Secured Credit Facility”). The Second Amendment increases the total credit facility to $400 million from the prior amount of $240 million , and expands the syndicated bank group to eleven participants by adding seven new participants which include PNC Bank, National Association BMO Harris Bank N.A., Key Bank National Association, HSBC Bank National, Cadence Bank, the Toronto-Dominion Bank (New York Branch), and Trustmark National Bank. The Credit Agreement now consists of a five -year revolving credit component in the amount of $275 million , and a five -year term loan component in the amount of $125 million , with repayments due in the amount $3.13 million due each quarter, starting September 30, 2016. The Credit Agreement also contains an accordion feature, which if exercised and approved by all credit parties, would expand the total borrowing capacity under the syndicated credit facility to $500 million . As of September 30, 2018 the Company's consolidated balance sheet includes $5.1 million of remaining deferred financing costs in connection with this credit facility, which are being amortized as a component of interest expense over the five -year term of the financing agreement. In regards to these deferred financing costs, $3.1 million pertains to the revolving line of credit component of the Credit Agreement, and $2.0 million pertains to the term loan component of the Credit Agreement of which $449 thousand is netted against the current portion and $1.5 million is netted against the long-term portions of the term loan as reported on the Condensed Consolidated Balance. At September 30, 2018 , the outstanding balance on the revolving line of credit under the Credit Agreement was $399.7 million and the facility carried an interest rate of 4.63% . During the nine months ended September 30, 2018 , $246.0 million of draws were made off of the revolving credit facility. The revolving line of credit balance is included in the long-term liabilities section of the Condensed Consolidated Balance Sheets. During the nine months ended September 30, 2018 , the average and maximum outstanding balances of the revolving line of credit component of the credit facility were $288.8 million and $399.7 million , respectively. At September 30, 2018 , the outstanding balance on the term loan was $243.8 million of which $12.5 million is due within the next twelve months, with $6.25 million payments having been made during the nine months ended September 30, 2018 . This term loan also carried an interest rate of 4.63% . The current and long-term portions of the term loan are included in the respective current and long-term sections of the Condensed Consolidated Balance Sheets, the amounts of which were $12.5 million and $231.3 million respectively at September 30, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies - Following the announcement on May 1, 2013 of the Company's execution of a merger agreement with affiliates of Goldman Sachs & Co., twelve putative class action complaints challenging the proposed merger were filed in the Delaware Court of Chancery. These complaints named as Defendants some combination of the Company, its directors, Goldman Sachs & Co. and affiliated entities. On June 10, 2013, the twelve complaints were consolidated by the Delaware Court of Chancery, now captioned In re Ebix, Inc. Stockholder Litigation, CA No. 8526-VCS. On June 19, 2013, the Company announced that the merger agreement had been terminated pursuant to a Termination and Settlement Agreement dated June 19, 2013. After Defendants moved to dismiss the consolidated proceeding, Plaintiffs Desert States Employers & UFCW Union Pension Plan and Gilbert C. Spagnola (collectively, “Lead Plaintiffs”) amended their operative complaint to drop their claims against Goldman Sachs & Co. and focus their allegations on an Acquisition Bonus Agreement (“ABA”) between the Company and Robin Raina. On September 26, 2013, Defendants moved to dismiss the Amended Consolidated Complaint. On July 24, 2014, the Court issued its Memorandum Opinion that granted in large part the Company’s Motion to Dismiss and narrowed the remaining claims. On September 15, 2014, the Court entered an Order implementing its Memorandum Opinion. On January 16, 2015, the Court entered an Order permitting Plaintiffs to file a Second Amended and Supplemented Complaint. On February 10, 2015, Defendants filed a Motion to Dismiss the Second Amended and Supplemented Complaint, which was granted in part and denied in part in a January 15, 2016 Memorandum Opinion and Order. On October 25, 2016, the Court entered an Order permitting Lead Plaintiffs to file a Verified Third Amended and Supplemented Class Action and Derivative Complaint, which made additional claims and added two directors as Defendants. The Verified Third Amended and Supplemented Class Action and Derivative Complaint was then filed on October 26, 2016. On October 31, 2016, Lead Plaintiffs filed a Motion for Class Certification. On November 1, 2016, Lead Plaintiffs moved for partial summary judgment on Claims (ii), (iii), and (vi) as described below. The directors added as Defendants in the Third Amended and Supplemented Class Action and Derivative Complaint moved to dismiss all Claims against them. The remaining Defendants moved to dismiss certain Claims, and filed answers to the other claims in the Verified Third Amended and Supplemented Complaint. On December 12, 2017, the Court postponed the pending hearing on the Plaintiffs’ Motion for Class Certification and the Defendants’ motions to dismiss and, instead, granted the Plaintiffs leave to file a Verified Fourth Amended and Supplemented Class Action and Derivative Complaint, which pleading was filed on January 19, 2018. The claims in the fourth amended complaint are as follows: (i) a purported class and derivative claim for breach of fiduciary duty for improperly maintaining the ABA as an unreasonable anti-takeover device; (ii) a purported class claim for breach of the fiduciary duty of disclosure to the stockholders with respect to the Company’s 2010 Proxy Statement and 2010 Stock Incentive Plan; (iii) a purported derivative claim for breach of fiduciary duty to the Company in causing incentive compensation to be awarded under the 2010 Stock Incentive Plan; (iv) a purported class and derivative claim for breach of fiduciary duty in adopting certain bylaw amendments on December 19, 2014; (v) a purported class and derivative claim seeking invalidation of the December 19, 2014 bylaw amendments under Delaware law; (vi) a purported claim for breach of fiduciary duty for not duly adopting the ABA at the July 15, 2009 Board meeting, and seeking declaratory relief invalidating the ABA; (vii) a purported claim for breach of the fiduciary duty of disclosure to the stockholders with respect to the ABA, and seeking declaratory relief invalidating the ABA; (viii) a purported claim seeking invalidation of the 2008 Stockholder Meeting, 2008 Certificate Amendment, 2008 Stock Split and subsequent corporate actions; (ix) a purported class claim for breach of fiduciary duty, and seeking declaratory relief invalidating the 2016 CEO Bonus Plan because of incomplete disclosures with respect to the ABA; and (x) for breach of fiduciary duty and declaratory judgment relating to the interpretation of the ABA. Lead Plaintiffs sought declaratory relief with respect to the ABA, the 2010 Stock Incentive Plan, the 2010 Proxy Statement, the bylaw amendments, the 2008 Stockholder Meeting, the 2008 Certificate Amendment, the 2008 Stock Split, and the 2016 CEO Bonus Plan. Lead Plaintiffs also seek compensatory damages, interest, and attorneys’ fees and costs, all in unspecified amounts. On May 31, 2018, the plaintiffs filed their Verified Supplement (the “Supplement”) to their Verified Fourth Amended and Supplemented Class Action and Derivative Complaint in which they sought to have the April 10, 2018 Stock Appreciation Rights Agreement (the “SAR”) adopted by the board of directors of Ebix, which agreement expressly canceled the July 15, 2009 Acquisition Bonus Agreement declared void ab initio. Specifically, the Supplement added to the Verified Fourth Amended and Supplemented Class Action and Derivative Complaint: one count purporting to state class and derivative claims against all Defendants for such a declaration; one count purporting to state class and derivative claims for breach of fiduciary duty in adopting the SAR; and one count purporting class and derivative claims for breach of fiduciary duty in adopting the SAR as an improper anti-takeover defense. On July 5, 2018, the court entered as an order the parties’ stipulation dismissing Count VIII of the FAC, which count had purported to state a claim seeking invalidation of the 2008 stockholders meeting, the 2008 certificate amendment, the 2008 stock dividend and subsequent corporate actions. On July 17, 2018 the court entered an order granting summary judgment as to all Defendants with respect to Counts I, IV, V, VI, VII and X of the FAC, and as to Ebix and Defendants Joseph R. Wright, Jr. and George W. Hebard III with respect to Count IX. Following the court’s July 17, 2018 order, the claims remaining from the Verified Fourth Amended and Supplemented Class Action and Derivative Complaint are Count II (against all directors other than Messrs. Wright and Hebard for allegedly false disclosures in Ebix’s 2010 proxy statement); Count III (against all directors and challenging grants under a 2010 stock incentive plan); and Count IX (against all directors other than Messrs. Wright and Hebard for allegedly failing to disclose certain unwritten terms of the ABA). On August 9, 2018, the Court denied Defendants’ Motion to Dismiss the Supplement under Court of Chancery Rule 23.1, and granted in part and denied in part Defendants’ motion under Court of Chancery Rule 12(b)(6). On July 24, 2018, Plaintiffs filed a motion for leave to file a second supplement to the FAC to assert claims relating to Ebix’s July 16, 2018 proxy statement. On August 15, 2018, during the telephonic pretrial conference, the Court denied that motion. The parties then filed pre-trial briefs, and a trial was held on the remaining claims on August 20, 21, and 23, 2018. The parties are currently conducting post-trial briefing, with a hearing scheduled for January 2019. The Company denies any liability and intends to defend the action vigorously. The Company is involved in various other claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate likely disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. Lease Commitments— The Company leases office space under non-cancelable operating leases with expiration dates ranging through 2029, with various renewal options. Capital leases range from three to five years and are primarily for office equipment. There were multiple assets under various individual capital leases at September 30, 2018 and 2017 . Rental expense for office facilities and certain equipment subject to operating leases for the nine months ended September 30, 2018 and 2017 was $14.7 million and $4.3 million (net of a $(948) thousand purchase accounting adjustment), respectively. Business Acquisition Earn-out Contingencies- A significant component of the purchase price consideration for many of the Company's business acquisitions is a potential future cash earn-out based on reaching certain specified future revenue targets. The terms for the contingent earn-out payments in most of the Company's business acquisitions typically address the GAAP recognizable revenues achieved by the acquired entity over a one, two, and/or three-year period subsequent to the effective date of their acquisition by Ebix. These terms typically establish a minimum threshold revenue target with achievement of revenues recognized over that target being awarded in the form of a specified cash earn-out payment. The Company applies these terms in its calculation and determination of the fair value of contingent earn-out liabilities for purchased businesses as part of the related valuation and purchase price allocation exercise for the corresponding acquired assets and liabilities. As of September 30, 2018 , the total of these contingent liabilities was $29.3 million , of which $15.1 million is reported in long-term liabilities, and $14.2 million is included in current liabilities in the Company's Condensed Consolidated Balance Sheet. As of December 31, 2017, the total of these contingent liabilities was $37.1 million , of which $33.1 million was reported in long-term liabilities, and $4.0 million was included in current liabilities in the Company's Condensed Consolidated Balance Sheet. Self-Insurance— For some of the Company’s U.S. employees the Company is self-insured for its health insurance program and has a stop loss policy that limits the individual liability to $120 thousand per person and the aggregate liability to 125% of the expected claims based upon the number of participants and historical claims. As of September 30, 2018 , the amount accrued on the Company’s Condensed Consolidated Balance Sheet for the self-insured component of the Company’s employee health insurance was $282 thousand . The maximum potential estimated cumulative liability for the annual contract period, which ends in September 2019, was $2.8 million . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $1.68 million ( 5.42% ) and $6.03 million ( 6.64% ), respectively, during the three and nine months ended September 30, 2018 which included discrete items for additions to the reserve for uncertain tax positions. The income tax expense exclusive of discrete items for the three and nine months ended September 30, 2018 is $1.65 million ( 5.33% ) and $5.94 million ( 6.54% ), respectively. Our tax expense and effective tax rate increased year over year, exclusive of discrete charges, due to a new minimum tax on global intangible low-taxed income (“GILTI”) earned by foreign subsidiaries as part of the Tax Act. The Company expects its full year tax rate before discrete items to be approximately 6.54% . On December 22, 2017, the U.S. enacted the Tax Act, which implemented a number of changes that took effect on January 1, 2018, including but not limited to, a new minimum tax on GILTI earned by foreign subsidiaries. The Company estimated the impact of GILTI on the expected annual effective income tax rate and recorded a provisional tax expense. Any adjustment of the Company’s provisional tax expense will be reflected as a change in estimate in its results in the period in which the change in estimate is made in accordance with ASU 2018-05 Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 118. ASU 2018-05 allows for a measurement period of up to one year after the enactment date of the Act to finalize the recording of the related tax impacts. In addition, the Company continues to gather information to compute the amount of the Transition Tax under the Tax Act and will complete the accounting in its December 31, 2018 financial statements. The Company’s effective tax rate reflects the benefits of having significant operations outside the United States, which are generally taxed at rates lower than the US statutory rate of 21% and where the Company enjoys a tax holiday in India. During 2015, the Company secured an additional tax holiday in India until the year 2020 to support certain portions of its expanding operations there. The Company also had income during the quarter ended September 30, 2018 in the United Kingdom, Dubai, and Sweden, where the statutory tax rates are lower than the US rate of 21% . As of September 30, 2018 a liability of $9.2 million for uncertain tax positions is included in other long-term liabilities of the Company's Condensed Consolidated Balance Sheet. During the three and nine months ended September 30, 2018 there was $29 thousand and $88 thousand in additions to this liability reserve, respectively. During the three and nine months ended September 30, 2017, there were $55 thousand and $3.3 million , respectively, in additions to this liability reserve. The Company recognizes interest accrued and penalties related to unrecognized tax benefits as part of income tax expense. |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The Company operates with one reportable segment whose results are regularly reviewed by the Company's CEO, its chief operating decision maker as to performance and allocation of resources. External customer revenues in the tables below are attributed to a particular country based on whether the customer had a direct contract with the Company which was executed in that particular country for the sale of the Company's products/services with an Ebix subsidiary located in that country. During the first nine months of 2018 the United States' revenues decreased $11.0 million primarily due to a combination of decreased professional services and a decrease of third party administrator services. Canada's revenues decreased by $1.6 million primarily due to decreased revenue from professional services. Australia's revenues increased by $1.7 million primarily due to a combination of increased professional services and transaction fees, net of a $(276) thousand increase due to changes in foreign currency exchange rates. India's revenue increased $102.5 million due to $103.8 million of revenues associated with the acquisitions of ItzCash (Q2 2017), YouFirst (Q3 2017), Wall Street (Q4 2017), Paul Merchants (Q4 2017), Via (Q4 2017), Transcorp (Q1 2018), Centrum (Q2 2018), Smartclass (Q2 2018), Indus (Q3 2018), Mercury (Q3 2018), Leisure (Q3 2018), and Miles (Q3 2018). Partially offsetting this was a $(900) thousand decrease in e-governance contracts. Increases in Indonesia, Philippines, Singapore and United Arab Emirates are due to the November 2017 acquisition of Via (Q4 2017). The following enterprise-wide information relates to the Company's geographic locations: As of and for the Nine Months Ended September 30, 2018 As of and for the Nine Months Ended September 30, 2017 External Revenues Long-lived assets External Revenues Long-lived assets (In thousands) United States $ 146,697 $ 393,066 $ 157,682 $ 390,950 Canada 4,323 6,265 5,969 6,674 Latin America 15,141 18,338 14,486 23,919 Australia 26,803 1,605 25,091 1,273 Singapore* 5,871 19,054 4,493 17,427 New Zealand 1,467 267 1,485 251 India* 139,985 561,966 37,508 268,449 Europe 11,726 24,852 12,576 22,613 United Arab Emirates* 694 54,252 — 53,602 Indonesia* 5,052 64 — — Philippines* 3,740 474 — — $ 361,499 $ 1,080,203 $ 259,290 $ 785,158 *India led businesses, except for portion of Singapore which is not part of EbixCash and United Arab Emirate long-lived assets pertain to intellectual property research and development activities located in Dubai which is not part of EbixCash either. Total revenue in the third quarter of 2018 for India led businesses was $60.3 million. In the geographical information table above the significant changes to long-lived assets from September 30, 2017 to September 30, 2018 were comprised of an increase in the United States of $2.1 million primarily due to capitalized continuing medical education product costs and the continued build out of our global corporate headquarters campus in Johns Creek, Georgia. A decrease occurred in Latin America of $5.6 million primarily due to a 22.0% weakening of the Brazilian Real versus the U.S. Dollar which caused a $5.2 million decrease in the translation of long-lived assets plus continued amortization of intangible assets. An increase in India of $293.5 million is primarily due to a $319.5 million increase associated with the acquisitions of Wall Street (Q4 2017), Paul Merchants (Q4 2017), Via (Q4 2017), Transcorp (Q1 2018), Centrum (Q2 2018), Smartclass (Q2 2018), Indus (Q3 2018), Mercury (Q3 2018), Leisure (Q3 2018), and Miles (Q3 2018), partially offset for purchase accounting adjustments made for ItzCash (Q2 2017) acquisition. The Europe increase of $2.2 million is primarily due to an increase in deferred tax assets primarily due to the release of valuation allowances of operating loss carryforwards, partially offset by the amortization of intangible assets and capitalized software development costs. |
Investment in Joint Ventures (N
Investment in Joint Ventures (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Investment in Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Investment in Joint Ventures Effective April 1, 2018 Ebix entered into an agreement to acquire a 60% stake in India based Smartclass, a leading e-learning Company engaged in the business of education services, development of education products, and implementation of education solutions for K-12 Schools. Under the terms of the agreement, Ebix paid $8.6 million in cash for its stake in Smartclass. Effective January 2, 2018 Paul Merchants acquired a 10% equity interest in Ebix’s combined international remittance business in India (comprised of YouFirst, Wall Street , Paul Merchants, and Transcorp) for cash consideration of $5.0 million . The consolidation of these acquisitions into Ebix's Financial Exchange operations will bring synergies and reduce certain redundancies to the combined operation. As part of this agreement Ebix retains an irrevocable option to reacquire 10% of the equity interest after one year at a predetermined price which is included in other current liabilities of the Company's Condensed Consolidated Balance Sheet. Effective April 1, 2017 Ebix entered into a joint venture with India-based Essel Group, while acquiring an 80% stake in ItzCash, India’s leading payment solutions exchange. ItzCash is recognized as a leader in the prepaid cards and bill payments space in India. Under the terms of the agreement, ItzCash was valued at a total enterprise value of approximately $150 million . Accordingly, Ebix acquired an 80% stake in ItzCash for $120 million including upfront cash of $76.3 million plus possible future contingent earn-out payments of up to $44.0 million based on earned revenues over the subsequent thirty-six month period following the effective date of the acquisition. During the third quarter of 2018 $3.8 million of the possible future contingent earn-out payments which was previously being held in escrow accounts for the twelve month period following the effective date of the acquisition to ensure that the acquired business achieved the minimum specified annual gross revenue threshold, was paid. Effective February 7, 2016 Ebix and Vayam Technologies Ltd ("Vayam") formed a joint venture named Ebix Vayam Limited JV. This joint venture was established to carry out IT projects in the government sector of the country of India and particularly in regards to the implementation of e-governance projects in the areas of education and healthcare. Ebix has a 51% equity interest in the joint venture, and Vayam has a 49% equity interest in the joint venture. Ebix is fully consolidating the operations of the Ebix Vayam Limited JV into the Company's financial statements and separately reporting the Vayam minority, non-controlling, interest in the joint venture's net income and equity. Effective September 1, 2015 Ebix and IHC formed the joint venture EbixHealth JV. This joint venture was established to promote and market an administrative data exchange for health and pet insurance lines of business nationally. Ebix paid $6.0 million and contributed a license to use certain CurePet software and systems valued by the EbixHealth JV at $2.0 million , for its initial 40% membership interest in the EbixHealth JV. IHC contributed all if its shares in its existing third party administrator operations (IHC Health Solutions, Inc.), valued by the EbixHealth JV at $12.0 million for its 60% membership interest in the EbixHealth JV, and received a special distribution of $6.0 million . Effective July 1, 2016 Ebix and IHC jointly executed a Call Notice agreement, whereby Ebix purchased additional common units in the EbixHealth JV from IHC constituting eleven percent ( 11% ) of the EbixHealth JV for $2.0 million cash which resulted in Ebix holding an aggregate fifty-one percent ( 51% ) of the EbixHealth JV. Commensurate with additional equity stake in the joint venture and a new contemporaneous valuation of the business the Company realized a $1.2 million gain on its previously carried 40% equity interest in the EbixHealth JV. This recognized gain was reflected as a component of other non-operating income in the accompanying Condensed Consolidated Statement of Income. Beginning July 1, 2016 Ebix is fully consolidating the operations of the EbixHealth JV into the Company's financial statements and separately reporting the IHC minority, non-controlling, 49% interest in the joint venture's net income and equity, and thereby reflecting Ebix's net resulting 51% interest in the EbixHealth JV profits or losses. IHC is, also, a customer of the EbixHealth JV, and during the three and nine months ending September 30, 2018 the EbixHealth JV recognized $1.7 million and $6.4 million , respectively, of revenue from IHC, and as of September 30, 2018 the EbixHealth JV had $642 thousand of accounts receivable from IHC. Furthermore, as a related party, IHC also has been and continues to be a customer of Ebix, and during the three and nine months ending September 30, 2018 the Company recognized zero and zero revenue from IHC respectively, and as of September 30, 2018 IHC had $23 thousand of accounts receivable with Ebix. |
Capitalized Software Developmen
Capitalized Software Development Costs (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Capitalized Software Development Costs Disclosure [Abstract] | |
Research, Development, and Computer Software Disclosure [Text Block] | Capitalized Software Development Costs In accordance with the relevant authoritative accounting literature the Company has capitalized certain software and product related development costs associated with both the Company’s continuing medical education service offerings, and the Company’s development of its property and casualty underwriting insurance data exchange platform servicing the London markets. During the nine months ended September 30, 2018 and 2017, respectively, the Company capitalized $3.6 million and $2.1 million of such development costs. As of September 30, 2018 and December 31, 2017, a total of $10.0 million and $8.5 million , respectively, of remaining unamortized development costs are reported on the Company’s consolidated balance sheet. During the nine months ended September 30, 2018 and 2017, the Company recognized $1.6 million and $1.3 million , respectively, of amortization expense with regards to these capitalized software development costs, which is included in costs of services provided in the Company’s consolidated income statement. |
Other Current Assets (Notes)
Other Current Assets (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Other Current Assets Disclosure [Abstract] | |
Other Current Assets [Text Block] | Other Current Assets Other current assets at September 30, 2018 and December 31, 2017 consisted of the following: September 30, 2018 December 31, 2017 (Unaudited) (In thousands) Prepaid expenses $ 24,147 $ 29,347 Sales taxes receivable from customers — 2,218 Due from prior owners of acquired businesses for working capital settlements, etc... 1,346 284 Accrued interest receivable 247 515 Tax refunds receivable 5,035 — Credit card merchant account balance receivable 1,126 1,008 Other 898 160 Total $ 32,799 $ 33,532 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Concentration Risk [Line Items] | |
Concentration Risk Disclosure [Text Block] | Concentrations of Credit Risk Credit Risk The Company is potentially subject to concentrations of credit risk in its accounts receivable. Credit risk is the risk of an unexpected loss if a customer fails to meet its contractual obligations. Although the Company is directly affected by the financial condition of its customers and the loss of or a substantial reduction in orders or the ability to pay from the customer could have a material effect on the consolidated financial statements, management does not believe significant credit risks exist at September 30, 2018 . The Company had one customer whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable. Major Customer As previously disclosed in Note 8, effective February 7, 2016 Ebix and Vayam Technologies Ltd ("Vayam") formed a joint venture named Ebix Vayam Limited JV. This joint venture was established to carry out IT projects in the government sector of the country of India and particularly in regards to the implementation of e-governance projects in the areas of education and healthcare. Ebix has a 51% equity interest in the joint venture, and Vayam has a 49% equity interest in the joint venture. Ebix is fully consolidating the operations of the Ebix Vayam Limited JV into the Company's financial statements and separately reporting the Vayam minority, non-controlling, interest in the joint venture's net income and equity. Vayam is also a customer of the Ebix Vayam Limited JV, and during the three months ending September 30, 2018 and 2017 the Ebix Vayam Limited JV recognized $2.6 million and $6.0 million of revenue from Vayam, respectively. During the nine months ending September 30, 2018 and 2017 the Ebix Vayam Limited JV recognized $12.8 million and $16.5 million of revenue from Vayam, respectively and as of September 30, 2018 the Ebix Vayam Limited JV had $35.1 million of accounts receivable with Vayam. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | Note 12: Subsequent Events Repurchases of Common Stock Subsequent to September 30, 2018 and through November 9, 2018 the Company has re-purchased an additional 243,651 shares of its outstanding common stock for aggregate cash consideration in the amount of $14.0 million and at an average rate of $57.60 per share. All share repurchases were done in accordance with Rule 10b-18 of the Securities Act of 1934 as to the timing, pricing, and volume of such transactions, and were funded from available cash resources, cash generated from the Company's operating activities and draws from the Company's revolving line of credit with our syndicated commercial banking facility. Acquisitions On October 23, 2018 the Company announced that one of its India-based EbixCash subsidiaries has acquired a 67 percent stake in Routier, a Delhi-based B2B Marketplace for Trucking Logistics for approximately $400 thousand . Routier is pioneering a cloud based technology to change the way people move and receive inland goods in India. On October 22, 2018 Company announced that it decided to further invest in the growth of its B2B business by acquiring the assets of travel company Business Travels Private Limited for approximately $1.1 million . Stock Split Ebix is holding a special meeting of shareholders on November 16, 2018 to approve an amendment to the Company’s certificate of incorporation to increase the number of authorized common shares. The increase is required to effect a five-for-one split of the Company’s common stock which has been approved by Ebix’s Board of Directors, subject to shareholder approval of the amendment. Provided shareholders approve the amendment, the Company plans to set a record date for the stock split, and thereafter shareholders of record on such date will receive four additional shares of common stock for each share of common stock held on the record date. Assuming shareholder approval, trading is expected to begin on a split-adjusted basis prior to December 15, 2018. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation— The accompanying unaudited condensed consolidated financial statements and these notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the effect of inter-company balances and transactions eliminated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP and SEC rules have been condensed or omitted as permitted by and pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements contain adjustments (consisting only of normal recurring items) necessary to fairly present the consolidated financial position of the Company and its consolidated results of operations and cash flows. Operating results for the nine months ended September 30, 2018 and 2017 are not necessarily indicative of the results that may be expected for future quarters or the full year of 2018. The condensed consolidated December 31, 2017 balance sheet included in this interim period filing has been derived from the audited financial statements at that date, but does not necessarily include all of the information and related notes required by GAAP for complete financial statements. These condensed interim financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments— The Company follows the relevant GAAP guidance concerning fair value measurements which provides a consistent framework to define, measure, and disclose the fair value of assets and liabilities in financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction. This guidance establishes a three-level hierarchy priority for disclosure of assets and liabilities recorded at fair value. The ordering of priority reflects the degree to which objective data from external active markets are available to measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. The classifications are as follows: • Level 1 Inputs - Unadjusted quoted prices available in active markets for identical investments to the reporting entity at the measurement date. • Level 2 Inputs - Other than quoted prices included in Level 1 inputs, which are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs - Unobservable inputs, which are used to the extent that observable inputs are not available, and used in situations where there is little or no market activity for the asset or liability and wherein the reporting entity makes estimates and assumptions related to the pricing of the asset or liability including assumptions regarding risk. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As of September 30, 2018 , the Company had the following financial instruments to which it had to consider fair values and had to make fair value assessments: • Short-term investments (commercial bank certificates of deposits and mutual funds), for which the fair values are measured as a Level 1 instrument. • Contingent accrued earn-out business acquisition consideration liabilities for which fair values are measured as Level 3 instruments. These contingent consideration liabilities were recorded at fair value on the acquisition date and are re-measured quarterly based on the then assessed fair value and adjusted if necessary. The increases or decreases in the fair value of contingent consideration payable can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3. |
Revenue Recognition | Revenue Recognition— |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets— Goodwill represents the cost in excess of the fair value of the net assets of acquired businesses. Indefinite-lived intangible assets represent the fair value of certain acquired contractual customer relationships for which future cash flows are expected to continue indefinitely. In accordance with the relevant FASB accounting guidance, goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment at the reporting unit level on an annual basis or on an interim basis if an event occurs or circumstances change that would likely have reduced the fair value of a reporting unit below its carrying value. Potential impairment indicators include a significant change in the business climate, legal factors, operating performance indicators, competition, and the sale or disposition of a significant portion of the business. The impairment evaluation process involves an assessment of certain qualitative factors to determine whether the existence of events or circumstances would indicate that it is more likely than not that the fair value of any of our reporting units was less than its carrying amount. If after assessing the totality of events or circumstances, we were to determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company would not perform the two-step quantitative impairment testing described further below. The aforementioned two-step quantitative testing process involves comparing the reporting unit carrying values to their respective fair values; we determine fair value of our reporting units by applying the discounted cash flow method using the present value of future estimated net cash flows. If the fair value of a reporting unit exceeds its carrying value, then no further testing is required. However, if a reporting unit's fair value were to be less than its carrying value, we would then determine the amount of the impairment charge, if any, which would be the amount that the carrying value of the reporting unit's goodwill exceeded its implied value. Projections of cash flows are based on our views of growth rates, operating costs, anticipated future economic conditions and the appropriate discount rates relative to risk and estimates of residual values. We believe that our estimates are consistent with assumptions that marketplace participants would use in their estimates of fair value. The use of different estimates or assumptions for our projected discounted cash flows (e.g., growth rates, future economic conditions, discount rates and estimates of terminal values) when determining the fair value of our reporting units could result in different values and may result in a goodwill impairment charge. In 2017 the goodwill residing in the Exchange reporting unit, the RCS reporting unit, and the Carrier reporting unit were evaluated for impairment using step-one of the quantitative testing process described above. The fair value of all three of these reporting units were found to be greater than their carrying value and,therefore, step-two of the quantitative testing process described above became unnecessary because no impairment was indicated. In specific regards to the RCS reporting unit, its assessed fair value was $158.0 million which was $42.4 million or 36.7% in excess of its $115.6 million carrying value. Key assumptions used in the fair value determination were annual revenue growth of 7.5% to 12.5% and discount rate of 16% . As of September 30, 2017 there was $78.2 million of goodwill assigned to the RCS reporting unit. A significant reduction in future revenues for the RCS reporting unit would negatively affect the fair value determination for this unit and may result in an impairment to goodwill and a corresponding charge against earnings. We perform our annual goodwill impairment evaluation and testing as of September 30th of each year. This evaluation is performed during the fourth quarter each year. During the year ended December 31, 2017 we had no impairment of our reporting unit goodwill balances. |
Finite-lived Intangible Assets | Finite-lived Intangible Assets— Purchased intangible assets represent the estimated acquisition date fair value of customer relationships, developed technology, trademarks and non-compete agreements obtained in connection with the businesses we acquire. We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows: Category Life (yrs) Customer relationships 7–20 Developed technology 3–12 Dealer networks 15-20 Trademarks 3–15 Non-compete agreements 5 Backlog 1.2 Database 10 |
Foreign Currency Translation | Foreign Currency Translation— The functional currency for the Company's foreign subsidiaries in India, Dubai, and Singapore is the U.S. dollar because the intellectual property research and development activities provided by its Dubai and Singapore subsidiaries, and the product development and information technology enabled services activities for the insurance industry provided by its India subsidiary, both in support of the Company's operating divisions across the world, are transacted in U.S. dollars. The functional currency of the Company's other foreign subsidiaries is the local currency of the country in which the subsidiary operates. The assets and liabilities of these foreign subsidiaries are translated into U.S. dollars at the rates of exchange at the balance sheet dates. Income and expense accounts are translated at the average exchange rates in effect during the period. Gains and losses resulting from translation adjustments are included as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets, and are included in the condensed consolidated statements of comprehensive income. Foreign exchange transaction gains and losses that are derived from transactions denominated in a currency other than the subsidiary's functional currency are included in the determination of net income. |
Income Taxes | Income Taxes— Deferred income taxes are recorded to reflect the estimated future tax effects of differences between the financial statement and tax basis of assets, liabilities, operating losses, and tax credit carry forwards using the tax rates expected to be in effect when the temporary differences reverse. Valuation allowances, if any, are recorded to reduce deferred tax assets to the amount management considers more likely than not to be realized. Such valuation allowances are recorded for the portion of the deferred tax assets that are not expected to be realized based on the levels of historical taxable income and projections for future taxable income over the periods in which the temporary differences will be deductible. The Company also applies the relevant FASB accounting guidance on accounting for uncertainty in income taxes positions. This guidance clarifies the accounting for uncertainty in income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. In this regard we recognize the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. |
Recent Relevant Accounting Pronouncements | Recent Relevant Accounting Pronouncements— The following is a brief discussion of recently released accounting pronouncements that are pertinent to the Company's business: In August 2018 the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 is intended to improve the effectiveness of ASC 820’s disclosure requirements. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. The Company has yet to assess the impact that the adoption of this ASU will have on Ebix's consolidated income statement and balance sheet. In June 2018 the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting . ASU 2018-07 is intended to reduce cost and complexity and to improve financial reporting for share-based payments to nonemployees. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has yet to assess the impact that the adoption of this ASU will have on Ebix's consolidated income statement and balance sheet. In February 2018, the FASB issued 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU provides that the stranded tax effects from the Tax Act in accumulated other comprehensive loss may be reclassified to retained earnings. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company has yet to assess the impact that the adoption of this ASU will have on Ebix's consolidated income statement and balance sheet. In January 2017 the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities). Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. A public business entity filer should adopt the amendments in this ASU for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company has yet to assess the impact that the adoption of this ASU will have on Ebix's consolidated income statement and balance sheet. In January 2017 the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business which amended the existing FASB ASC. The standard provides additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting, including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 is effective for fiscal 2019 with early adoption permitted. The Company has yet to assess the impact that the adoption of this ASU will have on Ebix's consolidated income statement and balance sheet In November 2016 the FASB issued ASU 2016-18, Statement of Cash Flow (Topic 230) Restricted Cash (A Consensus of the FASB Emerging Issues Task Force) which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments in this ASU should be applied using a retrospective transition method to each period presented. The Company adopted the new guidance on January 1, 2018 with no material impact to its statement of cash flows. For the nine months ended September 30, 2018 and 2017, the Company held zero and $11.2 million , respectively, in "Restricted cash" and $2.5 million and $3.1 million , respectively, in "Other long-term assets" of the Company's Condensed Consolidated Balance Sheet. In October 2016 the FASB issued ASU 2016-16, Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. This prohibition on recognition is an exception to the principle of comprehensive recognition of current and deferred income taxes in GAAP. The amendments specified by ASU 2016-16 require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments eliminate the exception for an intra-entity transfer of an asset other than inventory. Two common examples of assets included in the scope of the amendments are intellectual property, and property, plant and equipment. The amendments do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The amendments align the recognition of income tax consequences for intra-entity transfers of assets other than inventory with International Financial Reporting Standards. IAS 12, Income Taxes, requires recognition of current and deferred income taxes resulting from an intra-entity transfer of any asset (including inventory) when the transfer occurs. The amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities in the first interim period if an entity issues interim financial statements. The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted the new guidance on January 1, 2018 with no material impact to its consolidated financial statements. In August 2016 the FASB issued ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This ASU addresses the following eight specific cash flow issues: Contingent consideration payments made after a business combination; distributions received from equity method investees; debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies and bank-owned life insurance policies; and beneficial interests in securitization transactions; and also addresses separately identifiable cash flows and application of the predominance principle. The amendments in this ASU apply to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the ASU for those issuers would be applied prospectively as of the earliest date practicable. The Company adopted the new guidance on January 1, 2018 with no material impact to its consolidated financial statements. In February 2016 the FASB issued ASU 2016-02, Leases (Topic 842 ). This new accounting guidance is intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. The ASU will require organizations that lease assets referred to as “Lessees” to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. An organization is to provide disclosures designed to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements concerning additional information about the amounts recorded in the financial statements. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet the new ASU will require both types of leases (i.e., operating and capital) to be recognized on the balance sheet. The FASB lessee accounting model will continue to account for both types of leases. The capital lease will be accounted for in substantially the same manner as capital leases are accounted for under existing GAAP. For operating leases there will have to be the recognition of a lease liability and a lease asset for all such leases greater than one year in term. Public companies will be required to adopt the new leasing standard for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all companies and organizations. For calendar year-end public companies, this means an adoption date of January 1, 2019 and retrospective application to previously issued annual and interim financial statements for 2018 and 2017. Lessees with a large portfolio of leases are likely to see a significant increase in balance sheet assets and liabilities. See Note 5 for the Company’s current lease commitments. The Company is evaluating the impact that this new leasing ASU will have on its financial statements. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block] | Impact of New Revenue Recognition Standard on Financial Statement Line Items The cumulative effect of applying Topic 606 to all contracts was recorded as an adjustment to retained earnings as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to accounts on the condensed consolidated balance sheet as of January 1, 2018: Impact of Change in Accounting Policy (In thousands) As Reported December 31, 2017 Adjustments Adjusted January 1, 2018 Other Current Assets $ 33,532 $ 898 $ 34,430 Current Assets 252,932 898 253,830 Deferred tax asset, net 43,529 2,843 46,372 Other Assets 11,720 1,502 13,222 Total Assets 1,113,013 5,243 1,118,256 Current Deferred Revenue 22,562 5,124 27,686 Current Liabilities 146,932 5,124 152,056 Long Term Deferred Revenue 1,423 8,921 10,344 Total Liabilities 579,254 14,045 593,299 Retained Earnings 510,975 (8,802 ) 502,173 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following tables present the impact of adopting Topic 606 on the Company’s unaudited consolidated financial statements as of and for the three and nine months ended September 30, 2018 : Impact of Change in Accounting Policy As Reported Three Months Ended September 30, 2018 Adjustments Balances without adoption of Topic 606 Condensed Consolidated Statement of Income (In thousands) Operating Revenue $ 128,643 $ 32 $ 128,675 Costs of Services Provided 42,963 (2 ) 42,961 Total Operating Expenses 89,405 (2 ) 89,403 Operating Income 39,238 34 39,272 Income before income taxes 30,960 34 30,994 Income tax (expense) benefit (1,679 ) (8 ) (1,687 ) Net income including non-controlling interest 29,281 26 29,307 Net income attributable to Ebix, Inc. 29,242 26 29,268 Basic earnings per common share attributable to Ebix, Inc. 0.93 — 0.93 Diluted Earnings per common share attributable to Ebix, Inc. 0.92 — 0.92 As Reported Nine Months Ended September 30, 2018 Adjustments Balances without adoption of Topic 606 Condensed Consolidated Statement of Income (In thousands) Operating Revenue $ 361,499 $ (592 ) $ 360,907 Costs of Services Provided 126,113 (122 ) 125,991 Total Operating Expenses 250,050 (122 ) 249,928 Operating Income 111,449 (470 ) 110,979 Income before income taxes 90,835 (470 ) 90,365 Income tax (expense) benefit (6,027 ) 115 (5,912 ) Net income including non-controlling interest 84,808 (355 ) 84,453 Net income attributable to Ebix, Inc. 84,630 (355 ) 84,275 Basic earnings per common share attributable to Ebix, Inc. 2.69 (0.01 ) 2.68 Diluted Earnings per common share attributable to Ebix, Inc. 2.67 (0.01 ) 2.66 As Reported September 30, 2018 Adjustments Balances without adoption of Topic 606 Condensed Consolidated Balance Sheet (In thousands) Other current assets $ 32,799 $ (843 ) $ 31,956 Total current assets 348,692 (843 ) 347,849 Deferred tax asset, net 44,656 (2,056 ) 42,600 Other assets 30,546 (1,273 ) 29,273 Total assets 1,428,895 (4,172 ) 1,424,723 Current Deferred Revenue 30,174 (4,618 ) 25,556 Total current liabilities 222,912 (4,618 ) 218,294 Long Term Deferred Revenue 8,153 (6,866 ) 1,287 Total liabilities 887,305 (11,484 ) 875,821 Retained earnings 577,353 7,312 584,665 As Reported Nine Months Ended September 30, 2018 Adjustments Balances without adoption of Topic 606 Condensed Consolidated Statement of Cash Flows (In thousands) Net income attributable to Ebix, Inc. $ 84,630 $ (355 ) $ 84,275 Other assets (655 ) (122 ) (777 ) Deferred Revenue (10,772 ) 2,561 (8,211 ) Net cash provided by operating activities 74,165 2,084 76,249 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Disaggregation of Revenue The following tables present revenue disaggregated by primary geographical regions and product channels for the three months and nine months ended September 30, 2018 : Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (In thousands) Revenue: 2018 2017 (1) 2018 2017 (1) United States 48,395 52,603 $ 146,697 $ 157,682 Canada 1,267 1,827 4,323 5,969 Latin America 4,586 6,268 15,141 14,486 Australia 8,576 8,575 26,803 25,091 Singapore* 1,731 1,368 5,871 4,493 New Zealand 454 462 1,467 1,485 India* 56,631 17,509 139,985 37,508 Europe 3,854 4,188 11,726 12,576 United Arab Emirates* 319 — 694 — Indonesia* 1,683 — 5,052 — Philippines* 1,147 — 3,740 — $ 128,643 $ 92,800 $ 361,499 $ 259,290 *India led businesses, except for portion of Singapore which is not part of EbixCash. Total revenue in the third quarter of 2018 was $60.3 million. See Note 7 for additional geographic information |
Schedule of Revenue by Product/Service Groups | Presented in the table below is the breakout of our revenue streams for each of those product/service channels for the three months ended September 30, 2018 and 2017 . Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2018 2017 2018 2017 Exchanges $ 106,853 $ 64,130 $ 290,292 $ 177,117 Broker Systems 3,414 3,715 10,720 11,098 Risk Compliance Solutions (“RCS”) 18,066 24,265 59,340 68,780 Carrier Systems 310 690 1,147 2,295 Totals $ 128,643 $ 92,800 $ 361,499 $ 259,290 Three Months Ended Nine Months Ended September 30 September 30 (In thousands) 2018 2017 (1) 2018 2017 Exchanges $ 106,853 $ 64,130 $ 290,292 $ 177,117 Broker Systems 3,414 3,715 10,720 11,098 RCS 18,066 24,265 59,340 68,780 Carrier Systems 310 690 1,147 2,295 Totals $ 128,643 $ 92,800 $ 361,499 $ 259,290 (1) Prior period amounts have not been adjusted under the modified retrospective method. |
Capitalized Contract Cost [Table Text Block] | Costs to Obtain and Fulfill a Contract The Company capitalizes certain costs in order to maintain the ability to obtain and fulfill new contracts and contract renewals. These costs are primarily related to the setup and customization of our SaaS based platforms and such costs are amortized over the benefit period. Under our treatment prior to implementing Topic 606, these costs were expensed as incurred. As of September 30, 2018 , the Company had $844 thousand of contract costs in “Other current assets” and $1.3 million in “Other Assets” on the Company's Condensed Consolidated Balance Sheets. (In thousands) September 30, 2018 Balance, beginning of period $ — Topic 606 adjustment 2,401 Adjusted beginning balance $ 2,401 Costs recognized from adjusted beginning balance (686 ) Additions, net of costs recognized 402 Balance, end of period $ 2,117 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Additional information regarding the Company's assets and liabilities that are measured at fair value on a recurring basis is presented in the following tables: Fair Values at Reporting Date Using* Descriptions Balance, September 30, 2018 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets Commercial bank certificates of deposits ($2.86 million is recorded in the long term asset section of the consolidated balance sheets in "Other Assets") $ 23,342 $ 23,342 $ — $ — Mutual Funds (recorded in the long term asset section of the consolidated balance sheets in "Other Assets") 9,668 9,668 — — Total assets measured at fair value $ 33,010 $ 33,010 $ — $ — Liabilities Derivatives: Contingent accrued earn-out acquisition consideration (a) $ 29,285 $ — $ — $ 29,285 Total liabilities measured at fair value $ 29,285 $ — $ — $ 29,285 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments. * During the three and nine months ended September 30, 2018 there were no transfers between fair value Levels 1, 2 or 3. Fair Values at Reporting Date Using* Descriptions Balance, December 31, 2017 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) Assets Commercial bank certificates of deposits ($2.19 million is recorded in the long term asset section of the consolidated balance sheets in "Other Assets") $ 22,293 22,293 $ — $ — Mutual Funds ($785 thousand recorded in the long term asset section of the consolidated balance sheets in "Other Assets") 6,278 6,278 — — Total assets measured at fair value $ 28,571 $ 28,571 $ — $ — Liabilities Derivatives: Contingent accrued earn-out acquisition consideration (a) $ 37,096 $ — $ — $ 37,096 Total liabilities measured at fair value $ 37,096 $ — $ — $ 37,096 (a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments. * During the twelve months ended December 31, 2017 there were no transfers between fair value Levels 1, 2 or 3. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the nine months ended September 30, 2018 and during the year ended December 31, 2017 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Liability for Accrued Earn-out Acquisition Consideration September 30, 2018 December 31, 2017 (In thousands) Beginning balance $ 37,096 $ 8,510 Total remeasurement adjustments: Gains included in earnings ** (645 ) (164 ) Reductions recorded against goodwill (13,718 ) (4,007 ) Foreign currency translation adjustments *** (2,843 ) 522 Acquisitions and settlements Business acquisitions 13,226 34,156 Settlement payments (3,831 ) (1,921 ) Ending balance $ 29,285 $ 37,096 The amount of total (gains) losses for the period included in earnings or changes to net assets, attributable to changes in unrealized gains relating to assets or liabilities still held at period-end. $ (645 ) $ — ** recorded as a reduction to reported general and administrative expenses *** recorded as a component of other comprehensive income within stockholders' equity |
Quantitative Information about Level 3 Fair Value Measurements | The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows: (In thousands) Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Input Contingent acquisition consideration: (Wdev, ItzCash, Indus, and Miles acquisition) $29,285 Discounted cash flow Projected revenue and probability of achievement (In thousands) Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Input Contingent acquisition consideration: (Wdev and ItzCash acquisition) $37,096 Discounted cash flow Projected revenue and probability of achievement |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the nine months ended September 30, 2018 and the year ended December 31, 2017 are reflected in the following table. September 30, 2018 December 31, 2017 (Unaudited) (In thousands) Beginning Balance $ 666,863 $ 441,404 Additions (see Note 3) 261,428 233,095 Purchase accounting adjustments (12,745 ) (12,158 ) Foreign currency translation adjustments (45,235 ) 4,522 Ending Balance $ 870,311 $ 666,863 |
Schedule of Finite-Lived Intangible Assets by Major Class, Estimated Useful Lives | We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows: Category Life (yrs) Customer relationships 7–20 Developed technology 3–12 Dealer networks 15-20 Trademarks 3–15 Non-compete agreements 5 Backlog 1.2 Database 10 |
Schedule of Intangible Assets, Excluding Goodwill | The carrying value of finite-lived and indefinite-lived intangible assets at September 30, 2018 and December 31, 2017 are as follows: September 30, December 31, (Unaudited) (In thousands) Finite-lived intangible assets: Customer relationships $ 72,665 $ 73,725 Developed technology 16,613 15,076 Dealer network 5,496 10,581 Trademarks 3,169 2,698 Non-compete agreements 764 764 Backlog 140 140 Database 212 212 Total intangibles 99,059 103,196 Accumulated amortization (62,111 ) (57,485 ) Finite-lived intangibles, net $ 36,948 $ 45,711 Indefinite-lived intangibles: Customer/territorial relationships $ 42,055 $ 42,055 |
Deferred Revenue Disclosure [Text Block] | Deferred Revenue The Company records deferred revenue when it receives payments or invoices in advance of the performance of services. A significant portion of this balance relates to contracts where the customer has paid in advance for the use of our SaaS platforms over a specified period of time. This portion is recognized as the related performance obligation is fulfilled (generally less than one year). The remaining portion of the deferred revenue balance consists primarily of customer-specific customizations that are not distinct from related performance obligations that transfer over time. This portion is recognized over the expected useful life of the customizations. (In thousands) September 30, 2018 Balance, beginning of period $ 23,985 Topic 606 adjustment 14,045 Adjusted beginning balance $ 38,030 Revenue recognized from adjusted beginning balance (26,902 ) Additions from business acquisitions 12,223 Additions, net of revenue recognized and currency translation 14,976 Balance, end of period $ 38,327 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Diluted | A reconciliation between basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (In thousands, except per share data) Net income attributable to Ebix, Inc. $ 29,242 $ 24,184 $ 84,630 $ 74,045 Basic Weighted Average Shares Outstanding 31,492 31,453 31,480 31,582 Dilutive effect of stock options and restricted stock awards 136 169 158 161 Diluted weighted average shares outstanding 31,628 31,622 31,638 31,743 Basic earnings per common share $ 0.93 $ 0.77 $ 2.69 $ 2.34 Diluted earnings per common share $ 0.92 $ 0.76 $ 2.67 $ 2.33 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 As Reported Pro Forma As Reported Pro Forma As Reported Pro Forma As Reported Pro Forma (unaudited) (unaudited) (unaudited) (unaudited) (In thousands, except per share data) Revenue $ 128,643 $ 129,081 $ 92,800 $ 141,057 $ 361,499 $ 401,295 $ 259,290 $ 425,413 Net Income attributable to Ebix, Inc. $ 29,242 $ 29,097 $ 24,184 $ 26,434 $ 84,630 $ 86,742 $ 74,045 $ 86,060 Basic EPS $ 0.93 $ 0.92 $ 0.77 $ 0.84 $ 2.69 $ 2.76 $ 2.34 $ 2.72 Diluted EPS $ 0.92 $ 0.92 $ 0.76 $ 0.84 $ 2.67 $ 2.74 $ 2.33 $ 2.71 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Locations | The following enterprise-wide information relates to the Company's geographic locations: As of and for the Nine Months Ended September 30, 2018 As of and for the Nine Months Ended September 30, 2017 External Revenues Long-lived assets External Revenues Long-lived assets (In thousands) United States $ 146,697 $ 393,066 $ 157,682 $ 390,950 Canada 4,323 6,265 5,969 6,674 Latin America 15,141 18,338 14,486 23,919 Australia 26,803 1,605 25,091 1,273 Singapore* 5,871 19,054 4,493 17,427 New Zealand 1,467 267 1,485 251 India* 139,985 561,966 37,508 268,449 Europe 11,726 24,852 12,576 22,613 United Arab Emirates* 694 54,252 — 53,602 Indonesia* 5,052 64 — — Philippines* 3,740 474 — — $ 361,499 $ 1,080,203 $ 259,290 $ 785,158 *India led businesses, except for portion of Singapore which is not part of EbixCash and United Arab Emirate long-lived assets pertain to intellectual property research and development activities located in Dubai which is not part of EbixCash either. Total revenue in the third quarter of 2018 for India led businesses was $60.3 million. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Current Assets Disclosure [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | Other current assets at September 30, 2018 and December 31, 2017 consisted of the following: September 30, 2018 December 31, 2017 (Unaudited) (In thousands) Prepaid expenses $ 24,147 $ 29,347 Sales taxes receivable from customers — 2,218 Due from prior owners of acquired businesses for working capital settlements, etc... 1,346 284 Accrued interest receivable 247 515 Tax refunds receivable 5,035 — Credit card merchant account balance receivable 1,126 1,008 Other 898 160 Total $ 32,799 $ 33,532 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Segment Reporting) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)ProductService_Groups | Sep. 30, 2017USD ($) | |
Accounting Policies [Abstract] | ||||
Total revenue, international percentage | 59.40% | 39.20% | ||
Number of product/service groups | ProductService_Groups | 4 | |||
Segment Reporting Information [Line Items] | ||||
Operating revenue | $ 128,643 | $ 92,800 | $ 361,499 | $ 259,290 |
Exchanges [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 106,853 | 64,130 | 290,292 | 177,117 |
Broker Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 3,414 | 3,715 | 10,720 | 11,098 |
RCS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 18,066 | 24,265 | 59,340 | 68,780 |
Carrier Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | $ 310 | $ 690 | $ 1,147 | $ 2,295 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Assets [Abstract] | |||
Total assets measured at fair value | [1] | $ 33,010 | $ 28,571 |
Liabilities [Abstract] | |||
Total liabilities measured at fair value | [1] | 29,285 | 37,096 |
Fair Value, Inputs, Level 1 [Member] | |||
Assets [Abstract] | |||
Total assets measured at fair value | [1] | 33,010 | 28,571 |
Fair Value, Inputs, Level 2 [Member] | |||
Liabilities [Abstract] | |||
Total liabilities measured at fair value | [1] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | |||
Liabilities [Abstract] | |||
Total liabilities measured at fair value | [1] | 29,285 | 37,096 |
Contingent accrued earn-out acquisition consideration [Member] | |||
Liabilities [Abstract] | |||
Derivative liabilities | [1],[2] | 29,285 | 37,096 |
Contingent accrued earn-out acquisition consideration [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Liabilities [Abstract] | |||
Derivative liabilities | [1],[2] | 29,285 | 37,096 |
Certificates of Deposit [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities | 23,342 | 22,293 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities | 23,342 | 22,293 | |
Mutual Fund [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities | 9,668 | 6,278 | |
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities | 9,668 | 6,278 | |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities | 2,860 | 2,190 | |
Mutual Fund [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale Securities | $ 9,668 | $ 785 | |
[1] | months ended September 30, 2018 and the year ended December 31, 2017 there were no transfers between fair value levels 1, 2, or 3. | ||
[2] | The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments. |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies (Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation: | ||||
Beginning balance | $ 37,096,000 | $ 8,510,000 | $ 8,510,000 | |
(Gains) or losses included in earnings | [1] | (645,000) | (164,000) | |
Goodwill, Translation and Purchase Accounting Adjustments | [1] | (13,718,000) | $ (3,432,000) | (4,007,000) |
Foreign currency translation adjustments | [2] | (2,843,000) | 522,000 | |
Business acquisitions | 13,226,000 | 34,156,000 | ||
Settlements | (3,831,000) | (1,921,000) | ||
Ending balance | 29,285,000 | 37,096,000 | ||
The amount of total (gains) losses for the period included in earnings or changes to net assets, attributable to changes in unrealized gains relating to assets or liabilities still held at period-end. | $ (645,000) | $ 0 | ||
[1] | Recorded as an adjustment to reported general and administrative expenses | |||
[2] | Recorded as a component of other comprehensive income within stockholders' equity |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies (Fair Value Textuals) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Liability | $ 29,285 | $ 37,096 | $ 8,510 |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies (Accounts Receivables and Allowances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | $ 153,171 | $ 153,171 | $ 117,838 | ||
Allowance for doubtful accounts | 6,382 | 6,382 | $ 4,143 | ||
Deferred revenue included in accounts receivables | 5,300 | 5,300 | |||
Provision for doubtful accounts | 524 | $ 385 | 2,622 | $ 1,107 | |
Allowance for Doubtful Accounts Receivable, Write-offs | 332 | $ 513 | |||
Billed Revenues [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | 111,000 | 111,000 | |||
Unbilled Revenues [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | $ 42,200 | $ 42,200 |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies (Goodwill) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | |
Business Combination Segment Allocation [Line Items] | |||
Goodwill | $ 666,863 | $ 441,404 | $ 666,863 |
Goodwill [Roll Forward] | |||
Beginning Balance | 666,863 | 441,404 | |
Goodwill, Acquired During Period | 261,428 | 233,095 | |
Goodwill, Purchase Accounting Adjustments | (12,745) | (12,158) | |
Foreign currency translation adjustments | (45,235) | 4,522 | |
Ending Balance | 870,311 | 666,863 | |
RCS [Member] | |||
Business Combination Segment Allocation [Line Items] | |||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 42,400 | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 37.00% | ||
Reporting Unit, Assessed Fair Value | $ 158,000 | ||
Reporting Unit, Carrying Value | 115,600 | ||
Goodwill | 78,200 | $ 78,200 | $ 78,200 |
Fair Value Input, Discount Rate | 16.00% | ||
Goodwill [Roll Forward] | |||
Beginning Balance | $ 78,200 | ||
Ending Balance | $ 78,200 | ||
Minimum [Member] | RCS [Member] | |||
Business Combination Segment Allocation [Line Items] | |||
Fair Value Input, Long-term Revenue Growth Rate | 7.50% | ||
Maximum [Member] | RCS [Member] | |||
Business Combination Segment Allocation [Line Items] | |||
Fair Value Input, Long-term Revenue Growth Rate | 12.50% |
Description of Business and _10
Description of Business and Summary of Significant Accounting Policies Advertising Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Advertising Costs [Abstract] | ||
Advertising Expense | $ 6,200 | $ 4,400 |
Capitalized Direct Response Advertising Costs [Line Items] | ||
Capital Direct Response Advertising, Amortization | $ 3,000 | |
Minimum [Member] | ||
Capitalized Direct Response Advertising Costs [Line Items] | ||
Capitalized Direct Response Advertising Costs, Amortization Period | 12 months | |
Maximum [Member] | ||
Capitalized Direct Response Advertising Costs [Line Items] | ||
Capitalized Direct Response Advertising Costs, Amortization Period | 24 months | |
ASC 340-40 [Member] | ||
Capitalized Direct Response Advertising Costs [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | (625) | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (1,932) |
Description of Business and _11
Description of Business and Summary of Significant Accounting Policies Recent Relevant Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Unrecognized tax benefit netted against a deferred tax asset for a net operating loss carryforward | $ (341) | $ (341) |
Description of Business and _12
Description of Business and Summary of Significant Accounting Policies Reclassification (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Funds Held for Clients | $ 7,254 | $ 8,035 |
Description of Business and _13
Description of Business and Summary of Significant Accounting Policies (Finite-lived Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | $ 99,059 | $ 99,059 | $ 103,196 | ||
Finite-lived intangible assets, accumulated amortization | (62,111) | (62,111) | (57,485) | ||
Finite-lived intangible assets, net | 36,948 | 36,948 | 45,711 | ||
Amortization of Acquired Intangible Assets | 1,600 | $ 1,800 | 5,200 | $ 5,400 | |
Customer Relationships [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 72,665 | $ 72,665 | 73,725 | ||
Customer Relationships [Member] | Minimum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 7 years | ||||
Customer Relationships [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 20 years | ||||
Developed technology [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 16,613 | $ 16,613 | 15,076 | ||
Developed technology [Member] | Minimum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 3 years | ||||
Developed technology [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 12 years | ||||
Dealer Networks [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 5,496 | $ 5,496 | 10,581 | ||
Dealer Networks [Member] | Minimum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 15 years | ||||
Dealer Networks [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 20 years | ||||
Trademarks [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 3,169 | $ 3,169 | 2,698 | ||
Trademarks [Member] | Minimum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 3 years | ||||
Trademarks [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 15 years | ||||
Backlog [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 1 year 2 months | ||||
Non-compete agreements [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 764 | $ 764 | 764 | ||
Non-compete agreements [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 5 years | ||||
Backlog [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 140 | $ 140 | 140 | ||
Database [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible assets, gross | 212 | $ 212 | 212 | ||
Database [Member] | Maximum [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Finite-lived intangible asset, useful life | 10 years | ||||
Customer Relationships [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line items] | |||||
Indefinite-lived intangible assets | $ 42,055 | $ 42,055 | $ 42,055 |
Description of Business and _14
Description of Business and Summary of Significant Accounting Policies Cash, Cash Equivalents, and Restricted Cash Shown in the Statement of Cash Flows (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 134,987 | $ 63,895 | $ 96,734 | |
Restricted Cash and Cash Equivalents, Current | 0 | 4,040 | 11,219 | |
Restricted Cash, Noncurrent | 2,523 | 3,050 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 137,510 | $ 70,867 | $ 111,003 | $ 116,941 |
Description of Business and _15
Description of Business and Summary of Significant Accounting Policies Impact of Change in Accounting Policy (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other current assets | $ 32,799 | $ 33,532 |
Assets, Current | 348,692 | 252,932 |
Deferred tax asset, net | 44,656 | 43,529 |
Other assets | 30,546 | 11,720 |
Assets | 1,428,895 | 1,113,013 |
Deferred Revenue, Current | 30,174 | 22,562 |
Liabilities, Current | 222,912 | 146,932 |
Deferred Revenue, Noncurrent | 8,153 | 1,423 |
Liabilities | 887,305 | 579,254 |
Retained Earnings (Accumulated Deficit) | 577,353 | 510,975 |
Accounting Standards Update 2014-09 Adjustments | ||
Other current assets | (843) | 898 |
Assets, Current | (843) | 898 |
Deferred tax asset, net | (2,056) | 2,843 |
Other assets | (1,273) | 1,502 |
Assets | (4,172) | 5,243 |
Deferred Revenue, Current | (4,618) | 5,124 |
Liabilities, Current | (4,618) | 5,124 |
Deferred Revenue, Noncurrent | (6,866) | 8,921 |
Liabilities | (11,484) | 14,045 |
Retained Earnings (Accumulated Deficit) | $ 7,312 | (8,802) |
Balances with Adoption of ASC 606 | ||
Other current assets | 34,430 | |
Assets, Current | 253,830 | |
Deferred tax asset, net | 46,372 | |
Other assets | 13,222 | |
Assets | 1,118,256 | |
Deferred Revenue, Current | 27,686 | |
Liabilities, Current | 152,056 | |
Deferred Revenue, Noncurrent | 10,344 | |
Liabilities | 593,299 | |
Retained Earnings (Accumulated Deficit) | $ 502,173 |
Description of Business and _16
Description of Business and Summary of Significant Accounting Policies Impact of adopting Topic 606 on the Company’s unaudited consolidated financial statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Operating revenue | $ 128,643 | $ 92,800 | $ 361,499 | $ 259,290 | |
Cost of Goods and Services Sold | 42,963 | 34,937 | 126,113 | 91,056 | |
Operating Expenses | 89,405 | 64,889 | 250,050 | 179,150 | |
Operating Income (Loss) | 39,238 | 27,911 | 111,449 | 80,140 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 30,960 | 24,334 | 90,835 | 75,421 | |
Income tax expense | (1,679) | 204 | (6,027) | (363) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 29,281 | 24,538 | 84,808 | 75,058 | |
Net Income (Loss) Attributable to Parent | $ 29,242 | $ 24,184 | $ 84,630 | $ 74,045 | |
Basic earnings per common share | $ 0.93 | $ 0.77 | $ 2.69 | $ 2.34 | |
Diluted earnings per common share | $ 0.92 | $ 0.76 | $ 2.67 | $ 2.33 | |
Other current assets | $ 32,799 | $ 32,799 | $ 33,532 | ||
Assets, Current | 348,692 | 348,692 | 252,932 | ||
Deferred tax asset, net | 44,656 | 44,656 | 43,529 | ||
Other assets | 30,546 | 30,546 | 11,720 | ||
Assets | 1,428,895 | 1,428,895 | 1,113,013 | ||
Deferred Revenue, Current | 30,174 | 30,174 | 22,562 | ||
Liabilities, Current | 222,912 | 222,912 | 146,932 | ||
Deferred Revenue, Noncurrent | 8,153 | 8,153 | 1,423 | ||
Liabilities | 887,305 | 887,305 | 579,254 | ||
Retained Earnings (Accumulated Deficit) | 577,353 | 577,353 | 510,975 | ||
Increase (Decrease) in Other Operating Assets | 655 | $ (212) | |||
Deferred revenue | (10,772) | (3,160) | |||
Net Cash Provided by (Used in) Operating Activities | 74,165 | $ 50,198 | |||
Accounting Standards Update 2014-09 Adjustments | |||||
Operating revenue | 32 | (592) | |||
Cost of Goods and Services Sold | (2) | (122) | |||
Operating Expenses | (2) | (122) | |||
Operating Income (Loss) | 34 | (470) | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 34 | (470) | |||
Income tax expense | (8) | 115 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 26 | (355) | |||
Net Income (Loss) Attributable to Parent | $ 26 | $ (355) | |||
Basic earnings per common share | $ 0 | $ (0.01) | |||
Diluted earnings per common share | $ 0 | $ (0.01) | |||
Other current assets | $ (843) | $ (843) | 898 | ||
Assets, Current | (843) | (843) | 898 | ||
Deferred tax asset, net | (2,056) | (2,056) | 2,843 | ||
Other assets | (1,273) | (1,273) | 1,502 | ||
Assets | (4,172) | (4,172) | 5,243 | ||
Deferred Revenue, Current | (4,618) | (4,618) | 5,124 | ||
Liabilities, Current | (4,618) | (4,618) | 5,124 | ||
Deferred Revenue, Noncurrent | (6,866) | (6,866) | 8,921 | ||
Liabilities | (11,484) | (11,484) | 14,045 | ||
Retained Earnings (Accumulated Deficit) | 7,312 | 7,312 | $ (8,802) | ||
Increase (Decrease) in Other Operating Assets | 122 | ||||
Deferred revenue | 2,561 | ||||
Net Cash Provided by (Used in) Operating Activities | 2,084 | ||||
Balances without Adoption of ASC 606 | |||||
Operating revenue | 128,675 | 360,907 | |||
Cost of Goods and Services Sold | 42,961 | 125,991 | |||
Operating Expenses | 89,403 | 249,928 | |||
Operating Income (Loss) | 39,272 | 110,979 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 30,994 | 90,365 | |||
Income tax expense | (1,687) | (5,912) | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 29,307 | 84,453 | |||
Net Income (Loss) Attributable to Parent | $ 29,268 | $ 84,275 | |||
Basic earnings per common share | $ 0.93 | $ 2.68 | |||
Diluted earnings per common share | $ 0.92 | $ 2.66 | |||
Other current assets | $ 31,956 | $ 31,956 | |||
Assets, Current | 347,849 | 347,849 | |||
Deferred tax asset, net | 42,600 | 42,600 | |||
Other assets | 29,273 | 29,273 | |||
Assets | 1,424,723 | 1,424,723 | |||
Deferred Revenue, Current | 25,556 | 25,556 | |||
Liabilities, Current | 218,294 | 218,294 | |||
Deferred Revenue, Noncurrent | 1,287 | 1,287 | |||
Liabilities | 875,821 | 875,821 | |||
Retained Earnings (Accumulated Deficit) | $ 584,665 | 584,665 | |||
Increase (Decrease) in Other Operating Assets | 777 | ||||
Deferred revenue | (8,211) | ||||
Net Cash Provided by (Used in) Operating Activities | $ 76,249 |
Description of Business and _17
Description of Business and Summary of Significant Accounting Policies Revenue Recognition (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 128,643,000 | $ 92,800,000 | $ 361,499,000 | $ 259,290,000 |
Cost of Goods and Services Sold | 42,963,000 | 34,937,000 | 126,113,000 | 91,056,000 |
Revenue, Net, Increase (Decrease) | 35,843,000 | 102,209,000 | ||
Capitalized Contract Costs, net, Current | 844,000 | 844,000 | ||
Capitalized Contract Costs, net, Noncurrent | 1,300,000 | 1,300,000 | ||
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 48,395,000 | 52,603,000 | 146,697,000 | 157,682,000 |
Revenue, Net, Increase (Decrease) | (11,000,000) | |||
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 1,267,000 | 1,827,000 | 4,323,000 | 5,969,000 |
Revenue, Net, Increase (Decrease) | (1,600,000) | |||
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 4,586,000 | 6,268,000 | 15,141,000 | 14,486,000 |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 8,576,000 | 8,575,000 | 26,803,000 | 25,091,000 |
Revenue, Net, Increase (Decrease) | 1,700,000 | |||
SINGAPORE | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 1,731,000 | 1,368,000 | 5,871,000 | 4,493,000 |
New Zealand | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 454,000 | 462,000 | 1,467,000 | 1,485,000 |
India | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 56,631,000 | 17,509,000 | 139,985,000 | 37,508,000 |
Revenue, Net, Increase (Decrease) | 102,500,000 | |||
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 3,854,000 | 4,188,000 | 11,726,000 | 12,576,000 |
Dubai [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 319,000 | 0 | 694,000 | 0 |
INDONESIA | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 1,683,000 | 0 | 5,052,000 | 0 |
PHILIPPINES | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 1,147,000 | 0 | 3,740,000 | 0 |
Exchanges [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 106,853,000 | 64,130,000 | 290,292,000 | 177,117,000 |
Broker Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 3,414,000 | 3,715,000 | 10,720,000 | 11,098,000 |
RCS [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 18,066,000 | 24,265,000 | 59,340,000 | 68,780,000 |
Carrier Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 310,000 | $ 690,000 | 1,147,000 | $ 2,295,000 |
Accounting Standards Update 2014-09 Adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | 32,000 | (592,000) | ||
Cost of Goods and Services Sold | $ (2,000) | $ (122,000) |
Description of Business and _18
Description of Business and Summary of Significant Accounting Policies Deferred Revenue Rollforward (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue, beginning of period | $ 23,985 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Deferred Revenue | 14,045 |
Recognition of Deferred Revenue | (26,902) |
Deferred Revenue acquired in acquisition | 12,223 |
Deferred Revenue, Additions | 14,976 |
Deferred Revenue, end of period | $ 38,327 |
Description of Business and _19
Description of Business and Summary of Significant Accounting Policies Capitalized Contract Costs (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Deferred Contract Costs [Roll Forward] | |
Capitalized Contract Cost, Net, beginning of period | $ 0 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Capitalized Contract Costs | 2,401 |
Capitalized Contract Cost, Amortization | (686) |
Capitalized Contract Costs, net additions | 402 |
Capitalized Contract Cost, Net, end of period | $ 2,117 |
Earnings per Share (Reconciliat
Earnings per Share (Reconciliation between Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income for basic and diluted earnings per share | $ 29,242 | $ 24,184 | $ 84,630 | $ 74,045 |
Basic weighted average shares outstanding | 31,492 | 31,453 | 31,480 | 31,582 |
Dilutive effect of stock options and restricted stock awards | 136 | 169 | 158 | 161 |
Diluted weighted average shares outstanding | 31,628 | 31,622 | 31,638 | 31,743 |
Basic earnings per common share | $ 0.93 | $ 0.77 | $ 2.69 | $ 2.34 |
Diluted earnings per common share | $ 0.92 | $ 0.76 | $ 2.67 | $ 2.33 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ in Thousands | Aug. 01, 2018USD ($) | Jul. 01, 2018USD ($) | Apr. 01, 2018USD ($) | Feb. 01, 2018USD ($) | Nov. 01, 2017USD ($) | Oct. 01, 2017USD ($) | Sep. 01, 2017USD ($) | Jun. 01, 2017USD ($) | Apr. 01, 2017USD ($) | Jul. 02, 2016USD ($) | Sep. 02, 2015USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Companies | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)Companies | Dec. 31, 2016USD ($) | Jul. 01, 2016 | Sep. 01, 2015 | |
Business Acquisition [Line Items] | ||||||||||||||||||||
Recognized controlling ownership of joint venture | $ 2,292 | |||||||||||||||||||
Non-operating income, gain on joint venture investment (see Note 8) | $ 7 | $ 0 | $ 60 | $ 0 | $ 1,162 | |||||||||||||||
Number of Businesses Acquired | Companies | 7 | 6 | ||||||||||||||||||
Reduction of acquisition earnout accruals | $ (645) | (164) | ||||||||||||||||||
Goodwill, Translation and Purchase Accounting Adjustments | [1] | (13,718) | (3,432) | $ (4,007) | ||||||||||||||||
Derivative Liability | 29,285 | 29,285 | 37,096 | $ 8,510 | ||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 14,363 | $ 3,596 | ||||||||||||||||||
Goodwill, Purchase Accounting Adjustments | (12,745) | (12,158) | ||||||||||||||||||
Goodwill | 870,311 | 870,311 | 666,863 | $ 441,404 | ||||||||||||||||
Fair Value of Joint Venture, excluding Noncontrolling Interest | $ 120,000 | |||||||||||||||||||
Fair Value of Joint Venture, including Noncontrolling Interest | 150,000 | |||||||||||||||||||
Miles [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 18,300 | |||||||||||||||||||
Leisure [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 2,100 | |||||||||||||||||||
Mercury [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | 13,200 | |||||||||||||||||||
Indus [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | 22,900 | |||||||||||||||||||
CDL (Centrum) [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 179,500 | |||||||||||||||||||
Transcorp [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 7,300 | |||||||||||||||||||
Payments to Acquire Businesses, Net | 6,550 | |||||||||||||||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 700 | |||||||||||||||||||
Via [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 78,800 | |||||||||||||||||||
Derivative, Term of Contract | 12 months | |||||||||||||||||||
PML [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 37,400 | |||||||||||||||||||
Wallstreet [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 7,400 | |||||||||||||||||||
YouFirst [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 10,200 | |||||||||||||||||||
beBetter [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 1,000 | |||||||||||||||||||
Derivative Liability | 0 | 0 | ||||||||||||||||||
Derivative, Term of Contract | 24 months | |||||||||||||||||||
ItzCash [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses, Gross | $ 76,300 | |||||||||||||||||||
Derivative Liability | 14,790 | 14,790 | ||||||||||||||||||
Derivative, Term of Contract | 36 months | |||||||||||||||||||
Payments to Acquire Business, Held in Escrow | $ 3,800 | |||||||||||||||||||
Escrow Derivative, Term of Contract | 12 months | |||||||||||||||||||
Maximum [Member] | Miles [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Derivative Liability | $ 8,300 | |||||||||||||||||||
Maximum [Member] | Indus [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Derivative Liability | $ 5,000 | |||||||||||||||||||
Maximum [Member] | beBetter [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Derivative Liability | $ 2,000 | |||||||||||||||||||
Maximum [Member] | ItzCash [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Derivative Liability | $ 44,000 | |||||||||||||||||||
Potential claims made by tax authorities [Member] | Via [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Derivative Liability | 2,300 | |||||||||||||||||||
Refund of Advance and withholding taxes [Member] | Via [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Derivative Liability | $ 2,000 | |||||||||||||||||||
Contingent accrued earn-out acquisition consideration [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Derivative Liability | 29,285 | 29,285 | 37,096 | |||||||||||||||||
Contingent liability for accrued earn-out acquisition consideration | 15,100 | 15,100 | 33,100 | |||||||||||||||||
Business acquisition, contingent consideration, at fair value, current | $ 14,200 | $ 14,200 | $ 4,000 | |||||||||||||||||
Smartclass [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Interest in Joint Venture | $ 8,600 | |||||||||||||||||||
Equity Method Investment, Ownership Percentage | 60.00% | |||||||||||||||||||
ItzCash [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 80.00% | |||||||||||||||||||
EbixHealth JV [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Equity Method Investment, Ownership Percentage Increase (Decrease) | 11.00% | |||||||||||||||||||
Payments to Acquire Interest in Joint Venture | $ 2,000 | $ 6,000 | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | 40.00% | ||||||||||||||||||
[1] | Recorded as an adjustment to reported general and administrative expenses |
Business Combinations (Pro Form
Business Combinations (Pro Forma) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition, Pro Forma Information | ||||
Operating revenue | $ 128,643 | $ 92,800 | $ 361,499 | $ 259,290 |
Net Income (Loss) Attributable to Parent | $ 29,242 | $ 24,184 | $ 84,630 | $ 74,045 |
Basic EPS | $ 0.93 | $ 0.77 | $ 2.69 | $ 2.34 |
Diluted EPS | $ 0.92 | $ 0.76 | $ 2.67 | $ 2.33 |
Revenue, Net, Increase (Decrease) | $ 35,843 | $ 102,209 | ||
Revenue, Net, Increase (Decrease), Percentage | 39.40% | 38.60% | ||
Operating revenue | $ 128,643 | $ 92,800 | $ 361,499 | $ 259,290 |
Parent, ItzCAsh, beBetter, YouFirst, WallStreet, PML, Via, and Transcorp [Member] | ||||
Business Acquisition, Pro Forma Information | ||||
Revenue, pro forma | 129,081 | 141,057 | 401,295 | 425,413 |
Net income, pro forma | $ 29,097 | $ 26,434 | $ 86,742 | $ 86,060 |
Basic EPS, pro forma | $ 0.92 | $ 0.84 | $ 2.76 | $ 2.72 |
Diluted EPS, pro forma | $ 0.92 | $ 0.84 | $ 2.74 | $ 2.71 |
Business Acquisition, Pro Forma Revenue, Increase (Decrease), Percentage | (8.50%) | (5.70%) |
Business Combinations Investmen
Business Combinations Investment (Details) - EbixHealth JV [Member] - USD ($) $ in Millions | Sep. 02, 2015 | Jul. 01, 2016 | Sep. 01, 2015 |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 51.00% | 40.00% | |
Non-cash Payments To Acquire Interest In Joint Venture | $ 2 |
Debt with Commercial Bank (Narr
Debt with Commercial Bank (Narrative) (Details) | Feb. 21, 2018USD ($)Companies | Nov. 03, 2017USD ($) | Jun. 17, 2016USD ($)Companies | Aug. 05, 2014 | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Apr. 09, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 14, 2015USD ($) |
Line of Credit Facility [Line Items] | ||||||||||
Proceeds from Lines of Credit | $ 246,000,000 | |||||||||
Deferred Costs, Current | $ 449,000 | 449,000 | $ 449,000 | $ 136,000 | ||||||
Deferred Costs, Noncurrent | 1,523,000 | 1,523,000 | 1,523,000 | $ 298,000 | ||||||
Secured Syndicated Credit Facility, Seventh Amendment [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Permitted indebtedness in the form of unsecured convertible notes | $ 300,000,000 | |||||||||
Secured Syndicated Credit Facility, Fifth Amendment [Member] | Secured Term Loan [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit, Accordion | $ 175,000,000 | |||||||||
Proceeds from Bank Debt | 20,000,000 | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 30,000,000 | |||||||||
Secured Syndicated Credit Facility, Fifth Amendment [Member] | Revolving Credit Facility [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Credit agreement, maximum borrowing capacity | $ 450,000,000 | |||||||||
Secured Syndicated Credit Facility, Sixth Amendment [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Permitted indebtedness in the form of unsecured convertible notes | 250,000,000 | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 650,000,000 | |||||||||
Debt Instrument, Term | 5 years | |||||||||
Number of Participating Banks | Companies | 10 | |||||||||
Deferred Costs, Credit Card Origination Costs, Amount | 5,130,000 | 5,130,000 | 5,130,000 | |||||||
Secured Syndicated Credit Facility, Sixth Amendment [Member] | Secured Term Loan [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 250,000,000 | |||||||||
Line of Credit Facility, Term | 5 years | |||||||||
Debt Instrument, Periodic Payment, Principal | 6,000,000 | |||||||||
Loans Payable | 243,800,000 | 243,800,000 | 243,800,000 | |||||||
Loans Payable, Current | 12,500,000 | 12,500,000 | $ 12,500,000 | |||||||
Line of Credit Facility, Short Term | 12 months | |||||||||
Line of Credit Facility, Periodic Payment, Principal | 3,130,000 | |||||||||
Short-term Debt | 12,500,000 | 12,500,000 | $ 12,500,000 | |||||||
Long-term Debt, Gross | 231,300,000 | 231,300,000 | 231,300,000 | |||||||
Deferred Costs, Credit Card Origination Costs, Amount | 1,970,000 | 1,970,000 | 1,970,000 | |||||||
Deferred Costs, Current | 449,000 | 449,000 | 449,000 | |||||||
Deferred Costs, Noncurrent | 1,523,000 | 1,523,000 | 1,523,000 | |||||||
Secured Syndicated Credit Facility, Sixth Amendment [Member] | Revolving Credit Facility [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 400,000,000 | |||||||||
Line of Credit Facility, Term | 5 years | |||||||||
Deferred Costs, Credit Card Origination Costs, Amount | $ 3,100,000 | $ 3,100,000 | $ 3,100,000 | |||||||
Line of credit, interest rate at period end | 4.63% | 4.63% | 4.63% | |||||||
Secured Syndicated Credit Facility, Sixth Amendment [Member] | Revolving Credit Facility [Member] | Citi Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Credit agreement, average amount outstanding during period | $ 288,800,000 | |||||||||
Credit agreement, maximum amount outstanding during period | 399,700,000 | |||||||||
Secured Syndicated Credit Facility, Second Amendment [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 400,000,000 | |||||||||
Credit agreement, maximum borrowing capacity | $ 500,000,000 | |||||||||
Number of Participating Banks | Companies | 11 | |||||||||
Newly Added Number of Participating Banks | Companies | 7 | |||||||||
Secured Syndicated Credit Facility, Second Amendment [Member] | Secured Term Loan [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 125,000,000 | |||||||||
Line of Credit Facility, Term | 5 years | |||||||||
Line of Credit Facility, Periodic Payment, Principal | $ 3,130,000 | |||||||||
Secured Syndicated Credit Facility, Second Amendment [Member] | Revolving Credit Facility [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 275,000,000 | |||||||||
Line of Credit Facility, Term | 5 years | |||||||||
Secured Syndicated Credit Facility [Member] | Revolving Credit Facility [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Credit agreement, amount outstanding | $ 399,694,000 | $ 399,694,000 | $ 399,694,000 | |||||||
Secured Syndicated Credit Facility, First Amendment [Member] | Revolving Credit Facility [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Credit agreement, maximum borrowing capacity | $ 240,000,000 | |||||||||
Minimum [Member] | Secured Syndicated Credit Facility, Fifth Amendment [Member] | Secured Term Loan [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit, Accordion | 50,000,000 | |||||||||
Maximum [Member] | Secured Syndicated Credit Facility, Fifth Amendment [Member] | Secured Term Loan [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit, Accordion | $ 100,000,000 | |||||||||
Maximum [Member] | Secured Syndicated Credit Facility, Sixth Amendment [Member] | Secured Term Loan [Member] | Regions Bank [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit, Accordion | $ 150,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ / Person in Thousands, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018USD ($)$ / Person | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Commitments and Contingencies [Line Items] | ||||
Rent expense, operating leases | $ 14,700 | $ 4,300 | ||
Reduction of rent expense as a result of purchase accounting adjustment | 0 | $ (948) | ||
Self-insured health insurance, liability | 282 | |||
Derivative Liability | 29,285 | $ 37,096 | $ 8,510 | |
Derivative Financial Instrument, Liabilities, Fair Value Disclosure, Noncurrent | 15,083 | 33,096 | ||
Derivative Financial Instrument, Liabilities, Fair Value Disclosure, Current | $ 14,202 | 4,000 | ||
Maximum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Self-insured health insurance limit, per person | $ / Person | 120 | |||
Self-insured health Insurance, aggregate liability based on participants and claims (percentage) | 125.00% | |||
Self-insured health insurance, estimated cumulative liability for annual contract | $ 2,800 | |||
Computer Equipment [Member] | Minimum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Capital lease obligation, term | 3 years | |||
Computer Equipment [Member] | Maximum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Capital lease obligation, term | 5 years | |||
Contingent Accrued Earn-out Acquisition Consideration [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Derivative Liability | $ 29,285 | 37,096 | ||
Contingent liability for accrued earn-out acquisition consideration | 15,100 | 33,100 | ||
Business Combination, Contingent Consideration, Liability, Current | $ 14,200 | $ 4,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||||
Additions for tax positions related to current year | $ 29 | $ 55 | $ 88 | $ 3,335 | |
Effective income tax rate | 5.42% | 6.64% | |||
Income tax expense | $ 1,679 | $ (204) | $ 6,027 | 363 | |
Income Tax Expense (Benefit), before discrete items | $ (1,650) | $ (5,939) | |||
Effective Income Tax Rate Reconciliation, Excluding Discrete Items, Percent | 5.30% | 6.50% | |||
Unrecognized Tax Benefits | $ 9,232 | $ 9,232 | |||
Unrecognized tax benefits, period increase (decrease) | $ (88) | $ (3,335) | |||
United States | |||||
Operating Loss Carryforwards [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||
Scenario, Forecast | |||||
Operating Loss Carryforwards [Line Items] | |||||
Effective income tax rate | 6.54% |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized tax benefit netted against a deferred tax asset for a net operating loss carryforward | $ (341) | $ (341) | $ (341) | ||
Unrecognized tax benefits, period increase (decrease) | (88) | $ (3,335) | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Additions for tax positions related to current year | 29 | $ 55 | 88 | $ 3,335 | |
Ending Balance | $ 9,232 | $ 9,232 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized tax benefits, period increase (decrease) | $ (88) | $ (3,335) | ||
Income tax expense | $ 1,679 | $ (204) | $ 6,027 | $ 363 |
United States | ||||
Operating Loss Carryforwards [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Geographic Information (Revenue
Geographic Information (Revenue by Geographic Locations) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Reportable_Segments | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of reportable segments | Reportable_Segments | 1 | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue, Net, Increase (Decrease) | $ 35,843,000 | $ 102,209,000 | ||||
Long-lived assets | 1,080,203,000 | $ 785,158,000 | 1,080,203,000 | $ 785,158,000 | $ 1,080,203,000 | |
Operating revenue | 128,643,000 | 92,800,000 | 361,499,000 | 259,290,000 | ||
Increase (Decrease) in Deferred Income Taxes | 3,077,000 | 6,327,000 | ||||
Goodwill, Acquired During Period | 261,428,000 | $ 233,095,000 | ||||
United States | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue, Net, Increase (Decrease) | (11,000,000) | |||||
Long-lived assets | 393,066,000 | 390,950,000 | 393,066,000 | 390,950,000 | 393,066,000 | |
Operating revenue | 48,395,000 | 52,603,000 | 146,697,000 | 157,682,000 | ||
Long Lived Assets, Increase (Decrease) | 2,100,000 | |||||
Canada | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue, Net, Increase (Decrease) | (1,600,000) | |||||
Long-lived assets | 6,265,000 | 6,674,000 | 6,265,000 | 6,674,000 | 6,265,000 | |
Operating revenue | 1,267,000 | 1,827,000 | 4,323,000 | 5,969,000 | ||
Latin America | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Long-lived assets | 18,338,000 | 23,919,000 | 18,338,000 | 23,919,000 | 18,338,000 | |
Operating revenue | 4,586,000 | 6,268,000 | 15,141,000 | 14,486,000 | ||
Long Lived Assets, Increase (Decrease) | $ (5,600,000) | |||||
Foreign Currency Translation Gain (Loss), Percent | (22.00%) | |||||
Foreign Currency Translation Related To Long Lived Assets | $ (5,200,000) | |||||
Australia | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue, Net, Increase (Decrease) | 1,700,000 | |||||
Long-lived assets | 1,605,000 | 1,273,000 | 1,605,000 | 1,273,000 | 1,605,000 | |
Operating revenue | 8,576,000 | 8,575,000 | 26,803,000 | 25,091,000 | ||
Effect of Exchange Rate on Revenue | (300,000) | |||||
Singapore | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Long-lived assets | 19,054,000 | 17,427,000 | 19,054,000 | 17,427,000 | 19,054,000 | |
Operating revenue | 1,731,000 | 1,368,000 | 5,871,000 | 4,493,000 | ||
New Zealand | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Long-lived assets | 267,000 | 251,000 | 267,000 | 251,000 | 267,000 | |
Operating revenue | 454,000 | 462,000 | 1,467,000 | 1,485,000 | ||
India | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue, Net, Increase (Decrease) | 102,500,000 | |||||
Long-lived assets | 561,966,000 | 268,449,000 | 561,966,000 | 268,449,000 | 561,966,000 | |
Operating revenue | 56,631,000 | 17,509,000 | 139,985,000 | 37,508,000 | ||
Long Lived Assets, Increase (Decrease) | 293,500,000 | |||||
Increase In Value Of Long Lived Assets From Business Acquisitions | 319,500,000 | |||||
Europe | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Long-lived assets | 24,852,000 | 22,613,000 | 24,852,000 | 22,613,000 | 24,852,000 | |
Operating revenue | 3,854,000 | 4,188,000 | 11,726,000 | 12,576,000 | ||
Long Lived Assets, Increase (Decrease) | (2,200,000) | |||||
Dubai [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Long-lived assets | 54,252,000 | 53,602,000 | 54,252,000 | 53,602,000 | 54,252,000 | |
Operating revenue | 319,000 | 0 | 694,000 | 0 | ||
INDONESIA | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Long-lived assets | 64,000 | 0 | 64,000 | 0 | 64,000 | |
Operating revenue | 1,683,000 | 0 | 5,052,000 | 0 | ||
PHILIPPINES | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Long-lived assets | 474,000 | 0 | 474,000 | 0 | $ 474,000 | |
Operating revenue | $ 1,147,000 | $ 0 | 3,740,000 | $ 0 | ||
ItzCash, Youfirst, WallStreet, PML, Via, and Transcorp [Member] | India | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue, Net, Increase (Decrease) | 103,800,000 | |||||
e- governance contracts [Member] | India | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue, Net, Increase (Decrease) | $ (900,000) |
Investment in Joint Ventures (D
Investment in Joint Ventures (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Jan. 02, 2018 | Apr. 01, 2017 | Jul. 02, 2016 | Feb. 08, 2016 | Sep. 02, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 01, 2016 | Feb. 07, 2016 | Sep. 01, 2015 |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Fair Value of Joint Venture, excluding Noncontrolling Interest | $ 120,000 | ||||||||||||||
Fair Value of Joint Venture, including Noncontrolling Interest | $ 150,000 | ||||||||||||||
Non-operating income, gain on joint venture investment (see Note 8) | $ 7 | $ 0 | $ 60 | $ 0 | $ 1,162 | ||||||||||
Derivative Liability | 29,285 | 29,285 | $ 37,096 | $ 8,510 | |||||||||||
Proceeds from Noncontrolling Interests | 4,996 | $ 0 | |||||||||||||
Smartclass [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Payments to Acquire Interest in Joint Venture | $ 8,600 | ||||||||||||||
Equity Method Investment, Ownership Percentage | 60.00% | ||||||||||||||
PML JV [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Percentage of Membership Interest in Joint Venture by Other Party | 10.00% | ||||||||||||||
Proceeds from Noncontrolling Interests | $ 5,000 | ||||||||||||||
Percentage of Equity Interest in Joint Venture by Other Party, Irrevocable option to reacquire | 10.00% | ||||||||||||||
ItzCash [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity Method Investment, Ownership Percentage | 80.00% | ||||||||||||||
Ebix Vayam JV [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | ||||||||||||||
Percentage of Membership Interest in Joint Venture by Other Party | 49.00% | ||||||||||||||
EbixHealth JV [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Payments to Acquire Interest in Joint Venture | $ 2,000 | $ 6,000 | |||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | 40.00% | |||||||||||||
Contribution to Joint Venture by Other Party, Value | $ 12,000 | ||||||||||||||
Percentage of Membership Interest in Joint Venture by Other Party | 49.00% | 60.00% | |||||||||||||
Equity Method Investment, Ownership Percentage Increase (Decrease) | 11.00% | ||||||||||||||
Non-cash Payments To Acquire Interest In Joint Venture | $ 2,000 | ||||||||||||||
IHC [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Revenue from Related Parties | 0 | 0 | |||||||||||||
Accounts Receivable, Related Parties | 23 | 23 | |||||||||||||
IHC [Member] | EbixHealth JV [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Revenue from Related Parties | 1,700 | 6,400 | |||||||||||||
Accounts Receivable, Related Parties | 642 | 642 | |||||||||||||
ItzCash [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Payments to Acquire Businesses, Gross | $ 76,300 | ||||||||||||||
Derivative Liability | $ 14,790 | $ 14,790 | |||||||||||||
Derivative, Term of Contract | 36 months | ||||||||||||||
Payments to Acquire Business, Held in Escrow | $ 3,800 | ||||||||||||||
Escrow Derivative, Term of Contract | 12 months | ||||||||||||||
Maximum [Member] | ItzCash [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Derivative Liability | $ 44,000 |
Capitalized Software Developm_2
Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Capitalized Software Development Costs [Line Items] | |||
Capitalized Computer Software, Additions | $ 3,574 | $ 2,109 | |
Capitalized Software Development Costs for Software Sold to Customers | 10,039 | $ 8,499 | |
Capitalized Computer Software, Amortization | $ 1,608 | $ 1,304 | |
Property and Casualty Exchange [Member] | |||
Capitalized Software Development Costs [Line Items] | |||
Capitalized Computer Software, amortization period | 5 years | ||
Minimum [Member] | Continuing Medical Education Products [Member] | |||
Capitalized Software Development Costs [Line Items] | |||
Capitalized Computer Software, amortization period | 3 years | ||
Maximum [Member] | Continuing Medical Education Products [Member] | |||
Capitalized Software Development Costs [Line Items] | |||
Capitalized Computer Software, amortization period | 5 years |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Current Assets Disclosure [Abstract] | ||
Prepaid Expense, Current | $ 24,147 | $ 29,347 |
Sales taxes receivable from customers | 0 | 2,218 |
Due from prior owners of acquired businesses re: working capital settlements | 1,346 | 284 |
Interest Receivable, Current | 247 | 515 |
Income Taxes Receivable, Current | 5,035 | 0 |
Credit and Debit Card Receivables, at Carrying Value | 1,126 | 1,008 |
Other Receivables | 898 | 160 |
Other current assets | $ 32,799 | $ 33,532 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk (Details) - USD ($) $ in Millions | Feb. 08, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Feb. 07, 2016 |
Customer Concentration Risk [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration Risk, Percentage | 10.00% | |||||
Ebix Vayam JV [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 51.00% | |||||
Percentage of Membership Interest in Joint Venture by Other Party | 49.00% | |||||
Vayam [Member] | Ebix Vayam JV [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Revenue from Related Parties | $ 2.6 | $ 6 | $ 12.8 | $ 16.5 | ||
Accounts Receivable, Related Parties | $ 35.1 | $ 35.1 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 24, 2018 | Nov. 09, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||||||
Payments for Repurchase of Common Stock | $ 2,226 | $ 45,732 | ||||
Derivative Liability | $ 29,285 | $ 37,096 | $ 8,510 | |||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock Repurchased During Period, Shares | 243,651 | |||||
Payments for Repurchase of Common Stock | $ 14,000 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 57.60 | |||||
Business Travels [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Fair Value of Business Combination | $ 1,100 | |||||
Routier [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Fair Value of Business Combination | $ 400 |