Segment and 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, five of which are industry-focused operating segments (Insurance, Healthcare, Travel, Transportation and Logistics, Banking and Financial Services, and Utilities) and one of which is a “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 the 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 Analytics, 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 are the Banking and Financial Services, Utilities and Consulting operating segments).

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.

Revenues and cost of revenues for the three months ended June 30, 2018 and 2017, respectively, for each of the reportable segments, are as follows:



	Three months ended June 30, 2018
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	64,812	$	19,817	$	18,549	$	24,228	$	23,088	$	59,618	$	210,112
Cost of revenues⁽¹⁾	44,033		16,713		10,625		14,543		15,079		38,656		139,649
Gross profit⁽¹⁾	$	20,779	$	3,104	$	7,924	$	9,685	$	8,009	$	20,962	$	70,463
Operating expenses													53,373
Foreign exchange gain, interest expense and other income, net													2,940
Income tax expense													5,510
Loss from equity-method investment													58
Net income													$	14,462

⁽¹⁾ Exclusive of depreciation and amortization.



	Three months ended June 30, 2017
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	58,255	$	18,923	$	17,835	$	21,038	$	21,447	$	51,559	$	189,057
Cost of revenues⁽¹⁾*	40,471		12,306		10,323		12,338		14,645		33,651		123,734
Gross profit⁽¹⁾*	$	17,784	$	6,617	$	7,512	$	8,700	$	6,802	$	17,908	$	65,323
Operating expenses*													47,055
Foreign exchange gain, interest expense and other income, net*													2,933
Income tax expense													823
Net income													$	20,378

⁽¹⁾ Exclusive of depreciation and amortization.

Revenues and cost of revenues for the six months ended June 30, 2018 and 2017, respectively, for each of the reportable segments, are as follows:



	Six months ended June 30, 2018
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	128,715	$	42,614	$	36,048	$	48,200	$	44,788	$	116,720	$	417,085
Cost of revenues⁽¹⁾	86,460		33,955		21,068		29,272		30,264		76,731		277,750
Gross profit⁽¹⁾	$	42,255	$	8,659	$	14,980	$	18,928	$	14,524	$	39,989	$	139,335
Operating expenses													107,095
Foreign exchange gain, interest expense and other income, net													6,551
Income tax expense													1,057
Loss from equity-method investment													114
Net income													$	37,620

⁽¹⁾ Exclusive of depreciation and amortization.



	Six months ended June 30, 2017
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	114,176	$	37,855	$	34,878	$	42,052	$	42,563	$	100,566	$	372,090
Cost of revenues⁽¹⁾*	78,501		24,615		20,461		24,764		29,058		65,407		242,806
Gross profit⁽¹⁾*	$	35,675	$	13,240	$	14,417	$	17,288	$	13,505	$	35,159	$	129,284
Operating expenses*													93,804
Foreign exchange gain, interest expense and other income, net*													6,069
Income tax expense													4,383
Net income													$	37,166

⁽¹⁾ Exclusive of depreciation and amortization.

*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 revenues”, “General and administrative expenses”, “Selling and marketing expenses”, "Depreciation and Amortization”, as applicable. Refer to Note 17 to the unaudited consolidated financial statements for details.

Revenues, net of the Company by service type, were as follows:



	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
BPM and related services⁽¹⁾	$	150,494	$	137,498	$	300,365	$	271,524
Analytics services	59,618		51,559		116,720		100,566
Total	$	210,112	$	189,057	$	417,085	$	372,090

⁽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. See segment disclosure above.

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



	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Revenues, net
United States	$	174,087	$	153,894	$	345,285	$	304,175
Non-United States
United Kingdom	27,480		28,951		55,496		55,033
Rest of World	8,545		6,212		16,304		12,882
Total Non-United States	36,025		35,163		71,800		67,915
	$	210,112	$	189,057	$	417,085	$	372,090

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



	As of
	June 30, 2018		December 31, 2017
Property and equipment, net
India	$	35,060	$	39,143
United States	21,182		16,371
Philippines	6,748		8,217
Rest of World	3,122		3,026
	$	66,112	$	66,757