Business Combinations, Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations, Goodwill and Intangible Assets Disclosure [Abstract]

Allocation of Purchase Price to Assets Acquired and Liabilities Assumed

The Company finalized its purchase price allocation for the acquisition based on their fair values as set forth below:

	Amount
Tangible Assets	$	5,475
Liabilities	(5,733		)
Identifiable Intangible Assets:
Customer relationships	6,760
Developed technology	1,510
Trade names and trademarks	570
Goodwill	14,229
Total purchase price	$	22,811

The Company’s preliminary purchase price allocation to net tangible and intangible assets of SCIO is as follows:

Assets:
Cash and cash equivalents	$	9,842
Restricted cash	2,790
Accounts receivable	19,924
Other current assets	2,076
Property and equipment	1,824
Other assets	1,751
Intangible assets
Customer relationships	47,800
Developed technology	21,400
Trade names and trademarks	3,700
	111,107
Liabilities:
Current liabilities	(12,482		)
Deferred tax liabilities, net	(17,132		)
Other non-current liabilities	(200		)
	(29,814		)
Net assets acquired	$	81,293
Goodwill	163,751
Total purchase consideration	$	245,044

Pro Forma Financial Information

The following unaudited pro forma results of operations have been prepared using the acquisition method of accounting to give effect to the Health Integrated acquisition as though it occurred on January 1, 2016.  The Company completed its acquisition of Health Integrated on December 22, 2017 and accordingly Health Integrated’s operations for the period from December 22, 2017 to December 31, 2017 are included in the Company’s consolidated statement of income. The pro forma amounts reflect certain adjustments, such as depreciation and amortization on assets acquired, interest expense related to liabilities not assumed by the Company and facility costs for certain facilities not acquired. The unaudited pro forma financial information is presented for illustrative purposes only, is based on purchase price allocation, and is not necessarily indicative of the results of operations that would have actually been reported had the acquisitions occurred on January 1, 2016, nor is it necessarily indicative of the future results of operations of the combined company.

	Unaudited
	Year ended December 31,
	2017		2016
Revenues	$	801,101	$	729,938
Net income	$	46,998	$	58,232
Earnings per share:
Basic	$	1.39	$	1.73
Diluted	$	1.34	$	1.68

	Unaudited
	Year ended December 31,
	2018		2017
Revenues, net	$	924,172	$	834,158
Net income	$	55,756	$	45,827
Earnings per share:
Basic	$	1.62	$	1.35
Diluted	$	1.59	$	1.30

Summary of Company's Goodwill

The following table sets forth details of changes in goodwill by reportable segment of the Company:

	Insurance			Healthcare			TT&L			F&A			All Other		Analytics		Total
Balance as at January 1, 2017	$	38,110		$	19,276		$	12,983		$	47,537		$	5,326	$	63,538	$	186,770
Acquisitions	—			15,957			—			—			—		—		15,957
Currency translation adjustments	223			—			696			835			—		—		1,754
Balance as at December 31, 2017	$	38,333		$	35,233		$	13,679		$	48,372		$	5,326	$	63,538	$	204,481
Acquisitions	—			—			—			—			—		163,751		163,751
Measurement period adjustments*	—			(1,728		)	—			—			—		—		(1,728		)
Currency translation adjustments	(130		)	—			(982		)	(1,179		)	—		—		(2,291		)
Impairment charges	—			(14,229		)	—			—			—		—		(14,229		)
Balance as at December 31, 2018	$	38,203		$	19,276		$	12,697		$	47,193		$	5,326	$	227,289	$	349,984

* Subsequent to the date of acquisition and upon receipt of additional information, adjustments of $1,728 have been made to the Health Integrated amounts of net tangible assets acquired and the earn-out with the corresponding offset to goodwill. These adjustments are within the measurement period and would be accounted for prospectively. These adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows.

Schedule of Finite-Lived Intangible Assets

Information regarding the Company’s intangible assets is set forth below:

	As of December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	129,790	$	(56,367	)	$	(5,549	)	$	67,874
Leasehold benefits	2,644		(2,567		)	—			77
Developed technology	37,154		(14,653		)	—			22,501
Non-compete agreements	2,045		(1,937		)	—			108
Trade names and trademarks	9,639		(5,326		)	(278		)	4,035
	$	181,272	$	(80,850	)	$	(5,827	)	$	94,595
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—		$	—		$	900
Total intangible assets	$	182,172	$	(80,850	)	$	(5,827	)	$	95,495

	As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	82,165	$	(43,667	)	$	—	$	38,498
Leasehold benefits	2,888		(2,596		)	—		292
Developed technology	15,835		(8,749		)	—		7,086
Non-compete agreements	2,045		(1,780		)	—		265
Trade names and trademarks	5,951		(4,034		)	—		1,917
	$	108,884	$	(60,826	)	$	—	$	48,058
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—		$	—	$	900
Total intangible assets	$	109,784	$	(60,826	)	$	—	$	48,958

The remaining weighted average life of intangible assets is as follows:

	(in years)
Customer relationships	7.93
Leasehold benefits	0.41
Developed technology	4.34
Non-compete agreements	0.72
Trade names and trademarks (Finite lived)	3.11

Schedule of Indefinite-Lived Intangible Assets

Information regarding the Company’s intangible assets is set forth below:

	As of December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	129,790	$	(56,367	)	$	(5,549	)	$	67,874
Leasehold benefits	2,644		(2,567		)	—			77
Developed technology	37,154		(14,653		)	—			22,501
Non-compete agreements	2,045		(1,937		)	—			108
Trade names and trademarks	9,639		(5,326		)	(278		)	4,035
	$	181,272	$	(80,850	)	$	(5,827	)	$	94,595
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—		$	—		$	900
Total intangible assets	$	182,172	$	(80,850	)	$	(5,827	)	$	95,495

	As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	82,165	$	(43,667	)	$	—	$	38,498
Leasehold benefits	2,888		(2,596		)	—		292
Developed technology	15,835		(8,749		)	—		7,086
Non-compete agreements	2,045		(1,780		)	—		265
Trade names and trademarks	5,951		(4,034		)	—		1,917
	$	108,884	$	(60,826	)	$	—	$	48,058
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—		$	—	$	900
Total intangible assets	$	109,784	$	(60,826	)	$	—	$	48,958

Amortization of Intangible Assets

The amortization expense for the year is as follows:

	Year ended December 31,
	2018		2017		2016
Amortization expense	$	20,377	$	13,975	$	11,873

Estimated Future Amortization of Intangible Assets

Estimated future amortization expense related to intangible assets as of December 31, 2018 is as follows:
2019	$	21,543
2020	14,442
2021	12,743
2022	11,331
2023	9,042
2024 and thereafter	25,494
Total	$	94,595