XML 36 R25.htm IDEA: XBRL DOCUMENT v3.20.2
Description of Business and Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Schedule of Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated statement of financial position to the amounts shown in the Condensed Consolidated Statement of Cash Flows:
Nine Months Ended
September 30,
20202019
(In thousands)
Cash and cash equivalents$88,023 $107,698 
Restricted cash7,902 18,240 
Restricted cash included in other long-term assets6,073 6,566 
Total cash, cash equivalents, and restricted cash shown in the Condensed Consolidated Statement of Cash Flows$101,998 $132,504 
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*
DescriptionsBalance, September 30, 2020Quoted Prices in Active Markets for Identical Assets or Liabilitie
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
(In thousands)
Assets
Commercial bank certificates of deposits ($381 thousand is recorded in the long
term asset section of the Condensed Consolidated Balance Sheets in "Other Assets")
$24,903 $24,903 $— $— 
Mutual funds (recorded in
the long term asset section of the Condensed Consolidated Balance Sheets in "Other Assets")		564 564 — — 
Total assets measured at fair value$25,467 $25,467 $— $— 
Liabilities
Contingent accrued earn-out acquisition consideration (a)$3,352 $— $— $3,352 
Total liabilities measured at fair value$3,352 $— $— $3,352 
(a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected revenues and cash flows, rate of return, and probability assessments.
* During the nine months ended September 30, 2020, there were no transfers between fair value Levels 1, 2 or 3.
Fair Values at Reporting Date Using*
DescriptionsBalance, December 31, 2019Quoted 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
Commercial bank certificates of deposits ($50 thousand is recorded in the long term asset section of the Condensed Consolidated Balance Sheets in "Other Assets")
$4,493 4,493 $— $— 
Mutual funds1,058 1,058 — — 
Total assets measured at fair value$5,551 $5,551 $— $— 
Liabilities
Contingent accrued earn-out acquisition consideration (a)$10,095 $— $— $10,095 
Total liabilities measured at fair value$10,095 $— $— $10,095 
(a) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected revenues and cash flows, rate of return, and probability assessments.
* During the year ended December 31, 2019, 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 nine months ended September 30, 2020 and during the year ended December 31, 2019:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Contingent Liability for Accrued Earn-out Acquisition ConsiderationSeptember 30, 2020December 31, 2019
(In thousands)
Beginning balance$10,095 $24,976 
Total remeasurement adjustments:
       Gains included in earnings **(3,308)(16,543)
       Foreign currency translation adjustments ***(554)(260)
Acquisitions and settlements
       Business settlements(2,881)1,922 
Ending balance$3,352 $10,095 
The amount of total (gains) losses for the period included in earnings or changes to net assets, attributable to changes in unrealized gains relating to assets or liabilities still held at period-end.$(3,308)$(16,543)
** recorded as a reduction to 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:
        
(In thousands) Fair Value at September 30, 2020 
Valuation Technique		 Significant
Unobservable
Input
Contingent acquisition consideration:
(Miles acquisition) 		 $3,352Discounted cash flowProjected revenue and
probability of achievement
        
(In thousands) Fair Value at December 31, 2019 
Valuation Technique		 Significant
Unobservable
Input
Contingent acquisition consideration:
(Wdev, Miles, Zillious, and Essel
acquisition) 		 $10,095Discounted cash flowProjected revenue and
probability of achievement
Schedule of Disaggregation of Revenue
Disaggregation of Revenue
    The following tables present revenue disaggregated by primary geographical regions and product/service channels for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended September 30,Nine Months Ended September 30,
Revenue:2020201920202019
(In thousands)
India*$93,403 $77,145 $219,953 $223,962 
United States40,124 45,038 123,750 136,181 
Australia8,187 8,643 23,773 25,997 
Latin America3,633 5,400 11,447 14,397 
Europe3,306 3,584 9,836 11,005 
Canada1,122 1,207 3,355 3,516 
Singapore*896 1,260 2,944 5,404 
Indonesia*394 2,004 2,714 7,177 
United Arab Emirates*2,568 273 2,702 607 
Philippines*213 2,185 1,742 4,682 
New Zealand459 494 1,277 1,504 
$154,305 $147,233 $403,493 $434,432 
*Primarily India led businesses for which total revenue was $96.8 million and $227.9 million for the three months and nine months ended September 30, 2020, respectively, and $82.1 million and $238.8 million in the three months and nine months ended September 30, 2019, respectively.
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 channels for the three and nine months ended September 30, 2020 and 2019.
Three Months EndedNine Months Ended
September 30,September 30,
2020201920202019
(In thousands)
EbixCash Exchanges96,772 82,085 $227,867 $238,770 
Insurance Exchanges42,382 47,385 129,342 141,993 
Risk Compliance Solutions15,151 17,763 46,284 53,669 
Totals$154,305 $147,233 $403,493 $434,432 
Contract with Customer, Asset and Liability At September 30, 2020 and December 31, 2019, the Company had $664 thousand and $734 thousand, respectively, of contract costs in “Other current assets” and $1.0 million and $1.2 million, respectively, in “Other assets” on the Company's Condensed Consolidated Balance Sheets.
September 30, 2020December 31, 2019
(Unaudited)
(In thousands)
Balance, beginning of period$1,897 $2,238 
Costs recognized from the beginning balance(576)(708)
Additions, net of costs recognized327 367 
Balance, end of period$1,648 $1,897 
Schedule of Contract Liabilities The Company records contract liabilities when it receives payments or invoices in advance of the performance of services. A significant portion of this balance relates to contracts where the customer has paid in advance for the use of the Company's SaaS platforms over a specified period of time. These advanced payments are recognized as the related performance obligation is fulfilled (generally less than one year). Part of the Company's performance obligation for these contracts consists of the requirement to provide customers with continued access to, and use of the SaaS platforms and associated customizations. Without continued access to the SaaS platform, the customizations have no separate benefit to the customer. Customers simultaneously receive and consume the benefits as we provide access over time. The remaining portion of the contract liabilities balance consists primarily of customer-specific customizations that are not distinct from related performance obligations that transfer over time. This portion is recognized over the expected useful life of the customizations.
September 30, 2020December 31, 2019
(Unaudited)
(In thousands)
Balance, beginning of period$37,253 $44,660 
Revenue recognized from beginning balance(28,164)(31,507)
Additions from business acquisitions— 769 
Additions, net of revenue recognized and currency translation26,192 23,331 
Balance, end of period$35,281 $37,253 
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:
Category Life (yrs)
Airport contracts
9
Backlog
1.2
Brand
15
Customer relationships 
7–20
Database
10
Dealer networks
15-20
Developed technology 
3–12
Non-compete agreements 
5
Store networks
5
Trademarks 
3–15