OPERATING SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2014

Revenues from External Customers and Segment Operating Profit Before Unallocated Expenses

Revenues from external customers and segment operating profit, before unallocated expenses, for the North America, Europe, Russia and Other reportable segments for the three and nine months ended September 30, 2014 and 2013, were as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2014			2013		2014			2013
Total segment revenues:
North America	$	99,393		$	73,480	$	267,866		$	205,613
Europe	78,074			51,531		217,247			146,108
Russia	14,762			12,050		38,881			37,901
Other	530			3,078		3,445			7,867
Total segment revenues	$	192,759		$	140,139	$	527,439		$	397,489
Segment operating profit:
North America	$	22,557		$	18,133	$	62,283		$	48,527
Europe	12,200			8,049		36,049			24,538
Russia	3,779			391		4,843			2,710
Other	(1,508		)	1,024		(3,726		)	960
Total segment operating profit	$	37,028		$	27,597	$	99,449		$	76,735

Reconciliation of Segment Revenues and Operating Profit to Consolidated Income Before Provision for Income Taxes

Reconciliation of segment revenues and operating profit to consolidated income before provision for income taxes is presented below:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Total segment revenues	$	192,759		$	140,139		$	527,439		$	397,489
Unallocated revenue	5			11			404			43
Revenues	$	192,764		$	140,150		$	527,843		$	397,532

Total segment operating profit:	$	37,028		$	27,597		$	99,449		$	76,735
Unallocated amounts:
Other revenues	5			11			404			43
Stock-based compensation expense	(7,425		)	(3,365		)	(16,524		)	(9,791		)
Non-corporate taxes	(789		)	(690		)	(1,944		)	(2,190		)
Professional fees	(839		)	(594		)	(3,380		)	(2,668		)
Depreciation and amortization	(2,589		)	(732		)	(5,470		)	(2,162		)
Bank charges	(708		)	(261		)	(1,211		)	(914		)
Asset impairment	—			—			(2,000		)	—
Other corporate expenses	(2,848		)	(1,736		)	(7,156		)	(5,752		)
Income from operations	21,835			20,230			62,168			53,301
Interest and other income, net	1,261			846			3,401			2,245
Foreign exchange loss	(718		)	(720		)	(3,198		)	(2,088		)
Income before provision for income taxes	$	22,378		$	20,356		$	62,371		$	53,458

Geographical Information of Long-Lived Assets Based on Physical Location

Management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably among the segments. Geographical information about the Company’s long-lived assets based on physical location of the assets was as follows:



	September 30, 2014		December 31, 2013
Belarus	$	41,243	$	38,697
Ukraine	4,511		5,525
Russia	2,673		3,414
Hungary	2,703		2,644
United States	1,931		2,217
Other	1,604		818
Total	$	54,665	$	53,315

Revenues by Client Location

Information about the Company’s revenues by client location is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
United States	$	84,276	$	62,871	$	228,504	$	180,067
United Kingdom	35,222		26,637		102,642		81,416
Switzerland	22,508		13,920		63,873		33,934
Russia	14,351		11,534		37,513		36,464
Canada	13,518		9,162		34,973		22,980
Germany	6,459		5,141		18,951		14,211
China	5,058		—		8,268		—
Netherlands	2,174		1,895		6,636		6,665
Sweden	1,734		1,382		6,213		3,986
Kazakhstan	525		2,921		3,141		7,414
Other locations	4,476		2,501		11,027		5,261
Reimbursable expenses and other revenues	2,463		2,186		6,102		5,134
Revenues	$	192,764	$	140,150	$	527,843	$	397,532

Revenues by Service Offering

Information about the Company’s revenues by service offering is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Software development	$	134,000	$	93,870	$	364,539	$	267,948
Application testing services	37,155		27,773		103,121		78,473
Application maintenance and support	14,824		11,758		40,715		33,245
Infrastructure services	3,502		3,754		10,740		10,625
Licensing	820		809		2,626		2,107
Reimbursable expenses and other revenues	2,463		2,186		6,102		5,134
Revenues	$	192,764	$	140,150	$	527,843	$	397,532

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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