XML 21 R10.htm IDEA: XBRL DOCUMENT v3.20.2
Segment and Geographical Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment and Geographical Information Segment and Geographical Information
The Company operates in the BPM industry and is a provider of operations management and analytics services.

Effective January 1, 2020, the Company made certain operational and structural changes to more closely integrate its businesses and to simplify its organizational structure. The Company now manages and reports financial information through its four strategic business units: Insurance, Healthcare, Analytics and Emerging Business, which reflects how management will review financial information and make operating decisions. These business units will develop client-specific solutions, build capabilities, maintain a unified go-to-market approach and be integrally responsible for service delivery, customer satisfaction, growth and profitability. In line with the Company’s strategy of vertical integration and focus on domain expertise, the Company has integrated its Finance & Accounting and Consulting operating segments within each of the Insurance and Healthcare operating segments based on the corresponding industry-specific clients to whom those services are provided. Finance & Accounting and Consulting services to clients outside of the Insurance and Healthcare industries will now be part of the Company’s newly formed business unit and reportable segment Emerging Business. In addition, the Company integrated its former Travel, Transportation and Logistics, Banking and Financial Services, and Utilities operating segments under the Emerging Business unit to further leverage and optimize the operating scale in providing operations management services.

The Company’s new reportable segments effective January 1, 2020 are as follows:

•Insurance,
•Healthcare,
•Emerging Business, and
•Analytics

In conjunction with the new reporting structure, the Company has recasted its segment disclosures for prior periods presented to conform to the way the Company internally manages and monitors segment performance.

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, certain 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, 2020 and 2019, respectively, for each of the reportable segments, are as follows:
Three months ended June 30, 2020
InsuranceHealthcareEmerging BusinessAnalyticsTotal
Revenues, net$81,281  $24,978  $34,535  $81,679  $222,473  
Cost of revenues(1)
59,113  19,640  22,416  57,232  158,401  
Gross profit(1)
$22,168  $5,338  $12,119  $24,447  $64,072  
Operating expenses54,206  
Foreign exchange gain, interest expense and other income, net2,701  
Income tax expense4,072  
Loss from equity-method investment66  
Net income$8,429  

(1) Exclusive of depreciation and amortization expense.
Three months ended June 30, 2019
InsuranceHealthcareEmerging BusinessAnalyticsTotal
Revenues, net$85,581  $21,730  $48,327  $87,871  $243,509  
Cost of revenues(1)
59,414  17,749  27,852  57,431  162,446  
Gross profit(1)
$26,167  $3,981  $20,475  $30,440  $81,063  
Operating expenses67,207  
Foreign exchange gain, interest expense and other income, net1,440  
Income tax expense2,670  
Loss from equity-method investment62  
Net income$12,564  

(1) Exclusive of depreciation and amortization expense.
Revenues and cost of revenues for the six months ended June 30, 2020 and 2019, respectively, for each of the reportable
segments, are as follows:

Six months ended June 30, 2020
InsuranceHealthcareEmerging BusinessAnalyticsTotal
Revenues, net$165,020  $52,007  $77,326  $174,110  $468,463  
Cost of revenues(1)
118,078  39,233  47,898  115,848  321,057  
Gross profit(1)
$46,942  $12,774  $29,428  $58,262  $147,406  
Operating expenses110,053  
Foreign exchange gain, interest expense and other income, net3,535  
Income tax expense9,927  
Loss from equity-method investment121  
Net income$30,840  

(1) Exclusive of depreciation and amortization expense.

Six months ended June 30, 2019
InsuranceHealthcareEmerging BusinessAnalyticsTotal
Revenues, net$166,867  $43,978  $97,405  $174,832  $483,082  
Cost of revenues(1)
114,657  35,551  55,145  114,333  319,686  
Gross profit(1)
$52,210  $8,427  $42,260  $60,499  $163,396  
Operating expenses132,679  
Foreign exchange gain, interest expense and other income, net3,541  
Income tax expense6,870  
Loss from equity-method investment129  
Net income$27,259  

(1) Exclusive of depreciation and amortization expense.

Revenues, net by service type, were as follows:
Three months ended June 30,Six months ended June 30,
2020201920202019
BPM and related services(1)
$140,794  $155,638  $294,353  $308,250  
Analytics services81,679  87,871  174,110  174,832  
Revenues, net$222,473  $243,509  $468,463  $483,082  

(1) BPM and related services include revenues of the Company's Insurance, Healthcare and Emerging Business operating segments. Refer to the reportable 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,
 2020201920202019
Revenues, net
United States$189,032  $197,901  $396,912  $394,005  
Non-United States
United Kingdom18,830  30,155  42,108  59,256  
Rest of World14,611  15,453  29,443  29,821  
Total Non-United States33,441  45,608  71,551  89,077  
Revenues, net$222,473  $243,509  $468,463  $483,082  

Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets were as follows:
As of
June 30, 2020December 31, 2019
Long-lived assets
India$101,073  $78,244  
United States50,121  52,375  
Philippines28,558  26,006  
Rest of World8,885  8,913  
Long-lived assets$188,637  $165,538