Segment & Geographical Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment & Geographical Information

Segment & Geographical Information

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

The Company presents information for the following reportable segments:

• Insurance

• Healthcare

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

• Finance and Accounting (“F&A”),

• Analytics, and

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

For the year ended December 31, 2015, the Company previously reported and presented two reportable segments: Operations Management (which included Insurance, Healthcare, Travel, Transportation and Logistics, Finance and Accounting, Banking and Financial services, Utilities and Consulting operating segments) and Analytics.

Segment information for all prior period presented herein has been changed to conform to the current presentation. This change in segment presentation does not affect the Company's consolidated statements of income and comprehensive income, balance sheets or statements of cash flows.

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

The Company does not allocate and therefore the CODM does not evaluate other operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented.

The Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the resultant foreign exchange gain/(loss) upon settlement of cash flow hedges are recorded along with the underlying hedged item in the same income statement line as either part of “Cost of revenue”, “General and administrative expenses”, “Selling and marketing expenses”, "Depreciation and Amortization”, as applicable.

Revenues and cost of revenues for each of the years ended December 31, 2017, 2016 and 2015, for each of the reportable segments, are as follows:

	Year ended December 31, 2017
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	234,794	$	77,013	$	70,951	$	86,527	$	83,082	$	209,943	$	762,310
Cost of revenues (exclusive of depreciation and amortization)	159,529		49,483		41,409		51,445		56,697		137,023		495,586
Gross profit	$	75,265	$	27,530	$	29,542	$	35,082	$	26,385	$	72,920	$	266,724
Operating expenses													194,499
Foreign exchange gain, interest expense and other income, net													12,809
Income tax expense													36,146
Net income													$	48,888

	Year ended December 31, 2016
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	206,327	$	68,656	$	69,366	$	79,416	$	96,489	$	165,734	$	685,988
Cost of revenues (exclusive of depreciation and amortization)	146,203		44,098		41,962		48,302		61,050		106,341		447,956
Gross profit	$	60,124	$	24,558	$	27,404	$	31,114	$	35,439	$	59,393	$	238,032
Operating expenses													173,810
Foreign exchange gain, interest expense and other income, net													19,662
Income tax expense													22,151
Net income													$	61,733

	Year ended December 31, 2015
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	199,878	$	55,209	$	62,264	$	78,504	$	110,486	$	122,151	$	628,492
Cost of revenues (exclusive of depreciation and amortization)	134,196		37,224		37,506		46,846		68,307		78,838		402,917
Gross profit	$	65,682	$	17,985	$	24,758	$	31,658	$	42,179	$	43,313	$	225,575
Operating expenses													158,232
Foreign exchange gain, interest expense and other income, net													8,433
Income tax expense													24,211
Net income													$	51,565

Net revenues of the Company by service type, were as follows:

	Year ended December 31,
	2017		2016		2015
BPM and related services (1)	$	552,367	$	520,254	$	506,341
Analytics services	209,943		165,734		122,151
Total	$	762,310	$	685,988	$	628,492

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

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

	Year ended December 31,
	2017		2016		2015
Revenues, net
United States	$	626,336	$	554,945	$	496,418
Non-United States
United Kingdom	108,640		109,905		108,868
Rest of World	27,334		21,138		23,206
Total Non-United States	135,974		131,043		132,074
	$	762,310	$	685,988	$	628,492

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

	As of
	December 31, 2017		December 31, 2016
Property and equipment, net
India	$	39,143	$	23,362
United States	16,371		10,809
Philippines	8,217		11,900
Rest of World	3,026		2,958
	$	66,757	$	49,029

For a discussion of risks attendant to foreign operations, see “Item 1A. Risk Factors - Risks Related to the International Nature of Our Business”.