v2.4.0.8
Document and Entity Information Document
 9 Months Ended
Sep. 30, 2014
Nov. 07, 2014
Document and Entity Information [Abstract]    
Document Period End Date Sep. 30, 2014  
Entity Registrant Name EBIX INC  
Entity Central Index Key 0000814549  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Document Type 10-Q  
Document Fiscal Year Focus 2014  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   36,677,663
v2.4.0.8
Condensed Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Income Statement [Abstract]        
Operating revenue $ 50,808 $ 50,293 $ 153,688 $ 153,863
Operating expenses:        
Cost of services provided 10,275 10,136 29,851 30,385
Product development 6,779 6,625 20,230 20,384
Sales and marketing 3,559 4,024 10,644 11,763
General and administrative 6,008 8,448 26,917 26,672
Amortization and depreciation 2,449 2,459 7,442 7,459
Total operating expenses 29,070 31,692 95,084 96,663
Operating income 21,738 18,601 58,604 57,200
Interest income 61 159 326 343
Interest expense (392) (318) (850) (961)
Non-operating income - put options (19) 93 296 (1,250)
Non-operating expense - securities litigation (350) (4,226) (350) (4,226)
Foreign currency exchange loss 987 (33) 532 (326)
Income before income taxes 22,025 14,276 58,558 50,780
Income tax expense (4,010) (1,133) (11,547) (6,751)
Net income $ 18,015 $ 13,143 $ 47,011 $ 44,029
Basic earnings per common share $ 0.47 $ 0.35 $ 1.23 $ 1.18
Diluted earnings per common share $ 0.47 $ 0.34 $ 1.22 $ 1.14
Basic weighted average shares outstanding 38,050 37,919 38,264 37,435
Diluted weighted average shares outstanding 38,253 38,451 38,499 38,676
v2.4.0.8
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Statement of Comprehensive Income [Abstract]        
Net income $ 18,015 $ 13,143 $ 47,011 $ 44,029
Other comprehensive income (loss):        
Foreign currency translation adjustments (4,546) 1,670 (1,947) (2,426)
Total other comprehensive income (loss) (4,546) 1,670 (1,947) (2,426)
Comprehensive income $ 13,469 $ 14,813 $ 45,064 $ 41,603
v2.4.0.8
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Current assets:    
Cash and cash equivalents $ 47,350 $ 56,674
Short-term investments 1,326 801
Trade accounts receivable, less allowances of $1,427 and $1,049, respectively 38,361 39,070
Deferred tax asset, net 997 256
Other current assets 6,251 5,548
Total current assets 94,285 102,349
Property and equipment, net 22,648 8,528
Goodwill 350,255 337,068
Intangibles, net 46,504 50,734
Indefinite-lived intangibles 30,887 30,887
Deferred tax asset, net 15,003 12,194
Other assets 4,890 3,682
Total assets 564,472 545,442
Current liabilities:    
Accounts payable and accrued liabilities 11,138 17,818
Accrued payroll and related benefits 4,251 6,482
Short term debt 0 13,062
Current portion of long term debt and capital lease obligations, net of discount of $10 and $10, respectively 724 827
Current deferred rent 230 254
Contingent liability for accrued earn-out acquisition consideration 564 4,137
Estimated Litigation Liability, Current 0 4,226
Derivative Liability, Current 0 845
Deferred revenue 18,575 18,918
Other current liabilities 84 106
Total current liabilities 35,566 66,675
Revolving line of credit 63,465 22,840
Long term debt and capital lease obligations, less current portion, net of discount of $10 and $38, respectively 898 20,124
Other liabilities 15,895 4,719
Contingent liability for accrued earn-out acquisition consideration 10,286 10,283
Deferred revenue 144 391
Long term deferred rent 1,848 2,185
Total liabilities 128,102 127,217
Commitments and Contingencies      
Temporary equity, Note 10 0 5,000
Stockholders’ equity:    
Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and outstanding at June 30, 2014 and December 31, 2013 0 0
Common stock, $0.10 par value, 60,000,000 shares authorized, 38,435,320 issued and 38,394,811 outstanding at June 30, 2014 and 38,088,391 issued and 38,047,882 outstanding at December 31, 2013 3,715 3,805
Additional paid-in capital 151,039 164,216
Treasury stock (40,509 shares as of June 30, 2014 and December 31, 2013) (76) (76)
Retained earnings 295,933 257,574
Accumulated other comprehensive loss (14,241) (12,294)
Total stockholders’ equity 436,370 413,225
Total liabilities and stockholders’ equity $ 564,472 $ 545,442
v2.4.0.8
Condensed Consolidated Balance Sheets (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Current assets:    
Allowance for doubtful accounts $ 1,609 $ 1,049
Unamortized debt discount, current 14 10
Unamortized debt discount, noncurrent $ 8 $ 38
Stockholders' Equity Note [Abstract]    
Common stock, shares issued 37,191,888 38,088,391
Common stock, shares outstanding 37,151,379 38,047,882
Treasury stock, shares 40,509 40,509
Preferred stock, shares outstanding 0 0
Common stock, par value (per share) $ 0.10 $ 0.10
Common stock, shares authorized 60,000,000 60,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares authorized 500,000 500,000
Preferred stock, par value (per share) $ 0.10 $ 0.10
v2.4.0.8
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Common Stock
Treasury Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning Balance, Value at Dec. 31, 2013 $ 413,225 $ 3,805 $ (76) $ 164,216 $ 257,574 $ (12,294)
Beginning Balance, Issued Shares at Dec. 31, 2013 38,088,391 38,088,391        
Beginning Balance, Treasury Shares at Dec. 31, 2013     (40,509)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 47,011       47,011  
Cumulative translation adjustment (1,947)         (1,947)
Repurchase and retirement of common stock, Shares   (1,178,662)        
Repurchase and retirement of common stock, Value (17,365) (118)   (17,247)    
Vesting of restricted stock, Shares   44,117        
Vesting of restricted stock, Value 0 4   (4)    
Exercise of stock options, Shares   450,000        
Exercise of stock options, Value 788 45   743    
Share based compensation 1,333     1,333    
Shares reaquired in connection with put option, Shares   (209,656)        
Shares reaquired in connection with put option, Value (2,986) (21)   (2,965)    
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested, Shares   (2,302)        
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested (37) 0   (37)    
Reclassification of shares previously reported as temporary equity in connection with an acquisition, Value 5,000     5,000    
Dividends paid (8,652)       (8,652)  
Ending Balance, Value at Sep. 30, 2014 $ 436,370 $ 3,715 $ (76) $ 151,039 $ 295,933 $ (14,241)
Ending Balance, Issued Shares at Sep. 30, 2014 37,191,888 37,191,888        
Ending Balance, Treasury Shares at Sep. 30, 2014     (40,509)      
v2.4.0.8
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Document Period End Date Sep. 30, 2014  
Cash flows from operating activities:    
Net income $ 47,011 $ 44,029
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 7,442 7,459
Benefit for deferred taxes (1,810) (4,682)
Share based compensation 1,333 1,481
Provision for doubtful accounts 1,083 1,361
Debt discount amortization on convertible debt 26 32
Unrealized foreign exchange (gain) loss (256) (94)
(Gain) loss on put option (296) 1,250
Reduction of acquisition earnout accruals (7,533) (10,253)
Changes in assets and liabilities, net of effects from acquisitions:    
Accounts receivable (1,901) (4,562)
Other assets (3,977) 845
Accounts payable and accrued expenses (8,064) (2,568)
Accrued payroll and related benefits 1,027 (1,205)
Deferred revenue (704) (2,802)
Deferred rent (272) (60)
Unrecognized tax benefits, period increase (decrease) 9,337 3,405
Loss Contingency Accrual, Period Increase (Decrease) (3,868) 4,226
Other current liabilities (188) (86)
Net cash provided by operating activities 38,390 37,776
Cash flows from investing activities:    
Maturities of marketable securities 0 104
Purchases of marketable securities (595) 0
Capital expenditures (15,922) (887)
Net cash used in investing activities (24,620) (8,500)
Cash flows from financing activities:    
Proceeds from / (Repayments) of Lines of Credit 40,625 (15,000)
Principal payments of term loan obligation (31,938) (6,531)
Repurchases of common stock (16,482) (2,492)
Excess tax benefit from share-based compensation (3,200) 0
Proceeds from the exercise of stock options 788 1,425
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested (37) (916)
Dividend payments (8,652) (2,794)
Cash consideration for shares reacquired in connection with put option (3,535) 0
Principal payments of debt obligations (336) (636)
Payments of capital lease obligations (144) (221)
Net cash used in financing activities (22,911) (27,165)
Effect of foreign exchange rates on cash (183) (1,671)
Net change in cash and cash equivalents (9,324) 440
Cash and cash equivalents at the beginning of the period 56,674 36,449
Cash and cash equivalents at the end of the period 47,350 36,889
Supplemental disclosures of cash flow information:    
Interest paid 802 901
Income taxes paid 10,782 13,009
Qatarlyst [Member]
    
Cash flows from investing activities:    
Acquisition of business, net of cash acquired 0 (4,740)
Healthcare Magic [Member]
    
Cash flows from investing activities:    
Acquisition of business, net of cash acquired (5,856) 0
Curepet, Inc. [Member]
    
Cash flows from investing activities:    
Acquisition of business, net of cash acquired 3 0
USIX [Member]
    
Cash flows from investing activities:    
Payments for (Proceeds from) Previous Acquisition 0 (727)
Taimma [Member]
    
Cash flows from investing activities:    
Payments for (Proceeds from) Previous Acquisition $ (2,250) $ (2,250)
v2.4.0.8
Condensed Consolidated Statements of Cash Flows (Unaudited) Supplemental schedule of noncash financing activities (Details) (USD $)
 3 Months Ended
Sep. 30, 2014
Jan. 27, 2014
Curepet, Inc. [Member]
Purchase Price of Business Acquisition, Cost of Acquired Entity   $ 6,350,000
Derivative Liability 10,850,000 5,000,000
Noncash or Part Noncash Acquisition, Value of Assets Acquired   1,350,000
Common Stock Repurchase not settled, Shares 62,595  
Common Stock Repurchase not settled, Value $ 883,000  
v2.4.0.8
Description of Business and Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
Description of Business and Summary of Significant Accounting Policies
Description of Business and Summary of Significant Accounting Policies
Description of Business— Ebix, Inc. and subsidiaries (“Ebix” or the “Company”) is an international supplier of on-demand software and e-commerce solutions to the insurance industry. Ebix provides various application software products for the insurance industry ranging from data exchanges, carrier systems, and agency systems, to custom software development for business entities across the insurance industry. The Company's products feature fully customizable and scalable on-demand software applications designed to streamline the way insurance professionals manage distribution, marketing, sales, customer service, and accounting activities. The Company has its headquarters in Atlanta, Georgia and also conducts operating activities in Australia, Canada, India, New Zealand, Singapore, United Kingdom and Brazil. International revenue accounted for 32.8% and 31.5% of the Company’s total revenue for the nine months ended September 30, 2014 and 2013, respectively.
The Company’s revenues are derived from four product/service groups. Presented in the table below is the breakout of our revenue streams for each of those product/service groups for the three and nine months ended September 30, 2014 and 2013.

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
(dollar amounts in thousands)
 
2014
 
2013
 
2014
 
2013
Exchanges
 
$
41,757

 
$
40,554

 
$
125,212

 
$
122,741

Broker Systems
 
4,511

 
4,390

 
13,862

 
13,878

Risk Compliance Solutions (“RCS”), fka Business Process Outsourcing (“BPO”)
 
3,346

 
3,604

 
10,423

 
11,781

Carrier Systems
 
1,194

 
1,745

 
4,191

 
5,463

Totals
 
$
50,808

 
$
50,293

 
$
153,688

 
$
153,863


Summary of Significant Accounting Policies
Basis of Presentation—The accompanying unaudited condensed consolidated financial statements and these notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the effect of inter-company balances and transactions eliminated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP and SEC rules have been condensed or omitted as permitted by and pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements contain adjustments (consisting only of normal recurring items) necessary to fairly present the consolidated financial position of the Company and its consolidated results of operations and cash flows. Operating results for the nine months ended September 30, 2014 and 2013 are not necessarily indicative of the results that may be expected for the full year. The condensed consolidated December 31, 2013 balance sheet included in this interim period filing has been derived from the audited financial statements at that date but does not necessarily include all of the information and related notes required by GAAP for complete financial statements. These condensed interim financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
Reclassification—The change in reserve for potential uncertain income tax return positions had been previously netted against the provision for deferred taxes line in the consolidated statements of cash flows, it is now shown separately. Also, beginning in 2014 the Company has applied the new provisions under Financial Accounting Standard ("FAS") update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, A Similar Tax Loss, or a Tax Credit Carryforward Exists and as more fully described in Note 6 "Income Taxes". A portion of potential uncertain income tax return positions previously reported in "Other Liabilities" on the condensed consolidated balance sheets are now netted against the "Deferred tax asset, net" line in the long term asset section of the condensed consolidated balance sheets.
Fair Value of Financial Instrument—The Company follows the relevant GAAP guidance concerning fair value measurements which provides a consistent framework to define, measure, and disclose the fair value of assets and liabilities in financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction. This guidance establishes a three-level hierarchy priority for disclosure of assets and liabilities recorded at fair value. The ordering of priority reflects the degree to which objective data from external active markets are available to measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable.
•
Level 1 Inputs - Unadjusted quoted prices available in active markets for identical investments to the reporting entity at the measurement date
•
Level 2 Inputs - Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
•
Level 3 Inputs - Unobservable inputs, which are used to the extent that observable inputs are not available, and used in situations where there is little or no market activity for the asset or liability and wherein the reporting entity makes estimates and assumptions related to the pricing of the asset or liability including assumptions regarding risk.

     A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

As of September 30, 2014 the Company had the following financial instruments to which it had to consider fair values and had to make fair assessments:
•
Short-term investments for which the fair values are measured as a Level 1 instrument.
•
Contingent accrued earn-out business acquisition consideration liabilities for which fair values are measured as Level 3 instruments. These contingent consideration liabilities were recorded at fair value on the acquisition date and are remeasured quarterly based on the then assessed fair value and adjusted if necessary. The increases or decreases in the fair value of contingent consideration payable can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3.

Other financial instruments not measured at fair value on the Company's unaudited consolidated balance sheet at September 30, 2014 but which require disclosure of their fair values include: cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, accrued payroll and related benefits, capital lease obligations, and debt under the revolving line of credit with Regions Financial Corporation. The estimated fair value of such instruments at September 30, 2014 and December 31, 2013, approximates their carrying value as reported on the unaudited Condensed Consolidated Balance Sheet.
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, September 30, 2014
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
 
$
1,326

$
1,326

$
—

$
—

Total assets measured at fair value
 
$
1,326

$
1,326

$
—

$
—

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Derivatives:
 
 
 
 
 
Contingent accrued earn-out acquisition consideration (a)
 
10,850

—

—

10,850

Total liabilities measured at fair value
 
$
10,850

$
—

$
—

$
10,850

 
 
 
 
 
 
(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 nine months ended September 30, 2014 there were no transfers between fair value Levels 1, 2 or 3.


 
 
Fair Values at Reporting Date Using*
Descriptions
 
Balance, December 31, 2013
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
 
$
801

801

$
—

$
—

Total assets measured at fair value
 
$
801

$
801

$
—

$
—

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Derivatives:
 
 
 
 
 
Common share-based put option (b)
 
$
845

$
—

845

$
—

Contingent accrued earn-out acquisition consideration (a)
 
14,420

—

—

14,420

Total liabilities measured at fair value
 
$
15,265

$
—

$
845

$
14,420

 
 
 
 
 
 
(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.
(b) In connection with the acquisition of PlanetSoft effective June 1, 2012, Ebix issued a put option to the PlanetSoft's three shareholders. The put option, which expired in July 9, 2014, was exercisable during the thirty-day period immediately following the two-year anniversary date of the closing of the business acquisition, which if exercised would enable the PlanetSoft shareholders to sell the underlying 296,560 shares of Ebix common stock they received as part of the purchase consideration, back to the Company at a price of $16.86 per share. The inputs used in the valuation of the put option include term, stock price volatility, current stock price, exercise price, and the risk free rate of return. During the months of July and August 2014 the former shareholders of PlanetSoft elected to exercise their put option rights with respect to the remaining 209,656 shares of Ebix common stock they still held. Accordingly the shareholders put those shares back to the Company at $16.86 per share plus interest at the rate of 20% as per the PlanetSoft acquisition agreement. The total consideration paid by the Company in connection with the exercise of these put options was $3.6 million.
* During the twelve months ended December 31, 2013 there were no transfers between fair value Levels 1, 2 or 3.

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, 2014 and during the year ended December 31, 2013:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Contingent Liability for Accrued Earn-out Acquisition Consideration
 
Balance, September 30, 2014
Balance, December 31, 2013
 
 
(in thousands)
 
 
 
 
Beginning balance
 
$
14,420

$
17,495

 
 
 
 
Total remeasurement adjustments:
 
 
 
       (Gains) or losses included in earnings **
 
(7,533
)
(10,253
)
       Foreign currency translation adjustments ***
 
(228
)
730

 
 
 
 
Acquisitions and settlements
 
 
 
       Business acquisitions
 
6,441

9,425

       Settlement payments
 
(2,250
)
(2,977
)
 
 
 
 
Ending balance
 
$
10,850

$
14,420

 
 
 
 
The amount of total (gains) or losses for the period included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at period-end.
 
$
(6,540
)
$
(9,954
)
 
 
 
 
** recorded as an adjustment to reported general and administrative expenses
 
*** recorded as a component of other comprehensive income within stockholders' equity
 


Quantitative Information about Level 3 Fair Value Measurements
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, 2014
 
             Valuation Technique
 
Significant Unobservable
Input
Contingent acquisition consideration:
(TriSystems, Qatarlyst, CurePet, and HealthCare Magic acquisitions)
 
$10,850
 
Discounted cash flow
 
Projected revenue and probability of achievement

  
 
 
 
 
 
 
(in thousands)
 
Fair Value at December 31, 2013
 
             Valuation Technique
 
Significant Unobservable
Input
Contingent acquisition consideration:
(Taimma, Planetsoft, TriSystems, and Qatarlyst acquisitions)
 
$14,420
 
Discounted cash flow
 
Projected revenue and probability of achievement

Sensitivity to Changes in Significant Unobservable Inputs
As presented in the table above, the significant unobservable inputs used in the fair value measurement of contingent consideration related to business acquisitions are projected revenue forecasts as developed by the relevant members of Company's management team and the probability of achievement of those revenue forecasts. The discount rate used in these calculations is 1.75%. Significant increases (decreases) in these unobservable inputs in isolation would result in a significantly higher (lower) fair value measurement.
Revenue Recognition—The Company derives its revenues primarily from subscription and transaction fees pertaining to services delivered over our exchanges or from our ASP platforms, fees for risk compliance solution services, and fees for software development projects including associated fees for consulting, implementation, training, and project management provided to customers with installed systems and applications. Sales and value-added taxes are not included in revenues, but rather are recorded as a liability until the taxes assessed are remitted to the respective taxing authorities.
In accordance with Financial Accounting Standard Board (“FASB”) and SEC accounting guidance on revenue recognition, the Company considers revenue earned and realizable when: (a) persuasive evidence of the sales arrangement exists, provided that the arrangement fee is fixed or determinable, (b) delivery or performance has occurred, (c) customer acceptance has been received or is assured, if contractually required, and (d) collectability of the arrangement fee is probable. The Company uses signed contractual agreements as persuasive evidence of a sales arrangement. We apply the provisions of the relevant generally accepted accounting principles related to all transactions involving the license of software where the software deliverables are considered more than inconsequential to the other elements in the arrangement.
For contracts that contain multiple deliverables, we analyze the revenue arrangements in accordance with the relevant technical accounting guidance, which provides criteria governing how to determine whether goods or services that are delivered separately in a bundled sales arrangement should be considered as separate units of accounting for the purpose of revenue recognition. These types of arrangements include deliverables pertaining to software licenses, system set-up, and professional services associated with product customization or modification. Delivery of the various contractual elements typically occurs over periods of less than eighteen months. These arrangements generally do not have refund provisions or have very limited refund terms.
Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by FASB using the percentage-of-completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee.
Accounts Receivable and the Allowance for Doubtful Accounts Receivable—Reported accounts receivable include $29.4 million of trade receivables stated at invoice billed amounts net of the estimated allowance for doubtful accounts receivable in the amount of $1.6 million, and $10.6 million of unbilled receivables. The unbilled receivables pertain to certain projects for which the timing of billing is tied to contractual milestones. The Company adheres to such contractually stated performance milestones and accordingly issues invoices to customers as per contract billing schedules. Approximately $7.5 million of deferred revenue is included in billed accounts receivable at September 30, 2014. The Company recognized and recorded bad debt expense in the amount of $336 thousand and $1.1 million for the three and nine-month periods ended September 30, 2014 and $834 thousand and $1.4 million for the three and nine-month periods ended September 30, 2013, respectively. Accounts receivable are written off against the allowance account when the Company has exhausted all reasonable collection efforts.
Goodwill and Other Indefinite-Lived Intangible Assets—Goodwill represents the cost in excess of the fair value of the net assets of acquired businesses. Indefinite-lived intangible assets represent the fair value of certain acquired contractual customer relationships for which future cash flows are expected to continue indefinitely. In accordance with the relevant FASB accounting guidance, goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment at the reporting unit level on an annual basis or on an interim basis if an event occurs or circumstances change that would likely have reduced the fair value of a reporting unit below its carrying value. Potential impairment indicators include a significant change in the business climate, legal factors, operating performance indicators, competition, and the sale or disposition of a significant portion of the business. The impairment evaluation process involves an assessment of certain qualitative factors to determine whether the existence of events or circumstances would indicate that it is more likely than not that the fair value of any of our reporting units was less than its carrying amount. If after assessing the totality of events or circumstances, we were to determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company would not perform the two-step quantitative impairment testing described further below.
The aforementioned two-step quantitative testing process involves comparing the reporting unit carrying values to their respective fair values; we determine fair value of our reporting units by applying the discounted cash flow method using the present value of future estimated net cash flows. If the fair value of a reporting unit exceeds its carrying value, then no further testing is required. However, if a reporting unit's fair value were to be less than its carrying value, we would then determine the amount of the impairment charge, if any, which would be the amount that the carrying value of the reporting unit's goodwill exceeded its implied value. Projections of cash flows are based on our views of growth rates, operating costs, anticipated future economic conditions and the appropriate discount rates relative to risk and estimates of residual values. We believe that our estimates are consistent with assumptions that marketplace participants would use in their estimates of fair value. The use of different estimates or assumptions for our projected discounted cash flows (e.g., growth rates, future economic conditions, discount rates and estimates of terminal values) when determining the fair value of our reporting units could result in different values and may result in a goodwill impairment charge. We perform our annual goodwill impairment evaluation and testing as of September 30th of each year. This evaluation is done during the fourth quarter each year. During the year ended December 31, 2013 we had no impairment of our reporting unit goodwill balances.
Changes in the carrying amount of goodwill for the nine months ended September 30, 2014 and the year ended December 31, 2013 are reflected in the following table. Goodwill increased during this period due to the two business acquisitions that were made in January and May, and as more fully described in Note 3 "Business Combinations".

 
September 30, 2014
 
December 31, 2013
 
(In thousands)
Beginning Balance
$
337,068

 
$
326,748

Additions
14,353

 
11,136

Foreign currency translation adjustments
(1,166
)
 
(816
)
Ending Balance
$
350,255

 
$
337,068


Finite-lived Intangible Assets—Purchased intangible assets represent the estimated acquisition date fair value of customer relationships, developed technology, trademarks and non-compete agreements obtained in connection with the businesses we acquire. We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows:

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












The carrying value of finite-lived and indefinite-lived intangible assets at September 30, 2014 and December 31, 2013 are as follows:

 
September 30,
2014
 
December 31,
2013
 
(In thousands)
Finite-lived intangible assets:
 
 
 
Customer relationships
$
62,974

 
$
62,408

Developed technology
15,000

 
14,630

Trademarks
2,773

 
2,646

Non-compete agreements
759

 
538

Backlog
140

 
140

Database
212

 
212

Total intangibles
81,858

 
80,574

Accumulated amortization
(35,354
)
 
(29,840
)
Finite-lived intangibles, net
$
46,504

 
$
50,734

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

 
$
30,887


Amortization expense recognized in connection with acquired intangible assets was $1.9 million and $5.6 million for the three and nine months ended September 30, 2014 and $1.9 million and $5.4 million for the three and nine months ended September 30, 2013, respectively.
Foreign Currency Translation—The functional currency for the Company's foreign subsidiaries in India and Singapore is the U.S. dollar because the intellectual property research and development activities provided by its Singapore subsidiary, and the product development and information technology enabled services activities for the insurance industry provided by its India subsidiary, both in support of Ebix's operating divisions across the world, are transacted in U.S. dollars.
The functional currency of the Company's other foreign subsidiaries is the local currency of the country in which the subsidiary operates. The assets and liabilities of these foreign subsidiaries are translated into U.S. dollars at the rates of exchange at the balance sheet dates. Income and expense accounts are translated at the average exchange rates in effect during the period. Gains and losses resulting from translation adjustments are included as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets, and are included in the condensed consolidated statements of comprehensive income. Foreign exchange transaction gains and losses that are derived from transactions denominated in a currency other than the subsidiary's functional currency are included in the determination of net income.
Income Taxes—Deferred income taxes are recorded to reflect the estimated future tax effects of differences between the financial statement and tax basis of assets, liabilities, operating losses, and tax credit carry forwards using the tax rates expected to be in effect when the temporary differences reverse. Valuation allowances, if any, are recorded to reduce deferred tax assets to the amount management considers more likely than not to be realized. Such valuation allowances are recorded for the portion of the deferred tax assets that are not expected to be realized based on the levels of historical taxable income and projections for future taxable income over the periods in which the temporary differences will be deductible.
The Company also applies FASB accounting guidance on accounting for uncertainty in income taxes positions. This guidance clarifies the accounting for uncertainty in income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. In this regard we recognize the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.
Recent Relevant Accounting Pronouncements—The following is a brief discussion of recently released accounting pronouncements that are pertinent to the Company's business:
In May 2014 the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers". ASU 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU.
The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:
Step 1: Identify the contract(s) with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted.
An entity should apply the amendments in this ASU using one of the following two methods:
1. Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients:
•
For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period.
•
For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods.
•
For all reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue.
2. Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. If an entity elects this transition method it also should provide the additional disclosures in reporting periods that include the date of initial application of:
•
The amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change.
•
An explanation of the reasons for significant changes.
The Company will adopt this new accounting standard effective January 1, 2017 and it has not presently determined the impact that the adoption of ASU No. 2014-09 will have on its income statement, balance sheet, or statement of cash flows. Furthermore, the Company has not yet determined the method of retrospective adoption it will use as described in paragraphs 1 and 2 immediately above.
   
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". This accounting standard states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This accounting standards update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The accounting standards update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. This pronouncement should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company adopted this new standard during the interim three-month reporting period ending March 31, 2014, and it materially effected how unrecognized tax benefits were accounted for and presented in the Company's balance sheet.

In February 2013 The FASB has issued Accounting Standards Update (ASU) No. 2013-02, "Comprehensive Income Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income", to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses may later be reclassified out of accumulated other comprehensive income into net income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. The new amendments requires an organization to:
•Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period.
•Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account instead of directly to income or expense.
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual).
The amendments were effective for reporting periods beginning after December 15, 2012 for public companies. Early adoption was permitted. The Company adopted this new standard in 2013 and it did not have effect on its financial statements.
v2.4.0.8
Earnings per Share
 9 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings per Share

A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data):

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
 
(In thousands, except per share data)
Net income for basic and diluted earnings per share
$
18,015

 
$
13,143

 
$
47,011

 
$
44,029

Basic Weighted Average Shares Outstanding
38,050

 
37,919

 
38,264

 
37,435

Dilutive effect of stock options and restricted stock awards
203

 
532

 
235

 
1,241

Diluted weighted average shares outstanding
38,253

 
38,451

 
38,499

 
38,676

Basic earnings per common share
$
0.47

 
$
0.35

 
$
1.23

 
$
1.18

Diluted earnings per common share
$
0.47

 
$
0.34

 
$
1.22

 
$
1.14
v2.4.0.8
Business Combinations
 9 Months Ended
Sep. 30, 2014
Business Combinations [Abstract]  
Business Combinations
Business Combinations
    The Company seeks to execute accretive business acquisitions in combination with organic growth initiatives as part of its comprehensive business growth and expansion strategy. The Company looks to acquire businesses that are complementary to Ebix's existing products and services.
During the nine months ended September 30, 2014, the Company completed two business acquisitions. The first being CurePet, Inc. ("CurePet") effective January 27, 2014. Previously Ebix had a minority investment in CurePet, which is more fully described in Note 9. Ebix acquired the entire business of CurePet in an asset purchase agreement with total purchase consideration being $6.35 million which includes a possible future one time contingent earnout payment of up to $5.0 million based on earned revenues over the subsequent thirty-six month period following the effective date of the acquisition. This contingent earnout liability is currently estimated to have a fair value of $1.6 million. The valuation and purchase price allocation for the CurePet acquisition remains preliminary and will be finalized prior to December 31, 2014.
The other business acquisition completed during the nine months ended September 30, 2014 was HealthCare Magic Private Limited ("HealthCare Magic") which was acquired on May 21, 2014. HealthCare Magic is a medical advisory service with an online network of approximately 15,000 General Physicians and Surgeons spread across 50 specialties including alternative medicine. The Company acquired HealthCare Magic for aggregate cash consideration in the amount of $6.0 million plus a possible future one time contingent earnout payment of up to $12.36 million based on earned revenues over the subsequent twenty-four month period following the effective date of the acquisition. This contingent earnout liability is currently estimated to have a fair value of $4.72 million. The Company funded the HealthCare Magic acquisition from available cash reserves on hand. The valuation and purchase price allocation for the HealthCare Magic acquisition is considered preliminary and will be finalized prior to December 31, 2014.
A significant component of the purchase price consideration for many of the Company's business acquisitions is a potential subsequent cash earnout payment based on reaching certain specified future revenue targets. The Company recognizes these potential obligations as contingent liabilities and are reported accordingly on its Condensed Consolidated Balance Sheets. As discussed in more detail in Note 1, these contingent consideration liabilities are recorded at fair value on the acquisition date and are remeasured quarterly based on the then assessed fair value and adjusted if necessary. During the three months ended September 30, 2014 and 2013 these aggregate contingent accrued earn-out business acquisition consideration liabilities, were reduced by $5.8 million and $4.1 million, respectively, and during the nine months ended September 30, 2014 and 2013 these contingent liabilities were reduced by $7.5 million and $10.3 million, respectively, due to remeasurements as based on the then assessed fair value and changes in anticipated future revenue levels. These reductions to the contingent accrued earn-out liabilities resulted in corresponding reduction to general and administrative expenses as reported on the Condensed Consolidated Statements of Income. As of September 30, 2014, the total of these contingent liabilities was $10.85 million, of which $10.29 million is reported in long-term liabilities, and $564 thousand is included in current liabilities in the Company's Condensed Consolidated Balance Sheet. As of December 31, 2013 the total of these contingent liabilities was $14.42 million, of which $10.28 million is reported in long-term liabilities, and $4.14 million is included in current liabilities in the Company's Condensed Consolidated Balance Sheet.
Consideration paid by the Company for the businesses it purchases is allocated to the assets and liabilities acquired based upon their estimated fair values as of the date of the acquisition. The excess of the purchase price over the estimated fair values of assets acquired and liabilities assumed is recorded as goodwill. Recognized goodwill pertains to the value of the expected synergies to be derived from combining the operations of the businesses we acquire including the value of the acquired workforce.

The aggregated unaudited pro forma financial information pertaining to all of the Company's acquisitions made during the nine months ended September 30, 2013 and September 30, 2014, which includes the acquisitions of Qatarlyst, CurePet, and HealthCare Magic as presented in the table below is provided for informational purposes only and does not project the Company's expected results of operations for any future period. No effect has been given in this pro forma information for future synergistic benefits that may still be realized as a result of combining these companies or costs that may yet be incurred in integrating their operations. The 2014 and 2013 pro forma financial information below assumes that all such business acquisitions were made on January 1, 2013, whereas the Company's reported financial statements for the three and nine months ended September 30, 2014 only include the operating results from the businesses since the effective date that they were acquired by Ebix.

 
Three Months Ended September 30, 2014
 
Three Months Ended September 30, 2013
 
Nine Months Ending September 30, 2014
 
Nine Months Ending September 30, 2013
 
As Reported
Pro Forma
 
As Reported
Pro Forma
 
As Reported
Pro Forma
 
As Reported
Pro Forma
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(In thousands, except per share data)
Revenue
$
50,808

$
50,808

 
$
50,293

$
50,697

 
$
153,688

$
154,227

 
$
153,863

$
154,997

Net Income
$
18,015

$
18,015

 
$
13,143

$
12,587

 
$
47,011

$
46,975

 
$
44,029

$
43,430

Basic EPS
$
0.47

$
0.47

 
$
0.35

$
0.33

 
$
1.23

$
1.23

 
$
1.18

$
1.16

Diluted EPS
$
0.47

$
0.47

 
$
0.34

$
0.33

 
$
1.22

$
1.22

 
$
1.14

$
1.12



In the above table, the unaudited pro forma revenue for the three months ended September 30, 2014 increased by $111 thousand from the unaudited pro forma revenue during the same period in 2013 of $50.7 million to $50.8 million, representing a 0.2% increase. Correspondingly, the reported revenue for the three months ended September 30, 2014 increased by $515 thousand or 1.0% from the reported revenue during the same period in 2013. The unaudited pro forma revenue for the nine months ended September 30, 2014 decreased by $770 thousand from the unaudited pro forma revenue during the same period in 2013 of $155.0 million to $154.2 million, representing a 0.5% decrease. The pro forma revenue decrease was primarily due to exchange rate changes which resulted in a decrease of $2.1 million. Correspondingly, the reported revenue for the nine months ended September 30, 2014 decreased by $175 thousand or 0.1% from the reported revenue during the same period in 2013.
v2.4.0.8
Debt with Commercial Bank
 9 Months Ended
Sep. 30, 2014
Debt Disclosure [Abstract]  
Debt with Commercial Bank
Debt with Commercial Bank

On August 5, 2014, Ebix entered into a credit agreement providing for a $150 million secured syndicated credit facility (the “Regions Secured Syndicated Credit Facility”) with Regions Financial Corporation ("Regions") as administrative agent and Regions with MUFG Union Bank N.A., and Silicon Valley Bank as joint lenders. The financing is comprised of a five-year, $150 million secured revolving credit facility, with an option to expand to $200 million upon request and with additional lender commitments. This new $150 million credit facility with Regions, as administrative agent, replaces the former syndicated $100 million facility that the Company had in place with Citi Bank, N.A. which was paid in full upon the undertaking of this new loan facility with Regions. The initial interest rate applicable to the Secured Syndicated Credit Facility is LIBOR plus 1.75% or currently 1.94%. Under the Regions Secured Syndicated Credit Facility the maximum interest rate that could be charged depending upon the Company's leverage ratio is LIBOR plus 2.25%. The underlying financing agreement contains financial covenants regarding the Company's fixed charge coverage ratio and leverage ratio, as well as certain restrictive covenants pertaining to such matters as the incurrence of new debt and the consummation of new business acquisitions. The Company currently is in compliance with all such financial and restrictive covenants. As of September 30, 2014 the Company's consolidated balance sheet includes $1.37 million of remaining deferred financing costs.


On May 19, 2014, Ebix and certain of its subsidiaries entered into a Third Amendment (the “Third Amendment”) to the Credit Agreement, dated April 26, 2012 (as previously amended), among the Company, Wells Fargo Capital Finance, LLC, as a lender, RBS Citizens, N.A. as a lender, and Citibank, N.A., ("CitiBank") as Administrative Agent and as a lender (the “Credit Agreement”). The Third Amendment amended the Company’s obligations with respect to certain covenants under the Credit Agreement, to provide flexibility to the Company to make certain specified business acquisitions, while allowing the Company to make early payments towards reduction of its bank debt. Furthermore, the Third Amendment amended the Credit Agreement by reducing the revolving commitments of the lenders to $7.84 million as of May 19, 2014, for which the Company made a principal payment in the amount of $15.0 million, and was paid in full on August 5, 2014 upon the undertaking of the aforementioned new loan facility with Regions.

On April 26, 2012, Ebix entered into a credit agreement providing for a $100 million secured syndicated credit facility (the “Secured Syndicated Credit Facility”) with Citibank as administrative agent and Citibank, Wells Fargo Capital Finance, LLC, and RBS Citizens, N.A. as joint lenders. The financing was comprised of a four-year, $45 million secured revolving credit facility, a $45 million secured term loan which amortizes over a four year period with quarterly principal and interest payments that commenced on June 30, 2012 and a final payment of all remaining outstanding principal and accrued interest due on April 26, 2016, and an accordion feature that provides for the expansion of the credit facility by an additional $10 million. The interest rate applicable to the Secured Syndicated Credit Facility is LIBOR plus 1.50% or currently 1.65%. Under the Secured Syndicated Credit Facility the maximum interest rate that could be charged depending upon the Company's leverage ratio is LIBOR plus 2.00%. The credit facility is used by the Company to fund working capital requirements primarily in support of current operations, organic growth, and accretive business acquisitions. The Company incurred $744 thousand of origination costs in connection with this credit facility, and was gong to amortize these costs into interest expense over the four-year life of the credit agreement. As of September 30, 2014 the Company's remaining deferred financing costs in the amount of $310 thousand in connection with that loan were fully amortized and recognized as an expense.
    
At September 30, 2014, the outstanding balance on the revolving line of credit under the Regions Secured Syndicated Credit Facility was $63.47 million and the facility carried an interest rate of 1.94%. During the nine months ended September 30, 2014, $15.0 million payments were made against the revolving line of credit previously with Citibank. The new revolving line of credit balance is included in the long-term liabilities section of the Condensed Consolidated Balance Sheets. During the nine months period ended September 30, 2014, the average and maximum outstanding balances on our revolving line of credit facilities were $23.6 million and $63.5 million, respectively.
    At September 30, 2014, the outstanding balance on the term loan with Citibank was $0 million as it was paid in full upon the undertaking of the aforementioned new loan facility with Regions. During the nine months ended September 30, 2014, $7.6 million of scheduled payments were made against the existing term loan.
v2.4.0.8
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Contingencies-In connection with the shareholder class action styled In re: Ebix, Inc. Securities Litigation, Civil Action No. 1:11-CV-02400-RWS (N.D. Ga.), which as previously disclosed was settled earlier this year and is now concluded, there have been three derivative complaints brought by certain shareholders on behalf of the Company, which name certain of the Company's officers and its entire board of directors as Defendants. The first such derivative action was brought by an alleged shareholder named Paul Nauman styled Nauman v. Raina, et al., Civil Action File No. 2011-cv-205276 (Superior Court of Fulton County, Georgia), filed September 1, 2011. The second such derivative action was brought by an alleged shareholder named Gilbert Spagnola styled Spagnola v. Bhalla, et al., Civil Action No. 1:13-CV-00062-RWS (N.D. Ga.), filed January 7, 2013. The third such derivative action was brought by an alleged shareholder named Hotel Trades Council and Hotel Association of New York City, Inc. Pension Fund styled Hotel Trades Council and Hotel Association of New York City, Inc. Pension Fund v. Raina, et al., Civil Action No. 1:13-CV-00246-RWS (N.D. Ga.), filed January 23, 2013. These derivative actions are based on substantially the same factual allegations in the now settled shareholder class action suit, but also variously claim breach of fiduciary duties, abuse of control, gross mismanagement, the wasting of corporate assets, negligence, unjust enrichment by the Company's directors, and violation of Section 14 of the Exchange Act. The Nauman case was stayed pending the completion of expert discovery in the shareholder class action suit. On April 12, 2013, the Federal Court entered an Order consolidating the Spagnola and Hotel derivative cases under the style In re Ebix, Inc. Derivative Litigation, File No. 1:13-CV-00062- RWS (N.D. Ga.), appointing Hotel Trades Council and Hotel Association of New York City, Inc. Pension Fund as Lead Derivative Plaintiff, and appointing the law firm Cohen Milstein Sellers & Toll PLLC as Lead Derivative Counsel and The Law Offices of David A. Bain LLC as Liaison Counsel. Lead Derivative Plaintiff filed its Consolidated Shareholder Derivative and Class Action Complaint on May 20, 2013. Thereafter, the Federal Court entered a Consent Order on June 4, 2013, setting a schedule for Lead Derivative Plaintiff to amend its Complaint in light of the anticipated preliminary proxy related to a proposed transaction announced on May 1, 2013 with affiliates of Goldman Sachs & Co. On September 23, 2014, following several months of extensive arms-length negotiations, the parties to both the Federal Court and Fulton Superior Court derivative actions entered into a Stipulation of Settlement, which, together with the exhibits annexed thereto, sets forth the terms and conditions for a proposed settlement of both the derivative actions and for dismissal of both the derivative actions with prejudice upon the terms and conditions set forth therein. On September 30, 2014, the Federal Court entered an Order preliminarily approving the proposed settlement. A hearing to determine whether the Federal Court should issue an Order granting final approval of the proposed settlement has been scheduled for December 2, 2014. As part of the settlement, the Company has agreed to adopt, implement, and/or maintain certain corporate governance measures and to pay attorneys’ fees and expenses to Plaintiffs’ Counsel, if such fees and expenses are approved by the Federal Court, in an amount not to exceed $690 thousand.
On December 3, 2012, the Company received a subpoena and letter from the Securities and Exchange Commission (“SEC”) dated November 30, 2012, stating that the SEC is conducting a formal, non-public investigation styled In the Matter of Ebix, Inc. (A-3318) and seeking documents primarily related to the issues raised in the In re: Ebix, Inc. Securities Litigation. On April 16, 2013, the Company received a second subpoena from the SEC seeking additional documents. The Company has cooperated with the SEC to provide the requested documents.
On June 6, 2013, the Company was notified that the U.S. Attorney for the Northern District of Georgia had opened an investigation into allegations of intentional misconduct that had been brought to its attention from the pending shareholder class action lawsuit against the Company's directors and officers, the media and other sources. The Company is cooperating with the U.S. Attorney's office.
Following our announcement on May 1, 2013 of the Company's execution of a merger agreement with affiliates of Goldman Sachs & Co., twelve putative class action complaints challenging the proposed merger were filed in the Delaware Court of Chancery. These complaints name as Defendants some combination of the Company, its directors, Goldman Sachs & Co. and affiliated entities. On June 10, 2013, the twelve complaints were consolidated by the Delaware Court of Chancery, now captioned In re Ebix, Inc. Stockholder Litigation, CA No. 8526-VCN. On June 19, 2013, the Company announced that the merger agreement had been terminated pursuant to a Termination and Settlement Agreement. After Defendants moved to dismiss the consolidated proceeding, Lead Plaintiffs amended their operative complaint to drop their claims against Goldman Sachs & Co. and focus their allegations on an Acquisition Bonus Agreement (“ABA”) between the Company and Robin Raina. On September 26, 2013, Defendants moved to dismiss the Amended Consolidated Complaint. On July 24, 2014, the Court issued its Memorandum Opinion. The only surviving counts are as follows: (i) Counts II and IV, but only to the extent the Plaintiffs seek non-monetary relief for alleged material misstatements related to the ABA base price in the 2010 Proxy Statement; (ii) Count II, but only to the extent it challenges the continued existence of the ABA as an alleged unreasonable anti-takeover device; and, (iii) Count V, but only to the extent that it relates to the compensation the Board received under the Company’s 2010 Stock Incentive Plan. On September 15, 2014, the Court entered an Order implementing its Memorandum Opinion. The parties are presently discussing future case scheduling. The Company denies any liability and intends to defend the action vigorously.
The Company has been sued by Microsoft for alleged copyright infringement, breach of contract, and unjust enrichment. Microsoft Corporation and Microsoft Licensing GP v. Ebix, Inc., Case No. 1:13-CV-01655-CAP (N.D.Ga), filed May 15, 2013. The Company filed a Motion to Dismiss on July 10, 2013. In response, Microsoft filed an Amended Complaint. The Company filed a Motion to Dismiss the Amended Complaint on August 29, 2013. On February 14, 2014, the Court denied the Company’s Motion to Dismiss. The Company cooperated with Microsoft in an audit of all of the Company's Microsoft licenses. The parties have reached a confidential settlement and, on September 18, 2014, filed a Notice of Confidential Settlement in Principle and Stipulated Motion for 45-Day Extension of Time to finalize the various provisions of the settlement, which was granted by Order dated September 19, 2014. On October 13, 2014, the parties filed a Joint Stipulation of Dismissal with prejudice.
The Company is involved in various other claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate likely disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity.
Lease Commitments—The Company leases office space under non-cancelable operating leases with expiration dates ranging through 2019, with various renewal options. Capital leases range from three to five years and are primarily for computer equipment. There were multiple assets under various individual capital leases at September 30, 2014 and 2013. Rental expense for office facilities and certain equipment subject to operating leases for the nine months ended September 30, 2014 and 2013 was $4.9 million and $4.9 million, respectively.
Self Insurance—For most of the Company’s U.S. employees the Company is self-insured for its health insurance program and has a stop loss policy that limits the individual liability to $120 thousand per person and the aggregate liability to 125% of the expected claims based upon the number of participants and historical claims. As of September 30, 2014, the amount accrued on the Company’s Condensed Consolidated Balance Sheet for the self-insured component of the Company’s employee health insurance was $302 thousand. The maximum potential estimated cumulative liability for the annual contract period, which ends in September 2014, is $2.9 million.

v2.4.0.8
Income Taxes
 9 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company's consolidated world-wide effective tax rate reflects the tax benefits of conducting operating activities in  certain foreign jurisdictions where earnings are taxed at rates lower than U.S. statutory rates and where certain components of the Company's income are exempt from taxation. Furthermore, the Company's world-wide product development operations and intellectual property ownership have been centralized into our India and Singapore subsidiaries. Our operations in India benefit from a tax holiday, which will affect are various operating facilities in that country. The tax holiday expired for one of our facilities in April of 2014, and will expire for our other facilities in the years 2015 through 2018. As such a significant component of the income generated by our India operations, other than passive interest  income, is not taxed. After the expiration of the full tax holiday all of the income generated by our India operations will be taxed at 50% of the normal 33.99% corporate tax rate for a period of five years. The Company also has a relatively low income tax rate in Singapore wherein our operations are taxed at a 10% tax rate as a result of concessions granted by the local Singapore Economic Development Board for the benefit of in-country intellectual property owners. The concessionary 10% income tax rate will expire after 2015, at which time our Singapore operations will be subject to the prevailing corporate tax rate in Singapore, which is currently 17%, unless the Company reaches a subsequent agreement to extend the incentive period and the then applicable concessionary rate or possibly secure a lower concessionary tax rate.
The Company recognized total income tax expense in the amount of $11.55 million for the nine months ended September 30, 2014. The Company's interim period income tax provisions are based on a calculated estimate of the effective income tax rate expected to be applicable to the corresponding annual period, after eliminating discrete items unique to the respective interim period being reported. The Company's interim period tax provision, exclusive of discrete items, for this nine month period during 2014 was an expense of $5.12 million which is reflective of a 9.95% effective tax rate, as compared to the 8.98%, also exclusive of discrete items, for the same period during 2013. The effective rate increased primarily due to increased taxable income from jurisdictions with higher tax rates. The discrete items recognized during the nine months ended September 30, 2014 were $9.34 million of tax expense recorded to increase the reserve for potential uncertain tax positions, partially offset by a $2.62 million benefit associated with reconciling the tax payable liability accounts for certain of our foreign subsidiaries to the income tax returns filed in those jurisdictions, and a $0.29 million benefit associated with the utilization of net operating loss carryforwards from our operations in the United Kingdom.
At September 30, 2014, the Company had remaining available domestic net operating loss (“NOL”) carry-forwards of approximately $46.0 million which are available to offset future U.S. federal and certain state income taxes. In addition the Company has approximately $42.0 million of NOL's available in the United Kingdom related to the acquisition of Qatarlyst to offset future taxable income in that country. There is currently a full valuation allowance set up against 100% of these NOL’s in the United Kingdom. The Company reviews its NOL positions to validate that all NOL carry-forwards will be utilized before they begin to expire in 2020.
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With the exception of NOL carry-forwards, the Company is no longer subject to U.S. federal or state tax examinations by tax authorities for years before 2007 due to the expiration of the statute of limitations. There is an open federal income tax audit for taxable years 2008 through 2011. In connection with this open audit, the Company has responded to all information requests from the IRS. There has been no formal identification of deficiencies or assessments to date. Regarding our foreign operations as of December 31, 2013, the tax years that remain open and possibly subject to examination by the tax authorities in those jurisdictions are Australia (2007 to 2013), Singapore and Brazil (2009 to 2013), New Zealand (2011 to 2013), India (2010 to 2013) and Great Britain (2012 and 2013).
Accounting for Uncertainty in Income Taxes—The Company has applied the FASB’s accounting guidance on accounting for uncertain income tax positions. As of September 30, 2014 the Company’s Condensed Consolidated Balance Sheet includes a liability of $22.08 million for unrecognized tax benefits which is included in other long term liabilities before applying the offset provision required by the application of Notice 2013-11. During the nine months ended September 30, 2014 there were $9.34 million of additions to this liability reserve. A reconciliation of the beginning and ending amounts of the Company’s liability reserves for unrecognized tax benefits is as follows:
 
September 30, 2014
 
December 31, 2013
 
(in thousands)
Beginning Balance
$
12,742

 
$
5,925

Additions for tax positions related to current year
263

 
6,546

Additions for tax positions of prior years
9,074

 
271

Reductions for tax position of prior years
—

 
—

Ending Balance
$
22,079

 
$
12,742


The Company recognizes interest accrued and penalties related to unrecognized tax benefits as part of income tax expense. As of September 30, 2014 and December 31, 2013 approximately $2.54 million and $1.05 million, respectively, of estimated interest and penalties is also included in other long term liabilities in the accompanying Condensed Consolidated Balance Sheet, and is part of the balance of the liability for unrecognized tax benefits in the above table.
         
The Company has applied the new provisions under FAS update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, A Similar Tax Loss, or a Tax Credit Carryforward Exists. Under these provisions, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward in most cases. This provision has been applied and $6.50 million and $8.42 million of unrecognized tax benefits have been applied against NOL carryforward amounts as of September 30, 2014 and December 31, 2013, respectively.
v2.4.0.8
Derivative Instruments
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
Derivative Instruments
    In connection with the acquisition of PlanetSoft effective June 1, 2012, Ebix issued a put option to PlanetSoft's three shareholders. The put option, which expired on July 9, 2014, was exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, which if exercised would enable the PlanetSoft shareholders to sell the underlying 296,560 shares of Ebix common stock they received as part of the purchase consideration, back to the Company at a price of $16.86 per share, which represents the per-share value established on the effective date of the closing of Ebix's acquisition of PlanetSoft. In accordance with the relevant authoritative accounting literature a portion of the total purchase consideration was allocated to this put liability based on its initial fair value, which was determined to be $1.4 million using a Black-Scholes model. The inputs used in the valuation of the put option include term, stock price volatility, current stock price, exercise price, and the risk free rate of return. The Company has classified the put option, for which the fair value is re-measured on a recurring basis at each reporting date, as a Level 2 instrument (i.e. wherein fair value is partially determined and based on observable inputs other than quoted market prices), which we believe is the most appropriate level within the fair value hierarchy based on the inputs used to determine its fair value at the measurement date. During the months of July and August 2014 the former shareholders of PlanetSoft elected to exercise their put option rights with respect to the remaining 209,656 shares of Ebix common stock they still held. Accordingly the shareholders put those shares back to the Company at $16.86 per share plus interest at the rate of 20% as per the PlanetSoft acquisition agreement. The total consideration, which included one month of interest, paid by the Company in connection with the exercise of these put options was $3.6 million.
v2.4.0.8
Geographic Information
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Geographic Information
Geographic Information
The Company operates with one reportable segment whose results are regularly reviewed by the Company's chief operating decision maker as to performance and allocation of resources. External customer revenues in the tables below are attributed to a particular country based on whether the customer had a direct contract with the Company which was executed in that particular country for the sale of the Company's products/services with an Ebix subsidiary located in that country.
The following enterprise wide information relates to the Company's geographic locations (all amounts in thousands):
As of and for the Nine Months Ended September 30, 2014
 
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe
 
Total
External Revenues
$
103,225

 
$
4,206

 
$
4,961

 
$
28,247

 
$
3,194

 
$
2,008

 
$
1,112

 
$
6,735

 
$
153,688

Long-lived assets
$
316,810

 
$
8,233

 
$
10,391

 
$
652

 
$
68,113

 
$
77

 
$
38,625

 
$
27,286

 
$
470,187


As of and for the Nine Months Ended September 30, 2013
 
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe
 
Total
External Revenues
$
105,471

 
$
4,977

 
$
4,205

 
$
28,955

 
$
2,301

 
$
1,702

 
$
540

 
$
5,712

 
$
153,863

Long-lived assets
$
310,481

 
$
9,247

 
$
11,488

 
$
817

 
$
69,281

 
$
107

 
$
19,319

 
$
28,145

 
$
448,885
v2.4.0.8
Minority Business Investment
 9 Months Ended
Sep. 30, 2014
Investments, All Other Investments [Abstract]  
Minority Business Investment
Minority Business Investment

In 2012, Ebix acquired a minority 19.8% interest in CurePet for cash consideration in the amount of $2.0 million. CurePet was a developmental-stage enterprise that developed an insurance exchange that connects pet owners, referring veterinarians, animal hospitals, academic institutes, and suppliers of medical and general pet supplies, while providing a wide variety of services related to pet insurance to each constituent including practice management, electronic medical records, and billing. CurePet had  previously been a customer of Ebix; during nine months ended September 30, 2013 the Company recognized $1.2 million from CurePet, and as of December 31, 2013 there were $1.4 million of outstanding receivable balances due from CurePet in the Company's reported trade accounts receivable. Ebix also had a revenue share arrangement with CurePet pertaining to certain customer revenues recognized by CurePet, and the Company had the option of forgoing said revenue share arrangement in exchange for an additional 20.0% equity interest. The Company had been accounting for its minority investment in CurePet using the cost method. Based on this independent evaluation it was concluded that the fair value of this minority business investment was greater than the Company's carrying value of the investment, and therefore the investment was not impaired as of December 31, 2013. Also as disclosed in Note 3 "Business Combinations," effective January 27, 2014 Ebix acquired the entire business of CurePet in an asset purchase agreement with the total purchase consideration being in the amount of $6.35 million which includes a possible contingent earnout payment of up to $5.0 million based on earned revenues over the subsequent thirty-six month period following the date of the acquisition. This contingent earnout liability is currently estimated to have a fair value of $1.6 million. During the nine months ended September 30, 2014 the CurePet business generated $325 thousand of revenue which is included in the Company’s consolidated revenues reported for the same period.
v2.4.0.8
Temporary Equity
 9 Months Ended
Sep. 30, 2014
Temporary Equity Disclosure [Abstract]  
Temporary Equity [Text Block]
Temporary Equity

The $5.0 million of temporary equity reported on the Company's condensed consolidated balance sheet as of December 31, 2013 is in connection with the June 2012 acquisition of PlanetSoft. As part of the consideration paid for PlanetSoft in accordance with terms of the merger agreement the former PlanetSoft shareholders received 296,560 shares of Ebix common stock valued at $16.86 per share or $5.0 million in the aggregate. In regard to these shares of Ebix common stock, and as discussed in Note 7 "Derivative Instruments," the Company issued a put option to PlanetSoft's three shareholders. The put option, which expired on July 9, 2014, was exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, and which if exercised would enable the PlanetSoft shareholders to sell the underlying 296,560 shares of Ebix common stock they received as part of the purchase consideration, back to the Company at a price of $16.86 per share, which represents the per-share value established on the effective date of the closing of Ebix's acquisition of PlanetSoft. Accordingly and in compliance with Accounting Standards Codification ("ASC") 480 "Accounting for Redeemable Equity Instruments," given that the common stock is redeemable for cash at the option of the holders and not within control of the Company, it was presented outside of the stockholders equity section of the Condensed Consolidated Balance Sheet, and is shown as a separate line referred to as "temporary equity" appearing after liabilities, and before the stockholder's equity section. In July and August 2014 the former shareholders of PlanetSoft elected to exercise their put option rights with respect to the remaining 209,656 shares of Ebix common stock they still held. Accordingly the shareholders have since put those shares back to the Company at $16.86 per share plus interest at the rate of 20% for the period after the exercise until the cash consideration was paid by the Company, as per the PlanetSoft acquisition agreement. The total consideration, which included interest, paid by the Company in connection with the exercise of these put options was $3.6 million.
v2.4.0.8
Other Liabilities (Notes)
 9 Months Ended
Sep. 30, 2014
Other Liabilities Disclosure [Abstract]  
Other Liabilities Disclosure [Text Block]
Other Liabilities

Other liabilities at September 30, 2014 and December 31, 2013 consisted of the following:

 
September 30, 2014
 
December 31, 2013
 
(In thousands)
Reserve for potential uncertain income tax return positions
$
22,079

 
$
12,742

Unfavorable lease liability, long term portion
319

 
394

Portion of an unrecognized tax benefit netted against deferred tax asset for a net operating loss carryforward
$
(6,504
)
 
$
(8,422
)
Other
1

 
5

Total
$
15,895

 
$
4,719
v2.4.0.8
Subsequent Events (Notes)
 9 Months Ended
Sep. 30, 2014
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
Note 12: Subsequent Events

Repurchases of Common Stock
Since September 30, 2014 and through November 10, 2014 the Company has re-purchased an additional 473,910 shares of its outstanding common stock for aggregate cash consideration in the amount of $6.5 million and at an average rate of $13.71 per share. All share repurchases were done in accordance with Rule 10b-18 of the Securities Act of 1934 as to the timing, pricing, and volume of such transactions, and were funded from available cash resources, cash generated from the Company's operating activities, and draws from the Company's revolving line of credit with our syndicated commercial banking facility.
Business Acquisition
Effective November 3, 2014 Ebix acquired Connecticut based Vertex, Incorporated ("Vertex") in a share purchase agreement for total cash purchase consideration in the amount of $27 million and a possible contingent earnout of $2 million based on earned revenues over the subsequent twelve month period following the date of the acquisition. Vertex is a specialized software and services firm focused primarily on the life and annuity insurance marketplace since 1991. Ebix's goal with this business acquisition is to establish a non-aligned worldwide strategic management consulting practice targeted at the insurance, healthcare and financial industries all across the world. Under the terms of the agreement, Ebix acquired all of the outstanding capital stock of Vertex and funded the purchase using a mix of internal cash reserves and the bank credit line available to Ebix, with no Ebix shares being issued.
v2.4.0.8
Description of Business and Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation—The accompanying unaudited condensed consolidated financial statements and these notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the effect of inter-company balances and transactions eliminated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP and SEC rules have been condensed or omitted as permitted by and pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements contain adjustments (consisting only of normal recurring items) necessary to fairly present the consolidated financial position of the Company and its consolidated results of operations and cash flows. Operating results for the nine months ended September 30, 2014 and 2013 are not necessarily indicative of the results that may be expected for the full year. The condensed consolidated December 31, 2013 balance sheet included in this interim period filing has been derived from the audited financial statements at that date but does not necessarily include all of the information and related notes required by GAAP for complete financial statements. These condensed interim financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
Fair Value of Financial Instruments
Fair Value of Financial Instrument—The Company follows the relevant GAAP guidance concerning fair value measurements which provides a consistent framework to define, measure, and disclose the fair value of assets and liabilities in financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction. This guidance establishes a three-level hierarchy priority for disclosure of assets and liabilities recorded at fair value. The ordering of priority reflects the degree to which objective data from external active markets are available to measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable.
•
Level 1 Inputs - Unadjusted quoted prices available in active markets for identical investments to the reporting entity at the measurement date
•
Level 2 Inputs - Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
•
Level 3 Inputs - Unobservable inputs, which are used to the extent that observable inputs are not available, and used in situations where there is little or no market activity for the asset or liability and wherein the reporting entity makes estimates and assumptions related to the pricing of the asset or liability including assumptions regarding risk.

     A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

As of September 30, 2014 the Company had the following financial instruments to which it had to consider fair values and had to make fair assessments:
•
Short-term investments for which the fair values are measured as a Level 1 instrument.
•
Contingent accrued earn-out business acquisition consideration liabilities for which fair values are measured as Level 3 instruments. These contingent consideration liabilities were recorded at fair value on the acquisition date and are remeasured quarterly based on the then assessed fair value and adjusted if necessary. The increases or decreases in the fair value of contingent consideration payable can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3.
Revenue Recognition
Revenue Recognition—The Company derives its revenues primarily from subscription and transaction fees pertaining to services delivered over our exchanges or from our ASP platforms, fees for risk compliance solution services, and fees for software development projects including associated fees for consulting, implementation, training, and project management provided to customers with installed systems and applications. Sales and value-added taxes are not included in revenues, but rather are recorded as a liability until the taxes assessed are remitted to the respective taxing authorities.
In accordance with Financial Accounting Standard Board (“FASB”) and SEC accounting guidance on revenue recognition, the Company considers revenue earned and realizable when: (a) persuasive evidence of the sales arrangement exists, provided that the arrangement fee is fixed or determinable, (b) delivery or performance has occurred, (c) customer acceptance has been received or is assured, if contractually required, and (d) collectability of the arrangement fee is probable. The Company uses signed contractual agreements as persuasive evidence of a sales arrangement. We apply the provisions of the relevant generally accepted accounting principles related to all transactions involving the license of software where the software deliverables are considered more than inconsequential to the other elements in the arrangement.
For contracts that contain multiple deliverables, we analyze the revenue arrangements in accordance with the relevant technical accounting guidance, which provides criteria governing how to determine whether goods or services that are delivered separately in a bundled sales arrangement should be considered as separate units of accounting for the purpose of revenue recognition. These types of arrangements include deliverables pertaining to software licenses, system set-up, and professional services associated with product customization or modification. Delivery of the various contractual elements typically occurs over periods of less than eighteen months. These arrangements generally do not have refund provisions or have very limited refund terms.
Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by FASB using the percentage-of-completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee.
Goodwill and Other Indefinite-Lived Intangible Assets
Goodwill and Other Indefinite-Lived Intangible Assets—Goodwill represents the cost in excess of the fair value of the net assets of acquired businesses. Indefinite-lived intangible assets represent the fair value of certain acquired contractual customer relationships for which future cash flows are expected to continue indefinitely. In accordance with the relevant FASB accounting guidance, goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment at the reporting unit level on an annual basis or on an interim basis if an event occurs or circumstances change that would likely have reduced the fair value of a reporting unit below its carrying value. Potential impairment indicators include a significant change in the business climate, legal factors, operating performance indicators, competition, and the sale or disposition of a significant portion of the business. The impairment evaluation process involves an assessment of certain qualitative factors to determine whether the existence of events or circumstances would indicate that it is more likely than not that the fair value of any of our reporting units was less than its carrying amount. If after assessing the totality of events or circumstances, we were to determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company would not perform the two-step quantitative impairment testing described further below.
The aforementioned two-step quantitative testing process involves comparing the reporting unit carrying values to their respective fair values; we determine fair value of our reporting units by applying the discounted cash flow method using the present value of future estimated net cash flows. If the fair value of a reporting unit exceeds its carrying value, then no further testing is required. However, if a reporting unit's fair value were to be less than its carrying value, we would then determine the amount of the impairment charge, if any, which would be the amount that the carrying value of the reporting unit's goodwill exceeded its implied value. Projections of cash flows are based on our views of growth rates, operating costs, anticipated future economic conditions and the appropriate discount rates relative to risk and estimates of residual values. We believe that our estimates are consistent with assumptions that marketplace participants would use in their estimates of fair value. The use of different estimates or assumptions for our projected discounted cash flows (e.g., growth rates, future economic conditions, discount rates and estimates of terminal values) when determining the fair value of our reporting units could result in different values and may result in a goodwill impairment charge. We perform our annual goodwill impairment evaluation and testing as of September 30th of each year. This evaluation is done during the fourth quarter each year. During the year ended December 31, 2013 we had no impairment of our reporting unit goodwill balances.
Finite-lived Intangible Assets
Finite-lived Intangible Assets—Purchased intangible assets represent the estimated acquisition date fair value of customer relationships, developed technology, trademarks and non-compete agreements obtained in connection with the businesses we acquire. We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows:

Category
 
Life (yrs)
Customer relationships
 
7-20
Developed technology
 
3–12
Trademarks
 
3–15
Non-compete agreements
 
5
Database
 
10
Foreign Currency Translation
Foreign Currency Translation—The functional currency for the Company's foreign subsidiaries in India and Singapore is the U.S. dollar because the intellectual property research and development activities provided by its Singapore subsidiary, and the product development and information technology enabled services activities for the insurance industry provided by its India subsidiary, both in support of Ebix's operating divisions across the world, are transacted in U.S. dollars.
The functional currency of the Company's other foreign subsidiaries is the local currency of the country in which the subsidiary operates. The assets and liabilities of these foreign subsidiaries are translated into U.S. dollars at the rates of exchange at the balance sheet dates. Income and expense accounts are translated at the average exchange rates in effect during the period. Gains and losses resulting from translation adjustments are included as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets, and are included in the condensed consolidated statements of comprehensive income. Foreign exchange transaction gains and losses that are derived from transactions denominated in a currency other than the subsidiary's functional currency are included in the determination of net income.
Income Taxes
Income Taxes—Deferred income taxes are recorded to reflect the estimated future tax effects of differences between the financial statement and tax basis of assets, liabilities, operating losses, and tax credit carry forwards using the tax rates expected to be in effect when the temporary differences reverse. Valuation allowances, if any, are recorded to reduce deferred tax assets to the amount management considers more likely than not to be realized. Such valuation allowances are recorded for the portion of the deferred tax assets that are not expected to be realized based on the levels of historical taxable income and projections for future taxable income over the periods in which the temporary differences will be deductible.
The Company also applies FASB accounting guidance on accounting for uncertainty in income taxes positions. This guidance clarifies the accounting for uncertainty in income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. In this regard we recognize the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.
Recent Relevant Accounting Pronouncements
Recent Relevant Accounting Pronouncements—The following is a brief discussion of recently released accounting pronouncements that are pertinent to the Company's business:
In May 2014 the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers". ASU 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU.
The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:
Step 1: Identify the contract(s) with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted.
An entity should apply the amendments in this ASU using one of the following two methods:
1. Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients:
•
For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period.
•
For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods.
•
For all reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue.
2. Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. If an entity elects this transition method it also should provide the additional disclosures in reporting periods that include the date of initial application of:
•
The amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change.
•
An explanation of the reasons for significant changes.
The Company will adopt this new accounting standard effective January 1, 2017 and it has not presently determined the impact that the adoption of ASU No. 2014-09 will have on its income statement, balance sheet, or statement of cash flows. Furthermore, the Company has not yet determined the method of retrospective adoption it will use as described in paragraphs 1 and 2 immediately above.
   
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". This accounting standard states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This accounting standards update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The accounting standards update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. This pronouncement should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company adopted this new standard during the interim three-month reporting period ending March 31, 2014, and it materially effected how unrecognized tax benefits were accounted for and presented in the Company's balance sheet.

In February 2013 The FASB has issued Accounting Standards Update (ASU) No. 2013-02, "Comprehensive Income Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income", to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses may later be reclassified out of accumulated other comprehensive income into net income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. The new amendments requires an organization to:
•Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period.
•Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account instead of directly to income or expense.
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual).
The amendments were effective for reporting periods beginning after December 15, 2012 for public companies. Early adoption was permitted. The Company adopted this new standard in 2013 and it did not have effect on its financial statements.
v2.4.0.8
Description of Business and Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
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 three and nine months ended September 30, 2014 and 2013.

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
(dollar amounts in thousands)
 
2014
 
2013
 
2014
 
2013
Exchanges
 
$
41,757

 
$
40,554

 
$
125,212

 
$
122,741

Broker Systems
 
4,511

 
4,390

 
13,862

 
13,878

Risk Compliance Solutions (“RCS”), fka Business Process Outsourcing (“BPO”)
 
3,346

 
3,604

 
10,423

 
11,781

Carrier Systems
 
1,194

 
1,745

 
4,191

 
5,463

Totals
 
$
50,808

 
$
50,293

 
$
153,688

 
$
153,863
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, September 30, 2014
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
 
$
1,326

$
1,326

$
—

$
—

Total assets measured at fair value
 
$
1,326

$
1,326

$
—

$
—

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Derivatives:
 
 
 
 
 
Contingent accrued earn-out acquisition consideration (a)
 
10,850

—

—

10,850

Total liabilities measured at fair value
 
$
10,850

$
—

$
—

$
10,850

 
 
 
 
 
 
(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 nine months ended September 30, 2014 there were no transfers between fair value Levels 1, 2 or 3.


 
 
Fair Values at Reporting Date Using*
Descriptions
 
Balance, December 31, 2013
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
 
$
801

801

$
—

$
—

Total assets measured at fair value
 
$
801

$
801

$
—

$
—

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Derivatives:
 
 
 
 
 
Common share-based put option (b)
 
$
845

$
—

845

$
—

Contingent accrued earn-out acquisition consideration (a)
 
14,420

—

—

14,420

Total liabilities measured at fair value
 
$
15,265

$
—

$
845

$
14,420

 
 
 
 
 
 
(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.
(b) In connection with the acquisition of PlanetSoft effective June 1, 2012, Ebix issued a put option to the PlanetSoft's three shareholders. The put option, which expired in July 9, 2014, was exercisable during the thirty-day period immediately following the two-year anniversary date of the closing of the business acquisition, which if exercised would enable the PlanetSoft shareholders to sell the underlying 296,560 shares of Ebix common stock they received as part of the purchase consideration, back to the Company at a price of $16.86 per share. The inputs used in the valuation of the put option include term, stock price volatility, current stock price, exercise price, and the risk free rate of return. During the months of July and August 2014 the former shareholders of PlanetSoft elected to exercise their put option rights with respect to the remaining 209,656 shares of Ebix common stock they still held. Accordingly the shareholders put those shares back to the Company at $16.86 per share plus interest at the rate of 20% as per the PlanetSoft acquisition agreement. The total consideration paid by the Company in connection with the exercise of these put options was $3.6 million.
* During the twelve months ended December 31, 2013 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, 2014 and during the year ended December 31, 2013:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Contingent Liability for Accrued Earn-out Acquisition Consideration
 
Balance, September 30, 2014
Balance, December 31, 2013
 
 
(in thousands)
 
 
 
 
Beginning balance
 
$
14,420

$
17,495

 
 
 
 
Total remeasurement adjustments:
 
 
 
       (Gains) or losses included in earnings **
 
(7,533
)
(10,253
)
       Foreign currency translation adjustments ***
 
(228
)
730

 
 
 
 
Acquisitions and settlements
 
 
 
       Business acquisitions
 
6,441

9,425

       Settlement payments
 
(2,250
)
(2,977
)
 
 
 
 
Ending balance
 
$
10,850

$
14,420

 
 
 
 
The amount of total (gains) or losses for the period included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at period-end.
 
$
(6,540
)
$
(9,954
)
 
 
 
 
** recorded as an adjustment to reported general and administrative expenses
 
*** recorded as a component of other comprehensive income within stockholders' equity
 
Quantitative Information about Level 3 Fair Value Measurements
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, 2014
 
             Valuation Technique
 
Significant Unobservable
Input
Contingent acquisition consideration:
(TriSystems, Qatarlyst, CurePet, and HealthCare Magic acquisitions)
 
$10,850
 
Discounted cash flow
 
Projected revenue and probability of achievement

  
 
 
 
 
 
 
(in thousands)
 
Fair Value at December 31, 2013
 
             Valuation Technique
 
Significant Unobservable
Input
Contingent acquisition consideration:
(Taimma, Planetsoft, TriSystems, and Qatarlyst acquisitions)
 
$14,420
 
Discounted cash flow
 
Projected revenue and probability of achievement
Schedule of Goodwill
Changes in the carrying amount of goodwill for the nine months ended September 30, 2014 and the year ended December 31, 2013 are reflected in the following table. Goodwill increased during this period due to the two business acquisitions that were made in January and May, and as more fully described in Note 3 "Business Combinations".

 
September 30, 2014
 
December 31, 2013
 
(In thousands)
Beginning Balance
$
337,068

 
$
326,748

Additions
14,353

 
11,136

Foreign currency translation adjustments
(1,166
)
 
(816
)
Ending Balance
$
350,255

 
$
337,068
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)
Customer relationships
 
7-20
Developed technology
 
3–12
Trademarks
 
3–15
Non-compete agreements
 
5
Database
 
10
Schedule of Intangible Assets, Excluding Goodwill
The carrying value of finite-lived and indefinite-lived intangible assets at September 30, 2014 and December 31, 2013 are as follows:

 
September 30,
2014
 
December 31,
2013
 
(In thousands)
Finite-lived intangible assets:
 
 
 
Customer relationships
$
62,974

 
$
62,408

Developed technology
15,000

 
14,630

Trademarks
2,773

 
2,646

Non-compete agreements
759

 
538

Backlog
140

 
140

Database
212

 
212

Total intangibles
81,858

 
80,574

Accumulated amortization
(35,354
)
 
(29,840
)
Finite-lived intangibles, net
$
46,504

 
$
50,734

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

 
$
30,887
v2.4.0.8
Earnings per Share (Tables)
 9 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Diluted
A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data):

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
 
(In thousands, except per share data)
Net income for basic and diluted earnings per share
$
18,015

 
$
13,143

 
$
47,011

 
$
44,029

Basic Weighted Average Shares Outstanding
38,050

 
37,919

 
38,264

 
37,435

Dilutive effect of stock options and restricted stock awards
203

 
532

 
235

 
1,241

Diluted weighted average shares outstanding
38,253

 
38,451

 
38,499

 
38,676

Basic earnings per common share
$
0.47

 
$
0.35

 
$
1.23

 
$
1.18

Diluted earnings per common share
$
0.47

 
$
0.34

 
$
1.22

 
$
1.14
v2.4.0.8
Business Combinations (Tables)
 9 Months Ended
Sep. 30, 2014
Business Combinations [Abstract]  
Business Acquisition, Pro Forma Information
 
Three Months Ended September 30, 2014
 
Three Months Ended September 30, 2013
 
Nine Months Ending September 30, 2014
 
Nine Months Ending September 30, 2013
 
As Reported
Pro Forma
 
As Reported
Pro Forma
 
As Reported
Pro Forma
 
As Reported
Pro Forma
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(In thousands, except per share data)
Revenue
$
50,808

$
50,808

 
$
50,293

$
50,697

 
$
153,688

$
154,227

 
$
153,863

$
154,997

Net Income
$
18,015

$
18,015

 
$
13,143

$
12,587

 
$
47,011

$
46,975

 
$
44,029

$
43,430

Basic EPS
$
0.47

$
0.47

 
$
0.35

$
0.33

 
$
1.23

$
1.23

 
$
1.18

$
1.16

Diluted EPS
$
0.47

$
0.47

 
$
0.34

$
0.33

 
$
1.22

$
1.22

 
$
1.14

$
1.12
v2.4.0.8
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amounts of the Company’s liability reserves for unrecognized tax benefits is as follows:
 
September 30, 2014
 
December 31, 2013
 
(in thousands)
Beginning Balance
$
12,742

 
$
5,925

Additions for tax positions related to current year
263

 
6,546

Additions for tax positions of prior years
9,074

 
271

Reductions for tax position of prior years
—

 
—

Ending Balance
$
22,079

 
$
12,742
v2.4.0.8
Geographic Information (Tables)
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Schedule of Revenue by Geographic Locations
The following enterprise wide information relates to the Company's geographic locations (all amounts in thousands):
As of and for the Nine Months Ended September 30, 2014
 
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe
 
Total
External Revenues
$
103,225

 
$
4,206

 
$
4,961

 
$
28,247

 
$
3,194

 
$
2,008

 
$
1,112

 
$
6,735

 
$
153,688

Long-lived assets
$
316,810

 
$
8,233

 
$
10,391

 
$
652

 
$
68,113

 
$
77

 
$
38,625

 
$
27,286

 
$
470,187


As of and for the Nine Months Ended September 30, 2013
 
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe
 
Total
External Revenues
$
105,471

 
$
4,977

 
$
4,205

 
$
28,955

 
$
2,301

 
$
1,702

 
$
540

 
$
5,712

 
$
153,863

Long-lived assets
$
310,481

 
$
9,247

 
$
11,488

 
$
817

 
$
69,281

 
$
107

 
$
19,319

 
$
28,145

 
$
448,885
v2.4.0.8
Description of Business and Summary of Significant Accounting Policies (Segment Reporting) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
ProductService_Groups
Sep. 30, 2013
Accounting Policies [Abstract]        
Total revenue, international percentage     32.80% 31.50%
Number of product/service groups     4  
Segment Reporting Information [Line Items]        
Document Period End Date     Sep. 30, 2014  
Operating revenue $ 50,808 $ 50,293 $ 153,688 $ 153,863
Exchanges [Member]
        
Segment Reporting Information [Line Items]        
Operating revenue 41,757 40,554 125,212 122,741
Broker Systems [Member]
        
Segment Reporting Information [Line Items]        
Operating revenue 4,511 4,390 13,862 13,878
RCS [Member]
        
Segment Reporting Information [Line Items]        
Operating revenue 3,346 3,604 10,423 11,781
Carrier Systems [Member]
        
Segment Reporting Information [Line Items]        
Operating revenue $ 1,194 $ 1,745 $ 4,191 $ 5,463
v2.4.0.8
Description of Business and Summary of Significant Accounting Policies (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Assets [Abstract]    
Total assets measured at fair value $ 1,326 [1] $ 801 [1]
Liabilities [Abstract]    
Total liabilities measured at fair value 10,850 [1] 15,265 [1]
Fair Value, Inputs, Level 1 [Member]
    
Assets [Abstract]    
Total assets measured at fair value 1,326 [1] 801 [1]
Fair Value, Inputs, Level 2 [Member]
    
Liabilities [Abstract]    
Total liabilities measured at fair value 0 [1] 845 [1]
Fair Value, Inputs, Level 3 [Member]
    
Liabilities [Abstract]    
Total liabilities measured at fair value 10,850 [1] 14,420 [1]
Common share-based put option [Member]
    
Liabilities [Abstract]    
Derivative liabilities   845 [1]
Common share-based put option [Member] | Fair Value, Inputs, Level 2 [Member]
    
Liabilities [Abstract]    
Derivative liabilities   845 [1]
Contingent accrued earn-out acquisition consideration [Member]
    
Liabilities [Abstract]    
Derivative liabilities 10,850 [1],[2] 14,420 [1],[2]
Contingent accrued earn-out acquisition consideration [Member] | Fair Value, Inputs, Level 3 [Member]
    
Liabilities [Abstract]    
Derivative liabilities 10,850 [1],[2] 14,420 [1],[2]
Certificates of Deposit [Member]
    
Assets [Abstract]    
Available-for-sale securities 1,326 [1] 801 [1]
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]
    
Assets [Abstract]    
Available-for-sale securities $ 1,326 [1] $ 801 [1]
[1] During the nine months ended September 30, 2014 and the year ended December 31, 2013 there were no transfers between fair value levels 1, 2, or 3.
[2] 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.
v2.4.0.8
Description of Business and Summary of Significant Accounting Policies (Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs) (Details) (USD $)
 9 Months Ended 12 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation:    
Beginning balance $ 14,420,000 $ 17,495,000
(Gains) or losses included in earnings (7,533,000) [1] (10,253,000) [1]
Foreign currency translation adjustments (228,000) [2] 730,000 [2]
Business acquisitions 6,441,000 9,425,000
Settlements (2,250,000) (2,977,000)
Ending balance 10,850,000 14,420,000
The amount of total (gains) or losses for the period included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at period-end. $ (6,540,000) $ (9,954,000)
[1] Recorded as an adjustment to reported general and administrative expenses
[2] Recorded as a component of other comprehensive income within stockholders' equity
v2.4.0.8
Description of Business and Summary of Significant Accounting Policies (Fair Value Textuals) (Details) (USD $)
 9 Months Ended 0 Months Ended 1 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Dec. 31, 2012
Jun. 02, 2012
Planetsoft [Member]
Stockholders
Jun. 30, 2012
Planetsoft [Member]
Jun. 02, 2012
Fair Value, Measurements, Recurring [Member]
Planetsoft [Member]
Fair Value, Inputs, Level 2 [Member]
Accounting Policies [Abstract]            
Fair Value Inputs, Discount Rate 1.75%          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]            
Derivative Liability $ 10,850,000 $ 14,420,000 $ 17,495,000      
Number of shareholders       3    
Put option, exercise period       30 days    
Put option, vesting period required prior to exercise       2 years 2 years  
Business acquisition, number of common shares issued       296,560    
Business acquisition, price per share       $ 16.86    
Put option liability           $ 1,400,000
v2.4.0.8
Description of Business and Summary of Significant Accounting Policies (Accounts Receivables and Allowances) (Details) (USD $)
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Accounts receivable $ 38,361,000   $ 38,361,000   $ 39,070,000
Allowance for doubtful accounts 1,609,000   1,609,000   1,049,000
Deferred revenue included in accounts receivables 7,500,000   7,500,000    
Provision for doubtful accounts 336,000 834,000 1,083,000 1,361,000  
Billed Revenues [Member]
          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Accounts receivable 29,400,000   29,400,000    
Unbilled Revenues [Member]
          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Accounts receivable $ 10,600,000   $ 10,600,000    
Maximum [Member]
          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Delivery term for contractual elements of revenue arrangements     18 months    
v2.4.0.8
Description of Business and Summary of Significant Accounting Policies (Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified
 9 Months Ended 12 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Business Combination Segment Allocation [Line Items]    
Document Period End Date Sep. 30, 2014  
Goodwill [Roll Forward]    
Beginning Balance $ 337,068 $ 326,748
Additions, net 14,353 11,136
Foreign currency translation adjustments (1,166) (816)
Ending Balance $ 350,255 $ 337,068
Curepet, Inc. and Healthcare Magic [Member]
    
Business Combination Segment Allocation [Line Items]    
Number of businesses acquired 2  
v2.4.0.8
Description of Business and Summary of Significant Accounting Policies (Finite-lived Intangible Assets) (Details) (USD $)
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Document Period End Date     Sep. 30, 2014    
Finite-lived intangible assets, gross $ 81,858,000   $ 81,858,000   $ 80,574,000
Finite-lived intangible assets, accumulated amortization (35,354,000)   (35,354,000)   (29,840,000)
Finite-lived intangible assets, net 46,504,000   46,504,000   50,734,000
Amortization of Acquired Intangible Assets 1,900,000 1,900,000 5,600,000 5,400,000  
Customer Relationships [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible assets, gross 62,974,000   62,974,000   62,408,000
Customer Relationships [Member] | Minimum [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible asset, useful life     7 years    
Customer Relationships [Member] | Maximum [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible asset, useful life     20 years    
Developed technology [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible assets, gross 15,000,000   15,000,000   14,630,000
Developed technology [Member] | Minimum [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible asset, useful life     3 years    
Developed technology [Member] | Maximum [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible asset, useful life     12 years    
Trademarks [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible assets, gross 2,773,000   2,773,000   2,646,000
Trademarks [Member] | Minimum [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible asset, useful life     3 years    
Trademarks [Member] | Maximum [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible asset, useful life     15 years    
Non-compete agreements [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible assets, gross 759,000   759,000   538,000
Non-compete agreements [Member] | Maximum [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible asset, useful life     5 years    
Backlog [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible assets, gross 140,000   140,000   140,000
Database [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible assets, gross 212,000   212,000   212,000
Database [Member] | Maximum [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Finite-lived intangible asset, useful life     10 years    
Customer/territorial relationships [Member]
          
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]          
Indefinite-lived intangible assets $ 30,887,000   $ 30,887,000   $ 30,887,000
v2.4.0.8
Earnings per Share (Reconciliation between Basic and Diluted Earnings per Share) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Earnings Per Share [Abstract]        
Net income for basic and diluted earnings per share $ 18,015 $ 13,143 $ 47,011 $ 44,029
Basic weighted average shares outstanding 38,050 37,919 38,264 37,435
Dilutive effect of stock options and restricted stock awards 203 532 235 1,241
Diluted weighted average shares outstanding 38,253 38,451 38,499 38,676
Basic earnings per common share $ 0.47 $ 0.35 $ 1.23 $ 1.18
Diluted earnings per common share $ 0.47 $ 0.34 $ 1.22 $ 1.14
v2.4.0.8
Business Combinations (Narrative) (Details) (USD $)
 0 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended
May 21, 2014
General_Physicians_and_Surgeons
ProductService_Groups
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Dec. 31, 2012
Sep. 30, 2014
Curepet, Inc. and Healthcare Magic [Member]
Companies
Jan. 27, 2014
Curepet, Inc. [Member]
Sep. 30, 2014
Curepet, Inc. [Member]
Jun. 02, 2012
Planetsoft [Member]
Jun. 30, 2012
Planetsoft [Member]
May 21, 2014
Healthcare Magic [Member]
Jun. 02, 2012
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Planetsoft [Member]
Sep. 30, 2014
Contingent Accrued Earn-out Acquisition Consideration [Member]
Dec. 31, 2013
Contingent Accrued Earn-out Acquisition Consideration [Member]
Jan. 27, 2014
Maximum [Member]
Curepet, Inc. [Member]
May 21, 2014
Maximum [Member]
Healthcare Magic [Member]
Business Acquisition [Line Items]                                    
Document Period End Date       Sep. 30, 2014                            
Payments to Acquire Businesses, Gross                         $ 6,000,000          
Number of businesses acquired               2                    
Purchase Price of Business Acquisition, Cost of Acquired Entity                 6,350,000                  
Reduction of acquisition earnout accruals   (5,771,000) (4,139,000) (7,533,000) (10,253,000)                          
Derivative Liability   10,850,000   10,850,000   14,420,000 17,495,000   5,000,000 1,600,000     4,700,000   10,850,000 14,420,000 5,000,000 12,400,000
Derivative, Term of Contract                 36 months 0 days       24 months 0 days          
Business acquisition, contingent consideration, at fair value, noncurrent   10,286,000   10,286,000   10,283,000                 10,300,000 10,300,000    
Business acquisition, contingent consideration, at fair value, current   564,000   564,000   4,137,000                 600,000 4,100,000    
Business acquisition, number of common shares issued                     296,560              
Business acquisition, price per share                     $ 16.86              
Share subscribed for business acquisition, Value                     5,000,000              
Put option, exercise period                     30 days              
Put option, vesting period required prior to exercise                     2 years 2 years            
Put option liability                           1,400,000        
Goodwill   $ 350,255,000   $ 350,255,000   $ 337,068,000 $ 326,748,000                      
General Physicians and Surgeons participating in online network providing medical advisory service 15,000                                  
Medical specialties including alternative medicine 50                                  
v2.4.0.8
Business Combinations (Pro Forma) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Business Acquisition, Pro Forma Information        
Revenue $ 50,808 $ 50,293 $ 153,688 $ 153,863
Net income 18,015 13,143 47,011 44,029
Basic EPS $ 0.47 $ 0.35 $ 1.23 $ 1.18
Diluted EPS $ 0.47 $ 0.34 $ 1.22 $ 1.14
Revenue, Net, Increase (Decrease) 515   (175)  
Revenue, Net, Increase (Decrease), Percentage 1.00%   (0.10%)  
Parent, Qatarlyst, Curepet , Healthcare Magic Combined [Member]
        
Business Acquisition, Pro Forma Information        
Revenue, pro forma 50,808 50,697 154,227 154,997
Net income, pro forma 18,015 12,587 46,975 43,430
Basic EPS, pro forma $ 0.47 $ 0.33 $ 1.23 $ 1.16
Diluted EPS, pro forma $ 0.47 $ 0.33 $ 1.22 $ 1.12
Business Acquisition, Pro Forma Revenue, Increase (Decrease) 111   (770)  
Business Acquisition, Pro Forma Revenue, Increase (Decrease), Percentage 0.20%   (0.50%)  
Impact of Currency Rates [Member]
        
Business Acquisition, Pro Forma Information        
Revenue, Net, Increase (Decrease)     $ 2,100  
v2.4.0.8
Debt with Commercial Bank (Narrative) (Details) (USD $)
 9 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Secured Syndicated Credit Facility [Member]
Regions Bank [Member]
Aug. 05, 2014
Secured Syndicated Credit Facility [Member]
Regions Bank [Member]
Sep. 30, 2014
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Sep. 30, 2014
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Apr. 26, 2012
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Aug. 05, 2014
Secured Syndicated Credit Facility [Member]
Revolving Credit Facility [Member]
Regions Bank [Member]
Sep. 30, 2014
Secured Syndicated Credit Facility [Member]
Revolving Credit Facility [Member]
Regions Bank [Member]
Apr. 26, 2012
Secured Syndicated Credit Facility [Member]
Revolving Credit Facility [Member]
Citi Bank [Member]
Sep. 30, 2014
Secured Syndicated Credit Facility [Member]
Revolving Credit Facility [Member]
Citi Bank [Member]
May 19, 2014
Secured Syndicated Credit Facility [Member]
Revolving Credit Facility [Member]
Citi Bank [Member]
Apr. 26, 2012
Secured Term Loan [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Sep. 30, 2014
Secured Term Loan [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Aug. 05, 2014
Minimum [Member]
Secured Syndicated Credit Facility [Member]
Regions Bank [Member]
Apr. 26, 2012
Minimum [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Aug. 05, 2014
Mid-range [Member]
Secured Syndicated Credit Facility [Member]
Regions Bank [Member]
Sep. 30, 2014
Mid-range [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Aug. 05, 2014
Maximum [Member]
Secured Syndicated Credit Facility [Member]
Regions Bank [Member]
Apr. 26, 2012
Maximum [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Line of Credit Facility [Line Items]                                        
Document Period End Date Sep. 30, 2014                                      
Amortization of Financing Costs         $ 310                              
Debt instrument, face amount       150,000,000     100,000,000           45,000,000              
Debt Instrument, Term               5 years                        
Line of credit facility, term                   4 years                    
Credit agreement, maximum borrowing capacity               150,000,000   45,000,000                    
Credit agreement, amortization period                         4 years              
Line of Credit Facility, Expansion               200,000,000   10,000,000                    
Description of variable interest rate basis           LIBOR                            
Basis spread on variable interest rate                             1.75% 1.50% 1.94% 1.65% 2.25% 2.00%
Deferred Costs, Credit Card Origination Costs, Amount     1,370,000       744,000                          
Credit agreement, amount outstanding                 63,465,000     7,840,000                
Line of credit, interest rate at period end                     1.94%                  
Principal payments of debt obligations (336,000) (636,000)                 (15,000,000)     (7,600,000)            
Credit agreement, average amount outstanding during period                     23,600,000                  
Credit agreement, maximum amount outstanding during period                     63,500,000                  
Long-term Debt                           $ 0            
v2.4.0.8
Commitments and Contingencies (Narrative) (Details) (USD $)
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Commitments and Contingencies [Line Items]        
Non-operating expense - securities litigation $ (350,000) $ (4,226,000) $ (350,000) $ (4,226,000)
Document Period End Date     Sep. 30, 2014  
Rent expense, operating leases     4,900,000 4,900,000
Self-insured health insurance, liability 302,000   302,000  
Maximum [Member]
        
Commitments and Contingencies [Line Items]        
Self-insured health insurance limit, per person     120,000  
Self-insured health Insurance, aggregate liability based on participants and claims (percentage)     125.00%  
Self-insured health insurance, estimated cumulative liability for annual contract 2,900,000   2,900,000  
Computer Equipment [Member] | Minimum [Member]
        
Commitments and Contingencies [Line Items]        
Capital lease obligation, term     3 years  
Computer Equipment [Member] | Maximum [Member]
        
Commitments and Contingencies [Line Items]        
Capital lease obligation, term     5 years  
Ebix, Inc. Securities Litigation [Member]
        
Commitments and Contingencies [Line Items]        
Loss Contingency, Damages Sought, Value $ 690,000      
v2.4.0.8
Income Taxes (Narrative) (Details) (USD $)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Dec. 31, 2012
Operating Loss Carryforwards [Line Items]            
Income tax expense $ 4,010,000 $ 1,133,000 $ 11,547,000 $ 6,751,000    
Effective income tax rate     9.95% 8.98%    
Unrecognized Tax Benefits 22,079,000   22,079,000   12,742,000 5,925,000
Unrecognized tax benefits, period increase (decrease)     9,337,000 3,405,000    
Unrecognized tax benefits, income tax penalties and interest expense     2,540,000   1,050,000  
India [Member]
            
Operating Loss Carryforwards [Line Items]            
Foreign tax holiday (percentage)     50.00%      
Foreign statutory income tax rate     33.99%      
Foreign income tax holiday, term     5 years      
Singapore [Member]
            
Operating Loss Carryforwards [Line Items]            
Foreign statutory income tax rate     17.00%      
Foreign effective income tax rate     10.00%      
UNITED KINGDOM
            
Operating Loss Carryforwards [Line Items]            
Operating Loss Carryforwards 42,000,000   42,000,000      
United States
            
Operating Loss Carryforwards [Line Items]            
Operating Loss Carryforwards $ 46,000,000   $ 46,000,000      
v2.4.0.8
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $)
In Thousands, unless otherwise specified
 9 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Income Tax Disclosure [Abstract]      
Document Period End Date Sep. 30, 2014    
Unrecognized tax benefit netted against a deferred tax asset for a net operating loss carryforward $ (6,504)   $ (8,422)
Unrecognized tax benefits, period increase (decrease) 9,337 3,405  
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning Balance 12,742 5,925 5,925
Additions for tax positions related to current year 263   6,546
Additions for tax positions of prior years 9,074   271
Reductions for tax position of prior years 0   0
Ending Balance $ 22,079   $ 12,742
v2.4.0.8
Income Taxes Income Taxes (Details) (USD $)
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Operating Loss Carryforwards [Line Items]        
Current Income Tax Expense (Benefit)     $ 5,120,000  
Unrecognized tax benefits, period increase (decrease)     9,337,000 3,405,000
Other Tax Expense (Benefit)     2,620,000  
Income tax expense 4,010,000 1,133,000 11,547,000 6,751,000
Document Period End Date     Sep. 30, 2014  
UNITED KINGDOM
        
Operating Loss Carryforwards [Line Items]        
Operating Loss Carryforwards, International, Utilized     (290,000)  
Operating Loss Carryforwards $ 42,000,000   $ 42,000,000  
v2.4.0.8
Derivative Instruments (Narrative) (Details) (USD $)
 9 Months Ended 0 Months Ended 1 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Jun. 02, 2012
Planetsoft [Member]
Jun. 30, 2012
Planetsoft [Member]
Sep. 30, 2014
Planetsoft [Member]
Jun. 02, 2012
Planetsoft [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Derivative [Line Items]            
Put option, exercise period     30 days      
Put option, vesting period required prior to exercise     2 years 2 years    
Shares that may be repurchased under put option     296,560      
Put option, price to repurchase shares     $ 16.86      
Put option liability           $ 1,400,000
Change in fair value of put option 296,000 (1,250,000)        
Stock Redeemed or Called During Period, Shares         209,656  
Temporary Equity, Redemption Price Per Share         $ 16.86  
Derivative, Fixed Interest Rate         20.00%  
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Current         $ 3,600,000  
v2.4.0.8
Geographic Information (Revenue by Geographic Locations) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Reportable_Segments
Sep. 30, 2013
Segment Reporting [Abstract]        
Number of reportable segments     1  
Revenues from External Customers and Long-Lived Assets [Line Items]        
External Revenues $ 50,808 $ 50,293 $ 153,688 $ 153,863
Long-lived assets 470,187 448,885 470,187 448,885
United States
        
Revenues from External Customers and Long-Lived Assets [Line Items]        
External Revenues     103,225 105,471
Long-lived assets 316,810 310,481 316,810 310,481
Canada
        
Revenues from External Customers and Long-Lived Assets [Line Items]        
External Revenues     4,206 4,977
Long-lived assets 8,233 9,247 8,233 9,247
Latin America
        
Revenues from External Customers and Long-Lived Assets [Line Items]        
External Revenues     4,961 4,205
Long-lived assets 10,391 11,488 10,391 11,488
Australia
        
Revenues from External Customers and Long-Lived Assets [Line Items]        
External Revenues     28,247 28,955
Long-lived assets 652 817 652 817
Singapore
        
Revenues from External Customers and Long-Lived Assets [Line Items]        
External Revenues     3,194 2,301
Long-lived assets 68,113 69,281 68,113 69,281
New Zealand
        
Revenues from External Customers and Long-Lived Assets [Line Items]        
External Revenues     2,008 1,702
Long-lived assets 77 107 77 107
India
        
Revenues from External Customers and Long-Lived Assets [Line Items]        
External Revenues     1,112 540
Long-lived assets 38,625 19,319 38,625 19,319
Europe
        
Revenues from External Customers and Long-Lived Assets [Line Items]        
External Revenues     6,735 5,712
Long-lived assets $ 27,286 $ 28,145 $ 27,286 $ 28,145
v2.4.0.8
Minority Business Investment (Narrative) (Details) (USD $)
 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Dec. 31, 2012
Jun. 30, 2012
Curepet, Inc. [Member]
Sep. 30, 2013
Curepet, Inc. [Member]
Sep. 30, 2014
Curepet, Inc. [Member]
Jan. 27, 2014
Curepet, Inc. [Member]
Dec. 31, 2013
Curepet, Inc. [Member]
Sep. 30, 2014
Curepet, Inc. [Member]
Jan. 27, 2014
Curepet, Inc. [Member]
Schedule of Cost-method Investments [Line Items]                          
Cost Method Investment, Ownership Percentage             19.80%            
Payments to Acquire Other Investments             $ 2,000,000            
Document Period End Date     Sep. 30, 2014                    
Revenue 50,808,000 50,293,000 153,688,000 153,863,000       1,200,000       325,000  
Due from related parties, current                     1,400,000    
Additional Equity Investment Arrangement             20.00%            
Purchase Price of Business Acquisition, Cost of Acquired Entity                   6,350,000     6,350,000
Derivative Liability $ 10,850,000   $ 10,850,000   $ 14,420,000 $ 17,495,000     $ 1,600,000 $ 5,000,000   $ 1,600,000 $ 5,000,000
v2.4.0.8
Temporary Equity (Narrative) (Details) (Planetsoft [Member], USD $)
In Millions, except Share data, unless otherwise specified
 0 Months Ended 1 Months Ended 9 Months Ended
Jun. 02, 2012
Stockholders
Jun. 30, 2012
Sep. 30, 2014
Planetsoft [Member]
      
Temporary Equity [Line Items]      
Share subscribed for business acquisition, Value $ 5.0    
Business acquisition, number of common shares issued 296,560    
Business acquisition, price per share $ 16.86    
Number of shareholders 3    
Put option, exercise period 30 days    
Put option, vesting period required prior to exercise 2 years 2 years  
Shares that may be repurchased under put option 296,560    
Put option, price to repurchase shares $ 16.86    
Stock Redeemed or Called During Period, Shares     209,656
Temporary Equity, Redemption Price Per Share     $ 16.86
Derivative, Fixed Interest Rate     20.00%
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Current     $ 3.6
v2.4.0.8
Other Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Dec. 31, 2012
Other Liabilities Disclosure [Abstract]      
Unrecognized Tax Benefits $ 22,079 $ 12,742 $ 5,925
Off-market Lease, Unfavorable 319 394  
Unrecognized tax benefit netted against a deferred tax asset for a net operating loss carryforward (6,504) (8,422)  
Other Liabilities 1 5  
Other liabilities $ 15,895 $ 4,719  
v2.4.0.8
Subsequent Events (Details) (USD $)
 1 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended
Nov. 10, 2014
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Dec. 31, 2012
Aug. 05, 2014
Secured Syndicated Credit Facility [Member]
Regions Bank [Member]
Apr. 26, 2012
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Aug. 05, 2014
Revolving Credit Facility [Member]
Secured Syndicated Credit Facility [Member]
Regions Bank [Member]
Apr. 26, 2012
Revolving Credit Facility [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Aug. 05, 2014
Minimum [Member]
Secured Syndicated Credit Facility [Member]
Regions Bank [Member]
Apr. 26, 2012
Minimum [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Aug. 05, 2014
Mid-range [Member]
Secured Syndicated Credit Facility [Member]
Regions Bank [Member]
Sep. 30, 2014
Mid-range [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Aug. 05, 2014
Maximum [Member]
Secured Syndicated Credit Facility [Member]
Regions Bank [Member]
Apr. 26, 2012
Maximum [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Nov. 03, 2014
Vertex [Member]
Sep. 30, 2014
Planetsoft [Member]
Subsequent Event [Line Items]                                  
Debt instrument, face amount           $ 150,000,000 $ 100,000,000                    
Line of Credit Facility, Expansion               200,000,000 10,000,000                
Credit agreement, maximum borrowing capacity               150,000,000 45,000,000                
Line of credit facility, term                 4 years                
Basis spread on variable interest rate                   1.75% 1.50% 1.94% 1.65% 2.25% 2.00%    
Stock Redeemed or Called During Period, Shares                                 209,656
Temporary Equity, Redemption Price Per Share                                 $ 16.86
Derivative, Fixed Interest Rate                                 20.00%
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Current                                 3,600,000
Stock Repurchased During Period, Shares 473,910                                
Payments for Repurchase of Common Stock 6,500,000 16,482,000 2,492,000                            
Common Stock, Dividends, Per Share, Cash Paid $ 13.71                                
Payments to Acquire Businesses, Gross                               27,000,000  
Derivative Liability   $ 10,850,000   $ 14,420,000 $ 17,495,000                     $ 2,000,000