Description of Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Business Combination, Segment Allocation

The following table summarizes the adjustments to goodwill recorded in connection with the acquisitions that occurred during 2016 and 2015:



Company acquired	Date acquired	(in thousands)
PB Systems, Inc. and PB Systems Private Limited (together being "PB Systems"); final purchase allocation adjustments	June 2015	$	4,298
EbixHealth JV	July 2016	20,839
IHAC, Inc., d.b.a Hope Health ("Hope")	November 2016	1,333
Wdev Solucoes em Technologia SA	November 2016	13,615
Total changes to goodwill during 2016		$	40,085

CurePet, Inc. ("CurePet"); see Note 18, "Investment in Joint Venture"	January 2014	$	(1,783	)
DCM Group Inc. (d.b.a. i3 Software) ("i3"); final purchase allocation adjustments	December 2014	(2,099		)
Via Media Health Communications Private Limited ("Via Media Health")	March 2015	2,042
PB Systems, Inc. and PB Systems Private Limited (together being "PB Systems")	June 2015	6,826
Total changes to goodwill during 2015		$	4,986

Schedule of Revenue by Product/Service Groups

Presented in the table below is the breakout of our revenue streams for each of those product/service groups for the years ended December 31, 2016 , 2015 and 2014.



	For the Year Ended
	December 31,
(dollar amounts in thousands)		2016		2015		2014
Exchanges		$	206,427	$	190,746	$	169,437
Broker P&C Systems		14,105		14,481		17,948
Risk Compliance Solutions (“RCS”), fka Business Process Outsourcing (“BPO”)		74,196		55,917		21,813
Carrier P&C Systems		3,566		4,338		5,123
Totals		$	298,294	$	265,482	$	214,321

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Additional information regarding the Company's assets and liabilities that are measured at fair value on a recurring basis is presented in the following tables:



	Fair Values at Reporting Date Using*
Descriptions	Balance at December 31, 2016		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets
Available-for-sale securities:
Commercial bank certificates of deposits ($925 thousand is recorded in the long term asset section of the consolidated balance sheets in "Other Assets")	$	4,030	$	4,030	$	—	$	—
Total assets measured at fair value	$	4,030	$	4,030	$	—	$	—

Liabilities
Derivatives:
Contingent accrued earn-out acquisition consideration (a)	8,510		—		—		8,510
Total liabilities measured at fair value	$	8,510	$	—	$	—	$	8,510

(a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments.
* During the year ended December 31, 2016 there were no transfers between fair value Levels 1, 2 or 3.



	Fair Values at Reporting Date Using*
Descriptions	Balance at December 31, 2015		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets
Available-for-sale securities:
Commercial bank certificates of deposits	$	1,538	1,538		—		—
Total assets measured at fair value	$	1,538	$	1,538	$	—	$	—

Liabilities
Derivatives:
Contingent accrued earn-out acquisition consideration (a)	4,277		—		—		4,277
Total liabilities measured at fair value	$	4,277	$	—	$	—	$	4,277

(a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments.
* During the year ended December 31, 2015 there were no transfers between fair value Levels 1, 2 or 3.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the year.



Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Contingent Liability for Accrued Earn-out Acquisition Consideration	Balance at December 31, 2016			Balance at December 31, 2015
	(in thousands)

Beginning balance	$	4,277		5,367

Total remeasurement adjustments:
(Gains) or losses included in earnings **	(1,344		)	(1,533		)
Reductions recorded against goodwill	(664		)	(2,000		)
Foreign currency translation adjustments ***	(208		)	(73		)

Acquisitions and settlements
Business acquisitions	6,449			2,516
Settlements	—			—

Ending balance	$	8,510		$	4,277

The amount of total (gains) or losses for the year included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at year-end.	$	(624	)	$	(1,533	)

** recorded as a component of reported general and administrative expenses
*** recorded as a component of other comprehensive income within stockholders' equity

Fair Value, Significant Unobservable Inputs Used in Measurement of Contingent Consideration Liabilities

The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows:

Schedule of Goodwill

Changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 are as follows:



	December 31, 2016			December 31, 2015
	(in thousands)
Beginning Balance	$	402,259		$	402,220
Additions for current year acquisitions	35,787			8,868
Purchase accounting adjustments for prior year acquisitions	4,298			(2,099		)
Contributed portions of CurePet investment to Joint Venture, ; see Note 18, "Investment in Joint Venture"	—			(1,783		)
Foreign currency translation adjustments	(940		)	(4,947		)
Ending Balance	$	441,404		$	402,259

Schedule of Finite-Lived Intangible Assets by Major Class, Estimated Useful Lives

We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows:



	Life
Category	(yrs)
Customer relationships	7-20
Developed technology	3-12
Trademarks	3-15
Non-compete agreements	5
Database	10

Schedule of Intangible Assets, Excluding Goodwill

Intangible assets as of December 31, 2016 and December 31, 2015, are as follows:



	December 31,
	2016			2015
	(In thousands)
Finite-lived intangible assets:
Customer relationships	$	71,338		$	76,275
Developed technology	16,011			15,121
Trademarks	2,666			2,729
Non-compete agreements	764			743
Backlog	140			140
Database	212			212
Total intangibles	91,131			95,220
Accumulated amortization	(49,795		)	(43,372		)
Finite-lived intangibles, net	$	41,336		$	51,848

Indefinite-lived intangibles:
Customer/territorial relationships	$	30,887		$	30,887

Useful Lives of Property and Equipment Used in Computation of Depreciation

The estimated useful lives applied by the Company for property and equipment are as follows:



	Life
Asset Category	(yrs)
Buildings	39
Building Improvements	15
Computer equipment	5
Furniture, fixtures and other	7
Software	3
Land	Unlimited life
Leasehold improvements	Life of the lease

(in thousands)

Fair Value at December 31, 2016

Valuation Technique

Significant Unobservable
Input

Contingent acquisition consideration:
(Qatarlyst and Wdev acquisition)

Discounted cash flow

Expected future annual revenue streams and probability of achievement