v2.4.0.6
Document and Entity Information Document (USD $)
 12 Months Ended
Dec. 31, 2012
Mar. 15, 2013
Jun. 30, 2012
Entity Information [Line Items]      
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-K    
Document Period End Date Dec. 31, 2012    
Document Fiscal Year Focus 2012    
Document Fiscal Period Focus FY    
Amendment Flag false    
Entity Common Stock, Shares Outstanding   37,147,313  
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Public Float     $ 464,704,986
v2.4.0.6
Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Operating revenue $ 199,370 $ 168,969 $ 132,188
Operating expenses:      
Costs of services provided 38,133 33,589 29,599
Product development 24,825 19,208 13,607
Sales and marketing 16,687 13,642 6,372
General and administrative 33,562 26,268 24,065
Amortization and depreciation 9,155 7,514 6,038
Total operating expenses 122,362 100,221 79,681
Operating income 77,008 68,748 52,507
Interest income 441 557 519
Interest expense (1,541) (759) (902)
Other non-operating income 190 647 6,319
Foreign exchange gain 1,931 4,302 1,211
Income before income taxes 78,029 73,495 59,654
Income tax provision (7,460) (2,117) (635)
Net income $ 70,569 $ 71,378 $ 59,019
Basic earnings per common share (in dollars per share) $ 1.91 $ 1.89 $ 1.69
Diluted earnings per common share (in dollars per share) $ 1.80 $ 1.75 $ 1.51
Basic weighted average shares outstanding (in shares) 36,948 37,742 34,845
Diluted weighted average shares outstanding (in shares) 39,100 40,889 39,018
v2.4.0.6
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Net income $ 70,569 $ 71,378 $ 59,019
Other comprehensive income (loss):      
Foreign currency translation adjustments (2,394) (11,403) 6,530
Total other comprehensive income (loss) (2,394) (11,403) 6,530
Comprehensive income $ 68,175 $ 59,975 $ 65,549
v2.4.0.6
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Current assets:    
Cash and cash equivalents $ 36,449 $ 23,696
Short-term investments 971 1,505
Trade accounts receivable, less allowances of $1,157 and $1,719, respectively 37,298 31,133
Deferred tax asset, net 1,835 2,981
Other current assets 5,116 4,502
Total current assets 81,669 63,817
Property and equipment, net 10,082 8,834
Goodwill 326,748 259,218
Intangibles, net 52,591 38,386
Indefinite-lived intangibles 30,887 30,453
Deferred tax asset, net 11,245 9,412
Other assets 3,724 1,062
Total assets 516,946 411,182
Current liabilities:    
Accounts payable and accrued liabilities 15,497 11,129
Accrued payroll and related benefits 5,431 5,034
Short term debt 11,344 6,667
Contingent liability for accrued earn-out acquisition consideration 3,265 7,590
Current portion of long term debt and capital lease obligation, net of discount of $13 and $0, respectively 915 165
Deferred revenue 19,888 16,460
Current deferred rent 237 266
Other current liabilities 113 2,468
Total current liabilities 56,690 49,779
Revolving line of credit 37,840 31,750
Other long term debt and capital lease obligation, less current portion, net of discount of $78 and $0, respectively 31,592 8,468
Contingent liability for accrued earn-out acquisition consideration 14,230 0
Put option liability 1,186 0
Deferred revenue 375 328
Long term deferred rent 1,449 939
Other liabilities 6,429 3,803
Total liabilities 149,791 95,067
Commitments and Contingencies      
Temporary Equity, Redemption Value 5,000 0
Stockholders’ equity:    
Convertible Series D Preferred stock, $.10 par value, 500,000 shares authorized, no shares issued and outstanding at December 31, 2012 and 2011 0 0
Common stock, $.10 par value, 60,000,000 shares authorized, 37,131,777 issued and 37,091,268 outstanding at December 31, 2012 and 36,418,385 issued and 36,377,876 outstanding at December 31, 2011 3,709 3,638
Additional paid-in capital 164,346 179,518
Treasury stock (40,509 shares as of December 31, 2012 and December 31, 2011) (76) (76)
Retained earnings 201,094 137,559
Accumulated other comprehensive loss (6,918) (4,524)
Total stockholders’ equity 362,155 316,115
Total liabilities, temporary equity and stockholders’ equity $ 516,946 $ 411,182
v2.4.0.6
Consolidated Balance Sheets (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Current Assets:    
Allowance for doubtful accounts $ 1,157 $ 1,719
Unamortized debt discount, current 13 0
Unamortized debt discount, noncurrent $ 78 $ 0
Stockholders' Equity:    
Preferred stock, par value (per share) $ 0.1 $ 0.1
Preferred stock, shares authorized 500,000 500,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (per share) $ 0.1 $ 0.1
Common stock, shares authorized 60,000,000 60,000,000
Common stock, shares issued 37,131,777 36,418,385
Common stock, shares outstanding 37,091,268 36,377,876
Treasury stock, shares 40,509 40,509
v2.4.0.6
Consolidated Statements Stockholders' Equity (USD $)
Total
Common Stock
Treasury Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning Balance, Value at Dec. 31, 2009 $ 170,743,000 $ 3,443,000 $ (76,000) $ 158,404,000 $ 8,623,000 $ 349,000
Beginning Balance, Issued Shares at Dec. 31, 2009   34,474,608        
Beginning Balance, Treasury Shares at Dec. 31, 2009     (40,509)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 59,019,000       59,019,000  
Cumulative translation adjustment 6,530,000         6,530,000
Exercise of stock options, Shares   1,252,785        
Exercise of stock options, Value 1,236,000 125,000   1,111,000    
Stock Repurchased and Retired During Period, Shares   (669,978)        
Stock Repurchased and Retired During Period, Value (10,650,000) (67,000)   (10,583,000)    
Stock Issued During Period, Shares, Conversion of Convertible Securities   760,040        
Stock Issued During Period, Value, Conversion of Convertible Securities 1,712,000 76,000   1,636,000    
Deferred compensation and amortization related to options and restricted stock 1,850,000     1,850,000    
Share subscribed for business acquisition, Value 828,000     828,000    
Vesting of restricted stock, Shares   240,336        
Vesting of restricted stock, Value 0 25,000   (25,000)    
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested 0          
Dividends paid 0          
Ending Balance, Value at Dec. 31, 2010 231,268,000 3,602,000 (76,000) 153,221,000 67,642,000 6,879,000
Ending Balance, Issued Shares at Dec. 31, 2010   36,057,791        
Ending Balance, Treasury Shares at Dec. 31, 2010     (40,509)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 71,378,000       71,378,000  
Cumulative translation adjustment (11,403,000)         (11,403,000)
Exercise of stock options, Shares   69,509        
Exercise of stock options, Value 51,000 8,000   43,000    
Stock Repurchased and Retired During Period, Shares   (3,510,973)        
Stock Repurchased and Retired During Period, Value (63,659,000) (351,000)   (63,308,000)    
Stock Issued During Period, Value, Conversion of Convertible Securities (1,851,000)     (1,851,000)    
Deferred compensation and amortization related to options and restricted stock 2,205,000     2,205,000    
Share subscribed for business acquisition, Shares   3,650,914        
Share subscribed for business acquisition, Value 87,476,000 365,000   87,111,000    
APIC adjustment for stock options 2,111,000     2,111,000    
Vesting of restricted stock, Shares   151,144        
Vesting of restricted stock, Value 0 14,000   (14,000)    
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested 0          
Dividends paid (1,461,000)       (1,461,000)  
Ending Balance, Value at Dec. 31, 2011 316,115,000 3,638,000 (76,000) 179,518,000 137,559,000 (4,524,000)
Ending Balance, Issued Shares at Dec. 31, 2011 36,418,385 36,418,385        
Ending Balance, Treasury Shares at Dec. 31, 2011     (40,509)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 70,569,000       70,569,000  
Cumulative translation adjustment (2,394,000)         (2,394,000)
Exercise of stock options, Shares   1,361,542        
Exercise of stock options, Value 1,020,000 137,000   883,000    
Stock Repurchased and Retired During Period, Shares   (983,818)        
Stock Repurchased and Retired During Period, Value (18,374,000) (99,000)   (18,275,000)    
Deferred compensation and amortization related to options and restricted stock 2,083,000     2,083,000    
Share subscribed for business acquisition, Shares   296,560        
Share subscribed for business acquisition, Value 0 30,000   (30,000)    
APIC adjustment for stock options 1,162,000     1,162,000    
Vesting of restricted stock, Shares   89,308        
Vesting of restricted stock, Value 0 8,000   (8,000)    
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested, Shares   (50,200)        
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested (992,000) (5,000)   (987,000)    
Dividends paid (7,034,000)       (7,034,000)  
Ending Balance, Value at Dec. 31, 2012 $ 362,155,000 $ 3,709,000 $ (76,000) $ 164,346,000 $ 201,094,000 $ (6,918,000)
Ending Balance, Issued Shares at Dec. 31, 2012 37,131,777 37,131,777        
Ending Balance, Treasury Shares at Dec. 31, 2012     (40,509)      
v2.4.0.6
Consolidated Statements of Cash Flow (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Net income $ 70,569,000 $ 71,378,000 $ 59,019,000
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization 9,155,000 7,514,000 6,038,000
Provision for doubtful accounts 442,000 976,000 1,143,000
Provision for deferred taxes (4,760,000) (5,727,000) (2,753,000)
Unrealized foreign exchange (gain)/losses on forward contracts 0 2,346,000 (1,304,000)
Unrealized foreign exchange (gain)/losses 443,000 (5,795,000) (598,000)
Unrealized gain on put option (191,000) (537,000) (6,059,000)
Share-based compensation 2,083,000 2,205,000 1,850,000
Debt discount amortization on convertible debt 39,000 21,000 327,000
Reduction of acquisition earn-out contingent liability (699,000) (2,847,000) (1,500,000)
Changes in current assets and liabilities, net of acquisitions:      
Accounts receivable (2,023,000) (2,903,000) (3,018,000)
Other assets (371,000) 1,647,000 (955,000)
Accounts payable and accrued expenses 730,000 1,525,000 (356,000)
Accrued payroll and related benefits (594,000) (532,000) 165,000
Deferred rent (132,000) (261,000) (125,000)
Other liabilities (2,384,000) 836,000 (61,000)
Deferred revenue (12,000) 796,000 (35,000)
Net cash provided by operating activities 72,295,000 70,642,000 51,778,000
Cash flows from investing activities:      
Purchases of marketable securities (785,000) (3,098,000) (11,507,000)
Maturities of marketable securities 1,466,000 7,600,000 7,006,000
Capital expenditures (1,965,000) (2,829,000) (1,754,000)
Net cash used in investing activities (63,375,000) (13,320,000) (24,406,000)
Cash flows from financing activities:      
Proceeds from / (Repayment) to line of credit, net 6,090,000 6,750,000 1,900,000
Proceeds from term loan 45,000,000 16,250,000 10,157,000
Proceeds from the issuance of note payable 161,000 0 0
Principal payments on term loan obligation (19,125,000) (6,407,000) (5,000,000)
Repurchase of common stock (18,374,000) (63,659,000) (10,650,000)
Settlement on conversion of convertible debt 0 (6,761,000) (22,521,000)
Payments of long term debt (600,000) 0 0
Payments for capital lease obligations (284,000) (300,000) (804,000)
Excess tax benefit from share-based compensation 1,044,000 644,000 1,001,000
Proceeds from exercise of common stock options 1,020,000 51,000 1,236,000
Forfeiture of certain shares to satisfy exercise costs and the recipients income tax obligations related to stock options exercised and restricted stock vested (992,000) 0 0
Dividends paid (7,034,000) (1,461,000) 0
Net cash provided (used) by financing activities 6,906,000 (54,893,000) (24,681,000)
Effect of foreign exchange rates on cash and cash equivalents (3,073,000) (2,130,000) 1,479,000
Net change in cash and cash equivalents 12,753,000 299,000 4,170,000
Cash and cash equivalents at the beginning of the year 23,696,000 23,397,000 19,227,000
Cash and cash equivalents at the end of the year 36,449,000 23,696,000 23,397,000
Supplemental disclosures of cash flow information:      
Interest paid 1,350,000 710,000 526,000
Income taxes paid 8,590,000 3,796,000 2,396,000
BSI [Member]
      
Cash flows from investing activities:      
Payments to Acquire Businesses, Net of Cash Acquired (992,000) 0  
Taimma [Member]
      
Cash flows from investing activities:      
Payments to Acquire Businesses, Net of Cash Acquired (5,003,000) 0  
Fintechnix [Member]
      
Cash flows from investing activities:      
Payments to Acquire Businesses, Net of Cash Acquired (4,713,000) 0  
Planetsoft [Member]
      
Adjustments to reconcile net income to cash provided by operating activities:      
Unrealized gain on put option (191,000)    
Cash flows from investing activities:      
Payments to Acquire Businesses, Net of Cash Acquired (35,078,000) 0  
TriSystems [Member]
      
Cash flows from investing activities:      
Payments to Acquire Businesses, Net of Cash Acquired (9,277,000) 0  
Curepet, Inc. [Member]
      
Cash flows from investing activities:      
Payments to Acquire Investments (2,000,000) 0 0
ADAM
      
Cash flows from investing activities:      
Investment, net of cash acquired 0 3,529,000 0
MCN
      
Cash flows from investing activities:      
Investment, net of cash acquired (1,537,000) (381,000) (2,931,000)
Trades Monitor [Member]
      
Cash flows from investing activities:      
Investment, net of cash acquired 0 0 (2,749,000)
Connective Technologies [Member]
      
Cash flows from investing activities:      
Investment, net of cash acquired 0 0 (1,337,000)
USIX [Member]
      
Cash flows from investing activities:      
Investment, net of cash acquired (1,466,000) 0 (7,131,000)
E Trek [Member]
      
Cash flows from investing activities:      
Investment, net of cash acquired 0 0 (1,011,000)
Health Connect Systems [Member]
      
Cash flows from investing activities:      
Investment, net of cash acquired (2,000,000) (17,945,000) 0
ConfirmNet
      
Cash flows from investing activities:      
Investment, net of cash acquired 0 (184,000) (2,975,000)
Periculum [Member]
      
Cash flows from investing activities:      
Investment, net of cash acquired 0 0 (6,000)
Facts [Member]
      
Cash flows from investing activities:      
Investment, net of cash acquired $ (25,000) $ (12,000) $ (11,000)
v2.4.0.6
Supplemental Schedule of Noncash Financing Activities
 12 Months Ended
Dec. 31, 2012
Supplemental Cash Flow Elements [Abstract]  
Supplemental Schedule of Noncash Financing Activities
Supplemental schedule of noncash financing activities:
Effective June 1, 2012, Ebix acquired PlanetSoft, Inc. for aggregate consideration in the amount of $40.0 million. Under terms of the merger agreement, the former PlanetSoft shareholders received, as part of the aggregate purchase consideration, 296,560 shares of Ebix common stock with a fair value of $5.0 million.
        
Effective February 7, 2011, Ebix acquired ADAM, Inc. for aggregate consideration in the approximate amount of $88.4 million. Under the terms of the merger agreement, all of the ADAM shareholders received 3.65 million shares of Ebix common stock with a fair value of $87.5 million as part of the purchase consideration.
During 2010 Whitebox VSC, Ltd and IAM Mini-Fund 14 Limited elected to fully convert all of their August 26, 2009 Convertible Promissory Notes. The Company settled these conversion elections by paying $20 million in cash with respect to the principal component, paying $2.5 million in cash for a portion of the conversion spread (that being the excess of the conversion value over the related original principal component), and issuing 283,378 shares of Ebix common stock for the remainder of the conversion spread.
During the year ended December 31, 2010 Whitebox VSC, Ltd., converted the remaining $4.4 million of outstanding principal and accrued interest in the amount of $62 thousand regarding their July 11, 2008 Convertible Promissory Note into 476,662 shares of Ebix common stock.
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2012
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 its subsidiaries (“Ebix” or the “Company”) is an international supplier of on-demand software and e-commerce solutions to the insurance industry. Ebix provides various software solutions and products for the insurance industry ranging from data exchanges, carrier systems, and agency systems, to custom software development for business entities across the insurance and financial industries. The Company's products feature fully customizable and scalable on-demand software 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, China, India, Japan, New Zealand, Singapore, United Kingdom and Brazil. International revenue accounted for 29%, 29%, and 25% of the Company’s total revenue in 2012, 2011, 2010 and 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 years ended December 31, 2012 , 2011 and 2010.
 
For the Year Ended
 
December 31,
(dollar amounts in thousands)
 
2012
 
2011
 
2010
Exchanges
 
$
159,678

 
$
130,638

 
$
94,212

Broker Systems
 
18,612

 
18,006

 
13,841

Business Process Outsourcing (“BPO”)
 
16,140

 
14,944

 
15,586

Carrier Systems
 
4,940

 
5,381

 
8,549

Totals
 
$
199,370

 
$
168,969

 
$
132,188



Summary of Significant Accounting Policies
Basis of Presentation— The consolidated financial statements include the accounts of Ebix and its wholly owned subsidiaries.  The effect of inter-company balances and transactions has been eliminated.

Use of Estimates—The preparation of consolidated financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and reported amounts of revenue and expenses during those reporting periods. Management has made material estimates primarily with respect to revenue recognition and deferred revenue, accounts receivable, acquired intangible assets, contingent earnout liabilities in connection with prior business acquisitions, business investments, and the provision for income taxes. Actual results may be materially different from those estimates.
     
Reclassification—Certain of the prior year or prior quarters within 2012 balances including the notes thereto have been reclassified to conform to the current year presentation. In particular the short-term and long-term portions of the contingent liability for accrued earn-out acquisition consideration is now disclosed separately in the respective sections of the consolidated balance sheets rather than in other current liabilities or other liabilities. Also the excess tax benefits from share-based compensation is now reported as a component of financing cash flows rather than being netted against the provision for deferred taxes as a component of operating cash flows in the consolidated statements of cash flows. Finally, as discussed in Note 20 "Temporary Equity," common stock that is redeemable for cash at the option of the holders, and not within control of the Company, is presented outside of the stockholders equity section of the consolidated balance sheet, and shown as a separate line referred to as "temporary equity" on the consolidated balance sheet appearing after liabilities, and before the stockholders equity section
Segment Reporting—Since the Company, from the perspective of its chief operating decision maker, allocates resources and evaluates business performance as a single entity that provides software and related services to a single industry on a worldwide basis, the Company reports as a single segment. The applicable enterprise-wide disclosures are included in Note 16.
Cash and Cash Equivalents—The Company considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. Such investments are stated at cost, which approximates fair value. The Company does maintain cash balances in banking institutions in excess of federally insured amounts and therefore is exposed to the related potential credit risk associated with such cash deposits.
Short-term Investments—The Company’s short-term investments consist of certificates of deposits with established commercial banking institutions with readily determinable fair values. Ebix accounts for investments that are reasonably expected to be realized in cash, sold or consumed during the year as short-term investments that are available-for-sale. The carrying amount of investments in marketable securities approximates fair value. The carrying value of our short-term investments was $971 thousand and $1.5 million at December 31, 2012 and 2011, respectively.
Fair Value of Financial Instruments—The Company follows the relevant GAAP guidance regarding the determination and measurement of the fair value of financial instruments in which 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 value hierarchy which requires an entity to maximize the use of observable inputs when measuring fair value. The guidance describes the following three levels of inputs that may be used in the methodology to measure fair value:
•
Level 1 — Quoted prices available in active markets for identical investments as of the reporting date;
•
Level 2 — Inputs other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date; and,
•
Level 3 — Unobservable inputs, which are to be 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 December 31, 2012 and 2011 the Company has the following financial instruments to which it had to consider fair values and had to make fair assessments:
•
Common share-based put option for which the fair value was measured as Level 2 instrument.
•
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 periodically 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 consolidated balance sheets at December 31, 2012 and 2011 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 debt under the revolving line of credit and term loans with Citibank and business investments. The estimated fair value of such instruments at December 31, 2012 and 2011 reasonably approximates their carrying value as reported on the consolidated balance sheets.
Additional information regarding the Company's assets and liabilities that are measured at fair value on a recurring basis is presented in the following table:

 
 
Fair Values at Reporting Date Using*
Descriptions
 
Balance at December 31, 2012
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 ($213 thousand is recorded in the long-term sections of the consolidated balance sheets)
 
$
1,184

$
1,184

$
—

$
—

Total assets measured at fair value
 
$
1,184

$
1,184

$
—

$
—

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Derivatives:
 
 
 
 
 
Common share-based put option (a)
 
$
1,186

$
—

$
1,186

$
—

Foreign exchange contracts (b)
 
—

—

—

—

Contingent accrued earn-out acquisition consideration (c)
 
17,495

—

—

17,495

Total liabilities measured at fair value
 
$
18,681

$
—

$
1,186

$
17,495

 
 
 
 
 
 
(a) 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 expires in June 2014, is exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, which if exercised would enable them 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 a 10% discount off of 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.
(b) The market valuation approach is applied and the valuation inputs include foreign currency exchange spot rates, forward premiums, forward foreign currency exchange rates, term, and maturity dates. As of December 31, 2012 all the Company's derivative instruments in the form of foreign currency hedge instruments had been settled.
(c) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments.
* During the year ended December 31, 2012 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 year.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
Contingent Liability for Accrued Earn-out Acquisition Consideration
 
 
(in thousands)
 
 
 
Beginning balance at January 1, 2012
 
$
7,590

 
 
 
Total remeasurement adjustments:
 
 
       (Gains) or losses included in earnings **
 
(699
)
       (Gains) or losses recorded against goodwill
 
—

       Foreign currency translation adjustments ***
 
(143
)
 
 
 
Acquisitions and settlements
 
 
       Business acquisitions
 
16,258

       Settlements
 
(5,511
)
 
 
 
Ending balance at December 31, 2012
 
$
17,495

 
 
 
The amount of total (gains) or losses for the year included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at year-end.
 
$
(802
)
 
 
 
** 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  December 31, 2012
 
             Valuation Technique
 
Significant Unobservable
Input
Contingent acquisition consideration:
(USIX, HealthConnect, Taimma, PlanetSoft, and TriSystems acquisitions)
 
$17,495
 
Discounted cash flow
 
Annualized 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 annualized revenue forecasts developed by the Company's management 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 (lower) higher fair value measurement.
Revenue Recognition and Deferred Revenue—The Company derives its revenues primarily from professional and support services, which includes revenue generated from subscription and transaction fees pertaining to services delivered over our exchanges or from our application service provider (“ASP”) platforms, software development projects and associated fees for consulting, implementation, training, and project management provided to customers using our systems, and business process outsourcing revenue ("BPO"). 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.
The Company follows the relevant technical accounting guidance regarding revenue recognition as issued by the Financial Accounting Standards Board ("FASB") and the Securities and Exchange Commission's ("SEC"). Company considers revenue earned and realizable when: (a) persuasive evidence of the sales arrangement exists, (b) the arrangement fee is fixed or determinable, (c) service delivery or performance has occurred, (d) customer acceptance has been received or is reasonably assured, if contractually required, and (e) collectability of the arrangement fee is probable. The Company typically uses signed contractual agreements as persuasive evidence of a sales arrangement. We apply the provisions of the relevant FASB accounting pronouncements 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 appropriate authoritative 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. Deliverables are accounted for separately if they meet all of the following criteria: a) the delivered item has value to the customer on a stand-alone basis; b) there is objective and reliable evidence of the fair value of the undelivered items; and c) if the arrangement includes a general right of return relative to the delivered items, the delivery or performance of the undelivered items is probable and substantially controlled by the Company. Under the relevant accounting guidance, when multiple-deliverables included in an arrangement are to be separated into different units of accounting, the arrangement consideration is allocated to the identified separate units of accounting based on fair values as regarding the relative selling price hierarchy. We determine the relative selling price for a deliverable based on vendor-specific objective evidence of selling price (“VSOE”), if available, or third-party evidence ("TPE") in the alternative if available, or finally our best estimate of selling price (“BESP”), if VSOE or TPE is not available.
The Company begins to recognize revenue from license fees for its ASP products upon granting customer access to the respective processing platform. Transaction services fee revenue for this use of our exchanges or ASP platforms is recognized as the transactions occur and are generally billed in arrears. Revenues from BPO arrangements, which include data entry and call center services, and insurance certificate creation and tracking services, are recognized as the services are performed. Service fees for hosting arrangements are recognized over the requisite service period. Revenue derived from the licensing of third party software products in connection with sales of the Company’s software licenses is recognized upon delivery together with the Company’s licensed software products. Fees for training, data conversion, installation, and consulting services fees are recognized as revenue when the services are performed. Revenue for maintenance and support services are recognized ratably over the term of the support agreement.
Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by the 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.
Deferred revenue includes payments or billings that have been received or made prior to performance and, in certain cases, cash collections and pertain to maintenance and support, initial setup or registration fees under hosting agreements, and software license fees received in advance of delivery and acceptance. Approximately $7.0 million and $8.3 million of deferred revenue were included in accounts receivable at December 31, 2012 and 2011, respectively.
Accounts Receivable and the Allowance for Doubtful Accounts Receivable—Reported accounts receivable as of December 31, 2012 include $28.5 million of trade receivables stated at invoice billed amounts net of the estimated allowance for doubtful accounts receivable, and $8.8 million of unbilled receivables. At December 31, 2011 the Company had $25.9 million of trade receivables stated at invoice billed amounts net of the estimated allowance for doubtful accounts receivable, and $5.2 million of unbilled receivables. The unbilled receivables pertain to certain professional service engagements and long-term development projects for which the timing of billing it tied to contractual milestones. The Company adheres to such contractually stated performance milestones and accordingly issues invoices to customers on a timely basis as per contract billing schedules. Accounts receivable are written off against the allowance account when the Company has exhausted all reasonable collection efforts. Management specifically analyzes accounts receivable and historical bad debts, write-offs, customer concentrations, customer credit-worthiness, current economic trends, and changes in our customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Bad debt expense was $442 thousand, $1.0 million, and $1.1 million for the year ended December 31, 2012, 2011, and 2010 respectively.
Costs of Services Provided—Costs of services provided consist of data processing costs, customer support costs including personnel costs to maintain our proprietary databases, costs to provide customer call center support, hardware and software expense associated with transaction processing systems and exchanges, telecommunication and computer network expense, and occupancy costs associated with facilities where these functions are performed. Depreciation expense is not included in costs of services provided.
Goodwill and Indefinite-Lived Intangible Assets— Goodwill represents the cost in excess of the fair value of the identifiable net assets from the businesses that we acquire. In accordance with the relevant FASB accounting guidance, goodwill is tested for impairment at the reporting unit level on an annual basis or on an interim basis if an event occurred or circumstances change that would indicate that fair value of a reporting unit decreased 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. In 2011 the Company applied the new guidance concerning goodwill impairment evaluation. In accordance with this new technical guidance the Company first assessed 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 their 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 we 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 30 each year. During the years ended December 31, 2012, 2011, and 2010, we had no impairment of our reporting unit goodwill balances.
During 2012 the Company recorded $3.2 million of goodwill in connection with the acquisitions of Benefit Software, Inc. ("BSI") acquired in March 2012, $7.6 million of goodwill in connection with the acquisitions of Taimma Communications, Inc. ("Taimma") acquired in April 2012, $44.1 million of goodwill in connection with the acquisition of PlanetSoft Holdings, Inc. ("PlanetSoft") acquired June 2012, $3.7 million of goodwill in connection with the acquisitions of Fintechnix Pty Limited ("Fintechnix") acquired June 2012, and $8.8 million of goodwill in connection with the acquisition of TriSystems, Ltd. ("Trisystems") acquired August 2012. During 2011 the Company recorded $60.1 million of goodwill in connection with the acquisitions of ADAM, Inc. ("ADAM") acquired in February 2011 and $20.4 million of goodwill in connection with the acquisition of Health Connect Systems ("HCS") acquired in November 2011. Also during 2011 the Company recognized a net reduction in the amount of $257 thousand in regards to adjustments to recorded goodwill in connection with business acquisitions made during the years 2008 to 2010.
Changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 are as follows:

 
December 31, 2012
 
December 31, 2011
 
(in thousands)
Beginning Balance
$
259,218

 
$
180,602

Additions, net (see Note 3)
67,401

 
80,259

Foreign currency translation adjustments
129

 
(1,643
)
Ending Balance
$
326,748

 
$
259,218



The Company’s indefinite-lived assets are associated with the estimated fair value of the contractual customer relationships existing with the property and casualty insurance carriers in Australia using our property and casualty ("P&C") data exchange and with ten corporate customers using our client relationship management (“CRM”) platform in the United States. Prior to these underlying business acquisitions Ebix had pre-existing contractual relationships with these carriers and corporate clients. The contracts are renewable at little or no cost, and Ebix intends to continue to renew these contracts indefinitely and has the ability to do so. The proprietary technology supporting the P&C data exchange and CRM platform, and used to deliver services to these carriers and corporate clients, cannot feasibly be effectively replaced in the foreseeable future, and accordingly the cash flows forthcoming from these customers are expected to continue indefinitely. With respect to the determination of the indefinite life, the Company considered the expected use of these intangible assets, historical experience in renewing or extending similar arrangements, and the effects of competition, and concluded that there were no indications from these factors to suggest that the expected useful life of these customer relationships would be finite. The Company concluded that no legal, regulatory, contractual, or competitive factors limited the useful life these intangible assets and therefore their life was considered to be indefinite, and accordingly the Company expects these customer relationships to remain the same for the foreseeable future. The fair values of these indefinite-lived intangible assets were based on the analysis of discounted cash flow (“DCF”) models extended out fifteen to twenty years. In that indefinite-lived does not imply an infinite life, but rather means that the subject customer relationships are expected to extend beyond the foreseeable time horizon, we utilized fifteen to twenty year DCF projections, as the valuation models that were applied consider a fifteen to twenty year time frame to be an indefinite period. Indefinite-lived intangible assets are not amortized, but rather are tested for impairment annually. We perform our annual impairment testing of indefinite-lived intangible assets as of September 30th of each year. During the years ended December 31, 2012, 2011, and 2010, we had no impairments to the recorded balances of our indefinite-lived intangible assets. We perform the impairment test for our indefinite-lived intangible assets by comparing the asset’s fair value to its carrying value. An impairment charge is recognized if the asset’s estimated fair value is less than its carrying value.
Purchased Intangible Assets—Purchased intangible assets represent the estimated fair value of acquired intangible assets from the businesses that we acquire in the U.S. and foreign countries in which we operate. These purchased intangible assets include customer relationships, developed technology, informational databases, and trademarks. We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows:
 
Life
Category
(yrs)
Customer relationships
7-20

Developed technology
3-12

Trademarks
3-15

Non-compete agreements
5

Database
10


Intangible assets as of December 31, 2012 and December 31, 2011, are as follows:
 
December 31,
 
2012
 
2011
 
(In thousands)
Finite-lived intangible assets:
 
 
 
Customer relationships
$
57,638

 
$
40,289

Developed technology
14,025

 
11,640

Trademarks
2,638

 
2,188

Non-compete agreements
538

 
418

Backlog
140

 
140

Database
212

 
207

Total intangibles
75,191

 
54,882

Accumulated amortization
(22,600
)
 
(16,496
)
Finite-lived intangibles, net
$
52,591

 
$
38,386

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

 
$
30,453



Income Taxes— The Company follows the asset and liability method of accounting for income taxes pursuant to the pertinent guidance issued by the FASB. Deferred income taxes are recorded to reflect the tax consequences on future years of differences between the tax basis of assets and liabilities, and operating loss and tax credit carry forwards, and their financial reporting amounts at each period end using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing the realizability of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. A valuation allowance is 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 follows the provisions of FASB accounting guidance on accounting for uncertain income tax positions. The guidance utilizes a two-step approach for evaluating tax positions. Recognition (“Step 1”) occurs when an enterprise concludes that a tax position, based solely on its technical merits is more likely than not to be sustained upon examination. Measurement (“Step 2”) is only addressed if Step 1 has been satisfied. Under Step 2, the tax benefit is measured at the largest amount of benefit, determined on a cumulative probability basis that is more likely than not to be realized upon final settlement. As used in this context, the term “more likely than not” is interpreted to mean that the likelihood of occurrence is greater than 50%.
Foreign Currency Translation—Historically the functional currency for the Company's foreign subsidiaries in India and Singapore had been the Indian rupee and Singapore dollar, respectively. As a result of the Company's rapid growth, including its recent acquisition of PlanetSoft, and the expansion of its intellectual property research and development activities in its Singapore subsidiary, and its product development activities and information technology enabled services for the insurance industry provided by its India subsidiary in support of Ebix's operating divisions across the world (both of which are transacted in U.S. dollars), management undertook a reconsideration of functional currency designations for these two foreign subsidiaries in India and Singapore, and concluded that effective July 1, 2012 the functional currency for these entities should be changed to the U.S. dollar. Management believes that the acquisition of PlanetSoft in combination with the other four business acquisitions completed during the current year and the cumulative effect of business acquisitions made over the last few years which in turn has necessitated the rapid growth of the Company's operations in India and Singapore, were indicative of a significant change in the economic facts and circumstances that justified the reconsideration and ultimate change in the functional currency. Had the change in the functional currency designation for our India and Singapore subsidiaries not been made, the Company would have incurred and recognized approximately $49 thousand of additional foreign currency exchange gains during the year ended December 31, 2012. Furthermore, a portion of monetary assets and liabilities for these two foreign subsidiaries that are denominated in foreign currencies are re-measured into U.S. dollars at the exchange rates in effect at each reporting date. These corresponding re-measurement gains and losses are included as a component of foreign currency exchange gains and losses in the accompanying Consolidated Statements of Income and amounted to a $151 thousand loss for the year ended December 31, 2012.
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. 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.
Advertising—Advertising costs are expensed as incurred. Advertising costs amounted to $1.4 million, $1.0 million, and $973 thousand in 2012, 2011, and 2010, respectively, and are included in sales and marketing expenses in the accompanying consolidated statements of income.
Sales Commissions —Certain sales commission paid with respect to subscription-based revenues are deferred and subsequently amortized into operating expenses ratably over the term of the related customer subscription contracts. As of December 31, 2012 and 2011, $442 thousand and $402 thousand, respectfully, of sales commissions were deferred and included in other current assets on the accompanying consolidated balance sheet. During the years ended December 31, 2012 and 2011 the Company amortized $1.1 million and $465 thousand, respectively, of previously deferred sales commissions and included this expense in sales and marketing costs on the accompanying consolidated statements of income.
Property and Equipment—Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the assets estimated useful lives. Leasehold improvements are amortized over the shorter of the expected life of the improvements or the remaining lease term. Repairs and maintenance are charged to expense as incurred and major improvements that extend the life of the asset are capitalized and depreciated over the expected remaining life of the related asset. Gains and losses resulting from sales or retirements are recorded as incurred, at which time related costs and accumulated depreciation are removed from the Company’s accounts. Fixed assets acquired in acquisitions are recorded at fair value. The estimated useful lives applied by the Company for property and equipment are as follows:
 
Life
Asset Category
(yrs)
Computer equipment
5
Furniture, fixtures and other
7
Buildings
30
Leasehold improvements
Life of the lease

Recent Accounting Pronouncements
The following is a summary brief discussion of recently released accounting pronouncements that are pertinent to the Company’s business:
In July 2012, the FASB issued new technical guidance regarding an entity's evaluation of indefinite-lived intangible assets for possible impairment. Under this new guidance an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount in accordance the related technical accounting guidance. Under this guidance an entity also has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. An entity will be able to resume performing the qualitative assessment in any subsequent period. This new technical guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued. The Company has not yet adopted this new guidance, and accordingly applied quantitative methods to evaluate its indefinite-lived intangible assets for impairment during 2012. The Company will adopt the new technical guidance in 2013.
In June 2011, the FASB issued new financial reporting guidance regarding the reporting of "other comprehensive income, or (OCI)". This guidance revises the manner in which entities present comprehensive income in their financial statements. The new guidance requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income, or (2) two separate but consecutive statements. Under the two-statement approach, the first statement would include components of net income, which is consistent with the income statement format used currently, and the second statement would include components of OCI. Under either method, entities must display adjustments for items that are reclassified from OCI to net income in both net income and OCI. The new reporting guidance does not change the items that must be reported in OCI. This new reporting standard is effective for interim and annual periods beginning after December 15, 2011, however, the FASB recently decided to defer the effective date for the part of this new guidance that would require adjustments of items out of accumulated other income to be presented as components of both net income and other comprehensive income in financial statements. Those changes would have been effective for annual and interim periods beginning on or after December 15, 2011, but are now deferred until FASB can adequately evaluate the costs and benefits of this presentation requirement. After adoption, the guidance must be applied retrospectively for all periods presented in the financial statements. The Company adopted this new guidance during 2012. It did not have a material impact on our financial position or operating results as the only element of comprehensive income relevant to Ebix is in regards to cumulative foreign currency translation adjustments.
In September 2011, the FASB issued new technical guidance regarding an entity's evaluation of goodwill for possible impairment. Under this new guidance an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing the totality of events or circumstances, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step quantitative impairment test is unnecessary. This new technical guidance was effective for fiscal years beginning after December 15, 2011. Early adoption was permitted for annual and interim goodwill impairment evaluations performed as of a date before September 2011, if an entity's financial statements for the most recent annual or interim period have not yet been issued. The Company elected to adopt early and accordingly applied this new guidance to its 2011 annual impairment evaluation of goodwill, and its adoption did not have a material impact on the Company's statements of financial position or operations.
In December 2010, the Emerging Issues Task Force of the FASB reached consensus regarding the disclosure of pro forma information for business combinations. This new guidance addressed the diversity in practice concerning the interpretation of the pro forma revenue and earnings disclosure requirements for business combinations. The guidance specifies that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination had occurred as of the beginning of the comparable prior annual reporting period only. The amendments also expand the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The amendments affect any public entity that enters into business combinations that are material on an individual or aggregate basis. The new guidance was applicable to business combinations for which the acquisition date is on or after the first annual reporting period beginning on or after December 15, 2010. The Company adopted this new guidance in 2011 and applied it to the disclosures regarding our recent acquisitions of ADAM, Health Connect, BSI, Taimma, PlanetSoft, Fintechnix, and TriSystems.
In January 2010, the FASB issued new guidance regarding disclosures about fair value measurements. The guidance requires additional disclosures and clarifies some existing disclosure requirements about fair value measurement as set forth in earlier related guidance. Specifically this new guidance requires a reporting entity to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers; and for fair value measurements using significant unobservable inputs, a reporting entity should present separately information about purchases, sales, issuances, and settlements. Also a reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. This new guidance was effective for interim and annual reporting periods beginning after December 15, 2009. The Company adopted and applied this technical guidance in 2010.
v2.4.0.6
Earnings per Share
 12 Months Ended
Dec. 31, 2012
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings per Share

The basic and diluted earnings per share (“EPS”), and the basic and diluted weighted average shares outstanding for all periods as presented in the accompanying Consolidated Statements of Income are shown below :
 
 
For the year ended
December 31,
 
 
(In thousands, except per share amounts)
Earnings per share:
 
2012
 
2011
 
2010
Basic earnings per common share
 
$
1.91

 
$
1.89

 
$
1.69

Diluted earnings per common share
 
$
1.80

 
$
1.75

 
$
1.51

Basic weighted average shares outstanding
 
36,948

 
37,742

 
34,845

Diluted weighted average shares outstanding
 
39,100

 
40,889

 
39,018


To calculate diluted earnings per share, interest expense related to convertible debt excluding imputed interest, was added back to net income as follows:
 
 
For the year ended
December 31,
 
 
(in thousands, except per share amounts)
 
 
2012
 
2011
 
2010
Net income
 
$
70,569

 
$
71,378

 
$
59,019

Convertible debt interest (excludes imputed interest)
 
—

 
—

 
10

Net income for diluted earnings per share purposes
 
$
70,569

 
$
71,378

 
$
59,029

Diluted shares outstanding
 
39,100

 
40,889

 
39,018

Diluted earnings per common share
 
$
1.80

 
$
1.75

 
$
1.51



Basic EPS is equal to net income divided by the weighted average number of shares of common stock outstanding for the period. Diluted EPS takes into consideration common stock equivalents which for the Company consist of stock options, restricted stock, and convertible debt. With respect to stock options, diluted EPS is calculated as if the Company had additional common stock outstanding from the beginning of the year or the date of grant or issuance, net of assumed repurchased shares using the treasury stock method. With respect to convertible debt, diluted EPS is calculated as if the debt instrument had been converted at the beginning of the reporting period or the date of issuance, whichever is later. Diluted EPS is equal to net income plus interest expense on convertible debt, divided by the combined sum of the weighted average number of shares outstanding and common stock equivalents. At December 31, 2012, 2011, 2010 there were 90,000, 90,000, and 0 potentially issuable shares with respect to stock options which could dilute EPS in the future but which were excluded from the diluted EPS calculation because presently their effect is anti-dilutive. Diluted shares outstanding determined as follows for each years ending December 31, 2012, 2011, and 2010.

 
 
For the year ended
December 31,
 
 
(in thousands)
 
 
2012
 
2011
 
2010
Basic weighted average shares outstanding
 
36,948

 
37,742

 
34,845

Incremental shares for common stock equivalents
 
2,152

 
3,147

 
4,173

Diluted shares outstanding
 
39,100

 
40,889

 
39,018
v2.4.0.6
Business Acquisitions
 12 Months Ended
Dec. 31, 2012
Business Combinations [Abstract]  
Business Acquisitions
Business Acquisitions
The Company’s business acquisitions are accounted for under the purchase method of accounting in accordance with the FASB’s accounting guidance on the accounting for business combinations. Accordingly, the 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 Company's practice is that, immediately, after a business acquisition is consummated, to tightly integrate all functions including infrastructure, sales and marketing, administrative, product development, so as to ensure that efficiencies are maximized and redundancies eliminated. The Company also centralizes certain key functions such as product development, information technology, marketing, sales, human resources, finance, and other general administrative functions after an acquisition, in order to rapidly leverage cross-selling opportunities and to quickly realize cost efficiencies. By executing this integration strategy it is becomes neither practical nor feasible to accurately and separately track and disclose the earnings from the business combinations we have executed after they have been acquired.
The Company executes 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.
A significant component of the purchase price consideration for many of the Company's business acquisitions is a potential future cash earnout based on reaching certain specified future revenue targets. The Company recognizes these potential obligations as contingent liabilities as reported on its 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. As of December 31, 2012, the total of these contingent liabilities was $17.5 million, of which $14.2 million is reported in long-term liabilities, and $3.3 million is included in current liabilities in the Company's Consolidated Balance Sheet. As of December 31, 2011 the total of these contingent liabilities was $7.6 million which were included in current liabilities in the Company's consolidated balance sheet.
    During 2012 the Company received a termination fee in connection with a failed business acquisition. In this regard the Company recorded a reduction to general and administrative expense in the approximate amount of $971 thousand (net of directly related internal operating costs incurred by the Company and a portion of the fee that was paid to our investment banker).
2012 Acquisitions
    During 2012 the Company executed and completed five business acquisitions including PlanetSoft, Inc. which is discussed below; the other acquisitions were not material individually or in the aggregate. The Company accounted for these other four immaterial business acquisitions by recording in the aggregate $23.3 million of goodwill, $7.6 million of intangible assets pertaining to customer relationships, $1.8 million of intangible assets pertaining to acquired technology, $436 thousand of intangible assets for acquired trade names, and $118 thousand of intangible assets for non-compete agreements.
PlanetSoft — Effective June 1, 2012 Ebix closed the merger of California based PlanetSoft Holdings, Inc. ("PlanetSoft"). Under the terms of the merger agreement the former PlanetSoft shareholders received $35.0 million cash and 296,560 shares of Ebix common stock valued at $16.86 per share or $5.0 million in the aggregate. The cash portion of the cash purchase consideration was funded using internal cash reserves and available capacity from the Company's commercial bank revolving line of credit. Furthermore, under the terms of the agreement the PlanetSoft shareholders hold a put option exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, which if exercised would enable them to sell the underlying shares of common stock back to the Company at a 10% discount off of the per-share value established on the effective date of the closing of Ebix's acquisition of PlanetSoft. The initial fair value of this put option liability was determined to be $1.4 million. This put option is described in more detail in Note 11. PlanetSoft is in the business of powering data exchanges that streamline core insurance operations in the areas of client acquisition, underwriting, and distribution management. $11.4 million of PlanetSoft's operating revenues recognized since June 2012 were included in the Company's revenues reported in its consolidated statement of income for the year ended December 31, 2012. The revenue derived from PlanetSoft's operations is included in the Company's Exchange division. The Company accounted for this acquisition by recording $44.1 million of goodwill, $9.8 million of intangible assets pertaining to customer relationships, and $540 thousand of intangible assets pertaining to acquired technology. The former shareholders of PlanetSoft retain the right to earn up to an additional cash consideration if certain incremental revenue targets are achieved over the two-year anniversary date subsequent to the effective date of the acquisition. The Company has tentatively determined that the approximate fair value of this contingent consideration liability is to be $10.2 million.
2011 Acquisitions
Health Connect Systems. — Effective November 15, 2011, Ebix acquired Health Connect Systems, Inc. (“Health Connect”). Health Connect, with operations based out of Fresno, California, is a leading online Exchange for buyers and sellers of health insurance and employee benefits. Ebix acquired all of the outstanding stock of Health Connect for aggregate cash consideration in the amount of $18.0 million, which was funded with internal resources using available cash reserves. The former shareholders of Health Connect also retained the right to earn up to an additional $4.0 million if certain incremental revenue targets are achieved over the two-year anniversary date subsequent to the effective date of the acquisition, of which $1.2 million has been earned and paid. The Company accounted for this acquisition by recording goodwill in the amount of $20.4 million, and definite lived assets with respect to acquired customer relationships in the amount of $1.2 million and acquired developed technology in the amount of $256 thousand.

ADAM, Inc. —Effective February 7, 2011 Ebix closed the merger of Atlanta, Georgia based ADAM, Inc. ("ADAM")
with a wholly owned subsidiary of Ebix. Under the terms of the merger agreement, all of the ADAM shareholders received 3.65 million shares of Ebix common stock with a fair value of $87.5 million pursuant to the merger. In addition Ebix paid approximately $944 thousand in cash for then unexercised ADAM stock options. ADAM was a leading provider of health information and benefits technology solutions in the United States. $23.1 million of ADAM's operating revenues recognized since February 7, 2011 were included in the Company's revenues reported in its consolidated statement of income for 2011. Correspondingly included in the Company's revenues as reported in its consolidated statement of income for 2012 is $23.5 million of ADAM's operating revenue for the year 2012. The revenue derived from ADAM portfolio of products and services is included in the Company's Exchange division. The Company accounted for this acquisition by recording $60.1 million of goodwill, $15.4 million of intangible assets pertaining to customer relationships, $2.1 million of intangible assets pertaining to acquired technology, and $2.0 million of intangible assets pertaining to acquired trademarks.

The following table summarizes the net assets acquired as a result of the acquisitions that occurred during 2012 and 2011:
 
 
December 31,
(in thousands)
 
2012
 
2011
Current assets
 
$
6,262

 
$
9,710

Property and equipment
 
1,328

 
1,626

Intangible assets
 
20,246

 
20,970

Deferred tax asset, (net)
 
—

 
9,294

Other assets
 
202

 
—

Goodwill
 
67,376

 
80,516

Total assets acquired
 
95,414

 
122,116

Less: liabilities assumed
 
(34,302
)
 
(15,696
)
Net assets acquired
 
61,112

 
106,420



The following table summarizes the separately identified intangible assets acquired as a result of the acquisitions that occurred during 2012 and 2011:
 
 
December 31,
 
 
2012
 
2011
 
 
 
 
Weighted
Average
 
 
 
Weighted
Average
Intangible asset Category
 
Fair Value
 
Useful Life
 
Fair Value
 
Useful Life
 
 
(in thousands)
 
(in years)
 
(in thousands)
 
(in years)
Customer relationships
 
$
17,365

 
10.9
 
$
16,594

 
11.7
Developed technology
 
2,327

 
4.5
 
2,406

 
5.3
Non-compete agreements
 
118

 
5.0
 
—

 
0.0
Trademarks
 
436

 
10.0
 
1,970

 
13.4
Total acquired intangible assets
 
$
20,246

 
10.1
 
$
20,970

 
11.2

Estimated aggregate future amortization expense for the intangible assets recorded as part of the business acquisitions described above and other prior acquisitions is as follows:
Estimated Amortization Expenses (in thousands):
 
For the year ended December 31, 2013
$
7,067

For the year ended December 31, 2014
6,688

For the year ended December 31, 2015
6,024

For the year ended December 31, 2016
5,705

For the year ended December 31, 2017
5,226

Thereafter
21,881

 
 

 
$
52,591

 
 


The Company recorded $6.1 million, $4.8 million, and $3.7 million of amortization expense related to acquired intangible assets for the years ended December 31, 2012, 2011, and 2010, respectively.
v2.4.0.6
Pro Forma Financial Information
 12 Months Ended
Dec. 31, 2012
Pro Forma Financial Information [Abstract]  
Pro Forma Financial Information
Pro Forma Financial Information (re: 2012 and 2011 acquisitions)
This unaudited pro forma financial information is provided for informational purposes only and does not project the Company’s results of operations for any future period.

The aggregated unaudited pro forma financial information pertaining to the all of the Company's acquisitions made during 2011 and 2012, which includes the acquisitions of ADAM, HealthConnect, BSI, Taimma, PlanetSoft, Fintechnix, and TriSystems 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 2012 and 2011 pro forma financial information below assumes that all such business acquisitions were made on January 1, 2011, whereas the Company's reported financial statements for 2012 only includes the operating results from the businesses since the effective date that they were acquired by Ebix, and includes seven months of actual financial results of PlanetSoft, seven months of Fintechnix, five months of TriSystems, nine months of BSI and nine months of Taimma. Similarly, the 2011 pro forma financial information below includes a full year of results for PlanetSoft and ADAM as if they had been acquired on January 1, 2011, whereas the Company's reported financial statements for the year ended December 31, 2011 only includes the actual financial results of ADAM since the effective date of its acquisition on February 7, 2011 and only 1.5 months of HealthConnect, and no revenue from Planetsoft.
 
 
As Reported
2012
 
Pro Forma
2012
 
As Reported
2011
 
Pro Forma
2011
 
 
 
 
(unaudited)
 
 
 
(unaudited)
 
 
(In thousands, except per share amounts)
Revenue
 
$
199,370

 
$
212,360

 
$
168,969

 
$
209,748

Net Income
 
$
70,569

 
$
70,086

 
$
71,378

 
$
72,391

Basic EPS*
 
$
1.91

 
$
1.89

 
$
1.89

 
$
1.88

Diluted EPS*
 
$
1.80

 
$
1.79

 
$
1.75

 
$
1.74


        
In the above table, the unaudited pro forma revenue for the year ended December 31, 2012 increased by $2.6 million from the unaudited pro forma revenue for 2011 of $209.7 million to $212.4 million , representing a 1.2% increase. Correspondingly, the reported revenue for the year ended December 31, 2011 increased by $30.4 million or 18.0% from the reported revenue during the same period in 2011.
The above proforma analysis is based on the following premises:
•
2011 and 2012 pro forma revenue contains actual revenue of the acquired entities before acquisition date, as reported by the sellers, as well as actual revenue of the acquired entities after acquisition. Growth in revenues of the acquired entities after acquisition date are only reflected for the period after their acquisition.
•
Revenue billed to existing clients from the cross selling of acquired products has been assigned to the acquired section of our business.
•
Any existing products sold to new customers acquired through the acquisition customer base, has also been assigned to the acquired section of our business.
•
2011 pro forma revenues include revenues from some product lines whose sale was discontinued after the acquisition date and revenues from some customers whose contracts were discontinued. This is typically done for efficiency and/or competitive reasons.
v2.4.0.6
Commercial Bank Financing Facility
 12 Months Ended
Dec. 31, 2012
Debt Disclosure [Abstract]  
Commercial Bank Financing Facility
Commercial Bank Financing Facility
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, N.A. ("Citibank") as administrative agent and Citibank, N.A., Wells Fargo Capital Finance, LLC, and RBS Citizens, N.A. as joint lenders. The financing is comprised of a 4-year, $45 million secured revolving credit facility, a $45 million secured term loan which amortizes over a 4 year period with quarterly principal and interest payments commencing 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. This new $100 million credit facility with Citibank, N.A., as administrative agent, replaced the former $55 million facility that the Company had in place with Bank of America, N.A. The initial interest rate applicable to the Secured Syndicated Credit Facility is LIBOR plus 1.50% and currently stands at 1.71%. 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 new credit facility, and is amortizing these costs into interest expense over the four-year life of the credit agreement. As of December 31, 2012 the Company's consolidated balance sheet includes $620 thousand of remaining deferred financing costs. The underlying financing agreement contains financial covenants regarding the Company's annualized EBITDA, fixed charge coverage ratio, and leverage ratio, as well as certain restrictive covenants pertaining to such matters as the incurrence of new debt, the aggregate amount of repurchases of the Company's equity shares, and the consummation of new business acquisitions. The Company currently is in compliance with all such financial and restrictive covenants.
On April 26, 2012, Ebix fully paid all of its obligations and related fees then outstanding to Bank of America N.A. (“BOA”) and as pertaining to the Credit Agreement dated February 12, 2010 (as amended). The aggregate amount of the payment was $45.14 million and was funded from a portion of the proceeds of the Citibank led Secured Syndicated Credit Facility discussed immediately above. Upon the effective date of this payoff, BOA's commitment to extend further credit to the Company terminated.
    
At December 31, 2012, the outstanding balance on the revolving line of credit with Citibank was $37.8 million and the facility carried an interest rate of 1.71%. This balance is included in the long-term liabilities section of the Consolidated Balance Sheets. During 2012, the average and maximum outstanding balances on the revolving line of credit were $32.4 million and $37.8 million, respectively, and the weighted average interest rate was 1.74%. At December 31, 2011 the outstanding balance on the revolving line of credit with BOA was $31.8 million and the facility carried an interest rate of 1.75%.
    At December 31, 2012, the outstanding balance on the term loan with Citibank was $40.9 million of which $11.3 million is due within the next twelve months. This term loan also carried an interest rate of 1.71%. During 2012, $4.1 million of scheduled payments were made against the existing term loan with Citibank and $1.7 million of scheduled payments were made against the term loan previously with BOA. The current and long-term portions of the term loan are included in the respective current and long-term sections of the consolidated balance sheets. At December 31, 2011, the outstanding balance on the term loan with BOA was $15.0 million.
v2.4.0.6
Convertible Debt
 12 Months Ended
Dec. 31, 2012
Convertible Debt [Abstract]  
Convertible Debt
Convertible Debt
The counterparties to our convertible debt arrangements are and were significant shareholders of the Company's common stock.
In August 2009 the Company entered into a Convertible Note Purchase Agreement with the Rennes Foundation in an original amount of $5.0 million, which amount is convertible into shares of common stock at a conversion price of $16.66 per share (the "Note"). The Note had a 0.0% stated interest rate and no warrants were issued. The Note was to be payable in full at its maturity date of August 25, 2011. The Company applied imputed interest on this convertible note using an interest rate of 1.75% and discounted their carrying value accordingly. During the twelve months ending December 31, 2011 the Company recognized $21 thousand of interest expense on the Note. With respect to this convertible note, and in accordance with its terms, as was understood between the Company and the holder, upon a conversion election by the holder, the Company had to satisfy the related original principal balance in cash and could satisfy the conversion spread (that being the excess of the conversion value over the related original principal component) in either cash or stock at option of the Company. On April 18, 2011, the Rennes Foundation elected to fully convert the Note. The Company settled this conversion election by paying $5.0 million in cash with respect to the principal component, and paying $1.8 million in cash with respect to the conversion spread.
Also in August 2009 the Company issued two convertible promissory notes raising a total of $20.0 million. Specifically the Company entered into a Convertible Note Purchase Agreement with Whitebox in an original amount of $19.0 million, which amount was convertible into shares of common stock at a conversion price of $16.00 per share. The note had a 0.0% stated interest rate and no warrants were issued. The note was to be payable in full at its maturity date of August 26, 2011. Also at this time the Company entered into a Convertible Note Purchase Agreement with IAM Mini-Fund 14 Limited, a fund managed by Whitebox, in an original amount of $1.0 million, which amount was convertible into shares of common stock at a conversion price of $16.00 per share. The note had a 0.0% stated interest rate and no warrants were issued. The note was to be payable in full at its maturity date of August 26, 2011. The Company also applied imputed interest on these convertible notes using an interest rate of 1.75% and discounted their carrying value accordingly. During the twelve months ending December 31, 2010 the Company recognized $328 thousand of interest expense in regards to these notes. With respect to each of these convertible notes, and in accordance with the terms of the notes, as understood between the Company and each of the holders, upon a conversion election by the holder the Company was to satisfy the related original principal balance in cash and could satisfy the conversion spread (that being the excess of the conversion value over the related original principal component) in either cash or stock at option of the Company. On November 10, 2010 Whitebox VSC, Ltd and IAM Mini-Fund 14 Limited elected to fully convert all of the remaining Convertible Promissory Notes. The Company settled these conversion elections by paying $20.0 million in cash with respect to the principal component, paying $2.5 million in cash for a portion of the conversion spread, and issuing 283,738 shares of Ebix common stock for the remainder of the conversion spread.
In regards to the convertible promissory notes issued in August 2009 and discussed in the preceding paragraphs the Company followed the FASB accounting guidance related to the accounting for convertible debt instruments that may be partially or wholly settled in cash upon conversion. This guidance requires an entity to account separately for the liability and equity components of these types of convertible debt instruments in a manner that reflects the Company's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. This guidance requires bifurcation of the debt and equity components, re-classification of the then derived equity component, and then accretion of the resulting discount on the debt as part of interest expense recognized in the income statement. The application of this accounting guidance with respect to these convertible debt instruments resulted in the Company recording $24.2 million as the carrying amount of the debt component, and $852 thousand as debt discount and the carrying amount for the equity component. The bifurcation of these convertible debt instruments was based on the calculated fair value of similar debt instruments at August 2009 that did not have a conversion feature and associated equity component. The annual interest rate determined for such similar debt instruments in August 2009 was 1.75%. The resulting discount was amortized to interest expense over the two year term of the convertible notes. We recognized non-cash interest expense of $21 thousand and $328 thousand during years ended December 31, 2011 and 2010, respectively, as related to the amortization of the discount on the liability component. Because the principal amount of the convertible notes must be settled in cash upon conversion, the convertible notes only impacted diluted earnings per share when the average price of our common stock exceeded the conversion price, and then only to the extent of the incremental shares associated with the conversion spread. We included the effect of the additional shares that could have been issued from conversion in our diluted net income per share calculation using the treasury stock method.
As of December 31, 2011 the Company had no remaining convertible debt obligations.
v2.4.0.6
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies

Contingencies-Between July 14, 2011 and July 21, 2011, securities class action complaints were filed against the Company and certain of its officers in the United States District Court for the Southern District of New York and in the United States District Court for the Northern District of Georgia.  The complaints assert claims against (i) the Company and the Company's CEO and CFO for alleged violations of Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder and (ii) the Company's CEO and CFO as alleged controlling persons.  The complaints generally allege false statements in earnings reports, SEC filings, press releases, and other public statements that allegedly caused the Company's stock to trade at artificially inflated prices. Plaintiff seeks an unspecified amount of damages.  The New York action has been transferred to Georgia and has been consolidated with the Georgia action, now styled In re: Ebix, Inc. Securities Litigation, Civil Action No. 1:11-CV-02400-RSW (N.D. Ga.).  A Consolidated Amended Complaint (“CAC”) was filed by Plaintiffs on November 28, 2011. On January 12, 2012, the Company filed a Motion to Dismiss the CAC, which raised various defenses that the CAC failed to state a claim.  On September 28, 2012, the Court entered an order denying the Company's Motion to Dismiss. The parties will now move into the discovery phase of the litigation. In connection with this shareholder class action suit, 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 a 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 a 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 a shareholder named Hotel Trades Council and Hotel Association of New York City 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 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 and Spagnola cases have been stayed pending the completion of expert discovery in the shareholder class action suit. The Company denies any liability and intends to defend the federal and derivative actions vigorously.  The likelihood of an unfavorable outcome for this matter is not estimable.
In the normal course of business, 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 business, 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 December 31, 2012 and 2011.
Commitments for minimum rentals under non-cancellable leases and debt obligations as of December 31, 2012 were as follows:
Year
 
Debt
 
Capital Leases
 
Operating Leases
 
 
(in thousands)
2013
 
$
11,995

 
$
303

 
$
4,854

2014
 
11,312

 
195

 
3,898

2015
 
11,651

 
87

 
1,905

2016
 
46,315

 
—

 
1,682

2017
 
—

 
—

 
1,656

Thereafter
 
—

 
—

 
1,387

Total
 
$
81,273

 
$
585

 
$
15,382

Less: sublease income
 
 
 
 
 
(60
)
Net lease payments
 
 
 
 
 
$
15,322

Less: amount representing interest
 
 
 
(77
)
 
 
Present value of obligations under capital leases
 
 
 
$
508

 
 
Less: current portion
 
(11,995
)
 
(277
)
 
 
Long-term obligations
 
$
69,278

 
$
231

 
 

Rental expense for office facilities and certain equipment subject to operating leases for 2012, 2011, and 2010 was $5.9 million, $4.6 million and $4.0 million, respectively.
Sublease income for 2012, 2011 and 2010 was $5 thousand, $0, and $145 thousand, respectively.
Self Insurance—For most of the Company’s U.S. employees the Company is currently self-insured for its health insurance program and has a stop loss policy that limits the individual liability to $100 thousand per person and the aggregate liability to 125% of the expected claims based upon the number of participants and historical claims. As of December 31, 2012 and 2011, the amount accrued on the Company’s consolidated balance sheet for the self-insured component of the Company’s employee health insurance was $243 thousand and $384 thousand, respectively. The maximum potential estimated cumulative liability for the annual contract period, which ends in September 2013, is $3.0 million.
v2.4.0.6
Share-based Compensation
 12 Months Ended
Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-based Compensation
Share-based Compensation
Stock Options—The Company accounts for compensation expense associated with stock options issued to employees, Directors, and non-employees based on their fair value, which is calculated using an option pricing model, and is recognized over the service period, which is usually the vesting period. At December 31, 2012, the Company has one equity based compensation plan. No stock options were granted to employees or non-employees during 2012, 2011 and 2010; however, options were granted to Directors in 2012, 2011 and 2010. Stock compensation expense of $539 thousand, $537 thousand and $444 thousand was recognized during the years ending December 31, 2012, 2011 and 2010, respectively, on outstanding and unvested options.
The fair value of options granted during 2012 is estimated on the date of grant using the Black-Scholes option pricing model. The following table includes the weighted- average assumptions used in estimating the fair values and the resulting weighted-average fair value of stock options granted in the periods presented:
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Year Ended December 31, 2010
Weighted average fair values of stock options granted
$
16.94

 
$
20.58

 
$
21.70

Expected volatility
47.9
%
 
59.0
%
 
54.9
%
Expected dividends
1.18
%
 
.74
%
 
—
%
Weighted average risk-free interest rate
.33
%
 
.33
%
 
.72
%
Expected life of stock options (in years)
3.5

 
3.5

 
3.5



A summary of stock option activity for the years ended December 31, 2012, 2011 and 2010 is as follows:
 
Within Plans
 
Outside Plan
 
Weighted
Average
Exercise Price
 
Weighted
Average
Remaining
Contractual
Term (Years)
 
Aggregate Intrinsic
Value
 
 
 
 
 
 
 
 
 
(in thousands)
Outstanding at January 1, 2010
4,542,636

 
5,625

 
$
1.69

 
2.91
 
$
66,344

Granted
45,000

 
—

 
$
21.70

 
 
 
 
Exercised
(1,247,160
)
 
(5,625
)
 
$
4.99

 
 
 
 
Canceled
—

 
—

 
$
—

 
 
 
 
Outstanding at December 31, 2010
3,340,476

 
—

 
$
2.22

 
2.51
 
$
71,638

Granted
45,000

 
—

 
$
20.58

 
 
 
 
Exercised
(69,509
)
 
—

 
$
0.73

 
 
 
 
Canceled
(792
)
 
—

 
$
0.72

 
 
 
 
Outstanding at December 31, 2011
3,315,175

 
—

 
$
2.51

 
1.56
 
$
64,959

Granted
45,000

 
—

 
$
16.94

 
 
 
 
Exercised
(1,361,542
)
 
—

 
$
0.75

 
 
 
 
Canceled
—

 
—

 
$
—

 
 
 
 
Outstanding at December 31, 2012
1,998,633

 
—

 
$
4.03

 
1.17
 
$
24,171

Exercisable at December 31, 2012
1,863,633

 
—

 
$
2.96

 
1.03
 
$
24,533


The aggregate intrinsic value for stock options outstanding and exercisable is defined as the difference between the market value of the Company’s stock as of the end of the period and the exercise price of the stock options. The total intrinsic value of stock options exercised during 2012, 2011 and 2010 was $24.8 million, $941 thousand, $5.7 million, respectively.
Cash received from option exercises under all share-based payment arrangements for the years ended December 31, 2012, 2011 and 2010, was $1.0 million, $51 thousand and $1.2 million, respectively.
A summary of non-vested options and changes for the years ended December 31, 2012, 2011 and 2010 is as follows:

 
Non-Vested Number of Shares
 
Weighted
Average
Exercise Price
 
 
 
 
Non-vested balance at January 1, 2010
303,900

 
$
11.79

Granted
45,000

 
$
21.70

Vested
(101,210
)
 
$
10.61

Canceled
—

 
$
—

Non-vested balance at December 31, 2010
247,690

 
$
14.07

Granted
45,000

 
$
20.58

Vested
(112,685
)
 
$
11.71

Canceled
—

 
$
—

Non-vested balance at December 31, 2011
180,005

 
$
17.17

Granted
45,000

 
$
16.94

Vested
(90,005
)
 
$
14.60

Canceled
—

 
$
—

Non-vested balance at December 31, 2012
135,000

 
$
18.80



    
The following table summarizes information about stock options outstanding by price range as of December 31, 2012:
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number Outstanding
 
Weighted-Average Remaining Contractual Life (Years)
 
Weighted-Average Exercise Price
 
Number of Shares
 
Weighted-Average Exercise Price
$0.59-$1.75
 
1,470,375

 
0.90
 
$
0.97

 
1,470,375

 
$
0.97

$2.17-$2.36
 
54,000

 
3.39
 
$
2.27

 
54,000

 
$
2.27

$6.98-$7.27
 
204,258

 
0.63
 
$
7.16

 
204,258

 
$
7.16

$16.94-$21.70
 
270,000

 
2.60
 
$
18.66

 
135,000

 
$
18.52

 
 
1,998,633

 
1.17
 
$
4.03

 
1,863,633

 
$
2.96



Restricted Stock—Pursuant to the Company’s restricted stock agreements, the restricted stock generally vests as follows: one third after one year, and the remaining in eight equal quarterly installments. The restricted stock also vests with respect to any unvested shares upon the applicable employee’s death, disability or retirement, the Company’s termination of the employee other than for cause, or for a change in control of the Company. A summary of the status of the Company’s non-vested restricted stock grant shares is presented in the following table:

 
Shares
 
Weighted-Average Grant Date
Fair Value
Non vested at January 1, 2010
405,312

 
$
7.79

Granted
50,371

 
$
16.05

Vested
(241,215
)
 
$
7.59

Forfeited
(4,183
)
 
$
8.22

Non vested at December 31, 2010
210,285

 
$
9.98

Granted
103,469

 
$
23.33

Vested
(150,267
)
 
$
9.51

Forfeited
(18,406
)
 
$
8.79

Non vested at December 31, 2011
145,081

 
$
20.13

Granted
73,061

 
$
23.26

Vested
(90,379
)
 
$
18.89

Forfeited
(6,607
)
 
$
24.10

Non vested at December 31, 2012
121,156

 
$
22.74


As of December 31, 2012 there was $2.2 million of total unrecognized compensation cost related to non-vested share based compensation arrangements granted under the 2006 and 2010 Incentive Compensation Program. That cost is expected to be recognized over a weighted-average period of 1.80 years. The total fair value of shares vested during the years ended December 31, 2012, 2011 and 2010 was $1.7 million, $1.4 million, and $1.8 million, respectively.
In the aggregate the total compensation expense recognized in connection with the restricted grants was $1.5 million, $1.7 million and $1.4 million during each of the years ending December 31, 2012, 2011 and 2010, respectively.
As of December 31, 2012 the Company has 5.8 million shares of common stock reserved for stock option and restricted stock grants.
v2.4.0.6
Income Taxes
 12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Income before income taxes consisted of:
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Year Ended December 31, 2010
 
(In thousands)
Domestic
$
6,604

 
$
12,043

 
$
13,694

Foreign
71,425

 
61,452

 
45,960

Total
$
78,029

 
$
73,495

 
$
59,654



The income tax provision consisted of:
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Year Ended December 31, 2010
 
(In thousands)
Current:
 
 
 
 
 
Federal
$
342

 
$
1,237

 
$
527

State
320

 
822

 
362

Foreign
4,497

 
2,990

 
1,409

 
$
5,159

 
$
5,049

 
$
2,298

Deferred:
 
 
 
 
 
Federal
3,827

 
3,699

 
1,215

State
31

 
44

 
(148
)
Foreign
(1,557
)
 
(1,755
)
 
(430
)
 
2,301

 
1,988

 
637

 
 
 
 
 
 
Provision for income taxes from ongoing operations at effective tax rate
$
7,460

 
$
7,037

 
$
2,935

Discrete Items:
 
 
 
 
 
Release of valuation allowance
—

 
(6,625
)
 
(2,300
)
Windfall expense related to stock compensation
—

 
1,938

 
—

Enhanced R&D deduction - foreign operations
—

 
(233
)
 
—

Provision for income taxes from discrete items
—

 
(4,920
)
 
(2,300
)
 
 
 
 
 
 
Total provision for income taxes
$
7,460

 
$
2,117

 
$
635


The income tax provision at the Federal statutory rate differs from the effective rate because of the following items:
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Year Ended December 31, 2010
Statutory tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
Tax impact of foreign subsidiaries (primarily in Singapore)
(8.1
)%
 
(5.6
)%
 
(2.5
)%
State income taxes, net of federal benefit
0.4
 %
 
0.8
 %
 
0.6
 %
Uncertain tax matters
3.5
 %
 
0.2
 %
 
—
 %
Tax holiday - India (Permanent Difference)
(15.6
)%
 
(15.1
)%
 
(19.9
)%
Passive income exemption - Sweden (Permanent Difference)
(3.1
)%
 
(3.0
)%
 
(3.7
)%
Other permanent differences
(0.5
)%
 
(1.0
)%
 
(5.0
)%
Other
(2.0
)%
 
(1.8
)%
 
0.3
 %
Effective tax rate from ongoing operations
9.6
 %
 
9.5
 %
 
4.8
 %
Discrete Items:
 

 
 

 
 

Release of valuation allowance
—
 %
 
(9.0
)%
 
(3.7
)%
Windfall expense related to stock compensation
—
 %
 
2.6
 %
 
—
 %
Enhanced R&D deduction - foreign operations
—
 %
 
(0.2
)%
 
—
 %
Effective tax rate after discrete items
9.6
 %
 
2.9
 %
 
1.1
 %


Current deferred income tax assets and liabilities and long-term deferred tax assets and liabilities are presented on a net basis separately in the December 31, 2012 and 2011 accompanying consolidated balance sheets. The individual balances in current and long-term deferred tax assets and liabilities are as follows:

 
2012
 
2011
 
(In thousands)
Current deferred income tax assets
$
2,074

 
$
3,277

Long-term deferred income tax assets
35,140

 
28,865

Total deferred income tax assets
37,214

 
32,142

Current deferred income tax liabilities
(239
)
 
(297
)
Long-term deferred income tax liabilities
(23,895
)
 
(19,452
)
Net deferred income tax asset
$
13,080

 
$
12,393




Deferred income taxes reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and such amounts as measured by the applicable local jurisdiction tax laws. Temporary differences and carry forwards which comprise the deferred tax assets and liabilities as of December 31, 2012 and 2011 were as follows:
 
December 31, 2012
 
December 31, 2011
 
Deferred
 
Deferred
 
Assets
 
Liabilities
 
Assets
 
Liabilities
 
(In thousands)
Depreciation and amortization
$
102

 
$
—

 
$
331

 
$
277

Share-based compensation
721

 
—

 
549

 
—

Accruals and prepaids
1,627

 
239

 
2,009

 
297

Bad debts
446

 
—

 
720

 
—

Acquired intangible assets
—

 
23,895

 
933

 
19,175

Net operating loss carryforwards
20,573

 
—

 
22,237

 
—

Tax credit carryforwards
13,745

 
—

 
5,363

 
—

 
37,214

 
24,134

 
32,142

 
19,749

Valuation allowance
—

 
—

 
—

 
—

Total deferred taxes
$
37,214

 
$
24,134

 
$
32,142

 
$
19,749



No significant discrete events occurred in 2012.
As of December 31, 2012, the Company has remaining available domestic net operating loss (“NOL”) carry-forwards of $53.4 million (net of $6.3 million utilized to offset domestic taxable income for 2012), which are available to offset future federal and certain state income taxes. Approximately $35 million of these remaining NOL carry-forwards were obtained in connection with the recent acquisition of ADAM in February 2011. The Company reviews its NOL positions to validate that all NOL carry-forwards will be utilized before they begin to expire. Portions of these remaining NOL's will expire during the years 2020 through 2027.
The Company's consolidated worldwide effective tax rate is relatively low because of the effect of conducting operating activities in certain foreign jurisdiction with low tax rates and where a significant portions of its taxable income resides. Furthermore, the Company's worldwide product development operations and intellectual property ownership is centralized into its India and Singapore subsidiaries, respectively. Our operations in India benefit from a tax holiday, which will continue through the year 2015; as such the Company's local India taxable income derived from export activities in support of our operating divisions around the world is not taxed. After the tax holiday expires taxable 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. This tax holiday had the effect of reducing tax expense by $12.3 million or approximately $0.315 per diluted share in 2012 with $7.0 million of MAT tax prepaid/accrued against 2012 income during the year ended December 31, 2012, for future taxes to be paid in India.
The Company also has a relatively low income tax rate in Singapore in which our operations are taxed at a 10% marginal 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. The concessionary tax rate granted by the EDB as compared to the statutory tax in effect in Singapore reducing income tax expense by $1.8 million or approximately $0.045 per diluted share in 2012. The pre-tax income from and the applicable statutory tax rates in each jurisdiction in which the Company had operations for the year ending December 31, 2012 were as follows:


(dollar amounts in thousands)
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe(United Kingdom)
 
Sweden
 
Total
Pre-tax income
$
6,604

 
$
1,289

 
$
420

 
$
1,465

 
$
25,188

 
$
292

 
$
35,708

 
$
67

 
$
6,996

 
$
78,029

Statutory tax rate
35.0
%
 
30.5
%
 
34.0
%
 
30.0
%
 
10.0
%
 
28.0
%
 
—
%
 
24.0
%
 
—
%
 
 

The income from the Company's operations in India is subject to a 19.94% Minimum Alternative Tax (“MAT”). The tax paid under the MAT provisions is carried forward for a period of seven years and set off against future tax liabilities computed under the regular corporate income tax provisions using the statutory 33.99% corporate income tax rate. During the year ended December 31, 2012, the Company paid/accrued $7.0 million in MAT tax. The accompanying consolidated balance sheets as of December 31, 2012 and 2011includes a long-term deferred tax asset in the amount of $11.5 million and $6.7 million, respectively, associated with cumulative future MAT tax credit entitlement.
The Company has not recognized a deferred U.S. tax liability and associated income tax expense for the undistributed earnings of its foreign subsidiaries which we consider indefinitely invested because those foreign earnings will remain permanently reinvested in those subsidiaries to fund ongoing operations and growth. If those earnings were not considered indefinitely invested, approximately $71.8 million of deferred U.S. income taxes would have been provided as of December 31, 2012.
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 carryforwards, 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. Regarding our foreign operations as of December 31, 2012, the tax years that remain open and possibly subject to examination by the tax authorities in those jurisdictions are Australia (2006 to 2012), Singapore and Brazil (2007 to 2012), New Zealand (2008 to 2012), and India (2007 to 2012).
The Company follows the provisions of FASB accounting guidance on accounting for uncertain income tax positions. Accordingly liabilities are recognized for a tax position, where based solely on its technical merits, it is believed to be more likely than not fully sustainable upon examination. This liability is included in other long-term liabilities in the accompanying consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 
(in thousands)
Balance at January 1, 2012
$
3,180

Additions for tax positions related to current year
2,482

Additions for tax positions of prior years
263

Reductions for tax position of prior years
—

Balance at December 31, 2012
$
5,925


The Company recognizes interest accrued and penalties related to unrecognized tax benefits as part of income tax expense. As of December 31, 2012 approximately $629 thousand of estimated interest and penalties is included in other long-term liabilities in the accompanying consolidated balance sheet.
v2.4.0.6
Stock Repurchases
 12 Months Ended
Dec. 31, 2012
Stock Repurchases [Abstract]  
Stock Repurchases
Stock Repurchases

Effective June 30, 2011 The Board of Directors of Ebix, Inc. unanimously approved an increase in the size of the Company's authorized share repurchase plan to acquire up to $100 million of the Company’s current outstanding shares of common stock. Under the terms of the Board’s authorization, the Company retains the right to repurchase up to $100 million in shares but does not have to repurchase this entire amount. The repurchase plan’s terms have been structured to comply with the SEC’s Rule 10b-18, and are subject to market conditions and applicable legal requirements. The program does not obligate the Company to acquire any specific number of shares and may be suspended or terminated at any time. All purchases are made in the open market and are expected to be funded from existing cash. Treasury stock is recorded at its acquired cost. During 2012 the Company repurchased 983,818 shares of its common stock under this plan for total consideration of $18.4 million. During 2011 the Company repurchased 3,510,973 shares of its common stock under this plan for total consideration of $63.7 million. In addition from the years 2006 to 2010 the Company repurchased 961,335 shares of its common stock under this plan for total consideration of $12.6 million. As of December 31, 2012 the Company had $5.4 million remaining in its share repurchase authorization.
v2.4.0.6
Derivative Instruments
 12 Months Ended
Dec. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
Derivative Instruments
The Company had recently used derivative instruments that were not designated as hedges under FASB accounting guidance related to the accounting for derivative instruments, to hedge the fluctuations in foreign exchange rates for recognized balance sheet items such as intercompany receivables. As of December 31, 2012 all of the Company's previous foreign currency hedge contracts matured. The inputs that were used in the valuation of the hedge contracts included the USD/INR foreign currency exchange spot rates in effect at the inception date of the contract, forward premiums, forward foreign currency exchange rates, term, and contract maturity date. The intended purpose of those hedging instruments was to offset the income statement impact of recorded foreign exchange transaction gains and losses resulting from U.S. dollar denominated intercompany invoices issued by our Indian subsidiary whose functional currency had been the Indian rupee until it was changed to the U.S. dollar effective July 1, 2012. The change in the fair value of these derivatives was recorded in foreign currency exchange gains (losses) in the Consolidated Statements of Income and was $1.2 million , $(2.6) million, and $1.3 million for the years ended December 31, 2012 , 2011, and 2010, respectively. These gains (losses) are in addition to the consolidated foreign exchange gains (losses) equivalent to $776 thousand , $6.9 million , and $(93) thousand recognized during the years ended December 31, 2012, 2011, and 2010, respectively, incurred by our subsidiaries for settlement of transactions denominated in other than their functional currency. The Company classifies its foreign currency hedges, for which the fair value is remeasured on a recurring basis at each reporting date, as a Level 2 instrument (i.e. wherein fair value is 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 the fair value at the measurement date.
    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 expires in June 2014, is exercisable during the 30-day period immediately following the two-year anniversary date of the business acquisition, which if exercised would enable them 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 a 10% discount off of 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. At December 31, 2012 the fair value of the put option liability was re-measured and was determined to have decreased $191 thousand during the year ended December 31, 2012 with this amount reflected as a gain included other non-operating income in the accompanying Consolidated Statement of Income. As of December 31, 2012, the aggregate fair value of this derivative instrument, which is included as in the long term liabilities in the Consolidated Balance Sheet, was $1.2 million. 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 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.
In connection with the acquisition of E-Z Data effective October 1, 2009, Ebix issued a put option to the sellers which was exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, and which if exercised would have enabled them to sell the underlying shares of common stock back to the Company for $15.11 per share, which represented a 10% discount off of the per-share value established on the effective date of the closing of Ebix’s acquisition of E-Z Data. A portion of the total purchase consideration was allocated to this put liability based on its initial fair value which was determined to be $6.6 million using a Black-Scholes model. The inputs used in the valuation of the put option included term, stock price volatility, current stock price, exercise price, and the risk free rate of return. For the years ended December 31, 2011 and 2010, the fair value of the put option was recalculated and was determined to have decreased $537 thousand and $6.1 million, respectively, which amount is appropriately shown as other non-operating income in the Consolidated Statement of Income for the years then ended. As of October 31, 2011 the put option expired unexercised. The Company had classified the put option as a level 2 instrument.
v2.4.0.6
Accounts Payable and Accrued Expenses
 12 Months Ended
Dec. 31, 2012
Accounts Payable and Accrued Liabilities, Current [Abstract]  
Accounts Payable and Accrued Expenses
Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses at December 31, 2012 and December 31, 2011, consisted of the following:
 
2012
 
2011
 
(In thousands)
Trade accounts payable
$
5,607

 
$
2,925

Accrued professional fees
295

 
215

Income taxes payable
6,913

 
4,389

Sales taxes payable
2,651

 
3,206

Other accrued liabilities
31

 
394

Total
$
15,497

 
$
11,129
v2.4.0.6
Other Current Assets
 12 Months Ended
Dec. 31, 2012
Prepaid Expense and Other Assets, Current [Abstract]  
Other Current Assets
Other Current Assets

Other current assets at December 31, 2012 and December 31, 2011 consisted of the following:
 
2012
 
2011
 
(In thousands)
Prepaid expenses
$
3,189

 
$
2,712

Sales taxes receivable from customers
598

 
984

Stop loss insurance reimbursement on medical claims
—

 
364

Due from prior owners of acquired businesses for working capital settlements
955

 
—

Research and development tax credits receivable
266

 
—

Other
108

 
442

Total
$
5,116

 
$
4,502
v2.4.0.6
Property and Equipment
 12 Months Ended
Dec. 31, 2012
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment

Property and equipment at December 31, 2012 and 2011 consisted of the following:
 
2012
 
2011
 
(In thousands)
Computer equipment
$
11,729

 
$
9,902

Buildings
3,103

 
3,362

Land
66

 
67

Leasehold improvements
2,632

 
1,745

Furniture, fixtures and other
4,888

 
3,853

 
22,418

 
18,929

Less accumulated depreciation and amortization
(12,336
)
 
(10,095
)
 
$
10,082

 
$
8,834



Depreciation expense was $3.1 million, $2.7 million and $2.4 million, for the years ended December 31, 2012, 2011 and 2010, respectively.
v2.4.0.6
Cash Option Profit Sharing Plan and Trust
 12 Months Ended
Dec. 31, 2012
Cash Option Profit Sharing Plan and Trust [Abstract]  
Cash Option Profit Sharing Plan Trust
Cash Option Profit Sharing Plan and Trust

The Company maintains a 401(k) Cash Option Profit Sharing Plan, which allows participants to contribute a percentage of their compensation to the Profit Sharing Plan and Trust up to the Federal maximum. The Company’s contributions to the Plan were $364 thousand, $318 thousand and $284 thousand for the years ending December 31, 2012, 2011 and 2010, respectively.
v2.4.0.6
Geographic Information
 12 Months Ended
Dec. 31, 2012
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 were 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):

Year Ended December 31, 2012
 
 
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe
 
Total
External Revenues
 
$
140,933

 
$
6,395

 
$
8,227

 
$
36,330

 
$
2,827

 
$
2,205

 
$
233

 
$
2,220

 
$
199,370

Long-lived assets
 
$
317,338

 
$
9,738

 
$
12,726

 
$
1,267

 
$
70,173

 
$
240

 
$
11,784

 
$
12,011

 
$
435,277








Year Ended December 31, 2011

 
 
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe
 
Total
External Revenues
 
$
120,780

 
$
836

 
$
10,504

 
$
31,991

 
$
2,943

 
$
1,915

 
$
—

 
$
—

 
$
168,969

Long-lived assets
 
$
259,425

 
$
—

 
$
14,179

 
$
1,286

 
$
63,866

 
$
233

 
$
8,376

 
$
—

 
$
347,365



Year Ended December 31, 2010

 
 
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe
 
Total
External Revenues
 
$
93,719

 
$
707

 
$
4,874

 
$
27,253

 
$
4,156

 
$
1,479

 
$
—

 
$
—

 
$
132,188

Long-lived assets
 
$
151,355

 
$
—

 
$
18,478

 
$
1,525

 
$
67,781

 
$
40

 
$
3,339

 
$
—

 
$
242,518
v2.4.0.6
Related Party Transactions
 12 Months Ended
Dec. 31, 2012
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions

We consider Bank of America (“BOA" to be a related party because BOA had provided commercial financing to the Company and its parent until April 2012, Merrill Lynch, is also a customer to whom the Company sells products and services. Revenues recognized from BOA/Merrill Lynch were $1.2 million, $860 thousand and $803 thousand for each of the years ending December 31, 2012, 2011 and 2010, respectively. Accounts receivable due from BOA/Merrill Lynch was $216 thousand and $205 thousand at December 31, 2012 and 2011, respectively. On April 26, 2012, Ebix fully paid all of its obligations and related fees then outstanding to BOA. The aggregate amount of the payment was $45.14 million and was funded from a portion of the proceeds of the Citibank led Secured Syndicated Credit Facility.

Consistent with Ebix’s corporate mission of giving back to the communities in which we operate our business, and as previously authorized by the Company’s Board of Directors, during the year ended December 31, 2012 Ebix donated $46 thousand to the Robin Raina Foundation, a non-profit 501(c) charity in support of under privileged children living in the poverty stricken areas of Delhi, India.
v2.4.0.6
Quarterly Financial Information (unaudited)
 12 Months Ended
Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information (unaudited)
Quarterly Financial Information (unaudited)
The following is the unaudited quarterly financial information for 2012, 2011 and 2010:
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
 
(in thousands, except share data)
Year Ended December 31, 2012
 
 
 
 
 
 
 
 
Total revenues
 
$
43,827

 
$
47,716

 
$
53,804

 
$
54,023

Gross Profit
 
34,798

 
38,559

 
44,304

 
43,576

Operating income
 
18,329

 
17,711

 
20,708

 
20,260

Net income
 
15,685

 
18,067

 
18,072

 
18,745

Net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.43

 
$
0.49

 
$
0.49

 
$
0.50

Diluted
 
$
0.40

 
$
0.47

 
$
0.46

 
$
0.48

Year Ended December 31, 2011
 
 
 
 
 
 
 
 
Total revenues
 
$
40,050

 
$
42,267

 
$
42,602

 
$
44,050

Gross Profit
 
32,743

 
33,353

 
33,895

 
35,389

Operating income
 
15,634

 
18,605

 
17,954

 
16,556

Net income
 
15,164

 
22,348

 
16,536

 
17,330

Net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.40

 
$
0.57

 
$
0.44

 
$
0.48

Diluted
 
$
0.37

 
$
0.53

 
$
0.41

 
$
0.44

Year Ended December 31, 2010
 
 
 
 
 
 
 
 
Total revenues
 
$
31,603

 
$
32,207

 
$
33,281

 
$
35,097

Gross Profit
 
24,540

 
24,780

 
25,863

 
27,406

Operating income
 
12,759

 
13,008

 
13,082

 
13,658

Net income
 
12,384

 
14,010

 
16,681

 
15,944

Net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.36

 
$
0.40

 
$
0.48

 
$
0.45

Diluted
 
$
0.32

 
$
0.36

 
$
0.43

 
$
0.42
v2.4.0.6
Minority Business Investment
 12 Months Ended
Dec. 31, 2012
Investments, All Other Investments [Abstract]  
Minority Business Investment
Minority Business Investment

During 2012 , Ebix acquired a minority 19.8% interest in CurePet, Inc. ("CurePet") for cash consideration in the amount of $2.0 million. CurePet is a developmental-stage enterprise that has completed 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 is also a customer of Ebix; during 2012 the Company recognized $1.5 million of revenue from CurePet, and as of December 31, 2012 there were $212 thousand of outstanding balances due from CurePet in the Company's reported trade accounts receivable. Ebix also has a revenue share arrangement with CurePet pertaining to certain customer revenues recognized by CurePet; for 2012, there have been no revenue sharing earned or accrued. Ebix is accounting for its minority investment in CurePet using the cost method. The fair value of this investment as of December 31, 2012 was determined using a discounted cash flow model, and based on this analysis it was concluded that the fair value was greater than the carrying value of the investment , and that therefore the investment was not impaired.
v2.4.0.6
Temporary Equity Temporary Equity
 12 Months Ended
Dec. 31, 2012
Temporary Equity Disclosure [Abstract]  
Temporary Equity
Temporary Equity

The $5.0 million of temporary equity reported on the Company's consolidated balance sheet as of December 31, 2012 in in connection with the June 1, 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 regards to these shares of Ebix common stock, and as discussed as discussed in Note 11 "Derivative Instruments," the Company issued a put option to PlanetSoft's three shareholders. The put option, which expires in June 2014, is exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, which if exercised would enable them 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. Accordingly and in compliance with Accounting Standards Codification ("ASC") 480 "Accounting for Redeemable Equity Instruments," in that the common stock is redeemable for cash at the option of the holders, and not within control of the Company, it is presented outside of the stockholders equity section of the consolidated balance sheet, and shown as a separate line referred to as "temporary equity" on the consolidated balance sheet appearing after liabilities, and before the stockholders equity section, and will remain so until the second quarter of 2014.
v2.4.0.6
Schedule II - Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2012
Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts
Schedule II
Ebix, Inc.

Schedule II—Valuation and Qualifying Accounts

for the Years ended December 31, 2012, December 31, 2011 and December 31, 2010
Allowance for doubtful accounts receivable (in thousands)
 
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Year Ended December 31, 2010
Beginning balance
 
$
1,719

 
$
1,126

 
$
565

Provision for doubtful accounts
 
442

 
976

 
1,143

Write-off of accounts receivable against allowance
 
(1,004
)
 
(725
)
 
(586
)
Other
 
—

 
342

 
4

Ending balance
 
$
1,157

 
$
1,719

 
$
1,126

Valuation allowance for deferred tax assets (in thousands)
 
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Year Ended December 31, 2010
Beginning balance
 
$
—

 
$
(6,626
)
 
$
(10,431
)
Decrease (increase)
 
—

 
6,626

 
3,805

Ending balance
 
$
—

 
$
—

 
$
(6,626
)
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2012
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation— The consolidated financial statements include the accounts of Ebix and its wholly owned subsidiaries.  The effect of inter-company balances and transactions has been eliminated.
Use of Estimates
Use of Estimates—The preparation of consolidated financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and reported amounts of revenue and expenses during those reporting periods. Management has made material estimates primarily with respect to revenue recognition and deferred revenue, accounts receivable, acquired intangible assets, contingent earnout liabilities in connection with prior business acquisitions, business investments, and the provision for income taxes. Actual results may be materially different from those estimates.
Reclassification
Reclassification—Certain of the prior year or prior quarters within 2012 balances including the notes thereto have been reclassified to conform to the current year presentation.
Segment Reporting
Segment Reporting—Since the Company, from the perspective of its chief operating decision maker, allocates resources and evaluates business performance as a single entity that provides software and related services to a single industry on a worldwide basis, the Company reports as a single segment.
Cash and Cash Equivalents
Cash and Cash Equivalents—The Company considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. Such investments are stated at cost, which approximates fair value. The Company does maintain cash balances in banking institutions in excess of federally insured amounts and therefore is exposed to the related potential credit risk associated with such cash deposits.
Short-term Investments
Short-term Investments—The Company’s short-term investments consist of certificates of deposits with established commercial banking institutions with readily determinable fair values. Ebix accounts for investments that are reasonably expected to be realized in cash, sold or consumed during the year as short-term investments that are available-for-sale. The carrying amount of investments in marketable securities approximates fair value.
Fair Value of Financial Instruments
Fair Value of Financial Instruments—The Company follows the relevant GAAP guidance regarding the determination and measurement of the fair value of financial instruments in which 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 value hierarchy which requires an entity to maximize the use of observable inputs when measuring fair value. The guidance describes the following three levels of inputs that may be used in the methodology to measure fair value:
•
Level 1 — Quoted prices available in active markets for identical investments as of the reporting date;
•
Level 2 — Inputs other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date; and,
•
Level 3 — Unobservable inputs, which are to be 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 December 31, 2012 and 2011 the Company has the following financial instruments to which it had to consider fair values and had to make fair assessments:
•
Common share-based put option for which the fair value was measured as Level 2 instrument.
•
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 periodically 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 consolidated balance sheets at December 31, 2012 and 2011 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 debt under the revolving line of credit and term loans with Citibank and business investments. The estimated fair value of such instruments at December 31, 2012 and 2011 reasonably approximates their carrying value as reported on the consolidated balance sheets.
Revenue Recognition and Deferred Revenue
Revenue Recognition and Deferred Revenue—The Company derives its revenues primarily from professional and support services, which includes revenue generated from subscription and transaction fees pertaining to services delivered over our exchanges or from our application service provider (“ASP”) platforms, software development projects and associated fees for consulting, implementation, training, and project management provided to customers using our systems, and business process outsourcing revenue ("BPO"). 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.
The Company follows the relevant technical accounting guidance regarding revenue recognition as issued by the Financial Accounting Standards Board ("FASB") and the Securities and Exchange Commission's ("SEC"). Company considers revenue earned and realizable when: (a) persuasive evidence of the sales arrangement exists, (b) the arrangement fee is fixed or determinable, (c) service delivery or performance has occurred, (d) customer acceptance has been received or is reasonably assured, if contractually required, and (e) collectability of the arrangement fee is probable. The Company typically uses signed contractual agreements as persuasive evidence of a sales arrangement. We apply the provisions of the relevant FASB accounting pronouncements 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 appropriate authoritative 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. Deliverables are accounted for separately if they meet all of the following criteria: a) the delivered item has value to the customer on a stand-alone basis; b) there is objective and reliable evidence of the fair value of the undelivered items; and c) if the arrangement includes a general right of return relative to the delivered items, the delivery or performance of the undelivered items is probable and substantially controlled by the Company. Under the relevant accounting guidance, when multiple-deliverables included in an arrangement are to be separated into different units of accounting, the arrangement consideration is allocated to the identified separate units of accounting based on fair values as regarding the relative selling price hierarchy. We determine the relative selling price for a deliverable based on vendor-specific objective evidence of selling price (“VSOE”), if available, or third-party evidence ("TPE") in the alternative if available, or finally our best estimate of selling price (“BESP”), if VSOE or TPE is not available.
The Company begins to recognize revenue from license fees for its ASP products upon granting customer access to the respective processing platform. Transaction services fee revenue for this use of our exchanges or ASP platforms is recognized as the transactions occur and are generally billed in arrears. Revenues from BPO arrangements, which include data entry and call center services, and insurance certificate creation and tracking services, are recognized as the services are performed. Service fees for hosting arrangements are recognized over the requisite service period. Revenue derived from the licensing of third party software products in connection with sales of the Company’s software licenses is recognized upon delivery together with the Company’s licensed software products. Fees for training, data conversion, installation, and consulting services fees are recognized as revenue when the services are performed. Revenue for maintenance and support services are recognized ratably over the term of the support agreement.
Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by the 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.
Deferred revenue includes payments or billings that have been received or made prior to performance and, in certain cases, cash collections and pertain to maintenance and support, initial setup or registration fees under hosting agreements, and software license fees received in advance of delivery and acceptance.
Accounts Receivable and the Allowance for Doubtful Accounts Receivable
The unbilled receivables pertain to certain professional service engagements and long-term development projects for which the timing of billing it tied to contractual milestones. The Company adheres to such contractually stated performance milestones and accordingly issues invoices to customers on a timely basis as per contract billing schedules. Accounts receivable are written off against the allowance account when the Company has exhausted all reasonable collection efforts. Management specifically analyzes accounts receivable and historical bad debts, write-offs, customer concentrations, customer credit-worthiness, current economic trends, and changes in our customer payment terms when evaluating the adequacy of the allowance for doubtful accounts.
Accounts Receivable and the Allowance for Doubtful Accounts Receivable—
Costs of Services Provided
Costs of Services Provided—Costs of services provided consist of data processing costs, customer support costs including personnel costs to maintain our proprietary databases, costs to provide customer call center support, hardware and software expense associated with transaction processing systems and exchanges, telecommunication and computer network expense, and occupancy costs associated with facilities where these functions are performed. Depreciation expense is not included in costs of services provided.
Goodwill and Indefinite-lived Intangible Assets
Goodwill and Indefinite-Lived Intangible Assets— Goodwill represents the cost in excess of the fair value of the identifiable net assets from the businesses that we acquire. In accordance with the relevant FASB accounting guidance, goodwill is tested for impairment at the reporting unit level on an annual basis or on an interim basis if an event occurred or circumstances change that would indicate that fair value of a reporting unit decreased 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. In 2011 the Company applied the new guidance concerning goodwill impairment evaluation. In accordance with this new technical guidance the Company first assessed 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 their 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 we 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 30 each year. During the years ended December 31, 2012, 2011, and 2010, we had no impairment of our reporting unit goodwill balances.
The Company’s indefinite-lived assets are associated with the estimated fair value of the contractual customer relationships existing with the property and casualty insurance carriers in Australia using our property and casualty ("P&C") data exchange and with ten corporate customers using our client relationship management (“CRM”) platform in the United States. Prior to these underlying business acquisitions Ebix had pre-existing contractual relationships with these carriers and corporate clients. The contracts are renewable at little or no cost, and Ebix intends to continue to renew these contracts indefinitely and has the ability to do so. The proprietary technology supporting the P&C data exchange and CRM platform, and used to deliver services to these carriers and corporate clients, cannot feasibly be effectively replaced in the foreseeable future, and accordingly the cash flows forthcoming from these customers are expected to continue indefinitely. With respect to the determination of the indefinite life, the Company considered the expected use of these intangible assets, historical experience in renewing or extending similar arrangements, and the effects of competition, and concluded that there were no indications from these factors to suggest that the expected useful life of these customer relationships would be finite. The Company concluded that no legal, regulatory, contractual, or competitive factors limited the useful life these intangible assets and therefore their life was considered to be indefinite, and accordingly the Company expects these customer relationships to remain the same for the foreseeable future. The fair values of these indefinite-lived intangible assets were based on the analysis of discounted cash flow (“DCF”) models extended out fifteen to twenty years. In that indefinite-lived does not imply an infinite life, but rather means that the subject customer relationships are expected to extend beyond the foreseeable time horizon, we utilized fifteen to twenty year DCF projections, as the valuation models that were applied consider a fifteen to twenty year time frame to be an indefinite period. Indefinite-lived intangible assets are not amortized, but rather are tested for impairment annually. We perform our annual impairment testing of indefinite-lived intangible assets as of September 30th of each year. During the years ended December 31, 2012, 2011, and 2010, we had no impairments to the recorded balances of our indefinite-lived intangible assets. We perform the impairment test for our indefinite-lived intangible assets by comparing the asset’s fair value to its carrying value. An impairment charge is recognized if the asset’s estimated fair value is less than its carrying value.
Purchased Intangible Assets
Purchased Intangible Assets—Purchased intangible assets represent the estimated fair value of acquired intangible assets from the businesses that we acquire in the U.S. and foreign countries in which we operate. These purchased intangible assets include customer relationships, developed technology, informational databases, and trademarks. We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows:
 
Life
Category
(yrs)
Customer relationships
7-20

Developed technology
3-12

Trademarks
3-15

Non-compete agreements
5

Database
10
Income Taxes
Income Taxes— The Company follows the asset and liability method of accounting for income taxes pursuant to the pertinent guidance issued by the FASB. Deferred income taxes are recorded to reflect the tax consequences on future years of differences between the tax basis of assets and liabilities, and operating loss and tax credit carry forwards, and their financial reporting amounts at each period end using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing the realizability of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. A valuation allowance is 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 follows the provisions of FASB accounting guidance on accounting for uncertain income tax positions. The guidance utilizes a two-step approach for evaluating tax positions. Recognition (“Step 1”) occurs when an enterprise concludes that a tax position, based solely on its technical merits is more likely than not to be sustained upon examination. Measurement (“Step 2”) is only addressed if Step 1 has been satisfied. Under Step 2, the tax benefit is measured at the largest amount of benefit, determined on a cumulative probability basis that is more likely than not to be realized upon final settlement. As used in this context, the term “more likely than not” is interpreted to mean that the likelihood of occurrence is greater than 50%.
Foreign Currency Translation
Foreign Currency Translation—Historically the functional currency for the Company's foreign subsidiaries in India and Singapore had been the Indian rupee and Singapore dollar, respectively. As a result of the Company's rapid growth, including its recent acquisition of PlanetSoft, and the expansion of its intellectual property research and development activities in its Singapore subsidiary, and its product development activities and information technology enabled services for the insurance industry provided by its India subsidiary in support of Ebix's operating divisions across the world (both of which are transacted in U.S. dollars), management undertook a reconsideration of functional currency designations for these two foreign subsidiaries in India and Singapore, and concluded that effective July 1, 2012 the functional currency for these entities should be changed to the U.S. dollar. Management believes that the acquisition of PlanetSoft in combination with the other four business acquisitions completed during the current year and the cumulative effect of business acquisitions made over the last few years which in turn has necessitated the rapid growth of the Company's operations in India and Singapore, were indicative of a significant change in the economic facts and circumstances that justified the reconsideration and ultimate change in the functional currency. Had the change in the functional currency designation for our India and Singapore subsidiaries not been made, the Company would have incurred and recognized approximately $49 thousand of additional foreign currency exchange gains during the year ended December 31, 2012. Furthermore, a portion of monetary assets and liabilities for these two foreign subsidiaries that are denominated in foreign currencies are re-measured into U.S. dollars at the exchange rates in effect at each reporting date. These corresponding re-measurement gains and losses are included as a component of foreign currency exchange gains and losses in the accompanying Consolidated Statements of Income and amounted to a $151 thousand loss for the year ended December 31, 2012.
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. 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.
Advertising
Advertising—Advertising costs are expensed as incurred. Advertising costs amounted to $1.4 million, $1.0 million, and $973 thousand in 2012, 2011, and 2010, respectively, and are included in sales and marketing expenses in the accompanying consolidated statements of income.
Sales Commissions
Sales Commissions —Certain sales commission paid with respect to subscription-based revenues are deferred and subsequently amortized into operating expenses ratably over the term of the related customer subscription contracts. As of December 31, 2012 and 2011, $442 thousand and $402 thousand, respectfully, of sales commissions were deferred and included in other current assets on the accompanying consolidated balance sheet. During the years ended December 31, 2012 and 2011 the Company amortized $1.1 million and $465 thousand, respectively, of previously deferred sales commissions and included this expense in sales and marketing costs on the accompanying consolidated statements of income.
Property and Equipment
Property and Equipment—Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the assets estimated useful lives. Leasehold improvements are amortized over the shorter of the expected life of the improvements or the remaining lease term. Repairs and maintenance are charged to expense as incurred and major improvements that extend the life of the asset are capitalized and depreciated over the expected remaining life of the related asset. Gains and losses resulting from sales or retirements are recorded as incurred, at which time related costs and accumulated depreciation are removed from the Company’s accounts. Fixed assets acquired in acquisitions are recorded at fair value. The estimated useful lives applied by the Company for property and equipment are as follows:
 
Life
Asset Category
(yrs)
Computer equipment
5
Furniture, fixtures and other
7
Buildings
30
Leasehold improvements
Life of the lease
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2012
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 years ended December 31, 2012 , 2011 and 2010.
 
For the Year Ended
 
December 31,
(dollar amounts in thousands)
 
2012
 
2011
 
2010
Exchanges
 
$
159,678

 
$
130,638

 
$
94,212

Broker Systems
 
18,612

 
18,006

 
13,841

Business Process Outsourcing (“BPO”)
 
16,140

 
14,944

 
15,586

Carrier Systems
 
4,940

 
5,381

 
8,549

Totals
 
$
199,370

 
$
168,969

 
$
132,188
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 table:

 
 
Fair Values at Reporting Date Using*
Descriptions
 
Balance at December 31, 2012
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 ($213 thousand is recorded in the long-term sections of the consolidated balance sheets)
 
$
1,184

$
1,184

$
—

$
—

Total assets measured at fair value
 
$
1,184

$
1,184

$
—

$
—

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Derivatives:
 
 
 
 
 
Common share-based put option (a)
 
$
1,186

$
—

$
1,186

$
—

Foreign exchange contracts (b)
 
—

—

—

—

Contingent accrued earn-out acquisition consideration (c)
 
17,495

—

—

17,495

Total liabilities measured at fair value
 
$
18,681

$
—

$
1,186

$
17,495

 
 
 
 
 
 
(a) 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 expires in June 2014, is exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, which if exercised would enable them 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 a 10% discount off of 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.
(b) The market valuation approach is applied and the valuation inputs include foreign currency exchange spot rates, forward premiums, forward foreign currency exchange rates, term, and maturity dates. As of December 31, 2012 all the Company's derivative instruments in the form of foreign currency hedge instruments had been settled.
(c) The income valuation approach is applied and the valuation inputs include the contingent payment arrangement terms, projected cash flows, rate of return, and probability assessments.
* During the year ended December 31, 2012 there were no transfers between fair value Levels 1, 2 or 3.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the year.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
Contingent Liability for Accrued Earn-out Acquisition Consideration
 
 
(in thousands)
 
 
 
Beginning balance at January 1, 2012
 
$
7,590

 
 
 
Total remeasurement adjustments:
 
 
       (Gains) or losses included in earnings **
 
(699
)
       (Gains) or losses recorded against goodwill
 
—

       Foreign currency translation adjustments ***
 
(143
)
 
 
 
Acquisitions and settlements
 
 
       Business acquisitions
 
16,258

       Settlements
 
(5,511
)
 
 
 
Ending balance at December 31, 2012
 
$
17,495

 
 
 
The amount of total (gains) or losses for the year included in earnings or changes to net assets, attributable to changes in unrealized (gains) or losses relating to assets or liabilities still held at year-end.
 
$
(802
)
 
 
 
** recorded as an adjustment to reported general and administrative expenses
*** recorded as a component of other comprehensive income within stockholders' equity
Fair Value, Significant Unobservable Inputs Used in Measurement of Contingent Consideration Liabilities
The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows:
  
 
 
 
 
 
 
(in thousands)
 
Fair Value at  December 31, 2012
 
             Valuation Technique
 
Significant Unobservable
Input
Contingent acquisition consideration:
(USIX, HealthConnect, Taimma, PlanetSoft, and TriSystems acquisitions)
 
$17,495
 
Discounted cash flow
 
Annualized revenue and probability of achievement
Schedule of Goodwill
Changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 are as follows:

 
December 31, 2012
 
December 31, 2011
 
(in thousands)
Beginning Balance
$
259,218

 
$
180,602

Additions, net (see Note 3)
67,401

 
80,259

Foreign currency translation adjustments
129

 
(1,643
)
Ending Balance
$
326,748

 
$
259,218
Schedule of Finite-Lived Intangible Assets by Major Class, Estimated Useful Lives
We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows:
 
Life
Category
(yrs)
Customer relationships
7-20

Developed technology
3-12

Trademarks
3-15

Non-compete agreements
5

Database
10
Schedule of Intangible Assets, Excluding Goodwill
Intangible assets as of December 31, 2012 and December 31, 2011, are as follows:
 
December 31,
 
2012
 
2011
 
(In thousands)
Finite-lived intangible assets:
 
 
 
Customer relationships
$
57,638

 
$
40,289

Developed technology
14,025

 
11,640

Trademarks
2,638

 
2,188

Non-compete agreements
538

 
418

Backlog
140

 
140

Database
212

 
207

Total intangibles
75,191

 
54,882

Accumulated amortization
(22,600
)
 
(16,496
)
Finite-lived intangibles, net
$
52,591

 
$
38,386

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

 
$
30,453
Useful Lives of Property and Equipment Used in Computation of Depreciation
The estimated useful lives applied by the Company for property and equipment are as follows:
 
Life
Asset Category
(yrs)
Computer equipment
5
Furniture, fixtures and other
7
Buildings
30
Leasehold improvements
Life of the lease
v2.4.0.6
Earnings per Share (Tables)
 12 Months Ended
Dec. 31, 2012
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Diluted, by Common Class
The basic and diluted earnings per share (“EPS”), and the basic and diluted weighted average shares outstanding for all periods as presented in the accompanying Consolidated Statements of Income are shown below :
 
 
For the year ended
December 31,
 
 
(In thousands, except per share amounts)
Earnings per share:
 
2012
 
2011
 
2010
Basic earnings per common share
 
$
1.91

 
$
1.89

 
$
1.69

Diluted earnings per common share
 
$
1.80

 
$
1.75

 
$
1.51

Basic weighted average shares outstanding
 
36,948

 
37,742

 
34,845

Diluted weighted average shares outstanding
 
39,100

 
40,889

 
39,018
Schedule of Earnings Per Share, Diluted
To calculate diluted earnings per share, interest expense related to convertible debt excluding imputed interest, was added back to net income as follows:
 
 
For the year ended
December 31,
 
 
(in thousands, except per share amounts)
 
 
2012
 
2011
 
2010
Net income
 
$
70,569

 
$
71,378

 
$
59,019

Convertible debt interest (excludes imputed interest)
 
—

 
—

 
10

Net income for diluted earnings per share purposes
 
$
70,569

 
$
71,378

 
$
59,029

Diluted shares outstanding
 
39,100

 
40,889

 
39,018

Diluted earnings per common share
 
$
1.80

 
$
1.75

 
$
1.51
Schedule of Weighted Average Number of Shares
Diluted shares outstanding determined as follows for each years ending December 31, 2012, 2011, and 2010.

 
 
For the year ended
December 31,
 
 
(in thousands)
 
 
2012
 
2011
 
2010
Basic weighted average shares outstanding
 
36,948

 
37,742

 
34,845

Incremental shares for common stock equivalents
 
2,152

 
3,147

 
4,173

Diluted shares outstanding
 
39,100

 
40,889

 
39,018
v2.4.0.6
Business Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2012
Business Combinations [Abstract]  
Schedule of Net Assets Acquired in Business Acquisitions
The following table summarizes the net assets acquired as a result of the acquisitions that occurred during 2012 and 2011:
 
 
December 31,
(in thousands)
 
2012
 
2011
Current assets
 
$
6,262

 
$
9,710

Property and equipment
 
1,328

 
1,626

Intangible assets
 
20,246

 
20,970

Deferred tax asset, (net)
 
—

 
9,294

Other assets
 
202

 
—

Goodwill
 
67,376

 
80,516

Total assets acquired
 
95,414

 
122,116

Less: liabilities assumed
 
(34,302
)
 
(15,696
)
Net assets acquired
 
61,112

 
106,420
Schedule of Identified Intangible Assets Acquired as Part of Business Acquisitions
The following table summarizes the separately identified intangible assets acquired as a result of the acquisitions that occurred during 2012 and 2011:
 
 
December 31,
 
 
2012
 
2011
 
 
 
 
Weighted
Average
 
 
 
Weighted
Average
Intangible asset Category
 
Fair Value
 
Useful Life
 
Fair Value
 
Useful Life
 
 
(in thousands)
 
(in years)
 
(in thousands)
 
(in years)
Customer relationships
 
$
17,365

 
10.9
 
$
16,594

 
11.7
Developed technology
 
2,327

 
4.5
 
2,406

 
5.3
Non-compete agreements
 
118

 
5.0
 
—

 
0.0
Trademarks
 
436

 
10.0
 
1,970

 
13.4
Total acquired intangible assets
 
$
20,246

 
10.1
 
$
20,970

 
11.2
Schedule of Intangible Assets, Future Amortization Expense
Estimated aggregate future amortization expense for the intangible assets recorded as part of the business acquisitions described above and other prior acquisitions is as follows:
Estimated Amortization Expenses (in thousands):
 
For the year ended December 31, 2013
$
7,067

For the year ended December 31, 2014
6,688

For the year ended December 31, 2015
6,024

For the year ended December 31, 2016
5,705

For the year ended December 31, 2017
5,226

Thereafter
21,881

 
 

 
$
52,591

 
 
v2.4.0.6
Pro Forma Financial Information (Tables)
 12 Months Ended
Dec. 31, 2012
Pro Forma Financial Information [Abstract]  
Unaudited Pro Forma Financial Information
 
 
As Reported
2012
 
Pro Forma
2012
 
As Reported
2011
 
Pro Forma
2011
 
 
 
 
(unaudited)
 
 
 
(unaudited)
 
 
(In thousands, except per share amounts)
Revenue
 
$
199,370

 
$
212,360

 
$
168,969

 
$
209,748

Net Income
 
$
70,569

 
$
70,086

 
$
71,378

 
$
72,391

Basic EPS*
 
$
1.91

 
$
1.89

 
$
1.89

 
$
1.88

Diluted EPS*
 
$
1.80

 
$
1.79

 
$
1.75

 
$
1.74
v2.4.0.6
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]  
Schedule Of Future Principal Debt Payments and Minimum Lease Payments Under Non-Cancelable Operating And Capital Leases
Commitments for minimum rentals under non-cancellable leases and debt obligations as of December 31, 2012 were as follows:
Year
 
Debt
 
Capital Leases
 
Operating Leases
 
 
(in thousands)
2013
 
$
11,995

 
$
303

 
$
4,854

2014
 
11,312

 
195

 
3,898

2015
 
11,651

 
87

 
1,905

2016
 
46,315

 
—

 
1,682

2017
 
—

 
—

 
1,656

Thereafter
 
—

 
—

 
1,387

Total
 
$
81,273

 
$
585

 
$
15,382

Less: sublease income
 
 
 
 
 
(60
)
Net lease payments
 
 
 
 
 
$
15,322

Less: amount representing interest
 
 
 
(77
)
 
 
Present value of obligations under capital leases
 
 
 
$
508

 
 
Less: current portion
 
(11,995
)
 
(277
)
 
 
Long-term obligations
 
$
69,278

 
$
231

 
 
v2.4.0.6
Share-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Share-based Payment Award, Valuation Assumptions
The following table includes the weighted- average assumptions used in estimating the fair values and the resulting weighted-average fair value of stock options granted in the periods presented:
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Year Ended December 31, 2010
Weighted average fair values of stock options granted
$
16.94

 
$
20.58

 
$
21.70

Expected volatility
47.9
%
 
59.0
%
 
54.9
%
Expected dividends
1.18
%
 
.74
%
 
—
%
Weighted average risk-free interest rate
.33
%
 
.33
%
 
.72
%
Expected life of stock options (in years)
3.5

 
3.5

 
3.5
Schedule of Stock Options Activity
A summary of stock option activity for the years ended December 31, 2012, 2011 and 2010 is as follows:
 
Within Plans
 
Outside Plan
 
Weighted
Average
Exercise Price
 
Weighted
Average
Remaining
Contractual
Term (Years)
 
Aggregate Intrinsic
Value
 
 
 
 
 
 
 
 
 
(in thousands)
Outstanding at January 1, 2010
4,542,636

 
5,625

 
$
1.69

 
2.91
 
$
66,344

Granted
45,000

 
—

 
$
21.70

 
 
 
 
Exercised
(1,247,160
)
 
(5,625
)
 
$
4.99

 
 
 
 
Canceled
—

 
—

 
$
—

 
 
 
 
Outstanding at December 31, 2010
3,340,476

 
—

 
$
2.22

 
2.51
 
$
71,638

Granted
45,000

 
—

 
$
20.58

 
 
 
 
Exercised
(69,509
)
 
—

 
$
0.73

 
 
 
 
Canceled
(792
)
 
—

 
$
0.72

 
 
 
 
Outstanding at December 31, 2011
3,315,175

 
—

 
$
2.51

 
1.56
 
$
64,959

Granted
45,000

 
—

 
$
16.94

 
 
 
 
Exercised
(1,361,542
)
 
—

 
$
0.75

 
 
 
 
Canceled
—

 
—

 
$
—

 
 
 
 
Outstanding at December 31, 2012
1,998,633

 
—

 
$
4.03

 
1.17
 
$
24,171

Exercisable at December 31, 2012
1,863,633

 
—

 
$
2.96

 
1.03
 
$
24,533
Schedule of Nonvested Share Activity
A summary of non-vested options and changes for the years ended December 31, 2012, 2011 and 2010 is as follows:

 
Non-Vested Number of Shares
 
Weighted
Average
Exercise Price
 
 
 
 
Non-vested balance at January 1, 2010
303,900

 
$
11.79

Granted
45,000

 
$
21.70

Vested
(101,210
)
 
$
10.61

Canceled
—

 
$
—

Non-vested balance at December 31, 2010
247,690

 
$
14.07

Granted
45,000

 
$
20.58

Vested
(112,685
)
 
$
11.71

Canceled
—

 
$
—

Non-vested balance at December 31, 2011
180,005

 
$
17.17

Granted
45,000

 
$
16.94

Vested
(90,005
)
 
$
14.60

Canceled
—

 
$
—

Non-vested balance at December 31, 2012
135,000

 
$
18.80
Schedule of Shares Authorized under Stock Option Plans, by Exercise Price Range
The following table summarizes information about stock options outstanding by price range as of December 31, 2012:
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number Outstanding
 
Weighted-Average Remaining Contractual Life (Years)
 
Weighted-Average Exercise Price
 
Number of Shares
 
Weighted-Average Exercise Price
$0.59-$1.75
 
1,470,375

 
0.90
 
$
0.97

 
1,470,375

 
$
0.97

$2.17-$2.36
 
54,000

 
3.39
 
$
2.27

 
54,000

 
$
2.27

$6.98-$7.27
 
204,258

 
0.63
 
$
7.16

 
204,258

 
$
7.16

$16.94-$21.70
 
270,000

 
2.60
 
$
18.66

 
135,000

 
$
18.52

 
 
1,998,633

 
1.17
 
$
4.03

 
1,863,633

 
$
2.96
Schedule of Nonvested Restricted Stock Activity
A summary of the status of the Company’s non-vested restricted stock grant shares is presented in the following table:

 
Shares
 
Weighted-Average Grant Date
Fair Value
Non vested at January 1, 2010
405,312

 
$
7.79

Granted
50,371

 
$
16.05

Vested
(241,215
)
 
$
7.59

Forfeited
(4,183
)
 
$
8.22

Non vested at December 31, 2010
210,285

 
$
9.98

Granted
103,469

 
$
23.33

Vested
(150,267
)
 
$
9.51

Forfeited
(18,406
)
 
$
8.79

Non vested at December 31, 2011
145,081

 
$
20.13

Granted
73,061

 
$
23.26

Vested
(90,379
)
 
$
18.89

Forfeited
(6,607
)
 
$
24.10

Non vested at December 31, 2012
121,156

 
$
22.74
v2.4.0.6
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Income before income taxes consisted of:
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Year Ended December 31, 2010
 
(In thousands)
Domestic
$
6,604

 
$
12,043

 
$
13,694

Foreign
71,425

 
61,452

 
45,960

Total
$
78,029

 
$
73,495

 
$
59,654
Schedule of Components of Income Tax Expense (Benefit)
The income tax provision consisted of:
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Year Ended December 31, 2010
 
(In thousands)
Current:
 
 
 
 
 
Federal
$
342

 
$
1,237

 
$
527

State
320

 
822

 
362

Foreign
4,497

 
2,990

 
1,409

 
$
5,159

 
$
5,049

 
$
2,298

Deferred:
 
 
 
 
 
Federal
3,827

 
3,699

 
1,215

State
31

 
44

 
(148
)
Foreign
(1,557
)
 
(1,755
)
 
(430
)
 
2,301

 
1,988

 
637

 
 
 
 
 
 
Provision for income taxes from ongoing operations at effective tax rate
$
7,460

 
$
7,037

 
$
2,935

Discrete Items:
 
 
 
 
 
Release of valuation allowance
—

 
(6,625
)
 
(2,300
)
Windfall expense related to stock compensation
—

 
1,938

 
—

Enhanced R&D deduction - foreign operations
—

 
(233
)
 
—

Provision for income taxes from discrete items
—

 
(4,920
)
 
(2,300
)
 
 
 
 
 
 
Total provision for income taxes
$
7,460

 
$
2,117

 
$
635
Schedule of Effective Income Tax Rate Reconciliation
The income tax provision at the Federal statutory rate differs from the effective rate because of the following items:
 
Year Ended December 31, 2012
 
Year Ended December 31, 2011
 
Year Ended December 31, 2010
Statutory tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
Tax impact of foreign subsidiaries (primarily in Singapore)
(8.1
)%
 
(5.6
)%
 
(2.5
)%
State income taxes, net of federal benefit
0.4
 %
 
0.8
 %
 
0.6
 %
Uncertain tax matters
3.5
 %
 
0.2
 %
 
—
 %
Tax holiday - India (Permanent Difference)
(15.6
)%
 
(15.1
)%
 
(19.9
)%
Passive income exemption - Sweden (Permanent Difference)
(3.1
)%
 
(3.0
)%
 
(3.7
)%
Other permanent differences
(0.5
)%
 
(1.0
)%
 
(5.0
)%
Other
(2.0
)%
 
(1.8
)%
 
0.3
 %
Effective tax rate from ongoing operations
9.6
 %
 
9.5
 %
 
4.8
 %
Discrete Items:
 

 
 

 
 

Release of valuation allowance
—
 %
 
(9.0
)%
 
(3.7
)%
Windfall expense related to stock compensation
—
 %
 
2.6
 %
 
—
 %
Enhanced R&D deduction - foreign operations
—
 %
 
(0.2
)%
 
—
 %
Effective tax rate after discrete items
9.6
 %
 
2.9
 %
 
1.1
 %
Schedule of Deferred Tax Assets and Liabilities
The individual balances in current and long-term deferred tax assets and liabilities are as follows:

 
2012
 
2011
 
(In thousands)
Current deferred income tax assets
$
2,074

 
$
3,277

Long-term deferred income tax assets
35,140

 
28,865

Total deferred income tax assets
37,214

 
32,142

Current deferred income tax liabilities
(239
)
 
(297
)
Long-term deferred income tax liabilities
(23,895
)
 
(19,452
)
Net deferred income tax asset
$
13,080

 
$
12,393
Deferred Income Tax, Temporary Differences Between Amounts of Assets and Liabilities
Temporary differences and carry forwards which comprise the deferred tax assets and liabilities as of December 31, 2012 and 2011 were as follows:
 
December 31, 2012
 
December 31, 2011
 
Deferred
 
Deferred
 
Assets
 
Liabilities
 
Assets
 
Liabilities
 
(In thousands)
Depreciation and amortization
$
102

 
$
—

 
$
331

 
$
277

Share-based compensation
721

 
—

 
549

 
—

Accruals and prepaids
1,627

 
239

 
2,009

 
297

Bad debts
446

 
—

 
720

 
—

Acquired intangible assets
—

 
23,895

 
933

 
19,175

Net operating loss carryforwards
20,573

 
—

 
22,237

 
—

Tax credit carryforwards
13,745

 
—

 
5,363

 
—

 
37,214

 
24,134

 
32,142

 
19,749

Valuation allowance
—

 
—

 
—

 
—

Total deferred taxes
$
37,214

 
$
24,134

 
$
32,142

 
$
19,749
Schedule of Income Before Income Tax and Applicable Tax Rates, Domestic and Foreign
The pre-tax income from and the applicable statutory tax rates in each jurisdiction in which the Company had operations for the year ending December 31, 2012 were as follows:


(dollar amounts in thousands)
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe(United Kingdom)
 
Sweden
 
Total
Pre-tax income
$
6,604

 
$
1,289

 
$
420

 
$
1,465

 
$
25,188

 
$
292

 
$
35,708

 
$
67

 
$
6,996

 
$
78,029

Statutory tax rate
35.0
%
 
30.5
%
 
34.0
%
 
30.0
%
 
10.0
%
 
28.0
%
 
—
%
 
24.0
%
 
—
%
 
 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 
(in thousands)
Balance at January 1, 2012
$
3,180

Additions for tax positions related to current year
2,482

Additions for tax positions of prior years
263

Reductions for tax position of prior years
—

Balance at December 31, 2012
$
5,925
v2.4.0.6
Accounts Payable and Accrued Expenses (Tables)
 12 Months Ended
Dec. 31, 2012
Accounts Payable and Accrued Liabilities, Current [Abstract]  
Schedule of Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses at December 31, 2012 and December 31, 2011, consisted of the following:
 
2012
 
2011
 
(In thousands)
Trade accounts payable
$
5,607

 
$
2,925

Accrued professional fees
295

 
215

Income taxes payable
6,913

 
4,389

Sales taxes payable
2,651

 
3,206

Other accrued liabilities
31

 
394

Total
$
15,497

 
$
11,129
v2.4.0.6
Other Current Assets (Tables)
 12 Months Ended
Dec. 31, 2012
Prepaid Expense and Other Assets, Current [Abstract]  
Schedule of Other Current Assets
Other current assets at December 31, 2012 and December 31, 2011 consisted of the following:
 
2012
 
2011
 
(In thousands)
Prepaid expenses
$
3,189

 
$
2,712

Sales taxes receivable from customers
598

 
984

Stop loss insurance reimbursement on medical claims
—

 
364

Due from prior owners of acquired businesses for working capital settlements
955

 
—

Research and development tax credits receivable
266

 
—

Other
108

 
442

Total
$
5,116

 
$
4,502
v2.4.0.6
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2012
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and equipment at December 31, 2012 and 2011 consisted of the following:
 
2012
 
2011
 
(In thousands)
Computer equipment
$
11,729

 
$
9,902

Buildings
3,103

 
3,362

Land
66

 
67

Leasehold improvements
2,632

 
1,745

Furniture, fixtures and other
4,888

 
3,853

 
22,418

 
18,929

Less accumulated depreciation and amortization
(12,336
)
 
(10,095
)
 
$
10,082

 
$
8,834
v2.4.0.6
Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Financial Information by Geographic Locations
The following enterprise wide information relates to the Company's geographic locations (all amounts in thousands):

Year Ended December 31, 2012
 
 
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe
 
Total
External Revenues
 
$
140,933

 
$
6,395

 
$
8,227

 
$
36,330

 
$
2,827

 
$
2,205

 
$
233

 
$
2,220

 
$
199,370

Long-lived assets
 
$
317,338

 
$
9,738

 
$
12,726

 
$
1,267

 
$
70,173

 
$
240

 
$
11,784

 
$
12,011

 
$
435,277








Year Ended December 31, 2011

 
 
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe
 
Total
External Revenues
 
$
120,780

 
$
836

 
$
10,504

 
$
31,991

 
$
2,943

 
$
1,915

 
$
—

 
$
—

 
$
168,969

Long-lived assets
 
$
259,425

 
$
—

 
$
14,179

 
$
1,286

 
$
63,866

 
$
233

 
$
8,376

 
$
—

 
$
347,365



Year Ended December 31, 2010

 
 
United States
 
Canada
 
Latin America
 
Australia
 
Singapore
 
New Zealand
 
India
 
Europe
 
Total
External Revenues
 
$
93,719

 
$
707

 
$
4,874

 
$
27,253

 
$
4,156

 
$
1,479

 
$
—

 
$
—

 
$
132,188

Long-lived assets
 
$
151,355

 
$
—

 
$
18,478

 
$
1,525

 
$
67,781

 
$
40

 
$
3,339

 
$
—

 
$
242,518
v2.4.0.6
Quarterly Financial Information (unaudited) (Tables)
 12 Months Ended
Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information
The following is the unaudited quarterly financial information for 2012, 2011 and 2010:
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
 
(in thousands, except share data)
Year Ended December 31, 2012
 
 
 
 
 
 
 
 
Total revenues
 
$
43,827

 
$
47,716

 
$
53,804

 
$
54,023

Gross Profit
 
34,798

 
38,559

 
44,304

 
43,576

Operating income
 
18,329

 
17,711

 
20,708

 
20,260

Net income
 
15,685

 
18,067

 
18,072

 
18,745

Net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.43

 
$
0.49

 
$
0.49

 
$
0.50

Diluted
 
$
0.40

 
$
0.47

 
$
0.46

 
$
0.48

Year Ended December 31, 2011
 
 
 
 
 
 
 
 
Total revenues
 
$
40,050

 
$
42,267

 
$
42,602

 
$
44,050

Gross Profit
 
32,743

 
33,353

 
33,895

 
35,389

Operating income
 
15,634

 
18,605

 
17,954

 
16,556

Net income
 
15,164

 
22,348

 
16,536

 
17,330

Net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.40

 
$
0.57

 
$
0.44

 
$
0.48

Diluted
 
$
0.37

 
$
0.53

 
$
0.41

 
$
0.44

Year Ended December 31, 2010
 
 
 
 
 
 
 
 
Total revenues
 
$
31,603

 
$
32,207

 
$
33,281

 
$
35,097

Gross Profit
 
24,540

 
24,780

 
25,863

 
27,406

Operating income
 
12,759

 
13,008

 
13,082

 
13,658

Net income
 
12,384

 
14,010

 
16,681

 
15,944

Net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.36

 
$
0.40

 
$
0.48

 
$
0.45

Diluted
 
$
0.32

 
$
0.36

 
$
0.43

 
$
0.42
v2.4.0.6
Supplemental Schedule of Noncash Financing Activities (Details) (USD $)
 12 Months Ended 0 Months Ended 11 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2010
Whitebox VSC, Ltd and IAM Mini-Fund 14 Limited [Member]
Dec. 31, 2010
Whitebox VSC, Ltd [Member]
Jun. 02, 2012
Planetsoft [Member]
Feb. 07, 2011
ADAM [Member]
Dec. 31, 2011
ADAM [Member]
Other Significant Noncash Transactions [Line Items]                
Business acquisition, cost of acquired entity, purchase price           $ 40,000,000 $ 88,400,000  
Business acquisition, number of common shares issued           296,560 3,650,000 3,650,000
Fair value of equity issued in business acquisition           5,000,000 87,500,000  
Repayments of convertible debt 0 6,761,000 22,521,000 20,000,000        
Repayment of beneficial conversion feature on convertible debt       2,500,000        
Stock issued to repay beneficial conversion feature on convertible debt       283,378 476,662      
Principal amount of convertible debt converted to common stock         4,400,000      
Accrued interest converted to common stock   $ 21,000 $ 328,000   $ 62,000      
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies (Segment Reporting) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2012
ProductService_Groups
Dec. 31, 2011
Dec. 31, 2010
Segment Reporting Information [Line Items]                              
Total revenue, international percentage                         29.00% 28.00% 25.00%
Number of product/service groups                         4    
Operating revenue $ 54,023 $ 53,804 $ 47,716 $ 43,827 $ 44,050 $ 42,602 $ 42,267 $ 40,050 $ 35,097 $ 33,281 $ 32,207 $ 31,603 $ 199,370 $ 168,969 $ 132,188
Exchanges [Member]
                              
Segment Reporting Information [Line Items]                              
Operating revenue                         159,678 130,638 94,212
Broker Systems [Member]
                              
Segment Reporting Information [Line Items]                              
Operating revenue                         18,612 18,006 13,841
BPO [Member]
                              
Segment Reporting Information [Line Items]                              
Operating revenue                         16,140 14,944 15,586
Carrier Systems [Member]
                              
Segment Reporting Information [Line Items]                              
Operating revenue                         $ 4,940 $ 5,381 $ 8,549
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies (Short-term Investments) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Investments, Debt and Equity Securities [Abstract]    
Short-term investments $ 971 $ 1,505
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies (Fair Value Reporting) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
 12 Months Ended 0 Months Ended 1 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Put Option [Member]
Dec. 31, 2012
Foreign Exchange Contracts [Member]
Dec. 31, 2012
Contingent Accrued Earn-out Acquisition Consideration [Member]
Dec. 31, 2011
Contingent Accrued Earn-out Acquisition Consideration [Member]
Dec. 31, 2012
Certificates of Deposit [Member]
Dec. 31, 2012
Certificates of Deposit [Member]
Long-term Debt [Member]
Dec. 31, 2012
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2012
Fair Value, Inputs, Level 1 [Member]
Certificates of Deposit [Member]
Dec. 31, 2012
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2012
Fair Value, Inputs, Level 2 [Member]
Put Option [Member]
Dec. 31, 2012
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Fair Value, Inputs, Level 3 [Member]
Contingent Accrued Earn-out Acquisition Consideration [Member]
Jun. 02, 2012
Planetsoft [Member]
Stockholders
Jun. 30, 2012
Planetsoft [Member]
May 31, 2012
Planetsoft [Member]
Stockholders
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Planetsoft [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 02, 2012
Fair Value, Measurements, Recurring [Member]
Planetsoft [Member]
Fair Value, Inputs, Level 2 [Member]
May 31, 2012
Fair Value, Measurements, Recurring [Member]
Planetsoft [Member]
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]                                        
Available-for-sale securities             $ 1,184 [1] $ 213 [1]   $ 1,184 [1]                    
Total assets measured at fair value 1,184 [1]               1,184 [1]                      
Derivative liabilities     1,186 [1],[2] 0 [1],[3] 17,495 [1],[4]             1,186 [1],[2]   17,495 [1],[4]            
Total liabilities measured at fair value 18,681 [1]                   1,186 [1]   17,495 [1]              
Number of shareholders                             3   3      
Put option, exercise period                               30 days        
Put option, vesting period required prior to exercise                               2 years        
Business acquisition, number of common shares issued                             296,560          
Business acquisition, price per share                             $ 16.86          
Put option, price to repurchase shares, discount                               10.00%        
Put option liability 1,186 0                               1,200 1,400 1,400
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation:                                        
Beginning balance 7,590       17,495 7,590                            
(Gains) or losses included in earnings (699) [5]                                      
Foreign currency translation adjustments (143) [6]                                      
Business acquisitions 16,258                                      
Settlements (5,511)                                      
Ending balance 17,495       17,495 7,590                            
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability, gain (loss) included in earnings, unrealized still held at year end (802)                                      
Fair value inputs, discount rate 1.75%                                      
Long-term Investments $ 213                                      
[1] During the year ended December 31, 2012 there were no transfers between fair value levels 1, 2, or 3.
[2] 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 expires in June 2014, is exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, which if exercised would enable them 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 a 10% discount off of 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 the 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.
[3] The market valuation approach is applied and the valuation inputs include foreign currency exchange spot rates, forward premiums, forward foreign currency exchange rates, terms, and maturity dates. As of September 30, 2012 all the companies derivative instruments in the form of foreign currency hedge instruments had been settled.
[4] 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.
[5] Recorded as an adjustment to reported general and administrative expenses
[6] Recorded as a component of other comprehensive income within stockholders' equity
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies (Accounts Receivables and Allowances) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts Receivable, Net, Current $ 37,298,000 $ 31,133,000  
Deferred revenue included in accounts receivables 7,000,000 8,300,000  
Bad debt expense 442,000 976,000 1,143,000
Billed Revenues [Member]
      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts Receivable, Net, Current 28,500,000 25,900,000  
Unbilled Revenues [Member]
      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts Receivable, Net, Current $ 8,800,000 $ 5,200,000  
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies (Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Mar. 31, 2012
Final Allocation [Member]
BSI [Member]
Apr. 02, 2012
Final Allocation [Member]
Taimma [Member]
Jun. 02, 2012
Final Allocation [Member]
Planetsoft [Member]
Jun. 03, 2012
Final Allocation [Member]
Fintechnix [Member]
Aug. 01, 2012
Final Allocation [Member]
TriSystems [Member]
Feb. 07, 2011
Final Allocation [Member]
ADAM [Member]
Nov. 30, 2011
Final Allocation [Member]
Health Connect Systems [Member]
Dec. 31, 2011
Final Allocation [Member]
2008 - 2010 Acquisitions [Member]
Goodwill [Line Items]                    
Business acquisition, purchase price allocation, goodwill $ 326,748 $ 259,218 $ 3,200 $ 7,600 $ 44,100 $ 3,700 $ 8,800 $ 60,100 $ 20,400 $ (257)
Goodwill [Roll Forward]                    
Goodwill, beginning balance 259,218 180,602 3,200 7,600 44,100 3,700 8,800 60,100 20,400 (257)
Additions, net 67,401 80,259                
Foreign currency translation adjustments 129 (1,643)                
Goodwill, ending balance $ 326,748 $ 259,218 $ 3,200 $ 7,600 $ 44,100 $ 3,700 $ 8,800 $ 60,100 $ 20,400 $ (257)
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies (Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Customer Relationships [Member]
Dec. 31, 2011
Customer Relationships [Member]
Dec. 31, 2012
Customer Relationships [Member]
Minimum [Member]
Dec. 31, 2012
Customer Relationships [Member]
Maximum [Member]
Dec. 31, 2012
Developed Technology [Member]
Dec. 31, 2011
Developed Technology [Member]
Dec. 31, 2012
Developed Technology [Member]
Minimum [Member]
Dec. 31, 2012
Developed Technology [Member]
Maximum [Member]
Dec. 31, 2012
Trademarks [Member]
Dec. 31, 2011
Trademarks [Member]
Dec. 31, 2012
Trademarks [Member]
Minimum [Member]
Dec. 31, 2012
Trademarks [Member]
Maximum [Member]
Dec. 31, 2012
Noncompete Agreements [Member]
Dec. 31, 2011
Noncompete Agreements [Member]
Dec. 31, 2012
Noncompete Agreements [Member]
Maximum [Member]
Dec. 31, 2012
Backlog [Member]
Dec. 31, 2011
Backlog [Member]
Dec. 31, 2012
Database [Member]
Dec. 31, 2011
Database [Member]
Dec. 31, 2012
Database [Member]
Maximum [Member]
Dec. 31, 2012
Customer/Territorial Relationships [Member]
Dec. 31, 2011
Customer/Territorial Relationships [Member]
Finite-Lived and Indefinite-Lived Intangible Assets [Line items]                                                
Finite-Lived Intangible Assets, Gross $ 75,191 $ 54,882 $ 57,638 $ 40,289     $ 14,025 $ 11,640     $ 2,638 $ 2,188     $ 538 $ 418   $ 140 $ 140 $ 212 $ 207      
Finite-lived intangible assets, accumulated amortization (22,600) (16,496)                                            
Finite-lived intangible assets, net 52,591 38,386                                            
Indefinite-lived intangible assets                                             $ 30,887 $ 30,453
Finite-lived intangible asset, useful life         7 years 20 years     3 years 12 years     3 years 15 years     5 years         10 years    
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies (Advertising and Sales Commission) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Accounting Policies [Abstract]      
Advertising Expense $ 1,400 $ 1,000 $ 973
Deferred Sales Commission 442 402  
Amortization of Deferred Sales Commissions $ 1,100 $ 465  
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies (Fixed Assets) (Details) (Details)
 12 Months Ended
Dec. 31, 2012
Computer Equipment [Member]
  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 5 years
Furniture, Fixtures and Other [Member]
  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 7 years
Buildings [Member]
  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 30 years
v2.4.0.6
Description of Business and Summary of Significant Accounting Policies- Foreign Currency Translation (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended 6 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
India and Singapore [Member]
Change in Accounting Policy, Effect of Change on Net Income       $ 49
Foreign exchange gain $ 1,931 $ 4,302 $ 1,211 $ (151)
v2.4.0.6
Earnings per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
 3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Earnings Per Share, Basic and Diluted [Abstract]                              
Basic earnings per common share (in dollars per share) $ 0.50 $ 0.49 $ 0.49 $ 0.43 $ 0.48 $ 0.44 $ 0.57 $ 0.40 $ 0.45 $ 0.48 $ 0.40 $ 0.36 $ 1.91 $ 1.89 $ 1.69
Diluted earnings per common share (in dollars per share) $ 0.48 $ 0.46 $ 0.47 $ 0.40 $ 0.44 $ 0.41 $ 0.53 $ 0.37 $ 0.42 $ 0.43 $ 0.36 $ 0.32 $ 1.80 $ 1.75 $ 1.51
Basic weighted average shares outstanding (in shares)                         36,948,000 37,742,000 34,845,000
Diluted weighted average shares outstanding (in shares)                         39,100,000 40,889,000 39,018,000
Earnings Per Share, Diluted [Abstract]                              
Net income $ 18,745 $ 18,072 $ 18,067 $ 15,685 $ 17,330 $ 16,536 $ 22,348 $ 15,164 $ 15,944 $ 16,681 $ 14,010 $ 12,384 $ 70,569 $ 71,378 $ 59,019
Convertible debt interest (excludes imputed interest)                         0 0 10
Net income for diluted earnings per share purposes                         $ 70,569 $ 71,378 $ 59,029
Diluted shares outstanding (in shares)                         39,100,000 40,889,000 39,018,000
Diluted earnings per common share (in dollars per share) $ 0.48 $ 0.46 $ 0.47 $ 0.40 $ 0.44 $ 0.41 $ 0.53 $ 0.37 $ 0.42 $ 0.43 $ 0.36 $ 0.32 $ 1.80 $ 1.75 $ 1.51
Antidilutive securities excluded from computation of earnings per share (in shares)                         90,000 90,000 0
Weighted Average Number of Shares Outstanding, Diluted [Abstract]                              
Basic weighted average shares outstanding (in shares)                         36,948,000 37,742,000 34,845,000
Incremental shares for common stock equivalents (in shares)                         2,152,000 3,147,000 4,173,000
Diluted shares outstanding (in shares)                         39,100,000 40,889,000 39,018,000
v2.4.0.6
Business Acquisitions (Narrative) (Details) (USD $)
 12 Months Ended 0 Months Ended 1 Months Ended 7 Months Ended 0 Months Ended 11 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
BSI, TAIMMA, FINTECHNIX, PLANETSOFT, TRISYSTEMS [Member]
Companies
Dec. 31, 2012
BSI, TAIMMA, FINTECHNIX, TRISYSTEMS [Member]
Customer Relationships [Member]
Jun. 02, 2012
BSI, TAIMMA, FINTECHNIX, TRISYSTEMS [Member]
Technology [Member]
Jun. 02, 2012
BSI, TAIMMA, FINTECHNIX, TRISYSTEMS [Member]
Trade Names [Member]
Jun. 02, 2012
BSI, TAIMMA, FINTECHNIX, TRISYSTEMS [Member]
Noncompete Agreements [Member]
Dec. 31, 2012
BSI, TAIMMA, FINTECHNIX, TRISYSTEMS [Member]
Final Allocation [Member]
Jun. 02, 2012
Planetsoft [Member]
Jun. 30, 2012
Planetsoft [Member]
Dec. 31, 2012
Planetsoft [Member]
Jun. 02, 2012
Planetsoft [Member]
Customer Relationships [Member]
Jun. 02, 2012
Planetsoft [Member]
Technology [Member]
Jun. 02, 2012
Planetsoft [Member]
Final Allocation [Member]
Nov. 15, 2011
Health Connect Systems [Member]
Nov. 15, 2011
Health Connect Systems [Member]
Customer Relationships [Member]
Nov. 15, 2011
Health Connect Systems [Member]
Technology [Member]
Nov. 30, 2011
Health Connect Systems [Member]
Final Allocation [Member]
Nov. 15, 2011
Health Connect Systems [Member]
Final Allocation [Member]
Feb. 07, 2011
ADAM [Member]
Dec. 31, 2011
ADAM [Member]
Dec. 31, 2012
ADAM [Member]
Feb. 07, 2011
ADAM [Member]
Unexercised Stock Options [Member]
Feb. 07, 2011
ADAM [Member]
Customer Relationships [Member]
Feb. 07, 2011
ADAM [Member]
Technology [Member]
Feb. 07, 2011
ADAM [Member]
Trademarks [Member]
Feb. 07, 2011
ADAM [Member]
Final Allocation [Member]
Dec. 31, 2012
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Planetsoft [Member]
Jun. 02, 2012
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Planetsoft [Member]
May 31, 2012
Fair Value, Inputs, Level 2 [Member]
Fair Value, Measurements, Recurring [Member]
Planetsoft [Member]
Dec. 31, 2012
Contingent Accrued Earn-out Acquisition Consideration [Member]
Dec. 31, 2011
Contingent Accrued Earn-out Acquisition Consideration [Member]
Business Acquisition [Line Items]                                                                  
Derivative Financial Instruments, Liabilities, Fair Value Disclosure $ 17,495,000 $ 7,590,000                                                           $ 17,495,000 $ 7,590,000
DerivativeFinancialInstrumentLiabilitesFairValueDisclosureNonCurrent                                                               14,230,000  
DerivativeFinancialInstrumentLiabilitesFairValueDisclosureCurrent                                                               3,265,000  
Business acquisition, termination fee received for failed acquisition 971,000                                                                
Number of Businesses Acquired       5                                                          
Business acquisition, cost of acquired entity, cash paid                   35,000,000           18,000,000               944,000                  
Business acquisition, number of common shares issued                   296,560                     3,650,000 3,650,000                      
Business acquisition, price per share                   $ 16.86                                              
Share subscribed for business acquisition, Value 0 87,476,000 828,000             5,000,000.0                                              
Put option, exercise period                     30 days                                            
Put option, vesting period required prior to exercise                     2 years                                            
Put option, price to repurchase shares, discount                     10.00%                                            
Put option liability 1,186,000 0                                                     1,200,000 1,400,000 1,400,000    
Business acquisition, purchase price allocation, goodwill 326,748,000 259,218,000 180,602,000 67,376,000                     44,100,000       20,400,000                 60,100,000          
Business acquisition, purchase price allocation, intangible assets (excluding goodwill)         7,600,000 1,800,000 436,000 118,000         9,800,000 540,000     1,200,000 256,000             15,400,000 2,100,000 2,000,000            
Contingent liability for accrued earn-out acquisition consideration 3,265,000 7,590,000               10,200,000           4,000,000                                  
Fair value of equity issued in business acquisition                   5,000,000                     87,500,000                        
Business acquisition, acquiree revenue since acquisition date                       11,400,000                   23,100,000 23,500,000                    
Business Acquisition, Purchase Price Allocation, Goodwill Amount                 $ 23,300,000           $ 44,100,000         $ 20,400,000               $ 60,100,000          
v2.4.0.6
Business Acquisitions (Net Assets Acquired) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Business Acquisition [Line Items]      
Goodwill $ 326,748 $ 259,218 $ 180,602
BSI, TAIMMA, FINTECHNIX, PLANETSOFT, TRISYSTEMS [Member]
      
Business Acquisition [Line Items]      
Current assets 6,262    
Property and equipment 1,328    
Intangible assets 20,246    
Deferred tax asset, (net) 0    
Other assets 202    
Goodwill 67,376    
Total assets acquired 95,414    
Less: liabilities assumed (34,302)    
Net assets acquired 61,112    
ADAM AND HCS [Member]
      
Business Acquisition [Line Items]      
Current assets   9,710  
Property and equipment   1,626  
Intangible assets   20,970  
Deferred tax asset, (net)   9,294  
Other assets   0  
Goodwill   80,516  
Total assets acquired   122,116  
Less: liabilities assumed   (15,696)  
Net assets acquired   $ 106,420  
v2.4.0.6
Business Acquisitions (Intangible Assets Acquired) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
BSI, TAIMMA, FINTECHNIX, PLANETSOFT, TRISYSTEMS [Member]
Dec. 31, 2012
BSI, TAIMMA, FINTECHNIX, PLANETSOFT, TRISYSTEMS [Member]
Customer Relationships [Member]
Dec. 31, 2012
BSI, TAIMMA, FINTECHNIX, PLANETSOFT, TRISYSTEMS [Member]
Developed Technology [Member]
Dec. 31, 2012
BSI, TAIMMA, FINTECHNIX, PLANETSOFT, TRISYSTEMS [Member]
Noncompete Agreements [Member]
Dec. 31, 2012
BSI, TAIMMA, FINTECHNIX, PLANETSOFT, TRISYSTEMS [Member]
Trademarks [Member]
Dec. 31, 2011
ADAM AND HCS [Member]
Dec. 31, 2011
ADAM AND HCS [Member]
Customer Relationships [Member]
Dec. 31, 2011
ADAM AND HCS [Member]
Developed Technology [Member]
Dec. 31, 2011
ADAM AND HCS [Member]
Noncompete Agreements [Member]
Dec. 31, 2011
ADAM AND HCS [Member]
Trademarks [Member]
Acquired Finite-Lived Intangible Assets [Line Items]                    
Total acquired intangible assets, Fair Value $ 20,246 $ 17,365 $ 2,327 $ 118 $ 436 $ 20,970 $ 16,594 $ 2,406 $ 0 $ 1,970
Acquired intangible assets, Weighted Average Useful Life (in years) 10 years 1 month 10 years 11 months 4 years 6 months 5 years 10 years 11 years 2 months 13 days 11 years 8 months 15 days 5 years 3 months 19 days 0 years 13 years 4 months 26 days
v2.4.0.6
Business Acquisitions (Future Amortization Expense) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Acquired Intangible Assets, Amortization Expense, Fiscal Year Maturity [Abstract]      
For the year ended December 31, 2013 $ 7,067,000    
For the year ended December 31, 2014 6,688,000    
For the year ended December 31, 2015 6,024,000    
For the year ended December 31, 2016 5,705,000    
For the year ended December 31, 2017 5,226,000    
Thereafter 21,881,000    
Estimated future amortization expense 52,591,000 38,386,000  
Amortization expense, acquired intangible assets $ 6,100,000 $ 4,800,000 $ 3,700,000
v2.4.0.6
Pro Forma Financial Information (Details) (USD $)
 3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Business Acquisition, Pro Forma Information [Abstract]                              
Revenue, As Reported $ 54,023,000 $ 53,804,000 $ 47,716,000 $ 43,827,000 $ 44,050,000 $ 42,602,000 $ 42,267,000 $ 40,050,000 $ 35,097,000 $ 33,281,000 $ 32,207,000 $ 31,603,000 $ 199,370,000 $ 168,969,000 $ 132,188,000
Net Income, As Reported 18,745,000 18,072,000 18,067,000 15,685,000 17,330,000 16,536,000 22,348,000 15,164,000 15,944,000 16,681,000 14,010,000 12,384,000 70,569,000 71,378,000 59,019,000
Basic EPS, As Reported (in dollars per share) $ 0.50 $ 0.49 $ 0.49 $ 0.43 $ 0.48 $ 0.44 $ 0.57 $ 0.40 $ 0.45 $ 0.48 $ 0.40 $ 0.36 $ 1.91 $ 1.89 $ 1.69
Diluted EPS, As Reported (in dollars per share) $ 0.48 $ 0.46 $ 0.47 $ 0.40 $ 0.44 $ 0.41 $ 0.53 $ 0.37 $ 0.42 $ 0.43 $ 0.36 $ 0.32 $ 1.80 $ 1.75 $ 1.51
Parent, ADAM, Planetsoft, BSI, Taimma, Fintechnix, TriSystems , Combined [Member] [Domain]
                              
Business Acquisition, Pro Forma Information [Abstract]                              
Revenue, Pro forma                         212,360,000 209,748,000  
Net Income, Pro Forma                         70,086,000 72,391,000  
Basic EPS, Pro Forma (in dollars per share)                         $ 1.89 $ 1.88  
Diluted EPS, Pro Forma (in dollars per share)                         $ 1.79 $ 1.74  
Increase in unaudited pro forma revenue                         2,600,000    
Increase in unaudited pro forma revenue, percentage                         1.20%    
Increase in reported revenue                         $ 30,400,000    
Increase in reported revenue, percentage                         18.00%    
v2.4.0.6
Commercial Bank Financing Facility (Details) (USD $)
 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Apr. 26, 2012
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Dec. 31, 2012
Secured Syndicated Credit Facility [Member]
Revolving Credit Facility [Member]
Citi Bank [Member]
Apr. 26, 2012
Secured Syndicated Credit Facility [Member]
Revolving Credit Facility [Member]
Citi Bank [Member]
Apr. 26, 2012
Credit Agreement, Seventh Amendment [Member]
BOA [Member]
Dec. 31, 2012
Credit Agreement, Seventh Amendment [Member]
Revolving Credit Facility [Member]
BOA [Member]
Dec. 31, 2012
Secured Term Loan [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Apr. 26, 2012
Secured Term Loan [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Dec. 31, 2012
Secured Term Loan [Member]
Credit Agreement, Seventh Amendment [Member]
BOA [Member]
Dec. 31, 2011
Secured Term Loan [Member]
Credit Agreement, Seventh Amendment [Member]
BOA [Member]
Dec. 31, 2012
Minimum [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Dec. 31, 2012
Mid-range [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Dec. 31, 2012
Maximum [Member]
Secured Syndicated Credit Facility [Member]
Citi Bank [Member]
Line of Credit Facility [Line Items]                                
Debt instrument, face amount         $ 100,000,000     $ 55,000,000     $ 45,000,000          
Revolving credit facility, term           4 years                    
Credit agreement, maximum borrowing capacity             45,000,000                  
Credit agreement, amortization period                   4 years            
Line of Credit Facility, Expansion             10,000,000                  
Basis spread on variable interest rate                           1.50% 1.71% 2.00%
Deferred Costs, Credit Card Origination Costs, Amount       620,000 744,000                      
Repayments of term loan 600,000 0 0         45,140,000   4,100,000   1,700,000        
Credit agreement, amount outstanding           37,800,000     31,800,000              
Line of credit, interest rate at period end           1.71%     1.75%              
Credit agreement, average amount outstanding during period           32,400,000                    
Credit agreement, maximum amount outstanding during period           37,800,000                    
Debt, Weighted Average Interest Rate           1.74%                    
Long-term Debt 81,273,000                 40,900,000     15,000,000      
Credit agreement, current amount outstanding                   $ 11,300,000            
Current maturities, period                   12 months            
Effective interest rate                   1.71%            
v2.4.0.6
Convertible Debt (Details) (USD $)
 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Aug. 25, 2009
Apr. 18, 2011
Rennes Foundation [Member]
Dec. 31, 2011
Rennes Foundation [Member]
Aug. 25, 2009
Rennes Foundation [Member]
Apr. 18, 2011
Whitebox VSC, Ltd and IAM Mini-Fund 14 Limited [Member]
Aug. 31, 2009
Whitebox VSC, Ltd and IAM Mini-Fund 14 Limited [Member]
Debt_Instrument
Aug. 25, 2009
Whitebox VSC, Ltd and IAM Mini-Fund 14 Limited [Member]
Aug. 25, 2009
Whitebox VSC, Ltd [Member]
Dec. 31, 2010
IAM Mini-Fund 14 Limited [Member]
Aug. 25, 2009
IAM Mini-Fund 14 Limited [Member]
Schedule of Convertible Debt Instruments [Line Items]                          
Convertible debt, face amount             $ 5,000,000.0     $ 20,000,000 $ 19,000,000   $ 1,000,000
Convertible debt, conversion price             $ 16.66       $ 16.00   $ 16
Convertible debt, stated interest rate             0.00%       0.00%   0.00%
Convertible debt, imputed interest rate       1.75%     1.75%           1.75%
Interest expense recognized on convertible debt   21,000 328,000     21,000           328,000  
Repayments of convertible debt 0 6,761,000 22,521,000   5,000,000.00     20,000,000          
Convertible debt, payment for conversion spread         1,800,000     2,500,000.0          
Number of convertible debt instruments                 2        
Stock issued to repay beneficial conversion feature on convertible debt               283,738          
Convertible debt, carrying amount       24,200,000                  
Convertible debt, unamortized discount       $ 852,000                  
v2.4.0.6
Commitments and Contingencies (Minimum Rentals) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Long-term Debt, Fiscal Year Maturity [Abstract]  
Long-term debt maturities, 2013 $ 11,995
Long-term debt maturities, 2014 11,312
Long-term debt maturities, 2015 11,651
Long-term debt maturities, 2016 46,315
Long-term debt maturities, 2017 0
Long-term debt maturities, Thereafter 0
Total Debt 81,273
Less: current portion (11,995)
Long-term obligations, Debt 69,278
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]  
Capital Leases, future minimum payments due, 2013 303
Capital Leases, future minimum payments due, 2014 195
Capital Leases, future minimum payments due, 2015 87
Capital Leases, future minimum payments due, 2016 0
Capital Leases, future minimum payments due, 2017 0
Capital Leases, future minimum payments due, Thereafter 0
Total capital lease obligations 585
Less: amount representing interest (77)
Present value of obligations under capital leases 508
Less: current portion (277)
Long-term obligations, Capital Leases 231
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]  
Operating Leases, future minimum payments due, 2013 4,854
Operating Leases, future minimum payments due, 2014 3,898
Operating Leases, future minimum payments due, 2015 1,905
Operating Leases, future minimum payments due, 2016 1,682
Operating Leases, future minimum payments due, 2017 1,656
Operating Leases, future minimum payments due, Thereafter 1,387
Total operating lease obligations 15,382
Less: sublease income (60)
Net lease payments $ 15,322
v2.4.0.6
Commitments and Contingencies (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Complaint
Dec. 31, 2011
Dec. 31, 2010
Commitments and Contingencies [Line Items]      
Number of derivative complaints 3    
Rent expense, operating leases $ 5,900,000 $ 4,600,000 $ 4,000,000
Operating Leases, Rent Expense, Sublease Rentals 5,000 0 145,000
Self-insured health insurance, liability 243,000 384,000  
Maximum [Member]
      
Commitments and Contingencies [Line Items]      
Self-insured health insurance limit, per person 100,000    
Self-insured health Insurance, aggregate liability based on participants and claims (percentage) 125.00%    
Self-insured health insurance, estimated cumulative liability for annual contract $ 3,000,000.0    
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    
v2.4.0.6
Share-based Compensation (Valuation Assumptions) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Share-based Compensation, Fair Value Assumptions [Abstract]      
Weighted average fair values of stock options granted (in dollars per share) $ 16.94 $ 20.58 $ 21.70
Expected volatility 47.90% 59.00% 54.90%
Expected dividends 1.18% 0.74% 0.00%
Weighted average risk-free interest rate 0.33% 0.33% 0.72%
Expected life of stock options (in years) 3 years 6 months 3 years 6 months 3 years 6 months
Stock Options [Member]
      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock compensation expense $ 539 $ 537 $ 444
v2.4.0.6
Share-based Compensation (Stock Option Activity) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Stock Options, Outstanding [Roll Forward]        
Stock options outstanding, ending balance 1,998,633      
Stock options, Exercisable 1,863,633      
Stock Options, Outstanding, Weighted Average Exercise Price [Roll Forward]        
Stock options, Weighted Average Exercise Price, beginning balance (in dollars per share) $ 2.51 $ 2.22 $ 1.69  
Stock options, Granted, Weighted Average Exercise Price (in dollars per share) $ 16.94 $ 20.58 $ 21.70  
Stock options, Exercised, Weighted Average Exercise Price (in dollars per share) $ 0.75 $ 0.73 $ 4.99  
Stock options, Canceled, Weighted Average Exercise Price (in dollars per share) $ 0 $ 0.72 $ 0  
Stock options, Weighted Average Exercise Price, ending balance (in dollars per share) $ 4.03 $ 2.51 $ 2.22 $ 1.69
Stock options, Exercisable, Weighted Average Exercise Price (in dollars per share) $ 2.96      
Stock Options, Additional Disclosures [Abstract]        
Stock options outstanding, Weighted Average Remaining Contractual Term (in years) 1 year 2 months 1 day 1 year 6 months 21 days 2 years 6 months 3 days 2 years 10 months 27 days
Stock options, Exercisable, Weighted Average Remaining Contractual Term (in years) 1 year 0 months 10 days      
Stock options outstanding, Aggregate Intrinsic Value $ 24,171 $ 64,959 $ 71,638 $ 66,344
Stock options, Exercisable, Aggregate Intrinsic Value 24,533      
Proceeds from stock options exercised 1,020 51 1,236  
Stock Options [Member]
        
Stock Options, Additional Disclosures [Abstract]        
Stock options exercised in period, intrinsic value $ 24,800 $ 941 $ 5,700  
Within Plans [Member]
        
Stock Options, Outstanding [Roll Forward]        
Stock options outstanding, beginning balance 3,315,175 3,340,476 4,542,636  
Stock options, Granted 45,000 45,000 45,000  
Stock options, Exercised (1,361,542) (69,509) (1,247,160)  
Stock options, Canceled 0 (792) 0  
Stock options outstanding, ending balance 1,998,633 3,315,175 3,340,476  
Stock options, Exercisable 1,863,633      
Outside Plan [Member]
        
Stock Options, Outstanding [Roll Forward]        
Stock options outstanding, beginning balance     5,625  
Stock options, Exercised     (5,625)  
Stock options outstanding, ending balance 0 0 0  
Stock options, Exercisable 0      
v2.4.0.6
Share-based Compensation (Nonvested Options) (Details) (Nonvested Option Shares [Member], USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Nonvested Option Shares [Member]
      
Nonvested Awards, Number of Shares [Roll Forward]      
Nonvested awards, Shares, beginning balance 180,005 247,690 303,900
Nonvested options, Granted 45,000 45,000 45,000
Nonvested options, Vested (90,005) (112,685) (101,210)
Nonvested options, Canceled 0 0 0
Nonvested awards, Shares, ending balance 135,000 180,005 247,690
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Exercise Price [Roll Forward]      
Nonvested options, Weighted Average Exercise Price, beginning balance (in dollars per share) $ 17.17 $ 14.07 $ 11.79
Nonvested options, Granted, Weighted Average Exercise Price (in dollars per share) $ 16.94 $ 20.58 $ 21.70
Nonvested options, Vested, Weighted Average Exercise Price (in dollars per share) $ 14.60 $ 11.71 $ 10.61
Nonvested options, Canceled, Weighted Average Exercise Price (in dollars per share) $ 0.00 $ 0.00 $ 0.00
Nonvested options, Weighted Average Exercise Price, ending balance (in dollars per share) $ 18.80 $ 17.17 $ 14.07
v2.4.0.6
Share-based Compensation (Option Price Ranges) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Stock options outstanding 1,998,633      
Stock options outstanding, Weighted Average Remaining Contractual Term (in years) 1 year 2 months 1 day 1 year 6 months 21 days 2 years 6 months 3 days 2 years 10 months 27 days
Stock options outstanding, Weighted Average Exercise Price (in dollars per share) $ 4.03 $ 2.51 $ 2.22 $ 1.69
Stock options exercisable 1,863,633      
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) $ 2.96      
$0.59-$1.75 Exercise Price Range [Member]
        
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Shares authorized under stock option plans, exercise price range, lower range limit $ 0.59      
Shares authorized under stock option plans, exercise price range, upper range limit $ 1.75      
Stock options outstanding, by exercise price range 1,470,375      
Stock options outstanding, Weighted Average Remaining Contractual Term (in years) 10 months 24 days      
Stock options outstanding, Weighted Average Exercise Price, by exercise price range (in dollars per share) $ 0.97      
Stock options exercisable, by exercise price range 1,470,375      
Stock options exercisable, Weighted Average Exercise Price, by exercise price range (in dollars per share) $ 0.97      
$2.17-$2.36 Exercise Price Range [Member]
        
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Shares authorized under stock option plans, exercise price range, lower range limit $ 2.17      
Shares authorized under stock option plans, exercise price range, upper range limit $ 2.36      
Stock options outstanding, by exercise price range 54,000      
Stock options outstanding, Weighted Average Remaining Contractual Term (in years) 3 years 4 months 20 days      
Stock options outstanding, Weighted Average Exercise Price, by exercise price range (in dollars per share) $ 2.27      
Stock options exercisable, by exercise price range 54,000      
Stock options exercisable, Weighted Average Exercise Price, by exercise price range (in dollars per share) $ 2.27      
$6.98-$7.27 Exercise Price Range [Member]
        
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Shares authorized under stock option plans, exercise price range, lower range limit $ 6.98      
Shares authorized under stock option plans, exercise price range, upper range limit $ 7.27      
Stock options outstanding, by exercise price range 204,258      
Stock options outstanding, Weighted Average Remaining Contractual Term (in years) 7 months 17 days      
Stock options outstanding, Weighted Average Exercise Price, by exercise price range (in dollars per share) $ 7.16      
Stock options exercisable, by exercise price range 204,258      
Stock options exercisable, Weighted Average Exercise Price, by exercise price range (in dollars per share) $ 7.16      
$16.94-$21.70 Exercise Price Range [Member]
        
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Shares authorized under stock option plans, exercise price range, lower range limit $ 16.94      
Shares authorized under stock option plans, exercise price range, upper range limit $ 21.70      
Stock options outstanding, by exercise price range 270,000      
Stock options outstanding, Weighted Average Remaining Contractual Term (in years) 2 years 7 months 6 days      
Stock options outstanding, Weighted Average Exercise Price, by exercise price range (in dollars per share) $ 18.66      
Stock options exercisable, by exercise price range 135,000      
Stock options exercisable, Weighted Average Exercise Price, by exercise price range (in dollars per share) $ 18.52      
v2.4.0.6
Share-based Compensation (Nonvested Restricted Stock) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Installment
Dec. 31, 2011
Dec. 31, 2010
Nonvested Awards, Weighted Average Grant Date Fair Value [Roll Forward]      
Common shares reserved for stock option and restricted stock grants 5,800,000    
Restricted Stock [Member]
      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting rate, initial year (percent) 33.33%    
Quarterly award vesting installments after initial year 8    
Nonvested Awards, Number of Shares [Roll Forward]      
Nonvested awards, Shares, beginning balance 145,081 210,285 405,312
Nonvested awards, Shares Granted 73,061 103,469 50,371
Nonvested awards, Shares Vested (90,379) (150,267) (241,215)
Nonvested awards, Shares Forfeited (6,607) (18,406) (4,183)
Nonvested awards, Shares, ending balance 121,156 145,081 210,285
Nonvested Awards, Weighted Average Grant Date Fair Value [Roll Forward]      
Nonvested awards outstanding, Weighted Average Grant Date Fair Value, beginning balance (in dollars per share) $ 20.13 $ 9.98 $ 7.79
Nonvested awards, Granted, Weighted Average Grant Date Fair Value (in dollars per share) $ 23.26 $ 23.33 $ 16.05
Nonvested awards, Vested, Weighted Average Grant Date Fair Value (in dollars per share) $ 18.89 $ 9.51 $ 7.59
Nonvested awards, Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) $ 24.10 $ 8.79 $ 8.22
Nonvested awards outstanding, Weighted Average Grant Date Fair Value, ending balance (in dollars per share) $ 22.74 $ 20.13 $ 9.98
Unrecognized compensation cost, share-based compensation arrangements $ 2,200,000    
Weighted average period to recognize nonvested awards (in years) 1 year 9 months 18 days    
Fair value of shares vested during period 1,700,000 1,400,000 1,800,000
Stock compensation expense recognized on restricted grants $ 1,500,000 $ 1,700,000 $ 1,400,000
v2.4.0.6
Income Taxes (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Operating Loss Carryforwards [Line Items]      
Operating loss carryforwards, domestic $ 53,400,000    
Operating Loss Carryforwards, Domestic, Utilized 6,300,000    
Foreign 4,497,000 2,990,000 1,409,000
Deferred Tax Liabilities, Undistributed Foreign Earnings 71,800,000    
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense 629,000    
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    
Income Tax Holiday, Aggregate Dollar Amount 12,300,000    
Income Tax Holiday, Income Tax Benefits Per Share $ 0.315    
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent 11,500,000 6,700,000  
India [Member] | Minimum Alternative Tax (“MAT”) [Member]
      
Operating Loss Carryforwards [Line Items]      
Foreign statutory income tax rate 19.94%    
Foreign income tax holiday, term 7 years    
Income Taxes Paid 7,000,000    
Singapore [Member]
      
Operating Loss Carryforwards [Line Items]      
Foreign statutory income tax rate 17.00%    
Foreign effective income tax rate 10.00%    
Income Tax Holiday, Aggregate Dollar Amount 1,800,000    
Income Tax Holiday, Income Tax Benefits Per Share $ 0.045    
ADAM [Member]
      
Operating Loss Carryforwards [Line Items]      
Operating loss carryforwards, domestic $ 35,000,000    
v2.4.0.6
Income Taxes (Pre-Tax Income) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Income Tax Disclosure [Abstract]      
Domestic $ 6,604 $ 12,043 $ 13,694
Foreign 71,425 61,452 45,960
Total $ 78,029 $ 73,495 $ 59,654
v2.4.0.6
Income Taxes (Components of Income Tax Expense) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Current Income Tax Expense (Benefit) [Abstract]      
Federal $ 342 $ 1,237 $ 527
State 320 822 362
Foreign 4,497 2,990 1,409
Current income tax provision 5,159 5,049 2,298
Deferred Income Tax Expense (Benefit) [Abstract]      
Federal 3,827 3,699 1,215
State 31 44 (148)
Foreign (1,557) (1,755) (430)
Deferred income tax provision 2,301 1,988 637
Provision for income taxes from ongoing operations at effective tax rate 7,460 7,037 2,935
Provision for income taxes from discrete items 0 (4,920) (2,300)
Total provision for income taxes 7,460 2,117 635
Release of valuation allowance [Member]
      
Deferred Income Tax Expense (Benefit) [Abstract]      
Provision for income taxes from discrete items 0 (6,625) (2,300)
Windfall expense related to stock compensation [Member]
      
Deferred Income Tax Expense (Benefit) [Abstract]      
Provision for income taxes from discrete items 0 1,938 0
Enhanced R&D deduction - foreign operations [Member]
      
Deferred Income Tax Expense (Benefit) [Abstract]      
Provision for income taxes from discrete items $ 0 $ (233) $ 0
v2.4.0.6
Income Taxes (Effective Income Tax Rates Reconciliation) (Details)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Schedule Of Effective Income Tax Rates Reconciliation [Line Items]      
Statutory tax rate 35.00% 35.00% 35.00%
State income taxes, net of federal benefit 0.40% 0.80% 0.60%
Uncertain tax matters 3.50% 0.20% 0.00%
Other permanent differences (0.50%) (1.00%) (5.00%)
Other (2.00%) (1.80%) 0.30%
Effective tax rate from ongoing operations 9.60% 9.50% 4.80%
Effective tax rate after discrete items 9.60% 2.90% 1.10%
Release of valuation allowance [Member]
      
Schedule Of Effective Income Tax Rates Reconciliation [Line Items]      
Discrete Items 0.00% (9.00%) (3.70%)
Windfall expense related to stock compensation [Member]
      
Schedule Of Effective Income Tax Rates Reconciliation [Line Items]      
Discrete Items 0.00% 2.60% 0.00%
Enhanced R&D deduction - foreign operations [Member]
      
Schedule Of Effective Income Tax Rates Reconciliation [Line Items]      
Discrete Items 0.00% (0.20%) 0.00%
Singapore [Member]
      
Schedule Of Effective Income Tax Rates Reconciliation [Line Items]      
Tax impact of foreign subsidiaries (primarily in Singapore) (8.10%) (5.60%) (2.50%)
India [Member]
      
Schedule Of Effective Income Tax Rates Reconciliation [Line Items]      
Tax holiday - India (Permanent Difference) (15.60%) (15.10%) (19.90%)
Sweden [Member]
      
Schedule Of Effective Income Tax Rates Reconciliation [Line Items]      
Passive income exemption - Sweden (Permanent Difference) (3.10%) (3.00%) (3.70%)
v2.4.0.6
Income Taxes (Deferred Tax Liabilities and Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Income Tax Disclosure [Abstract]    
Current deferred income tax assets $ 2,074 $ 3,277
Long-term deferred income tax assets 35,140 28,865
Total deferred income tax assets 37,214 32,142
Current deferred income tax liabilities (239) (297)
Long-term deferred income tax liabilities (23,895) (19,452)
Net deferred income tax asset $ 13,080 $ 12,393
v2.4.0.6
Income Taxes (Deferred Income Taxes) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Operating Loss Carryforwards [Line Items]    
Total deferred income tax assets $ 37,214 $ 32,142
Deferred tax liabilities, gross 24,134 19,749
Valuation allowance 0 0
Deferred tax assets, net of valuation allowance 37,214 32,142
Deferred tax liabilities, net 24,134 19,749
Depreciation and amortization [Member]
    
Operating Loss Carryforwards [Line Items]    
Total deferred income tax assets 102 331
Deferred tax liabilities, gross 0 277
Share-based compensation [Member]
    
Operating Loss Carryforwards [Line Items]    
Total deferred income tax assets 721 549
Deferred tax liabilities, gross 0 0
Accruals and prepaids [Member]
    
Operating Loss Carryforwards [Line Items]    
Total deferred income tax assets 1,627 2,009
Deferred tax liabilities, gross 239 297
Bad Debts [Member]
    
Operating Loss Carryforwards [Line Items]    
Total deferred income tax assets 446 720
Deferred tax liabilities, gross 0 0
Acquired intangible assets [Member]
    
Operating Loss Carryforwards [Line Items]    
Total deferred income tax assets 0 933
Deferred tax liabilities, gross 23,895 19,175
Net operating loss carryforwards [Member]
    
Operating Loss Carryforwards [Line Items]    
Total deferred income tax assets 20,573 22,237
Deferred tax liabilities, gross 0 0
Tax credit carryforwards [Member]
    
Operating Loss Carryforwards [Line Items]    
Total deferred income tax assets 13,745 5,363
Deferred tax liabilities, gross $ 0 $ 0
v2.4.0.6
Income Taxes (Pre-Tax Income and Applicable Tax Rates) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Pre-Tax Income and Applicable Tax Rates [Line Items]      
Domestic $ 6,604 $ 12,043 $ 13,694
Pre-tax income, Foreign 71,425 61,452 45,960
Total 78,029 73,495 59,654
Statutory tax rate 35.00% 35.00% 35.00%
United States [Member]
      
Pre-Tax Income and Applicable Tax Rates [Line Items]      
Domestic 6,604    
Statutory tax rate 35.00%    
Canada
      
Pre-Tax Income and Applicable Tax Rates [Line Items]      
Pre-tax income, Foreign 1,289    
Statutory tax rate 30.50%    
Latin America [Member]
      
Pre-Tax Income and Applicable Tax Rates [Line Items]      
Pre-tax income, Foreign 420    
Statutory tax rate 34.00%    
Australia
      
Pre-Tax Income and Applicable Tax Rates [Line Items]      
Pre-tax income, Foreign 1,465    
Statutory tax rate 30.00%    
Singapore [Member]
      
Pre-Tax Income and Applicable Tax Rates [Line Items]      
Pre-tax income, Foreign 25,188    
Statutory tax rate 10.00%    
New Zealand
      
Pre-Tax Income and Applicable Tax Rates [Line Items]      
Pre-tax income, Foreign 292    
Statutory tax rate 28.00%    
India [Member]
      
Pre-Tax Income and Applicable Tax Rates [Line Items]      
Pre-tax income, Foreign 35,708    
Statutory tax rate 0.00%    
Europe (United Kingdom)
      
Pre-Tax Income and Applicable Tax Rates [Line Items]      
Pre-tax income, Foreign 67    
Statutory tax rate 24.00%    
Sweden
      
Pre-Tax Income and Applicable Tax Rates [Line Items]      
Pre-tax income, Foreign $ 6,996    
Statutory tax rate 0.00%    
v2.4.0.6
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]  
Balance at January 1, 2012 $ 3,180
Additions for tax positions related to current year 2,482
Additions for tax positions of prior years 263
Reductions for tax position of prior years 0
Balance at September 30, 2012 $ 5,925
v2.4.0.6
Stock Repurchases (Details) (USD $)
 12 Months Ended 60 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2010
Stock Repurchases [Abstract]        
Stock Repurchase Program, Remaining Authorized Repurchase Amount $ 100,000,000      
Stock Repurchased During Period, Shares 983,818 3,510,973   961,335
Payments for Repurchase of Common Stock (18,374,000) (63,659,000) (10,650,000) 12,600,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount $ 5,400,000      
v2.4.0.6
Derivative Instruments (Details) (USD $)
 12 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
Foreign Currency Hedge Contract [Member]
Designated as Hedging Instrument [Member]
Dec. 31, 2011
Foreign Currency Hedge Contract [Member]
Designated as Hedging Instrument [Member]
Dec. 31, 2010
Foreign Currency Hedge Contract [Member]
Designated as Hedging Instrument [Member]
Dec. 31, 2012
Foreign Currency Hedge Contract [Member]
Not Designated as Hedging Instrument [Member]
Dec. 31, 2011
Foreign Currency Hedge Contract [Member]
Not Designated as Hedging Instrument [Member]
Dec. 31, 2010
Foreign Currency Hedge Contract [Member]
Not Designated as Hedging Instrument [Member]
Jun. 30, 2012
Planetsoft [Member]
Dec. 31, 2012
Planetsoft [Member]
Jun. 02, 2012
Planetsoft [Member]
Stockholders
May 31, 2012
Planetsoft [Member]
Stockholders
Dec. 31, 2012
Planetsoft [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 02, 2012
Planetsoft [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
May 31, 2012
Planetsoft [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Oct. 02, 2009
E-Z Data [Member]
Dec. 31, 2011
E-Z Data [Member]
Dec. 31, 2010
E-Z Data [Member]
Oct. 02, 2009
E-Z Data [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
Derivative [Line Items]                                        
Change in unrealized gain (loss) on foreign currency fair value hedging instruments       $ 1,200,000 $ (2,600,000) $ 1,300,000                            
Foreign currency transaction, realized gain (loss)             776,000 6,900,000 (93,000)                      
Number of shareholders                       3 3              
Put option, exercise period                   30 days             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             $ 15.11      
Put option, price to repurchase shares, discount                   10.00%             10.00%      
Put option liability 1,186,000 0                       1,200,000 1,400,000 1,400,000       6,600,000
Change in fair value of put option $ 191,000 $ 537,000 $ 6,059,000               $ 191,000             $ (537,000) $ (6,100,000)  
v2.4.0.6
Accounts Payable and Accrued Expenses (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Accounts Payable and Accrued Liabilities, Current [Abstract]    
Trade accounts payable $ 5,607 $ 2,925
Accrued professional fees 295 215
Income taxes payable 6,913 4,389
Sales taxes payable 2,651 3,206
Other accrued liabilities 31 394
Accounts payable and accrued liabilities $ 15,497 $ 11,129
v2.4.0.6
Other Current Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Prepaid Expense and Other Assets, Current [Abstract]    
Prepaid expenses $ 3,189 $ 2,712
Sales taxes receivable from customers 598 984
Stop loss insurance reimbursement on medical claims 0 364
Due from prior owners of acquired businesses for working capital settlements 955 0
Research and development tax credits receivable 266 0
Other 108 442
Total $ 5,116 $ 4,502
v2.4.0.6
Property and Equipment (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 22,418,000 $ 18,929,000  
Less accumulated depreciation and amortization (12,336,000) (10,095,000)  
Property and equipment, net 10,082,000 8,834,000  
Depreciation expense 3,100,000 2,700,000 2,400,000
Computer Equipment [Member]
      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 11,729,000 9,902,000  
Building [Member]
      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 3,103,000 3,362,000  
Land [Member]
      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 66,000 67,000  
Leasehold Improvements [Member]
      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 2,632,000 1,745,000  
Furniture, Fixtures and Other [Member]
      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 4,888,000 $ 3,853,000  
v2.4.0.6
Cash Option Profit Sharing Plan and Trust (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash Option Profit Sharing Plan and Trust [Abstract]      
Contributions to 401(k) Cash Option Profit Sharing Plan $ 364 $ 318 $ 284
v2.4.0.6
Geographic Information (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2012
Reportable_Segments
Dec. 31, 2011
Dec. 31, 2010
Revenues from External Customers and Long-Lived Assets [Line Items]                              
Number of reportable segments                         1    
External Revenues $ 54,023 $ 53,804 $ 47,716 $ 43,827 $ 44,050 $ 42,602 $ 42,267 $ 40,050 $ 35,097 $ 33,281 $ 32,207 $ 31,603 $ 199,370 $ 168,969 $ 132,188
Long-lived assets 435,277       347,365       242,518       435,277 347,365 242,518
United States
                              
Revenues from External Customers and Long-Lived Assets [Line Items]                              
External Revenues                         140,933 120,780 93,719
Long-lived assets 317,338       259,425       151,355       317,338 259,425 151,355
Canada
                              
Revenues from External Customers and Long-Lived Assets [Line Items]                              
External Revenues                         6,395 836 707
Long-lived assets 9,738       0       0       9,738 0 0
Latin America
                              
Revenues from External Customers and Long-Lived Assets [Line Items]                              
External Revenues                         8,227 10,504 4,874
Long-lived assets 12,726       14,179       18,478       12,726 14,179 18,478
Australia
                              
Revenues from External Customers and Long-Lived Assets [Line Items]                              
External Revenues                         36,330 31,991 27,253
Long-lived assets 1,267       1,286       1,525       1,267 1,286 1,525
Singapore
                              
Revenues from External Customers and Long-Lived Assets [Line Items]                              
External Revenues                         2,827 2,943 4,156
Long-lived assets 70,173       63,866       67,781       70,173 63,866 67,781
New Zealand
                              
Revenues from External Customers and Long-Lived Assets [Line Items]                              
External Revenues                         2,205 1,915 1,479
Long-lived assets 240       233       40       240 233 40
India
                              
Revenues from External Customers and Long-Lived Assets [Line Items]                              
External Revenues                         233 0 0
Long-lived assets 11,784       8,376       3,339       11,784 8,376 3,339
Europe
                              
Revenues from External Customers and Long-Lived Assets [Line Items]                              
External Revenues                         2,220 0 0
Long-lived assets $ 12,011       $ 0       $ 0       $ 12,011 $ 0 $ 0
v2.4.0.6
Related Party Transactions (Details) (USD $)
 12 Months Ended 0 Months Ended
Dec. 31, 2012
BOA [Member]
Dec. 31, 2011
BOA [Member]
Dec. 31, 2010
BOA [Member]
Dec. 31, 2012
Robin Raina Foundation [Member]
Apr. 26, 2012
BOA [Member]
Seventh Amendment [Member]
Related Party Transaction [Line Items]          
Revenue from related party $ 1,200,000 $ 860,000 $ 803,000    
Receivable due from related party 216,000 205,000      
Repayments of related party debt         45,140,000
Donation paid to related party non-profit       $ 46,000  
v2.4.0.6
Quarterly Financial Information (unaudited) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Quarterly Financial Information Disclosure [Abstract]                              
Total revenues $ 54,023 $ 53,804 $ 47,716 $ 43,827 $ 44,050 $ 42,602 $ 42,267 $ 40,050 $ 35,097 $ 33,281 $ 32,207 $ 31,603 $ 199,370 $ 168,969 $ 132,188
Gross Profit 43,576 44,304 38,559 34,798 35,389 33,895 33,353 32,743 27,406 25,863 24,780 24,540      
Operating income 20,260 20,708 17,711 18,329 16,556 17,954 18,605 15,634 13,658 13,082 13,008 12,759 77,008 68,748 52,507
Net income $ 18,745 $ 18,072 $ 18,067 $ 15,685 $ 17,330 $ 16,536 $ 22,348 $ 15,164 $ 15,944 $ 16,681 $ 14,010 $ 12,384 $ 70,569 $ 71,378 $ 59,019
Basic (in dollars per share) $ 0.50 $ 0.49 $ 0.49 $ 0.43 $ 0.48 $ 0.44 $ 0.57 $ 0.40 $ 0.45 $ 0.48 $ 0.40 $ 0.36 $ 1.91 $ 1.89 $ 1.69
Diluted (in dollars per share) $ 0.48 $ 0.46 $ 0.47 $ 0.40 $ 0.44 $ 0.41 $ 0.53 $ 0.37 $ 0.42 $ 0.43 $ 0.36 $ 0.32 $ 1.80 $ 1.75 $ 1.51
v2.4.0.6
Minority Business Investment (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Curepet, Inc. [Member]
  
Schedule of Cost-method Investments [Line Items]  
Revenue from related party $ 1,500,000
Curepet, Inc. [Member]
  
Schedule of Cost-method Investments [Line Items]  
Cost method investment, ownership percentage 19.80%
Payments to acquire cost method investment 2,000,000
Receivable due from related party $ 212,000
v2.4.0.6
Temporary Equity Temporary Equity (Details) (USD $)
 12 Months Ended 0 Months Ended 1 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Jun. 02, 2012
Planetsoft [Member]
Stockholders
Jun. 30, 2012
Planetsoft [Member]
May 31, 2012
Planetsoft [Member]
Stockholders
Temporary Equity [Line Items]            
Share subscribed for business acquisition, Value $ 0 $ 87,476,000 $ 828,000 $ 5,000,000.0    
Business acquisition, number of common shares issued       296,560    
Business acquisition, price per share       $ 16.86    
Number of shareholders       3   3
Put option, exercise period         30 days  
Put option, vesting period required prior to exercise         2 years  
Shares that may be repurchased under put option         296,560  
Put option, price to repurchase shares         $ 16.86  
v2.4.0.6
Schedule II - Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Allowance for Doubtful Accounts Receivable [Member]
      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Beginning balance $ 1,719 $ 1,126 $ 565
Provision for doubtful accounts 442 976 1,143
Write-off of accounts receivable against allowance (1,004) (725) (586)
Other 0 342 4
Ending balance 1,157 1,719 1,126
Deferred Tax Assets [Member]
      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Beginning balance 0 (6,626) (10,431)
Decrease (increase) 0 6,626 3,805
Ending balance $ 0 $ 0 $ (6,626)