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.

The July 2018 acquisition of SCIOinspire Holdings Inc. (“SCIO”) is included in the Analytics reportable segment. The December 2017 acquisition of substantially all of the assets, and assumption of certain liabilities related thereto, of Health Integrated, Inc. (“Health Integrated”) is included in the Healthcare reportable segment.

Revenues and cost of revenues for each of the years ended December 31, 2018, 2017 and 2016, for each of the reportable segments, are as follows:



	Year ended December 31, 2018
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total

Revenues, net	$	258,144	$	84,391	$	70,237	$	97,941	$	87,109	$	285,290	$	883,112
Cost of revenues⁽¹⁾	174,921		66,768		41,066		59,155		58,341		184,604		584,855
Gross profit⁽¹⁾	$	83,223	$	17,623	$	29,171	$	38,786	$	28,768	$	100,686	$	298,257
Operating expenses													248,436
Foreign exchange gain, interest expense and other income, net													10,549
Income tax expense													3,397
Loss from equity-method investment													247
Net income													$	56,726



	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^(1)(2)(3)	159,433		49,412		41,337		51,362		56,638		136,960		495,142
Gross profit^(1)(2)(3)	$	75,361	$	27,601	$	29,614	$	35,165	$	26,444	$	72,983	$	267,168
Operating expenses⁽²⁾⁽³⁾													194,443
Foreign exchange gain, interest expense and other income, net⁽²⁾⁽³⁾													12,309
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⁽¹⁾⁽³⁾	146,151		44,060		41,923		48,258		61,019		106,307		447,718
Gross profit⁽¹⁾⁽³⁾	$	60,176	$	24,596	$	27,443	$	31,158	$	35,470	$	59,427	$	238,270
Operating expenses⁽³⁾													173,775
Foreign exchange gain, interest expense and other income, net⁽³⁾													19,389
Income tax expense													22,151
Net income													$	61,733

⁽¹⁾ Exclusive of depreciation and amortization.

⁽²⁾The Company early adopted ASU No. 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 line as either part of “Cost of revenues”, “General and administrative expenses”, “Selling and marketing expenses”, and "Depreciation and amortization”, as applicable. Refer to Note 18 to the consolidated financial statements for details.

⁽³⁾ Effective January 1, 2018, the Company adopted ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. Pursuant to this, the Company retrospectively included only the service cost component of the net periodic benefit cost in the same line item or items on the 2017 and 2016 consolidated statements of income as other compensation costs arising from services rendered by the respective employees during the period. The interest cost, expected return on plan assets and amortization of actuarial (gain)/loss, have been reclassified from “Cost of revenues”, “General and administrative expenses” and “Selling and marketing expenses” to “Other income, net”. Refer to Note 21 and Note 27 to the consolidated financial statements for details.

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



	Year ended December 31,
	2018		2017		2016
BPM and related services⁽¹⁾	$	597,822	$	552,367	$	520,254
Analytics services	285,290		209,943		165,734
Total	$	883,112	$	762,310	$	685,988

⁽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. Refer to segment disclosure above.

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



	Year ended December 31,
	2018		2017		2016
Revenues, net
United States	$	732,589	$	626,336	$	554,945
Non-United States
United Kingdom	114,515		108,640		109,905
Rest of World	36,008		27,334		21,138
Total Non-United States	$	150,523	$	135,974	$	131,043
	$	883,112	$	762,310	$	685,988

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



	As of
	December 31, 2018		December 31, 2017
Property and equipment, net
India	$	36,152	$	39,143
United States	28,254		16,371
Philippines	5,985		8,217
Rest of World	3,119		3,026
	$	73,510	$	66,757