OPERATING SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Revenues from External Customers and Segment Operating Profit before Unallocated Expenses

Revenues from external clients and segment operating profit, before unallocated expenses, for the North America, Europe, Russia and Other reportable segments were as follows for the years ended December 31:

	2012		2011		2010
Total segment revenues:
North America	$	197,271	$	151,707	$	110,179
Europe		168,913		123,510		68,420
Russia		50,552		46,219		31,388
Other		16,986		12,851		11,522
Total segment revenues	$	433,722	$	334,287	$	221,509
Segment operating profit:
North America	$	38,671	$	33,744	$	28,496
Europe		32,750		25,098		15,057
Russia		9,049		10,445		3,119
Other		6,985		2,416		1,414
Total segment operating profit	$	87,455	$	71,703	$	48,086

Reconciliation of Reportable Segment Revenues and Operating Profit to Consolidated Income from Operation

Reconciliation of reportable segment revenues and operating profit to the consolidated income from operations for the years ended December 31 is presented below:

	2012		2011		2010
Total segment revenues	$	433,722	$	334,287	$	221,509
Unallocated revenue		77		241		315
Revenues	$	433,799	$	334,528	$	221,824

	2012			2011			2010
Total segment operating profit	$	87,455		$	71,703		$	48,086
Unallocated Amounts:
Other revenue		77			241			315
Stock-based compensation expense		(6,826	)		(2,866	)		(2,939	)
Stock charge (Note 2)		(640	)		—			—
Non-corporate taxes		(2,346	)		(2,722	)		(2,344	)
Professional fees		(2,850	)		(2,802	)		(1,229	)
Depreciation and amortization		(1,100	)		(810	)		(1,021	)
Bank charges		(1,136	)		(793	)		(548	)
Goodwill impairment loss (Note 3)		—			(1,697	)		—
Legal settlement		—			—			(2,608	)
Provision for bad debts		—			—			(265	)
Other corporate expenses		(6,628	)		(5,246	)		(4,657	)
Income from operations		66,006			55,008			32,790
Interest and other income, net		1,941			1,422			486
Foreign exchange loss		(2,084	)		(3,638	)		(2,181	)
Income before provision for income taxes	$	65,863		$	52,792		$	31,095

Geographical Information of Long-Lived Assets Based on Physical Location

Geographical information about the Company’s long-lived assets is based on physical location of the assets at the end of each of the years ended December 31:

	As of December 31, 2012		As of December 31, 2011
Belarus	$	40,095	$	26,001
Ukraine		5,357		4,314
Russia		3,234		2,011
United States		2,048		1,445
Hungary		1,744		1,108
Other		657		603
Total	$	53,135	$	35,482

Revenues by Client Location

Information about the Company’s revenues by client location for each of the three years ended December 31 was as follows:

	2012		2011		2010
United States	$	197,593	$	163,068	$	117,027
United Kingdom		98,346		70,989		32,584
Russia		47,507		43,799		31,488
Switzerland		30,120		15,870		9,751
Germany		16,391		7,909		7,239
Kazakhstan		11,352		8,845		7,480
Canada		9,256		2,058		—
Sweden		4,913		5,292		3,034
Ukraine		4,733		891		924
Netherlands		3,127		4,031		5,399
Other locations		4,044		5,600		3,125
Reimbursable expenses and other revenues		6,417		6,176		3,773
Revenues	$	433,799	$	334,528	$	221,824

Revenues by Service Offering

Information about the Company’s revenues by service offering for each of the three years ended December 31 is as follows:

	Year Ended December 31,
	2012		2011		2010
Software development	$	290,139	$	219,211	$	149,658
Application testing services		85,849		67,840		44,459
Application maintenance and support		36,056		29,287		19,262
Infrastructure services		12,424		8,488		2,823
Licensing		2,914		3,526		1,849
Reimbursable expenses and other revenues		6,417		6,176		3,773
Revenues	$	433,799	$	334,528	$	221,824