Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2018	Mar. 11, 2019	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	Exela Technologies, Inc.
Entity Central Index Key	0001620179
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 97,579,074
Entity Common Stock, Shares Outstanding		150,142,095

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 25,615	$ 39,000
Restricted cash	18,239	42,489
Accounts receivable, net of allowance for doubtful accounts of $4,359 and $3,725 respectively	270,812	229,704
Inventories, net	16,220	11,922
Prepaid expenses and other current assets	25,015	24,596
Total current assets	355,901	347,711
Property, plant and equipment, net	132,986	132,908
Goodwill	708,258	747,325
Intangible assets, net	407,021	464,984
Deferred income tax assets	16,225	9,019
Other noncurrent assets	19,391	12,891
Total assets	1,639,782	1,714,838
Current liabilities
Accounts payable	99,853	81,263
Related party payables	7,735	14,445
Income tax payable	1,996	3,612
Accrued liabilities	66,008	49,383
Accrued compensation and benefits	54,583	46,925
Accrued interest	49,071	55,102
Customer deposits	34,235	31,656
Deferred revenue	16,504	12,709
Obligation for claim payment	56,002	42,489
Current portion of capital lease obligations	17,498	15,611
Current portion of long-term debt	29,237	20,565
Total current liabilities	432,722	373,760
Long-term debt, net of current maturities	1,306,423	1,276,094
Capital lease obligations, net of current maturities	26,738	25,958
Pension liability	25,269	25,496
Deferred income tax liabilities	11,212	5,362
Long-term income tax liability	3,024	3,470
Other long-term liabilities	15,400	14,704
Total liabilities	1,820,788	1,724,844
Commitment and Contingencies (Note 12)
Stockholders' equity (deficit)
Common stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 152,692,140 shares issued and 150,142,955 shares outstanding at December 31, 2018 and 150,578,451 shares issued and 150,529,151 outstanding at December 31, 2017	15	15
Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; 4,569,233 shares issued and outstanding at December 31, 2018 and 6,194,233 shares issued or outstanding at December 31, 2017	1	1
Additional paid in capital	482,018	482,018
Less: common stock held in treasury, at cost; 2,549,185 shares at December 31, 2018 and 49,300 shares at December 31, 2017	(10,342)	(249)
Equity-based compensation	41,731	34,085
Accumulated deficit	(678,563)	(514,628)
Accumulated other comprehensive loss:
Foreign currency translation adjustment	(6,565)	(194)
Unrealized pension actuarial losses, net of tax	(9,301)	(11,054)
Total accumulated other comprehensive loss	(15,866)	(11,248)
Total stockholders’ deficit	(181,006)	(10,006)
Total liabilities and stockholders’ deficit	$ 1,639,782	$ 1,714,838

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$ 4,359	$ 3,725
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock shares authorized	1,600,000,000	1,600,000,000
Common stock, shares issued	152,692,140	150,578,451
Common stock, shares outstanding	150,142,955	150,529,151
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	4,569,233	6,194,233
Preferred stock, shares outstanding	4,569,233	6,194,233
Common stock held in treasury at cost (in shares)	2,549,185	49,300

Condensed Consolidated Statement of Operations - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Consolidated Statement of Operations
Revenue	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 386,289	$ 338,393	$ 209,382	$ 218,260	$ 1,586,222	$ 1,152,324	$ 789,926
Cost of revenue (exclusive of depreciation and amortization)	306,192	295,936	313,954	293,792	289,901	255,116	140,418	143,708	1,209,874	829,143	519,121
Selling, general and administrative expenses	47,420	44,913	46,723	45,595	48,328	102,048	34,998	35,581	184,651	220,955	130,437
Depreciation and amortization	36,057	35,041	36,368	38,019	28,112	28,052	21,406	21,320	145,485	98,890	79,639
Impairment of goodwill and other intangible assets	48,127				69,437				48,127	69,437
Related party expense	1,068	759	1,402	1,105	1,698	26,892	2,456	2,385	4,334	33,431	10,493
Operating (loss) income	(39,221)	6,381	11,935	14,656	(51,187)	(73,715)	10,104	15,266	(6,249)	(99,532)	50,236
Other expense (income), net:
Interest expense, net	38,212	38,339	38,527	38,017	36,749	37,652	27,869	26,219	153,095	128,489	109,414
Loss on extinguishment of debt		1,067				35,512			1,067	35,512
Sundry expense (income),net	(1,689)	2,571	2,325	64	665	(563)	327	(2,724)	3,271	(2,295)	(712)
Other income, net	1,783	(781)	(704)	(3,328)	(1,297)				(3,030)	(1,297)
Net loss before income taxes	(80,905)	(29,673)	(23,563)	(19,969)	(85,974)	(147,442)	(17,438)	(13,677)	(154,110)	(264,531)	(59,890)
Income tax (expense) benefit	(3,496)	733	(1,619)	(4,025)	27,322	37,002	(2,074)	(2,004)	(8,407)	60,246	11,787
Net loss	(84,401)	(28,940)	(25,182)	(23,994)	(58,652)	(110,440)	(19,512)	(15,681)	(162,517)	(204,285)	(48,103)
Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature						(16,375)			0	(16,375)
Cumulative dividends for Series A Preferred Stock	(914)	(914)	(914)	(914)	(1,264)	(1,225)			(3,655)	(2,489)
Net loss attributable to common stockholders	$ (85,315)	$ (29,854)	$ (26,096)	$ (24,908)	$ (59,916)	$ (128,040)	$ (19,512)	$ (15,681)	$ (166,172)	$ (223,149)	$ (48,103)
Loss per share - basic and diluted (in dollars per share)	$ (0.54)	$ (0.20)	$ (0.17)	$ (0.16)	$ (0.40)	$ (0.92)	$ (0.28)	$ (0.23)	$ (1.09)	$ (2.08)	$ (0.75)

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Consolidated Statements of Comprehensive Loss
Net Loss	$ (162,517)	$ (204,285)	$ (48,103)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(6,371)	3,353	(132)
Unrealized pension actuarial gains (losses), net of tax	1,753	1,285	(7,263)
Total other comprehensive loss, net of tax	$ (167,135)	$ (199,647)	$ (55,498)

Condensed Consolidated Statements of Stockholders’ Deficit - USD ($) $ in Thousands	Common Stock	Preferred Stock	Treasury Stock	Additional Paid-in Capital	Equity-based Compensation	Foreign Currency Translation Adjustment	Unrealized Pension Actuarial Losses, net of tax	Accumulated Deficit	Total
Beginning balance at Dec. 31, 2015	$ 6			$ (57,395)	$ 20,256	$ (3,415)	$ (5,076)	$ (245,865)	$ (291,489)
Beginning balance (in shares) at Dec. 31, 2015	64,024,557
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss								(48,103)	(48,103)
Equity-based compensation					7,086				7,086
Foreign currency translation adjustment						(132)			(132)
Net realized pension actuarial gains, net of tax							(7,263)		(7,263)
Ending balance at Dec. 31, 2016	$ 6			(57,395)	27,342	(3,547)	(12,339)	(293,968)	(339,901)
Ending balance (in shares) at Dec. 31, 2016	64,024,557
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss								(204,285)	(204,285)
Equity-based compensation					6,743				6,743
Foreign currency translation adjustment						3,353			3,353
Net realized pension actuarial gains, net of tax							1,285		1,285
Merger recapitalization	$ 2			20,546					20,548
Merger recapitalization (in shares)	16,575,443
Shares issued to acquire Novitex (refer to Note 3)	$ 3			244,797					244,800
Shares issued to acquire Novitex (refer to Note 3) (in shares)	30,600,000
Issuance/conversion of Quinpario shares	$ 1			22,358					22,359
Issuance/conversion of Quinpario shares (in shares)	12,093,331
Sale of common shares at July 12, 2017	$ 3			130,860					130,863
Sale of common shares at July 12, 2017 (in shares)	18,757,942
Issuance of Series A Preferred stock		$ 1		73,553					73,554
Issuance of Series A Preferred stock (in shares)		9,194,233
Shares issued for advisory services and deferred underwriting fees				28,573					28,573
Shares issued for advisory services and deferred underwriting fees (in shares)	3,609,375
Conversion of Series A Preferred stock to common shares	3,667,803	(3,000,000)
Shares issued for HandsOn Global Management contract termination fee				10,000					10,000
Shares issued for HandsOn Global Management contract termination fee ( in shares)	1,250,000
Equity issuance expenses				(7,649)					(7,649)
Adjustment for beneficial conversion feature of Series A preferred stock (refer to Note 2)				16,375				(16,375)
Treasury stock purchases			$ (249)						(249)
Treasury stock purchases (in shares)	(49,300)		49,300
Ending balance at Dec. 31, 2017	$ 15	$ 1	$ (249)	482,018	34,085	(194)	(11,054)	(514,628)	(10,006)
Ending balance (in shares) at Dec. 31, 2017	150,529,151	6,194,233	49,300
Increase (Decrease) in Stockholders’ Equity (Deficit)
Implementation of ASU 2014-09 (Note 2)								(1,418)	(1,418)
Net Loss								(162,517)	(162,517)
Equity-based compensation					6,562				6,562
Foreign currency translation adjustment						(6,371)			(6,371)
Net realized pension actuarial gains, net of tax							1,753		1,753
RSU's exercised					256				256
RSU's exercised (in shares)	126,922
Stock option expense					828				828
Conversion of Series A Preferred stock to common shares	1,986,767	(1,625,000)
Treasury stock purchases			$ (10,093)						$ (10,093)
Treasury stock purchases (in shares)	(2,499,885)		2,499,885						2,499,885
Ending balance at Dec. 31, 2018	$ 15	$ 1	$ (10,342)	$ 482,018	$ 41,731	$ (6,565)	$ (9,301)	$ (678,563)	$ (181,006)
Ending balance (in shares) at Dec. 31, 2018	150,142,955	4,569,233	2,549,185

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Cash flows from operating activities

Net loss

$ (162,517)

$ (204,285)

$ (48,103)

Adjustments to reconcile net loss

Depreciation and amortization

145,485

98,890

79,639

Fees paid in stock

23,875

HGM contract termination fee paid in stock

10,000

Original issue discount and debt issuance cost amortization

10,913

12,280

13,684

Impairment of goodwill and other intangible assets

48,127

69,437

Provision for doubtful accounts

2,767

500

756

Deferred income tax provision (benefit)

3,352

(66,723)

(15,729)

Share-based compensation expense

7,647

6,743

7,086

Foreign currency remeasurement

(1,180)

1,382

193

Loss on sale of assets

2,095

399

2,245

Fair value adjustment for interest rate swap

(2,540)

(1,297)

Change in operating assets and liabilities, net of effect from acquisitions

Accounts receivable

(19,319)

(4,832)

20,801

Prepaid expenses and other assets

(2,820)

2,628

4,969

Accounts payable and accrued liabilities

5,157

69,551

^[1]

9,033

^[1]

Related party payables

(6,710)

4,907

(2,427)

Net cash provided by operating activities

30,457

23,455

^[1]

72,147

^[1]

Cash flows from investing activities

Purchase of property, plant and equipment

(20,072)

(14,440)

(7,926)

Additions to internally developed software

(7,438)

(7,843)

(13,017)

Additions to outsourcing contract costs

(7,552)

(10,992)

(14,636)

Cash acquired in TransCentra acquisition

3,351

Proceeds from sale of Assets

3,568

4,607

626

Cash acquired in Quinpario reverse merger

Cash paid in acquisition, net of cash received

(34,810)

(423,797)

Net cash used in investing activities

(66,304)

(452,374)

(31,602)

Cash flows from financing activities

Change in bank overdraft

(210)

(1,331)

Loss on extinguishment of debt

1,067

35,512

^[2]

Proceeds from issuance of stock

204,417

Cash received from Quinpario

27,031

Repurchase of Common Stock

(7,221)

(249)

Proceeds from financing obligation

11,557

3,116

5,429

Contribution from Shareholders

20,548

Proceeds from new credit facility

30,000

1,320,500

Retirement of previous credit facilities

(1,055,736)

Cash paid for debt issuance costs

(1,094)

(39,837)

Cash paid for equity issue costs

(7,500)

(149)

Borrowings from revolver and swing-line loan

30,000

72,600

53,700

Repayments from revolver and swing line loan

(30,000)

(72,500)

(53,200)

Principal payments on long-term obligations

(28,719)

(39,316)

(47,853)

Net cash provided by (used in) financing activities

(1,910)

475,727

(43,255)

Effect of exchange rates on cash

122

429

(2,059)

Net increase (decrease) in cash and cash equivalents

(37,635)

47,237

^[1]

(4,769)

^[1]

Cash and cash equivalents

Beginning of period

^[1]

81,489

34,252

39,021

End of period

43,854

81,489

^[1]

34,252

^[1]

Supplemental cash flow data:

Income tax payments, net of refunds received

7,827

5,711

3,771

Interest paid

146,076

69,622

96,166

Noncash investing and financing activities:

Assets acquired through capital lease arrangements

14,920

6,973

11,925

Leasehold improvements funded by lessor

1,565

146

5,186

Issuance of common stock as consideration for Novitex

244,800

Accrued capital expenditures

2,820

1,621

$ 580

Dividend equivalent on Series A Preferred Stock

$ 0

16,375

Liability assumed of Quinpario

$ 4,672

[1]	Balances for these items differ from previously reported balances due to the adoption of ASU no. 2016-18, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230), see Note 2.
[2]	Exela reclassified ‘Loss on extinguishment of debt’ from operating to financing activities due to the adoption of ASU no. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, see Note 2.

Description of the Business	12 Months Ended
Description of the Business	Dec. 31, 2018
Description of the Business
Description of the Business	1. Description of the Business Organization Exela Technologies, Inc. (the “Company” or “Exela”) is a global provider of transaction processing solutions, enterprise information management, document management and digital business process services. The Company provides mission-critical information and transaction processing solutions services to clients across three major industry verticals: (1) Information & Transaction Processing, (2) Healthcare Solutions, and (3) Legal and Loss Prevention Services. The Company manages information and document driven business processes and offers solutions and services to fulfill specialized knowledge-based processing and consulting requirements, enabling clients to concentrate on their core competencies. Through its outsourcing solutions, the Company enables businesses to streamline their internal and external communications and workflows. The Company was originally incorporated in Delaware on July 15, 2014 as a special purpose acquisition company under the name Quinpario Acquisition Corp 2 (“Quinpario”) for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving Quinpario and one or more businesses or entities. On July 12, 2017 (the “Closing”), the Company consummated its business combination with SourceHOV Holdings, Inc. (“SourceHOV”) and Novitex Holdings, Inc. (“Novitex”) pursuant to the Business Combination Agreement and Consent, Waiver and Amendment to the Business Combination Agreement, dated February 21, 2017 and June 15, 2017, respectively (the “Novitex Business Combination”). In connection with the Closing, the Company changed its name from Quinpario Acquisition Corp 2 to Exela Technologies, Inc. Unless the context otherwise requires, the “Company” refers to the combined company and its subsidiaries following the Novitex Business Combination, “Quinpario” refers to the Company prior to the closing of the Novitex Business Combination, “SourceHOV” refers to SourceHOV prior to the Novitex Business Combination and “Novitex” refers to Novitex prior to the Novitex Business Combination. Refer to Note 3 for further discussion of the Novitex Business Combination.

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Summary of Significant Accounting Policies

2. Basis of Presentation and Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements.

Basis of Presentation

The accompanying consolidated financial statements and related notes to the consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”).

The Novitex Business Combination has been accounted for as a reverse merger in accordance with U.S. GAAP. For accounting purposes, SourceHOV was deemed to be the accounting acquirer, Quinpario was the legal acquirer, and Novitex is considered the acquired company. In conjunction with the Novitex Business Combination, outstanding shares of SourceHOV were converted into Common Stock of the Company, par value $0.0001 per share, shown as a recapitalization, and the net assets of Quinpario were acquired at historical cost, with no goodwill or other intangible assets recorded. The consolidated assets and liabilities as of December 31, 2016, and results of operations for the years ended December 31, 2016 and 2015 are those of SourceHOV. Quinpario’s assets and liabilities, which include net cash from the trust of $27.0 million and accrued fees payable of $4.8 million, and results of operations are consolidated with SourceHOV beginning on the Closing. The shares and corresponding capital amounts and earnings per share available to holders of the Company’s Common Stock, prior to the Novitex Business Combination, have been retroactively restated as shares reflecting the exchange ratio established in the Novitex Business Combination. The presented financial information for the year ended December 31, 2017 includes the financial information and activities for SourceHOV for the period January 1, 2017 to December 31, 2017 ( 365 days) as well as the financial information and activities of Novitex for the period July 13, 2017 to December 31, 2017 ( 172 days).

Principles of Consolidation

The accompanying consolidated financial statements and related notes to the consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities as defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810-10, Consolidation and whether the Company is the primary beneficiary. Consolidation is required if both of these criteria are met./

The preparation of consolidated financial statements in conformity with U.S. GAAP 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 date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Estimates and judgments relied upon in preparing these consolidated financial statements include revenue recognition for multiple element arrangements, allowance for doubtful accounts, income taxes, depreciation, amortization, employee benefits, equity-based compensation, contingencies, goodwill, intangible assets, fair value of assets and liabilities acquired in acquisitions, and asset and liability valuations. The Company regularly assesses these estimates and records changes in estimates in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Segment Reporting

The Company consists of the following three segments:

1. Information & Transaction Processing Solutions (“ITPS”). ITPS provides industry-specific solutions for banking and financial services, including lending solutions for mortgages and auto loans, and banking solutions for clearing, anti-money laundering, sanctions, and interbank cross-border settlement; property and casualty insurance solutions for origination, enrollments, claims processing, and benefits administration communications; public sector solutions for income tax processing, benefits administration, and record management; multi-industry solutions for payment processing and reconciliation, integrated receivables and payables management, document logistics and location services, records management and electronic storage of data, documents; and software, hardware, professional services and maintenance related to information and transaction processing automation, among others.

2. Healthcare Solutions (“HS”). HS offerings include revenue cycle solutions, integrated accounts payable and accounts receivable, and information management for both the healthcare payer and provider markets. Payer service offerings include claims processing, claims adjudication and auditing services, enrollment processing and policy management, and scheduling and prescription management. Provider service offerings include medical coding and insurance claim generation, underpayment audit and recovery, and medical records management.

3. Legal and Loss Prevention Services (“LLPS”). LLPS solutions include processing of legal claims for class action and mass action settlement administrations, involving project management support, notification and outreach to claimants, collection, analysis and distribution of settlement funds. Additionally, LLPS provides data and analytical services in the context of litigation consulting, economic and statistical analysis, expert witness services, and revenue recovery services for delinquent accounts receivable.

Cash and Cash Equivalents

Cash and cash equivalents include cash deposited with financial institutions and liquid investments with original maturity dates equal to or less than three months. All bank deposits and money market accounts are considered cash and cash equivalents. The Company holds cash and cash equivalents at major financial institutions, which often exceed Federal Deposit Insurance Corporation insured limits. Historically, the Company has not experienced any losses due to such bank depository concentration.

Certificates of deposit and fixed deposits whose original maturity is greater than three months and is one year or less are classified as short-term investments and certificates of deposit and fixed deposits whose maturity is greater than one year at the balance sheet date are classified as non-current assets in the consolidated balance sheets. The purchase of any certificates of deposit or fixed deposits that are classified as short-term investments or non-current assets appear in the investing section of the consolidated statements of cash flows.

Restricted Cash

As part of the Company's legal claims processing service, the Company holds cash for various settlement funds once the fund is in the wind down stage and claims have been paid. The cash is used to pay tax obligations and other liabilities of the settlement funds. The Company has recorded an offsetting liability for the settlement funds received, which is included in Obligation for claim payment in the consolidated balance sheets of $56.0 million and $42.5 million at December 31, 2018 and 2017, respectively. Of the total amount of settlement funds received, $10.6 million and $22.9 million were not subject to legal restrictions on use as of December 31, 2018 and December 31, 2017, respectively.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are carried at the original invoice amount less an estimate made for doubtful accounts. Revenue that has been earned but remains unbilled at the end of the period is recorded as a component of accounts receivable, net. The Company specifically analyzes accounts receivable and historical bad debts, customer credit-worthiness, current economic trends, and changes in customer payment terms and collection trends when evaluating the adequacy of its allowance for doubtful accounts. The Company writes off accounts receivable balances against the allowance for doubtful accounts, net of any amounts recorded in deferred revenue, when it becomes probable that the receivable will not be collected.

Inventories

Inventories are valued at the lower of cost and net realizable value method and include the cost of raw materials, labor, and purchased subassemblies. Cost is determined using the weighted average method. Net Inventory as of December 31, 2018 and 2017 were $16.2 million and $11.9 million, respectively.

Property, Plant and Equipment

Property, plant, and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method (which approximates the use of the assets) over the estimated useful lives of the assets. When these assets are sold or otherwise disposed of, the asset and related depreciation is relieved, and any gain or loss is included in the consolidated statements of operations for the period of sale or disposal. Leasehold improvements are amortized over the lease term or the useful life of the asset, whichever is shorter. Assets under capital leases are amortized over the lease term unless ownership is transferred by the end of the lease or there is a bargain purchase option, in which case assets are amortized normally on a straight-line basis over the useful life that would be assigned if the assets were owned. The amortization of these capital lease assets is recorded in depreciation expense in the consolidated statements of operations. Repair and maintenance costs are expensed as incurred.

Intangible Assets

Customer Relationships

Customer relationship intangible assets represent customer contracts and relationships obtained as part of acquired businesses. Customer relationship values are estimated by evaluating various factors including historical attrition rates, contractual provisions and customer growth rates, among others. The estimated average useful lives of customer relationships range from 4 to 16 years depending on facts and circumstances. These intangible assets are primarily amortized based on undiscounted cash flows. The Company evaluates the remaining useful life of intangible assets on an annual basis to determine whether events and circumstances warrant a revision to the remaining useful life.

Trade Names

The Company has determined that its trade name intangible assets are indefinite-lived assets and therefore are not subject to amortization. The Company performed a quantitative analysis as part of the annual impairment test on October 1, 2018 and October 1, 2017, and recorded an impairment charge. Additionally, late in the fourth quarter of 2017, the Company implemented a strategy to transition to a unified Exela brand beginning in 2018. As a result, the Company performed a quantitative analysis as of December 31, 2017, and recorded another impairment charge. The Company’s valuation of trade names at the reporting unit level utilizes the Relief-from-Royalty method that represents the present value of the future economic benefits generated by ownership of the trade names and approximates the amount that the Company would have to pay as a royalty to a third party to license such names.

Trademarks

The Company has determined that its trademark intangible assets resulting from acquisitions are definite-lived assets and therefore are subject to amortization. The Company has historically amortized trademarks on a straight-line basis over the estimated useful life, which is typically 1 year. As part of the impairment analysis completed as of December 31, 2017, and due to the Company's strategy to transition to a unified Exela brand beginning in 2018, the Company reduced the estimated useful lives of its trademarks and amortized the trademarks over a one year period.

Developed Technology

The Company has various developed technologies embedded in its technology platform. Developed technology is an integral asset to the Company in providing solutions to customers and is recorded as an intangible asset. The Company amortizes developed technology on a straight-line basis over the estimated useful life, which is typically 5 to 8.5 years.

Capitalized Software Costs

The Company capitalizes certain costs incurred to develop software products to be sold, leased or otherwise marketed after establishing technological feasibility in accordance with ASC section 985-20, Software—Costs of Software to Be Sold, Leased, or Marketed, and the Company capitalizes costs to develop or purchase internal-use software in accordance with ASC section 350-40, Intangibles—Goodwill and Other— Internal-Use Software. Significant estimates and assumptions include determining the appropriate period over which to amortize the capitalized costs based on estimated useful lives and estimating the marketability of the commercial software products and related future revenues. The Company amortizes capitalized software costs on a straight-line basis over the estimated useful life, which is typically 3 to 5 years.

Outsourced Contract Costs

Costs of outsourcing contracts, including costs incurred for bid and proposal activities, are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract are deferred and expensed on a straight-line basis over the estimated contract term. These costs represent incremental external costs or certain specific internal costs that are directly related to the contract acquisition or transition activities and can be separated into two principal categories: contract commissions and transition/set-up costs. Examples of such capitalized costs include hourly labor and related fringe benefits and travel costs.

Non-compete Agreements

The Company acquired certain non-compete agreements in connection with the Novitex Business Combination. These were related to four Novitex executives that were terminated following the acquisition. As of December 31, 2018 these agreements were fully amortized.

Assembled Workforce

The Company acquired assembled workforce in an assets purchase transaction in the fourth quarter of 2018. The Company recognized an intangible asset for the acquired assembled workforce and shall amortize the asset on a straight-line basis over the estimated useful life of 4 years.

Impairment of Indefinite-Lived Assets

The Company conducts its annual indefinite-lived assets impairment tests on October 1st of each year for its indefinite-lived trade names, or more frequently if indicators of impairment exist. When performing the impairment test, the Company has the option of performing a qualitative or quantitative assessment to determine if an impairment has occurred. A quantitative assessment requires comparison of fair value of the asset to its carrying value. The Company utilizes the Income Approach, specifically the Relief-from-Royalty method, which has the basic tenet that a user of that intangible asset would have to make a stream of payments to the owner of the asset in return for the rights to use that asset. Refer to Note 7- Intangible Assets and Goodwill for additional discussion of impairment of trade names.

Impairment of Long-Lived Assets

The Company reviews the recoverability of its long-lived assets, including finite-lived trade names, trademarks, customer relationships, developed technology, capitalized software costs, outsourced contract costs, acquired software, workforce, and property, plant and equipment, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. The primary measure of fair value is based on discounted cash flows based in part on the financial results and the expectation of future performance.

The Company did not record any material impairment related to its property, plant, and equipment, customer relationships, trademarks, developed technology, capitalized software, or outsourced contract costs for the years ended December 31, 2018, 2017, and 2016.

Goodwill

Goodwill represents the excess purchase price over tangible and intangible assets acquired less liabilities assumed arising from business combinations. Goodwill is generally allocated to reporting units based upon relative fair value (taking into consideration other factors such as synergies) when an acquired business is integrated into multiple reporting units. The Company's reporting units are at the operating segment level, which discrete financial information is prepared and regularly reviewed by management. When a business within a reporting unit is disposed of, goodwill is allocated to the disposed business using the relative fair value method.

The Company conducts its annual goodwill impairment tests on October 1st of each year, or more frequently if indicators of impairment exist. When performing the annual impairment test, the Company has the option of performing a qualitative or quantitative assessment to determine if an impairment has occurred. If a qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would be required to perform a quantitative impairment analysis for goodwill. The quantitative analysis requires a comparison of fair value of the reporting unit to its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company uses a combination of the Guideline Public Company Method of the Market Approach and the Discounted Cash Flow Method of the Income Approach to determine the reporting unit fair value. Refer to Note 7- Intangible Assets and Goodwill for additional discussion of impairment of goodwill.

Derivative Instruments and Hedging Activities

As required by ASC 815—Derivatives and Hedging, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The Company's objective in using interest rate derivatives is to manage its exposure to variable interest rates related to its term loan under the Credit Agreement. In order to accomplish this objective, in November 2017, the Company entered into a three year, one-month LIBOR interest rate contract with a notional amount of $347.8 million. The contract will mitigate the variable interest rate risk related to the LIBOR with a fixed interest rate paid semi-annually starting January 12, 2018.

The following table summarizes the Company’s interest rate swap positions as of December 31, 2018:


		December 31, 2018
Effective	Maturity	(In Millions)		Weighted Average
date	date	Notional Amount		Interest Rate
1/12/2018	1/12/2021	$	339.1	1.9725	%

The interest rate swap, which is used to manage the Company's exposure to interest rate movements and other identified risks, was not designated as a hedge. As such, the change in the fair value of the derivative is recorded directly in earnings and was a gain of $2.5 million and $1.3 million for the year ended December 31, 2018 and 2017, respectively.

Benefit Plan Accruals

The Company has defined benefit plans in the U.K and Germany, under which participants earn a retirement benefit based upon a formula set forth in the plan. The Company records expense related to this plan using actuarially determined amounts that are calculated under the provisions of ASC 715, Compensation-Retirement Benefits. Key assumptions used in the actuarial valuations include the discount rate, the expected rate of return on plan assets and the rate of increase in future compensation levels. Refer to Note 11- Employee Benefit Plans.

Leases

Leases are classified as capital leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Assets held under a capital lease are initially recognized as assets of the Company at their fair value at the inception of the lease, or if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the other long-term obligations in the consolidated balance sheets. Operating lease payments are initially recognized as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which the economic benefits from the leased asset are consumed.

Stock-Based Compensation

The Company accounts for stock based compensation in accordance with ASC 718, Compensation- Stock Compensation. ASC 718 requires generally that all equity awards be accounted for at their “fair value.” This fair value is measured at the fair value of value of the awards at the grant date and recognized as compensation expense on a straight-line basis over the vesting period. The fair value of the awards on the grant date is determined using the Enterprise Value model. The expense resulting from share-based payments is recorded in general and administrative expense in the accompanying consolidated statements of operations. Refer to Note 14 - Stock-Based Compensation.

Revenue Recognition

We account for revenue in accordance with ASC 606. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. All of our material sources of revenue are derived from contracts with customers, primarily relating to the provision of business and transaction processing services within each of our segments. We do not have any significant extended payment terms, as payment is received shortly after goods are delivered or services are provided.

Nature of Services

Our primary performance obligations are to stand ready to provide various forms of business processing services, consisting of a series of distinct services that are substantially the same and have the same pattern of transfer over time, and accordingly are combined into a single performance obligation. Our promise to our customers is typically to perform an unknown or unspecified quantity of tasks and the consideration received is contingent upon the customers’ use (i.e., number of transactions processed, requests fulfilled, etc.); as such, the total transaction price is variable. We allocate the variable fees to the single performance obligation charged to the distinct service period in which we have the contractual right to bill under the contract.

Disaggregation of Revenues

The following tables disaggregate revenue from contracts by geographic region and by segment for the year ended December 31, 2018, 2017, and 2016:


	Year Ended December 31,
	2018						2017						2016
	ITPS		HS		LLPS		ITPS		HS		LLPS		ITPS		HS		LLPS
United States	$	1,034,941	$	228,015	$	84,560	$	675,613	$	233,595	$	91,619	$	304,563	$	247,796	$	102,206
Europe		211,314		—		—		136,531		—		—		131,287		—		—
Other		27,392		—		—		14,966		—		—		4,074		—		—
Total	$	1,273,647	$	228,015	$	84,560	$	827,110	$	233,595	$	91,619	$	439,924	$	247,796	$	102,206

Contract Balances

The following table presents contract assets and contract liabilities recognized at December 31, 2018 and 2017:


	December 31,		December 31,
	2018		2017
Accounts receivable, net	$	270,812	$	229,704
Deferred revenues		16,940		13,717
Costs to obtain and fulfill a contract		18,624		22,929
Customer deposits		34,235		31,656

Accounts receivable, net includes $39.5 million and $28.4 million as of December 31, 2018 and 2017, respectively, representing amounts not billed to customers. We have accrued the unbilled receivables for work performed in accordance with the terms of contracts with customers.

Deferred revenues relate to payments received in advance of performance under a contract. A significant portion of this balance relates to maintenance contracts or other service contracts where we received payments for upfront conversions or implementation activities which do not transfer a service to the customer but rather are used in fulfilling the related performance obligations that transfer over time. The advance consideration received from customers is deferred over the contract term. We recognized revenue of $13.4 million during the year ended December 31, 2018 that had been deferred as of December 31, 2017.

Costs incurred to obtain and fulfill contracts are deferred and expensed on a straight-line basis over the estimated benefit period. We recognized $10.5 million of amortization for these costs in 2018 within depreciation and amortization expense. These costs represent incremental external costs or certain specific internal costs that are directly related to the contract acquisition or transition activities and can be separated into two principal categories: contract commissions and transition/set-up costs. Examples of such capitalized costs include hourly labor and related fringe benefits and travel costs. Applying the practical expedient in ASC 340-40-25-4, we recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in Selling, general and administrative expenses. The effect of applying this practical expedient was not material.

Customer deposits consist primarily of amounts received from customers in advance for postage. The majority of the amounts recorded as of December 31, 2017 were used to pay for postage with the corresponding postage revenue being recognized during the year ended December 31, 2018.

Performance Obligations

At the inception of each contract, we assess the goods and services promised in our contracts and identify each distinct performance obligation. The majority of our contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts. For the majority of our business and transaction processing service contracts, revenues are recognized as services are provided based on an appropriate input or output method, typically based on the related labor or transactional volumes.

Certain of our contracts have multiple performance obligations, including contracts that combine software implementation services with post-implementation customer support. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we estimate our expected costs of satisfying a performance obligation and add an appropriate margin for that distinct good or service. We also use the adjusted market approach whereby we estimate the price that customers in the market would be willing to pay. In assessing whether to allocate variable consideration to a specific part of the contract, we consider the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Certain of our software implementation performance obligations are satisfied at a point in time, typically when customer acceptance is obtained.

When evaluating the transaction price, we analyze, on a contract-by-contract basis, all applicable variable consideration. The nature of our contracts give rise to variable consideration, including volume discounts, contract penalties, and other similar items that generally decrease the transaction price. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We do not anticipate significant changes to our estimates of variable consideration.

We include reimbursements from customers, such as postage costs, in revenue, while the related costs are included in cost of revenue.

Transaction Price Allocated to the Remaining Performance Obligations

In accordance with optional exemptions available under ASC 606, we did not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, and (2) contracts for which variable consideration relates entirely to an unsatisfied performance obligation, which comprise the majority of our contracts. We have certain non-cancellable contracts where we receive a fixed monthly fee in exchange for a series of distinct services that are substantially the same and have the same pattern of transfer over time, with the corresponding remaining performance obligations as of December 31, 2018 in each of the future periods below:


Estimated Remaining Fixed Consideration for Unsatisfied Performance Obligations

2019	$	40,402
2020		23,310
2021		13,416
2022		4,780
2023		1,113
2024 and thereafter		771
Total	$	83,792

Research and Development

Research and development costs are expensed as incurred. Research and development costs expensed for the years ended December 31, 2018, 2017, and 2016 were $2.0 million, $2.3 million, and $2.3 million, respectively.

Advertising

Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2018, 2017, and 2016, were $0.9 million, $0.7 million, and $1.1 million, respectively.

Income Taxes

The Company accounts for income taxes by using the asset and liability method. The Company accounts for income taxes regarding uncertain tax positions and recognized interest and penalties related to uncertain tax positions in income tax benefit/ (expense) in the consolidated statements of operations.

Deferred income taxes are recognized on the tax consequences of temporary differences by applying enacted statutory tax rates applicable in future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, as determined under tax laws and rates. A valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax assets will not be realized. Due to numerous ownership changes, the Company is subject to limitations on existing net operating losses under Section 382 of the Internal Revenue Code (the Code). Accordingly, valuation allowances have been established against a portion of the net operating losses to reflect estimated Section 382 limitations. The Company also considered the realizability of net operating losses not limited by Section 382. The Company did not consider future book income as a source of taxable income when assessing if a portion of the deferred tax assets are more likely than not to be realized. However, scheduling the reversal of existing deferred tax liabilities indicated that only a portion of the deferred tax assets are likely to be realized. Therefore, partial valuation allowances were established against a portion of the Company’s deferred tax assets. In the event the Company determines that it would be able to realize deferred tax assets that have valuation allowances established, an adjustment to the net deferred tax assets would be recognized as component of income tax expense through continuing operations.

The Company engages in transactions (i.e. acquisitions) in which the tax consequences may be subject to uncertainty and examination by the varying taxing authorities. Significant judgment is required by the Company in assessing and estimating the tax consequences of these transactions. While the Company’s tax returns are prepared and based on the Company’s interpretation of tax laws and regulations, in the normal course of business the tax returns are subject to examination by the various taxing authorities. Such examinations may result in future assessments of additional tax, interest and penalties. For purposes of the Company’s income tax provision, a tax benefit is not recognized if the tax position is not more likely than not to be sustained based solely on its technical merits. Considerable judgment is involved in determining which tax positions are more likely than not to be sustained. Refer to Note 10 - Income Taxes for further information.

Loss Contingencies

The Company reviews the status of each significant matter, if any, and assess its potential financial exposure considering all available information including, but not limited to, the impact of negotiations, settlements, rulings, advice of legal counsel and other updated information and events pertaining to a particular matter. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to loss contingencies, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to its pending claims and litigation, and may revise its estimates. These revisions in the estimates of the potential liabilities could have a material impact on the results of operations and financial position. The Company’s liabilities exclude any estimates for legal costs not yet incurred associated with handling these matters.

Operations

A portion of the Company’s labor and operations is situated outside of the United States in India and other locations. The carrying value of long-lived assets that are situated outside of the United States is approximately $34.4 million and $26.2 million as of December 31, 2018 and 2017, respectively

Foreign Currency Translation

The functional currency for the Company’s production operations located in India, Philippines, China, and Mexico is the United States dollar. Included in other expense as “Sundry expense (income), net” in the consolidated statements of operations are net exchange gains of $1.2 million for the year ended December 31, 2018 and losses of $1.4 million, and $0.2 million for the years ended December 31, 2017 and 2016, respectively.

The Company has determined all other international subsidiaries’ functional currency is the local currency. These assets and liabilities are translated at exchange rates in effect at the balance sheet date while income and expense amounts are translated at average exchange rates during the period. The resulting foreign currency translation adjustments are disclosed as a separate component of other comprehensive loss.

Beneficial Conversion Feature

The Company's Series A Perpetual Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”) contains a beneficial conversion feature, which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. The Company recognized the beneficial conversion feature by allocating the intrinsic value of the conversion option, which is the number of shares of Common Stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of Common Stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the Series A Preferred Stock. As a result of the occurrence of events meeting the definition of a “Fundamental Change” as defined in the Certificate of Designations, Preferences, Rights and Limitations of Series A Perpetual Convertible Preferred Stock of the Company during the period, the Company recognized the entire dividend equivalent of $16.4 million as of December 31, 2017. There was no dividend equivalent recognized in 2018.

Net Loss per Share

Earnings per share (“EPS”) is computed by dividing net loss available to holders of the Company’s Common Stock by the weighted average number of shares of Common Stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to the potential dilution that could occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock, using the more dilutive of the two-class method or if-converted method in periods of earnings. The two class method is an earnings allocation method that determines earnings per share for Common Stock and participating securities. As the Company experienced net losses for the periods presented, the impact of participating Series A Preferred Stock was calculated based on the if-converted method. Diluted EPS excludes all dilutive potential of shares of Common Stock if their effect is anti-dilutive.

For the year ended December 31, 2018 shares of the Company’s Series A Convertible Preferred Stock (“Series A Preferred Stock”), if converted would have resulted in an additional 5,586,344 shares of common stock outstanding, but were not included in the computation of diluted loss per share as their effects were anti-dilutive.

The Company has not included the effect of 35,000,000 warrants sold in the Quinpario Initial Public Offering (“IPO”) in the calculation of net income (loss) per share. Warrants are considered anti-dilutive and excluded when the exercise price exceeds the average market value of the Company’s Common Stock price during the applicable period.

The components of basic and diluted EPS are as follows:


	Year Ended December 31,
	2018		2017		2016
Net loss attributable to common stockholders (A)	$	(166,172)	$	(223,149)	$	(48,103)
Weighted average common shares outstanding - basic and diluted (B)		152,343,823		107,068,262		64,024,557
Loss Per Share:
Basic and diluted (A/B)	$	(1.09)	$	(2.08)	$	(0.75)

Business Combinations

The Company includes the results of operations of the businesses acquired as of the respective dates of acquisition. The Company allocates the fair value of the purchase price of acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill.

Fair Value Measurements

The Company records the fair value of assets and liabilities in accordance with ASC 820, Fair Value Measurement (“ASC 820”). ASC 820 defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.

In addition to defining fair value, ASC 820 expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels, which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.

Level 3 — unobservable inputs reflecting Management’s own assumptions about the inputs used in pricing the asset or liability at fair value.

Refer to Note 13 — Fair Value Measurement for further discussion.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents and trade receivables. The Company maintains its cash and cash equivalents and certain other financial instruments with highly rated financial institutions and limits the amount of credit exposure with any one financial institution. From time to time, the Company assesses the credit worthiness of its customers. Credit risk on trade receivables is minimized because of the large number of entities comprising the Company’s client base and their dispersion across many industries and geographic areas. The Company generally has not experienced any material losses related to receivables from any individual customer or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable, net. The Company does not have any significant customers that account for 10% or more of the total consolidated revenues

Recently Adopted Accounting Pronouncements

Effective January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) no. 2014-09, Revenue from Contracts with Customers (ASC 606). Under ASU 2014-09, revenue is recognized based on a five-step model. The core principle of the model is that revenue will be recognized when the transfer of promised goods or services to customers is made in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard using the modified retrospective approach applied to those contracts that were not completed as of January 1, 2018. The results for the reporting period beginning after January 1, 2018 are presented in accordance with the new standard, although historical information has not been restated and continues to be reported under the accounting standards and policies in effect for those periods. The adoption of ASC 606 did not have a material impact on the Company's financial position, results of operations and cash flows as of or for the period ended December 31, 2018, and we expect the impact of the adoption of the new standard will be immaterial to our results of operations on an ongoing basis. The cumulative effect of accounting change recognized was $1.4 million recorded as an increase to beginning balance of accumulated deficit, and a corresponding reduction to Accounts Receivable, net. See Note 3 for additional disclosure.

Effective January 1, 2018, the Company adopted ASU no. 2016-15, (Topic 230): Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which adds or clarifies guidance on the presentation and classification of eight specific types of cash receipts and cash payments in the statement of cash flows such as debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees, with the intent of reducing diversity in practice. We applied the guidance retrospectively to all periods presented. Exela reclassified a loss on extinguishment of debt from operating activities to financing activities in the third quarter of 2017 in the currently presented financial statements ended December 31, 2018. The adoption had no impact on the Company's financial position, results of operations, and net cash flows for the period ended December 31, 2018.

Effective January 1, 2018, the Company adopted ASU no. 2016-18, (Topic 230): Restricted Cash. Statement of Cash Flows: Restricted Cash. The ASU addresses diversity in practice that exists in the classification and presentation of changes in restricted cash and requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. We applied the guidance retrospectively to all periods presented. As a result of adopting the ASU no. 2016-18, restricted cash is included in the balances of restricted cash, cash and cash equivalents presented in the Statement of Cash Flows for the year ended December 31, 2018, 2017, and 2016. Adopting the standard increased the net change in cash and cash equivalents, which is reflected within operating cash flows, by $16.6 million and $3.5 million for the year ended December 31, 2017 and 2016. Total Cash and cash equivalents for the Beginning of period and End of period December 31, 2017 increased $25.9 million and $42.5 million due to the inclusion of restricted cash. Total Cash and cash equivalents for the Beginning of period and End of period December 31, 2016 increased $22.4 million and $25.9 million due to the inclusion of restricted cash.

Effective October 1, 2017 the Company adopted ASU 2017-04, (Topic 350) Intangibles Goodwill and Other – Simplifying the Test for Goodwill Impairment. Previous guidance required an entity that has not elected the private company alternative for goodwill to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. To address concerns over the cost and complexity of the two-step goodwill impairment test, the amendments in this Update remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment.

Effective January 1, 2018, the Company adopted ASU no. 2017-07, (Topic 715): Compensation Retirement Benefit; Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amendments to this ASU require the service cost component of net periodic benefit cost be reported in the same income statement line or lines as other compensation costs for employees. The other components of net periodic benefit cost are required to be reported separately from service costs and outside a subtotal of income from operations. The new standard requires retrospective application and allows a practical expedient that permits an employer to use the amounts disclosed in its pension plan footnote for the prior comparative periods as the estimation basis for applying the retrospective presentation. Adoption of the standard resulted in only the service cost being recorded to Cost of revenue.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU no. 2016-02, Leases (842) This ASU increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Since the issuance of the original standard, the FASB has issued a subsequent update that provides a practical expedient for land easements (ASU 2018-01). The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and early application is permitted. The standard becomes effective for the Company January 1, 2019. The Company will use a modified retrospective adoption approach in the period of adoption with the effective date as its date of initial application on January 1, 2019, in its first reporting on adoption. We have elected the following practical expedients permitted under the transition guidance within the new standard.

Not to record leases with an initial term of 12 months on the balance sheet;

Not to reassess the (1) definition of a lease, (2) lease classification, and (3) initial direct costs for existing leases during transition.

Upon adoption, the Company expects to record a material amount of right-of-use assets before deferred taxes, representing the present value of future lease payments under leases with terms of greater than twelve months. The Company also expects to record corresponding liabilities for the same amount. The Company does not expect to make any material cumulative adjustment to the opening balance of equity.

In June 2016, the FASB issued ASU no. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to replace the incurred loss impairment methodology under current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company will be required to use a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The standard will be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Adoption of the standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part I of this ASU addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this ASU addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity, because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests. The amendments in Part II of this update do not have an accounting effect. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The company is adopting this standard in the first quarter of fiscal 2019 and is currently evaluating the impact that adopting this standard will have on the consolidated financial statements.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815); Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU better align the risk management activities and financial reporting for these hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The company is adopting this standard in the first quarter of fiscal 2019 and is currently evaluating the impact that adopting this standard will have on the consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU address a narrow-scope financial reporting issue related to the tax effects that may become “stranded” in accumulated other comprehensive income (AOCI) as a result of the Tax Cuts and Jobs Act (TCJA). An entity may elect to reclassify the income tax effects of the TCJA on items within AOCI to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The company is adopting this standard in the first quarter of fiscal 2019 and is currently evaluating the impact that adopting this standard will have on the consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting to amend the accounting for share-based payment awards issued to nonemployees. Under the revised guidance, the accounting for awards issued to nonemployees will be similar to the model for employee awards, except that: the ASU allows an entity to elect on an award-by-award basis to use the contractual term as the expected term assumption in the option pricing model, and the cost of the grant is recognized in the same period(s) and in the same manner as if the grantor had paid cash. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The company is adopting this standard in the first quarter of fiscal 2019 and is currently evaluating the impact that adopting this standard will have on the consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles, Goodwill, and Other - Internal Use Software (Subtopic 350-40): Customer's accounting for implementation costs incurred in a Cloud Computing Arrangement that is a service contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments also require the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

Business Combinations

12 Months Ended

Dec. 31, 2018

Business Combinations

Business Combinations

3. Business Combinations

Novitex

On July 12, 2017, the Company consummated its business combination with SourceHOV and Novitex pursuant to the Business Combination Agreement and Consent, Waiver and Amendment to the Business Combination Agreement, dated February 21, 2017 and June 15, 2017, respectively. In connection with the Novitex Business Combination, the Company acquired debt facilities and issued notes totaling $1.4 billion (refer to Note 9 – Long Term Debt and Credit Facilities). Proceeds from the acquired debt were used to refinance the existing debt of SourceHOV, settle the outstanding debt of Novitex, and pay fees and expenses incurred in connection with the Novitex Business Combination. Immediately following the Novitex Business Combination, there were 146,910,648 shares of Common Stock, 9,194,233 shares of Series A Preferred Stock, and 35,000,000 warrants outstanding. Refer to Note 15 – Stockholders’ Equity.

Under ASC 805, Business Combinations, SourceHOV was deemed the accounting acquirer based on the following predominate factors: its former owners have the largest portion of voting rights in the Company, the board and Management has more individuals coming from SourceHOV than either Quinpario or Novitex, SourceHOV was the largest entity by revenue and by assets, and the headquarters was moved to the SourceHOV headquarters location.

The Company acquired 100% of the equity of Novitex pursuant to the Novitex Business Combination Agreement by issuing 30,600,000 shares of Common Stock of Exela to Novitex Parent, L.P., the sole stockholder of Novitex. Total value of equity for the transaction was $244.8 million. Additionally, as noted, the Company used proceeds from acquired debt to settle the outstanding debt of Novitex in the amount of $420.5 million, and pay transaction related costs and interest on behalf of Novitex in the amount of $10.3 million and $1.0 million, respectively, which was accounted for as part of consideration.

The acquired assets and assumed liabilities of Novitex were recorded at their estimated fair values. The purchase price allocation for the Novitex business combination is preliminary and subject to change within the respective measurement period which will not extend beyond one year from the acquisition date. Measurement period adjustments will be recognized in the reporting period in which the adjustment amounts are determined.

The following table summarizes the consideration paid for Novitex and the fair value of the assets acquired and liabilities assumed at the acquisition date on July 12, 2017. Certain estimated values for the acquisition, including goodwill, intangible assets, property, plant and equipment, and deferred income taxes, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. The purchase price was allocated based on information available at acquisition date. During the fourth quarter of 2017, the Company recorded measurement period adjustments which increased goodwill by $0.9 million, primarily related to updated information related to income taxes.


Assets acquired:
Cash and equivalents	$	8,428
Accounts receivable		87,474
Inventory		1,245
Prepaid expenses & other		13,974
Property, plant and equipment, net		60,657
Identifiable intangible assets, net		251,060
Deferred charges and other assets		2,723
Other noncurrent assets		93
Goodwill		406,060
Total identifiable assets acquired	$	831,714

Liabilities assumed:
Accounts payable		(29,444)
Short-term borrowings and current portion of long-term debt		(11,335)
Accrued liabilities		(30,432)
Advanced billings and customer deposits		(18,926)
Long term debt		(15,704)
Deferred taxes		(46,991)
Other liabilities		(2,226)
Total liabilities assumed	$	(155,058)
Total consideration	$	676,656

The identifiable intangible assets include customer relationships, non-compete agreements, internally developed software, and a trademark. Customer relationships and non-compete agreements were valued using the Income Approach, specifically the Multi-Period Excess Earnings method. The trademark was valued using the Income Approach, specifically the Relief-from-Royalty method. Internally developed software was valued based on costs incurred related to Connect Platform. All of these intangibles acquired represent a Level 3 measurement as they are based on unobservable inputs reflecting the Company’s management’s own assumptions about the inputs used in pricing the asset or liability at fair value.


	Weighted Average
	Useful Life
	(in years)	Fair value
Trademark - Novitex	9.5	$	18,000
Customer relationships	16.0		230,000
Internally developed software - Connect Platform	5.0		1,710
Non-compete agreements	1.0		1,350
		$	251,060

As of the date of the Novitex Business Combination, the weighted-average useful life of total identifiable intangible assets acquired in the Novitex Business Combination, excluding goodwill, is 15.4 years.

The Company expects to realize revenue synergies, leverage, brand awareness, stronger margins, greater free cash flow generation, and expand the existing Novitex sales channels, and utilize the existing workforce. The Company also anticipates opportunities for growth through the ability to leverage additional future solutions and capabilities. These factors, among others, contributed to a purchase price in excess of the estimated fair value of Novitex’s identifiable net assets assumed, and as a result, the Company has recorded goodwill in connection with this acquisition. The Company engaged a third party valuation firm to aid management in its analyses of the fair value of the assets and liabilities. All estimates, key assumptions, and forecasts were either provided by or reviewed by the Company. Approximately $14.0 million of the goodwill recorded was tax deductible, which was carried over from the tax basis of the seller. For the year ended December 31, 2018, $677.5 million of revenue and $45.4 million of net loss are included in consolidated revenues and net loss, respectively, for Novitex. These results are included in the ITPS segment.

Transaction Costs

The Company incurred approximately $60.0 million in advisory, legal, accounting and management fees in conjunction with the Novitex Business Combination as of December 31, 2017, excluding contract cancellation and advising fees to HGM of $23.0 million described in Note 16. Additionally, $7.6 million was incurred related to equity issuance costs and $40.9 million was incurred in debt issuance costs.

Restructuring Charges

In February 2017, management performed a strategic review of human resources at Novitex for the purpose of assessing the business need for their employment and for the purpose of quantifying the synergies resulting from the acquisition. As a result, in July 2017, the Company communicated the termination of certain executives and non-executive Novitex employees.

The Company determined that costs associated with termination benefits should be accounted for separately from the acquisition, as a post-combination expense of the combined entity because the expense was incurred for the benefit of the combined entity. As of July 12, 2017, the Company recorded severance expense in the amount of $4.6 million related to the impacted executives and $0.1 million related to other terminations in the statement of operations. Severance expense was $0.4 million for the year ended December 31, 2018.

Asterion

On April 10, 2018, Exela completed the acquisition of Asterion International Group (“Asterion,” the “Asterion Business Combination”), a well-established provider of technology driven business process outsourcing, document management and business process automation across Europe. The purchase price was approximately $19.5 million. The acquisition comes with minimal customer overlap and is strategic to expanding Exela’s European business.

The acquired assets and assumed liabilities of Asterion were recorded at their estimated fair values. The purchase price allocation for Asterion is preliminary for estimates for items such as income taxes and subject to change within the respective measurement period, which will not extend beyond one year from the acquisition date. Measurement period adjustments will be recognized in the reporting period in which the adjustment amounts are determined.

The following table summarizes the consideration paid for Asterion and the preliminary fair value of the assets acquired and liabilities assumed at the acquisition date on April 10, 2018:


Assets Acquired:
Cash and cash equivalents	$	5,595
Accounts receivable		25,740
Other current assets		2,282
Inventories, net		1,137
Property, plant, and equipment, net		4,747
Deferred income tax assets		6,316
Other noncurrent assets		522
Intangible assets, net		3,525
Goodwill		1,493
Total identifiable assets acquired	$	51,357
Liabilities Assumed:
Accounts payable	$	(5,596)
Income tax payable		(5)
Accrued liabilities		(6,593)
Accrued compensation and benefits		(7,079)
Deferred revenue		(880)
Current portion of long term debt		(994)
Customer deposits		(462)
Pension liability		(7,135)
Other long-term liabilities		(1,324)
Deferred income tax liabilities		(1,171)
Capital lease obligations, net of current maturities		(650)
Total liabilities assumed	$	(31,889)
Total Consideration	$	19,468

The majority of identifiable intangible assets consisted of customer relationships. Customer relationships were valued using the Income Approach, specifically the Multi-Period Excess Earnings method. This intangible acquired represents a Level 3 measurement as it is based on unobservable inputs reflecting Management’s own assumptions about the inputs used in pricing the asset at fair value.


	Weighted Average
	Useful Life (in years)	Fair Value
Customer Relationships	9.5	$	3,516

Through the acquisition of Asterion, we expect to leverage brand awareness, strengthen margins, and expand the existing Asterion sales channels. These factors, among others, contributed to a purchase price in excess of the estimated fair value of Asterion’s identifiable net assets assumed, and as a result, the Company has recorded goodwill in connection with this acquisition. For the year ended December 31, 2018 Exela recognized $59.7 million in revenue related to Asterion in the Consolidated Statement of Operations.

Accounts Receivable

12 Months Ended

Dec. 31, 2018

Accounts Receivable.

Accounts Receivable

4. Accounts Receivable

Accounts receivable, net consist of the following:


	December 31,
	2018		2017
Billed receivables	$	226,252	$	199,201
Unbilled receivables		39,498		28,449
Other		9,421		5,779
Less: Allowance for doubtful accounts		(4,359)		(3,725)
	$	270,812	$	229,704

Unbilled receivables represent balances recognized as revenue that have not been billed to the customer. The Company’s allowance for doubtful accounts is based on a policy developed by historical experience and management judgment. Adjustments to the allowance for doubtful accounts may occur based on market conditions or specific client circumstances.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2018

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

5. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:


	December 31,
	2018		2017
Prepaids	$	24,790	$	22,869
Deposits		225		1,727
	$	25,015	$	24,596

Property, Plant and Equipment, Net

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment, Net

Property, Plant and Equipment, Net

6. Property, Plant and Equipment, Net

Property, plant, and equipment, which include assets recorded under capital leases, are stated at cost less accumulated depreciation, and amortization, and consist of the following:


	Estimated
	Useful Lives	December 31,
	(in Years)	2018		2017
Land	N/A	$	6,888	$	7,744
Buildings and improvements	7 - 40		20,518		18,726
Leasehold improvements	3 - 12		56,589		51,257
Vehicles	5 - 7		717		870
Machinery and equipment	5 - 15		62,746		62,249
Computer equipment and software	3 - 8		130,862		116,580
Furniture and fixtures	5 - 15		8,724		7,136
			287,046		264,562
Less: Accumulated depreciation and amortization			(154,060)		(131,654)
Property, plant and equipment, net		$	132,986	$	132,908

Depreciation expense related to property, plant and equipment was $43.1 million, $31.7 million, and $22.8 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Intangibles Assets and Goodwill

12 Months Ended

Dec. 31, 2018

Intangibles Assets and Goodwill

Intangibles Assets and Goodwill

7. Intangible Assets and Goodwill

Intangibles

Intangible assets are stated at cost or acquisition-date fair value less amortization and impairment and consists of the following:


	December 31, 2018
	Gross Carrying				Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	507,905	$	(190,666)	$	317,239
Developed technology		89,053		(85,967)		3,086
Trade names (b)		9,400		(3,100)		6,300
Outsource contract costs		46,342		(27,719)		18,623
Internally developed software		36,820		(6,278)		30,542
Trademarks		23,379		(23,370)		9
Non compete agreements		1,350		(1,350)		—
Assembled workforce		4,473		—		4,473
Purchased software		26,749		—		26,749
Intangibles, net	$	745,471	$	(338,450)	$	407,021


	December 31, 2017
	Gross Carrying				Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	504,643	$	(135,962)	$	368,681
Developed technology		89,076		(77,103)		11,973
Trade names (c)		13,100		—		13,100
Outsource contract costs		40,456		(17,526)		22,930
Internally developed software		28,254		(2,597)		25,657
Trademarks		23,370		(1,446)		21,924
Non compete agreements		1,350		(631)		719
Intangibles, net	$	700,249	$	(235,265)	$	464,984

(a)

Amounts include intangibles acquired in the Novitex and Asterion Business Combination. See Note 3-Business Combinations.

(b)

The carrying amount of trade names for 2018 is net of accumulated impairment losses of $43.1 million, of which $3.7 million was recognized in 2018.

(c)

The carrying amount of trade names for 2017 is net of accumulated impairment losses of $39.4 million, of which $39.4 million was recognized in 2017.

In connection with the completion of the annual impairment test as of October 1, 2018, the Company recorded an impairment charge to goodwill and trade names of $44.4 million, including taxes, and $3.7 million. The impairment charges are included within Impairment of intangible assets in the consolidated statement of operations for the year ended December 31, 2018.

In connection with the completion of the annual impairment test as of October 1, 2017, the Company recorded an impairment charge to trade names of $6.3 million. Subsequent to the 2017 annual impairment test, the Company implemented a one year strategy to transition to a unified Exela brand beginning in 2018. As a result, the Company performed a quantitative analysis of its tradenames as of December 31, 2017, and recorded an additional impairment charge of $33.0 million. As part of the impairment analysis completed on December 31, 2017, the Company reconsidered the estimated useful lives of the trademarks, and reduced the estimated useful life to one year. The fair value of the tradenames was determined using the Relief from Royalty Method of the Income Approach. The impairment charges resulted in decreases to the carrying values of the ITPS, HS, and LLPS trade names of $23.1 million, $9.6 million, and $6.6 million, respectively, and are included within Impairment of intangible assets in the consolidated statement of operations for the year ended December 31, 2017.

Aggregate amortization expense related to intangibles was $102.3 million, $67.2 million, and $56.8 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Estimated intangibles amortization expense for the next five years and thereafter consists of the following:


	Estimated
	Amortization
	Expense
2019	$	64,685
2020		58,363
2021		50,077
2022		44,687
2023		35,929
Thereafter		147,107
	$	400,848

Goodwill

Goodwill by reporting segment consists of the following:


									Currency
									translation
	Goodwill		Additions			Reductions			adjustments		Goodwill(a)
ITPS	$	159,394	$	406,522	(c)	$	—		$	299	$	566,215
HS		86,786		—			—			—		86,786
LLPS		127,111		—			(32,787)	(b)		—		94,324
Balance as of December 31, 2017	$	373,291	$	406,522		$	(32,787)		$	299	$	747,325
ITPS	$	566,215	$	5,580	(d)	$	—		$	(220)	$	571,575
HS		86,786		—			—			—		86,786
LLPS		94,324		—			(44,427)	(e)		—		49,897
Balance as of December 31, 2018	$	747,325	$	5,580		$	(44,427)		$	(220)	$	708,258

(a)

The carrying amount of goodwill for all periods presented is net of accumulated impairment losses of $137.9 million.

(b)

The reduction in goodwill is due to $30.1 million for impairment recorded in the fourth quarter of 2017 and $2.7 million for the sale of Meridian Consulting Group, LLC in the first quarter of 2017.

(c)

Addition to goodwill is primarily the result of the Novitex Business Combination (Refer to note 4), which resulted in $406.1 million of goodwill.

(d)

Addition to goodwill due to the Asterion Business Combination (Refer to note 4) and immaterial acquisitions in the third and fourth quarter of 2018.

(e)

The reduction in goodwill is due to $44.4 million, including taxes, for impairment recorded in the fourth quarter of 2018.

The Company recorded $406.1 million of goodwill as a result of the allocation of the purchase price between assets acquired and liabilities assumed in the Novitex Business Combination. Of the total amount of goodwill recorded, $47.0 million of goodwill is associated with net deferred tax liabilities recorded in connection with amortizable intangible assets acquired in the Novitex Business Combination. For the years ended December 31, 2018 and 2017, due to a decline in revenues and operations for the LLPS reporting unit, the Company recorded an impairment charge of $44.4 million, including taxes, and $30.1 million to the reporting unit's goodwill and trade names.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accrued Liabilities and Other Long-Term Liabilities

12 Months Ended

Dec. 31, 2018

Accrued Liabilities and Other Long-Term Liabilities

Accrued Liabilities and Other Long-Term Liabilities

8. Accrued Liabilities and Other Long-Term Liabilities

Accrued liabilities consist of the following:


	December 31,
	2018		2017
Accrued taxes (exclusive of income taxes)	$	10,606	$	9,310
Accrued lease exit obligations		1,694		2,207
Accrued professional and legal fees		30,522		16,529
Deferred rent		1,421		1,204
Accrued interest		49,071		55,102
Accrued transaction costs		2,250		18,232
Other accruals		19,515		1,901
	$	115,079	$	104,485

Other Long-term liabilities consist of the following:


	December 31,
	2018		2017
Deferred revenue	$	432	$	424
Deferred rent		8,333		7,112
Accrued lease exit obligations		369		1,144
Accrued compensation expense		2,173		2,776
Other		4,093		3,248
	$	15,400	$	14,704

Long-Term Debt and Credit Facilities

12 Months Ended

Dec. 31, 2018

Long-Term Debt and Credit Facilities

Long-Term Debt and Credit Facilities

9. Long-Term Debt and Credit Facilities

Senior Secured Notes

Upon the closing of the Novitex Business Combination on July 12, 2017, the Company issued $1.0 billion in aggregate principal amount of 10.0% First Priority Senior Secured Notes due 2023 (the “Notes”). The Notes are guaranteed by certain subsidiaries of the Company. The Notes bear interest at a rate of 10.0% per year. The Company pays interest on the Notes on January 15 and July 15 of each year, commencing on January 15, 2018. The Notes will mature on July 15, 2023.

Debt Refinancing

Upon the closing of the Novitex Business Combination on July 12, 2017, the $1,050.7 million outstanding balance of SourceHOV related debt facilities and the $420.5 million outstanding balance of Novitex related debt facilities were paid off using proceeds from the Credit Agreement and issuance of the Notes.

In accordance with ASC 470 – Debt – Modifications and Extinguishments, as a result of certain lenders that participated in SourceHOV’s debt structure prior to the refinancing and the Company’s debt structure after the refinancing, it was determined that a portion of the refinancing of SourceHOV’s first lien secured term loan and second lien secured term loan (“Original SourceHOV Term Loans”) would be accounted for as a debt modification, and the remaining would be accounted for as an extinguishment. The Company incurred $28.9 million in debt issuance costs related to the new secured term loan, of which $2.8 million was third party costs. The Company recorded $7.0 million of original issue discount as part of the refinancing. The Company expensed $1.1 million of costs related to the modified debt and capitalized the remaining $27.8 million. The Company wrote off $30.5 million of the unamortized issuance costs and discounts associated with the retirement of SourceHOV’s credit facilities. The Company retained approximately $3.3 million and $3.5 million of debt issuance costs and debt discounts, respectively, associated with the modified portion of the Original SourceHOV Term Loans that will be amortized over the term of the new term loan, which are presented on the balance sheet as a contra-debt liability. The Company incurred a $5.0 million prepayment penalty related to the Original SourceHOV Term Loans that was recorded as a loss on extinguishment of debt.

The proceeds of the new debt financing were also used to pay fees and expenses incurred in connection with the Novitex Business Combination and for general corporate purposes.

Senior Credit Facilities

On July 12, 2017, the Company entered into a First Lien Credit Agreement with Royal Bank of Canada, Credit Suisse AG, Cayman Islands Branch, Natixis, New York Branch and KKR Corporate Lending LLC (the “Credit Agreement”) providing Exela Intermediate LLC, a wholly owned subsidiary of the Company, upon the terms and subject to the conditions set forth in the Credit Agreement, (i) a $350.0 million senior secured term loan maturing July 12, 2023 with an original issue discount (“OID”) of $7.0 million, and (ii) a $100.0 million senior secured revolving facility maturing July 12, 2022, none of which is currently drawn. As of December 31, 2018 and 2017 the Company had outstanding irrevocable letters of credit totaling $20.6 million and $20.9 million, respectively, under the senior secured revolving facility.

The Credit Agreement provides for the following interest rates for borrowings under the senior secured term facility and senior secured revolving facility: at the Company’s option, either (1) an adjusted LIBOR, subject to a 1.0% floor in the case of term loans, or (2) a base rate, in each case plus an applicable margin. The initial applicable margin for the senior secured term facility is 7.5% with respect to LIBOR borrowings and 6.5% with respect to base rate borrowings. The initial applicable margin for the senior secured revolving facility is 7.0% with respect to LIBOR borrowings and 6.0% with respect to base rate borrowings. The applicable margin for borrowings under the senior secured revolving facility is subject to step-downs based on leverage ratios. The senior secured term loan is subject to amortization payments, commencing on the last day of the first full fiscal quarter of the Company following the closing date, of 0.6% of the aggregate principal amount for each of the first eight payments and 1.3% of the aggregate principal amount for payments thereafter, with any balance due at maturity.

Term Loan Repricing

On July 13, 2018, Exela successfully repriced the $343.4 million of term loans outstanding under its senior secured credit facilities (the “Repricing”). The Repricing was accomplished pursuant to a First Amendment to the First Lien Credit Agreement (the “First Amendment”), dated as of July 13, 2018, by and among the Company’s subsidiaries Exela Intermediate Holdings LLC, Exela Intermediate, LLC, each “Subsidiary Loan Party” listed on the signature pages thereto, Royal Bank of Canada, as administrative agent, and each of the lenders party thereto, whereby the Company borrowed $343.4 million of refinancing term loans (the “Repricing Term Loans”) to refinance the Company’s existing senior secured term loans.

In accordance with ASC 470 – Debt – Modifications and Extinguishments, as a result of certain lenders that participated in Exela’s debt structure prior to the Term Loan Repricing and the Company’s debt structure after the refinancing, it was determined that a portion of the refinancing of Exela’s senior secured credit facilities would be accounted for as a debt modification, and the remaining would be accounted for as an extinguishment. The company incurred $1.0 million in new debt issuance costs related to the refinancing, of which $1.0 million was expensed pursuant to modification accounting. The proportion of debt that was extinguished resulted in a write off of previously recognized debt issue costs of $0.1 million. Additionally, for the new lenders who exceeded the 10% test, less than $0.1 million was recorded as additional debt issue costs. All unamortized costs and discounts will be amortized over the life of the new term loan using the effective interest rate of the term loan.

The Repricing Term Loans will bear interest at a rate per annum of, at the Company’s option, either (a) a LIBOR rate determined by reference to the costs of funds for Eurodollar deposits for the interest period relevant to such borrowing, adjusted for certain additional costs, subject to a 1.00% floor, or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the one-month adjusted LIBOR plus 1.00%, in each case plus an applicable margin of 6.50% for LIBOR loans and 5.50% for base rate loans. The interest rates applicable to the Repricing Term Loans are 100 basis points lower than the interest rates applicable to the existing senior secured term loans that were incurred on July 12, 2017 pursuant to the Credit Agreement. The Repricing Term Loans will mature on July 12, 2023, the same maturity date as the existing senior secured term loans.

Incremental Term Loan

On July 13, 2018, the Company successfully borrowed an additional $30.0 million pursuant to incremental term loans (the “Incremental Term Loans”) under the First Amendment. The proceeds of the Incremental Term Loans may be used by the Company for general corporate purposes and to pay fees and expenses in connection with the First Amendment. The interest rates applicable to the Incremental Term Loans are the same as those for the Repricing Term Loans.

The Company may voluntarily repay the Repricing Term Loans and the Incremental Term Loans (collectively, the “Term Loans”) at any time, without prepayment premium or penalty, except in connection with a repricing event as described in the following sentence, subject to customary “breakage” costs with respect to LIBOR rate loans. Any refinancing of the Term Loans through the issuance of certain debt or any repricing amendment, in either case, that constitutes a “repricing event” applicable to the Term Loans resulting in a lower yield occurring at any time during the first six months after July 13, 2018 will be accompanied by a 1.00% prepayment premium or fee, as applicable.

Other than as described above, the terms, conditions and covenants applicable to the Repricing Term Loans and the Incremental Term Loans are consistent with the terms, conditions and covenants that were applicable to the Existing Term Loans under the First Lien Credit. The Repricing and issuance of the Incremental Term Loans resulted in a partial debt extinguishment, for which Exela recognized $1.1 million in debt extinguishment costs in the third quarter of 2018.

Long- Term Debt Outstanding

As of December 31, 2018 and 2017, the following long-term debt instruments were outstanding:


	December 31,
	2018		2017
Other (a)	$	25,321		17,534
First lien credit agreement (b)		335,896		308,825
Senior secured notes (c)		974,443		970,300
Total debt		1,335,660		1,296,659
Less: Current portion of long-term debt		(29,237)		(20,565)
Long-term debt, net of current maturities	$	1,306,423	$	1,276,094

(a)

Other debt represents outstanding loan balances associated with various hardware, software purchases, and maintenance along with loans entered into by subsidiaries of the Company.

(b)

Net of unamortized original issue discount and debt issuance costs of $8.3 million and $24.5 million as of December 31, 2018 and $9.9 million and $29.1 million as of December 31, 2017.

(c)

Net of unamortized original issue discount and debt issuance costs of $18.2 million and $7.3 million as of December 31, 2018 and $21.2 million and $8.5 million as of December 31, 2017.

As of December 31, 2018, maturities of long-term debt are as follows:


	Maturity
2019	$	29,237
2020		23,156
2021		22,824
2022		19,084
2023		1,299,700
Thereafter		—
Total long-term debt		1,394,001
Less: Unamortized discount and debt issuance costs		(58,341)
	$	1,335,660

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Taxes

Income Taxes

10. Income Taxes

The Company provides for income taxes using an asset and liability approach, under which deferred income taxes are provided based upon enacted tax laws and rates applicable to periods in which the taxes become payable.

For financial reporting purposes, income/ (loss) before income taxes includes the following components:


	Year Ended December 31,
	2018		2017		2016
United States	$	(173,506)	$	(279,822)	$	(71,171)
Foreign		19,396		15,291		11,281
	$	(154,110)	$	(264,531)	$	(59,890)

The provision for federal, state, and foreign income taxes consists of the following:


	Year Ended December 31,
	2018		2017		2016
Federal
Current	$	1,308	$	(722)	$	—
Deferred		(1,998)		(59,425)		(8,961)
State
Current		311		1,405		830
Deferred		2,330		(7,176)		(2,740)
Foreign
Current		3,435		5,794		3,112
Deferred		3,021		(122)		(4,028)
Income Tax Expense (Benefit)	$	8,407	$	(60,246)	$	(11,787)

The differences between income taxes expected by applying the U.S. federal statutory tax rate of 21% and the amount of income taxes provided are as follows:


	Year Ended December 31,
	2018		2017		2016
Tax at statutory rate	$	(32,363)	$	(92,586)	$	(20,962)
Add (deduct)
State income taxes		(6,698)		(4,219)		1,483
Foreign income taxes		1,235		(565)		(1,356)
Nondeductible transaction costs		—		27,311		—
Nondeductible goodwill impairment		9,002		10,497		—
Permanent differences		940		438		4,405
Changes in valuation allowance		20,248		(7,285)		6,075
Unremitted earnings		4,735		—		1,686
Changes in U.S tax rates		—		(4,784)		—
Deemed mandatory repatriation		—		7,441		—
GILTI Inclusion		2,289		—		—
Expiration of tax attributes		8,354		—		—
Other		665		3,506		(3,118)
Income Tax Expense (Benefit)	$	8,407	$	(60,246)	$	(11,787)

The Tax Cuts and Jobs Act (“TCJA”) was signed by the President of the United States and enacted into law on December 22, 2017. This overhaul of the US tax law made a number of substantial changes, including the reduction of the corporate tax rate from 35% to 21%, establishing a dividends received deduction for dividends paid by foreign subsidiaries to the US, elimination or limitation of certain deductions (interest, domestic production activities and executive compensation), imposing a mandatory tax on previously unrepatriated earnings accumulated offshore since 1986 and establishing global minimum income tax and base erosion tax provisions related to offshore activities and affiliated party payments.

Accounting Standards Codification Topic 740, Income Taxes (“ASC 740”) requires companies to account for the tax effects of changes in income tax rates and laws in the period in which legislation is enacted (December 22, 2017). ASC 740 does not specifically address accounting and disclosure guidance in connection with the income tax effects of the TCJA. Consequently, on December 22, 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), to address the application of ASC 740 in the reporting period that includes the date the TCJA was enacted. SAB 118 allows companies a reasonable period of time to complete the accounting for the income tax effects of the TCJA. The measurement period ends when the company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year.

During the year ended December 31, 2018, the Company has completed its accounting for the income tax effects of the TCJA in accordance with its understanding of the TCJA and the guidance available as of the balance sheet date. The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the Company’s deferred tax assets and liabilities were remeasured to reflect the reduction in the U.S. corporate income tax rate from 35% to 21%, resulting in a $9.4 million provisional tax benefit to Continuing Operations for the year ended December 31, 2017. The tax return for the year ended December 31, 2017 was completed during the SAB 118 measurement period and the Company determined the impact on the remeasurement of deferred tax assets and liabilities to be complete. The Company recognized a measurement period increase to income tax expense of $3.7 million to Continuing Operations related to the remeasurement of deferred tax assets and liabilities for the year ended December 31, 2018.

The Company recognized provisional income tax expense of $9.1 million due on estimated earnings and profits ("E&P") subject to the deemed mandatory repatriation for the year ended December 31, 2017. However, a payable was not recorded as the Company's net operating loss carryforward at December 31, 2017 was utilized to offset the mandatory repatriation tax. On August 1, 2018, the U.S. Treasury Department released proposed regulations addressing the one-time transition tax on undistributed foreign earnings, which was enacted as part of the TCJA. On the basis of revised E&P computations that were completed during the SAB 118 measurement period, the Company has determined the transition tax calculation to be complete. The Company recognized an additional measurement-period adjustment of $2.4 million transition tax which was entirely offset by the Company's net operating loss carryforwards at December 31, 2017.

The TCJA subjects a US shareholder to tax on Global Intangible Low-taxed Income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for GILTI, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected the accounting policy to recognize the tax expense related to GILTI in the year the tax is incurred as a period expense. At December 31, 2018, the Company has provided $2.3 million for tax impacts of GILTI.

Beginning in 2018, the TCJA also subjects a U.S. shareholder of a controlled foreign corporation to current tax on certain payments from corporations subject to US tax to related foreign persons, also referred to as base erosion and anti-abuse tax (BEAT). The BEAT provisions in the Tax Reform Act eliminates the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. The Company has recorded $1.3 million tax expense related to BEAT for the year ended December 31, 2018.

The components of deferred income tax liabilities and assets are as follows:


	Year Ended December 31,
	2018		2017
Deferred income tax liabilities:
Book over tax basis of intangible and fixed assets	$	(94,649)	$	(113,844)
Unremitted foreign earnings		(4,735)		—
Other, net	$	(4,078)	$	(2,684)
Total deferred income tax liabilities		(103,462)		(116,528)

Deferred income tax assets:
Allowance for doubtful accounts and receivable adjustments	$	1,676	$	1,401
Inventory		1,629		1,807
Accrued liabilities		9,260		9,586
Net operating loss and tax credit carryforwards		184,381		196,633
Tax deductible goodwill		3,147		3,862
Disallowed interest deduction		27,005		—
Other, net		16,841		15,518
Total deferred income tax assets	$	243,939	$	228,807

Valuation allowance		(135,465)		(108,622)
Total net deferred income tax assets (liabilities)	$	5,012	$	3,657

Gross deferred tax assets are reduced by valuation allowances to the extent the Company determines it is not more-likely-than-not the deferred tax assets are expected to be realized. At December 31, 2018, the Company recognized $135.5 million of valuation allowances against gross deferred tax assets primarily related to disallowed interest deduction, net operating loss and tax credit carryforwards. Of this amount, approximately $76.2 million and $8.7 million of the total valuation allowance was related to U.S. federal and state limitations on the utilization of net operating loss carryforwards due to numerous changes in ownership, respectively. Approximately $21.8 million and $2.6 million of the total valuation allowance was related to U.S. federal and state disallowed interest deduction pursuant to the TCJA. The remaining $26.2 million of the valuation allowance was related to non-limited U.S. and non-US net operating losses and tax credits that are not expected to be realizable.

The net change during the year in the total valuation allowance was an increase of $26.8 million primarily related to the reduction of net regular deferred tax liability and increase of deferred tax assets related to disallowed interest deduction. The reduction of net deferred tax assets due to the rate revaluation decreased the amount of the valuation allowance by the same amount resulting in no overall net impact to the Company’s income tax provision.

Section 382 of the Internal Revenue Code of 1986, as amended (the Code), limits the amount of U.S. tax attributes (net operating loss and tax credit carryforwards) following a change in ownership. The Company has determined that an ownership change occurred under Section 382 on April 3, 2014 and October 31, 2014 for the Pangea group and on October 31, 2014 for the SourceHOV Holdings group ("2014 Reorganization"). The Section 382 limitations significantly limit the pre-acquisition Pangea net operating losses. Accordingly, upon the October 31, 2014 change in control, most of the historic Pangea federal net operating losses were limited and a valuation allowance has been established against the related deferred tax asset. Following the filing of the October 31, 2014, Pangea federal tax returns and further Section 382 analysis, management finalized the amount of the limitation and as a result, approximately $3.5 million of the valuation allowance was released. Management has concluded that the U.S. tax attributes after Section 382 limitations were applied are more likely than not to be realized. With regard to Pangea's foreign subsidiaries, it was determined that most deferred tax assets are not likely to be realized and valuation allowances have been established. The Section 382 limit that applied to the historic SourceHOV LLC group is greater than the net operating losses and tax credits generated in the predecessor periods. Therefore, no additional valuation allowances were established relating to Section 382 limitations other than the pre-2011 Section 382 limitations that applied.

Included in deferred tax assets are federal, foreign and state net operating loss carryforwards, federal general business credit carryforwards and state tax credit carryforwards due to expire beginning in 2019 through 2038. As of December 31, 2018, the Company has federal and state income tax net operating loss (NOL) carryforwards of $680.2 million and $472.7 million, which will expire at various dates from 2019 through 2038. Such NOL carryforwards expire as follows:


			State and Local
	Federal NOL		NOL
2019 - 2022	$	107,956	$	29,986
2023 - 2027		139,102		79,111
2028 - 2037		433,147		363,616
	$	680,205	$	472,713

As of December 31, 2018, the Company has foreign net operating loss carryforwards of $35.8 million, $4.1 million of which were generated by BancTec Holding N.V. and BancTec B.V., and will expire at various dates from 2021 through 2024, and $0.8 million of which were generated by Exela Poland, and will expire in 2023, and the rest of which can be carried forward indefinitely.

Since the 2014 Reorganization did not result in a new tax basis of assets and liabilities for the Company, some of the goodwill continues to be deductible over the remaining amortization period for tax purposes. At December 31, 2018, approximately $52.3 million of the Company goodwill is tax deductible, $22.8 million of which is carried over from the 2014 Reorganization. Additionally, the Company has tax deductible goodwill of $21.7 million in connection with the TransCentra acquisition, and $7.8 million in connection with the Novitex acquisition. These amounts was related to the tax basis carried over from the seller.

The Company adopted the provision of accounting for uncertainty in income taxes in the Topic of the ASC 740. ASC 740 clarifies the accounting for uncertain tax positions in the Company's financial statements and prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken or expected to be taken on tax returns. The total amount of unrecognized tax benefits at December 31, 2018 is $1.5 million, and if recognized $0.7 million would benefit the effective tax rate. Total accrued interest and penalties recorded on the Consolidated Balance Sheet were $2.3 million and $3.0 million at December 31, 2018 and 2017, respectively. The total amount of interest and penalties recognized in the Income tax expense at December 31, 2018 was $(0.4) million. The Company does not anticipate a significant change in the amount of unrecognized tax benefits during 2018.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:


	Year Ended December 31,
	2018		2017		2016
Unrecognized tax benefits—January 1	$	1,047	$	999	$	1,287
Gross increases—tax positions in prior period		301		48		—
Gross decreases—tax positions in prior period		—		—		(31)
Gross increases—tax positions in current period		128		—		45
Settlement		—		—		(103)
Lapse of statute of limitations		—		—		(199)
Unrecognized tax benefits—December 31	$	1,476	$	1,047	$	999

The Company files income tax returns in the U.S. and various state and foreign jurisdictions. The statute of limitations for U.S. purposes is open for tax years ending on or after December 31, 2014, However, NOLs generated in years prior to 2014 and utilized in future periods may be subject to examination by U.S. tax authorities. State jurisdictions that remain subject to examination are not considered significant. The Company has significant foreign operations in India and Europe. The Company may be subject to examination by the India tax authorities for tax periods ending on or after March 31, 2012.

During the year ended December 31, 2018, the Company completed the calculation of the amount for the deemed mandatory repatriation of its total post-1986 earnings and profits that were previously deferred from US income taxes. The deemed mandatory repatriation was based in part on the amount of untaxed earnings held in cash and other specified assets. Although the adoption of a territorial tax system allows for the repatriation of foreign earnings after December 31, 2017 without incurring U.S. corporate income tax, withholding taxes by the foreign jurisdictions will be applied to any dividends remitted to the U.S. At December 31, 2018, the Company has not changed its prior indefinite reinvestment assertion on undistributed earnings related to certain foreign subsidiaries. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of approximately $109.7 million of undistributed earnings from these foreign subsidiaries as those earnings continue to be permanently reinvested. However, the Company does not indefinitely reinvest earnings in Canada, China, India, Mexico and Philippines. At December 31, 2017, the Company did not obtain sufficient information, and therefore did not provide a provisional estimate to calculate the foreign withholding taxes on the undistributed earnings of these jurisdictions. During the fourth quarter of 2018, the Company has completed the calculation and recorded $4.7 million of foreign withholding taxes on the undistributed earnings of these jurisdictions pursuant to SAB 118.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2018

Employee Benefit Plans

Employee Benefit Plans

11. Employee Benefit Plans

German Pension Plan

The Company’s subsidiary in Germany provides pension benefits to eligible retirees. Employees eligible for participation includes all employees who started working for the Company prior to September 30, 1987 and have finished a qualifying period of at least 10 years. The Company accrues the cost of these benefits over the service lives of the covered employees based on an actuarial calculation. The Company uses a December 31 measurement date for this plan. The German pension plan is an unfunded plan and therefore has no plan assets.

U.K. Pension Plan

The Company’s subsidiary in the United Kingdom provides pension benefits to eligible retirees and eligible dependents. Employees eligible for participation included all full-time regular employees who were more than three years from retirement prior to October 2001. A retirement pension or a lump-sum payment may be paid dependent upon length of service at the mandatory retirement age. The Company accrues the cost of these benefits over the service lives of the covered employees based on an actuarial calculation. The Company uses a December 31 measurement date for this plan.

The expected rate of return assumptions for plan assets relate solely to the UK plan and are based mainly on historical performance achieved over a long period of time (15 to 20 years) encompassing many business and economic cycles. The Company assumed a weighted average expected long-term rate on plan assets of 3.87%.

Norway Pension Plan

The Company’s subsidiary in Norway provides pension benefits to eligible retirees and eligible dependents. Employees eligible for participation include all employees who were more than three years from retirement prior to March 2018. The Company accrues the cost of these benefits over the service lives of the covered employees based on an actuarial calculation. The Company uses a December 31 measurement date for this plan. The expected rate of return assumptions for plan assets relate solely to the Norway plan and are based mainly on historical performance achieved over a long period of time (10 to 20 years) encompassing many business and economic cycles. The Company assumed a weighted average expected long-term rate on plan assets of 4.3%.

Asterion Pension Plan

The Company acquired in 2018 through the Asterion Business Combination pension benefits to eligible retirees and eligible dependents. Employees eligible for participation included all full-time regular employees who were more than three years from retirement prior to July 2003. A retirement pension or a lump-sum payment may be paid dependent upon length of service at the mandatory retirement age. The Company accrues the cost of these benefits over the service lives of the covered employees based on an actuarial calculation. The Company uses a December 31 measurement date for this plan.

Funded Status

The change in benefit obligations, the change in the fair value of the plan assets and the funded status of the Company’s pension plans (except for the German pension plan which is unfunded) and the amounts recognized in the Company’s consolidated financial statements are as follows:


	Year ended December,
	2018		2017
Change in Benefit Obligation:
Benefit obligation at beginning of period	$	91,514	$	82,320
Additional obligation due to acquisition		5,317		—
Service cost		82		8
Interest cost		2,319		2,288
Actuarial loss (gain)		(5,643)		1,021
Plan amendments		2,490		—
Benefits paid		(1,436)		(1,797)
Foreign-exchange rate changes		(5,113)		7,674
Benefit obligation at end of year	$	89,530	$	91,514

Change in Plan Assets:
Fair value of plan assets at beginning of period	$	64,886	$	52,538
Additional assets due to acquisition		2,189		—
Actual return on plan assets		(1,434)		6,579
Employer contributions		2,477		2,297
Benefits paid		(1,415)		(1,782)
Foreign-exchange rate changes		(3,734)		5,254
Fair value of plan assets at end of year		62,969		64,886
Funded status at end of year	$	(26,561)	$	(26,628)

Net amount recognized in the Consolidated Balance Sheets:
Accrued compensation and benefits (a)	$	(1,811)	$	(1,551)
Pension liability (b)	$	(24,750)	$	(25,077)
Amounts recognized in accumulated other comprehensive loss, net of tax consist of:
Net actuarial loss		(9,301)		(11,054)
Net amount recognized in accumulated other comprehensive loss, net of tax	$	(9,301)	$	(11,054)

Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate projected benefit obligation	$	89,530	$	91,514
Aggregate accumulated benefit obligation	$	89,530	$	91,514
Aggregate fair value of plan assets	$	62,969	$	64,886

(a)

Germany pension, represents only a portion of the accrued compensation and benefits balance presented in the consolidated balance sheet.

(b)

Consolidated balance of $25.3 million and $25.5 million includes UK and Asterion pension plans of $24.8 million and $25.1 million, for the years ended December 31, 2018 and 2017, respectively, and minimum regulatory benefit for a Philippines legal entity of $0.5 million. Pension balances for the Germany and Norway plans of $2.3 million are recorded in accrued retirement.

Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Benefit Costs in 2019

The liability recorded on the Company’s consolidated balance sheets representing the net unfunded status of this plan is different than the cumulative expense recognized for this plan. The difference relates to losses that are deferred and that will be amortized into periodic benefit costs in future periods. These unamortized amounts are recorded in Accumulated Other Comprehensive Loss in the consolidated balance sheets.

As of December 31, 2018, the estimated pre-tax amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next year will be net actuarial loss of $1.9 million and prior service cost of $0.1 million.

Tax Effect on Accumulated Other Comprehensive Loss

As of December 31, 2018 and 2017, the Company recorded actuarial losses of $9.3 million and $11.1 million, respectively, which is net of a deferred tax benefit of $1.7 million and $2.0 million, respectively.

Pension and Postretirement Expense

The components of the net periodic benefit cost are as follows:


	Year ended December 31,
	2018		2017		2016
Service cost	$	82	$	8	$	11
Interest cost		2,351		2,288		2,667
Expected return on plan assets		(1,862)		(2,392)		(2,623)
Amortization:
Amortization of prior service cost		139		(134)		(141)
Amortization of net (gain) loss		—		2,063		891
Net periodic benefit cost	$	710	$	1,833	$	805

Valuation

The Company uses the corridor approach and projected unit credit method in the valuation of its defined benefit plans for the UK, Germany, and Norway respectively. The corridor approach defers all actuarial gains and losses resulting from variances between actual results and economic estimates or actuarial assumptions. For defined benefit pension plans, these unrecognized gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over 15 years. Similarly, the Company used the Projected Unit Credit Method for the German Plan, and evaluated the assumptions used to derive the related benefit obligations consisting primarily of financial and demographic assumptions including commencement of employment, biometric decrement tables, retirement age, staff turnover. The projected unit credit method determines the present value of the Company’s defined benefit obligations and related service costs by taking into account each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately in building up the final obligation. Benefit is attributed to periods of service using the plan's benefit formula, unless an employee's service in later years will lead to a materially higher of benefit than in earlier years, in which case a straight-line basis is used.

The following tables set forth the principal actuarial assumptions used to determine benefit obligation and net periodic benefit costs:


	December 31,
	2018		2017		2018		2017		2018		2017		2018		2017
	UK				Germany				Norway				Asterion
Weighted-average assumptions used to determine benefit obligations:
Discount rate	2.80	%	2.50	%	1.90	%	1.70	%	2.60	%	2.40	%	1.80	%	N/A
Rate of compensation increase	N/A		N/A		N/A		N/A		1.75	%	1.50	%	2.50	%	N/A
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	2.10	%	2.70	%	1.90	%	N/A	%	2.60	%	2.40	%	1.80	%	N/A
Expected asset return	3.87	%	4.34	%	3.68	%	N/A	%	4.30	%	4.10	%	1.80	%	N/A
Rate of compensation increase	N/A		N/A		N/A		N/A		1.75	%	1.50	%	2.50	%	N/A

The Germany plan is an unfunded plan and therefore has no plan assets. The expected rate of return assumptions for plan assets relates solely to the UK plan and are based mainly on historical performance achieved over a long period of time (10 to 20 years) encompassing many business and economic cycles. Adjustments, upward and downward, may be made to those historical returns to reflect future capital market expectations; these expectations are typically derived from expert advice from the investment community and surveys of peer company assumptions.

The Company assumed a weighted average expected long-term rate of return on plan assets for the overall scheme of 3.87%. The Company’s expected rate of return for equities is derived by applying an equity risk premium to the expected yield on the fixed-interest 15-year government gilts. The Company evaluated a number of indicators including prevailing market valuations and conditions, corporate earnings expectations, and the estimates of long-term economic growth and inflations to derive the equity risk premium. The expected return on the gilts and corporate bonds typically reflect market conditions at the balance sheet date, and the nature of the bond holdings.

The discount rate assumption was developed considering the current yield on an investment grade non-gilt index with an adjustment to the yield to match the average duration of the index with the average duration of the plan’s liabilities. The index utilized reflected the market’s yield requirements for these types of investments.

The inflation rate assumption was developed considering the difference in yields between a long-term government stocks index and a long-term index-linked stocks index. This difference was modified to consider the depression of the yield on index-linked stocks due to the shortage of supply and high demand, the premium for inflation above the expectation built into the yield on fixed-interest stocks and the government’s target rate for inflation (CPI) at 2.1%. The assumptions used are the best estimates chosen from a range of possible actuarial assumptions which, due to the time scale covered, may not necessarily be borne out in practice.

Plan Assets

The investment objective for the plan is to earn, over moving fifteen to twenty year periods, the long-term expected rate of return, net of investment fees and transaction costs, to satisfy the benefit obligations of the plan, while at the same time maintaining sufficient liquidity to pay benefit obligations and proper expenses, and meet any other cash needs, in the short-to medium-term.

The Company’s investment policy related to the defined benefit plan is to continue to maintain investments in government gilts and highly rated bonds as a means to reduce the overall risk of assets held in the fund. No specific targeted allocation percentages have been set by category, but are at the direction and discretion of the plan trustees. During 2018 and 2017, all contributions made to the fund were in these categories.

The weighted average allocation of plan assets by asset category is as follows:


	December 31,
	2018		2017		2016
U.S. and international equities	28.0	%	45.0	%	42.0	%
UK government and corporate bonds	10.0		20.0		21.0
Diversified growth fund	40.0		35.0		37.0
Liability Driven Investments	22.0		N/A		N/A
Total	100.0	%	100.0	%	100.0	%

The following tables set forth, by category and within the fair value hierarchy, the fair value of the Company’s pension assets at December 31, 2018 and 2017:


	December 31, 2018
	Total		Level 1		Level 2		Level 3
Asset Category:
Cash	$	135	$	135	$	—	$	—
Equity Funds:		—
U.S.		10,654		—		10,654		—
International		7,102		—		7,102		—
Fixed Income Securities:		—
Corporate bonds		6,270		—		6,270		—
Other investments:		—
Diversified growth fund		25,677		—		25,677		—
Liability Driven Investments		13,939		—		13,939		—
Total fair value	$	63,777	$	135	$	63,642	$	—


	December 31, 2017
	Total		Level 1		Level 2		Level 3
Asset Category:
Cash	$	256	$	256	$	—	$	—
Equity Funds:
U.S.		17,307		—		17,307		—
International		11,539		—		11,539		—
Fixed Income Securities:
UK Gilts		12,884		—		12,884		—
Other investments:
Diversified growth fund		22,900		—		22,900		—
Total fair value	$	64,886	$	256	$	64,630	$	—

The Company identified an immaterial error in the footnotes to the previously issued financial statements as of December 31, 2017. The previously issued financial statements incorrectly reflected investments in Equities, Fixed Income Securities, and Other investments as of December 31, 2017 as Level 1 assets. These amounts have been properly classified as Level 2 assets within the fair value hierarchy table above.

The plan assets for the UK are categorized as follows, as applicable:

Level 1: Any asset for which a unit price is available and used without adjustment, cash balances, etc.

Level 2: Any asset for which the amount disclosed is based on market data, for example a fair value measurement based on a present value technique (where all calculation inputs are based on data).

Level 3: Other assets. For example, any asset value with a fair value adjustment made not based on available indices or data.

Employer Contributions

The Company’s funding is based on governmental requirements and differs from those methods used to recognize pension expense. The Company made contributions of $3.1 million and $2.3 million to its pension plans during the years ended December 31, 2018 and 2017, respectively. The Company has fully funded the pension plans for 2018 based on current plan provisions. The Company expects to contribute $2.2 million to the pension plans during 2019, based on current plan provisions.

Estimated Future Benefit Payments

The estimated future pension benefit payments expected to be paid to plan participants are as follows:


	Estimated
	Benefit
	Payments
Year ended December 31,
2019	$	2,193
2020		1,720
2021		1,736
2022		2,069
2023		1,943
2024 - 2028		15,838
Total	$	25,499

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies

Commitments and Contingencies

12. Commitments and Contingencies

Litigation

The Company is, from time to time, involved in certain legal proceedings, inquiries, claims and disputes, which arise in the ordinary course of business. Although management cannot predict the outcomes of these matters, management does not believe these actions will have a material, adverse effect on the Company’s consolidated balance sheets, consolidated statements of operations or consolidated statements of cash flows.

Appraisal Demand

On September 21, 2017, former stockholders of SourceHOV, who allege combined ownership of 10,304 shares of SourceHOV common stock, filed a petition for appraisal pursuant to 8 Del. C. § 262 in the Delaware Court of Chancery, captioned Manichaean Capital, LLC, et al. v. SourceHOV Holdings, Inc., C.A. No. 2017-0673-JRS (the "Appraisal Action"). The Appraisal Action arises out of the Novitex Business Combination, which gave rise to appraisal rights pursuant to 8 Del. C. § 262. In the Appraisal Action, the petitioners seek, among other things, a determination of the fair value of their shares at the time of the Novitex Business Combination; an order that SourceHOV pay that value to the petitioners, together with interest at the statutory rate; and an award of costs, attorneys' fees, and other expenses.

On October 12, 2017, SourceHOV filed its answer to the petition and a verified list pursuant to 8 Del. C. § 262(f). Discovery in the Appraisal Action is not yet complete. Trial is currently scheduled for June 2019. At this stage of the litigation, the Company is unable to predict the outcome of the Appraisal Action or estimate any loss or range of loss that may arise from the Appraisal Action. Pursuant to the terms of the Novitex Business Combination Agreement, if such appraisal rights are perfected, a corresponding portion of shares of our Common Stock issued to Ex-Sigma 2 LLC, our principal stockholder, will be forfeited at such time as the PIPE Financing (as defined in the Consent, Waiver and Amendment dated June 15, 2017) is repaid. The Company intends to vigorously defend against the Appraisal Action.

Lease Commitments

The Company leases various office buildings, machinery, equipment, and vehicles. Future minimum lease payments under capital leases, included in long-term obligations, and non-cancelable operating leases at December 31, 2018 are as follows:


	Capital		Operating
	Leases		Lease		Total
2019	$	20,080	$	38,057	$	58,137
2020		11,851		29,346		41,197
2021		9,018		22,239		31,257
2022		4,169		16,782		20,951
2023		2,244		12,302		14,546
Thereafter		3,617		18,874		22,491
Total minimum lease payments	$	50,979	$	137,600	$	188,579
Less: Amounts representing interest		(6,743)
Total net minimum lease payments		44,236
Less: Current portion of obligations under capital leases		(17,498)
Long-term portion of obligations under capital leases	$	26,738

Rent expense for all operating leases was $83.8 million, $60.0 million, and $36.7 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Contract-Related Contingencies

The Company has certain contingent liabilities that arise in the ordinary course of providing services to its customers. These contingencies are generally the result of contracts that require the Company to comply with certain performance measurements or the delivery of certain services by a specified deadline. The Company believes the liability, if any, incurred under these contract provisions will not have a material adverse effect on the Company’s consolidated balance sheets, consolidated statements of operations or consolidated statements of cash flows.

The Company has certain contingent liabilities related to prior acquisitions. The Company adjusts these liabilities to fair value at each reporting period. The Company had a $0.7 million liability related to HandsOn Global Management’s (“HGM”) acquisition of BancTec, Inc. for both December 31, 2018 and 2017, respectively. The fair value is determined using an earn out method based on the agreement terms. This fair value measurement represents a Level 3 measurement as it is based on significant inputs not observable in the market. Significant judgment is employed in determining the appropriateness of these assumptions.

Fair Value Measurement

12 Months Ended

Dec. 31, 2018

Fair Value Measurement

Fair Value Measurement

13. Fair Value Measurement

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The carrying amount of assets and liabilities including cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of December 31, 2018 and December 31, 2017 due to the relative short maturity of these instruments. Management estimates the fair values of the secured term loan and secured notes at approximately 98.0% and 95.5%, respectively, of the respective principal balance outstanding as of December 30, 2018. The carrying value approximates the fair value for the long-term debt. The Company acquired $11.7 million of other long-term debt from Novitex (refer to Note 3), which primarily relates to the financing of equipment. Other debt represents the Company's outstanding loan balances associated with various hardware and software purchases along with loans entered into by subsidiaries of the Company and as such, the cost incurred would approximate fair value. Property and equipment, intangible assets, capital lease obligations, and goodwill are not required to be re-measured to fair value on a recurring basis. These assets are evaluated for impairment if certain triggering events occur. If such evaluation indicates that impairment exists, the respective asset is written down to its fair value.

The Company determined the fair value of its long-term debt using Level 2 inputs including the recent issue of the debt, the Company’s credit rating, and the current risk-free rate. The Company’s contingent liabilities related to prior acquisitions are re-measured each period and represent a Level 2 measurement as it is based on using an earn out method based on the agreement terms.

The Company determined the fair value of the interest rate swap using Level 2 inputs. The Company uses closing prices as provided by a third party institution. (Refer to Note 2 - Basis of Presentation and Summary of Significant Accounting Policies).

The following table provides the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2018 and December 31, 2017:


	Carrying		Fair		Fair Value Measurements
As of December 31, 2018	Amount		Value		Level 1		Level 2		Level 3
Recurring and nonrecurring assets and liabilities:
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Long-term debt		1,306,423		1,316,306		—		1,316,306		—
Interest rate swap		—		—		—		—		—
Goodwill		708,258		708,258		—		—		708,258


	Carrying		Fair		Fair Value Measurements
As of December 31, 2017	Amount		Value		Level 1		Level 2		Level 3
Recurring and nonrecurring assets and liabilities:
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Long-term debt		1,276,094		1,308,478		—		1,308,478		—
Interest rate swap		1,297		1,297		—		1,297		—
Goodwill		747,325		747,325		—		—		747,325

The significant unobservable inputs used in the fair value of the Company’s acquisition contingent liabilities are the discount rate, growth assumptions, and revenue thresholds. Significant increases (decreases) in the discount rate would have resulted in a lower (higher) fair value measurement. Significant increases (decreases) in the forecasted financial information would have resulted in a higher (lower) fair value measurement. For all significant unobservable inputs used in the fair value measurement of the Level 3 liabilities, a change in one of the inputs would not necessarily result in a directionally similar change in the other based on the current level of billings.

The following table reconciles the beginning and ending balances of net assets and liabilities classified as Level 3 for which a reconciliation is required:


	December 31,
	2018		2017
Balance as of January 1,	$	721	$	721
Payments/Reductions		—		—
Balance as of December 31,	$	721	$	721

During 2018 and 2017, goodwill impairment charges totaling $44.4 million, including taxes, were recognized within our LLPS segment. See Note 7.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2018

Stock-Based Compensation

Stock-Based Compensation

14. Stock-Based Compensation

At Closing, SourceHOV had 24,535 restricted stock units (“RSUs”) outstanding under its 2013 Long Term Incentive Plan (“2013 Plan”). Simultaneous with the Closing, the 2013 Plan, as well as all vested and unvested RSUs under the 2013 Plan, were assumed by Ex-Sigma, LLC ("Ex-Sigma"), an entity formed by the former SourceHOV equity holders, which is also the Company's principal stockholder. In accordance with U.S. GAAP, the Company will continue to incur compensation expense related to the 9,880 unvested RSUs as of July 12, 2017 on a straight-line basis until fully vested, as the recipients of the RSUs are employees of the Company. Subject to continuous employment and other terms of the 2013 Plan, all remaining unvested RSU’s with initial vesting period of 3 or 4 years will vest in April 2019. As of December 31, 2018 there are 2,675 nonvested shares related to the 2013 Plan with a weighted average remaining contractual life of .33 years and a weighted average aggregate intrinsic value of $1,633.

Exela 2018 Stock Incentive Plan

On December 20, 2017, Exela’s 2018 Stock Incentive Plan (the “2018 Plan”) became effective. The 2018 Plan provides for the grant of incentive and nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights, performance awards, and other stock-based compensation to eligible participants. Under the 2018 Plan, stock options are granted at a price per share not less than 100% of the fair market value per share of the underlying stock at the grant date. The Company determines the vesting period for each option award on the grant date, and the options generally expire 10 years from the grant date. The Company will be authorized to issue up to 8,196,482 shares of Common Stock.

A summary of the status of restricted stock units related to the 2018 Plan as of December 31, 2018 is presented as follows:


				Average
		Weighted		Remaining	Aggregate
	Number	Average Grant		Contractual Life	Intrinsic Value
	of Shares	Date Fair Value		(Years)	($)
Shares granted	1,020,220		5.86	—		—
Shares forfeited	—		—	—		—
Shares vested	(126,923)		—	—		—
Nonvested as of December 31, 2018	893,297	$	5.86	0.76	$	5,239

Options

Options are granted with an exercise price not less than fair market value on the date of grant and expire no later than ten years after the date of grant. Options granted under the 2018 Plan generally require no less than a two or four year ratable vesting period. The weighted average remaining contractual life for stock options is 9.68 years. Stock option activity in the first twelve months of 2018 is summarized in the following table:


		Weighted		Average Remaining
		Average		Vesting Period	Aggregate
	Outstanding	Exercise Price		(Years)	Intrinsic Value ($)
Granted	3,570,300	$	6.06	—		—
Exercised	—		—	—		—
Canceled	—		—	—		—
Expired	—		—	—		—
Balance at December 31, 2018	3,570,300	$	6.06	2.92	$	9,590

As of December 31, 2018, there was approximately $13.9 million of total unrecognized compensation expense related to non-vested awards for the 2013 Plan and 2018 Plan, which will be recognized over the respective service period. Stock-based compensation expense is recorded within Selling, general, and administrative expenses. The Company incurred total compensation expense of $7.6 million, $6.7 million, and $7.1 million related to the 2013 Plan and 2018 Plan awards for the years ended December 31, 2018, 2017, and 2016.

Stockholders’ Equity	12 Months Ended
Stockholders’ Equity	Dec. 31, 2018
Stockholders’ Equity
Stockholders’ Equity	15. Stockholders’ Equity The following description summarizes the material terms and provisions of the securities that the Company has authorized. Common Stock The Company is authorized to issue 1,600,000,000 shares of Common Stock, par value $0.0001 per share. Except as otherwise required by law or as otherwise provided in any certificate of designation for any series of preferred stock or as provided for in the Director Nomination Agreements, the holders of Exela Common Stock possess all voting power for the election of Exela's directors and all other matters requiring stockholder action and will at all times vote together as one class on all matters submitted to a vote of Exela stockholders. Holders of Exela Common Stock are entitled to one vote per share on matters to be voted on by stockholders. Holders of Exela Common Stock will be entitled to receive such dividends and other distributions, if any, as may be declared from time to time by the board of directors in its discretion out of funds legally available therefore and shall share equally on a per share basis in such dividends and distributions. The holders of the Common Stock have no conversion, preemptive or other subscription rights and there are no sinking fund or redemption provisions applicable to the common stock. In January 2018, 1,625,000 shares of Series A Preferred Stock were converted into 1,987,767 shares of common stock. As of December 31, 2018, there were 152,692,140 shares of Common Stock issued and 150,142,955 shares outstanding. Preferred Stock The Company is authorized to issue 20,000,000 shares of preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the board of directors. At December 31, 2018, the Company had 4,569,233 shares of Series A Preferred Stock outstanding. The par value of the Series A Preferred Stock is $0.0001 per share. Each share of Series A Preferred Stock will be convertible at the holder's option, at any time after the six month anniversary and prior to the third anniversary of the issue date, initially into 1.2226 shares of Exela Common Stock (assuming a conversion price of $8.80 per share and a third anniversary expected liquidation preference of $10.75911 per the below). Due to a Fundamental Change (as defined in the Certificate of Designations, Preferences, Rights and Limitations of Series A Preferred Stock) that occurred on August 1, 2017 as described in the beneficial conversion feature section of Note 2, holders of Series A Preferred Stock were able to convert their shares prior to the six month anniversary. Based on such assumed conversion rate, approximately 11,240,869 shares of Exela Common Stock would be issuable upon conversion of all of the shares of Series A Preferred Stock at the six month anniversary of the issue date. As of December 31, 2018, an additional 5,586,344 shares of Common Stock are issuable upon conversion of the remaining 4,569,233 shares of Series A Preferred Stock. Holders of the Series A Preferred Stock will be entitled to receive cumulative dividends at a rate per annum of 10% of the Liquidation Preference per share of Series A Preferred Stock, paid or accrued quarterly in arrears. From the issue date until the third anniversary of the issue date, the amount of all accrued but unpaid dividends on the Series A Preferred Stock will be added to the Liquidation Preference without any action by the Company’s board of directors. For the year ended December 31, 2018, this amount was $3.7 million as reflected on the Consolidated Statement of Operations. The cumulative accrued but unpaid dividends of the Series A Preferred Stock since their inception on July 12, 2017 is $6.1 million. The per share average of cumulative preferred dividends is 0.8 dollars. Following the third anniversary of the issue date, dividends on the Series A Preferred Stock will be accrued by adding to the Liquidation Preference or paid in cash, or a combination thereof. In addition, holders of the Series A Preferred Stock will participate in any dividend or distribution of cash or other property paid in respect of the Common Stock pro rata with the holders of the Common Stock (other than certain dividends or distributions that trigger an adjustment to the conversion rate, as described in the Certificate of Designations), as if all shares of Series A Preferred Stock had been converted into Common Stock immediately prior to the date on which such holders of the Common Stock became entitled to such dividend or distribution. Treasury Stock On November 8, 2017, the Company’s board of directors authorized a share buyback program (the “Share Buyback Program”), pursuant to which the Company may, from time to time, purchase up to 5,000,000 shares of its Common Stock. Share repurchases may be executed through various means, including, without limitation, open market transactions, privately negotiated transactions or otherwise. The decision as to whether to purchase any shares and the timing of purchases, if any, will be based on the price of the Company’s Common Stock, general business and market conditions and other investment considerations and factors. The Share Buyback Program does not obligate the Company to purchase any shares and expires in 24 months. The Share Buyback Program may be terminated or amended by the Company’s board of directors in its discretion at any time. We purchased 2,499,885 shares in 2018 at an average share price of $4.71. As of December 31, 2018, 2,549,185 shares had been repurchased under the share buyback program and they are held in treasury stock. The Company records treasury stock using the cost method. Warrants At December 31, 2018, there were a total of 34,988,302 warrants outstanding. As part of its IPO, Quinpario had issued 35,000,000 units including one share of Common Stock and one warrant. The warrants are traded on the OTC Bulletin board as of December 31, 2018. Each warrant entitles the holder to purchase one-half of one share of Common Stock at a price of $5.75 per half share ($11.50 per whole share). Warrants may be exercised only for a whole number of shares of Common Stock. No fractional shares will be issued upon exercise of the warrants. Each warrant is currently exercisable and will expire July 12, 2022 (five years after the completion of the Novitex Business Combination), or earlier upon redemption. The Company may call the warrants for redemption at a price of $0.01 per warrant upon a minimum of 30 days’ prior written notice of redemption, if, and only if, the last sales price of the shares of Common Stock equals or exceeds $24.00 per share for any 20 trading days within a 30 trading day period (the “30-day trading period”) ending three business days before the Company sends the notice of redemption, and if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying such warrants commencing five business days prior to the 30-day trading period and continuing each day thereafter until the date of redemption.

Related-Party Transactions

12 Months Ended

Dec. 31, 2018

Related-Party Transactions

Related-Party Transactions

16. Related-Party Transactions

Leasing Transactions

Certain operating companies lease their operating facilities from HOV RE, LLC and HOV Services Limited, which are affiliates through common interest held by Ex-Sigma 2 LLC, our largest stockholders. The rental expense for these operating leases was $0.7 million, $0.7 million, and $0.6 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Consulting Agreements

The Company receives services from Oakana Holdings, Inc. The Company and Oakana Holdings, Inc. are related through a family relationship between certain stockholders and the president of Oakana Holdings, Inc. The expense recognized for these services was approximately $0.2 million and $0.1 million for the years ended December 31, 2018 and 2017, respectively. For the year ended December 31, 2016, the Company incurred no expenses for these services.

The Company receives consulting services from Shadow Pond, LLC. Shadow Pond, LLC is wholly-owned and controlled by Vik Negi, our Executive Vice President Treasury and Business Affairs. The consulting arrangement was established to compensate Mr. Negi for his services to the Company prior to becoming an employee. The expense recognized for these services was approximately $0.1 million, $0.5 million, and $0.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. The consulting arrangement with Shadow Pond, LLC terminated and Mr. Negi continues to provide services as an employee of the Company.

Relationship with HandsOn Global Management

The Company incurred management fees to HGM, SourceHOV’s former owner, of $6.0 million for each of the years ended December 31, 2017 and 2016. The contract with HGM was terminated upon consummation of the Novitex Business Combination, and no fees were payable after July 12, 2017.

The Company incurred reimbursable travel expenses to HGM of less than $0.1 million $0.9 million and $1.7 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Pursuant to a master agreement dated January 1, 2015 between Rule 14, LLC and SourceHOV, the Company incurs marketing fees to Rule 14, LLC, a portfolio company of HGM. Similarly, SourceHOV is party to ten master agreements with entities affiliated with HGM’s ventures portfolio, each of which were entered into during 2015 and 2016. Each master agreement provides SourceHOV with free use of technology and includes a reseller arrangement pursuant to which SourceHOV is entitled to sell these services to third parties. Any revenue earned by SourceHOV in such third-party sale is shared 75%/25% with each of HGM’s venture affiliates in favor of SourceHOV. The brands Zuma, Athena, Peri, BancMate, Spring, Jet, Teletype, CourtQ and Rewardio are part of the HGM ventures portfolio. SourceHOV has the license to use and resell such brands, as described therein. We incurred fees relating to these agreements of $0.6 million, $0.6 million, and $0.5 million for the years ended December 31, 2018, 2017 and 2016, respectively.

During 2017, the Company incurred contract cancellation and advising fees to HGM of $23.0 million, $10.0 million of which was paid by the issuance of 1,250,000 shares of Common Stock, relating to the Novitex Business Combination. No such fees were incurred in 2018.

Relationship with HOV Services, Ltd.

HOV Services, Ltd., a former stockholder of SourceHOV who currently owns equity interest in the Company through Ex-Sigma, provides the Company data capture and technology services. The expense recognized for these services was approximately $1.6 million, $1.7 million, and $1.7 million for the years ended December 31, 2018, 2017, and 2016, respectively, and is included in cost of revenue in the consolidated statements of operations.

Relationship with Apollo Global Management, LLC

The Company provides services to and receives services from certain companies controlled by investment funds affiliated with Apollo Global Management, LLC (“Apollo”). Investment funds affiliated with Apollo also control one of our largest stockholders, Novitex Holdings, which has the right to designate two of the Company's directors and has certain other consent rights under the Director Nomination Agreement. For the years ended December 31, 2018 and 2017 there were related party revenues of $0.6 million and $0.3 million, respectively, for services received from an Apollo affiliated company with a common Apollo designated director. For the year ended December 31, 2016, the Company incurred no expenses for these services.

On January 18, 2017, Novitex Solutions entered into a master purchase and professional services agreement with Caesars Enterprise Services, LLC (‘‘Caesars’’), a portion of which is owned by an affiliate of Apollo. Pursuant to this master purchase and professional services agreement, Novitex Solutions provides managed print services to Caesars, including general equipment operation, supply management, support services and technical support. We recognized revenue of $4.1 million and $1.2 million for year ended December 31, 2018 and 2017. For the year ended December 31, 2016 there were no revenues from this agreement.

On May 5, 2017, Novitex Solutions entered into a master services agreement with ADT LLC, a portion of which is owned by affiliates of Apollo. Pursuant to this master services agreement, Novitex Solutions provides ADT LLC with mailroom and onsite mail delivery services at an ADT LLC office location and managed print services, including supply management, equipment maintenance and technical support services. We recognized revenue of $0.6 million and less than $0.1 million in our consolidated statements of operations from ADT LLC under this master services agreement for the year ended December 31, 2018 and 2017. For the year ended December 31, 2016 there were no revenues from this agreement.

On July 20, 2017, Novitex Solutions entered into a master services agreement with Diamond Resorts Centralized Services Company. Diamond Resorts Centralized Services Company is controlled by investment funds affiliated with Apollo. Pursuant to this master services agreement, Novitex Solutions provides commercial print and promotional product procurement services to Diamond Resorts Centralized Services Company, including sourcing, inventory management and fulfillment services. The Company recognized revenue of $5.7 million for the year ended December 31, 2018 and cost of revenue of $0.1 million for the year ended December 31, 2018 from Diamond Resorts Centralized Services Company under this master services agreement. No revenue or cost of revenue was recognized in 2017 or 2016 under this agreement.

In April 2016, Novitex Solutions entered into a master services agreement with Presidio Networked Solutions Group, LLC ("Presidio Group"), a wholly owned subsidiary of Presidio, Inc., a portion of which is owned by affiliates of Apollo and with a common Apollo designated director. Pursuant to this master services agreement, Presidio Group provides Novitex Solutions with employees, subcontractors, and/or goods and services. For the year ended December 31, 2018 and 2017 there were related party expenses of $0.7 million and $0.3 million, respectively, for this service. For the year ended December 31, 2016 there were no expenses from this agreement.

Payable Balances with Affiliates

Payable balances with affiliates as of December 31, 2018 and 2017 are as follows:


	December 31,
	2018		2017
	Payable		Payable
HOV Services, Ltd	$	405	$	286
Rule 14		127		158
HGM		6,998		13,689
Apollo affiliated company		205		312
	$	7,735	$	14,445

Segment Information

12 Months Ended

Dec. 31, 2018

Segment Information

Segment Information

17. Segment and Geographic Area Information

The Company’s operating segments are significant strategic business units that align its products and services with how it manages its business, approach the markets and interacts with its clients. The Company is organized into three segments: ITPS, HS, and LLPS.

ITPS: The ITPS segment provides a wide range of solutions and services designed to aid businesses in information capture, processing, decisioning and distribution to customers primarily in the financial services, commercial, public sector and legal industries.

HS: The HS segment operates and maintains a consulting and outsourcing business specializing in both the healthcare provider and payer markets.

LLPS: The LLPS segment provides a broad and active array of legal services in connection with class action, bankruptcy labor, claims adjudication and employment and other legal matters.

The chief operating decision maker reviews operating segment revenue and cost of revenue. The Company does not allocate Selling, general, and administrative expenses, depreciation and amortization, interest expense and sundry, net. The Company manages assets on a total company basis, not by operating segment, and therefore asset information and capital expenditures by operating segments are not presented.


	Year December 31, 2018
	ITPS	HS	LLPS	Total
Revenue	1,273,647	228,015	84,560		1,586,222
Cost of revenue	1,007,301	151,367	51,206		1,209,874
Selling, general and administrative expenses					184,651
Depreciation and amortization					145,485
Impairment of goodwill and other intangible assets					48,127
Related party expense					4,334
Interest expense, net					153,095
Loss on extinguishment of debt					1,067
Sundry expense (income), net					(3,271)
Other income, net					(3,030)
Net loss before income taxes				$	(154,110)


	Year ended December 31, 2017
	ITPS	HS	LLPS	Total
Revenue	827,110	233,595	91,619		1,152,324
Cost of revenue	620,719	152,864	55,560		829,143
Selling, general and administrative expenses					220,955
Depreciation and amortization					98,890
Impairment of goodwill and other intangible assets					69,437
Related party expense					33,431
Interest expense, net					128,489
Loss on extinguishment of debt					35,512
Sundry expense (income), net					2,295
Other income, net					(1,297)
Net loss before income taxes				$	(264,531)


	Year December 31, 2016
	ITPS	HS	LLPS	Total
Revenue	439,924	247,796	102,206		789,926
Cost of revenue	296,848	158,800	63,473		519,121
Selling, general and administrative expenses					130,437
Depreciation and amortization					79,639
Related party expense					10,493
Interest expense, net					109,414
Sundry expense (income), net					712
Net loss before income taxes				$	(59,890)

The following table presents revenues by principal geographic area where the Company’s customers are located for the years ended December 31, 2018, 2017, and 2016.


	Years ended December 31,
	2018		2017		2016
United States	$	1,347,516	$	1,000,827	$	654,565
Europe		211,314		136,531		131,287
Other		27,392		14,966		4,074
Total Consolidated Revenue	$	1,586,222	$	1,152,324	$	789,926

Selected Quarterly Financial Results (Unaudited)

12 Months Ended

Dec. 31, 2018

Selected Quarterly Financial Results (Unaudited)

Selected Quarterly Financial Results (Unaudited)

18. Selected Quarterly Financial Results (Unaudited)

The following tables show a summary of the Company’s quarterly financial information for each of the four quarters of 2018 and 2017:


	Q1 2018		Q2 2018		Q3 2018		Q4 2018
Revenue	$	393,167	$	410,382	$	383,030	$	399,643
Cost of revenue (exclusive of depreciation and amortization)		293,792		313,954		295,936		306,192
Selling, general and administrative expenses		45,595		46,723		44,913		47,420
Depreciation and amortization		38,019		36,368		35,041		36,057
Impairment of goodwill and other intangible assets		—		—		—		48,127
Related party expense		1,105		1,402		759		1,068
Operating income (loss)		14,656		11,935		6,381		(39,221)

Other expense (income), net:
Interest expense, net		38,017		38,527		38,339		38,212
Loss on extinguishment of debt		—		—		1,067		—
Sundry expense (income), net		(64)		(2,325)		(2,571)		1,689
Other income, net		(3,328)		(704)		(781)		1,783
Net loss before income taxes		(19,969)		(23,563)		(29,673)		(80,905)
Income tax (expense) benefit		(4,025)		(1,619)		733		(3,496)
Net loss		(23,994)		(25,182)		(28,940)		(84,401)
Cumulative dividends for Series A Preferred Stock		(914)		(914)		(914)		(914)
Net loss attributable to common stockholders	$	(24,908)	$	(26,096)	$	(29,854)	$	(85,315)
Weighted average outstanding common shares		152,140,117		152,259,589		151,663,670		152,343,823
Earnings per share:
Basic and diluted	$	(0.16)	$	(0.17)	$	(0.20)	$	(0.54)


	Q1 2017		Q2 2017		Q3 2017		Q4 2017
Revenue	$	218,260	$	209,382	$	338,393	$	386,289
Cost of revenue (exclusive of depreciation and amortization)		143,708		140,418		255,116		289,901
Selling, general and administrative expenses		35,581		34,998		102,048		48,328
Depreciation and amortization		21,320		21,406		28,052		28,112
Impairment of goodwill and other intangible assets		—		—		—		69,437
Related party expense		2,385		2,456		26,892		1,698
Operating income (loss)		15,266		10,104		(73,715)		(51,187)

Other expense (income), net:
Interest expense, net		26,219		27,869		37,652		36,749
Loss on extinguishment of debt		—		—		35,512		—
Sundry expense (income), net		2,724		(327)		563		(665)
Other income, net		—		—		—		(1,297)
Net loss before income taxes		(13,677)		(17,438)		(147,442)		(85,974)
Income tax (expense) benefit		(2,004)		(2,074)		37,002		27,322
Net loss		(15,681)		(19,512)		(110,440)		(58,652)
Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature		—		—		(16,375)		—
Cumulative dividends for Series A Preferred Stock		—		—		(1,225)		(1,264)
Net loss attributable to common stockholders	$	(15,681)	$	(19,512)	$	(128,040)	$	(59,916)
Weighted average outstanding common shares		67,827,401		69,721,078		138,895,681		150,569,877
Earnings per share:						—
Basic and diluted	$	(0.23)	$	(0.28)	$	(0.92)	$	(0.40)

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

Segment Reporting

The Company consists of the following three segments:

Cash and Cash Equivalents

Restricted Cash

Accounts Receivable and Allowance for Doubtful Accounts

Inventories

Property, Plant and Equipment

Intangible Assets

Customer Relationships

Trade Names

Trademarks

Developed Technology

Capitalized Software Costs

Outsourced Contract Costs

Non-compete Agreements

Assembled Workforce

Impairment of Indefinite-Lived Assets

Impairment of Long-Lived Assets

Goodwill

Derivative Instruments and Hedging Activities

The following table summarizes the Company’s interest rate swap positions as of December 31, 2018:


		December 31, 2018
Effective	Maturity	(In Millions)		Weighted Average
date	date	Notional Amount		Interest Rate
1/12/2018	1/12/2021	$	339.1	1.9725	%

Benefit Plan Accruals

Leases

Stock-Based Compensation

Revenue Recognition

Nature of Services

Disaggregation of Revenues

The following tables disaggregate revenue from contracts by geographic region and by segment for the year ended December 31, 2018, 2017, and 2016:


	Year Ended December 31,
	2018						2017						2016
	ITPS		HS		LLPS		ITPS		HS		LLPS		ITPS		HS		LLPS
United States	$	1,034,941	$	228,015	$	84,560	$	675,613	$	233,595	$	91,619	$	304,563	$	247,796	$	102,206
Europe		211,314		—		—		136,531		—		—		131,287		—		—
Other		27,392		—		—		14,966		—		—		4,074		—		—
Total	$	1,273,647	$	228,015	$	84,560	$	827,110	$	233,595	$	91,619	$	439,924	$	247,796	$	102,206

Contract Balances

The following table presents contract assets and contract liabilities recognized at December 31, 2018 and 2017:


	December 31,		December 31,
	2018		2017
Accounts receivable, net	$	270,812	$	229,704
Deferred revenues		16,940		13,717
Costs to obtain and fulfill a contract		18,624		22,929
Customer deposits		34,235		31,656

Performance Obligations

We include reimbursements from customers, such as postage costs, in revenue, while the related costs are included in cost of revenue.

Transaction Price Allocated to the Remaining Performance Obligations


Estimated Remaining Fixed Consideration for Unsatisfied Performance Obligations

2019	$	40,402
2020		23,310
2021		13,416
2022		4,780
2023		1,113
2024 and thereafter		771
Total	$	83,792

Research and Development

Advertising

Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2018, 2017, and 2016, were $0.9 million, $0.7 million, and $1.1 million, respectively.

Income Taxes

Loss Contingencies

Operations

Foreign Currency Translation

Beneficial Conversion Feature

Net Loss per Share

The components of basic and diluted EPS are as follows:


	Year Ended December 31,
	2018		2017		2016
Net loss attributable to common stockholders (A)	$	(166,172)	$	(223,149)	$	(48,103)
Weighted average common shares outstanding - basic and diluted (B)		152,343,823		107,068,262		64,024,557
Loss Per Share:
Basic and diluted (A/B)	$	(1.09)	$	(2.08)	$	(0.75)

Business Combinations

Fair Value Measurements

Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 3 — unobservable inputs reflecting Management’s own assumptions about the inputs used in pricing the asset or liability at fair value.

Refer to Note 13 — Fair Value Measurement for further discussion.

Concentration of Credit Risk

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Not to record leases with an initial term of 12 months on the balance sheet;

Not to reassess the (1) definition of a lease, (2) lease classification, and (3) initial direct costs for existing leases during transition.

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Basis of Presentation and Summary of Significant Accounting Policies

Schedule of interest rate swap positions


		December 31, 2018
Effective	Maturity	(In Millions)		Weighted Average
date	date	Notional Amount		Interest Rate
1/12/2018	1/12/2021	$	339.1	1.9725	%

Schedule of disaggregates revenue from contracts by geographic region and by segment


	Year Ended December 31,
	2018						2017						2016
	ITPS		HS		LLPS		ITPS		HS		LLPS		ITPS		HS		LLPS
United States	$	1,034,941	$	228,015	$	84,560	$	675,613	$	233,595	$	91,619	$	304,563	$	247,796	$	102,206
Europe		211,314		—		—		136,531		—		—		131,287		—		—
Other		27,392		—		—		14,966		—		—		4,074		—		—
Total	$	1,273,647	$	228,015	$	84,560	$	827,110	$	233,595	$	91,619	$	439,924	$	247,796	$	102,206

Schedule of contract balances


	December 31,		December 31,
	2018		2017
Accounts receivable, net	$	270,812	$	229,704
Deferred revenues		16,940		13,717
Costs to obtain and fulfill a contract		18,624		22,929
Customer deposits		34,235		31,656

Schedule of estimated remaining fixed consideration for unsatisfied performance obligations


Estimated Remaining Fixed Consideration for Unsatisfied Performance Obligations

2019	$	40,402
2020		23,310
2021		13,416
2022		4,780
2023		1,113
2024 and thereafter		771
Total	$	83,792

Schedule of components of basic and diluted EPS


	Year Ended December 31,
	2018		2017		2016
Net loss attributable to common stockholders (A)	$	(166,172)	$	(223,149)	$	(48,103)
Weighted average common shares outstanding - basic and diluted (B)		152,343,823		107,068,262		64,024,557
Loss Per Share:
Basic and diluted (A/B)	$	(1.09)	$	(2.08)	$	(0.75)

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2018

Novitex Business Combination

Business Combinations and Acquisitions

Schedule of identifiable intangible assets


	Weighted Average
	Useful Life
	(in years)	Fair value
Trademark - Novitex	9.5	$	18,000
Customer relationships	16.0		230,000
Internally developed software - Connect Platform	5.0		1,710
Non-compete agreements	1.0		1,350
		$	251,060

Novitex

Business Combinations and Acquisitions

Schedule of consideration paid and the preliminary fair value of the assets acquired and liabilities assumed


Assets acquired:
Cash and equivalents	$	8,428
Accounts receivable		87,474
Inventory		1,245
Prepaid expenses & other		13,974
Property, plant and equipment, net		60,657
Identifiable intangible assets, net		251,060
Deferred charges and other assets		2,723
Other noncurrent assets		93
Goodwill		406,060
Total identifiable assets acquired	$	831,714

Liabilities assumed:
Accounts payable		(29,444)
Short-term borrowings and current portion of long-term debt		(11,335)
Accrued liabilities		(30,432)
Advanced billings and customer deposits		(18,926)
Long term debt		(15,704)
Deferred taxes		(46,991)
Other liabilities		(2,226)
Total liabilities assumed	$	(155,058)
Total consideration	$	676,656

Asterion

Business Combinations and Acquisitions

Schedule of consideration paid and the preliminary fair value of the assets acquired and liabilities assumed


Assets Acquired:
Cash and cash equivalents	$	5,595
Accounts receivable		25,740
Other current assets		2,282
Inventories, net		1,137
Property, plant, and equipment, net		4,747
Deferred income tax assets		6,316
Other noncurrent assets		522
Intangible assets, net		3,525
Goodwill		1,493
Total identifiable assets acquired	$	51,357
Liabilities Assumed:
Accounts payable	$	(5,596)
Income tax payable		(5)
Accrued liabilities		(6,593)
Accrued compensation and benefits		(7,079)
Deferred revenue		(880)
Current portion of long term debt		(994)
Customer deposits		(462)
Pension liability		(7,135)
Other long-term liabilities		(1,324)
Deferred income tax liabilities		(1,171)
Capital lease obligations, net of current maturities		(650)
Total liabilities assumed	$	(31,889)
Total Consideration	$	19,468

Schedule of identifiable intangible assets


	Weighted Average
	Useful Life (in years)	Fair Value
Customer Relationships	9.5	$	3,516

Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2018

Accounts Receivable.

Schedule of accounts receivable, net


	December 31,
	2018		2017
Billed receivables	$	226,252	$	199,201
Unbilled receivables		39,498		28,449
Other		9,421		5,779
Less: Allowance for doubtful accounts		(4,359)		(3,725)
	$	270,812	$	229,704

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2018

Prepaid Expenses and Other Current Assets

Schedule of prepaid expenses and other current assets


	December 31,
	2018		2017
Prepaids	$	24,790	$	22,869
Deposits		225		1,727
	$	25,015	$	24,596

Property, Plant and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment, Net

Schedule of property, plant, and equipment, which include assets recorded under capital leases, are stated at cost less accumulated depreciation and amortization


	Estimated
	Useful Lives	December 31,
	(in Years)	2018		2017
Land	N/A	$	6,888	$	7,744
Buildings and improvements	7 - 40		20,518		18,726
Leasehold improvements	3 - 12		56,589		51,257
Vehicles	5 - 7		717		870
Machinery and equipment	5 - 15		62,746		62,249
Computer equipment and software	3 - 8		130,862		116,580
Furniture and fixtures	5 - 15		8,724		7,136
			287,046		264,562
Less: Accumulated depreciation and amortization			(154,060)		(131,654)
Property, plant and equipment, net		$	132,986	$	132,908

Intangibles Assets and Goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Intangibles Assets and Goodwill

Schedule of intangible assets


	December 31, 2018
	Gross Carrying				Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	507,905	$	(190,666)	$	317,239
Developed technology		89,053		(85,967)		3,086
Trade names (b)		9,400		(3,100)		6,300
Outsource contract costs		46,342		(27,719)		18,623
Internally developed software		36,820		(6,278)		30,542
Trademarks		23,379		(23,370)		9
Non compete agreements		1,350		(1,350)		—
Assembled workforce		4,473		—		4,473
Purchased software		26,749		—		26,749
Intangibles, net	$	745,471	$	(338,450)	$	407,021


	December 31, 2017
	Gross Carrying				Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	504,643	$	(135,962)	$	368,681
Developed technology		89,076		(77,103)		11,973
Trade names (c)		13,100		—		13,100
Outsource contract costs		40,456		(17,526)		22,930
Internally developed software		28,254		(2,597)		25,657
Trademarks		23,370		(1,446)		21,924
Non compete agreements		1,350		(631)		719
Intangibles, net	$	700,249	$	(235,265)	$	464,984

(a)

Amounts include intangibles acquired in the Novitex and Asterion Business Combination. See Note 3-Business Combinations.

(b)

The carrying amount of trade names for 2018 is net of accumulated impairment losses of $43.1 million, of which $3.7 million was recognized in 2018.

(c)

The carrying amount of trade names for 2017 is net of accumulated impairment losses of $39.4 million, of which $39.4 million was recognized in 2017.

Schedule of estimated intangibles amortization expense


	Estimated
	Amortization
	Expense
2019	$	64,685
2020		58,363
2021		50,077
2022		44,687
2023		35,929
Thereafter		147,107
	$	400,848

Schedule of goodwill by reporting segment


									Currency
									translation
	Goodwill		Additions			Reductions			adjustments		Goodwill(a)
ITPS	$	159,394	$	406,522	(c)	$	—		$	299	$	566,215
HS		86,786		—			—			—		86,786
LLPS		127,111		—			(32,787)	(b)		—		94,324
Balance as of December 31, 2017	$	373,291	$	406,522		$	(32,787)		$	299	$	747,325
ITPS	$	566,215	$	5,580	(d)	$	—		$	(220)	$	571,575
HS		86,786		—			—			—		86,786
LLPS		94,324		—			(44,427)	(e)		—		49,897
Balance as of December 31, 2018	$	747,325	$	5,580		$	(44,427)		$	(220)	$	708,258

(a)

The carrying amount of goodwill for all periods presented is net of accumulated impairment losses of $137.9 million.

(b)

The reduction in goodwill is due to $30.1 million for impairment recorded in the fourth quarter of 2017 and $2.7 million for the sale of Meridian Consulting Group, LLC in the first quarter of 2017.

(c)

Addition to goodwill is primarily the result of the Novitex Business Combination (Refer to note 4), which resulted in $406.1 million of goodwill.

(d)

Addition to goodwill due to the Asterion Business Combination (Refer to note 4) and immaterial acquisitions in the third and fourth quarter of 2018.

(e)

The reduction in goodwill is due to $44.4 million, including taxes, for impairment recorded in the fourth quarter of 2018.

Accrued Liabilities and Other Long-Term Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Accrued Liabilities and Other Long-Term Liabilities

Schedule of accrued liabilities


	December 31,
	2018		2017
Accrued taxes (exclusive of income taxes)	$	10,606	$	9,310
Accrued lease exit obligations		1,694		2,207
Accrued professional and legal fees		30,522		16,529
Deferred rent		1,421		1,204
Accrued interest		49,071		55,102
Accrued transaction costs		2,250		18,232
Other accruals		19,515		1,901
	$	115,079	$	104,485

Schedule of other Long-term liabilities


	December 31,
	2018		2017
Deferred revenue	$	432	$	424
Deferred rent		8,333		7,112
Accrued lease exit obligations		369		1,144
Accrued compensation expense		2,173		2,776
Other		4,093		3,248
	$	15,400	$	14,704

Long-Term Debt and Credit Facilities (Tables)

12 Months Ended

Dec. 31, 2018

Long-Term Debt and Credit Facilities

Schedule of outstanding long-term debt instruments


	December 31,
	2018		2017
Other (a)	$	25,321		17,534
First lien credit agreement (b)		335,896		308,825
Senior secured notes (c)		974,443		970,300
Total debt		1,335,660		1,296,659
Less: Current portion of long-term debt		(29,237)		(20,565)
Long-term debt, net of current maturities	$	1,306,423	$	1,276,094

(a)

Other debt represents outstanding loan balances associated with various hardware, software purchases, and maintenance along with loans entered into by subsidiaries of the Company.

(b)

Net of unamortized original issue discount and debt issuance costs of $8.3 million and $24.5 million as of December 31, 2018 and $9.9 million and $29.1 million as of December 31, 2017.

(c)

Net of unamortized original issue discount and debt issuance costs of $18.2 million and $7.3 million as of December 31, 2018 and $21.2 million and $8.5 million as of December 31, 2017.

Schedule of maturities of long-term debt


	Maturity
2019	$	29,237
2020		23,156
2021		22,824
2022		19,084
2023		1,299,700
Thereafter		—
Total long-term debt		1,394,001
Less: Unamortized discount and debt issuance costs		(58,341)
	$	1,335,660

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of components of income/ (loss) before income taxes


	Year Ended December 31,
	2018		2017		2016
United States	$	(173,506)	$	(279,822)	$	(71,171)
Foreign		19,396		15,291		11,281
	$	(154,110)	$	(264,531)	$	(59,890)

Schedule of provision for federal, state, and foreign income taxes


	Year Ended December 31,
	2018		2017		2016
Federal
Current	$	1,308	$	(722)	$	—
Deferred		(1,998)		(59,425)		(8,961)
State
Current		311		1,405		830
Deferred		2,330		(7,176)		(2,740)
Foreign
Current		3,435		5,794		3,112
Deferred		3,021		(122)		(4,028)
Income Tax Expense (Benefit)	$	8,407	$	(60,246)	$	(11,787)

Schedule of income tax reconciliation


	Year Ended December 31,
	2018		2017		2016
Tax at statutory rate	$	(32,363)	$	(92,586)	$	(20,962)
Add (deduct)
State income taxes		(6,698)		(4,219)		1,483
Foreign income taxes		1,235		(565)		(1,356)
Nondeductible transaction costs		—		27,311		—
Nondeductible goodwill impairment		9,002		10,497		—
Permanent differences		940		438		4,405
Changes in valuation allowance		20,248		(7,285)		6,075
Unremitted earnings		4,735		—		1,686
Changes in U.S tax rates		—		(4,784)		—
Deemed mandatory repatriation		—		7,441		—
GILTI Inclusion		2,289		—		—
Expiration of tax attributes		8,354		—		—
Other		665		3,506		(3,118)
Income Tax Expense (Benefit)	$	8,407	$	(60,246)	$	(11,787)

Schedule of components of deferred income tax liabilities and assets


	Year Ended December 31,
	2018		2017
Deferred income tax liabilities:
Book over tax basis of intangible and fixed assets	$	(94,649)	$	(113,844)
Unremitted foreign earnings		(4,735)		—
Other, net	$	(4,078)	$	(2,684)
Total deferred income tax liabilities		(103,462)		(116,528)

Deferred income tax assets:
Allowance for doubtful accounts and receivable adjustments	$	1,676	$	1,401
Inventory		1,629		1,807
Accrued liabilities		9,260		9,586
Net operating loss and tax credit carryforwards		184,381		196,633
Tax deductible goodwill		3,147		3,862
Disallowed interest deduction		27,005		—
Other, net		16,841		15,518
Total deferred income tax assets	$	243,939	$	228,807

Valuation allowance		(135,465)		(108,622)
Total net deferred income tax assets (liabilities)	$	5,012	$	3,657

Schedule of NOL carryforwards expiry


			State and Local
	Federal NOL		NOL
2019 - 2022	$	107,956	$	29,986
2023 - 2027		139,102		79,111
2028 - 2037		433,147		363,616
	$	680,205	$	472,713

Schedule of reconciliation of the total amounts of unrecognized tax benefits


	Year Ended December 31,
	2018		2017		2016
Unrecognized tax benefits—January 1	$	1,047	$	999	$	1,287
Gross increases—tax positions in prior period		301		48		—
Gross decreases—tax positions in prior period		—		—		(31)
Gross increases—tax positions in current period		128		—		45
Settlement		—		—		(103)
Lapse of statute of limitations		—		—		(199)
Unrecognized tax benefits—December 31	$	1,476	$	1,047	$	999

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2018

Employee Benefit Plans

Schedule of change in benefit obligations, fair value of the plan assets and funded status of Company's pension plans and the amounts recognized in the Company's consolidated financial statements


	Year ended December,
	2018		2017
Change in Benefit Obligation:
Benefit obligation at beginning of period	$	91,514	$	82,320
Additional obligation due to acquisition		5,317		—
Service cost		82		8
Interest cost		2,319		2,288
Actuarial loss (gain)		(5,643)		1,021
Plan amendments		2,490		—
Benefits paid		(1,436)		(1,797)
Foreign-exchange rate changes		(5,113)		7,674
Benefit obligation at end of year	$	89,530	$	91,514

Change in Plan Assets:
Fair value of plan assets at beginning of period	$	64,886	$	52,538
Additional assets due to acquisition		2,189		—
Actual return on plan assets		(1,434)		6,579
Employer contributions		2,477		2,297
Benefits paid		(1,415)		(1,782)
Foreign-exchange rate changes		(3,734)		5,254
Fair value of plan assets at end of year		62,969		64,886
Funded status at end of year	$	(26,561)	$	(26,628)

Net amount recognized in the Consolidated Balance Sheets:
Accrued compensation and benefits (a)	$	(1,811)	$	(1,551)
Pension liability (b)	$	(24,750)	$	(25,077)
Amounts recognized in accumulated other comprehensive loss, net of tax consist of:
Net actuarial loss		(9,301)		(11,054)
Net amount recognized in accumulated other comprehensive loss, net of tax	$	(9,301)	$	(11,054)

Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate projected benefit obligation	$	89,530	$	91,514
Aggregate accumulated benefit obligation	$	89,530	$	91,514
Aggregate fair value of plan assets	$	62,969	$	64,886

(a)

Germany pension, represents only a portion of the accrued compensation and benefits balance presented in the consolidated balance sheet.

(b)

Schedule of components of the net periodic benefit cost


	Year ended December 31,
	2018		2017		2016
Service cost	$	82	$	8	$	11
Interest cost		2,351		2,288		2,667
Expected return on plan assets		(1,862)		(2,392)		(2,623)
Amortization:
Amortization of prior service cost		139		(134)		(141)
Amortization of net (gain) loss		—		2,063		891
Net periodic benefit cost	$	710	$	1,833	$	805

Schedule of principal assumptions used to determine benefit obligation and net periodic benefit costs


	December 31,
	2018		2017		2018		2017		2018		2017		2018		2017
	UK				Germany				Norway				Asterion
Weighted-average assumptions used to determine benefit obligations:
Discount rate	2.80	%	2.50	%	1.90	%	1.70	%	2.60	%	2.40	%	1.80	%	N/A
Rate of compensation increase	N/A		N/A		N/A		N/A		1.75	%	1.50	%	2.50	%	N/A
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	2.10	%	2.70	%	1.90	%	N/A	%	2.60	%	2.40	%	1.80	%	N/A
Expected asset return	3.87	%	4.34	%	3.68	%	N/A	%	4.30	%	4.10	%	1.80	%	N/A
Rate of compensation increase	N/A		N/A		N/A		N/A		1.75	%	1.50	%	2.50	%	N/A

Schedule of weighted average allocation of plan assets by asset category


	December 31,
	2018		2017		2016
U.S. and international equities	28.0	%	45.0	%	42.0	%
UK government and corporate bonds	10.0		20.0		21.0
Diversified growth fund	40.0		35.0		37.0
Liability Driven Investments	22.0		N/A		N/A
Total	100.0	%	100.0	%	100.0	%

The following tables set forth, by category and within the fair value hierarchy, the fair value of the Company’s pension assets at December 31, 2018 and 2017:


	December 31, 2018
	Total		Level 1		Level 2		Level 3
Asset Category:
Cash	$	135	$	135	$	—	$	—
Equity Funds:		—
U.S.		10,654		—		10,654		—
International		7,102		—		7,102		—
Fixed Income Securities:		—
Corporate bonds		6,270		—		6,270		—
Other investments:		—
Diversified growth fund		25,677		—		25,677		—
Liability Driven Investments		13,939		—		13,939		—
Total fair value	$	63,777	$	135	$	63,642	$	—


	December 31, 2017
	Total		Level 1		Level 2		Level 3
Asset Category:
Cash	$	256	$	256	$	—	$	—
Equity Funds:
U.S.		17,307		—		17,307		—
International		11,539		—		11,539		—
Fixed Income Securities:
UK Gilts		12,884		—		12,884		—
Other investments:
Diversified growth fund		22,900		—		22,900		—
Total fair value	$	64,886	$	256	$	64,630	$	—

Schedule of estimated future benefit payments


	Estimated
	Benefit
	Payments
Year ended December 31,
2019	$	2,193
2020		1,720
2021		1,736
2022		2,069
2023		1,943
2024 - 2028		15,838
Total	$	25,499

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies

Schedule of future minimum lease payments under capital leases and non-cancelable operating leases


	Capital		Operating
	Leases		Lease		Total
2019	$	20,080	$	38,057	$	58,137
2020		11,851		29,346		41,197
2021		9,018		22,239		31,257
2022		4,169		16,782		20,951
2023		2,244		12,302		14,546
Thereafter		3,617		18,874		22,491
Total minimum lease payments	$	50,979	$	137,600	$	188,579
Less: Amounts representing interest		(6,743)
Total net minimum lease payments		44,236
Less: Current portion of obligations under capital leases		(17,498)
Long-term portion of obligations under capital leases	$	26,738

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Measurement

Schedule of fair value of financial instruments


	Carrying		Fair		Fair Value Measurements
As of December 31, 2018	Amount		Value		Level 1		Level 2		Level 3
Recurring and nonrecurring assets and liabilities:
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Long-term debt		1,306,423		1,316,306		—		1,316,306		—
Interest rate swap		—		—		—		—		—
Goodwill		708,258		708,258		—		—		708,258


	Carrying		Fair		Fair Value Measurements
As of December 31, 2017	Amount		Value		Level 1		Level 2		Level 3
Recurring and nonrecurring assets and liabilities:
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Long-term debt		1,276,094		1,308,478		—		1,308,478		—
Interest rate swap		1,297		1,297		—		1,297		—
Goodwill		747,325		747,325		—		—		747,325

Schedule of net assets and liabilities classified as Level 3 for reconciliation


	December 31,
	2018		2017
Balance as of January 1,	$	721	$	721
Payments/Reductions		—		—
Balance as of December 31,	$	721	$	721

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

Stock-Based Compensation

Summary of the status of restricted stock units


				Average
		Weighted		Remaining	Aggregate
	Number	Average Grant		Contractual Life	Intrinsic Value
	of Shares	Date Fair Value		(Years)	($)
Shares granted	1,020,220		5.86	—		—
Shares forfeited	—		—	—		—
Shares vested	(126,923)		—	—		—
Nonvested as of December 31, 2018	893,297	$	5.86	0.76	$	5,239

Schedule of stock option activity


		Weighted		Average Remaining
		Average		Vesting Period	Aggregate
	Outstanding	Exercise Price		(Years)	Intrinsic Value ($)
Granted	3,570,300	$	6.06	—		—
Exercised	—		—	—		—
Canceled	—		—	—		—
Expired	—		—	—		—
Balance at December 31, 2018	3,570,300	$	6.06	2.92	$	9,590

Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2018

Related-Party Transactions

Schedule of payable balances with affiliates


	December 31,
	2018		2017
	Payable		Payable
HOV Services, Ltd	$	405	$	286
Rule 14		127		158
HGM		6,998		13,689
Apollo affiliated company		205		312
	$	7,735	$	14,445

Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Information

Schedule of revenue by segment information


	Year December 31, 2018
	ITPS	HS	LLPS	Total
Revenue	1,273,647	228,015	84,560		1,586,222
Cost of revenue	1,007,301	151,367	51,206		1,209,874
Selling, general and administrative expenses					184,651
Depreciation and amortization					145,485
Impairment of goodwill and other intangible assets					48,127
Related party expense					4,334
Interest expense, net					153,095
Loss on extinguishment of debt					1,067
Sundry expense (income), net					(3,271)
Other income, net					(3,030)
Net loss before income taxes				$	(154,110)


	Year ended December 31, 2017
	ITPS	HS	LLPS	Total
Revenue	827,110	233,595	91,619		1,152,324
Cost of revenue	620,719	152,864	55,560		829,143
Selling, general and administrative expenses					220,955
Depreciation and amortization					98,890
Impairment of goodwill and other intangible assets					69,437
Related party expense					33,431
Interest expense, net					128,489
Loss on extinguishment of debt					35,512
Sundry expense (income), net					2,295
Other income, net					(1,297)
Net loss before income taxes				$	(264,531)


	Year December 31, 2016
	ITPS	HS	LLPS	Total
Revenue	439,924	247,796	102,206		789,926
Cost of revenue	296,848	158,800	63,473		519,121
Selling, general and administrative expenses					130,437
Depreciation and amortization					79,639
Related party expense					10,493
Interest expense, net					109,414
Sundry expense (income), net					712
Net loss before income taxes				$	(59,890)

Schedule of revenues by principal geographic area


	Years ended December 31,
	2018		2017		2016
United States	$	1,347,516	$	1,000,827	$	654,565
Europe		211,314		136,531		131,287
Other		27,392		14,966		4,074
Total Consolidated Revenue	$	1,586,222	$	1,152,324	$	789,926

Selected Quarterly Financial Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Selected Quarterly Financial Results (Unaudited)

Selected Quarterly Financial Results (Unaudited)


	Q1 2018		Q2 2018		Q3 2018		Q4 2018
Revenue	$	393,167	$	410,382	$	383,030	$	399,643
Cost of revenue (exclusive of depreciation and amortization)		293,792		313,954		295,936		306,192
Selling, general and administrative expenses		45,595		46,723		44,913		47,420
Depreciation and amortization		38,019		36,368		35,041		36,057
Impairment of goodwill and other intangible assets		—		—		—		48,127
Related party expense		1,105		1,402		759		1,068
Operating income (loss)		14,656		11,935		6,381		(39,221)

Other expense (income), net:
Interest expense, net		38,017		38,527		38,339		38,212
Loss on extinguishment of debt		—		—		1,067		—
Sundry expense (income), net		(64)		(2,325)		(2,571)		1,689
Other income, net		(3,328)		(704)		(781)		1,783
Net loss before income taxes		(19,969)		(23,563)		(29,673)		(80,905)
Income tax (expense) benefit		(4,025)		(1,619)		733		(3,496)
Net loss		(23,994)		(25,182)		(28,940)		(84,401)
Cumulative dividends for Series A Preferred Stock		(914)		(914)		(914)		(914)
Net loss attributable to common stockholders	$	(24,908)	$	(26,096)	$	(29,854)	$	(85,315)
Weighted average outstanding common shares		152,140,117		152,259,589		151,663,670		152,343,823
Earnings per share:
Basic and diluted	$	(0.16)	$	(0.17)	$	(0.20)	$	(0.54)


	Q1 2017		Q2 2017		Q3 2017		Q4 2017
Revenue	$	218,260	$	209,382	$	338,393	$	386,289
Cost of revenue (exclusive of depreciation and amortization)		143,708		140,418		255,116		289,901
Selling, general and administrative expenses		35,581		34,998		102,048		48,328
Depreciation and amortization		21,320		21,406		28,052		28,112
Impairment of goodwill and other intangible assets		—		—		—		69,437
Related party expense		2,385		2,456		26,892		1,698
Operating income (loss)		15,266		10,104		(73,715)		(51,187)

Other expense (income), net:
Interest expense, net		26,219		27,869		37,652		36,749
Loss on extinguishment of debt		—		—		35,512		—
Sundry expense (income), net		2,724		(327)		563		(665)
Other income, net		—		—		—		(1,297)
Net loss before income taxes		(13,677)		(17,438)		(147,442)		(85,974)
Income tax (expense) benefit		(2,004)		(2,074)		37,002		27,322
Net loss		(15,681)		(19,512)		(110,440)		(58,652)
Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature		—		—		(16,375)		—
Cumulative dividends for Series A Preferred Stock		—		—		(1,225)		(1,264)
Net loss attributable to common stockholders	$	(15,681)	$	(19,512)	$	(128,040)	$	(59,916)
Weighted average outstanding common shares		67,827,401		69,721,078		138,895,681		150,569,877
Earnings per share:						—
Basic and diluted	$	(0.23)	$	(0.28)	$	(0.92)	$	(0.40)

Basis of Presentation and Summary of Significant Accounting Policies - Basis of Presentation (Details) - USD ($)		12 Months Ended
	Jul. 12, 2017	Dec. 31, 2017	Dec. 31, 2018
Common Stock, par value (in dollars per share)		$ 0.0001	$ 0.0001
SourceHOV
Fiscal period duration		365 days
Novitex
Fiscal period duration		172 days
Quinpario
Goodwill and other intangible assets recorded	$ 0
Net cash from trust	27,000,000
Accrued fees payable	$ 4,800,000

Basis of Presentation and Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Restricted Cash
Restricted cash not subject to legal restrictions	$ 10.6	$ 22.9
Obligation For Claim Payment
Restricted Cash
Restricted cash	$ 56.0	$ 42.5

Basis of Presentation and Summary of Significant Accounting Policies - Intangible Assets (Details)		12 Months Ended
	Jul. 12, 2017 employee	Dec. 31, 2018 category
Customer relationships \| Minimum
Intangible Assets
Weighted Average Useful Life (in years)		4 years
Customer relationships \| Maximum
Intangible Assets
Weighted Average Useful Life (in years)		16 years
Trademarks
Intangible Assets
Estimated useful life		1 year
Developed technology \| Minimum
Intangible Assets
Estimated useful life		5 years
Developed technology \| Maximum
Intangible Assets
Estimated useful life		8 years 6 months
Capitalized Software Costs \| Minimum
Intangible Assets
Estimated useful life		3 years
Capitalized Software Costs \| Maximum
Intangible Assets
Estimated useful life		5 years
Outsource contract costs
Intangible Assets
Number of principal categories \| category		2
Assembled workforce
Intangible Assets
Estimated useful life		4 years
Novitex
Intangible Assets
Weighted Average Useful Life (in years)	15 years 4 months 24 days
Novitex \| Customer relationships
Intangible Assets
Weighted Average Useful Life (in years)	16 years
Novitex \| Trademarks
Intangible Assets
Weighted Average Useful Life (in years)	9 years 6 months
Novitex \| Non compete agreements
Intangible Assets
Weighted Average Useful Life (in years)	1 year
Positions eliminated \| employee	4

Basis of Presentation and Summary of Significant Accounting Policies - Impairment of Long-Lived Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Basis of Presentation and Summary of Significant Accounting Policies
Impairment related to property, plant and equipment, customer relationships, trademarks, developed technology, capitalized software or outsourced contract costs	$ 0	$ 0	$ 0

Basis of Presentation and Summary of Significant Accounting Policies - Derivative Instruments and Hedging Activities (Details) - Interest rate swap - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Nov. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Gain on interest rate swaps		$ 2.5	$ 1.3
Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Term of hedging contract (in years)	3 years
Notional amount	$ 347.8	$ 339.1
Weighted Average Interest Rate		1.9725%

Basis of Presentation and Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenues
Revenue	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 386,289	$ 338,393	$ 209,382	$ 218,260	$ 1,586,222	$ 1,152,324	$ 789,926
United States
Disaggregation of Revenues
Revenue									1,347,516	1,000,827	654,565
Europe
Disaggregation of Revenues
Revenue									211,314	136,531	131,287
Other
Disaggregation of Revenues
Revenue									27,392	14,966	4,074
ITPS
Disaggregation of Revenues
Revenue									1,273,647	827,110	439,924
ITPS \| United States
Disaggregation of Revenues
Revenue									1,034,941	675,613	304,563
ITPS \| Europe
Disaggregation of Revenues
Revenue									211,314	136,531	131,287
ITPS \| Other
Disaggregation of Revenues
Revenue									27,392	14,966	4,074
HS
Disaggregation of Revenues
Revenue									228,015	233,595	247,796
HS \| United States
Disaggregation of Revenues
Revenue									228,015	233,595	247,796
LLPS
Disaggregation of Revenues
Revenue									84,560	91,619	102,206
LLPS \| United States
Disaggregation of Revenues
Revenue									$ 84,560	$ 91,619	$ 102,206

Basis of Presentation and Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Basis of Presentation and Summary of Significant Accounting Policies
Accounts receivable, net	$ 270,812	$ 229,704
Deferred revenues	16,940	13,717
Costs to obtain and fulfill a contract	18,624	22,929
Customer deposits	34,235	31,656
Unbilled receivables, net	39,498	$ 28,449
Revenue recognized from deferred revenue	13,400
Amortization of contract costs	$ 10,500
Practical expedient on incremental costs of obtaining contracts	true

Basis of Presentation and Summary of Significant Accounting Policies - Performance Obligations (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Basis of Presentation and Summary of Significant Accounting Policies
2019	$ 40,402
2020	23,310
2021	13,416
2022	4,780
2023	1,113
2024 and thereafter	771
Total	$ 83,792

Basis of Presentation and Summary of Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Basis of Presentation and Summary of Significant Accounting Policies
Research and development costs	$ 2.0	$ 2.3	$ 2.3

Basis of Presentation and Summary of Significant Accounting Policies - Beneficial Conversion Feature (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Basis of Presentation and Summary of Significant Accounting Policies
Preferred Stock, par value (in dollars per share)		$ 0.0001	$ 0.0001
Dividend equivalent on Series A Preferred Stock	$ 16,375	$ 0	$ 16,375

Basis of Presentation and Summary of Significant Accounting Policies - Net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended								12 Months Ended
	Jul. 12, 2017	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net loss per share
Net loss attributable to common stockholders		$ (85,315)	$ (29,854)	$ (26,096)	$ (24,908)	$ (59,916)	$ (128,040)	$ (19,512)	$ (15,681)	$ (166,172)	$ (223,149)	$ (48,103)
Weighted average common shares outstanding - basic and diluted										152,343,823	107,068,262	64,024,557
Loss per share - Basic and diluted		$ (0.54)	$ (0.20)	$ (0.17)	$ (0.16)	$ (0.40)	$ (0.92)	$ (0.28)	$ (0.23)	$ (1.09)	$ (2.08)	$ (0.75)
Series A Preferred Stock
Net loss per share
Number of anti-dilutive shares excluded from computation of diluted loss per share										5,586,344
Warrants
Net loss per share
Number of anti-dilutive shares excluded from computation of diluted loss per share	35,000,000

Basis of Presentation and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jan. 01, 2018
ASU 2016-15
Recently Adopted Accounting Pronouncements
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	$ 0.0
ASU 2016-18
Recently Adopted Accounting Pronouncements
Increase to net change in cash and cash equivalents		$ 16.6	$ 3.5
Total increase to cash and cash equivalents due to the inclusion of restricted cash		$ 42.5	$ 25.9	$ 22.4
Difference between Revenue Guidance in Effect before and after Topic 606 \| Accounts Receivable \| ASU 2014-09
Recently Adopted Accounting Pronouncements
Cumulative effect of accounting change					$ 1.4
Difference between Revenue Guidance in Effect before and after Topic 606 \| Accumulated Deficit \| ASU 2014-09
Recently Adopted Accounting Pronouncements
Cumulative effect of accounting change					$ (1.4)

Business Combinations - Novitex (Details) - USD ($) $ in Thousands		3 Months Ended
	Jul. 12, 2017	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2016
Business Combinations and Acquisitions
Common stock, shares outstanding	146,910,648	150,529,151	150,142,955
Preferred stock, shares outstanding	9,194,233	6,194,233	4,569,233
Outstanding debt			$ 1,394,001
Assets acquired:
Goodwill, excess/deficient purchase price		$ 747,325	$ 708,258	$ 373,291
Warrants
Business Combinations and Acquisitions
Warrants, shares outstanding	35,000,000		34,988,302
Novitex Business Combination
Business Combinations and Acquisitions
Debt acquired and notes issued	$ 1,400,000
Transaction costs		60,000
Novitex
Business Combinations and Acquisitions
Ownership percentage acquired	100.00%
Shares issued in business combination (in shares)	30,600,000
Amount of equity transactions	$ 244,800
Outstanding debt	420,500
Transaction costs	10,300
Business acquisition, interest expense paid	1,000
Measurement period adjustment to goodwill		$ 900
Assets acquired:
Cash and equivalents	8,428
Accounts receivable	87,474
Inventory	1,245
Prepaid expenses & other	13,974
Property and equipment, net	60,657
Identifiable intangible assets, net	251,060
Deferred charges and other assets	2,723
Other noncurrent assets	93
Goodwill, excess/deficient purchase price	406,060
Total identifiable assets acquired	831,714
Liabilities assumed:
Accounts payable	(29,444)
Short-term borrowings and current portion of long term debt	(11,335)
Accrued liabilities	(30,432)
Advanced billings and customer deposits	(18,926)
Long term debt	(15,704)
Deferred taxes	(46,991)
Other liabilities	(2,226)
Total liabilities assumed	(155,058)
Total Consideration	$ 676,656

Business Combinations - Intangible Assets - Novitex (Details) - Novitex - USD ($) $ in Thousands		12 Months Ended
	Jul. 12, 2017	Dec. 31, 2018
Intangible Assets
Weighted Average Useful Life (in years)	15 years 4 months 24 days
Fair value	$ 251,060
ITPS
Intangible Assets
Amount of tax deductible goodwill in business combination	$ 14,000
Revenue since acquisition date		$ 677,500
Net loss since acquisition date		$ 45,400
Trademarks
Intangible Assets
Weighted Average Useful Life (in years)	9 years 6 months
Fair value	$ 18,000
Customer relationships
Intangible Assets
Weighted Average Useful Life (in years)	16 years
Fair value	$ 230,000
Internally developed software-Connect Platform
Intangible Assets
Weighted Average Useful Life (in years)	5 years
Fair value	$ 1,710
Non compete agreements
Intangible Assets
Weighted Average Useful Life (in years)	1 year
Fair value	$ 1,350

Business Combinations - Transaction Costs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Transaction Costs
Equity issuance costs	$ 7,649
Debt issuance costs	40,900
HGM
Transaction Costs
Contract cancellation and advising fees	23,000
Novitex Business Combination
Transaction Costs
Transaction costs	$ 60,000

Business Combinations - Restructuring Charges (Details) - USD ($) $ in Millions		12 Months Ended
	Jul. 12, 2017	Dec. 31, 2018
Restructuring Charges
Severance expense		$ 0.4
Executives
Restructuring Charges
Severance expense	$ 4.6
Other terminations
Restructuring Charges
Severance expense	$ 0.1

Business Combinations - Asterion (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Apr. 10, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Combinations and Acquisitions
Accounts receivable, net	$ 270,812		$ 229,704
Current portion of long-term debt	29,237		20,565
Assets acquired:
Goodwill	$ 708,258		$ 747,325	$ 373,291
Asterion
Assets acquired:
Cash and equivalents		$ 5,595
Accounts receivable		25,740
Other current assets		2,282
Inventories, net		1,137
Property, plant and equipment, net		4,747
Deferred income tax assets		6,316
Other noncurrent assets		522
Intangible assets, net		3,525
Goodwill		1,493
Total identifiable assets acquired		51,357
Liabilities assumed:
Accounts payable		(5,596)
Income tax payable		(5)
Accrued liabilities		(6,593)
Accrued compensation and benefits		(7,079)
Deferred revenue		(880)
Current portion of long term debt		(994)
Customer deposits		(462)
Pension liability		(7,135)
Other long-term liabilities		(1,324)
Deferred income tax liabilities		(1,171)
Capital lease obligations, net of current maturities		(650)
Total liabilities assumed		(31,889)
Total Consideration		$ 19,468

Business Combinations - Intangible Assets - Asterion (Details) - Asterion - USD ($) $ in Thousands		12 Months Ended
	Apr. 10, 2018	Dec. 31, 2018
Intangible Assets
Revenue		$ 59,700
Customer relationships
Intangible Assets
Weighted Average Useful Life (in years)	9 years 6 months
Fair value	$ 3,516

Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accounts Receivable.
Billed receivables	$ 226,252	$ 199,201
Unbilled receivables	39,498	28,449
Other	9,421	5,779
Less: Allowance for doubtful accounts	(4,359)	(3,725)
Accounts Receivable, net	$ 270,812	$ 229,704

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Prepaid Expenses and Other Current Assets
Prepaids	$ 24,790	$ 22,869
Deposits	225	1,727
Prepaid expenses and other current assets	$ 25,015	$ 24,596

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 287,046	$ 264,562
Less: Accumulated depreciation and amortization	(154,060)	(131,654)
Property, plant and equipment, net	132,986	132,908
Depreciation expense
Depreciation expense	43,100	31,700	$ 22,800
Land
Property, Plant and Equipment, Net
Property, plant and equipment, gross	6,888	7,744
Buildings and improvements
Property, Plant and Equipment, Net
Property, plant and equipment, gross	20,518	18,726
Leasehold improvements
Property, Plant and Equipment, Net
Property, plant and equipment, gross	56,589	51,257
Vehicles
Property, Plant and Equipment, Net
Property, plant and equipment, gross	717	870
Machinery and equipment
Property, Plant and Equipment, Net
Property, plant and equipment, gross	62,746	62,249
Computer equipment and software
Property, Plant and Equipment, Net
Property, plant and equipment, gross	130,862	116,580
Furniture and fixtures
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 8,724	$ 7,136

Property, Plant and Equipment, Net - Useful Lives (Details)	12 Months Ended
	Dec. 31, 2018
Buildings and improvements \| Minimum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	7 years
Buildings and improvements \| Maximum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	40 years
Leasehold improvements \| Minimum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	3 years
Leasehold improvements \| Maximum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	12 years
Vehicles \| Minimum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	5 years
Vehicles \| Maximum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	7 years
Machinery and equipment \| Minimum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	5 years
Machinery and equipment \| Maximum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	15 years
Computer equipment and software \| Minimum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	3 years
Computer equipment and software \| Maximum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	8 years
Furniture and fixtures \| Minimum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	5 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	15 years

Intangibles Assets and Goodwill - Intangibles (Details) - USD ($) $ in Thousands		12 Months Ended
	Oct. 01, 2017	Dec. 31, 2018	Dec. 31, 2017
Intangibles
Gross Carrying Amount		$ 745,471	$ 700,249
Amortization		(338,450)	(235,265)
Intangible Asset, net		407,021	464,984
Impairment of goodwill		44,400
Customer relationships
Intangibles
Gross Carrying Amount		507,905	504,643
Amortization		(190,666)	(135,962)
Intangible Asset, net		317,239	368,681
Developed technology
Intangibles
Gross Carrying Amount		89,053	89,076
Amortization		(85,967)	(77,103)
Intangible Asset, net		3,086	11,973
Trade names
Intangibles
Gross Carrying Amount		9,400	13,100
Amortization		(3,100)
Intangible Asset, net		6,300	13,100
Impairment charge	$ 6,300	3,700	39,400
Additional impairment charge		33,000
Accumulated impairment losses		43,100	39,400
Outsource contract costs
Intangibles
Gross Carrying Amount		46,342	40,456
Amortization		(27,719)	(17,526)
Intangible Asset, net		18,623	22,930
Internally developed software-Connect Platform
Intangibles
Gross Carrying Amount		36,820	28,254
Amortization		(6,278)	(2,597)
Intangible Asset, net		30,542	25,657
Trademarks
Intangibles
Gross Carrying Amount		23,379	23,370
Amortization		(23,370)	(1,446)
Intangible Asset, net		9	21,924
Non compete agreements
Intangibles
Gross Carrying Amount		1,350	1,350
Amortization		(1,350)	(631)
Intangible Asset, net			719
Assembled workforce
Intangibles
Gross Carrying Amount		4,473
Intangible Asset, net		4,473
Purchased software
Intangibles
Gross Carrying Amount		26,749
Intangible Asset, net		$ 26,749
ITPS \| Trade names
Intangibles
Impairment charge			(23,100)
HS \| Trade names
Intangibles
Impairment charge			(9,600)
LLPS \| Trade names
Intangibles
Impairment charge			$ (6,600)

Intangibles Assets and Goodwill - Intangibles - Amortization expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Intangibles amortization expense
Accumulate amortization expense	$ 102,300	$ 67,200	$ 56,800
2019	64,685
2020	58,363
2021	50,077
2022	44,687
2023	35,929
Thereafter	147,107
Intangible assets, net	$ 400,848

Intangibles Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jul. 12, 2017
Goodwill
Goodwill, beginning of the period			$ 373,291	$ 747,325	$ 373,291
Additions				5,580	406,522
Reductions				(44,427)	(32,787)
Currency translation adjustments				(220)	299
Goodwill, end of the period	$ 708,258	$ 747,325		708,258	747,325
Accumulated impairment losses	137,900			137,900
Impairment of goodwill				44,400
Impairment of goodwill and other intangible assets	48,127	69,437		48,127	69,437
Sale of Meridian Consulting Group, LLC			2,700
Novitex
Goodwill
Goodwill associated with deferred tax liabilities assumed						$ 46,991
ITPS
Goodwill
Goodwill, beginning of the period			159,394	566,215	159,394
Additions				5,580	406,522
Currency translation adjustments				(220)	299
Goodwill, end of the period	571,575	566,215		571,575	566,215
ITPS \| Novitex
Goodwill
Additions					406,100
HS
Goodwill
Goodwill, beginning of the period			86,786	86,786	86,786
Goodwill, end of the period	86,786	86,786		86,786	86,786
LLPS
Goodwill
Goodwill, beginning of the period			$ 127,111	94,324	127,111
Reductions				(44,427)	(32,787)
Goodwill, end of the period	49,897	94,324		49,897	94,324
Impairment of goodwill	$ 44,400	$ 30,100		$ 44,400
Impairment of goodwill and other intangible assets					$ 30,100

Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accrued liabilities
Accrued taxes (exclusive of income taxes)	$ 10,606	$ 9,310
Accrued lease exit obligations	1,694	2,207
Accrued professional and legal fees	30,522	16,529
Deferred rent	1,421	1,204
Accrued interest	49,071	55,102
Accrued transaction costs	2,250	18,232
Other accruals	19,515	1,901
Total accrued liabilities including accrued interest	115,079	104,485
Other Long-term liabilities
Deferred revenue	432	424
Deferred rent	8,333	7,112
Accrued lease exit obligations	369	1,144
Accrued compensation expense	2,173	2,776
Other	4,093	3,248
Other Long-term liabilities	$ 15,400	$ 14,704

Long-Term Debt and Credit Facilities - Senior Secured Notes (Details) - Senior secured notes $ in Billions	Jul. 12, 2017 USD ($)
Debt instruments
Debt instrument face amount	$ 1.0
Interest rate (in percent)	10.00%

Long-Term Debt and Credit Facilities - Debt Refinancing (Details) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
	Jul. 12, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Debt instruments
Repayment of debt					$ 1,055,736
Cash paid for acquired debt				$ 34,810	423,797
Debt issuance costs					40,900
Original issue discount	$ 7,000
Expensed debt issuance costs	1,100
Capitalized debt issuance costs	27,800
Write off of unamortized issuance costs and discount costs				58,341
Gain (Loss) on Extinguishment of Debt		$ (1,067)	$ (35,512)	$ (1,067)	$ (35,512)
Original sourcehov term loans
Debt instruments
Debt issuance costs	3,300
Original issue discount	3,500
Write off of unamortized issuance costs and discount costs	30,500
Prepayment penalty on extinguishment of original term loan	5,000
Gain (Loss) on Extinguishment of Debt	5,000
Novitex \| Source HOV Related Debt [Member]
Debt instruments
Repayment of debt	1,050,700
Novitex \| Novitex Related Debt [Member]
Debt instruments
Cash paid for acquired debt	420,500
Senior secured term loan
Debt instruments
Debt issuance costs	28,900
Third party debt issuance costs	$ 2,800

Long-Term Debt and Credit Facilities - Senior Credit Facilities (Details) - USD ($) $ in Millions	Jul. 12, 2017	Dec. 31, 2018	Dec. 31, 2017
Debt instruments
Original issue discount	$ 7.0
First lien credit agreement
Debt instruments
Original issue discount		$ 8.3	$ 9.9
Senior secured term loan \| First lien credit agreement
Debt instruments
Debt instrument face amount	350.0
Original issue discount	$ 7.0
Principal percentage of each of first eight payments (as a percent)	0.60%
Principal percentage of each payment thereafter (as a percent)	1.30%
Senior secured revolving facility \| First lien credit agreement
Debt instruments
Maximum borrowing capacity	$ 100.0
Current borrowings outstanding	$ 0.0
Outstanding credit facility		$ 20.6	$ 20.9
LIBOR \| Senior secured term loan \| First lien credit agreement
Debt instruments
Applicable margin rate	7.50%
Floor interest rate	1.00%
LIBOR \| Senior secured revolving facility \| First lien credit agreement
Debt instruments
Applicable margin rate	7.00%
Base rate \| Senior secured term loan \| First lien credit agreement
Debt instruments
Applicable margin rate	6.50%
Base rate \| Senior secured revolving facility \| First lien credit agreement
Debt instruments
Applicable margin rate	6.00%

Long-Term Debt and Credit Facilities - Term Loan Repricing (Details) - USD ($) $ in Thousands	Jul. 13, 2018	Dec. 31, 2018	Dec. 31, 2017
Debt instruments
Outstanding amount of term loans	$ 343,400	$ 1,335,660	$ 1,296,659
Debt issuance costs			$ 40,900
First Amendment
Debt instruments
Proceeds from refinancing term loans	$ 343,400
Reduction in interest rate (in percentage)	1.00%
First Amendment \| Eurodollar
Debt instruments
Variable interest rate (as a percent)	1.00%
First Amendment \| Federal funds rate
Debt instruments
Variable interest rate (as a percent)	0.50%
First Amendment \| LIBOR
Debt instruments
Variable interest rate (as a percent)	1.00%
Interest rate (in percent)	6.50%
First Amendment \| Base rate
Debt instruments
Interest rate (in percent)	5.50%
Senior secured revolving facility \| First Amendment
Debt instruments
Debt issuance costs	$ 1,000
Amortization expense of debt issuance costs	1,000
Write off of previously recognized debt issuance costs	100
Maximum debt issuance costs for new lenders exceeded 10% test	$ 100

Long-Term Debt and Credit Facilities - Incremental Term Loan (Details) - USD ($) $ in Millions		3 Months Ended
	Jul. 13, 2018	Sep. 30, 2018
Incremental Term Loan
Debt instruments
Proceeds from refinancing term loans	$ 30.0
Percent of prepayment premium or fee	1.00%
Repricing and incremental of term loan
Debt instruments
Debt extinguishment costs		$ 1.1

Long-Term Debt and Credit Facilities - Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands	Jul. 12, 2017	Dec. 31, 2018	Jul. 13, 2018	Dec. 31, 2017
Debt instruments
Total debt		$ 1,335,660	$ 343,400	$ 1,296,659
Less: Current portion of long-term debt		(29,237)		(20,565)
Long-term debt, net of current maturities		1,306,423		1,276,094
Debt discount	$ 7,000
Capitalized debt issuance costs	$ 27,800
Senior secured notes
Debt instruments
Total debt		974,443		970,300
Debt discount		21,200		18,200
Unamortized debt issuance costs		7,300		8,500
Other
Debt instruments
Total debt		25,321		17,534
First lien credit agreement
Debt instruments
Total debt		335,896		308,825
Debt discount		8,300		9,900
Unamortized debt issuance costs		$ 24,500		$ 29,100

Long-Term Debt and Credit Facilities - Maturities of long-term debt (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jul. 13, 2018	Dec. 31, 2017
Maturities of long-term debt
2019	$ 29,237
2020	23,156
2021	22,824
2022	19,084
2023	1,299,700
Total long-term debt	1,394,001
Less: Unamortized discount and debt issuance costs	(58,341)
Total debt	$ 1,335,660	$ 343,400	$ 1,296,659

INCOME TAXES - Components And Provisions (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Components income/ (loss) before income taxes
United States									$ (173,506)	$ (279,822)	$ (71,171)
Foreign									19,396	15,291	11,281
Income/ (loss) before income taxes									(154,110)	(264,531)	(59,890)
Provision for federal, state, and foreign income taxes
Federal - Current									1,308	(722)
Federal - Deferred									(1,998)	(59,425)	(8,961)
State - Current									311	1,405	830
State - Deferred									2,330	(7,176)	(2,740)
Foreign - Current									3,435	5,794	3,112
Foreign - Deferred									3,021	(122)	(4,028)
Income tax expense (benefit)	$ 3,496	$ (733)	$ 1,619	$ 4,025	$ (27,322)	$ (37,002)	$ 2,074	$ 2,004	$ 8,407	$ (60,246)	$ (11,787)

INCOME TAXES - Income tax reconciliation (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
	Jan. 01, 2018	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes
Statutory tax rate	21.00%									21.00%	35.00%
Reconciliation of effective income tax amount
Tax at statutory rate										$ (32,363)	$ (92,586)	$ (20,962)
State income taxes										(6,698)	(4,219)	1,483
Foreign income taxes										1,235	(565)	(1,356)
Nondeductible transaction costs											27,311
Nondeductible goodwill impairment										9,002	10,497
Permanent differences										940	438	4,405
Changes in valuation allowance										20,248	(7,285)	6,075
Unremitted earnings										4,735		1,686
Changes in U.S. tax rates											(4,784)
Deemed mandatory repatriation											7,441
GILTI Inculsion										2,289
Expiration of tax attributes										8,354
Other										665	3,506	(3,118)
Income tax expense (benefit)		$ 3,496	$ (733)	$ 1,619	$ 4,025	$ (27,322)	$ (37,002)	$ 2,074	$ 2,004	8,407	(60,246)	$ (11,787)
Provisional income tax benefit											9,400
Increase to income tax expense related to remeasurement of deferred tax assets and liabilities under TCJA										3,700
Additional measurement-period adjustment, transition tax											2,400
Provisional income tax expense											$ 9,100
Tax impacts of GILTI										2,300
Tax expense related to BEAT										$ 1,300

INCOME TAXES - Components of deferred income tax liabilities and assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2015	Dec. 31, 2017
Deferred income tax liabilities:
Book over tax basis of intangible and fixed assets	$ (94,649)		$ (113,844)
Unremitted foreign earnings	(4,735)
Other, net	(4,078)		(2,684)
Total deferred income tax liabilities	(103,462)		(116,528)
Deferred income tax assets:
Allowance for doubtful accounts and receivable adjustments	1,676		1,401
Inventory	1,629		1,807
Accrued liabilities	9,260		9,586
Net operating loss and tax credit carryforwards	184,381		196,633
Tax deductible goodwill	3,147		3,862
Disallowed Interest Deduction	27,005
Other, net	16,841		15,518
Total deferred income tax assets	243,939		228,807
Valuation allowance	(135,465)		(108,622)
Total net deferred income tax assets	5,012		$ 3,657
Increase (decrease) in valuation allowance	26,800
Federal
Deferred income tax assets:
Valuation allowance related to disallowed interest deduction	21,800
Valuation allowance related to limitation of utilization of NOL carryforwards	76,200
Increase (decrease) in valuation allowance		$ (3,500)
State
Deferred income tax assets:
Valuation allowance related to disallowed interest deduction	2,600
Valuation allowance related to limitation of utilization of NOL carryforwards	8,700
Foreign.
Deferred income tax assets:
Valuation allowance related to disallowed interest deduction	$ 26,200

INCOME TAXES - Net operating loss carryforwards (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Operating loss carryforwards
Tax deductible goodwill	$ 52,300
2014 Reorganization
Operating loss carryforwards
Tax deductible goodwill	22,800
Trans Centra Inc
Operating loss carryforwards
Tax deductible goodwill	21,700
Novitex
Operating loss carryforwards
Tax deductible goodwill	7,800
Federal
Operating loss carryforwards
Net operating loss carryforwards	680,205
Federal \| 2019 - 2022
Operating loss carryforwards
Net operating loss carryforwards	107,956
Federal \| 2023 - 2027
Operating loss carryforwards
Net operating loss carryforwards	139,102
Federal \| 2028 - 2037
Operating loss carryforwards
Net operating loss carryforwards	433,147
State
Operating loss carryforwards
Net operating loss carryforwards	472,713
State \| 2019 - 2022
Operating loss carryforwards
Net operating loss carryforwards	29,986
State \| 2023 - 2027
Operating loss carryforwards
Net operating loss carryforwards	79,111
State \| 2028 - 2037
Operating loss carryforwards
Net operating loss carryforwards	363,616
Foreign. \| 2021 - 2024
Operating loss carryforwards
Net operating loss carryforwards	35,800
Foreign. \| 2023 \| Exela Poland
Operating loss carryforwards
Net operating loss carryforwards	800
Foreign. \| BancTec Holding N.V. and BancTec B,V. \| 2021 - 2024
Operating loss carryforwards
Net operating loss carryforwards	$ 4,100

INCOME TAXES - Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes
Recognized tax benefit	$ 700
Accrued interest and penalties on unrecognized tax benefits	2,300	$ 3,000
Interest and penalties recorded on unrecognized tax benefits	(400)
Reconciliation of total amounts of unrecognized tax benefits
Balance at beginning of the period	1,047	999	$ 1,287
Gross increases - tax positions in prior period	301	48
Gross decreases - tax positions in prior period			(31)
Gross increases - tax positions in current period	128		45
Settlement			(103)
Lapse of statute of limitations			(199)
Balance at end of the period	1,476	$ 1,047	$ 999
Deferred taxes provided for withholding or other taxes for repatriation of foreign earnings	0
Undistributed earnings from foreign subsidiaries	109,700
Foreign withholding taxes on the undistributed earnings	$ 4,700

Employee Benefit Plans - Germany & UK (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension plans
Plan assets	$ 63,777	$ 64,886	$ 52,538
Weighted average expected long-term rate	3.87%
German Pension Plan \| Unfunded Plan [Member]
Pension plans
Plan assets	$ 0
German Pension Plan \| Unfunded Plan [Member] \| Minimum
Pension plans
Qualifying period	10 years
U.K. Pension Plan
Pension plans
Weighted average expected long-term rate	3.87%	4.34%
U.K. Pension Plan \| Minimum
Pension plans
Minimum required years prior to retirement for eligibility	3 years
Historical performance period	15 years	10 years
U.K. Pension Plan \| Maximum
Pension plans
Historical performance period	20 years	20 years
Asterion Pension Plan
Pension plans
Weighted average expected long-term rate	1.80%
Asterion Pension Plan \| Minimum
Pension plans
Minimum required years prior to retirement for eligibility	3 years
Norway Pension Plan
Pension plans
Weighted average expected long-term rate	4.30%	4.10%
Norway Pension Plan \| Minimum
Pension plans
Minimum required years prior to retirement for eligibility	3 years
Historical performance period	10 years
Norway Pension Plan \| Maximum
Pension plans
Historical performance period	20 years

Employee Benefit Plans - Funded Status (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Change in Benefit Obligation:
Benefit obligation at beginning of period	$ 91,514	$ 82,320
Additional obligation due to acquisition	5,317
Service cost	82	8
Interest cost	2,319	2,288
Actuarial loss	(5,643)	1,021
Plan amendments	2,490
Benefits paid	(1,436)	(1,797)
Foreign-exchange rate changes	(5,113)	7,674
Benefit obligation at end of year	89,530	91,514
Change in Plan Assets:
Fair value of plan assets at beginning of period	64,886	52,538
Additional obligation due to acquisition	2,189
Actual return on plan assets	(1,434)	6,579
Employer contributions	2,477	2,297
Benefits paid	(1,415)	(1,782)
Foreign-exchange rate changes	(3,734)	5,254
Fair value of plan assets at end of period	63,777	64,886
Funded status at end of year			$ (26,561)	$ (26,628)
Net amount recognized in the Consolidated Balance Sheets:
Accrued compensation and benefits (a)			(1,811)	(1,551)
Pension liability (b)			(25,269)	(25,496)
Minimum regulatory benefit for Philippine legal entity			500
Amounts recognized in accumulated other comprehensive loss, net of tax consist of:
Net actuarial loss	(9,301)	(11,054)
Net amount recognized in accumulated other comprehensive loss			9,301	11,054
Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate fair value of plan assets	64,886	52,538	63,777	64,886
Overfunded Plan [Member]
Change in Plan Assets:
Fair value of plan assets at end of period	62,969
Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate fair value of plan assets	62,969		62,969
Underfunded Plan [Member]
Change in Plan Assets:
Fair value of plan assets at beginning of period	64,886
Fair value of plan assets at end of period		64,886
Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate fair value of plan assets	64,886	64,886		64,886
Underfunded Or Unfunded Plan [Member]
Change in Plan Assets:
Fair value of plan assets at beginning of period	64,886
Fair value of plan assets at end of period	62,969	64,886
Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate projected benefit obligation			89,530	91,514
Aggregate accumulated benefit obligation			89,530	91,514
Aggregate fair value of plan assets	$ 64,886	$ 64,886	62,969	64,886
U.K. And Asterion Plans
Net amount recognized in the Consolidated Balance Sheets:
Pension liability (b)			(24,750)	$ (25,077)
Germany And Norway Pension Plans
Net amount recognized in the Consolidated Balance Sheets:
Pension liability (b)			$ (2,300)

Employee Benefit Plans - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Benefit Costs
Estimated amortization of actuarial loss	$ 1,900
Estimated amortization of prior service cost	100
Net actuarial loss	(9,301)	$ (11,054)
Deferred tax benefit	$ 1,700	$ 2,000

Employee Benefit Plans - Pension and Postretirement Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net periodic benefit cost
Service cost	$ 82	$ 8
Interest cost	2,319	2,288
Pension And Postretirement [Member]
Net periodic benefit cost
Service cost	82	8	$ 11
Interest cost	2,351	2,288	2,667
Expected return on plan assets	(1,862)	(2,392)	(2,623)
Amortization of prior service cost	139	(134)	(141)
Amortization of net (gain) loss		2,063	891
Net periodic benefit cost	$ 710	$ 1,833	$ 805

Employee Benefits Plans - Valuation (Details)	12 Months Ended
Employee Benefits Plans - Valuation (Details)	Dec. 31, 2018	Dec. 31, 2017
Valuation
Maximum percentage of unrecognized gains (losses) for amortization	10.00%
Amortization period for gains (losses) of defined benefit plans	15 years
Weighted-average assumptions used to determine net periodic benefit cost:
Expected asset return	3.87%
U.K. Pension Plan
Weighted-average assumptions used to determine benefit obligations:
Discount rate	2.80%	2.50%
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	2.10%	2.70%
Expected asset return	3.87%	4.34%
U.K. Pension Plan \| Minimum
Valuation
Historical performance period	15 years	10 years
U.K. Pension Plan \| Maximum
Valuation
Historical performance period	20 years	20 years
Asterion Pension Plan
Weighted-average assumptions used to determine benefit obligations:
Discount rate	1.80%
Rate of compensation increase	2.50%
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	1.80%
Expected asset return	1.80%
Rate of compensation increase	2.50%
Germany Pension Plan
Weighted-average assumptions used to determine benefit obligations:
Discount rate	1.90%	1.70%
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	1.90%
Expected asset return	3.68%
Norway Pension Plan
Weighted-average assumptions used to determine benefit obligations:
Discount rate	2.60%	2.40%
Rate of compensation increase	1.75%	1.50%
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	2.60%	2.40%
Expected asset return	4.30%	4.10%
Rate of compensation increase	1.75%	1.50%
Norway Pension Plan \| Minimum
Valuation
Historical performance period	10 years
Norway Pension Plan \| Maximum
Valuation
Historical performance period	20 years

Employee Benefit Plans - Plan Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Weighted average allocation of plan assets (as a percent)	100.00%	100.00%	100.00%
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 63,777	$ 64,886	$ 52,538
Minimum
Defined Benefit Plan Disclosure [Line Items]
Investment objective period to earn long-term expected rate of return	15 years
Maximum
Defined Benefit Plan Disclosure [Line Items]
Investment objective period to earn long-term expected rate of return	20 years
Level 1
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 135	256
Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	63,642	64,630
Cash.
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	135	256
Cash. \| Level 1
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 135	$ 256
US and international equities
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Weighted average allocation of plan assets (as a percent)	28.00%	45.00%	42.00%
US equities
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 10,654	$ 17,307
US equities \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	10,654	17,307
International equities
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	7,102	11,539
International equities \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 7,102	$ 11,539
UK government and corporate bonds
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Weighted average allocation of plan assets (as a percent)	10.00%	20.00%	21.00%
Corporate bonds
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 6,270
Corporate bonds \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 6,270
UK Gilts
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets		$ 12,884
UK Gilts \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets		$ 12,884
Diversified growth fund
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Weighted average allocation of plan assets (as a percent)	40.00%	35.00%	37.00%
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 25,677	$ 22,900
Diversified growth fund \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 25,677	$ 22,900
Liability Driven Investments [Member]
Defined Benefit Plan, Assets, Target Allocations [Abstract]
Weighted average allocation of plan assets (as a percent)	22.00%
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 13,939
Liability Driven Investments [Member] \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 13,939

Employee Benefit Plans - Contributions and Future Benefit Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Employer Contributions
Total employer contributions to pension plans	$ 2,300	$ 3,100
Employer contributions to pension plans expected during 2019		2,200
Estimated Future Benefit Payments
2019		2,193
2020		1,720
2021		1,736
2022		2,069
2023		1,943
2024 - 2028		15,838
Total estimated future benefit payments		$ 25,499

Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Future minimum payments under capital leases
2019	$ 20,080
2020	11,851
2021	9,018
2022	4,169
2023	2,244
Thereafter	3,617
Total minimum lease payments	50,979
Less: Amounts representing interest	(6,743)
Total net minimum lease payments	44,236
Less: Current portion of obligations under capital leases	(17,498)	$ (15,611)
Long-term portion of obligations under capital leases	26,738	25,958
Future minimum payments under operating lease
2019	38,057
2020	29,346
2021	22,239
2022	16,782
2023	12,302
Thereafter	18,874
Total minimum lease payments	137,600
Total future minimum lease payments
2019	58,137
2020	41,197
2021	31,257
2022	20,951
2023	14,546
Thereafter	22,491
Total minimum lease payments	188,579
Rent expense for operating leases	$ 83,800	$ 60,000	$ 36,700

Commitments and Contingencies - Contract-Related Contingencies (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
HGM acquisition of BancTec, Inc.
Other Commitments [Line Items]
Contingent liability related to prior acquisition	$ 0.7	$ 0.7

Fair Value Measurement (Details) - USD ($) $ in Thousands	12 Months Ended
Fair Value Measurement (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Jul. 12, 2017	Dec. 31, 2016
Assets and liabilities measured at fair value
Impairment of goodwill	$ 44,400
Carrying amounts and estimated fair values of financial instruments
Goodwill	$ 708,258	$ 747,325		$ 373,291
Senior secured term loan
Assets and liabilities measured at fair value
Fair value percentage	98.00%
Senior secured notes
Assets and liabilities measured at fair value
Fair value percentage	95.50%
Novitex
Assets and liabilities measured at fair value
Other long term debt	$ 11,700
Carrying amounts and estimated fair values of financial instruments
Goodwill			$ 406,060
Level 3
Reconciliation of net assets and liabilities
Balance as of Beginning of Period	721	721
Payments/Reductions
Balance as of End of Period	721	721
Carrying Amount
Carrying amounts and estimated fair values of financial instruments
Acquisition contingent liability	721	721
Long-term debt	1,306,423	1,276,094
Interest rate swap asset		1,297
Goodwill	708,258	747,325
Fair Value
Carrying amounts and estimated fair values of financial instruments
Acquisition contingent liability	721	721
Long-term debt	1,316,306	1,308,478
Interest rate swap asset		1,297
Goodwill	708,258	747,325
Fair Value \| Level 2
Carrying amounts and estimated fair values of financial instruments
Long-term debt	1,316,306	1,308,478
Interest rate swap asset		1,297
Fair Value \| Level 3
Carrying amounts and estimated fair values of financial instruments
Acquisition contingent liability	721	721
Goodwill	$ 708,258	$ 747,325

Stock-Based Compensation (Details) - RSU's - 2013 Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Jul. 12, 2017
Stock-based compensation
Restricted stock units outstanding		24,535
Unvested RSU's	2,675	9,880
Weighted average remaining contractual life (in years)	3 months 29 days
Aggregate Intrinsic Value	$ 1,633
Minimum
Stock-based compensation
Initial vesting period of remaining RSU's vesting in April 2019	3 years
Maximum
Stock-based compensation
Initial vesting period of remaining RSU's vesting in April 2019	4 years

Stock-Based Compensation - Stock Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Dec. 20, 2017	Dec. 31, 2018	Dec. 31, 2017
Exela 2018 Stock Incentive Plan
Common stock shares authorized		1,600,000,000	1,600,000,000
RSU's \| 2018 Plan
Number of Shares
Shares granted		1,020,220
Shares forfeited		(126,923)
Nonvested at the end of the period (in shares)		893,297
Weighted Average Grant Date Fair Value
Shares granted		$ 5.86
Nonvested at end of period		$ 5.86
Average Remaining Contractual Life (Years)
Weighted average remaining contractual life (in years)		9 months 4 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value		$ 5,239
Stock options
Exela 2018 Stock Incentive Plan
Expiration of stock options		10 years
Stock options \| 2018 Plan
Exela 2018 Stock Incentive Plan
Maximum percentage of fair market value per share granted	100.00%
Expiration of stock options	10 years
Stock options \| 2018 Plan \| Minimum
Exela 2018 Stock Incentive Plan
Vesting period		2 years
Stock options \| 2018 Plan \| Maximum
Exela 2018 Stock Incentive Plan
Vesting period		4 years
Common Stock \| 2018 Plan
Exela 2018 Stock Incentive Plan
Common stock shares authorized	8,196,482

Stock-Based Compensation - Options (Details) - USD ($)		12 Months Ended
Stock-Based Compensation - Options (Details) - USD ($)	Dec. 20, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
2013 Plan and 2018 Plan
Unrecognized compensation expense
Unrecognized compensation expense		$ 13,900,000
2013 Plan and 2018 Plan \| Selling, general and administrative expense
Stock-based compensation
Total compensation expense		$ 7,600,000	$ 6,700,000	$ 7,100,000
Stock options
Stock-based compensation
Expiration of stock options		10 years
Stock options \| 2018 Plan
Stock-based compensation
Expiration of stock options	10 years
Weighted average remaining contractual life		9 years 8 months 5 days
Outstanding
Granted (in shares)		3,570,300
Balance at the end of period (in shares)		3,570,300
Weighted Average Exercise Price
Granted		$ 6.06
Balance at the end of period		$ 6.06
Additional information
Average Remaining Vesting Period		2 years 11 months 1 day
Aggregate Intrinsic Value		$ 9,590,000
Stock options \| 2018 Plan \| Minimum
Stock-based compensation
Vesting period		2 years
Stock options \| 2018 Plan \| Maximum
Stock-based compensation
Vesting period		4 years

Stockholders’ Equity - Common Stock (Details)		1 Months Ended	12 Months Ended
Stockholders’ Equity - Common Stock (Details)	Jul. 12, 2017 shares	Jan. 31, 2018 shares	Dec. 31, 2018 Vote $ / shares shares	Dec. 31, 2017 $ / shares shares
Common Stock
Common Stock, shares authorized			1,600,000,000	1,600,000,000
Common Stock, shares, outstanding	146,910,648		150,142,955	150,529,151
Common stock, par value (in dollars per share) \| $ / shares			$ 0.0001	$ 0.0001
Number of voting rights entitled for each share of Common Stock held \| Vote			1
Novitex
Common Stock
Shares issued in business combination (in shares)	30,600,000
Series A Preferred Stock
Common Stock
Preferred Stock, shares converted		1,625,000
Common Stock
Common Stock
Preferred Stock, shares converted			(1,986,767)	(3,667,803)
Preferred shares converted to common		1,987,767

Stockholders’ Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Jul. 21, 2017	Jul. 12, 2017
Preferred Stock
Preferred stock, shares authorized	20,000,000				20,000,000		20,000,000	20,000,000
Preferred stock, shares outstanding	4,569,233				6,194,233		4,569,233	6,194,233		9,194,233
Preferred Stock, par value (in dollars per share)	$ 0.0001				$ 0.0001		$ 0.0001	$ 0.0001
Cumulative dividends for Series A Preferred Stock	$ 914	$ 914	$ 914	$ 914	$ 1,264	$ 1,225	$ 3,655	$ 2,489
Series A Preferred Stock
Preferred Stock
Preferred stock, shares outstanding	4,569,233						4,569,233
Preferred Stock, par value (in dollars per share)	$ 0.0001						$ 0.0001
Conversion ratio to Common Stock	1.2226						1.2226
Conversion price (in dollars per share)	$ 8.80						$ 8.80
Third anniversary expected liquidation preference (in dollars per share)	$ 10.75911						$ 10.75911
Number of Common Stock issuable upon conversion of all convertible Preferred Shares	11,240,869						11,240,869
Additional common stock issuable upon conversion of remaining convertible shares	5,586,344						5,586,344
Preferred Stock, cumulative dividends rate (in percentage)							10.00%
Cumulative dividends for Series A Preferred Stock							$ 3,700
Cumulative accrued but unpaid dividends									$ 6,100
Cumulative preferred dividends (in dollars per share)							$ 0.8

Stockholders’ Equity - Treasury Stock (Details) - $ / shares		12 Months Ended
	Nov. 08, 2017	Dec. 31, 2018	Dec. 31, 2017
Stockholders’ Equity
Treasury stock, shares authorized	5,000,000
Term of share buyback program	24 months
Treasury stock purchases (in shares)		2,499,885
Treasury stock, average share price		$ 4.71
Treasury shares		2,549,185	49,300

Stockholders’ Equity - Warrants (Details)	12 Months Ended
Stockholders’ Equity - Warrants (Details)	Dec. 31, 2018 item $ / shares shares	Jul. 12, 2017 shares
Warrants
Number of Common Stock each warrant may purchase	0.5
Exercise price of warrant per half of Common Stock \| $ / shares	$ 5.75
Exercise price of warrant per one Common Stock (in US$ per share) \| $ / shares	$ 11.50
Expiration of warrants from business acquisition date	5 years
Warrant redemption price (in US$ per share) \| $ / shares	$ 0.01
Minimum written notice period of redemption	30 days
Minimum common stock sales price for exercise of redemption right (in US$ per share) \| $ / shares	$ 24.00
Minimum trading days within 30-day period at $24 per share for exercise of redemption right \| item	20
Trading day period for exercise of redemption right	30 days
Period of the 30-day period prior to notice of redemption	3 days
Period of current registration effectivity prior to 30-day trading period	5 days
Warrants
Warrants
Warrants outstanding	34,988,302	35,000,000
Warrants \| IPO
Warrants
Units issued	35,000,000
Common stock included in units	1
Warrants included in units	1

Related-Party Transactions - Consulting Agreement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related-Party Transactions
Amount of related party transaction	$ 1,068	$ 759	$ 1,402	$ 1,105	$ 1,698	$ 26,892	$ 2,456	$ 2,385	$ 4,334	$ 33,431	$ 10,493
Consulting Services [Member] \| Executive Vice President Treasury and Business Affairs
Related-Party Transactions
Amount of related party transaction									100	500	500
Consulting Services [Member] \| Oakana Holdings Inc
Related-Party Transactions
Amount of related party transaction									$ 200	$ 100	$ 0

Related-Party Transactions - Relationship with HandsOn Global Management (Details) $ in Thousands		3 Months Ended								12 Months Ended
	Jul. 13, 2017 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 USD ($) agreement	Dec. 31, 2015 agreement
Related-Party Transactions
Amount of related party transaction		$ 1,068	$ 759	$ 1,402	$ 1,105	$ 1,698	$ 26,892	$ 2,456	$ 2,385	$ 4,334	$ 33,431	$ 10,493
Revenue share percentage												75.00%	75.00%
HGM
Related-Party Transactions
Number of master agreements \| agreement												10	10
Revenue share percentage												25.00%	25.00%
HGM \| Management Fees [Member]
Related-Party Transactions
Amount of related party transaction	$ 0										6,000	$ 6,000
HGM \| Travel Expense [Member]
Related-Party Transactions
Amount of related party transaction											900	1,700
HGM \| Travel Expense [Member] \| Maximum
Related-Party Transactions
Amount of related party transaction										100
HGM \| Contract Cancellation And Advising Fees [Member]
Related-Party Transactions
Amount of related party transaction										0	23,000
Amount of related party transaction paid by issuance of common stock											$ 10,000
Number of shares issued in payment of related party transaction \| shares											1,250,000
Rule 14 \| Master Services Agreement Fees [Member]
Related-Party Transactions
Amount of related party transaction										$ 600	$ 600	$ 500

Related-Party Transactions - Relationship with HOV Services, Ltd (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related-Party Transactions
Amount of related party transaction	$ 1,068	$ 759	$ 1,402	$ 1,105	$ 1,698	$ 26,892	$ 2,456	$ 2,385	$ 4,334	$ 33,431	$ 10,493
HOV Services, Ltd \| Data Capture And Technology Services [Member] \| Cost of revenue
Related-Party Transactions
Amount of related party transaction									$ 1,600	$ 1,700	$ 1,700

Related Party Transactions - Relationship with Apollo Global Management, LLC (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) director	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Related-Party Transactions
Amount of related party transaction	$ 1,068	$ 759	$ 1,402	$ 1,105	$ 1,698	$ 26,892	$ 2,456	$ 2,385	$ 4,334	$ 33,431	$ 10,493
Apollo
Related-Party Transactions
Number of directors right to designate \| director									2
Amount of related party transaction										0	0
Apollo \| Master Services Agreement Fees [Member]
Related-Party Transactions
Amount of related party transaction									$ 600	300	0
Caesars \| Master Services Agreement Fees [Member]
Related-Party Transactions
Amount of related party transaction									4,100	1,200	0
ADT LLC \| Master Services Agreement Fees [Member]
Related-Party Transactions
Amount of related party transaction									600		0
ADT LLC \| Master Services Agreement Fees [Member] \| Maximum
Related-Party Transactions
Amount of related party transaction										100
Diamond Resorts Centralized Services \| Master Services Agreement Fees [Member]
Related-Party Transactions
Amount of related party transaction									5,700
Diamond Resorts Centralized Services \| Master Services Agreement Fees [Member] \| Cost of revenue
Related-Party Transactions
Amount of related party transaction									100	0	0
Presidio Group \| Master Services Agreement Fees [Member]
Related-Party Transactions
Amount of related party transaction									$ 700	$ 300	$ 0

Related-Party Transactions - Payable Balance with Affiliates (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	$ 7,735	$ 14,445
HOV Services, Ltd
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	405	286
Rule 14
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	127	158
HGM
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	6,998	13,689
Apollo
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	$ 205	$ 312

Segment Information - Revenue by segment information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Segment information
Number of segments \| segment									3
Revenue	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 386,289	$ 338,393	$ 209,382	$ 218,260	$ 1,586,222	$ 1,152,324	$ 789,926
Cost of revenue	306,192	295,936	313,954	293,792	289,901	255,116	140,418	143,708	1,209,874	829,143	519,121
Selling, general and administrative expenses	47,420	44,913	46,723	45,595	48,328	102,048	34,998	35,581	184,651	220,955	130,437
Depreciation and amortization	36,057	35,041	36,368	38,019	28,112	28,052	21,406	21,320	145,485	98,890	79,639
Impairment of goodwill and other intangible assets	48,127				69,437				48,127	69,437
Related party expense	1,068	759	1,402	1,105	1,698	26,892	2,456	2,385	4,334	33,431	10,493
Interest expense, net	38,212	38,339	38,527	38,017	36,749	37,652	27,869	26,219	153,095	128,489	109,414
Loss on extinguishment of debt		1,067				35,512			1,067	35,512
Sundry expense (income),net	(1,689)	2,571	2,325	64	665	(563)	327	(2,724)	3,271	(2,295)	(712)
Other income, net	1,783	(781)	(704)	(3,328)	(1,297)				(3,030)	(1,297)
Net loss before income taxes	$ (80,905)	$ (29,673)	$ (23,563)	$ (19,969)	$ (85,974)	$ (147,442)	$ (17,438)	$ (13,677)	(154,110)	(264,531)	(59,890)
ITPS
Segment information
Revenue									1,273,647	827,110	439,924
Cost of revenue									1,007,301	620,719	296,848
HS
Segment information
Revenue									228,015	233,595	247,796
Cost of revenue									151,367	152,864	158,800
LLPS
Segment information
Revenue									84,560	91,619	102,206
Cost of revenue									$ 51,206	$ 55,560	$ 63,473

Segment and Geographic Area Information - Revenues by principal geographic area (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues by principal geographic area
Revenue	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 386,289	$ 338,393	$ 209,382	$ 218,260	$ 1,586,222	$ 1,152,324	$ 789,926
United States
Revenues by principal geographic area
Revenue									1,347,516	1,000,827	654,565
Europe
Revenues by principal geographic area
Revenue									211,314	136,531	131,287
Other
Revenues by principal geographic area
Revenue									$ 27,392	$ 14,966	$ 4,074

Selected Quarterly Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Selected Quarterly Financial Results (Unaudited)
Revenue from Contract with Customer, Excluding Assessed Tax	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 386,289	$ 338,393	$ 209,382	$ 218,260	$ 1,586,222	$ 1,152,324	$ 789,926
Cost of revenue (exclusive of depreciation and amortization)	306,192	295,936	313,954	293,792	289,901	255,116	140,418	143,708	1,209,874	829,143	519,121
Selling, general and administrative expenses	47,420	44,913	46,723	45,595	48,328	102,048	34,998	35,581	184,651	220,955	130,437
Depreciation and amortization	36,057	35,041	36,368	38,019	28,112	28,052	21,406	21,320	145,485	98,890	79,639
Impairment of goodwill and other intangible assets	48,127				69,437				48,127	69,437
Related party expense	1,068	759	1,402	1,105	1,698	26,892	2,456	2,385	4,334	33,431	10,493
Operating (loss) income	(39,221)	6,381	11,935	14,656	(51,187)	(73,715)	10,104	15,266	(6,249)	(99,532)	50,236
Other expense (income), net:
Interest expense, net	38,212	38,339	38,527	38,017	36,749	37,652	27,869	26,219	153,095	128,489	109,414
Loss on extinguishment of debt		1,067				35,512			1,067	35,512
Sundry expense (income),net	(1,689)	2,571	2,325	64	665	(563)	327	(2,724)	3,271	(2,295)	(712)
Other income, net	1,783	(781)	(704)	(3,328)	(1,297)				(3,030)	(1,297)
Net loss before income taxes	(80,905)	(29,673)	(23,563)	(19,969)	(85,974)	(147,442)	(17,438)	(13,677)	(154,110)	(264,531)	(59,890)
Income tax (expense) benefit	(3,496)	733	(1,619)	(4,025)	27,322	37,002	(2,074)	(2,004)	(8,407)	60,246	11,787
Net loss	(84,401)	(28,940)	(25,182)	(23,994)	(58,652)	(110,440)	(19,512)	(15,681)	(162,517)	(204,285)	(48,103)
Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature						(16,375)			0	(16,375)
Cumulative dividends for Series A Preferred Stock	(914)	(914)	(914)	(914)	(1,264)	(1,225)			(3,655)	(2,489)
Net loss attributable to common stockholders	$ (85,315)	$ (29,854)	$ (26,096)	$ (24,908)	$ (59,916)	$ (128,040)	$ (19,512)	$ (15,681)	$ (166,172)	$ (223,149)	$ (48,103)
Weighted average outstanding common shares	152,343,823	151,663,670	152,259,589	152,140,117	150,569,877	138,895,681	69,721,078	67,827,401
Loss per share:
Loss per share - basic and diluted (in dollars per share)	$ (0.54)	$ (0.20)	$ (0.17)	$ (0.16)	$ (0.40)	$ (0.92)	$ (0.28)	$ (0.23)	$ (1.09)	$ (2.08)	$ (0.75)

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2018
Subsequent Events.
Subsequent Events	19. Subsequent Events The Company performed its subsequent event procedures through March 19, 2019, the date these consolidated financial statements were made available for issuance.

Basis of Presentation and Summary of Significant Accounting Policies - Operations (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Outside United States
Long-lived assets	$ 34.4	$ 26.2

Description of the Business (Details)	12 Months Ended
Description of the Business (Details)	Dec. 31, 2018 segment
Description of the Business
Number of segments	3

Basis of Presentation and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Basis of Presentation and Summary of Significant Accounting Policies
Inventories, net	$ 16,220	$ 11,922

Commitments and Contingencies (Details)	Sep. 21, 2017 shares
Fair value guarantee \| Common Stock \| SourceHOV
Commitments and Contingencies
Number of shares owned	10,304