Impact of adoption of accounting guidance on prior years’ presentation and disclosures

Effective January 1, 2018, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost. Accordingly, for 2017 and 2016, the Company retrospectively included only the service cost component of the net periodic benefit cost in the same line item or items on the consolidated statements of income as other compensation costs arising from services rendered by the respective employees during the period. The other components of net periodic benefit cost, which included interest cost, expected return on plan assets and amortization of actuarial gains/loss, were reclassified from “Cost of revenues”, “General and administrative expenses” and “Selling and marketing expenses” to “Other income, net”.

The effect of the adoption of ASU No. 2017-07 (Topic 715) on 2017 and 2016 financial information is summarized as follows:



	Year ended December 31,							Year ended December 31,
	2017							2016
	Previously reported		As revised		Effect of change Increase/(Decrease)			Previously reported		As revised		Effect of change Increase/(Decrease)
Location in consolidated statements of income
Cost of revenues	$	495,586	$	495,142	$	(444	)	$	447,956	$	447,718	$	(238	)
General and administrative expenses	$	102,567	$	102,515	$	(52	)	$	88,648	$	88,616	$	(32	)
Selling and marketing expenses	$	53,383	$	53,379	$	(4	)	$	50,582	$	50,579	$	(3	)
Other income, net	$	11,859	$	11,359	$	(500	)	$	15,408	$	15,135	$	(273	)



	Year ended December 31,							Year ended December 31,
	2017							2016
	Cost of revenues previously reported		Cost of revenues as revised		Effect of change Increase/(Decrease)			Cost of revenues previously reported		Cost of revenues as revised		Effect of change Increase/(Decrease)
Segment information (refer Note 3)
Insurance	$	159,529	$	159,433	$	(96	)	$	146,203	$	146,151	$	(52	)
Healthcare	$	49,483	$	49,412	$	(71	)	$	44,098	$	44,060	$	(38	)
TT&L	$	41,409	$	41,337	$	(72	)	$	41,962	$	41,923	$	(39	)
F&A	$	51,445	$	51,362	$	(83	)	$	48,302	$	48,258	$	(44	)
All Other	$	56,697	$	56,638	$	(59	)	$	61,050	$	61,019	$	(31	)
Analytics	$	137,023	$	136,960	$	(63	)	$	106,341	$	106,307	$	(34	)
Operating Expenses	$	194,499	$	194,443	$	(56	)	$	173,810	$	173,775	$	(35	)
Foreign exchange gain, interest expense and other income, net	$	12,809	$	12,309	$	(500	)	$	19,662	$	19,389	$	(273	)

Effective January 1, 2018, the Company adopted ASU 2016-18, Statements of Cash Flows (Topic 230), Restricted Cash. Accordingly, for 2017 and 2016, restricted cash and restricted cash equivalents is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the consolidated statements of cash flows.

The effect of the adoption of ASU No. 2016-18 (Topic 230) on 2017 and 2016 financial information is summarized as follows:



	Year ended December 31,								Year ended December 31,
	2017								2016
	Previously reported			As revised			Effect of change Increase/(Decrease)		Previously reported			As revised			Effect of change Increase/(Decrease)
Consolidated statements of cash flows
Net cash provided by operating activities	$	113,140		$	113,159		$	19	$	100,258		$	102,395		$	2,137
Effect of exchange rate changes on cash, cash equivalents and restricted cash	$	3,711		$	3,935		$	224	$	(5,033	)	$	(5,122	)	$	(89	)
Net increase/(decrease) in cash, cash equivalents and restricted cash	$	(126,360	)	$	(126,117	)	$	243	$	7,832		$	9,880		$	2,048
Cash, cash equivalents and restricted cash - beginning of year	$	213,155		$	220,394		$	7,239	$	205,323		$	210,514		$	5,191
Cash, cash equivalents and restricted cash - end of year	$	86,795		$	94,277		$	7,482	$	213,155		$	220,394		$	7,239