View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Jun. 04, 2020	Jun. 30, 2019
Document and Entity Information
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	Exela Technologies, Inc.
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Interactive Data Current	No
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 92,130,068
Entity Common Stock, Shares Outstanding		147,511,430
Entity Central Index Key	0001620179
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 05, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 94,100	$ 6,198	$ 9,358	$ 18,406	$ 8,559	$ 36,206	$ 41,206	$ 56,961	$ 29,010
Restricted cash		7,901	5,867	5,020	4,701	7,648	8,441	29,910	10,421
Accounts receivable, net of allowance for doubtful accounts of $4,975 and $4,359, respectively		261,400	260,438	266,660	278,064	270,812	253,986	262,260	238,680
Related party receivables		716	42	206		0
Inventories, net		19,047	16,996	16,735	16,321	16,220	16,122	15,088	13,519
Prepaid expenses and other current assets		23,663	22,617	23,713	25,252	24,937	26,933	24,108	27,520
Total current assets		318,925	315,318	330,740	332,897	355,823	346,688	388,327	319,150
Property, plant and equipment, net of accumulated depreciation of $176,995 and $154,060, respectively		113,637	119,469	125,018	129,621	132,986	131,156	135,585	132,870
Operating lease right-of-use assets, net		93,627	93,352	96,498	100,727
Goodwill		359,771	611,982	708,246	708,285	708,258	749,762	748,708	747,325	$ 747,325
Intangible assets, net		342,443	357,114	372,004	383,680	395,020	384,895	405,457	424,251
Deferred income tax assets		12,032	15,950	16,301	16,322	16,345	15,606	16,076	9,967
Other noncurrent assets		17,889	13,557	14,714	17,667	19,391	21,650	21,276	18,490
Total assets		1,258,324	1,526,742	1,663,521	1,689,199	1,627,823	1,649,757	1,715,429	1,652,053
Current liabilities
Accounts payables		86,167	93,815	99,089	90,924	99,853	90,673	86,304	77,194
Related party payables		1,740	10,207	11,671	13,812	15,363	15,792	17,023	14,172
Income tax payable		352		2,525	4,898	1,996	5,422	5,385	6,967
Accrued liabilities		121,553	104,097	102,265	105,018	107,355	81,259	79,851	70,217
Accrued compensation and benefits		48,574	49,636	50,218	55,745	52,211	52,464	48,409	47,279
Accrued interest		48,769	24,602	48,935	23,928	49,071	23,845	48,885	23,795
Customer deposits		27,765	30,161	28,914	28,410	34,235	39,419	36,997	36,542
Deferred revenue		16,282	17,368	19,428	19,966	16,504	18,084	20,654	15,933
Obligation for claim payment		39,156	43,267	41,496	46,063	56,002	52,889	94,233	56,554
Current portion of finance lease liabilities		13,788	15,172	15,897	15,961		15,926	16,568	14,785
Current portion of finance lease liabilities, ASC 840						17,498
Current portion of operating lease liabilities		25,345	26,604	27,444	27,368
Current portion of long-term debts		36,490	37,237	38,929	32,821	29,237	20,062	19,799	21,170
Total current liabilities		465,981	452,166	486,811	464,914	479,325	415,835	474,108	384,608
Long-term debt, net of current maturities		1,398,385	1,367,583	1,331,898	1,336,152	1,306,423	1,307,884	1,278,197	1,277,029
Finance lease liabilities, net of current portion		20,272	24,159	25,772	27,231		22,945	25,193	26,474
Finance lease liabilities, net of current portion, ASC 840						26,738
Pension liabilities		25,681	28,850	27,141	27,730	27,641	32,887	32,967	28,540
Deferred income tax liabilities		7,996	12,679	15,898	12,441	11,214	2,115	5,016	5,478
Long-term income tax liabilities		2,806	2,892	2,842	3,158	3,024	3,470	3,470	3,470
Operating lease liabilities, net of current portion		73,282	71,661	74,290	78,290
Other long-term liabilities		6,962	7,866	7,882	6,747	14,717	15,307	16,208	13,879
Total liabilities		2,001,365	1,967,856	1,972,534	1,956,663	1,869,082	1,800,443	1,835,159	1,739,478
Commitments and Contingencies (Note 14)
Stockholders' equity (deficit)
Common stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 153,638,836 shares issued and 150,851,689 shares outstanding at December 31, 2019 and 152,692,140 shares issued and 150,142,955 shares outstanding at December 31, 2018 (including in each case the 4,570,734 shares returned to the Company in the first quarter of 2020 in connection with the Appraisal Action)		15	15	15	15	15	15	15	15
Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; 4,294,233 shares issued and outstanding at December 31, 2019 and 4,569,233 shares issued and outstanding at December 31, 2018		1	1	1	1	1	1	1	1
Additional paid in capital		445,452	445,452	445,452	445,452	445,452	445,452	445,452	445,452
Less: common stock held in treasury, at cost; 2,787,147 shares at December 31, 2019 and 2,549,185 shares December 31, 2018		(10,949)	(10,949)	(10,949)	(10,342)	(10,342)	(5,148)	(3,728)	(249)
Equity-based compensation		49,336	48,411	47,190	44,529	41,731	38,601	36,980	35,044
Accumulated deficit		(1,211,508)	(907,422)	(776,134)	(734,563)	(702,392)	(615,058)	(586,253)	(555,744)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(7,329)	(7,644)	(5,319)	(3,031)	(6,423)	(3,858)	(1,366)	(487)
Unrealized pension actuarial losses, net of tax		(8,059)	(8,978)	(9,269)	(9,525)	(9,301)	(10,691)	(10,831)	(11,457)
Total accumulated other comprehensive loss		(15,388)	(16,622)	(14,588)	(12,556)	(15,724)	(14,549)	(12,197)	(11,944)
Total stockholders’ deficit		(743,041)	(441,114)	(309,013)	(267,464)	(241,259)	(150,686)	(119,730)	(87,425)	$ (51,796)	$ (339,901)
Total liabilities and stockholders’ deficit		$ 1,258,324	$ 1,526,742	$ 1,663,521	$ 1,689,199	$ 1,627,823	$ 1,649,757	$ 1,715,429	$ 1,652,053

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts		$ 4,975	$ 4,359
Accumulated depreciation on property, plant and equipment		$ 176,995	$ 154,060
Common stock, par value (in dollars per share)		$ 0.0001	$ 0.0001	$ 0.0001
Common stock shares authorized		1,600,000,000	1,600,000,000
Common stock, shares issued		153,638,836	152,692,140
Common stock, shares outstanding		150,851,689	150,142,955
Common stock, shares returned	4,570,734
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		4,294,233	4,569,233
Preferred stock, shares outstanding		4,294,233	4,569,233
Common stock held in treasury at cost (in shares)		2,787,147	2,549,185

Consolidated Statement of Operations - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statement of Operations
Revenue	$ 393,586	$ 373,545	$ 390,849	$ 404,357	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 795,206	$ 803,549	$ 1,168,751	$ 1,186,579	$ 1,562,337	$ 1,586,222	$ 1,145,891
Cost of revenue (exclusive of depreciation and amortization)	314,858	295,445	303,831	310,601	306,654	296,685	315,167	294,897	614,432	610,064	909,877	906,749	1,224,735	1,213,403	827,544
Selling, general and administrative expenses (exclusive of depreciation and amortization)	49,678	48,347	51,162	49,677	48,114	44,897	46,378	45,519	100,839	91,897	149,186	136,794	198,864	184,908	220,955
Depreciation and amortization	24,421	25,079	24,779	26,624	33,684	33,410	34,744	36,239	51,403	70,982	76,482	104,393	100,903	138,077	98,890
Impairment of goodwill and other intangible assets	252,399	97,158			48,127						97,158		349,557	48,127	69,437
Related party expense	1,742	1,430	5,331	998	3,664	775	6,783	1,181	6,329	7,964	7,759	8,739	9,501	12,403	33,431
Operating loss	(249,512)	(93,914)	5,746	16,457	(40,600)	7,263	7,310	15,331	22,203	22,642	(71,711)	29,904	(321,223)	(10,696)	(104,366)
Other expense (income), net:
Interest expense, net	43,216	40,573	39,959	39,701	38,999	39,087	39,229	38,676	79,660	77,905	120,235	116,992	163,449	155,991	129,676
Debt modification and extinguishment costs			1,404			1,067			1,404		1,404	1,067	1,404	1,067	35,512
Sundry expense (income), net	600	(165)	1,311	(2,715)	(905)	2,283	2,122	(229)	(1,404)	1,893	(1,569)	4,176	969	(3,271)	2,295
Other expense (income), net	10,003	406	2,527	1,493	2,567	(1,069)	(907)	(3,621)	4,020	(4,528)	4,424	(5,597)	14,429	(3,030)	(1,297)
Net loss before income taxes	(302,131)	(135,058)	(36,833)	(27,452)	(83,071)	(29,539)	(28,890)	(19,953)	(64,285)	(48,842)	(199,343)	(78,382)	(501,474)	(161,453)	(270,552)
Income tax (expense) benefit	(1,953)	3,769	(4,738)	(4,720)	(3,442)	733	(1,619)	(4,025)	(9,458)	(5,644)	(5,689)	(4,911)	(7,642)	(8,353)	61,068
Net loss	(304,084)	(131,289)	(41,571)	(32,172)	(86,513)	(28,806)	(30,509)	(23,978)	(73,743)	(54,486)	(205,032)	(83,293)	(509,116)	(169,806)	(209,484)
Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature													0	0	(16,375)
Cumulative dividends for Series A Preferred Stock	(597)	(884)	(914)	(914)	(914)	(914)	(914)	(914)	(1,828)	(1,828)	(2,712)	(2,742)	(3,309)	(3,655)	(2,489)
Net loss attributable to common stockholders	$ (304,681)	$ (132,173)	$ (42,485)	$ (33,086)	$ (87,427)	$ (29,720)	$ (31,423)	$ (24,892)	$ (75,571)	$ (56,314)	$ (207,744)	$ (86,035)	$ (512,425)	$ (173,461)	$ (228,348)
Loss per share - Basic and diluted (in dollars per share)	$ (2.09)	$ (0.91)	$ (0.29)	$ (0.23)	$ (0.59)	$ (0.20)	$ (0.21)	$ (0.17)					$ (3.52)	$ (1.17)	$ (2.18)

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Comprehensive Loss
Net Loss	$ (304,084)	$ (131,289)	$ (41,571)	$ (32,172)	$ (86,513)	$ (28,806)	$ (30,509)	$ (23,978)	$ (73,743)	$ (54,486)	$ (205,032)	$ (83,293)	$ (509,116)	$ (169,806)	$ (209,484)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		(2,325)	(2,288)	3,392	(2,566)	(2,492)	(879)	(268)	1,104	(1,147)	(1,221)	(3,639)	(906)	(6,204)	3,328
Unrealized pension actuarial gains (losses), net of tax		291	256	(224)	1,390	140	626	(403)	32	223	323	363	1,242	1,753	1,285
Total other comprehensive loss, net of tax		$ (133,323)	$ (43,603)	$ (29,004)	$ (87,689)	$ (31,158)	$ (30,762)	$ (24,649)	$ (72,607)	$ (55,410)	$ (205,930)	$ (86,569)	$ (508,780)	$ (174,257)	$ (204,871)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

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, 2016	$ 6			$ (57,395)	$ 27,342	$ (3,547)	$ (12,339)	$ (293,968)	$ (339,901)
Beginning balance (in shares) at Dec. 31, 2016	64,024,557
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss								(209,484)	(209,484)
Equity-based compensation					6,743				6,743
Foreign currency translation adjustment						3,328			3,328
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	$ 3			244,797					244,800
Shares issued to acquire Novitex (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 underwriting fees				28,573					28,573
Shares issued for advisory services and underwriting fees (in shares)	3,609,375
Preferred shares converted to common (in 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)
Shares repurchased			$ (249)						(249)
Shares repurchased (in shares)	(49,300)		49,300
Appraisal demand liability for dissenting shareholders				(36,566)					(36,566)
Ending balance at Dec. 31, 2017	$ 15	$ 1	$ (249)	445,452	34,085	(219)	(11,054)	(519,827)	(51,796)
Ending balance (in shares) at Dec. 31, 2017	150,529,151	6,194,233	49,300
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(23,978)
Foreign currency translation adjustment									(268)
Net realized pension actuarial gains, net of tax									(403)
Ending balance at Mar. 31, 2018									(87,425)
Beginning balance at Dec. 31, 2017	$ 15	$ 1	$ (249)	445,452	34,085	(219)	(11,054)	(519,827)	(51,796)
Beginning balance (in shares) at Dec. 31, 2017	150,529,151	6,194,233	49,300
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(54,486)
Foreign currency translation adjustment									(1,147)
Net realized pension actuarial gains, net of tax									223
Ending balance at Jun. 30, 2018									(119,730)
Beginning balance at Dec. 31, 2017	$ 15	$ 1	$ (249)	445,452	34,085	(219)	(11,054)	(519,827)	(51,796)
Beginning balance (in shares) at Dec. 31, 2017	150,529,151	6,194,233	49,300
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(83,293)
Foreign currency translation adjustment									(3,639)
Net realized pension actuarial gains, net of tax									363
Ending balance at Sep. 30, 2018									(150,686)
Beginning balance at Dec. 31, 2017	$ 15	$ 1	$ (249)	445,452	34,085	(219)	(11,054)	(519,827)	(51,796)
Beginning balance (in shares) at Dec. 31, 2017	150,529,151	6,194,233	49,300
Increase (Decrease) in Stockholders’ Equity (Deficit)
Implementation of ASU								(12,759)	(12,759)
Net Loss								(169,806)	(169,806)
Equity-based compensation					6,562				6,562
Foreign currency translation adjustment						(6,204)			(6,204)
Net realized pension actuarial gains, net of tax							1,753		1,753
RSU's vested					256				256
RSU's vested (in shares)	126,922
Stock option exercised					828				828
Preferred shares converted to common (in shares)	1,986,767	(1,625,000)
Shares repurchased			$ (10,093)						(10,093)
Shares repurchased (in shares)	(2,499,885)		2,499,885
Ending balance at Dec. 31, 2018	$ 15	$ 1	$ (10,342)	445,452	41,731	(6,423)	(9,301)	(702,392)	(241,259)
Ending balance (in shares) at Dec. 31, 2018	150,142,955	4,569,233	2,549,185
Beginning balance at Mar. 31, 2018									(87,425)
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(30,509)
Foreign currency translation adjustment									(879)
Net realized pension actuarial gains, net of tax									626
Ending balance at Jun. 30, 2018									(119,730)
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(28,806)
Foreign currency translation adjustment									(2,492)
Net realized pension actuarial gains, net of tax									140
Ending balance at Sep. 30, 2018									(150,686)
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(86,513)
Foreign currency translation adjustment									(2,566)
Net realized pension actuarial gains, net of tax									1,390
Ending balance at Dec. 31, 2018	$ 15	$ 1	$ (10,342)	445,452	41,731	(6,423)	(9,301)	(702,392)	(241,259)
Ending balance (in shares) at Dec. 31, 2018	150,142,955	4,569,233	2,549,185
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(32,172)
Foreign currency translation adjustment									3,392
Net realized pension actuarial gains, net of tax									(224)
Ending balance at Mar. 31, 2019									(267,464)
Beginning balance at Dec. 31, 2018	$ 15	$ 1	$ (10,342)	445,452	41,731	(6,423)	(9,301)	(702,392)	(241,259)
Beginning balance (in shares) at Dec. 31, 2018	150,142,955	4,569,233	2,549,185
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(73,743)
Foreign currency translation adjustment									1,104
Net realized pension actuarial gains, net of tax									32
Ending balance at Jun. 30, 2019									(309,013)
Beginning balance at Dec. 31, 2018	$ 15	$ 1	$ (10,342)	445,452	41,731	(6,423)	(9,301)	(702,392)	(241,259)
Beginning balance (in shares) at Dec. 31, 2018	150,142,955	4,569,233	2,549,185
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(205,032)
Foreign currency translation adjustment									(1,221)
Net realized pension actuarial gains, net of tax									323
Ending balance at Sep. 30, 2019									(441,114)
Beginning balance at Dec. 31, 2018	$ 15	$ 1	$ (10,342)	445,452	41,731	(6,423)	(9,301)	(702,392)	(241,259)
Beginning balance (in shares) at Dec. 31, 2018	150,142,955	4,569,233	2,549,185
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss								(509,116)	(509,116)
Equity-based compensation					7,828				7,828
Foreign currency translation adjustment						(906)			(906)
Net realized pension actuarial gains, net of tax							1,242		1,242
RSU's vested (in shares)	610,482
Withholding of employee taxes on vested RSUs					(223)				(223)
Preferred shares converted to common (in shares)	336,214	(275,000)
Shares repurchased			$ (607)						(607)
Shares repurchased (in shares)	(237,962)		237,962
Ending balance at Dec. 31, 2019	$ 15	$ 1	$ (10,949)	445,452	49,336	(7,329)	(8,059)	(1,211,508)	(743,041)
Ending balance (in shares) at Dec. 31, 2019	150,851,689	4,294,233	2,787,147
Beginning balance at Mar. 31, 2019									(267,464)
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(41,571)
Foreign currency translation adjustment									(2,288)
Net realized pension actuarial gains, net of tax									256
Ending balance at Jun. 30, 2019									(309,013)
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(131,289)
Foreign currency translation adjustment									(2,325)
Net realized pension actuarial gains, net of tax									291
Ending balance at Sep. 30, 2019									(441,114)
Increase (Decrease) in Stockholders’ Equity (Deficit)
Net Loss									(304,084)
Ending balance at Dec. 31, 2019	$ 15	$ 1	$ (10,949)	$ 445,452	$ 49,336	$ (7,329)	$ (8,059)	$ (1,211,508)	$ (743,041)
Ending balance (in shares) at Dec. 31, 2019	150,851,689	4,294,233	2,787,147

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net loss	$ (32,172)	$ (23,978)	$ (73,743)	$ (54,486)	$ (205,032)	$ (83,293)	$ (509,116)	$ (169,806)	$ (209,484)
Adjustments to reconcile net loss
Depreciation and amortization	26,624	36,239	51,403	70,982	76,482	104,393	100,903	138,077	98,890
Fees paid in stock									28,573
HGM contract termination fee paid in stock									10,000
Original issue discount and debt issuance cost amortization	2,852	2,595	5,749	5,272	8,730	8,062	11,777	10,913	12,280
Debt modification and extinguishment costs			1,049		1,049	103	1,049	103	34,459
Impairment of goodwill and other intangible assets					97,158		349,557	48,127	69,437
Provision for doubtful accounts	800	481	3,334	1,857	4,402	2,470	4,304	2,767	500
Deferred income tax provision	1,076	835	4,623	705	1,632	(3,689)	1,093	3,220	(67,545)
Share-based compensation expense	2,798	959	5,459	2,895	6,903	4,516	7,827	7,647	6,743
Foreign currency remeasurement	35	(323)	288	(1,156)	(173)	(2,040)	(511)	(1,180)	1,382
Loss (gain) on sale of assets	54	279	85	1,395	123	2,048	556	2,687	556
Fair value adjustment for interest rate swap	1,677	(3,328)	4,385	(4,675)	4,965	(5,456)	4,337	(2,540)	(1,297)
Change in operating assets and liabilities, net of effect from acquisitions
Accounts receivable	(8,742)	(10,875)	624	(19,813)	3,501	(6,374)	4,410	(19,319)	(4,832)
Prepaid expenses and other assets	(632)	(5,567)	1,260	(1,603)	2,377	(5,770)	(4,825)	(2,820)	1,029
Accounts payable and accrued liabilities	(33,033)	(18,205)	(12,595)	42,038	(41,146)	(21,348)	(19,588)	8,815	77,171
Related party payables	(1,551)	(273)	(3,899)	2,578	(5,198)	1,347	(14,339)	918	4,907
Additions to outsource contract costs	(2,434)	(492)	(2,860)	(1,377)	(3,130)	(2,360)	(1,285)	(4,009)	(10,992)
Net cash provided by (used in) operating activities	(42,648)	(21,653)	(14,838)	44,612	(47,357)	(7,391)	(63,851)	23,600	51,777
Cash flows from investing activities
Purchase of property, plant and equipment	(5,572)	(5,957)	(9,072)	(10,244)	(10,797)	(14,077)	(14,360)	(20,072)	(14,440)
Additions to internally developed software	(1,879)	(1,092)	(4,007)	(2,115)	(5,074)	(3,080)	(6,182)	(7,438)	(7,843)
Cash acquired in Quinpario reverse merger									91
Cash paid in acquisition, net of cash received			(5,000)	(4,145)	(5,000)	(6,513)	(5,000)	(34,810)	(423,797)
Proceeds from sale of assets	7	2	20	1,014	360	1,095	360	3,568	4,607
Net cash provided by (used in) investing activities	(7,444)	(7,047)	(18,059)	(15,490)	(20,511)	(22,575)	(25,182)	(58,752)	(441,382)
Cash flows from financing activities
Change in bank overdraft									(210)
Proceeds from issuance of stock									204,417
Cash received from Quinpario									22,333
Repurchases of common stock	(2,872)		(3,480)	(3,479)	(3,480)	(4,899)	(3,480)	(7,221)	(249)
Contribution from Shareholders									20,548
Cash paid for equity issuance costs		(7,500)		(7,500)		(7,500)		(7,500)	(149)
Net borrowings under factoring arrangement	1,118		2,426		(494)		3,307
Cash paid for withholding taxes on vested RSUs					(223)		(223)
Lease terminations	(45)	(26)	(95)	(56)	(314)	(213)	(318)	(592)	(157)
Retirement of previous credit facilities									(1,055,736)
Cash paid for debt issuance costs			(7)		(7)	(130)	(7)	(130)	(38,784)
Principal payments on finance lease obligations	(5,077)	(4,803)	(9,180)	(8,404)	(13,598)	(12,594)	(20,465)	(16,068)	(11,361)
Borrowings from senior secured revolving facility	51,000	25,000	68,000	30,000	130,500	30,000	206,500	30,000	72,600
Repayments on senior secured revolving facility	(21,000)	(25,000)	(68,000)	(30,000)	(91,500)	(30,000)	(141,500)	(30,000)	(72,500)
Proceeds from issuance of notes									977,500
Proceeds from senior secured term loans			29,850		29,850	30,000	29,850	30,000	343,000
Borrowings from other loans	6,904	1,863	14,092	2,152	21,530	3,068	39,153	11,557	3,116
Principal repayments on senior secured term loans and other loans	(10,498)	(2,947)	(21,248)	(6,043)	(32,996)	(9,053)	(53,678)	(12,651)	(27,955)
Net cash provided by (used in) financing activities	19,530	(13,413)	12,358	(23,330)	39,268	(1,321)	59,139	(2,605)	436,413
Effect of exchange rates on cash	(32)	55	111	(410)	(29)	(555)	139	122	429
Net decrease in cash and cash equivalents	(30,594)	(42,058)	(20,428)	5,382	(28,629)	(31,842)	(29,755)	(37,635)	47,237
Cash, restricted cash, and cash equivalents
Beginning of period	43,854	81,489	43,854	81,489	43,854	81,489	43,854	81,489	34,252
End of period	13,260	39,431	23,426	86,871	15,225	49,647	14,099	43,854	81,489
Supplemental cash flow data:
Income tax payments, net of refunds received	1,356	1,053	5,181	3,864	6,981	5,296	7,882	7,827	5,711
Interest paid	60,573	66,192	71,211	76,353	131,744	136,396	144,456	146,076	69,622
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements	4,097	4,432	6,778	7,787	9,352	9,318	10,732	14,920	6,973
Leasehold improvements funded by lessor				1,540		1,565		1,565	146
Issuance of common stock as consideration for Novitex									244,800
Accrued capital expenditures	$ 809	$ 1,101	$ 1,083	$ 1,144	$ 2,388	$ 1,994	1,402	2,820	1,621
Dividend equivalent on Series A Preferred Stock							$ 0	$ 0	16,375
Liability assumed of Quinpario									$ 4,698

Description of the Business	12 Months Ended
Description of the Business	Dec. 31, 2019
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, dated February 21, 2017, among the Company, Quinpario Merger Sub I, Inc., Quinpario Merger Sub II, Inc., SourceHOV, Novitex, HOVS LLC, HandsOn Fund 4 I, LLC and Novitex Parent, L.P., as amended (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.

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

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 the right to receive 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. 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.

Company’s variable interest in Ex-Sigma: The HGM Group and other former SourceHOV equity holders formed Ex-Sigma LLC (the “Ex-Sigma”) and its wholly-owned subsidiary, Ex-Sigma 2 LLC (the “Ex-Sigma 2”), to hold the Exela shares to be issued to SourceHOV as merger consideration upon the closing of the Novitex Business Combination and to invest in Exela immediately prior to the closing. Ex-Sigma 2 secured additional PIPE financing in the form of a $55.8 million loan (the “Margin Loan”) that was used to purchase additional common and preferred shares from the Company to help meet the minimum cash requirements needed to close the Novitex Business Combination. As a result of these transactions, the Company issued 84,912,500 shares of Common Stock to Ex-Sigma 2 at the closing, which represented approximately 54.9% ownership in the Company at that time and were pledged as collateral for the Margin Loan.

The Company determined that Ex-Sigma was a variable interest entity and that the Company had a variable interest in Ex-Sigma through an expense reimbursement arrangement related to the Margin Loan and contained in the Consent, Waiver and Amendment dated June 15, 2017 by and among the Company, Quinpario Merger Sub I, Inc., Quinpario Merger Sub II, Inc., Novitex, Novitex Parent, L.P., Ex-Sigma, HOVS LLC and HandsOnFund 4 I, LLC, amending the Novitex Business Combination Agreement (the “Consent, Waiver and Amendment”). The Consent, Waiver and Amendment provided among other things for the Company to reimburse Ex-Sigma for costs and fees related to the maintenance of the Margin Loan, other than payments of principal, interest and original issue discount.

The Company was not the primary beneficiary because the Company did not have the power to direct the activities that most significantly impacted the economic performance of Ex-Sigma. Accordingly, the Company did not consolidate the financial statements of Ex-Sigma and did not have any assets or liabilities related to Ex-Sigma and the Company did not have an investment in Ex-Sigma. The Company reaffirmed its assessment as of June 8, 2020.

Ex-Sigma 2 paid off the balance of the Margin Loan as of December 31, 2019, and as such the maximum exposure to loss as a result of the Company’s involvement with Ex-Sigma is $0. Ex-Sigma 2 distributed the shares held by it during the first quarter of 2020 and is no longer a shareholder of Exela. Ex-Sigma and Ex-Sigma 2 ceased to be variable interest entities upon the distribution that occurred on February 21, 2020.

Use of Estimates in Preparation of the Financial Statements

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, right of use assets and obligation, pension obligations, pension 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.

Going Concern

Under ASC Subtopic 205-40, Presentation of Financial Statements—Going Concern (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due within one year after the date that the financial statements are issued. As required under ASC 205-40, management’s evaluation should initially not take into consideration the potential mitigating effects of management’s plans that have not been fully implemented as of the date the financial statements are issued. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.

Substantial Doubt Raised

In performing the first step of the evaluation, we concluded that the following conditions raised substantial doubt about our ability to continue as a going concern:

history of net losses of $509.1 million and $169.8 million for the years ended December 31, 2019 and December 31, 2018, respectively, including goodwill and other intangible asset impairment of $349.6 million, for the year ended December 31, 2019 and $48.1 million for the year ended December 31, 2018;

net operating cash outflow of $63.9 million in 2019 and inflow of $23.6 million in 2018;

working capital deficits of $147.1 million as of December 31, 2019 and $123.5 million as of December 31, 2018;

significant cash payments for interest on our long-term debt of $144.5 million in 2019 and a similar amount expected in 2020;

a liability incurred of $56.4 million for Appraisal Action (as described further in Note 14);

a requirement that the Company maintain a minimum of $40.0 million and $35.0 million in liquidity, at all times, to not be considered in default of the A/R Facility and the Credit Agreement (as defined below); and

an accumulated deficit of $1,211.5 million.

Furthermore, under the terms of each of the First Lien Credit Agreement, dated as of July 12, 2017, as amended and restated as of July 13, 2018 and as further amended and restated as of April 16, 2019 (the “Credit Agreement”), and the Indenture and First Supplemental Indenture (collectively, the “Indenture”), dated July 12, 2017, the Company was required to deliver to lender the December 31, 2019 audited financial statements by April 14, 2020, which the Company failed to do. Such failure was an event of default under the Credit Agreement if not cured within 30 days of receiving a notice of default. The Company received such notice on April 15, 2020. Additionally, under the terms of the A/R Facility (as described in Note 21), the Company was required to furnish to each lender the December 31, 2019 audited financial statements by May 11, 2020, which the Company failed to do. In May 2020, both the Credit Agreement and the A/R Facility were amended. Refer to Consideration of Management’s Plans section below.

Consideration of Management’s Plans

In performing the second step of this assessment, we are required to evaluate whether it is probable that our plans will be effectively implemented within one year after the financial statements are issued and whether it is probable those plans will alleviate the substantial doubt about our ability to continue as a going concern.

As of June 5, 2020, the Company had $94.1 million in available cash and an additional source of liquidity of $13.4 million from the borrowing facilities.

The Company has undertaken the following plans to improve our available cash balances, liquidity and cash flows generated from operations, over the twelve-month period from the date the financial statements are issued, as follows:

On January 10, 2020, certain subsidiaries of the Company entered into a $160.0 million A/R Facility with a five-year term. The Company used the proceeds of the initial borrowings to repay outstanding revolving borrowings under the Company’s senior credit facility and to provide additional liquidity and funding for the ongoing business needs of the Company and its subsidiaries. As of June 8, 2020, the Company has fully drawn on the remaining availability under the A/R Facility. Additionally, the A/R Facility agreement includes a requirement that the Company maintain a minimum of $40.0 million in liquidity, at all times, to not be considered in default.

On March 16, 2020, the Company and its indirect wholly owned subsidiaries, Merco Holdings, LLC and SourceHOV Tax, LLC entered into a Membership Interest Purchase Agreement with Gainline Source Intermediate Holdings LLC at which time Gainline Source Intermediate Holdings LLC acquired all of the outstanding membership interests of SourceHov Tax for $40.0 million, subject to adjustment as set forth in the purchase agreement of approximately $2.0 million.

On March 23, 2020, in response to the potential impact of the COVID-19 pandemic, the Company implemented a temporary freeze on increases to base salaries and wages unless where contractually mandated. Additionally, in connection with the incentive program administered by the Company for hourly, non-exempt employees, a new maximum was put in place to limit the amount of incentives that could be earned in any given two (2) week pay period. Although the Company expects these to be short-term actions, it expects these actions will result in a cash savings to the Company of approximately $23.4 million on an annual basis.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The refundable payroll tax credits and deferment of employer side social security payments provisions of the CARES Act will benefit Company’s liquidity by approximately $29.0 million.

On May 21, 2020, the Company also amended the A/R Facility to, among other things, extend the time for delivery of its audited financial statements for the year ended December 31, 2019 and its financial statements for the quarter ended March 31, 2020. Refer to Note 21 – Subsequent Events for additional discussion.

Management Assessment of Ability to Continue as a Going Concern

The Company has a history of negative trends in its financial condition and operating results as well as recent noncompliance with covenants with its respective lenders. However, despite these conditions, the Company believes management’s plans, as described fully above, will provide sufficient liquidity to meet its financial obligations and further, maintain levels of liquidity as specifically required under the Credit Agreement and the A/R Facility. Therefore, management concluded these plans alleviate the substantial doubt that was raised about our ability to continue as a going concern for at least twelve months from the date that the financial statements were issued.

Future Plans and Considerations

Our plans to further enhance liquidity, which were not considered for the purposes of our assessment of whether substantial doubt is alleviated, include the potential sale of certain non-core assets that are not central to the Company’s long-term strategic vision, and any potential action with respect to these operations would be intended to allow the Company to better focus on its core businesses. The Company has retained financial advisors to assist with the sale of select assets. The Company expects to use the potential net proceeds from this initiative for the paydown of debt.

Our plans are subject to inherent risks and uncertainties, which become significantly magnified when the effects of the current pandemic and related financial crisis are included in the assessment. Accordingly, there can be no assurance that our plans can be effectively implemented and, therefore, that the conditions can be effectively mitigated.

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 bank depository concentration.

Certificates of deposit and fixed deposits whose original maturity is greater than three months and 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 a liability for the settlement funds received, which is included in Obligation for claim payment in the consolidated balance sheets, of $39.1 million and $56.0 million at December 31, 2019 and 2018, 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 inventories as of December 31, 2019 and 2018 were $19.0 million and $16.2 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. 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. Trade names are tested for impairment as per the Company’s policy for impairment of indefinite-lived assets.

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 amortizes such trademarks on a straight-line basis over the estimated useful life, which is typically one year.

Developed Technology

The Company has acquired 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 fulfillment activities and can be separated into two principal categories: contract commissions and set-up/fulfillment costs. Contract fulfillment costs are capitalized only if they are directly attributable to a specifically anticipated future contract; represent the enhancement of resources that will be used in satisfying a future performance obligation (the services under the anticipated contract); and are expected to be recovered.

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, 2019 these agreements were fully amortized.

Assembled Workforce

The Company acquired an assembled workforce in an asset purchase transaction in the fourth quarter of 2018. The Company recognized an intangible asset for the acquired assembled workforce and amortizes the asset on a straight-line basis over the estimated useful life of four 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 assets, 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. If carrying value of the indefinite-lived assets exceeds fair value, the Company recognizes an impairment loss by an amount which is equal to the excess of carrying value over fair 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 9- 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 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, 2019, 2018, and 2017.

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 9- 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, 2019:


		December 31, 2019
Effective	Maturity	(In Millions)		Weighted Average
date	date	Notional Amount		Interest Rate
1/12/2018	1/12/2021	$	328.1	1.9275	%

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 other income (expense), net. Other income (expense), net includes a loss of $4.3 million and a gain of $2.5 million related to the change in fair value of the interest rate swap for the years ended December 31, 2019 and 2018, 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 respective plans. The Company records annual amounts relating to its pension plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, and compensation increases. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so.

Leases

The Company determines if a contract is, or contains, a lease at contract inception. Operating leases are included in operating lease right-of-use ("ROU") assets, current portion of operating lease liabilities and operating lease liabilities, net of current portion in the Company's consolidated balance sheet. Finance leases are included in property, plant and equipment, current portion of finance lease liabilities and finance lease liabilities, net of current portion in the Company's consolidated balance sheet.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. In addition, ROU assets include initial direct costs incurred by the lessee as well as any lease payments made at or before the commencement date, and exclude lease incentives. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of one year or less are not recorded on the balance sheet.

Finance lease ROU assets are amortized over the lease term or the useful life of the asset, whichever is shorter. The amortization of finance lease ROU assets is recorded in depreciation expense in the consolidated statements of operations. For operating leases, we recognize expense for lease payments on a straight-line basis over the lease term.

Stock-Based Compensation

The Company accounts for all equity-classified awards under stock-based compensation plans at their “fair value.” This fair value is measured at the fair 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 stock price on the respective grand date in the case of restricted stock units and using an option pricing model in the case of stock options. The expense resulting from share-based payments is recorded in Selling, general and administrative expense in the accompanying consolidated statements of operations.

Revenue Recognition

We account for revenue in accordance with ASC 606, Revenue from Contracts with Customers. 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 years ended December 31, 2019, 2018, and 2017:


	Years Ended December 31,
	2019								2018 (As Restated)								2017 (As Restated)
		ITPS		HS		LLPS		Total		ITPS		HS		LLPS		Total		ITPS		HS		LLPS		Total
U.S.A.	$	958,625	$	256,721	$	71,332	$	1,286,678	$	1,034,941	$	228,015	$	84,560	$	1,347,516	$	675,613	$	233,595	$	91,619	$	1,000,827
EMEA		248,466		—		—		248,466		211,314		—		—		211,314		130,098		—		—		130,098
Other		27,193		—		—		27,193		27,392		—		—		27,392		14,966		—		—		14,966
Total	$	1,234,284	$	256,721	$	71,332	$	1,562,337	$	1,273,647	$	228,015	$	84,560	$	1,586,222	$	820,677	$	233,595	$	91,619	$	1,145,891

Contract Balances

The following table presents contract assets, contract liabilities and contract costs recognized at December 31, 2019 and 2018:


	December 31, 2019		December 31, 2018 (As Restated)
Accounts receivable, net	$	261,400	$	270,812
Deferred revenues		16,621		16,940
Customer deposits		27,765		34,235
Costs to obtain and fulfill a contract		4,977		6,623

Accounts receivable, net includes $34.1 million and $39.5 million as of December 31, 2019 and 2018, 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 $14.4 million during the year ended December 31, 2019 that had been deferred as of December 31, 2018.

Costs incurred to obtain and fulfill contracts are deferred and presented as part of intangible assets, net and expensed on a straight-line basis over the estimated benefit period. We recognized $2.9 million and $3.1 million of amortization for these costs in 2019 and 2018, respectively, 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 fulfillment and can be separated into two principal categories: contract commissions and fulfillment 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, 2018, and received throughout 2019, were used to pay for postage with the corresponding postage revenue being recognized during the year ended December 31, 2019.

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 (a) contracts with an original expected length of one year or less, and (b) 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, 2019 in each of the future periods below:


Estimated Remaining Fixed Consideration for Unsatisfied Performance Obligations

2020	$	50,664
2021		38,586
2022		32,814
2023		27,408
2024		26,452
2025 and thereafter		27,141
Total	$	203,065

Research and Development

Research and development costs are expensed as incurred. Research and development costs expensed for the years ended December 31, 2019, 2018, and 2017 were $1.7 million, $2.0 million, and $2.3 million, respectively.

Advertising

Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2019, 2018, and 2017, were $1.1 million, $0.9 million, and $0.7 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 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 a 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. Therefore, 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 12 - Income Taxes for further information.

Loss Contingencies

The Company reviews the status of each significant matter, if any, and assesses 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. 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 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 of the Company. 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 $33.7 million and $34.4 million as of December 31, 2019 and 2018, 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 $0.5 million and $1.2 million for the years ended December 31, 2019 and 2018, respectively, and a loss of $1.4 million for the year ended December 31, 2017.

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 and 2019.

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, 2019 shares of the Company’s Series A Preferred Stock, if converted would have resulted in an additional 5,250,129 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”) and the effect of the aggregate number of shares issuable pursuant to outstanding restricted stock units and options of 5,247,005, 4,463,597, and 4,590,520, respectively in the calculation of diluted loss per share for the years ended December 31, 2019, 2018 and 2017 as their effects were anti-dilutive.

The components of basic and diluted EPS are as follows:


	Year Ended December 31,
	2019		2018 (As Restated)		2017 (As Restated)
Net loss attributable to common stockholders (A)	$	(512,425)	$	(173,461)	$	(228,348)
Weighted average common shares outstanding - basic and diluted (B)		145,718,936		147,773,089		104,914,382
Loss Per Share:
Basic and diluted (A/B)	$	(3.52)	$	(1.17)	$	(2.18)

The weighted average common shares outstanding - basic and diluted, in the table above, are excluding in each case the 4,570,734 shares returned to the Company in the first quarter of 2020 in connection with the Appraisal Action (the “Appraisal Shares”).

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 15 — 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, 2019, the Company adopted Accounting Standards Update (“ASU”) no. 2016-02, Leases (ASC 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. The Company adopted this guidance effective January 1, 2019, under the modified retrospective transition method provided by ASU 2018-11 with the following practical expedients below:

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

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

The adoption had a material impact on the Company's unaudited consolidated balance sheets, but did not have a material impact on the Company's unaudited consolidated income statements and unaudited consolidated statements of cash flows. The most significant impact was the recognition of right-of-use assets and lease liabilities for operating leases, while the Company's accounting for finance leases remained substantially unchanged.

Effective January 1, 2019, the Company adopted ASU no. 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 adoption had no impact on the Company's financial position, results of operations, and cash flows for the year ended December 31, 2019.

Effective January 1, 2019, the Company adopted 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 adoption had no impact on the Company's financial position, results of operations, and cash flows for the year ended December 31, 2019.

Effective January 1, 2019, the Company adopted ASU no. 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 adoption had no impact on the Company's financial position, results of operations, and cash flows for the year ended December 31, 2019.

Effective January 1, 2019, the Company adopted ASU no. 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 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 adoption had no impact on the Company's financial position, results of operations, and cash flows for the year ended December 31, 2019.

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 had 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, primarily due to the change in contract costs capitalization criteria. However, 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 $12.8 million recorded as an increase to beginning balance of accumulated deficit.

Recently Issued Accounting Pronouncements

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 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 ASU is effective for the Company for fiscal years beginning after December 15, 2022, 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 August 2018, the FASB issued ASU no. 2018-13, Fair Value Measurement (Topic 820); which changes the fair value measurement disclosure requirements of ASC 820. The amendments in this ASU are the result of a broader disclosure project called FASB Concepts Statement, Conceptual Framework for Financial Reporting. The FASB used the guidance in the Concepts Statement to improve the effectiveness of ASC 820’s disclosure requirements. The objective of the disclosure requirements in this subtopic is to provide users of financial statements with information about assets and liabilities measured at fair value in the statement of financial position or disclosed in the notes to financial statements. The ASU includes but is not limited to the valuation techniques and inputs that a reporting entity uses to arrive at its measures of fair value, including judgments and assumptions that the entity makes, the uncertainty in the fair value measurements as of the reporting date, and how changes in fair value measurements affect an entity’s performance and cash flows. The ASU is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU. The Company is currently in the early stages of 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 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.

In November 2019, the FASB issued ASU no. 2019-08, Codification Improvements — Share-Based Consideration Payable to a Customer. This ASU clarifies the accounting for share-based payments issued as consideration payable to a customer in accordance with ASC 606. Under the ASU, entities apply the guidance in ASC 718 to measure and classify share-based payments issued to a customer that are not in exchange for a distinct good or service (i.e., share-based sales incentives). Accordingly, entities use a fair-value-based measure to calculate such incentives on the grant date, which is the date on which the grantor (the entity) and the grantee (the customer) reach a mutual understanding of the key terms and conditions of the share-based consideration. The result is reflected as a reduction of revenue in accordance with the guidance in ASC 606 on consideration payable to a customer. After initial recognition, the measurement and classification of the share-based sales incentives continue to be subject to ASC 718 unless (1) the award is subsequently modified when vested and (2) the grantee is no longer a customer. 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.

In December 2019, the FASB issued ASU no. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU simplifies the accounting for income taxes by eliminating some exceptions to the general approach in ASC 740, Income Taxes, for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. It also clarifies certain aspects of the existing guidance to promote more consistent application, among other things. The ASU is effective for the Company for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption is permitted. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

Restatement of Previously Issued Financial Statements

12 Months Ended

Dec. 31, 2019

Restatement of Previously Issued Financial Statements

Restatement of Previously Issued Financial Statements

3. Restatement of Previously Issued Financial Statements

On March 11, 2020, management in concurrence with the Audit Committee of the Board of Directors, concluded that our 2018 and 2017 consolidated financial statements, included in our Annual Reports on Form 10-K as of and for the fiscal years ended December 31, 2018 and 2017, and our unaudited consolidated financial statements as of and for each of the first three quarterly periods in 2019 and all quarterly periods in 2018, included in our Quarterly Reports on Form 10-Q for the respective periods, should no longer be relied upon due to misstatements that are described in greater detail below, and that we would restate such financial statements to make the necessary accounting corrections. Details of the restated consolidated financial statements as of and for the fiscal years ended December 31, 2018 and 2017 are provided below. In addition, details of the restated interim financial information for each of the quarterly periods in fiscal 2018 and for the first three quarters of fiscal 2019, as presented in Note 20, Unaudited Quarterly Financial Data.

The restatements reflect adjustments to correct errors including the Company’s non-accrual of a liability related to dissenting shareholders arising out of the Novitex Business Combination, the under accrual of certain reimbursement obligations under the Consent, Waiver and Amendment, certain errors in recognition of revenues under ASC 605, incorrect classification of the loss on extinguishment of debt as cash flows from financing activities instead of cash flows from operating activities, incorrect capitalization of outsourced contracts costs and other miscellaneous adjustments. The nature and impact of these adjustments are described below and detailed in the tables below. Also see Note 20, Unaudited Quarterly Financial Data, for the impact of these adjustments on each of the quarterly periods.

(a)

Appraisal Action Liability Adjustments

During the fourth quarter of fiscal 2019, the Company identified an error as a result of non-accrual of liability and interest thereon for the obligation to pay the fair market value of the shares of certain former stockholders of SourceHOV under the Appraisal Action. As previously reported, on September 21, 2017, former stockholders of SourceHOV, who owned 10,304 shares of SourceHOV common stock, filed a petition for Appraisal Action arising out of the Novitex Business Combination. In the Appraisal Action, the petitioners sought, 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. The parties and their experts offered competing valuations of the SourceHOV shares as of the date of the Novitex Business Combination. On January 30, 2020, the Court issued its post-trial Memorandum Opinion in the Appraisal Action, in which it found that the fair value of SourceHOV as of the Closing Date was $4,591 per share, and on March 26, 2020, the Court issued its final order and judgment awarding the petitioners $57,698,426 inclusive of costs and interest. Per the Court’s opinion, the legal rate of interest, compounded quarterly, accrues on the per share value from the Closing Date until the date of payment to petitioners. As a result of the Appraisal Action, 4,570,734 shares of our Common Stock issued to Ex-Sigma 2, our principal stockholder at the Closing of the Novitex Business Combination, have been returned to the Company during the first quarter of 2020. Interest accrues on the value of the shares from the date of the Business Combination until the liability is paid. Until the third quarter of 2019, the Company had included a disclosure on the Appraisal Action as a part of the Commitment and Contingencies footnote in its consolidated financial statements but had not recorded a liability or accrued interest thereon for the obligation. After evaluating the historical accounting treatment applied to the Appraisal Action, the Company has determined that its historical accounting was in error and the obligation to pay the fair market value of the former stockholders’ shares represented an obligation as of the date the Appraisal Action was submitted in September 2017. The liability should have been recorded in 2017 at the estimated fair value of the shares tendered. This error resulted in $43.1 million, $40.6 million and $37.8 million understatement of accrued liabilities and commensurate understatement of total stockholders’ deficit, as at September 30, 2019, December 31, 2018 and 2017, respectively. Further, this error resulted in $2.4 million, $2.9 million and $1.2 million understatement of loss for the nine months ended September 30, 2019 and for the years ended December 31, 2018 and 2017, respectively, due to the unrecorded interest expense accrual associated with the Company’s obligations related to the Appraisal Action. Interest should have been accrued in the relevant periods at the rate set by the Delaware Court of Chancery. The correction of this error also reduced the number of shares outstanding by 4,570,734 shares for purposes of the weighted average outstanding common shares computation used to calculate basic and diluted loss per share during the respective periods. These are the number of shares of our Common Stock issued at the Closing of the Novitex Business Combination to Ex-Sigma 2 in respect of the former stockholders’ shares subject to the Appraisal Action that were returned to the Company during the first quarter of 2020.

(b)

Outsourced Contract Cost Adjustments

A $5.3 million understatement of loss for the nine months ended September 30, 2019 and a $3.2 million overstatement of loss for the year ended December 31, 2018, due to incorrect capitalization of employee training related costs during the set-up phase as costs of fulfilling contracts which should have been expensed under ASC 340-40. Additionally, an adjustment of $15.4 million was recorded to increase accumulated deficit as of January 1, 2018 to correct the previously-recorded transition adjustment for costs of fulfilling contracts upon the adoption of ASC 606 and ASC 340-40. These errors resulted in $17.3 million and $12.0 million overstatement of intangible assets, net as of September 30, 2019 and December 31, 2018, respectively.

(c)

Other Misstatement Adjustments

Expense Reimbursement Adjustments:

During the second half of 2019, we reimbursed Ex-Sigma 2 approximately $4.5 million in total, out of that $2.1 million of underwriting discount and commission expenses and $0.3 million of advisory fee were incurred by Ex-Sigma 2 in a secondary offering in April 2018 and $2.1 million of expenses related to the discount to the market price on shares sold by Ex-Sigma 2 in a secondary offering in June 2019 and required to be reimbursed pursuant to the terms of the Consent, Waiver and Amendment, amending the Novitex Business Combination Agreement, dated February 21, 2017. Approximately $2.4 million and $2.1 million of these expenses should have been recorded in the 2018 and the second quarter of 2019, respectively. This error resulted in a $2.1 million and $2.4 million understatement of loss for the quarter ended June 30, 2019 and for the year ended December 31, 2018, respectively.

Further, $1.5 million paid to Ex-Sigma 2 in July 2019 for the fees incurred in connection with the secondary offering, out of total reimbursement of $4.5 million in the second half of 2019 as discussed above, was erroneously recorded as selling, general and administrative expenses in the third quarter of 2019. This error resulted in a $1.5 million overstatement of loss for the third quarter of 2019.

Additionally, the Company did not record related party expense accrual associated with the Company’s obligation to reimburse Ex-Sigma 2 in connection with premium payments made by Ex-Sigma 2 under the Margin Loan and required to be reimbursed pursuant to the terms of the Consent, Waiver and Amendment. It resulted in a $1.7 million and $5.2 million understatement of loss for the nine months ended September 30, 2019 and for the year ended December 31, 2018.

The above errors, together, resulted in an understatement of related party payables by $5.0 million as of the reported interim quarters ended June 30, 2018 and September 30, 2018; an understatement of related party payables by $7.6 million as of the year ended December 31, 2018 and the reported interim quarter ended March 31, 2019; and an understatement of related party payables by $11.4 million and $9.9 million as of the quarters ended June 30, 2019 and September 30, 2019, respectively.

The Company incorrectly classified $0.5 million and $0.4 million of related party expense as selling, general and administrative expenses for the nine months ended September 30, 2019 and for the year ended December 31, 2018, respectively. This resulted in an overstatement of selling, general and administrative expenses and understatement of related party expense. This error had no impact on net loss.

Revenue Recognition Adjustments:

A $4.8 million understatement of loss, for the year ended December 31, 2017, was due to incorrect recognition of revenue of $6.4 million and related cost of revenue of $1.6 million in 2017 related to a multiple element arrangement that included a software license where vendor specific objective evidence (VSOE) of fair value was not established for the undelivered elements of the arrangement under the previous revenue recognition guidance in ASC 985-605. This error resulted in a $6.4 million understatement of deferred revenue and a $1.6 million understatement of prepaid expenses and other current assets as at December 31, 2017. After correction of this error in the fiscal 2017 financial statements, the Company derecognized this deferred revenue of $6.4 million and prepaid expenses and other current assets of $1.6 million, resulting in net increase in the retained earnings of $4.8 million on adoption of ASC 606 and ASC 340-40 on January 1, 2018.

Further, a $1.9 million understatement of revenues and understatement of cost of revenue by the same amount for the nine months ended September 30, 2019, were due to incorrect application of the gross vs. net presentation guidance under ASC 606. The Company incorrectly netted the costs of rendering service from the revenue under a contract with one customer. This error had no impact on net loss.

Cash Flows Classification Adjustments:

The Company determined that operating cash flows were understated and financing cash flows overstated in the statement of cash flows by $0.1 million and $34.5 million for the years ended December 31, 2018 and 2017, respectively, as a result of the incorrect interpretation of ASU 2016-15 (Classification of Certain Receipts and Cash Payments) and application on a retrospective basis upon adoption of ASU 2016-15 in 2018. Further, the Company determined that operating cash flows were overstated and investing cash flows understated in the statement of cash flows by $14.3 million, $7.5 million and $11.0 million for the nine months ended September 30, 2019 and for the years ended December 31, 2018 and 2017, respectively, as a result of misclassification of cash flows associated with outsourced contract costs.

Other Adjustments:

In addition to the errors described above, the restated financial statements also include adjustments to correct certain other immaterial errors, including previously unrecorded immaterial adjustments identified in audits of prior years’ financial statements.

Exela Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands of United States dollars except share and per share amounts)


	As of December 31, 2018
	As Previously Reported		Restatement Adjustment		As Restated		Restatement Reference
Assets
Current assets
Cash and cash equivalents	$	25,615	$	10,591	$	36,206		c
Restricted cash		18,239		(10,591)		7,648		c
Accounts receivable, net of allowance for doubtful accounts of $4,359		270,812		—		270,812
Inventories, net		16,220		—		16,220
Prepaid expenses and other current assets		25,015		(78)		24,937		c
Total current assets		355,901		(78)		355,823
Property, plant and equipment, net of accumulated depreciation of $154,060		132,986		—		132,986
Goodwill		708,258		—		708,258
Intangible assets, net		407,021		(12,001)		395,020		b
Deferred income tax assets		16,225		120		16,345		c
Other noncurrent assets		19,391		—		19,391
Total assets	$	1,639,782	$	(11,959)	$	1,627,823

Liabilities and Stockholders' Equity (Deficit)
Liabilities
Current liabilities
Accounts payables	$	99,853	$	—	$	99,853
Related party payables		7,735		7,628		15,363		c
Income tax payable		1,996		—		1,996
Accrued liabilities		66,008		41,347		107,355		a, c
Accrued compensation and benefits		54,583		(2,372)		52,211		c
Accrued interest		49,071		—		49,071
Customer deposits		34,235		—		34,235
Deferred revenue		16,504		—		16,504
Obligation for claim payment		56,002		—		56,002
Current portion of finance lease liabilities		17,498		—		17,498
Current portion of long-term debts		29,237		—		29,237
Total current liabilities		432,722		46,603		479,325
Long-term debt, net of current maturities		1,306,423		—		1,306,423
Finance lease liabilities, net of current portion		26,738		—		26,738
Pension liabilities		25,269		2,372		27,641		c
Deferred income tax liabilities		11,212		2		11,214		c
Long-term income tax liabilities		3,024		—		3,024
Other long-term liabilities		15,400		(683)		14,717		c
Total liabilities		1,820,788		48,294		1,869,082
Commitments and Contingencies (Note 14)

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 (including the 4,570,734 shares returned to the Company in the first quarter of 2020 in connection with the Appraisal Action)		15		—		15
Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; 4,569,233 shares issued and outstanding		1		—		1
Additional paid in capital		482,018		(36,566)		445,452
Less: Common Stock held in treasury, at cost; 2,549,185 shares		(10,342)		—		(10,342)
Equity-based compensation		41,731		—		41,731
Accumulated deficit		(678,563)		(23,829)		(702,392)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(6,565)		142		(6,423)
Unrealized pension actuarial losses, net of tax		(9,301)		—		(9,301)
Total accumulated other comprehensive loss		(15,866)		142		(15,724)
Total stockholders’ deficit		(181,006)		(60,253)		(241,259)
Total liabilities and stockholders’ deficit	$	1,639,782	$	(11,959)	$	1,627,823

As of December 31, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $40.6 million to accrued liabilities at December 31, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $12.0 million of decrease to intangible assets, net at December 31, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $7.6 million to related party payables.

Other Adjustments - Corrections to other misstatements were as follows: (i) Reclassification of operating accounts that are not restricted resulted in an increase of $10.6 million in cash and cash equivalents and decrease of $10.6 million to restricted cash. (ii) Reclassification of pension liabilities between long-term and short-term resulted in a decrease of $2.4 million to Accrued compensation and benefits and an increase of $2.4 million to pension liabilities. (iii) Correction of ASC 842 implementation related deferred rents decreased other long-term liabilities by $0.7 million. (iv) Correction of non-accrual of legal expenses related to 2019 resulted in an increase of $0.7 million to accrued liabilities.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands of United States dollars except per share amounts)


	For the Year Ended December 31, 2018						For the Year Ended December 31, 2017
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Revenue	$	1,586,222	$	—	$	1,586,222	$	1,152,324	$	(6,433)	$	1,145,891	c
Cost of revenue (exclusive of depreciation and amortization)		1,209,874		3,529		1,213,403		829,143		(1,599)		827,544	b, c
Selling, general and administrative expenses (exclusive of depreciation and amortization)		184,651		257		184,908		220,955		—		220,955	c
Depreciation and amortization		145,485		(7,408)		138,077		98,890		—		98,890	b
Impairment of goodwill and other intangible assets		48,127		—		48,127		69,437		—		69,437
Related party expense		4,334		8,069		12,403		33,431		—		33,431	c
Operating loss		(6,249)		(4,447)		(10,696)		(99,532)		(4,834)		(104,366)
Other expense (income), net:
Interest expense, net		153,095		2,896		155,991		128,489		1,187		129,676	a
Debt modification and extinguishment costs		1,067		—		1,067		35,512		—		35,512
Sundry expense (income), net		(3,271)		—		(3,271)		2,295		—		2,295
Other expense (income), net		(3,030)		—		(3,030)		(1,297)		—		(1,297)
Net loss before income taxes		(154,110)		(7,343)		(161,453)		(264,531)		(6,021)		(270,552)
Income tax (expense) benefit		(8,407)		54		(8,353)		60,246		822		61,068
Net loss	$	(162,517)	$	(7,289)	$	(169,806)	$	(204,285)	$	(5,199)	$	(209,484)
Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature		—		—		—		(16,375)		—		(16,375)
Cumulative dividends for Series A Preferred Stock		(3,655)		—		(3,655)		(2,489)		—		(2,489)	c
Net loss attributable to common stockholders	$	(166,172)	$	(7,289)	$	(173,461)	$	(223,149)	$	(5,199)	$	(228,348)
Loss per share:
Basic and diluted	$	(1.09)	$	(0.08)	$	(1.17)	$	(2.08)	$	(0.10)	$	(2.18)

For the year ended December 31, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $2.9 million to interest expense for the year ended December 31, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $4.2 million of increase to cost of revenue and a decrease of $7.4 million to depreciation and amortization for the year ended December 31, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $8.1 million to related party.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction of ASC 842 implementation related deferred rents decreased cost of revenue by $0.7 million. (ii) Correction of non-accrual of legal expenses related to 2019 resulted in an increase of $0.3 million to selling, general and administrative expenses.

For the year ended December 31, 2017

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $1.2 million to interest expense for the year ended December 31, 2018.

(c)

Other Misstatement Adjustments:

Revenue Recognition Adjustments: The correction of this misstatement resulted in a decrease of $6.4 million to revenue and a decrease of $1.6 million to cost of revenue for the year ended December 31, 2017.

Other Adjustments - Corrections to other misstatements were as follows: (i) The correction of all misstatements resulted in an increase of $0.8 million to income tax expense.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands of United States dollars)


	For the Year Ended December 31, 2018						For the Year Ended December 31, 2017
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Net loss	$	(162,517)	$	(7,289)	$	(169,806)	$	(204,285)	$	(5,199)	$	(209,484)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(6,371)		167		(6,204)		3,353		(25)		3,328	c
Unrealized pension actuarial gains (losses), net of tax		1,753		—		1,753		1,285		—		1,285
Total other comprehensive loss, net of tax	$	(167,135)	$	(7,122)	$	(174,257)	$	(199,647)	$	(5,224)	$	(204,871)

For the year ended December 31, 2018

The $2.1 million decrease to net income was primarily driven by the misstatements in the Appraisal Action liability adjustments, outsourced contract adjustments, expense reimbursement adjustments and other adjustments. See additional descriptions of the net income impacts in the consolidated statement of operations for the year ended December 31, 2018 section above.

For the year ended December 31, 2017

The $5.2 million decrease to net income was primarily driven by the misstatements in the Appraisal Action liability adjustments, revenue recognition adjustments and other adjustments. See additional descriptions of the net income impacts in the consolidated statement of operations for the year ended December 31, 2017 section above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands of United States dollars)


	For the Year Ended December 31, 2018						For the Year Ended December 31, 2017
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Cash flows from operating activities
Net loss	$	(162,517)	$	(7,289)		(169,806)	$	(204,285)	$	(5,199)		(209,484)
Adjustments to reconcile net loss						—						—
Depreciation and amortization		145,485		(7,408)		138,077		98,890		—		98,890	b
Fees paid in stock		—		—		—		23,875		4,698		28,573	c
HGM contract termination fee paid in stock		—		—		—		10,000		—		10,000
Original issue discount and debt issuance cost amortization		10,913		—		10,913		12,280		—		12,280
Debt modification and extinguishment costs		—		103		103		—		34,459		34,459	c
Impairment of goodwill and other intangible assets		48,127		—		48,127		69,437		—		69,437
Provision for doubtful accounts		2,767		—		2,767		500		—		500
Deferred income tax provision		3,352		(132)		3,220		(66,723)		(822)		(67,545)	c
Share-based compensation expense		7,647		—		7,647		6,743		—		6,743
Foreign currency remeasurement		(1,180)		—		(1,180)		1,382		—		1,382
Loss (gain) on sale of assets		2,095		592		2,687		399		157		556	c
Fair value adjustment for interest rate swap		(2,540)		—		(2,540)		(1,297)		—		(1,297)
Change in operating assets and liabilities, net of effect from acquisitions
Accounts receivable		(19,319)		—		(19,319)		(4,832)		—		(4,832)
Prepaid expenses and other assets		(2,820)		—		(2,820)		2,628		(1,599)		1,029	c
Accounts payable and accrued liabilities		5,157		3,658		8,815		69,551		7,620		77,171	c
Related party payables		(6,710)		7,628		918		4,907		—		4,907	c
Additions to outsource contract costs		—		(4,009)		(4,009)		—		(10,992)		(10,992)	b
Net cash provided by (used in) operating activities		30,457		(6,857)		23,600		23,455		28,322		51,777

Cash flows from investing activities
Purchase of property, plant and equipment		(20,072)		—		(20,072)		(14,440)		—		(14,440)
Additions to internally developed software		(7,438)		—		(7,438)		(7,843)		—		(7,843)
Additions to outsourcing contract costs		(7,552)		7,552		—		(10,992)		10,992		—	b
Cash acquired in Quinpario reverse merger		—		—		—		91		—		91
Cash paid in acquisition, net of cash received		(34,810)		—		(34,810)		(423,797)		—		(423,797)
Proceeds from sale of assets		3,568		—		3,568		4,607		—		4,607
Net cash provided by (used in) investing activities		(66,304)		7,552		(58,752)		(452,374)		10,992		(441,382)

Cash flows from financing activities
Change in bank overdraft		—		—		—		(210)		—		(210)
Loss on extinguishment of debt		1,067		(1,067)		—		35,512		(35,512)		—	c
Proceeds from issuance of stock		—		—		—		204,417		—		204,417
Cash received from Quinpario		—		—		—		27,031		(4,698)		22,333	c
Repurchases of Common Stock		(7,221)		—		(7,221)		(249)		—		(249)
Contribution from Shareholders		—		—		—		20,548		—		20,548
Cash paid for equity issuance costs		(7,500)		—		(7,500)		(149)		—		(149)
Lease terminations		—		(592)		(592)		—		(157)		(157)	c
Retirement of previous credit facilities		—		—		—		(1,055,736)		—		(1,055,736)
Cash paid for debt issuance costs		(1,094)		964		(130)		(39,837)		1,053		(38,784)	c
Principal payments on finance lease obligations		(16,068)		—		(16,068)		(11,361)		—		(11,361)
Borrowings from senior secured revolving facility		30,000		—		30,000		72,600		—		72,600
Repayments on senior secured revolving facility		(30,000)		—		(30,000)		(72,500)		—		(72,500)
Proceeds from issuance of notes		—		—		—		977,500		—		977,500
Proceeds from senior secured term loans		30,000		—		30,000		343,000		—		343,000
Borrowings from other loans		11,557		—		11,557		3,116		—		3,116
Principal repayments on senior secured term loans and other loans		(12,651)		—		(12,651)		(27,955)		—		(27,955)
Net cash provided by (used in) financing activities		(1,910)		(695)		(2,605)		475,727		(39,314)		436,413
Effect of exchange rates on cash		122		—		122		429		—		429
Net decrease in cash and cash equivalents		(37,635)		—		(37,635)		47,237		—		47,237
Cash, restricted cash, and cash equivalents
Beginning of period		81,489		—		81,489		34,252		—		34,252
End of period	$	43,854	$	—	$	43,854	$	81,489	$	—	$	81,489

Supplemental cash flow data:
Income tax payments, net of refunds received	$	7,827	$	—	$	7,827	$	5,711	$	—	$	5,711
Interest paid		146,076		—		146,076		69,622		—		69,622
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements		14,920		—		14,920		6,973		—		6,973
Leasehold improvements funded by lessor		1,565		—		1,565		146		—		146
Issuance of Common Stock as consideration for Novitex		—		—		—		244,800		—		244,800
Accrued capital expenditures		2,820		—		2,820		1,621		—		1,621
Dividend equivalent on Series A Preferred Stock		—		—		—		16,375		—		16,375
Liability assumed of Quinpario		—		—		—		4,672		26		4,698

For the year ended December 31, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the year ended December 31, 2018 above.

Cash flow classification adjustment related to incorrect interpretation of ASU 2016-15 (Classification of Certain Receipts and Cash Payments) in 2018 resulted in a net increase to cash flows provided by operating activities of $0.1 million, a decrease to net cash flows provided by financing activities of $0.1 million for the year ended December 31, 2018. (Debt modification and extinguishment costs, loss on extinguishment of debt & cash paid for debt issuance costs)

The misstatements in the cash flow misclassifications category related to lease terminations resulted in a decrease to net cash flows provided by financing activities of $0.6 million and an increase to net cash flows provided by operating activities of $0.6 million for the year ended December 31, 2018. (Loss on sale of assets and lease terminations)

The misstatements in the outsourcing contract cost adjustment category resulted in a decrease to net cash flows provided by operating activities of $11.4 million ($7.4 million of depreciation and amortization and $4.0 million of additions to outsourcing contract costs), and an increase to net cash flows provided by investing activities of $7.6 million (Additions to outsourcing contract costs) for the year ended December 31, 2018.

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the year ended December 31, 2018.

For the year ended December 31, 2017

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the year ended December 31, 2017 above.

Cash flow classification adjustment related to incorrect interpretation of ASU 2016-15 (Classification of Certain Receipts and Cash Payments) in 2017 resulted in a net increase to cash flows provided by operating activities of $34.5 million, a decrease to net cash flows provided by financing activities of $34.5 million for the year ended December 31, 2017 (Debt modification and extinguishment costs, loss on extinguishment of debt & cash paid for debt issuance costs).

The misstatements in the cash flow misclassifications category related to (a) Lease terminations resulted in a decrease to net cash flows provided by financing activities of $0.2 million and an increase to net cash flows provided by operating activities of $0.2 million (loss on sale of assets and lease terminations) and (b) Fees paid in stock to Quinpario resulted in an increase of $4.7 million to net cash provided by operating activities and a decrease of $4.7 million to cash flows provided by net financing cash flow activities for the year ended December 31, 2017.

The misstatements in the outsourcing contract cost adjustment category resulted in a decrease to net cash flows provided by operating activities of $11.0 million (Additions to outsourcing contract costs), and an increase to net cash flows provided by investing activities of $11.0 million (Additions to outsourcing contract costs) for the year ended December 31, 2017.

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the year ended December 31, 2017.

Business Combinations

12 Months Ended

Dec. 31, 2019

Business Combinations

Business Combinations

4. Business Combinations

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 was strategic to expanding Exela’s European business.

The acquired assets and assumed liabilities of Asterion were recorded at their estimated fair values. The following table summarizes the consideration paid for Asterion and the 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		1,137
Property, plant, and equipment		4,747
Deferred income tax assets		6,316
Other noncurrent assets		522
Intangible assets		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 liabilities		(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. Exela recognized $73.9 million and $59.7 million in revenue related to Asterion in the Consolidated Statements of Operations for the years ended December 31, 2019 and 2018, respectively. The pro-forma financial statements of Asterion are not considered material from an overall disclosure perspective, and therefore, are not included here.

Accounts Receivable

12 Months Ended

Dec. 31, 2019

Accounts Receivable.

Accounts Receivable

5. Accounts Receivable

Accounts receivable, net consist of the following:


	December 31,
	2019		2018
Billed receivables	$	222,168	$	226,252
Unbilled receivables		34,135		39,498
Other		10,072		9,421
Less: Allowance for doubtful accounts		(4,975)		(4,359)
	$	261,400	$	270,812

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.

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2019

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

6. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:


	December 31,
	2019		2018
Prepaids	$	23,243	$	24,712
Deposits		420		225
	$	23,663	$	24,937

Leases

12 Months Ended

Dec. 31, 2019

Leases

Leases

7. Leases

The following table summarizes the impact of the changes made to the January 1, 2019 consolidated balance sheet for the adoption of the new accounting standard pertaining to leases. The prior periods have not been restated and have been reported under the accounting standard in effect for those periods.


	Balance at				Balance at
	December 31,		Impact of		January 1,
	2018 (As Restated)		Lease Standard		2019
Total assets	$	1,627,823	$	104,214	$	1,732,037
Total current liabilities		479,325		25,685		505,010
Total long-term liabilities		1,389,757		79,028		1,468,785

The increase in total assets and total liabilities at January 1, 2019 from December 31, 2018 was due to the impact from the adoption of the new accounting standard pertaining to lease arrangements.

Company’s ROU assets and lease liabilities as of December 31, 2019 are recorded on the consolidated balance sheet as follows:


	December 31,
	2019
Balance sheet location:
Operating Lease
Operating lease right-of-use assets, net	$	93,627
Current portion of operating lease liabilities		25,345
Operating lease liabilities, net of current portion		73,282
Finance Lease
Finance lease right-of-use assets, net (included in property, plant and equipment, net)		30,835
Current portion of finance lease liabilities		13,788
Finance lease liabilities, net of current portion		20,272

As of December 31, 2019, the weighted-average remaining lease term of operating leases and finance leases was 4.8 years and 3.2 years, respectively. The weighted-average discount rate for operating leases and finance leases was 10.5% and 9.1%, respectively.

The interest on financing lease liabilities for the year ended December 31, 2019 was $3.3 million. The amortization expense on finance lease right-of-use assets for the year ended December 31, 2019 was $15.1 million.

The following table summarizes maturities of finance and operating lease liabilities based on lease term as of December 31, 2019:



	Finance		Operating
	Leases		Leases
2020	$	16,282	$	33,315
2021		10,652		26,210
2022		5,696		20,589
2023		2,941		15,348
2024		2,632		11,606
2025 and thereafter		1,554		17,356
Total lease payments		39,757		124,424
Less: Imputed interest		(5,697)		(25,797)
Present value of lease liabilities	$	34,060	$	98,627

At December 31, 2018, the Company had the following future minimum payments due under non-cancelable leases:


		Finance	Operating
		Leases	Leases
2019	$	20,080	$	38,057
2020		11,851		29,346
2021		9,018		22,239
2022		4,169		16,782
2023		2,244		12,302
2024 and thereafter		3,617		18,874
Total minimum lease payments	$	50,979	$	137,600
Less: imputed interest		(6,743)
Total net minimum lease payments		44,236
Less: Current portion of obligations under finance leases		(17,498)
Long-term portion of obligations under finance leases	$	26,738

Consolidated rental expense for all operating leases was $77.3 million, $83.8 million, and $60.0 million for the years ended December 31, 2019, 2018, and 2017, respectively.

The following table summarizes the cash paid and related right-of-use operating finance or operating lease recognized for the year ended December 31, 2019.



		Year Ended
		December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	50,398
Financing cash flows from finance leases		20,860
Right-of-use lease assets obtained in the exchange for lease liabilities:
Operating leases		19,127
Finance leases		10,731

Property, Plant and Equipment, Net

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment, Net

Property, Plant and Equipment, Net

8. Property, Plant and Equipment, Net

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



	Estimated Useful Lives	December 31,
	(in Years)	2019		2018
Land	N/A	$	6,884	$	6,888
Buildings and improvements	7 – 40		20,288		20,518
Leasehold improvements	Shorter of life of improvement or lease term		47,036		56,589
Vehicles	5 – 7		531		717
Machinery and equipment	5 – 15		28,489		62,746
Computer equipment and software	3 – 8		92,500		130,864
Furniture and fixtures	5 – 15		9,440		8,724
Finance lease right-of-use assets	Shorter of life of the asset or lease term		85,464		—
			290,632		287,046
Less: Accumulated depreciation and amortization			(176,995)		(154,060)
Property, plant and equipment, net		$	113,637	$	132,986

Depreciation expense related to property, plant and equipment was $41.4 million, $43.1 million, and $31.7 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Intangibles Assets and Goodwill

12 Months Ended

Dec. 31, 2019

Intangibles Assets and Goodwill

Intangibles Assets and Goodwill

9. Intangible Assets and Goodwill

Intangibles

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


	December 31, 2019
	Gross Carrying				Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	508,074	$	(237,313)	$	270,761
Developed technology		89,053		(87,109)		1,944
Trade names (b)		8,400		(3,100)		5,300
Outsource contract costs		16,726		(11,749)		4,977
Internally developed software		43,261		(12,129)		31,132
Trademarks		23,378		(23,370)		8
Non-compete agreements		1,350		(1,350)		—
Assembled workforce		4,473		(1,118)		3,355
Purchased software		26,749		(1,783)		24,966
Intangibles, net	$	721,464	$	(379,021)	$	342,443


	December 31, 2018 (As Restated)
	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 (c)		9,400		(3,100)		6,300
Outsource contract costs		15,439		(8,817)		6,622
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	$	714,568	$	(319,548)	$	395,020

(a)

Amounts include intangibles acquired in business combinations and asset acquisitions.

(b)

The carrying amount of trade names for 2019 is net of accumulated impairment losses of $44.1 million, of which $1.0 million was recognized in 2019.

(c)

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.

During the third quarter of 2019, the Company made an evaluation based on factors such as changes in the Company’s growth rate and recent trends in the Company’s market capitalization, and concluded that a triggering event for an interim impairment analysis had occurred. As part of the assessment, it was determined that the increase in the discount rate applied in the valuation was required to reflect current market dynamics and company-specific risk. This higher discount rate, in conjunction with revised long-term projections, resulted in lower than previously projected long-term future cash flows for the reporting units which reduced the estimated fair value to below carrying value. As a result of the interim impairment assessment in the third quarter, the Company recorded an impairment charge to goodwill and trade names of $96.2 million (as restated) and $1.0 million, respectively. The Company did not update its analysis for purposes of the annual impairment test as of October 1, 2019 as the measurement date of the impairment test performed during the quarter-ended September 30, 2019 was one day from the annual impairment test date.

Additionally, later during the fourth quarter of 2019, the Company conducted its annual budgeting process along with an update to its long-range plan. Following the completion of that process, the Company made an evaluation based on factors such as changes in the Company’s growth rate and recent trends in the Company’s market capitalization, concluding that a second triggering event for an impairment analysis had occurred. Revised long-term projections coupled with a decline in the market capitalization, resulted in lower than previously projected long-term future cash flows for the reporting units which reduced the estimated fair value to below carrying value. Accordingly, we performed another quantitative impairment test as of December 31, 2019, resulting in an additional impairment charge of $252.4 million to goodwill. Therefore, as a result of these two interim impairment assessments in the third and fourth quarters of 2019, impairment charges totaling $348.6 million and $1.0 million were recorded to goodwill and trade names, respectively, for the year ended December 31, 2019. Accumulated impairment losses on goodwill were $560.9 million and $212.3 million as at December 31, 2019 and 2018, respectively.

In connection with the completion of the annual impairment test as of October 1, 2018, the Company recorded impairment charges of $44.4 million and $3.7 million to goodwill and trade names, respectively.

The impairment charges are included within Impairment of goodwill and other intangible assets in the consolidated statements of operations for both 2018 and 2019.

Aggregate amortization expense related to intangibles was $59.3 million, $94.9 million (as restated), and $67.1 million (as restated) for the years ended December 31, 2019, 2018, and 2017, respectively.

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


	Estimated
	Amortization
	Expense (As Restated)
2020	$	55,323
2021		50,015
2022		45,535
2023		37,168
2024		29,704
Thereafter		120,163
	$	337,908

Goodwill

Goodwill by reporting segment consists of the following:




	Beginning of Year Balance (a)			Additions			Reductions			Currency Translation Adjustments		End of Year Balance (a)
ITPS	$	566,215	$	5,580	(c)	$	—		$	(220)	$	571,575
HS		86,786		—			—			—		86,786
LLPS		94,324		—			(44,427)	(b)		—		49,897
Total - Year 2018	$	747,325	$	5,580		$	(44,427)		$	(220)	$	708,258
ITPS		571,575		—			(317,525)	(d)		70		254,120
HS		86,786		—			—			—		86,786
LLPS		49,897		—			(31,032)	(e)		—		18,865
Total - Year 2019	$	708,258	$	—		$	(348,557)		$	70	$	359,771

(a)

The carrying amount of goodwill for all periods presented is net of accumulated impairment losses of $167.9 million.

(b)

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

(c)

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

(d)

The reduction in goodwill for the ITPS segment is due to $317.5 million for impairment recorded for the year ended December 31, 2019.

(e)

The reduction in goodwill for the LLPS segment is due to $31.0 million for impairment recorded for the year ended December 31, 2019.

Accrued Liabilities and Other Long-Term Liabilities

12 Months Ended

Dec. 31, 2019

Accrued Liabilities and Other Long-Term Liabilities

Accrued Liabilities and Other Long-Term Liabilities

10. Accrued Liabilities and Other Long-Term Liabilities

Accrued liabilities consist of the following:


	December 31,
	2019		2018 (As Restated)
Accrued taxes (exclusive of income taxes)	$	9,608	$	10,606
Accrued lease exit obligations		1,127		1,694
Accrued professional and legal fees		33,421		31,220
Accrued appraisal action liability		56,412		40,649
Accrued rent		—		1,421
Accrued transaction costs		2,250		2,250
Other accruals		18,735		19,515
	$	121,553	$	107,355

Other Long-term liabilities consist of the following:


	December 31,
	2019		2018 (As Restated)
Deferred revenue	$	339	$	432
Accrued rent		669		7,650
Accrued lease exit obligations		136		369
Accrued compensation expense		2,075		2,173
Other		3,743		4,093
	$	6,962	$	14,717

Long-Term Debt and Credit Facilities

12 Months Ended

Dec. 31, 2019

Long-Term Debt and Credit Facilities

Long-Term Debt and Credit Facilities

11. Long-Term Debt and Credit Facilities

Senior Secured Notes

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. As of December 31, 2019, the Company was in compliance with all covenants required under the Notes.

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 (as defined below) 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. As of December 31, 2019 and 2018 the Company had outstanding irrevocable letters of credit totaling $20.6 million under the senior secured revolving facility.

The Credit Agreement provided 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 was 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 was 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.

On May 18, 2020, the Company amended the Credit Agreement to, among other things, extend the time for delivery of its audited financial statements for the year ended December 31, 2019 and its financial statements for the quarter ended March 31, 2020. In the event the Company delivers the annual and quarterly financial statements described above within the time frames stated within such agreement (which the Company believes it has now satisfied with respect to the annual financial statements, but not with respect to quarterly financial statements), the Company will, upon delivery of such financial statements, be in compliance with the Credit Agreement, with respect to the financial statement delivery requirements set forth therein. Pursuant to the amendment, the Company also amended the Credit Agreement to, among other things: restrict the borrower and its subsidiaries’ ability to designate or invest in unrestricted subsidiaries; incur certain debt; create certain liens; make certain investments; pay certain dividends or other distributions on account of its equity interests; make certain asset sales or other dispositions (or utilize the proceeds of certain asset sales to reinvest in the business); or enter into certain affiliate transactions pursuant to the negative covenants under the Credit Agreement. Further, pursuant to the amendment, the borrower under the Credit Agreement is also required to maintain a minimum Liquidity (as defined in the amendment) of $35.0 million. As of December 31, 2019, the Company was in compliance with all covenants required under these senior credit facilities.

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 1.0% floor, or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.5%, (ii) the prime rate and (iii) the one-month adjusted LIBOR plus 1.0%, in each case plus an applicable margin of 6.5% for LIBOR loans and 5.5% 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.

2018 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, subject to customary “breakage” costs with respect to LIBOR rate loans.

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.

2019 Incremental Term Loan

On April 16, 2019, the Company successfully borrowed an additional $30.0 million pursuant to incremental term loans (the “2019 Incremental Term Loans”) under the Second Amendment to First Lien Credit Agreement (the “Second Amendment”). The proceeds of the 2019 Incremental Term Loans were used to replace the cash spent for acquisitions, pay related fees, expenses and related borrowings and for general corporate purposes.

The 2019 Incremental Term Loans will bear interest at a rate per annum that is the same as the Company’s Repricing Term Loans under the senior credit facility. The 2019 Incremental Term Loans will mature on July 12, 2023, the same maturity date as the Term Loans. The Company may voluntarily repay the 2019 Incremental Term Loans at any time, without prepayment premium or penalty, subject to customary “breakage” costs with respect to LIBOR rate loans.

Other than as described above, the terms, conditions and covenants applicable to the 2019 Incremental Term Loans are consistent with the terms, conditions and covenants that are applicable to the Repricing Term Loans and 2018 Incremental Term Loans under the Credit Agreement. The Repricing and issuance of the 2018 and 2019 Incremental Term Loans resulted in a partial debt extinguishment, for which Exela recognized $1.4 million in debt extinguishment costs in the second quarter of 2019.

Long- Term Debt Outstanding

As of December 31, 2019 and 2018, the following long-term debt instruments were outstanding:


	December 31,
	2019		2018
Other (a)	$	30,232		25,321
First lien credit agreement (b)		360,583		335,896
Senior secured notes (c)		979,060		974,443
Revolver		65,000		—
Total debt		1,434,875		1,335,660
Less: Current portion of long-term debt		(36,490)		(29,237)
Long-term debt, net of current maturities	$	1,398,385	$	1,306,423

(a)

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

(b)

Net of unamortized original issue discount and debt issuance costs of $6.5 million and $18.9 million as of December 31, 2019 and $8.3 million and $24.5 million as of December 31, 2018.

(c)

Net of unamortized original issue discount and debt issuance costs of $14.9 million and $6.0 million as of December 31, 2019 and $18.2 million and $7.3 million as of December 31, 2018.

As of December 31, 2019, maturities of long-term debt are as follows:


	Maturity
2020	$	36,490
2021		25,198
2022		91,187
2023		1,325,445
2024		2,921
Thereafter		—
Total long-term debt		1,481,241
Less: Unamortized discount and debt issuance costs		(46,366)
	$	1,434,875

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Taxes

Income Taxes

12. Income Taxes

The Company provides for income taxes using an asset and liability approach, under which deferred income taxes are provided for 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,
	2019		2018 (As Restated)		2017 (As Restated)
United States	$	(511,165)	$	(180,245)	$	(281,009)
Foreign		9,691		18,792		10,457
	$	(501,474)	$	(161,453)	$	(270,552)

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


	Year Ended December 31,
	2019		2018 (As Restated)		2017 (As Restated)
Federal
Current	$	(1,308)	$	1,308	$	(722)
Deferred		(3,879)		(2,006)		(59,425)
State
Current		2,255		390		1,407
Deferred		(807)		2,339		(7,178)
Foreign
Current		5,770		3,435		5,794
Deferred		5,611		2,887		(944)
Income Tax Expense (Benefit)	$	7,642	$	8,353	$	(61,068)

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


	Year Ended December 31,
	2019		2018 (As Restated)		2017 (As Restated)
Tax at statutory rate	$	(105,310)	$	(33,905)	$	(94,693)
Add (deduct)
State income taxes		(7,666)		(6,557)		(4,219)
Foreign income taxes		4,390		1,228		305
Nondeductible transaction costs		—		—		27,311
Nondeductible goodwill impairment		61,699		9,002		10,497
Permanent differences		1,275		2,542		438
Litigation settlement		3,310		608		415
Changes in valuation allowance		30,064		19,433		(6,159)
Unremitted earnings		1,604		4,735		—
Changes in U.S tax rates		—		—		(4,784)
Deemed mandatory repatriation		—		—		7,441
GILTI Inclusion		3,772		2,289		—
Expiration of tax attributes		10,807		8,353		—
Other		3,697		625		2,380
Income Tax Expense (Benefit)	$	7,642	$	8,353	$	(61,068)

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 U.S. 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 U.S., 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.

The TCJA subjects a U.S. 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 2019, the Company has included GILTI related to current-year operations in the amount of $18.0 million to compute the annual effective tax rate. At December 31, 2018, the Company had 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 U.S. tax to related foreign persons, also referred to as base erosion and anti-abuse tax ("BEAT"). The BEAT provisions in the Tax Reform Act eliminate the deduction of certain base-erosion payments made to related foreign corporations and impose a minimum tax if greater than regular tax. The Company recorded zero tax expense related to BEAT for the year ended December 31, 2019. The Company had 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,
	2019		2018 (As Restated)
Deferred income tax liabilities:
Book over tax basis of intangible and fixed assets	$	(77,088)	$	(94,648)
Unremitted foreign earnings		(6,339)		(4,735)
Operating and finance right-of-use assets		(16,981)		—
Other, net	$	(2,571)	$	(4,079)
Total deferred income tax liabilities		(102,979)		(103,462)

Deferred income tax assets:
Allowance for doubtful accounts and receivable adjustments	$	1,498	$	1,676
Inventory		903		1,629
Accrued liabilities		11,608		9,433
Net operating loss and tax credit carryforwards		158,265		184,430
Tax deductible goodwill		8,066		3,147
Disallowed interest deduction		56,873		26,897
Operating and finance lease liabilities		18,127		—
Other, net		15,481		16,031
Total deferred income tax assets	$	270,820	$	243,243

Valuation allowance		(163,806)		(134,650)
Total net deferred income tax assets (liabilities)	$	4,036	$	5,131

Gross deferred tax assets are reduced by valuation allowances to the extent the Company determines it is not more-likely-than-not that the deferred tax assets are expected to be realized. At December 31, 2019, the Company recognized $163.8 million of valuation allowances against gross deferred tax assets primarily related to net operating loss and tax credit carryforwards. Of this amount, approximately $65.4 million and $5.8 million of the total valuation allowance relates to U.S. federal and state limitations on the utilization of net operating loss carryforwards due to numerous changes in ownership. Approximately $48.9 million and $7.2 million of the total valuation allowance relates to U.S. federal and state disallowed interest deductions pursuant to the TCJA. The remaining $37.6 million of the valuation allowance relates to non-limited U.S. and non-U.S. net operating losses, capital 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 $29.2 million primarily related to the increase of net regular deferred tax assets and the increase of deferred tax assets related to disallowed interest deduction.

Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), limits the amount of U.S. tax attributes (net operating losses and tax credit carryforwards) following a change in ownership. The Company has determined that for the purpose of these provisions an ownership change occurred under Section 382 on April 3, 2014 and October 31, 2014 for BancTec, Inc. and its subsidiaries and RC4Capital, LLC and its subsidiaries (collectively, the “Pangea Group”) and on October 31, 2014 for the historic SourceHOV group (the "2014 Reorganization"). The Section 382 limitations significantly limit the pre-acquisition Pangea Group net operating losses. Accordingly, upon the October 31, 2014 change in control, most of the historic Pangea Group federal net operating losses were limited and a valuation allowance has been established against the related deferred tax assets. Following the filing of the October 31, 2014, Pangea Group 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 Group'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 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 capital loss carryforwards, federal general business credit carryforwards and state tax credit carryforwards due to expire beginning in 2020 through 2039. As of December 31, 2019, the Company has federal and state income tax net operating loss (NOL) carryforwards of $573.8 million and $421.5 million, which will expire at various dates from 2020 through 2039. Such NOL carryforwards expire as follows:


			State and Local
	Federal NOL		NOL
2020 – 2024	$	86,371	$	60,478
2025 – 2029		134,448		94,661
2030 – 2039		352,972		266,348
	$	573,791	$	421,487

As of December 31, 2019, the Company has foreign net operating loss carryforwards of $37.3 million, $1.2 million of which were generated by Exela Poland, and will expire in 2024, 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, 2019, approximately $41.4 million of the Company goodwill is tax deductible, $20.9 million of which is carried over from the 2014 Reorganization. Additionally, the Company has tax deductible goodwill of $17.0 million in connection with the TransCentra acquisition, and $3.5 million in connection with the Novitex acquisition. These amounts were related to the tax basis carried over from the seller in those acquisitions.

The Company adopted the provision of accounting for uncertainty in income taxes in ASC Topic 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, 2019 is $6.4 million, and if recognized $2.8 million would benefit the effective tax rate. Total accrued interest and penalties recorded on the Consolidated Balance Sheet were $2.1 million and $2.3 million at December 31, 2019 and 2018, respectively. The total amount of interest and penalties recognized in the Consolidated Statement of Operations at December 31, 2019 was $(0.2) 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,
	2019		2018 (As Restated)		2017 (As Restated)
Unrecognized tax benefits—January 1	$	1,476	$	1,047	$	999
Gross increases—tax positions in prior period		1,378		301		48
Gross decreases—tax positions in prior period		(10)		—		—
Gross increases—tax positions in current period		1,470		128		—
Settlement		—		—		—
Lapse of statute of limitations		—		—		—
Unrecognized tax benefits—December 31	$	4,314	$	1,476	$	1,047

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, 2015, However, NOLs generated in years prior to 2015 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 EMEA. The Company may be subject to examination by the India tax authorities for tax periods ending on or after March 31, 2013.

At December 31, 2019, 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 $105.2 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, 2019, the Company recorded $6.3 million of foreign withholding taxes on the undistributed earnings of these jurisdictions, $1.6 million of which was recorded in the Consolidated Statements of Operations at December 31, 2019 and $4.7 million was recorded at December 31, 2018.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Employee Benefit Plans

Employee Benefit Plans

13. 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 3.8%.

Asterion Pension Plan

The Company acquired in 2018 through the Asterion Business Combination the obligation to provide 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.

With respect to all of the plans as discussed, no new employees are registered under these plans and the employees who are already eligible to receive benefits under these plans are no longer employed by the Company.

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,
	2019		2018
Change in Benefit Obligation:
Benefit obligation at beginning of period	$	90,051	$	91,875
Additional obligation due to acquisition		—		5,631
Service cost		80		82
Interest cost		2,448		2,350
Actuarial loss (gain)		9,168		(4,356)
Plan amendments		(835)		1,334
Benefits paid		(3,082)		(1,558)
Foreign-exchange rate changes		3,131		(5,307)
Benefit obligation at end of year	$	100,961	$	90,051

Change in Plan Assets:
Fair value of plan assets at beginning of period	$	62,952	$	64,886
Additional assets due to acquisition		—		2,184
Actual return on plan assets		10,906		(1,432)
Employer contributions		2,557		2,477
Benefits paid		(2,995)		(1,421)
Foreign-exchange rate changes		2,455		(3,742)
Fair value of plan assets at end of year		75,875		62,952
Funded status at end of year	$	(25,086)	$	(27,099)

Net amount recognized in the Consolidated Balance Sheets:
Pension liability (a)	$	(25,681)	$	(27,641)
Amounts recognized in accumulated other comprehensive loss, net of tax consist of:
Net actuarial loss		(8,059)		(9,301)
Net amount recognized in accumulated other comprehensive loss, net of tax	$	(8,059)	$	(9,301)

Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate projected benefit obligation	$	100,961	$	90,050
Aggregate accumulated benefit obligation	$	100,961	$	90,050
Aggregate fair value of plan assets	$	75,875	$	62,883

(a)

Consolidated balance of $25.7 million for the year ended December 31, 2019 includes pension liabilities of $20.6 million, $2.4 million, $2.1 million and $0.1 million under U.K., Asterion, German and Norway pension plans, respectively, and minimum regulatory benefit for a Philippines legal entity of $0.5 million. Consolidated balance of $27.6 million for the year ended December 31, 2018 includes pension liabilities of $22.0 million, $2.8 million, $1.8 million and $0.5 million under U.K., Asterion, German and Norway pension plans, respectively, and minimum regulatory benefit for a Philippines legal entity of $0.5 million.

Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Benefit Costs in 2020

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, 2019, 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 $1.8 million and prior service cost of $0.1 million.

Tax Effect on Accumulated Other Comprehensive Loss

As of December 31, 2019 and 2018, the Company recorded actuarial losses of $8.1 million and $9.3 million, respectively, which is net of a deferred tax benefit of $2.0 million and $1.7 million, respectively.

Pension and Postretirement Expense

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


	Year ended December 31,
	2019		2018		2017
Service cost	$	80	$	82	$	8
Interest cost		2,448		2,350		2,288
Expected return on plan assets		(2,460)		(2,841)		(2,392)
Amortization:
Amortization of prior service cost		(169)		9		(134)
Amortization of net (gain) loss		1,768		1,755		2,063
Net periodic benefit cost	$	1,667	$	1,355	$	1,833

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,
	2019		2018		2019		2018		2019		2018		2019		2018
	UK				Germany				Norway				Asterion
Weighted-average assumptions used to determine benefit obligations:
Discount rate	2.10	%	2.80	%	1.00	%	1.90	%	2.30	%	2.60	%	1.10	%	1.80
Rate of compensation increase	N/A		N/A		N/A		N/A		2.25	%	2.75	%	2.50	%	2.50
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	2.80	%	2.50	%	1.00	%	1.90	%	2.30	%	2.60	%	1.10	%	1.80
Expected asset return	3.87	%	4.25	%	N/A	%	N/A	%	3.80	%	4.30	%	1.10	%	1.80
Rate of compensation increase	N/A		N/A		N/A		N/A		2.25	%	1.75	%	2.50	%	2.50

The Germany plan is an unfunded plan and therefore has no plan assets. The expected rate of return assumptions for plan assets 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 3.86%. The Company’s long-term expected rate of return on cash is determined by reference to UK government 10 year bond yields at the balance sheet dates. The long-term expected return on bonds is determined by reference to corporate bond yields at the balance sheet date. The long-term expected rate of return on equities and diversified growth funds is based on the rate of return on UK long dated government bonds with an allowance for out-performance. The long-term expected rate of return on the liability driven investments holdings is determined by reference to UK government 20 year bond yields at the balance sheet date.

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 1.8%. 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 set at the direction and discretion of the plan trustees. The weighted average allocation of plan assets by asset category is as follows:


	December 31,
	2019		2018 (As Restated)		2017 (As Restated)
U.K. and other international equities	29.9	%	27.1	%	45.0	%
U.K. government and corporate bonds	12.5		12.7		20.0
Diversified growth fund	41.3		38.9		35.0
Liability driven investments	16.3		21.3		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, 2019 and 2018:


	December 31, 2019
	Total		Level 1		Level 2		Level 3
Asset Category:
Cash	$	837	$	837	$	—	$	—
Equity funds:
U.K.		13,121		—		13,121		—
Other international		8,747		—		8,747		—
Fixed income securities:
Corporate bonds / U.K. Gilts		9,446		—		9,446		—
Other investments:
Diversified growth fund		31,345		—		31,345		—
Liability driven investments		12,379		—		12,379		—
Total fair value	$	75,875	$	837	$	75,038	$	—


	December 31, 2018 (As Restated)
	Total		Level 1		Level 2		Level 3
Asset Category:
Cash	$	129	$	129	$	—	$	—
Equity funds:
U.K.		10,161		—		10,161		—
Other international		6,773		—		6,773		—
Fixed income securities:
Corporate bonds / UK Gilts		7,987		—		7,987		—
Other investments:
Diversified growth fund		24,488		—		24,488		—
Liability driven investments		13,414		—		13,414		—
Total fair value	$	62,952	$	129	$	62,823	$	—

The Company identified an immaterial error in the footnotes to the previously issued financial statements as of December 31, 2018. In the previously issued financial statements the investments in Equities, Fixed Income Securities, and Other investments denominated in British Pounds relating to U.K. Plan as of December 31, 2018, were converted from British Pounds to United States Dollars using incorrect exchange rates. These amounts have been recomputed using appropriate exchange rate and correctly disclosed within the fair value hierarchy table above. As a result of this correction, the weighted average allocation of plan assets by asset category for the year ended December 31, 2018 is also restated.

The plan assets 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 $2.6 million and $2.5 million to its pension plans during the years ended December 31, 2019 and 2018 (as restated), respectively. The Company has fully funded the pension plans for 2019 based on current plan provisions. The Company expects to contribute $2.7 million to the pension plans during 2020, 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,
2020	$	1,730
2021		1,741
2022		2,070
2023		1,997
2024		2,854
2025 - 2029		16,417
Total	$	26,809

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	14. 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 owned 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 arose out of the Novitex Business Combination, and the petitioners sought, 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. During the trial the parties and their experts offered competing valuations of the SourceHOV shares as of the date of the Novitex Business Combination. SourceHOV argued the value was no more than $1,633.85 per share and the petitioners argued the value was at least $5,079.28 per share. On January 30, 2020, the Court issued its post-trial Memorandum Opinion in the Appraisal Action, in which it found that the fair value of SourceHOV as of the date of the Novitex Business Combination was $4,591 per share, and on March 26, 2020, the Court issued its final order and judgment awarding the petitioners $57,698,426 inclusive of costs and interest. On May 7, 2020, SourceHOV filed a motion for new trial in relation to share count. Following the Court’s decision on the motion for new trial, SourceHOV has the right to appeal the judgment. At this time, we cannot determine whether such motion or an appeal would be successful. Per the Court’s opinion, the legal rate of interest, compounded quarterly, accrues on the per share value from the Closing Date until the date of payment to petitioners. As a result of the Appraisal Action, 4,570,734 shares of our Common Stock issued to Ex-Sigma 2 have been returned to the Company during the first quarter of 2020. As of December 31, 2019, the Company accrued a liability of $56.4 million for the Appraisal Action based on management’s best estimate of total payment obligation including accrued interest. Contract-Related Contingencies The Company has certain contingent obligations 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 to customers by a specified deadline. The Company believes the adjustments to the transaction price, if any, under these contract provisions will not result in a significant revenue reversal or 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 recorded a liability for contingent consideration related to a prior acquisition. The Company adjusts this liability to fair value at each reporting period. On February 20, 2014, the Company’s subsidiary, Pangea Acquisitions, Inc. ("Pangea") acquired BancTec, Inc. ("BancTec") through a merger of BancTec and a Pangea subsidiary. The merger agreement for that transaction provided that contingent, or "earnout," consideration would be paid to former BancTec shareholders in the event Pangea's controlling shareholder realizes certain returns on its post-merger Pangea stock. A liability of $0.7 million was recognized for the fair value of the contingent consideration on the acquisition date. The liability for the contingent consideration is adjusted to fair value at each reporting date. (Refer to Note 15 – Fair Value Measurements). The liability for the fair value of the contingent consideration was $0.7 million as of December 31, 2019 and 2018. On April 13, 2018, Western Standard, LLC, in its capacity as representative of the former BancTec shareholders filed suit in the Delaware Court of Chancery alleging that the above described earnout was triggered by the Novitex Business Combination and seeks payment of approximately $8.1 million in respect of the earnout. While the Company moved to dismiss the complaint because the earnout was moot or had not been triggered, on July 24, 2019, the Company was denied its motion to dismiss. The case is scheduled for trial September 1-3, 2020 in Wilmington, Delaware, and discovery is ongoing.

Fair Value Measurement

12 Months Ended

Dec. 31, 2019

Fair Value Measurement

Fair Value Measurement

15. Fair Value Measurement

Assets and Liabilities Measured at Fair Value

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, 2019, and December 31, 2018, due to the relative short maturity of these instruments. Management estimates the fair values of the secured term loan and secured notes at approximately 42.5% and 41.0% respectively, of the respective principal balance outstanding as of December 31, 2019. The fair value is substantially less than the carrying value for the long-term debt. 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, 2019 and December 31, 2018:


	Carrying		Fair		Fair Value Measurements
As of December 31, 2019	Amount		Value		Level 1		Level 2		Level 3
Recurring assets and liabilities:
Long-term debt	$	1,398,385	$	632,796	$	—	$	632,796	$	—
Interest rate swap liability		501		501		—		501		—
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Nonrecurring assets and liabilities:
Goodwill		359,771		359,771		—		—		359,771


	Carrying		Fair		Fair Value Measurements
As of December 31, 2018 (As Restated)	Amount		Value		Level 1		Level 2		Level 3
Recurring assets and liabilities:
Long-term debt	$	1,306,423	$	1,316,306	$	—	$	1,316,306	$	—
Interest rate swap asset (1)		3,836		3,836		—		3,836		—
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Nonrecurring assets and liabilities:
Goodwill		708,258		708,258		—		—		708,258

(1)

Due to an error in presentation of this table in the financial statement for the year ended December 31, 2018, the carrying amount and fair value of the interest rate swap was disclosed as zero. The table has been restated to include the carrying amount and fair value of the interest rate swap asset as at December 31, 2018.

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,		December 31,
	2019		2018
Balance as of January 1,	$	721	$	721
Payments/Reductions		—		—
Balance as of December 31,	$	721	$	721

During 2019 and 2018, goodwill impairment charges totaling $348.6 million and $44.4 million were recognized. See Note 9.

- 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, 2019

Stock-Based Compensation

Stock-Based Compensation

16. 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 (the sole equityholder of Ex-Sigma 2), an entity formed by the former SourceHOV equity holders. In accordance with U.S. GAAP, the Company incurred compensation expenses 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 were employees of the Company. All unvested RSUs under the 2013 Plan were vested by April 2019. As of December 31, 2019, there were no outstanding obligations under the 2013 Plan.

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. The Company is authorized to issue up to 8,323,764 shares of Common Stock under the 2018 Plan.

Restricted Stock Unit Grants

Restricted stock unit awards generally vest ratably over a one to two year period. Restricted stock units are subject to forfeiture if employment terminates prior to vesting and are expensed ratably over the vesting period.

A summary of the status of restricted stock units related to the 2018 Plan as of December 31, 2019 is presented as follows:


				Average
		Weighted		Remaining
	Number	Average Grant		Contractual Life	Aggregate
	of Shares	Date Fair Value		(Years)	Intrinsic Value
Balance as of December 31, 2018	893,297	$	5.86	0.76	$	5,239
Granted	462,617		2.49
Forfeited	(242,116)		5.41
Vested	(804,493)		5.88
Balance as of December 31, 2019	309,305	$	1.99	1.19	$	616

The majority of the RSUs that vested in the third quarter of 2019 were net-share settled such that the Company withheld shares with value equivalent to the employee’s minimum statutory obligation for applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld were 194,010 shares and were based on the value of the RSUs on their respective vesting dates as determined by the Company’s closing stock price. Total payment for the employee’s tax obligations to taxing authorities were $0.2 million and is reflected as a financing activity within the Consolidated Statements of Cash flows.

Options

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 vesting period for each option award is established on the grant date, and the options generally expire 10 years from the grant date. Options granted under the 2018 Plan generally require no less than a two or four year ratable vesting period. Stock option activity for the year 2019 is summarized in the following table:


						Average
		Weighted		Weighted		Remaining
		Average Grant		Average		Vesting Period	Aggregate
	Outstanding	Date Fair Value		Exercise Price		(Years)	Intrinsic Value
Outstanding Balance as of December 31, 2018	3,570,300	$	2.69	$	6.06	2.92	$	9,590
Granted	2,050,600		0.94
Exercised	—		—
Forfeited	(683,200)		2.64
Expired	—		—
Outstanding Balance as of December 31, 2019	4,937,700	$	1.97	$	4.14	2.27	$	9,719

(1) None of the outstanding options are exercisable as of December 31, 2019.

As of December 31, 2019, there was approximately $6.2 million of total unrecognized compensation expense related to non-vested awards for the 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 $7.8 million, $7.6 million, and $6.7 million related to the 2013 Plan and 2018 Plan awards for the years ended December 31, 2019, 2018, and 2017.

Stockholders’ Equity	12 Months Ended
Stockholders’ Equity	Dec. 31, 2019
Stockholders’ Equity
Stockholders’ Equity	17. 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 our Common Stock possess all voting power for the election of our board of 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 our Common Stock are entitled to one vote per share on matters to be voted on by stockholders. Holders of our 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 therefor 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 the year 2019, 275,000 shares of Series A Preferred Stock were converted into 336,214 shares of Common Stock. As of December 31, 2019 and December 31, 2018, there were 153,638,836 and 152,692,140 shares of Common Stock issued, respectively. As of December 31, 2019 and December 31, 2018, there were 150,851,689 and 150,142,955 shares outstanding, respectively (inclusive in each case of the 4,570,734 shares returned to the Company in the first quarter of 2020 in connection with the Appraisal Action). 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, 2019 and December 31, 2018, the Company had 4,294,233 shares and 4,569,233 shares of Series A Preferred Stock outstanding, respectively. 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, 2019, 5,250,129 shares of Common Stock are issuable upon conversion of the remaining 4,294,233 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, 2019, this amount was $3.3 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 $9.4 million. The per share average of cumulative preferred dividends is $2.2. 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 was entitled to purchase up to 5,000,000 shares of its Common Stock. The Share Buyback Program has expired. The Company purchased 237,962 shares in 2019 at an average share price of $2.51 under the Share Buyback Program. As of December 31, 2019, 2,787,147 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, 2019, 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 of which 34,988,302 have been separated from the original unit and 11,698 warrants remain an unseparated part of the originally issued units which are included in the number of shares of common stock outstanding referred to above. The warrants are traded on the OTC Bulletin board as of December 31, 2019. 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, 2019

Related-Party Transactions

Related-Party Transactions

18. Related-Party Transactions

Operating Facility Leases

Certain operating companies lease their operating facilities from HOV RE, LLC and HOV Services Limited, which are affiliates under common control with Ex-Sigma 2. The rental expense for these operating leases was $0.4 million, $0.7 million, and $0.7 million for the years ended December 31, 2019, 2018, and 2017, 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 shareholders and the president of Oakana Holdings, Inc. The expense recognized for these services was approximately $0.2 million, $0.2 million and $0.1 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The Company received consulting services from Shadow Pond, LLC. Shadow Pond, LLC is wholly-owned and controlled by Vik Negi, the Company’s 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 consulting arrangement with Shadow Pond, LLC terminated and Mr. Negi continues to provide services as an employee of the Company. For the year ended December 31, 2019, the Company incurred no expenses for these services. The expense recognized for these services was approximately $0.1 million and $0.5 million for the years ended December 31, 2018 and 2017, respectively.

Relationship with HandsOn Global Management

The Company incurred management fees to HGM, SourceHOV’s former owner, of $6.0 million for the year ended December 31, 2017. 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 $0.6 million, less than $0.1 million and $0.9 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Pursuant to a master agreement dated January 1, 2015 between Rule 14, LLC and a subsidiary of the Company, the Company incurs marketing fees to Rule 14, LLC, a portfolio company of HGM. Similarly, the Company is party to ten master agreements with entities affiliated with HGM’s managed funds, each of which were entered into during 2015 and 2016. Each master agreement provides the Company with use of certain technology and includes a reseller arrangement pursuant to which the Company is entitled to sell these services to third parties. Any revenue earned by the Company in such third-party sale is shared 75%/25% with each of HGM’s venture affiliates in favor of the Company. The brands Zuma, Athena, Peri, BancMate, Spring, Jet, Teletype, CourtQ and Rewardio are part of the HGM managed funds. The Company has the license to use and resell such brands, as described therein. The Company incurred fees relating to these agreements of $1.0 million, $0.7 million, and $0.6 million for the years ended December 31, 2019, 2018 and 2017, 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 2019 and 2018.

Relationship with HOV Services, Ltd.

HOV Services, Ltd. provides the Company data capture and technology services. The expense recognized for these services was approximately $1.5 million, $1.6 million, and $1.7 million for the years ended December 31, 2019, 2018, and 2017, respectively. These expenses are included in cost of revenue in the consolidated statements of operations.

Relationship with Apollo Global Management, Inc.

The Company provides services to and receives services from certain Apollo Global Management, Inc. (“Apollo”) affiliated companies. Funds managed by Apollo held the second largest position in our Common Stock following the Novitex Business Combination and had the right to designate two of the Company’s directors pursuant to a director nomination agreement. Apollo has announced that its affiliated funds ceased being shareholders on March 11, 2020.

On November 18, 2014, one of the Company's subsidiaries entered into a master services agreement with an indirect wholly owned subsidiary of Apollo. Pursuant to this master services agreement, the Company provides printer supplies and maintenance services, including toner maintenance, training, quarterly business review and printer procurement. The Company recognized revenue of $0.6 million, $0.6 million and $0.3 million under this agreement for the years ended December 31, 2019, 2018 and 2017, respectively, in our consolidated statements of operations.

On January 18, 2017, one of the Company’s subsidiaries entered into a master purchase and professional services agreement with Caesars Enterprise Services, LLC (‘‘Caesars’’). Caesars is controlled by investment funds affiliated with Apollo. Pursuant to this master purchase and professional services agreement, the Company provides managed print services to Caesars, including general equipment operation, supply management, support services and technical support. The Company recognized revenue of $4.4 million, $4.1 million and $1.2 million for years ended December 31, 2019, 2018 and 2017.

On May 5, 2017, one of the Company’s subsidiaries entered into a master services agreement with ADT LLC. ADT LLC is controlled by investment funds affiliated with Apollo. Pursuant to this master services agreement, the Company 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. The Company recognized revenue of $1.2 million, $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 years ended December 31, 2019, 2018 and 2017.

On July 20, 2017, one of the Company’s subsidiaries 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, the Company 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 $5.4 million and $5.7 million for the year ended December 31, 2019 and 2018 and cost of revenue of less than $0.1 million for each of the years ended December 31, 2019 and 2018 from Diamond Resorts Centralized Services Company under this master services agreement. No revenue or cost of revenue was recognized in 2017 under this agreement.

In April 2016, one of the Company’s subsidiaries 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. Pursuant to this master services agreement, Presidio Group provides the Company with employees, subcontractors, and/or goods and services. For the years ended December 31, 2019, 2018 and 2017 there were related party expenses of $1.0 million, $0.7 million and $0.3 million, respectively, for this service.

In June 2002, one of the Company’s subsidiaries entered into a systems purchase and license agreement with Evertec Group LLC (“Evertec”). Evertec is controlled by investment funds affiliated with Apollo. Pursuant to the agreement, the Company provided system and ongoing maintenance services as detailed in the agreement. In August, 2016, another subsidiary of the Company entered into an equipment maintenance agreement with Evertec. Pursuant to the equipment maintenance agreement, the Company provides preventive and corrective maintenance service to selected equipment listed in the agreement. The Company recognized revenue of $0.3 million, $0.3 million and $0.1 million under these agreements for the year ended December 31, 2019, 2018 and 2017, respectively, in our consolidated statements of operations.

In June 2019, one of the Company’s subsidiaries entered into a master lease agreement with Presidio Technology Capital, LLC (“Presidio Capital”), a wholly owned subsidiary of Presidio, Inc., a portion of which is owned by affiliates of Apollo. Pursuant to this master lease agreement, Presidio Capital provides the Company certain equipment on finance lease. The Company recorded a finance lease liability of $1.0 million for this lease. As of December 31, 2019, total finance lease liability of the Company included $0.9 million pertaining to this lease.

Relationship with Ex-Sigma and Ex-Sigma 2

The Company made payments totaling $5.6 million to Ex-Sigma 2 during the fourth quarter of 2019. At the time of the payments, they were understood to be a reimbursement of fees and expenses relating to the Appraisal Shares under the terms of the Consent, Waiver and Amendment. At Ex-Sigma 2’s request such amount was remitted to pay down a portion of the Margin Loan on behalf of Ex-Sigma 2. Upon further review, it was determined that such expense reimbursement should be considered a reimbursement of the principal and interest on the Margin Loan and thus not subject to reimbursement under the Consent, Waiver and Amendment. These payments were not authorized or approved in advance by the Audit Committee.

Separately, the Company determined it was obligated to reimburse premium payments of $6.9 million made by Ex-Sigma 2 on the Margin Loan under the terms of the Consent, Waiver and Amendment. Pursuant to a written settlement agreement entered into in June 2020, Ex-Sigma, SourceHOV and the Company agreed that the $5.6 million of payments made during the fourth quarter of 2019 would be accepted to fully discharge the Company’s obligation to reimburse Ex-Sigma 2 for the $6.9 million of premium payments. The Company recorded related party expenses of $1.7 million and $5.2 million during the years ended December 31, 2019 and 2018, respectively, related to the Company’s obligation to reimburse Ex-Sigma 2 for premium payments on the Margin Loan.

The Company incurred reimbursable expenses to Ex-Sigma 2 of $2.1 million and $2.4 million for the years ended December 31, 2019 and 2018, respectively, in connection with secondary offerings of shares by Ex-Sigma 2, the proceeds of which were used to repay the Margin Loan. The reimbursement payments were made in the second half of 2019.

The Company incurred reimbursable expenses to Ex-Sigma 2 of $0.6 million and $0.4 million for the years ended December 31, 2019 and 2018, respectively, in connection with legal expenses of Ex-Sigma 2.

The premium payments, secondary offering fees and legal expenses were reimbursed pursuant to the terms of the Consent, Waiver and Amendment. These expenses are included in related party expense in the consolidated statements of operations.

In addition, in October 2019, the Company awarded $6.3 million in bonuses to certain employees who were also indirect equity holders of Ex-Sigma 2 through their holdings of Ex-Sigma that had been issued upon the vesting of RSUs granted under the 2013 Plan. Ex-Sigma 2 pledged all of its capital stock in the Company as collateral for the Margin Loan. The Company remitted the net amount of $4.6 million (after withholding payroll taxes of $1.7 million) toward the outstanding balance on the Margin Loan in order to benefit such employees.

The bonus amount remitted by the Company was originally determined by Ex-Sigma management based on such employees’ over-all equity ownership of Ex-Sigma. Following payment in full of the Margin Loan, during the first quarter of 2020, Ex-Sigma 2 distributed the shares of the Company’s capital stock held by it to its sole equity holder, Ex-Sigma, who distributed the shares to its equity holders, including the bonus recipients. These bonus payments were not processed or approved according to the Company’s internal control policies. In May 2020, each employee that received the bonus countersigned an authorization letter confirming their authorization for the Company to remit the amount of their net bonus to pay a portion of the Margin Loan.

The Company recorded the $6.3 million bonus payments as compensation expense in selling, general and administrative expenses in the accompanying statements of operations in the fourth quarter of 2019.

Payable and Receivable Balances with Affiliates

Payable and receivable balances with affiliates as of December 31, 2019 and December 31, 2018 are as follows below. As of December 31, 2018 there were no related party receivables:


					December 31,
	December 31, 2019				2018 (As Restated)
	Receivable		Payable		Payable
HOV Services, Ltd	$	601	$	—	$	405
Rule 14		—		250		127
HGM		115		—		6,998
Apollo affiliated company		—		202		205
Oakana		—		1		—
Ex-Sigma 2		—		1,287		7,628
	$	716	$	1,740	$	15,363

Segment and Geographic Area Information

12 Months Ended

Dec. 31, 2019

Segment and Geographic Area Information

Segment and Geographic Area Information

19. 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, approaches 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 segment profit to evaluate operating segment performance and determine how to allocate resources to operating segments. “Segment profit” is defined as revenue less cost of revenue (exclusive of depreciation and amortization). 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. A reconciliation of segment profit to net loss before income taxes is presented below.


		Year ended December 31, 2019
	ITPS		HS		LLPS		Total
Revenue	$	1,234,284	$	256,721	$	71,332	$	1,562,337
Cost of revenue (exclusive of depreciation and amortization)		1,001,655		180,045		43,035		1,224,735
Segment profit		232,629		76,676		28,297		337,602
Selling, general and administrative expenses (exclusive of depreciation and amortization)								198,864
Depreciation and amortization								100,903
Impairment of goodwill and other intangible assets								349,557
Related party expense								9,501
Interest expense, net								163,449
Debt modification and extinguishment costs								1,404
Sundry expense, net								969
Other expense, net								14,429
Net loss before income taxes							$	(501,474)


		Year ended December 31, 2018 (As Restated)
	ITPS		HS		LLPS		Total
Revenue	$	1,273,647	$	228,015	$	84,560	$	1,586,222
Cost of revenue (exclusive of depreciation and amortization)		1,010,320		151,877		51,206		1,213,403
Segment profit		263,327		76,138		33,354		372,819
Selling, general and administrative expenses (exclusive of depreciation and amortization)								184,908
Depreciation and amortization								138,077
Impairment of goodwill and other intangible assets								48,127
Related party expense								12,403
Interest expense, net								155,991
Debt modification and extinguishment costs								1,067
Sundry income, net								(3,271)
Other income, net								(3,030)
Net loss before income taxes							$	(161,453)


		Year ended December 31, 2017 (As Restated)
	ITPS		HS		LLPS		Total
Revenue	$	820,677	$	233,595	$	91,619	$	1,145,891
Cost of revenue (exclusive of depreciation and amortization)		619,694		152,290		55,560		827,544
Segment profit		200,983		81,305		36,059		318,347
Selling, general and administrative expenses (exclusive of depreciation and amortization)								220,955
Depreciation and amortization								98,890
Impairment of goodwill and other intangible assets								69,437
Related party expense								33,431
Interest expense, net								129,676
Debt modification and extinguishment costs								35,512
Sundry expense, net								2,295
Other income, net								(1,297)
Net loss before income taxes							$	(270,552)

The following table presents revenues by principal geographic area where the Company’s customers are located for the years ended December 31, 2019, 2018, and 2017.


	Years ended December 31,
	2019		2018 (As Restated)		2017 (As Restated)
United States	$	1,286,678	$	1,347,516	$	1,000,827
EMEA		248,466		211,314		130,098
Other		27,193		27,392		14,966
Total Consolidated Revenue	$	1,562,337	$	1,586,222	$	1,145,891

Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2019

Unaudited Quarterly Financial Data

Unaudited Quarterly Financial Data

20. Unaudited Quarterly Financial Data

The information for the first three quarters of fiscal 2019 and for all fiscal 2018 quarters has been restated to correct the errors described in Note 3, Restatement of Previously Issued Financial Statements.

The following table presents the quarterly information for fiscal 2019 (dollars in thousands, except per share data):


	Q1 2019 (As Restated)		Q2 2019 (As Restated)		Q3 2019 (As Restated)		Q4 2019
Revenue:
ITPS	$	325,172	$	309,840	$	292,607	$	306,665
HS		61,343		63,440		62,132		69,806
LLPS		17,842		17,569		18,806		17,115
Total Revenue		404,357		390,849		373,545		393,586

Cost of revenue:
ITPS		259,272		249,589		241,867		250,927
HS		40,341		43,353		42,717		53,634
LLPS		10,988		10,889		10,861		10,297
Cost of revenue (exclusive of depreciation and amortization)		310,601		303,831		295,445		314,858

Selling, general and administrative expenses (exclusive of depreciation and amortization)		49,677		51,162		48,347		49,678
Depreciation and amortization		26,624		24,779		25,079		24,421
Impairment of goodwill and other intangible assets		—		—		97,158		252,399
Related party expense		998		5,331		1,430		1,742
Operating income (loss)		16,457		5,746		(93,914)		(249,512)

Other expense (income), net:
Interest expense, net		39,701		39,959		40,573		43,216
Debt modification and extinguishment costs		—		1,404		—		—
Sundry expense (income), net		2,715		(1,311)		165		(600)
Other income, net		1,493		2,527		406		10,003
Net loss before income taxes		(27,452)		(36,833)		(135,058)		(302,131)
Income tax (expense) benefit		(4,720)		(4,738)		3,769		(1,953)
Net loss		(32,172)		(41,571)		(131,289)		(304,084)
Cumulative dividends for Series A Preferred Stock		(914)		(914)		(884)		(597)
Net loss attributable to common stockholders	$	(33,086)	$	(42,485)	$	(132,173)	$	(304,681)
Weighted average outstanding common shares (Refer to Net Loss per Share discussion in Note 2)		145,572,221		145,466,193		145,636,749		146,161,353
Earnings per share:
Basic and diluted	$	(0.23)	$	(0.29)	$	(0.91)	$	(2.09)

The following table presents the quarterly information for fiscal 2018 (dollars in thousands, except per share data):


	Q1 2018 (As Restated)		Q2 2018 (As Restated)		Q3 2018 (As Restated)		Q4 2018 (As Restated)
Revenue:
ITPS	$	311,936	$	330,131	$	307,313	$	324,267
HS		58,632		56,314		56,776		56,293
LLPS		22,599		23,937		18,941		19,083
Total Revenue		393,167		410,382		383,030		399,643

Cost of revenue:
ITPS		246,042		262,066		247,021		255,191
HS		35,192		39,538		37,139		40,008
LLPS		13,663		13,563		12,525		11,455
Cost of revenue (exclusive of depreciation and amortization)		294,897		315,167		296,685		306,654

Selling, general and administrative expenses (exclusive of depreciation and amortization)		45,519		46,378		44,897		48,114
Depreciation and amortization		36,239		34,744		33,410		33,684
Impairment of goodwill and other intangible assets		—		—		—		48,127
Related party expense		1,181		6,783		775		3,664
Operating income (loss)		15,331		7,310		7,263		(40,600)

Other expense (income), net:
Interest expense, net		38,676		39,229		39,087		38,999
Debt modification and extinguishment costs		—		—		1,067		—
Sundry expense (income), net		229		(2,122)		(2,283)		905
Other income, net		(3,621)		(907)		(1,069)		2,567
Net loss before income taxes		(19,953)		(28,890)		(29,539)		(83,071)
Income tax (expense) benefit		(4,025)		(1,619)		733		(3,442)
Net loss		(23,978)		(30,509)		(28,806)		(86,513)
Cumulative dividends for Series A Preferred Stock		(914)		(914)		(914)		(914)
Net loss attributable to common stockholders	$	(24,892)	$	(31,423)	$	(29,720)	$	(87,427)
Weighted average outstanding common shares (Refer to Net Loss per Share discussion in Note 2)		147,569,383		147,688,855		147,092,936		147,773,089
Earnings per share:						—
Basic and diluted	$	(0.17)	$	(0.21)	$	(0.20)	$	(0.59)

The restated quarterly Consolidated Balance Sheets for the first three quarters of fiscal 2019 and fiscal 2018 are presented below:

Exela Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	As of March 31, 2019						As of March 31, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Assets
Current assets
Cash and cash equivalents	$	8,262	$	297	$	8,559	$	26,882	$	2,128	$	29,010	c
Restricted cash		4,998		(297)		4,701		12,549		(2,128)		10,421	c
Accounts receivable, net		278,064		—		278,064		238,680		—		238,680
Inventories, net		16,321		—		16,321		13,519		—		13,519
Prepaid expenses and other current assets		25,330		(78)		25,252		27,520		—		27,520	c
Total current assets		332,975		(78)		332,897		319,150		—		319,150
Property, plant and equipment, net		129,621		—		129,621		132,870		—		132,870
Operating lease right-of-use assets, net		100,727		—		100,727		—		—		—
Goodwill		708,285		—		708,285		747,325		—		747,325
Intangible assets, net		397,412		(13,732)		383,680		438,929		(14,678)		424,251	b
Deferred income tax assets		16,202		120		16,322		9,171		796		9,967	c
Other noncurrent assets		17,667		—		17,667		18,490		—		18,490
Total assets	$	1,702,889	$	(13,690)	$	1,689,199	$	1,665,935	$	(13,882)	$	1,652,053
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payables	$	90,924	$	—	$	90,924	$	77,194	$	—	$	77,194
Related party payables		6,184		7,628		13,812		14,172		—		14,172	c
Income tax payable		4,898		—		4,898		6,967		—		6,967
Accrued liabilities		63,138		41,880		105,018		31,805		38,412		70,217	a, c
Accrued compensation and benefits		57,961		(2,216)		55,745		49,738		(2,459)		47,279	c
Accrued interest		23,928		—		23,928		23,795		—		23,795
Customer deposits		28,410		—		28,410		36,542		—		36,542
Deferred revenue		19,966		—		19,966		15,933		—		15,933
Obligation for claim payment		46,063		—		46,063		56,554		—		56,554
Current portion of finance lease liabilities		15,961		—		15,961		14,785		—		14,785
Current portion of operating lease liabilities		27,368		—		27,368		—		—		—
Current portion of long-term debts		32,821		—		32,821		21,170		—		21,170
Total current liabilities		417,622		47,292		464,914		348,655		35,953		384,608
Long-term debt, net of current maturities		1,336,152		—		1,336,152		1,277,029		—		1,277,029
Finance lease liabilities, net of current portion		27,231		—		27,231		26,474		—		26,474
Pension liabilities		25,514		2,216		27,730		26,081		2,459		28,540	c
Deferred income tax liabilities		12,439		2		12,441		5,478		—		5,478	c
Long-term income tax liabilities		3,158		—		3,158		3,470		—		3,470
Operating lease liabilities, net of current portion		78,290		—		78,290		—		—		—
Other long-term liabilities		6,747		—		6,747		13,879		—		13,879
Total liabilities		1,907,153		49,510		1,956,663		1,701,066		38,412		1,739,478
Commitments and Contingencies
Shareholders' equity (deficit)
Common Stock		15		—		15		15		—		15
Preferred Stock		1		—		1		1		—		1
Additional paid-in capital		482,018		(36,566)		445,452		482,018		(36,566)		445,452
Treasury stock		(10,342)		—		(10,342)		(249)		—		(249)
Equity-based compensation		44,529		—		44,529		35,044		—		35,044
Accumulated deficit		(707,787)		(26,776)		(734,563)		(540,041)		(15,703)		(555,744)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(3,173)		142		(3,031)		(462)		(25)		(487)
Unrealized pension actuarial losses, net of tax		(9,525)		—		(9,525)		(11,457)		—		(11,457)
Total accumulated other comprehensive loss		(12,698)		142		(12,556)		(11,919)		(25)		(11,944)
Total stockholders' equity (deficit)		(204,264)		(63,200)		(267,464)		(35,131)		(52,294)		(87,425)
Total liabilities and equity	$	1,702,889	$	(13,690)	$	1,689,199	$	1,665,935	$	(13,882)	$	1,652,053

As of March 31, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $41.5 million to accrued liabilities at March 31, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $13.7 million of decrease to intangible assets, net at March 31, 2019.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $7.6 million to related party payables.

Other Adjustments - Corrections to other misstatements were as follows: (i) Reclassification of operating accounts that are not restricted resulted in an increase of $0.3 million in cash and cash equivalents and decrease of $0.3 million to restricted cash. (ii) Reclassification of pension liabilities between long-term and short-term resulted in a decrease of $2.2 million to Accrued compensation and benefits and an increase of $2.2 million to pension liabilities. (iii) Correction of non-accrual of legal expenses related to 2019 resulted in an increase of $0.4 million to accrued liabilities.

As of March 31, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $38.4 million to accrued liabilities at March 31, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $14.7 million of decrease to intangible assets, net at March 31, 2018.

(c)

Other Misstatement Adjustments:

Other Adjustments - Corrections to other misstatements were as follows: (i) Reclassification of operating accounts that are not restricted resulted in an increase of $2.1 million in cash and cash equivalents and decrease of $2.1 million to restricted cash. (ii) Reclassification of pension liabilities between long-term and short-term resulted in a decrease of $2.5 million to Accrued compensation and benefits and an increase of $2.5 million to pension liabilities. (iii) The correction of all misstatements resulted in an increase of $0.8 million to deferred income tax assets.

Exela Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	As of June 30, 2019						As of June 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Assets
Current assets
Cash and cash equivalents	$	18,449	$	(43)	$	18,406	$	55,783	$	1,178	$	56,961	c
Restricted cash		4,977		43		5,020		31,088		(1,178)		29,910	c
Accounts receivable, net		266,660		—		266,660		262,260		—		262,260
Related party receivables		206		—		206		—		—		—
Inventories, net		16,735		—		16,735		15,088		—		15,088
Prepaid expenses and other current assets		23,791		(78)		23,713		24,108		—		24,108	c
Total current assets		330,818		(78)		330,740		388,327		—		388,327
Property, plant and equipment, net		125,018		—		125,018		135,585		—		135,585
Operating lease right-of-use assets, net		96,498		—		96,498		—		—		—
Goodwill		708,246		—		708,246		748,708		—		748,708
Intangible assets, net		387,775		(15,771)		372,004		419,725		(14,268)		405,457	b
Deferred income tax assets		16,181		120		16,301		15,280		796		16,076	c
Other noncurrent assets		14,714		—		14,714		21,276		—		21,276
Total assets	$	1,679,250	$	(15,729)	$	1,663,521	$	1,728,901	$	(13,472)	$	1,715,429
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payables	$	99,089	$	—	$	99,089	$	86,304	$	—	$	86,304
Related party payables		238		11,433		11,671		11,987		5,036		17,023	c
Income tax payable		2,525		—		2,525		5,385		—		5,385
Accrued liabilities		59,487		42,778		102,265		40,737		39,114		79,851	a, c
Accrued compensation and benefits		52,493		(2,275)		50,218		50,905		(2,496)		48,409	c
Accrued interest		48,935		—		48,935		48,885		—		48,885
Customer deposits		28,914		—		28,914		36,997		—		36,997
Deferred revenue		19,428		—		19,428		20,654		—		20,654
Obligation for claim payment		41,496		—		41,496		94,233		—		94,233
Current portion of finance lease liabilities		15,897		—		15,897		16,568		—		16,568
Current portion of operating lease liabilities		27,444		—		27,444		—		—		—
Current portion of long-term debts		38,929		—		38,929		16,299		3,500		19,799
Total current liabilities		434,875		51,936		486,811		428,954		45,154		474,108
Long-term debt, net of current maturities		1,331,898		—		1,331,898		1,281,697		(3,500)		1,278,197
Finance lease liabilities, net of current portion		25,772		—		25,772		25,193		—		25,193
Pension liabilities		24,866		2,275		27,141		30,471		2,496		32,967	c
Deferred income tax liabilities		15,896		2		15,898		5,016		—		5,016	c
Long-term income tax liabilities		2,842		—		2,842		3,470		—		3,470
Operating lease liabilities, net of current portion		74,290		—		74,290		—		—		—
Other long-term liabilities		7,882		—		7,882		16,208		—		16,208
Total liabilities		1,918,321		54,213		1,972,534		1,791,009		44,150		1,835,159
Commitments and Contingencies
Shareholders' equity (deficit)
Common Stock		15		—		15		15		—		15
Preferred Stock		1		—		1		1		—		1
Additional paid-in capital		482,018		(36,566)		445,452		482,018		(36,566)		445,452
Treasury stock		(10,949)		—		(10,949)		(3,728)		—		(3,728)
Equity-based compensation		47,190		—		47,190		36,980		—		36,980
Accumulated deficit		(742,616)		(33,518)		(776,134)		(565,222)		(21,031)		(586,253)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(5,461)		142		(5,319)		(1,341)		(25)		(1,366)
Unrealized pension actuarial losses, net of tax		(9,269)		—		(9,269)		(10,831)		—		(10,831)
Total accumulated other comprehensive loss		(14,730)		142		(14,588)		(12,172)		(25)		(12,197)
Total stockholders' equity (deficit)		(239,071)		(69,942)		(309,013)		(62,108)		(57,622)		(119,730)
Total liabilities and equity	$	1,679,250	$	(15,729)	$	1,663,521	$	1,728,901	$	(13,472)	$	1,715,429

As of June 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $42.3 million to accrued liabilities at June 30, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $15.8 million of decrease to intangible assets, net at June 30, 2019.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $11.4 million to related party payables.

Other Adjustments - Corrections to other misstatements were as follows: (i) Reclassification of operating accounts that are not restricted resulted in a decrease of $0.04 million in cash and cash equivalents and increase of $0.04 million to restricted cash. (ii) Reclassification of pension liabilities between long-term and short-term resulted in a decrease of $2.3 million to Accrued compensation and benefits and an increase of $2.3 million to pension liabilities. (iii) Correction of non-accrual of legal expenses related to 2019 resulted in an increase of $0.5 million to accrued liabilities.

As of June 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $39.1 million to accrued liabilities at June 30, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $14.3 million of decrease to intangible assets, net at June 30, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $5.0 million to related party payables.

Other Adjustments - Corrections to other misstatements were as follows: (i) Reclassification of operating accounts that are not restricted resulted in an increase of $1.2 million in cash and cash equivalents and decrease of $1.2 million to restricted cash. (ii) Reclassification of pension liabilities between long-term and short-term resulted in a decrease of $2.5 million to Accrued compensation and benefits and an increase of $2.5 million to pension liabilities. (iii) Reclassification of debt between current and long-term resulted in an increase of $3.5 million to current portion of long-term debts and a decrease of $3.5 million to long-term debt, net of current maturities. (iv)The correction of all misstatements resulted in an increase of $0.8 million to deferred income tax assets.

Exela Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	As of September 30, 2019						As of September 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Assets
Current assets
Cash and cash equivalents	$	10,312	$	(954)	$	9,358	$	40,692	$	514	$	41,206	c
Restricted cash		4,913		954		5,867		8,955		(514)		8,441	c
Accounts receivable, net		260,438		—		260,438		253,986		—		253,986
Related party receivables		42		—		42		—		—		—
Inventories, net		16,996		—		16,996		16,122		—		16,122
Prepaid expenses and other current assets		22,695		(78)		22,617		26,933		—		26,933	c
Total current assets		315,396		(78)		315,318		346,688		—		346,688
Property, plant and equipment, net		119,469		—		119,469		131,156		—		131,156
Operating lease right-of-use assets, net		93,352		—		93,352		—		—		—
Goodwill		609,458		2,524		611,982		749,762		—		749,762
Intangible assets, net		374,445		(17,331)		357,114		398,280		(13,385)		384,895	b
Deferred income tax assets		15,830		120		15,950		14,810		796		15,606	c
Other noncurrent assets		13,557		—		13,557		21,650		—		21,650
Total assets	$	1,541,507	$	(14,765)	$	1,526,742	$	1,662,346	$	(12,589)	$	1,649,757
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payables	$	93,815	$	—	$	93,815	$	90,673	$	—	$	90,673
Related party payables		274		9,933		10,207		10,756		5,036		15,792	c
Income tax payable		—		—		—		5,422		—		5,422
Accrued liabilities		60,994		43,103		104,097		41,397		39,862		81,259	a
Accrued compensation and benefits		51,819		(2,183)		49,636		54,975		(2,511)		52,464	c
Accrued interest		24,602		—		24,602		23,845		—		23,845
Customer deposits		30,161		—		30,161		39,419		—		39,419
Deferred revenue		17,368		—		17,368		18,084		—		18,084
Obligation for claim payment		43,267		—		43,267		52,889		—		52,889
Current portion of finance lease liabilities		15,172		—		15,172		15,926		—		15,926
Current portion of operating lease liabilities		26,604		—		26,604		—		—		—
Current portion of long-term debts		37,237		—		37,237		20,062		—		20,062
Total current liabilities		401,313		50,853		452,166		373,448		42,387		415,835
Long-term debt, net of current maturities		1,367,583		—		1,367,583		1,307,884		—		1,307,884
Finance lease liabilities, net of current portion		24,159		—		24,159		22,945		—		22,945
Pension liabilities		26,667		2,183		28,850		30,376		2,511		32,887	c
Deferred income tax liabilities		12,677		2		12,679		2,115		—		2,115	c
Long-term income tax liabilities		2,892		—		2,892		3,470		—		3,470
Operating lease liabilities, net of current portion		71,661		—		71,661		—		—		—
Other long-term liabilities		7,866		—		7,866		15,307		—		15,307
Total liabilities		1,914,818		53,038		1,967,856		1,755,545		44,898		1,800,443
Commitments and Contingencies
Shareholders' equity (deficit)
Common Stock		15		—		15		15		—		15
Preferred Stock		1		—		1		1		—		1
Additional paid-in capital		482,018		(36,566)		445,452		482,018		(36,566)		445,452
Treasury stock		(10,949)		—		(10,949)		(5,148)		—		(5,148)
Equity-based compensation		48,411		—		48,411		38,601		—		38,601
Accumulated deficit		(876,043)		(31,379)		(907,422)		(594,162)		(20,896)		(615,058)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(7,786)		142		(7,644)		(3,833)		(25)		(3,858)
Unrealized pension actuarial losses, net of tax		(8,978)		—		(8,978)		(10,691)		—		(10,691)
Total accumulated other comprehensive loss		(16,764)		142		(16,622)		(14,524)		(25)		(14,549)
Total stockholders' equity (deficit)		(373,311)		(67,803)		(441,114)		(93,199)		(57,487)		(150,686)
Total liabilities and equity	$	1,541,507	$	(14,765)	$	1,526,742	$	1,662,346	$	(12,589)	$	1,649,757

As of September 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $43.1 million to accrued liabilities at September 30, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $17.3 million of decrease to intangible assets, net at September 30, 2019.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $9.9 million to related party payables.

Other Adjustments - Corrections to other misstatements were as follows: (i) Reclassification of operating accounts that are not restricted resulted in a decrease of $1.0 million in cash and cash equivalents and increase of $1.0 million to restricted cash. (ii) Reclassification of pension liabilities between long-term and short-term resulted in a decrease of $2.2 million to Accrued compensation and benefits and an increase of $2.2 million to pension liabilities. (iii) Correction of goodwill impairment charges resulted in an increase of $2.5 million to goodwill.

As of September 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $39.9 million to accrued liabilities at September 30, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $13.4 million of decrease to intangible assets, net at September 30, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $5.0 million to related party payables for non-accrual of expenses related to reimbursement obligations under the Consent, Waiver and Amendment incurred by Ex-Sigma 2 required to be reimbursed pursuant to the terms of the Consent, Waiver and Amendment.

Other Adjustments - Corrections to other misstatements were as follows: (i) Reclassification of operating accounts that are not restricted resulted in an increase of $0.5 million in cash and cash equivalents and decrease of $0.5 million to restricted cash. (ii) Reclassification of pension liabilities between long-term and short-term resulted in a decrease of $2.5 million to Accrued compensation and benefits and an increase of $2.5 million to pension liabilities. (iii) The correction of all misstatements resulted in an increase of $0.8 million to deferred income tax assets.

The restated quarterly Consolidated Statements of Operations for the first three quarters of fiscal 2019 and each of the quarterly periods in fiscal 2018 are presented below:

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended March 31, 2019
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Revenue	$	403,765	$	592	$	404,357	c
Cost of revenue (exclusive of depreciation and amortization)		306,882		3,719		310,601	b, c
Selling, general and administrative expenses (exclusive of depreciation and amortization)		49,949		(272)		49,677	c
Depreciation and amortization		28,020		(1,396)		26,624	b
Related party expense		994		4		998	c
Operating loss		17,920		(1,463)		16,457
Other expense (income), net:
Interest expense, net		38,899		802		39,701	a
Sundry expense (income), net		2,531		184		2,715	c
Other expense (income), net		1,677		(184)		1,493	c
Net loss before income taxes		(25,187)		(2,265)		(27,452)
Income tax (expense) benefit		(4,720)		—		(4,720)
Net loss	$	(29,907)	$	(2,265)	$	(32,172)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)
Net loss attributable to common stockholders	$	(30,821)	$	(2,265)	$	(33,086)

For the three months ended March 31, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.8 million to interest expense for the three months ended March 31, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $3.1 million of increase to cost of revenue and a decrease of $1.4 million to depreciation and amortization for the three months ended March 31, 2019.

(c)

Other Misstatement Adjustments:

Revenue Recognition Adjustments: The correction of this misstatement resulted in an increase of $0.6 million to revenue and an increase of $0.6 million to cost of revenue for the three months ended March 31, 2019.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction of non-accrual of legal expenses resulted in a decrease of $0.3 million to selling, general and administrative expenses. (ii) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.2 million to sundry expense (income), net and a decrease of $0.2 million to other expense (loss), net.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended June 30, 2019						For the Six Months Ended June 30, 2019
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Revenue	$	390,160	$	689	$	390,849	$	793,924	$	1,282	$	795,206		c
Cost of revenue (exclusive of depreciation and amortization)		298,006		5,825		303,831		604,888		9,544		614,432		b, c
Selling, general and administrative expenses (exclusive of depreciation and amortization)		51,564		(402)		51,162		101,513		(674)		100,839		c
Depreciation and amortization		27,191		(2,412)		24,779		55,211		(3,808)		51,403		b, c
Related party expense		1,055		4,276		5,331		2,049		4,280		6,329		c
Operating loss		12,344		(6,598)		5,746		30,263		(8,060)		22,203
Other expense (income), net:
Interest expense, net		39,132		827		39,959		78,031		1,629		79,660		a
Debt modification and extinguishment costs		1,404		—		1,404		1,404		—		1,404
Sundry expense (income), net		(1,493)		182		(1,311)		1,038		366		1,404		c
Other expense (income), net		2,709		(182)		2,527		4,386		(366)		4,020		c
Net loss before income taxes		(29,408)		(7,425)		(36,833)		(54,596)		(9,689)		(64,285)
Income tax (expense) benefit		(4,738)		—		(4,738)		(9,458)		—		(9,458)
Net loss	$	(34,146)	$	(7,425)	$	(41,571)	$	(64,054)	$	(9,689)	$	(73,743)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)		(1,828)		—		(1,828)
Net loss attributable to common stockholders	$	(35,060)	$	(7,425)	$	(42,485)	$	(65,882)	$	(9,689)	$	(75,571)

For the three months ended June 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.8 million to interest expense for the three months ended June 30, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $4.5 million of increase to cost of revenue and a decrease of $1.7 million to depreciation and amortization for the three months ended June 30, 2019.

(c)

Other Misstatement Adjustments:

Revenue Recognition Adjustments: The correction of this misstatement resulted in an increase of $0.7 million to revenue and an increase of $0.7 million to cost of revenue for the three months ended June 30, 2019.

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $4.3 million to related party expense.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify legal expenses and related party expenses to appropriate quarters resulted in a net decrease of $0.4 million to selling, general and administrative expenses. (ii) Correction of ASC 842 implementation related deferred rents resulted in an increase of $0.7 million to cost of revenue. (iii) Correction of amortization related to internally developed software resulted in $0.7 million of decrease to depreciation and amortization. (iv) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.2 million to sundry expense (income), net and a decrease of $0.2 million to other expense (loss), net.

For the six months ended June 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $1.6 million to interest expense for the six months ended June 30, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $7.6 million of increase to cost of revenue and a decrease of $3.1 million to depreciation and amortization for the six months ended June 30, 2019.

(c)

Other Misstatement Adjustments:

Revenue Recognition Adjustments: The correction of this misstatement resulted in an increase of $1.3 million to revenue and an increase of $1.3 million to cost of revenue for the six months ended June 30, 2019.

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $4.3 million to related party expense.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction of non-accrual of legal expenses resulted in a net decrease of $0.7 million to selling, general and administrative expenses. (ii) Correction of ASC 842 implementation related deferred rents resulted in an increase of $0.7 million to cost of revenue. (iii) Correction of amortization related to internally developed software resulted in $0.7 million of decrease to depreciation and amortization. (iv) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.4 million to sundry expense (income), net and a decrease of $0.4 million to other expense (loss), net.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended September 30, 2019						For the Nine Months Ended September 30, 2019
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Revenue	$	372,917	$	628	$	373,545	$	1,166,841	$	1,910	$	1,168,751	c
Cost of revenue (exclusive of depreciation and amortization)		291,222		4,223		295,445		896,110		13,767		909,877	b, c
Selling, general and administrative expenses (exclusive of depreciation and amortization)		50,372		(2,025)		48,347		151,884		(2,698)		149,186	c
Depreciation and amortization		27,114		(2,035)		25,079		82,326		(5,844)		76,482	b, c
Impairment of goodwill and other intangible assets		99,682		(2,524)		97,158		99,682		(2,524)		97,158
Related party expense		1,405		25		1,430		3,454		4,305		7,759	c
Operating loss		(96,878)		2,964		(93,914)		(66,615)		(5,096)		(71,711)
Other expense (income), net:
Interest expense, net		39,747		826		40,573		117,778		2,457		120,235	a
Debt modification and extinguishment costs		—		—		—		1,404		—		1,404
Sundry expense (income), net		(10)		175		165		1,028		541		1,569	c
Other expense (income), net		581		(175)		406		4,965		(541)		4,424	c
Net loss before income taxes		(137,196)		2,138		(135,058)		(191,790)		(7,553)		(199,343)
Income tax (expense) benefit		3,769		—		3,769		(5,689)		—		(5,689)
Net loss	$	(133,427)	$	2,138	$	(131,289)	$	(197,479)	$	(7,553)	$	(205,032)
Cumulative dividends for Series A Preferred Stock		(884)		—		(884)		(2,712)		—		(2,712)
Net loss attributable to common stockholders	$	(134,311)	$	2,138	$	(132,173)	$	(200,191)	$	(7,553)	$	(207,744)

For the three months ended September 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.8 million to interest expense for the three months ended September 30, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $3.6 million of increase to cost of revenue and a decrease of $2.7 million to depreciation and amortization for the three months ended September 30, 2019.

(c)

Other Misstatement Adjustments:

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify legal expenses and related party expenses to appropriate quarters resulted in a net decrease of $2.0 million to selling, general and administrative expenses. (ii) Correction to reclassify goodwill impairment charges resulted in a decrease of $2.5 million to goodwill (iii) Correction of amortization related to internally developed software resulted in $0.7 million of increase to depreciation and amortization. (iv) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.2 million to sundry expense (income), net and a decrease of $0.2 million to other expense (loss), net.

For the nine months ended September 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $2.5 million to interest expense for the nine months ended September 30, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $11.2 million of increase to cost of revenue and a decrease of $5.8 million to depreciation and amortization for the nine months ended September 30, 2019.

(c)

Other Misstatement Adjustments:

Revenue Recognition Adjustments: The correction of this misstatement resulted in an increase of $1.9 million to revenue and an increase of $1.9 million to cost of revenue for the nine months ended September 30, 2019.

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $4.3 million to related party expense.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify legal expenses and related party expenses to appropriate quarters resulted in a net decrease of $2.7 million to selling, general and administrative expenses. (ii) Correction to reclassify goodwill impairment charges resulted in a decrease of $2.5 million to goodwill (iii) Correction of ASC 842 implementation related deferred rents resulted in an increase of $0.7 million to cost of revenue. (iv) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.5 million to sundry expense (income), net and a decrease of $0.5 million to other expense (loss), net.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended March 31, 2018
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Revenue	$	393,167	$	—	$	393,167
Cost of revenue (exclusive of depreciation and amortization)		293,792		1,105		294,897	b
Selling, general and administrative expenses (exclusive of depreciation and amortization)		45,595		(76)		45,519	c
Depreciation and amortization		38,019		(1,780)		36,239	b
Related party expense		1,105		76		1,181	c
Operating loss		14,656		675		15,331
Other expense (income), net:
Interest expense, net		38,017		659		38,676	a
Sundry expense (income), net		(64)		293		229	c
Other expense (income), net		(3,328)		(293)		(3,621)	c
Net loss before income taxes		(19,969)		16		(19,953)
Income tax (expense) benefit		(4,025)		—		(4,025)
Net loss	$	(23,994)	$	16	$	(23,978)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)
Net loss attributable to common stockholders	$	(24,908)	$	16	$	(24,892)

For the three months ended March 31, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.7 million to interest expense for the three months ended March 31, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $1.1 million of increase to cost of revenue and a decrease of $1.8 million to depreciation and amortization for the three months ended March 31, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $0.1 million to related party expense.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify legal expenses as related party expenses resulted in a net decrease of $0.1 million to selling, general and administrative expenses. (ii) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.3 million to sundry expense (income), net and a decrease of $0.3 million to other expense (loss), net.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended June 30, 2018						For the Six Months Ended June 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Revenue	$	410,382	$	—	$	410,382	$	803,549	$	—	$	803,549
Cost of revenue (exclusive of depreciation and amortization)		313,954		1,213		315,167		607,746		2,318		610,064	b
Selling, general and administrative expenses (exclusive of depreciation and amortization)		46,723		(345)		46,378		92,318		(421)		91,897	c
Depreciation and amortization		36,368		(1,624)		34,744		74,386		(3,404)		70,982	b
Related party expense		1,402		5,381		6,783		2,507		5,457		7,964	c
Operating loss		11,935		(4,625)		7,310		26,592		(3,950)		22,642
Other expense (income), net:
Interest expense, net		38,527		702		39,229		76,544		1,361		77,905	a
Sundry expense (income), net		(2,325)		203		(2,122)		(2,389)		496		(1,893)	c
Other expense (income), net		(704)		(203)		(907)		(4,032)		(496)		(4,528)	c
Net loss before income taxes		(23,563)		(5,327)		(28,890)		(43,531)		(5,311)		(48,842)
Income tax (expense) benefit		(1,619)		—		(1,619)		(5,644)		—		(5,644)
Net loss	$	(25,182)	$	(5,327)	$	(30,509)	$	(49,175)	$	(5,311)	$	(54,486)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)		(1,828)		—		(1,828)
Net loss attributable to common stockholders	$	(26,096)	$	(5,327)	$	(31,423)	$	(51,003)	$	(5,311)	$	(56,314)

For the three months ended June 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.7 million to interest expense for the three months ended June 30, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $1.2 million of increase to cost of revenue and a decrease of $1.6 million to depreciation and amortization for the three months ended June 30, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $5.4 million to related party expense.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify legal expenses as related party expenses resulted in a net decrease of $0.3 million to selling, general and administrative expenses. (ii) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.2 million to sundry expense (income), net and a decrease of $0.2 million to other expense (loss), net.

For the six months ended June 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $1.4 million to interest expense for the six months ended June 30, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $2.3 million of increase to cost of revenue and a decrease of $3.4 million to depreciation and amortization for the six months ended June 30, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $5.5 million to related party expense.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify legal expenses as related party expenses resulted in a net decrease of $0.4 million to selling, general and administrative expenses. (ii) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.5 million to sundry expense (income), net and a decrease of $0.5 million to other expense (loss), net.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended September 30, 2018						For the Nine Months Ended September 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Revenue	$	383,030	$	—	$	383,030	$	1,186,579	$	—	$	1,186,579
Cost of revenue (exclusive of depreciation and amortization)		295,936		749		296,685		903,682		3,067		906,749	b
Selling, general and administrative expenses (exclusive of depreciation and amortization)		44,913		(16)		44,897		137,231		(437)		136,794	c
Depreciation and amortization		35,041		(1,631)		33,410		109,428		(5,035)		104,393	b
Related party expense		759		16		775		3,267		5,472		8,739	c
Operating loss		6,381		882		7,263		32,971		(3,067)		29,904
Other expense (income), net:
Interest expense, net		38,339		748		39,087		114,883		2,109		116,992	a
Debt modification and extinguishment costs		1,067		—		1,067		1,067		—		1,067
Sundry expense (income), net		(2,571)		288		(2,283)		(4,961)		785		(4,176)	c
Other expense (income), net		(781)		(288)		(1,069)		(4,813)		(784)		(5,597)	c
Net loss before income taxes		(29,673)		134		(29,539)		(73,205)		(5,177)		(78,382)
Income tax (expense) benefit		733		—		733		(4,911)		—		(4,911)
Net loss	$	(28,940)	$	134	$	(28,806)	$	(78,116)	$	(5,177)	$	(83,293)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)		(2,742)		—		(2,742)
Net loss attributable to common stockholders	$	(29,854)	$	134	$	(29,720)	$	(80,858)	$	(5,177)	$	(86,035)

For the three months ended September 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.7 million to interest expense for the three months ended September 30, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $0.7 million of increase to cost of revenue and a decrease of $1.6 million to depreciation and amortization for the three months ended September 30, 2018.

(c)

Other Misstatement Adjustments:

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.3 million to sundry expense (income), net and a decrease of $0.3 million to other expense (loss), net.

For the nine months ended September 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $2.1 million to interest expense for the nine months ended September 30, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $3.0 million of increase to cost of revenue and a decrease of $5.0 million to depreciation and amortization for the nine months ended September 30, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $5.5 million to related party expense.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify legal expenses as related party expenses resulted in a net decrease of $0.4 million to selling, general and administrative expenses. (ii) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.8 million to sundry expense (income), net and a decrease of $0.8 million to other expense (loss), net.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended December 31, 2018
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Revenue	$	399,643	$	—	$	399,643
Cost of revenue (exclusive of depreciation and amortization)		306,192		462		306,654	b, c
Selling, general and administrative expenses (exclusive of depreciation and amortization)		47,420		694		48,114	c
Depreciation and amortization		36,057		(2,373)		33,684	b
Impairment of goodwill and other intangible assets		48,127		—		48,127
Related party expense		1,068		2,596		3,664	c
Operating loss		(39,221)		(1,379)		(40,600)
Other expense (income), net:
Interest expense, net		38,212		787		38,999	a
Sundry expense (income), net		1,689		(784)		905	c
Other expense (income), net		1,783		784		2,567	c
Net loss before income taxes		(80,905)		(2,166)		(83,071)
Income tax (expense) benefit		(3,496)		54		(3,442)
Net loss	$	(84,401)	$	(2,112)	$	(86,513)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)
Net loss attributable to common stockholders	$	(85,315)	$	(2,112)	$	(87,427)

For the three months ended December 31, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.8 million to interest expense for the three months ended December 31, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in an increase of $1.2 million in cost of revenue and a decrease of $2.4 million to depreciation and amortization for the three months ended December 31, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $2.6 million to related party expense.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction of ASC 842 implementation related deferred rents resulted in a decrease of $0.7 million to cost of revenue. (ii) Correction of non-accrual of legal expenses resulted in an increase of $0.7 million to selling, general and administrative expenses. (iii) Correction to reclassify foreign exchange transaction gain / loss resulted in a decrease of $0.8 million to sundry expense (income), net and an increase of $0.8 million to other expense (loss), net.

The restated quarterly Consolidated Statements of Comprehensive Loss for the first three quarters of fiscal 2019 and each of the quarterly periods in fiscal 2018 are presented below:

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended March 31, 2019
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Net loss	$	(29,907)	$	(2,265)	$	(32,172)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		3,392		—		3,392
Unrealized pension actuarial gains (losses), net of tax		(224)		—		(224)
Total other comprehensive loss, net of tax	$	(26,739)	$	(2,265)	$	(29,004)

For the three months ended March 31, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months ended March 31, 2019 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended June 30, 2019						For the Six Months Ended June 30, 2019
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Net loss	$	(34,146)	$	(7,425)	$	(41,571)	$	(64,054)	$	(9,689)	$	(73,743)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(2,288)		—		(2,288)		1,104		—		1,104
Unrealized pension actuarial gains (losses), net of tax		256		—		256		32		—		32
Total other comprehensive loss, net of tax	$	(36,178)	$	(7,425)	$	(43,603)	$	(62,918)	$	(9,689)	$	(72,607)

For the three months and six months ended June 30, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months and six months ended June 30, 2019 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended September 30, 2019						For the Nine Months Ended September 30, 2019
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Net loss	$	(133,427)	$	2,138	$	(131,289)	$	(197,479)	$	(7,553)	$	(205,032)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(2,325)		—		(2,325)		(1,221)		—		(1,221)
Unrealized pension actuarial gains (losses), net of tax		291		—		291		323		—		323
Total other comprehensive loss, net of tax	$	(135,461)	$	2,138	$	(133,323)	$	(198,377)	$	(7,553)	$	(205,930)

For the three months and nine months ended September 30, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months and nine months ended September 30, 2019 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended March 31, 2018
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Net loss	$	(23,994)	$	16	$	(23,978)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(268)		—		(268)
Unrealized pension actuarial gains (losses), net of tax		(403)		—		(403)
Total other comprehensive loss, net of tax	$	(24,665)	$	16	$	(24,649)

For the three months ended March 31, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months ended March 31, 2018 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended June 30, 2018						For the Six Months Ended June 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Net loss	$	(25,182)	$	(5,327)	$	(30,509)	$	(49,175)	$	(5,311)	$	(54,486)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(879)		—		(879)		(1,147)		—		(1,147)
Unrealized pension actuarial gains (losses), net of tax		626		—		626		223		—		223
Total other comprehensive loss, net of tax	$	(25,435)	$	(5,327)	$	(30,762)	$	(50,099)	$	(5,311)	$	(55,410)

For the three months and six months ended June 30, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months and six months ended June 30, 2018 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended September 30, 2018						For the Nine Months Ended September 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Net loss	$	(28,940)	$	134	$	(28,806)	$	(78,116)	$	(5,177)	$	(83,293)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(2,492)		—		(2,492)		(3,639)		—		(3,639)
Unrealized pension actuarial gains (losses), net of tax		140		—		140		363		—		363
Total other comprehensive loss, net of tax	$	(31,292)	$	134	$	(31,158)	$	(81,392)	$	(5,177)	$	(86,569)

For the three months and nine months ended September 30, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months and nine months ended September 30, 2018 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended December 31, 2018
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Net loss	$	(84,401)	$	(2,112)	$	(86,513)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(2,733)		167		(2,566)	c
Unrealized pension actuarial gains (losses), net of tax		1,390		—		1,390
Total other comprehensive loss, net of tax	$	(85,744)	$	(1,945)	$	(87,689)

For the three months ended December 31, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months ended December 31, 2018 above.

The $0.2 million decrease to foreign currency translation adjustments is primarily the result of changes in outsourced contract costs for foreign subsidiaries.

The restated Consolidated Statement of Cash Flows for the year-to-date periods of the first three quarters of fiscal 2019 and fiscal 2018 are presented below (dollars in thousands):

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands of United States dollars unless otherwise stated)

(Unaudited)


	For the Three Months Ended March 31, 2019						For the Three Months Ended March 31, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Cash flows from operating activities
Net loss	$	(29,907)	$	(2,265)	$	(32,172)	$	(23,994)	$	16	$	(23,978)
Adjustments to reconcile net loss
Depreciation and amortization		28,020		(1,396)		26,624		38,019		(1,780)		36,239	b
Original issue discount and debt issuance cost amortization		2,852		—		2,852		2,595		—		2,595
Provision for doubtful accounts		800		—		800		481		—		481
Deferred income tax provision		1,076		—		1,076		835		—		835
Share-based compensation expense		2,798		—		2,798		959		—		959
Foreign currency remeasurement		35		—		35		(323)		—		(323)
Loss (gain) on sale of assets		9		45		54		253		26		279	c
Fair value adjustment for interest rate swap		1,677		—		1,677		(3,328)		—		(3,328)
Change in operating assets and liabilities, net effect from acquisitions:
Accounts receivable		(8,742)		—		(8,742)		(10,875)		—		(10,875)
Prepaid expenses and other assets		(632)		—		(632)		(5,567)		—		(5,567)
Accounts payable and accrued liabilities		(33,574)		541		(33,033)		(18,864)		659		(18,205)	c
Related party payables		(1,551)		—		(1,551)		(273)		—		(273)
Additions to outsource contract costs		—		(2,434)		(2,434)		—		(492)		(492)	b
Net cash provided by (used in) operating activities		(37,139)		(5,509)		(42,648)		(20,082)		(1,571)		(21,653)

Cash flows from investing activities
Purchases of property, plant, and equipment		(5,572)		—		(5,572)		(5,957)		—		(5,957)
Additions to internally developed software		(1,879)		—		(1,879)		(1,092)		—		(1,092)
Additions to outsourcing contract costs		(5,561)		5,561		—		(1,596)		1,596		—	b
Proceeds from sale of assets		7		—		7		2		—		2
Net cash provided by (used in) investing activities		(13,005)		5,561		(7,444)		(8,643)		1,596		(7,047)

Cash flows from financing activities
Repurchases of Common Stock		(2,872)		—		(2,872)		—		—		—
Borrowings from other loans		566		6,338		6,904		1,863		—		1,863	c
Net borrowings under factoring arrangement		1,118		—		1,118		—		—		—
Lease terminations		—		(45)		(45)		—		(26)		(26)	c
Cash paid for equity issuance costs		—		—		—		(7,500)		—		(7,500)
Borrowings from senior secured revolving facility		51,000		—		51,000		25,000		—		25,000
Repayments on senior secured revolving facility		(21,000)		—		(21,000)		(25,000)		—		(25,000)
Principal payments on finance lease obligations		(5,077)		—		(5,077)		(4,803)		—		(4,803)
Principal repayments on senior secured term loans and other loans		(4,153)		(6,345)		(10,498)		(2,947)		—		(2,947)	c
Net cash provided by (used in) financing activities		19,582		(52)		19,530		(13,387)		(26)		(13,413)
Effect of exchange rates on cash		(32)		—		(32)		55		—		55
Net increase (decrease) in cash and cash equivalents		(30,594)		—		(30,594)		(42,057)		(1)		(42,058)
Cash, restricted cash, and cash equivalents
Beginning of period		43,854		—		43,854		81,489		—		81,489
End of period	$	13,260	$	—	$	13,260	$	39,432	$	(1)	$	39,431
Supplemental cash flow data:
Income tax payments, net of refunds received	$	1,356	$	—	$	1,356	$	1,053	$	—	$	1,053
Interest paid		60,573		—		60,573		66,192		—		66,192
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements		4,097		—		4,097		4,432		—		4,432
Leasehold improvements funded by lessor		—		—		—		—		—		—
Accrued capital expenditures		809		—		809		1,101		—		1,101

For the three months ended March 31, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months ended March 31, 2019 above.

The misstatements in the outsourcing contract cost adjustment category resulted in a decrease to net cash flows provided by operating activities of $3.8 million ($1.4 million of depreciation and amortization and $2.4 million of additions to outsourcing contract costs), and an increase to net cash flows provided by investing activities of $5.6 million (Additions to outsourcing contract costs) for the three months ended March 31, 2019.

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the three months ended March 31, 2019.

For the three months ended March 31, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months ended March 31, 2018 above.

The misstatements in the outsourcing contract cost adjustment category resulted in a decrease to net cash flows provided by operating activities of $2.3 million ($1.8 million of depreciation and amortization and $0.5 million of additions to outsourcing contract costs), and an increase to net cash flows provided by investing activities of $1.6 million (Additions to outsourcing contract costs) for the three months ended March 31, 2018.

The misstatements in the cash flow misclassifications category related to lease terminations resulted in a decrease to net cash flows provided by financing activities of $0.03 million and an increase to net cash flows provided by operating activities of $0.03 million for the year ended December 31, 2018 (Loss on sale of assets and lease terminations).

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the three months ended March 31, 2018.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands of United States dollars unless otherwise stated)

(Unaudited)


	For the Six Months Ended June 30, 2019						For the Six Months Ended June 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Cash flows from operating activities
Net loss	$	(64,054)	$	(9,689)	$	(73,743)	$	(49,175)	$	(5,311)	$	(54,486)
Adjustments to reconcile net loss
Depreciation and amortization		55,211		(3,808)		51,403		74,386		(3,404)		70,982	b, c
Original issue discount and debt issuance cost amortization		5,749		—		5,749		5,272		—		5,272
Debt modification and extinguishment costs		1,049		—		1,049		—		—		—
Provision for doubtful accounts		3,334		—		3,334		1,857		—		1,857
Deferred income tax provision		4,623		—		4,623		705		—		705
Share-based compensation expense		5,459		—		5,459		2,895		—		2,895
Foreign currency remeasurement		288		—		288		(1,156)		—		(1,156)
Loss (gain) on sale of assets		(10)		95		85		1,340		55		1,395	c
Fair value adjustment for interest rate swap		4,385		—		4,385		(4,675)		—		(4,675)
Change in operating assets and liabilities, net effect from acquisitions:
Accounts receivable		624		—		624		(19,813)		—		(19,813)
Prepaid expenses and other assets		1,260		—		1,260		(1,603)		—		(1,603)
Accounts payable and accrued liabilities		(14,991)		2,396		(12,595)		40,677		1,361		42,038	c
Related party payables		(7,703)		3,804		(3,899)		(2,458)		5,036		2,578	c
Additions to outsource contract costs		—		(2,860)		(2,860)		—		(1,377)		(1,377)	b
Net cash provided by (used in) operating activities		(4,776)		(10,062)		(14,838)		48,252		(3,640)		44,612

Cash flows from investing activities
Purchases of property, plant, and equipment		(9,072)		—		(9,072)		(10,244)		—		(10,244)
Additions to internally developed software		(4,007)		—		(4,007)		(2,115)		—		(2,115)
Additions to outsourcing contract costs		(10,440)		10,440		—		(3,695)		3,695		—	b
Proceeds from sale of assets		20		—		20		1,014		—		1,014
Cash paid in acquisition, net of cash received		(5,000)		—		(5,000)		(4,145)		—		(4,145)
Net cash provided by (used in) investing activities		(28,499)		10,440		(18,059)		(19,185)		3,695		(15,490)

Cash flows from financing activities
Third party debt modification and extinguishment costs		355		(355)		—		—		—		—	c
Repurchases of Common Stock		(3,480)		—		(3,480)		(3,479)		—		(3,479)
Borrowings from other loans		1,544		12,548		14,092		2,152		—		2,152	c
Net borrowings under factoring arrangement		2,426		—		2,426		—		—		—
Proceeds from senior secured term loans		29,850		—		29,850		—		—		—
Lease terminations		—		(95)		(95)		—		(56)		(56)	c
Cash paid for debt issuance costs		(362)		355		(7)		—		—		—	c
Cash paid for equity issuance costs		—		—		—		(7,500)		—		(7,500)
Borrowings from senior secured revolving facility		68,000		—		68,000		30,000		—		30,000
Repayments on senior secured revolving facility		(68,000)		—		(68,000)		(30,000)		—		(30,000)
Principal payments on finance lease obligations		(9,180)		—		(9,180)		(8,404)		—		(8,404)
Principal repayments on senior secured term loans and other loans		(8,417)		(12,831)		(21,248)		(6,043)		—		(6,043)	c
Net cash provided by (used in) financing activities		12,736		(378)		12,358		(23,274)		(56)		(23,330)
Effect of exchange rates on cash		111		—		111		(410)		—		(410)
Net increase (decrease) in cash and cash equivalents		(20,428)		—		(20,428)		5,383		(1)		5,382
Cash, restricted cash, and cash equivalents
Beginning of period		43,854		—		43,854		81,489		—		81,489
End of period	$	23,426	$	—	$	23,426	$	86,872	$	(1)	$	86,871
Supplemental cash flow data:
Income tax payments, net of refunds received	$	5,181	$	—	$	5,181	$	3,864	$	—	$	3,864
Interest paid		71,240		(29)		71,211		76,353		—		76,353	c
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements		6,778		—		6,778		7,787		—		7,787
Leasehold improvements funded by lessor		—		—		—		1,540		—		1,540
Accrued capital expenditures		1,083		—		1,083		1,144		—		1,144

For the six months ended June 30, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the six months ended June 30, 2019 above.

The misstatements in the outsourcing contract cost adjustment category resulted in a decrease to net cash flows provided by operating activities of $6.7 million ($3.8 million of depreciation and amortization and $2.9 million of additions to outsourcing contract costs), and an increase to net cash flows provided by investing activities of $10.4 million (Additions to outsourcing contract costs) for the six months ended June 30, 2019.

The misstatements in the cash flow misclassifications category related to (i) Lease terminations resulted in a decrease to net cash flows provided by financing activities of $0.1 million and an increase to net cash flows provided by operating activities of $0.1 million for the year ended December 31, 2018. (Loss on sale of assets and lease terminations), (ii) Grossing up of borrowing and pay downs of a working capital loan on a foreign subsidiary resulting in an increase of $12.5 million of borrowings from other loans and a decrease of $12.8 million of principal repayments on other loans, both of which were neutral and within net cash provided by financing, and (iii) Cash flow classification adjustment related to incorrect interpretation of ASU 2016-15 (Classification of Certain Receipts and Cash Payments) in 2018 resulted in a line item classification change within cash flows provided by financing activities (Decrease of $0.4 million of Third party debt modification and extinguishment costs and an increase of $0.4 million of cash paid for debt issuance costs).

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the six months ended June 30, 2019.

For the six months ended June 30, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the six months ended June 30, 2018 above.

The misstatements in the outsourcing contract cost adjustment category resulted in a decrease to net cash flows provided by operating activities of $4.8 million ($3.4 million of depreciation and amortization and $1.4 million of additions to outsourcing contract costs), and an increase to net cash flows provided by investing activities of $3.7 million (Additions to outsourcing contract costs) for the six months ended June 30, 2018.

The misstatements in the cash flow misclassifications category related to lease terminations resulted in a decrease to net cash flows provided by financing activities of $0.06 million and an increase to net cash flows provided by operating activities of $0.06 million for the six months ended June 30, 2018.

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the six months ended June 30, 2018.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands of United States dollars unless otherwise stated)

(Unaudited)


	For the Nine Months Ended September 30, 2019						For the Nine Months Ended September 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Cash flows from operating activities
Net loss	$	(197,479)	$	(7,553)	$	(205,032)	$	(78,116)	$	(5,177)	$	(83,293)
Adjustments to reconcile net loss
Depreciation and amortization		82,326		(5,844)		76,482		109,428		(5,035)		104,393	b
Original issue discount and debt issuance cost amortization		8,730		—		8,730		8,062		—		8,062
Impairment of goodwill and other intangible assets		99,682		(2,524)		97,158		—		—		—	c
Debt modification and extinguishment costs		1,049		—		1,049		—		103		103
Provision for doubtful accounts		4,402		—		4,402		2,470		—		2,470
Deferred income tax provision		1,632		—		1,632		(3,689)		—		(3,689)
Share-based compensation expense		6,903		—		6,903		4,516		—		4,516
Foreign currency remeasurement		(173)		—		(173)		(2,040)		—		(2,040)
Loss (gain) on sale of assets		(191)		314		123		1,835		213		2,048	c
Fair value adjustment for interest rate swap		4,965		—		4,965		(5,456)		—		(5,456)
Change in operating assets and liabilities, net effect from acquisitions:
Accounts receivable		3,501		—		3,501		(6,374)		—		(6,374)
Prepaid expenses and other assets		2,377		—		2,377		(5,770)		—		(5,770)
Accounts payable and accrued liabilities		(43,861)		2,715		(41,146)		(23,457)		2,109		(21,348)	c
Related party payables		(7,502)		2,304		(5,198)		(3,689)		5,036		1,347	c
Additions to outsource contract costs		—		(3,130)		(3,130)		—		(2,360)		(2,360)	b
Net cash provided by (used in) operating activities		(33,639)		(13,718)		(47,357)		(2,280)		(5,111)		(7,391)

Cash flows from investing activities
Purchases of property, plant, and equipment		(10,797)		—		(10,797)		(14,077)		—		(14,077)
Additions to internally developed software		(5,074)		—		(5,074)		(3,080)		—		(3,080)
Additions to outsourcing contract costs		(14,304)		14,304		—		(5,427)		5,427		—	b
Proceeds from sale of assets		360		—		360		1,095		—		1,095
Cash paid in acquisition, net of cash received		(5,000)		—		(5,000)		(6,513)		—		(6,513)
Net cash provided by (used in) investing activities		(34,815)		14,304		(20,511)		(28,002)		5,427		(22,575)

Cash flows from financing activities
Third party debt modification and extinguishment costs		355		(355)		—		1,067		(1,067)		—	c
Repurchases of Common Stock		(3,480)		—		(3,480)		(4,899)		—		(4,899)
Borrowings from other loans		1,728		19,802		21,530		3,068		—		3,068	c
Net borrowings under factoring arrangement		(494)		—		(494)		—		—		—
Cash paid for withholding taxes on vested RSUs		(223)		—		(223)		—		—		—
Proceeds from senior secured term loans		29,850		—		29,850		30,000		—		30,000
Lease terminations		—		(314)		(314)		—		(213)		(213)	c
Cash paid for debt issuance costs		(362)		355		(7)		(1,094)		964		(130)	c
Cash paid for equity issuance costs		—		—		—		(7,500)		—		(7,500)
Borrowings from senior secured revolving facility		130,500		—		130,500		30,000		—		30,000
Repayments on senior secured revolving facility		(91,500)		—		(91,500)		(30,000)		—		(30,000)
Principal payments on finance lease obligations		(13,598)		—		(13,598)		(12,594)		—		(12,594)
Principal repayments on senior secured term loans and other loans		(12,922)		(20,074)		(32,996)		(9,053)		—		(9,053)	c
Net cash provided by (used in) financing activities		39,854		(586)		39,268		(1,005)		(316)		(1,321)
Effect of exchange rates on cash		(29)		—		(29)		(555)		—		(555)
Net increase (decrease) in cash and cash equivalents		(28,629)		—		(28,629)		(31,842)		—		(31,842)
Cash, restricted cash, and cash equivalents
Beginning of period		43,854		—		43,854		81,489		—		81,489
End of period	$	15,225	$	—	$	15,225	$	49,647	$	—	$	49,647
Supplemental cash flow data:
Income tax payments, net of refunds received	$	6,981	$	—	$	6,981	$	5,296	$	—	$	5,296
Interest paid		131,773		(29)		131,744		136,396		—		136,396	c
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements		9,352		—		9,352		9,318		—		9,318
Leasehold improvements funded by lessor		—		—		—		1,565		—		1,565
Accrued capital expenditures		1,083		1,305		2,388		1,994		—		1,994	c

For the nine months ended September 30, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the nine months ended September 30, 2019 above.

The misstatements in the outsourcing contract cost adjustment category resulted in a decrease to net cash flows provided by operating activities of $8.9 million ($5.8 million of depreciation and amortization and $3.1 million of additions to outsourcing contract costs), and an increase to net cash flows provided by investing activities of $14.3 million (Additions to outsourcing contract costs) for the nine months ended September 30, 2019.

The misstatements in the cash flow misclassifications category related to (i) Lease terminations resulted in a decrease to net cash flows provided by financing activities of $0.3 million and an increase to net cash flows provided by operating activities of $0.3 million for the year ended December 31, 2018. (Loss on sale of assets and lease terminations), (ii) Grossing up of borrowing and pay downs of a working capital loan on a foreign subsidiary resulting in an increase of $19.8 million of borrowings from other loans and a decrease of $20.1 million of principal repayments on other loans, both of which were within net cash provided by financing, and (iii) Cash flow classification adjustment related to incorrect interpretation of ASU 2016-15 (Classification of Certain Receipts and Cash Payments) in 2018 resulted in a line item classification change within cash flows provided by financing activities (Decrease of $0.4 million of Third party debt modification and extinguishment costs and an increase of $0.4 million of cash paid for debt issuance costs).

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the nine months ended September 30, 2019.

For the nine months ended September 30, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the nine months ended September 30, 2018 above.

The misstatements in the outsourcing contract cost adjustment category resulted in a decrease to net cash flows provided by operating activities of $7.4 million ($5.0 million of depreciation and amortization and $2.4 million of additions to outsourcing contract costs), and an increase to net cash flows provided by investing activities of $5.4 million (Additions to outsourcing contract costs) for the nine months ended September 30, 2018.

The misstatements in the cash flow misclassifications category related to (i) Lease terminations resulted in a decrease to net cash flows provided by financing activities of $0.2 million and an increase to net cash flows provided by operating activities of $0.2 million for the year ended December 31, 2018 (Loss on sale of assets and lease terminations), (ii) Cash flow classification adjustment related to incorrect interpretation of ASU 2016-15 (Classification of Certain Receipts and Cash Payments) in 2018 resulted in a net increase to cash flows provided by operating activities of $0.1 million, a decrease to net cash flows provided by financing activities of $0.1 million for the year ended December 31, 2018. (Increase of $0.1 million to Debt modification and extinguishment costs, a decrease of $1.1 million to third party debt modification and extinguishment costs and an increase of $1.0 million to cash paid for debt issuance costs)

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the nine months ended September 30, 2018.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2019
Subsequent Events.
Subsequent Events	21. Subsequent Events The Company performed its subsequent event procedures through June 8, 2020, the date these consolidated financial statements were made available for issuance. Receivables Securitization Facility On January 10, 2020, certain subsidiaries of the Company entered into a $160.0 million accounts receivable securitization facility (the “A/R Facility”) with a five year term. In the A/R Facility, (i) Exela Receivables 1, LLC (the “A/R Borrower”), a wholly-owned indirect subsidiary of the Company, entered into a Loan and Security Agreement (the “A/R Loan Agreement”), dated as of January 10, 2020, with TPG Specialty Lending, Inc., as administrative agent (the “A/R Administrative Agent”), PNC Bank National Association, as LC Bank (the “LC Bank”), the lenders (each, an “A/R Lender” and collectively the “A/R Lenders”) and the Company, as initial servicer, pursuant to which the A/R Lenders will make loans (the “Loan”) to the A/R Borrower to be used to purchase certain receivables and related assets from its sole member, Exela Receivables Holdco, LLC (the “Parent SPE”), a wholly-owned indirect subsidiary of the Company, (ii) sixteen other indirect, wholly-owned U.S. subsidiaries of the Company (collectively, the “Originators”) sold or contributed and will sell or contribute to the Parent SPE certain receivables and related assets in consideration for a combination of cash, equity in the Parent SPE and/or letters of credit issued by the LC Bank to the Originators; and (iii) the Parent SPE has sold or contributed and will sell or contribute to the Borrower certain receivables and related assets in consideration for a combination of cash, equity in the A/R Borrower and/or letters of credit issued by the LC Bank to the beneficiaries elected by Parent SPE. The Company, the Parent SPE, the A/R Borrower and the Originators provide customary representations and covenants pursuant to the agreements entered into in connection with the A/R Facility. The A/R Loan Agreement provides for certain events of default upon the occurrence of which the A/R Administrative Agent may declare the A/R Facility’s termination date to have occurred and declare the outstanding Loan and all other obligations of the A/R Borrower to be immediately due and payable. The Company used the proceeds of the initial borrowings to repay outstanding revolving borrowings under the Company’s senior credit facility and to provide additional liquidity and funding for the ongoing business needs of the Company and its subsidiaries. Pursuant to the A/R Loan Agreement, each of Company, the A/R Borrower, the Parent SPE and the Originators (the “Exela Parties”) is prohibited from amending or modifying any Existing Secured Debt Documents (as defined in the A/R Loan Agreement) if such amendment or modification could: (i) by its terms cause any Exela Party to be unable to perform its obligations under Transaction Documents (as defined in the A/R Loan Agreement), (ii) cause any inaccuracy or breach of any representation, warranty, or covenant of any Exela Party, (iii) could subject any existing or subsequently arising Collateral to an Adverse Claim (each as defined in the A/R Loan Agreement), or (iv) adversely affect any rights or remedies of the Lenders, the LC Bank and the A/R Administrative Agent under the A/R Facility. The A/R Borrower and Parent SPE were formed in December 2019, and are consolidated into the Company’s financial statements even though they had no material assets or operations during the year end December 31, 2019. The A/R Borrower and Parent SPE are bankruptcy remote entities and as such their assets are not available to creditors of the Company or any of its subsidiaries. Since January 10, 2020, the parties have amended and waived the A/R Facility several times to address contractually, the occurrence of certain events, including among other things, the delay in delivery of these Financial Statements, financial statements for the quarter ended March 31, 2020, and the Initial Servicer’s liquidity (as defined in the A/R Facility) falling below $60.0 million. Sale of SourceHOV Tax, LLC On March 16, 2020, the Company and its indirect wholly owned subsidiaries, Merco Holdings, LLC and SourceHOV Tax, LLC entered into a Membership Interest Purchase Agreement with Gainline Source Intermediate Holdings LLC at which time Gainline Source Intermediate Holdings LLC acquired all of the outstanding membership interests of SourceHov Tax for $40.0 million, subject to adjustment as set forth in the purchase agreement of approximately $2.0 million. Impact of COVID-19 In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China, which has and is continuing to spread throughout other parts of the world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease ("COVID-19") a “Public Health Emergency of International Concern,” and on March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic”. The Company is dependent on its workforce to deliver its solutions and services. Developments such as social distancing and stay-at-home orders from various jurisdictions may impact the Company’s ability to deploy its workforce effectively. Additionally, COVID-19 has spread to most of the countries in the world and throughout the United States, creating a serious impact on customers, workforces, suppliers, disrupting economies and financial markets, and potentially leading to a world-wide economic downturn. While expected to be temporary, prolonged workforce disruptions may negatively impact sales in fiscal year 2020 and the Company’s overall liquidity. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Management is actively monitoring the global situation and its impact on the Company’s financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate adverse effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2020. Amendment to Credit Agreement Under the terms of each of the Credit Agreement, the Company was required to deliver to the lenders the December 31, 2019 audited financial statements by April 14, 2020, which the Company failed to do. On May 18, 2020, the Company amended the Credit Agreement to, among other things, extend the time for delivery of its audited financial statements for the year ended December 31, 2019 and its financial statements for the quarter ended March 31, 2020. Pursuant to the amendment, the Company also amended the Credit Agreement to, among other things: restrict the borrower and its subsidiaries’ ability to designate or invest in unrestricted subsidiaries; incur certain debt; create certain liens; make certain investments; pay certain dividends or other distributions on account of its equity interests; make certain asset sales or other dispositions (or utilize the proceeds of certain asset sales to reinvest in the business); or enter into certain affiliate transactions pursuant to the negative covenants under the Credit Agreement. Further, pursuant to the amendment, the borrower under the Credit Agreement is also required to maintain a minimum Liquidity (as defined in the amendment) of $35.0 million. In the event the Company delivers the annual and quarterly financial statements described above within the time frames stated within such agreements (which the Company believes it has now satisfied with respect to the annual financial statements, but not with respect quarterly financial statements), the Company will, upon delivery of such financial statements, be in compliance with the Credit Agreement.

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

12 Months Ended

Dec. 31, 2019

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

Use of Estimates in Preparation of the Financial Statements

Going Concern

Substantial Doubt Raised

In performing the first step of the evaluation, we concluded that the following conditions raised substantial doubt about our ability to continue as a going concern:

net operating cash outflow of $63.9 million in 2019 and inflow of $23.6 million in 2018;

working capital deficits of $147.1 million as of December 31, 2019 and $123.5 million as of December 31, 2018;

significant cash payments for interest on our long-term debt of $144.5 million in 2019 and a similar amount expected in 2020;

a liability incurred of $56.4 million for Appraisal Action (as described further in Note 14);

an accumulated deficit of $1,211.5 million.

Consideration of Management’s Plans

As of June 5, 2020, the Company had $94.1 million in available cash and an additional source of liquidity of $13.4 million from the borrowing facilities.

Management Assessment of Ability to Continue as a Going Concern

Future Plans and Considerations

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, 2019:


		December 31, 2019
Effective	Maturity	(In Millions)		Weighted Average
date	date	Notional Amount		Interest Rate
1/12/2018	1/12/2021	$	328.1	1.9275	%

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 years ended December 31, 2019, 2018, and 2017:


	Years Ended December 31,
	2019								2018 (As Restated)								2017 (As Restated)
		ITPS		HS		LLPS		Total		ITPS		HS		LLPS		Total		ITPS		HS		LLPS		Total
U.S.A.	$	958,625	$	256,721	$	71,332	$	1,286,678	$	1,034,941	$	228,015	$	84,560	$	1,347,516	$	675,613	$	233,595	$	91,619	$	1,000,827
EMEA		248,466		—		—		248,466		211,314		—		—		211,314		130,098		—		—		130,098
Other		27,193		—		—		27,193		27,392		—		—		27,392		14,966		—		—		14,966
Total	$	1,234,284	$	256,721	$	71,332	$	1,562,337	$	1,273,647	$	228,015	$	84,560	$	1,586,222	$	820,677	$	233,595	$	91,619	$	1,145,891

Contract Balances

The following table presents contract assets, contract liabilities and contract costs recognized at December 31, 2019 and 2018:


	December 31, 2019		December 31, 2018 (As Restated)
Accounts receivable, net	$	261,400	$	270,812
Deferred revenues		16,621		16,940
Customer deposits		27,765		34,235
Costs to obtain and fulfill a contract		4,977		6,623

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

2020	$	50,664
2021		38,586
2022		32,814
2023		27,408
2024		26,452
2025 and thereafter		27,141
Total	$	203,065

Research and Development

Advertising

Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2019, 2018, and 2017, were $1.1 million, $0.9 million, and $0.7 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,
	2019		2018 (As Restated)		2017 (As Restated)
Net loss attributable to common stockholders (A)	$	(512,425)	$	(173,461)	$	(228,348)
Weighted average common shares outstanding - basic and diluted (B)		145,718,936		147,773,089		104,914,382
Loss Per Share:
Basic and diluted (A/B)	$	(3.52)	$	(1.17)	$	(2.18)

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 15 — Fair Value Measurement for further discussion.

Concentration of Credit Risk

Recently Adopted Accounting Pronouncements

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

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

Recently Issued Accounting Pronouncements

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

12 Months Ended

Dec. 31, 2019

Basis of Presentation and Summary of Significant Accounting Policies

Schedule of interest rate swap positions


		December 31, 2019
Effective	Maturity	(In Millions)		Weighted Average
date	date	Notional Amount		Interest Rate
1/12/2018	1/12/2021	$	328.1	1.9275	%

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


	Years Ended December 31,
	2019								2018 (As Restated)								2017 (As Restated)
		ITPS		HS		LLPS		Total		ITPS		HS		LLPS		Total		ITPS		HS		LLPS		Total
U.S.A.	$	958,625	$	256,721	$	71,332	$	1,286,678	$	1,034,941	$	228,015	$	84,560	$	1,347,516	$	675,613	$	233,595	$	91,619	$	1,000,827
EMEA		248,466		—		—		248,466		211,314		—		—		211,314		130,098		—		—		130,098
Other		27,193		—		—		27,193		27,392		—		—		27,392		14,966		—		—		14,966
Total	$	1,234,284	$	256,721	$	71,332	$	1,562,337	$	1,273,647	$	228,015	$	84,560	$	1,586,222	$	820,677	$	233,595	$	91,619	$	1,145,891

Schedule of contract balances


	December 31, 2019		December 31, 2018 (As Restated)
Accounts receivable, net	$	261,400	$	270,812
Deferred revenues		16,621		16,940
Customer deposits		27,765		34,235
Costs to obtain and fulfill a contract		4,977		6,623

Schedule of estimated remaining fixed consideration for unsatisfied performance obligations


Estimated Remaining Fixed Consideration for Unsatisfied Performance Obligations

2020	$	50,664
2021		38,586
2022		32,814
2023		27,408
2024		26,452
2025 and thereafter		27,141
Total	$	203,065

Schedule of components of basic and diluted EPS


	Year Ended December 31,
	2019		2018 (As Restated)		2017 (As Restated)
Net loss attributable to common stockholders (A)	$	(512,425)	$	(173,461)	$	(228,348)
Weighted average common shares outstanding - basic and diluted (B)		145,718,936		147,773,089		104,914,382
Loss Per Share:
Basic and diluted (A/B)	$	(3.52)	$	(1.17)	$	(2.18)

Restatement of Previously Issued Financial Statements (Tables)

12 Months Ended

Dec. 31, 2019

Restatement of Previously Issued Financial Statements

Schedule of restated financial statements

Consolidated Balance Sheets

(in thousands of United States dollars except share and per share amounts)


	As of December 31, 2018
	As Previously Reported		Restatement Adjustment		As Restated		Restatement Reference
Assets
Current assets
Cash and cash equivalents	$	25,615	$	10,591	$	36,206		c
Restricted cash		18,239		(10,591)		7,648		c
Accounts receivable, net of allowance for doubtful accounts of $4,359		270,812		—		270,812
Inventories, net		16,220		—		16,220
Prepaid expenses and other current assets		25,015		(78)		24,937		c
Total current assets		355,901		(78)		355,823
Property, plant and equipment, net of accumulated depreciation of $154,060		132,986		—		132,986
Goodwill		708,258		—		708,258
Intangible assets, net		407,021		(12,001)		395,020		b
Deferred income tax assets		16,225		120		16,345		c
Other noncurrent assets		19,391		—		19,391
Total assets	$	1,639,782	$	(11,959)	$	1,627,823

Liabilities and Stockholders' Equity (Deficit)
Liabilities
Current liabilities
Accounts payables	$	99,853	$	—	$	99,853
Related party payables		7,735		7,628		15,363		c
Income tax payable		1,996		—		1,996
Accrued liabilities		66,008		41,347		107,355		a, c
Accrued compensation and benefits		54,583		(2,372)		52,211		c
Accrued interest		49,071		—		49,071
Customer deposits		34,235		—		34,235
Deferred revenue		16,504		—		16,504
Obligation for claim payment		56,002		—		56,002
Current portion of finance lease liabilities		17,498		—		17,498
Current portion of long-term debts		29,237		—		29,237
Total current liabilities		432,722		46,603		479,325
Long-term debt, net of current maturities		1,306,423		—		1,306,423
Finance lease liabilities, net of current portion		26,738		—		26,738
Pension liabilities		25,269		2,372		27,641		c
Deferred income tax liabilities		11,212		2		11,214		c
Long-term income tax liabilities		3,024		—		3,024
Other long-term liabilities		15,400		(683)		14,717		c
Total liabilities		1,820,788		48,294		1,869,082
Commitments and Contingencies (Note 14)

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 (including the 4,570,734 shares returned to the Company in the first quarter of 2020 in connection with the Appraisal Action)		15		—		15
Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; 4,569,233 shares issued and outstanding		1		—		1
Additional paid in capital		482,018		(36,566)		445,452
Less: Common Stock held in treasury, at cost; 2,549,185 shares		(10,342)		—		(10,342)
Equity-based compensation		41,731		—		41,731
Accumulated deficit		(678,563)		(23,829)		(702,392)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(6,565)		142		(6,423)
Unrealized pension actuarial losses, net of tax		(9,301)		—		(9,301)
Total accumulated other comprehensive loss		(15,866)		142		(15,724)
Total stockholders’ deficit		(181,006)		(60,253)		(241,259)
Total liabilities and stockholders’ deficit	$	1,639,782	$	(11,959)	$	1,627,823

As of December 31, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $40.6 million to accrued liabilities at December 31, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $12.0 million of decrease to intangible assets, net at December 31, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $7.6 million to related party payables.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands of United States dollars except per share amounts)


	For the Year Ended December 31, 2018						For the Year Ended December 31, 2017
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Revenue	$	1,586,222	$	—	$	1,586,222	$	1,152,324	$	(6,433)	$	1,145,891	c
Cost of revenue (exclusive of depreciation and amortization)		1,209,874		3,529		1,213,403		829,143		(1,599)		827,544	b, c
Selling, general and administrative expenses (exclusive of depreciation and amortization)		184,651		257		184,908		220,955		—		220,955	c
Depreciation and amortization		145,485		(7,408)		138,077		98,890		—		98,890	b
Impairment of goodwill and other intangible assets		48,127		—		48,127		69,437		—		69,437
Related party expense		4,334		8,069		12,403		33,431		—		33,431	c
Operating loss		(6,249)		(4,447)		(10,696)		(99,532)		(4,834)		(104,366)
Other expense (income), net:
Interest expense, net		153,095		2,896		155,991		128,489		1,187		129,676	a
Debt modification and extinguishment costs		1,067		—		1,067		35,512		—		35,512
Sundry expense (income), net		(3,271)		—		(3,271)		2,295		—		2,295
Other expense (income), net		(3,030)		—		(3,030)		(1,297)		—		(1,297)
Net loss before income taxes		(154,110)		(7,343)		(161,453)		(264,531)		(6,021)		(270,552)
Income tax (expense) benefit		(8,407)		54		(8,353)		60,246		822		61,068
Net loss	$	(162,517)	$	(7,289)	$	(169,806)	$	(204,285)	$	(5,199)	$	(209,484)
Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature		—		—		—		(16,375)		—		(16,375)
Cumulative dividends for Series A Preferred Stock		(3,655)		—		(3,655)		(2,489)		—		(2,489)	c
Net loss attributable to common stockholders	$	(166,172)	$	(7,289)	$	(173,461)	$	(223,149)	$	(5,199)	$	(228,348)
Loss per share:
Basic and diluted	$	(1.09)	$	(0.08)	$	(1.17)	$	(2.08)	$	(0.10)	$	(2.18)

For the year ended December 31, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $2.9 million to interest expense for the year ended December 31, 2018.

(b)

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $8.1 million to related party.

For the year ended December 31, 2017

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $1.2 million to interest expense for the year ended December 31, 2018.

(c)

Other Misstatement Adjustments:

Other Adjustments - Corrections to other misstatements were as follows: (i) The correction of all misstatements resulted in an increase of $0.8 million to income tax expense.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands of United States dollars)


	For the Year Ended December 31, 2018						For the Year Ended December 31, 2017
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Net loss	$	(162,517)	$	(7,289)	$	(169,806)	$	(204,285)	$	(5,199)	$	(209,484)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(6,371)		167		(6,204)		3,353		(25)		3,328	c
Unrealized pension actuarial gains (losses), net of tax		1,753		—		1,753		1,285		—		1,285
Total other comprehensive loss, net of tax	$	(167,135)	$	(7,122)	$	(174,257)	$	(199,647)	$	(5,224)	$	(204,871)

For the year ended December 31, 2018

For the year ended December 31, 2017

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands of United States dollars)


	For the Year Ended December 31, 2018						For the Year Ended December 31, 2017
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Cash flows from operating activities
Net loss	$	(162,517)	$	(7,289)		(169,806)	$	(204,285)	$	(5,199)		(209,484)
Adjustments to reconcile net loss						—						—
Depreciation and amortization		145,485		(7,408)		138,077		98,890		—		98,890	b
Fees paid in stock		—		—		—		23,875		4,698		28,573	c
HGM contract termination fee paid in stock		—		—		—		10,000		—		10,000
Original issue discount and debt issuance cost amortization		10,913		—		10,913		12,280		—		12,280
Debt modification and extinguishment costs		—		103		103		—		34,459		34,459	c
Impairment of goodwill and other intangible assets		48,127		—		48,127		69,437		—		69,437
Provision for doubtful accounts		2,767		—		2,767		500		—		500
Deferred income tax provision		3,352		(132)		3,220		(66,723)		(822)		(67,545)	c
Share-based compensation expense		7,647		—		7,647		6,743		—		6,743
Foreign currency remeasurement		(1,180)		—		(1,180)		1,382		—		1,382
Loss (gain) on sale of assets		2,095		592		2,687		399		157		556	c
Fair value adjustment for interest rate swap		(2,540)		—		(2,540)		(1,297)		—		(1,297)
Change in operating assets and liabilities, net of effect from acquisitions
Accounts receivable		(19,319)		—		(19,319)		(4,832)		—		(4,832)
Prepaid expenses and other assets		(2,820)		—		(2,820)		2,628		(1,599)		1,029	c
Accounts payable and accrued liabilities		5,157		3,658		8,815		69,551		7,620		77,171	c
Related party payables		(6,710)		7,628		918		4,907		—		4,907	c
Additions to outsource contract costs		—		(4,009)		(4,009)		—		(10,992)		(10,992)	b
Net cash provided by (used in) operating activities		30,457		(6,857)		23,600		23,455		28,322		51,777

Cash flows from investing activities
Purchase of property, plant and equipment		(20,072)		—		(20,072)		(14,440)		—		(14,440)
Additions to internally developed software		(7,438)		—		(7,438)		(7,843)		—		(7,843)
Additions to outsourcing contract costs		(7,552)		7,552		—		(10,992)		10,992		—	b
Cash acquired in Quinpario reverse merger		—		—		—		91		—		91
Cash paid in acquisition, net of cash received		(34,810)		—		(34,810)		(423,797)		—		(423,797)
Proceeds from sale of assets		3,568		—		3,568		4,607		—		4,607
Net cash provided by (used in) investing activities		(66,304)		7,552		(58,752)		(452,374)		10,992		(441,382)

Cash flows from financing activities
Change in bank overdraft		—		—		—		(210)		—		(210)
Loss on extinguishment of debt		1,067		(1,067)		—		35,512		(35,512)		—	c
Proceeds from issuance of stock		—		—		—		204,417		—		204,417
Cash received from Quinpario		—		—		—		27,031		(4,698)		22,333	c
Repurchases of Common Stock		(7,221)		—		(7,221)		(249)		—		(249)
Contribution from Shareholders		—		—		—		20,548		—		20,548
Cash paid for equity issuance costs		(7,500)		—		(7,500)		(149)		—		(149)
Lease terminations		—		(592)		(592)		—		(157)		(157)	c
Retirement of previous credit facilities		—		—		—		(1,055,736)		—		(1,055,736)
Cash paid for debt issuance costs		(1,094)		964		(130)		(39,837)		1,053		(38,784)	c
Principal payments on finance lease obligations		(16,068)		—		(16,068)		(11,361)		—		(11,361)
Borrowings from senior secured revolving facility		30,000		—		30,000		72,600		—		72,600
Repayments on senior secured revolving facility		(30,000)		—		(30,000)		(72,500)		—		(72,500)
Proceeds from issuance of notes		—		—		—		977,500		—		977,500
Proceeds from senior secured term loans		30,000		—		30,000		343,000		—		343,000
Borrowings from other loans		11,557		—		11,557		3,116		—		3,116
Principal repayments on senior secured term loans and other loans		(12,651)		—		(12,651)		(27,955)		—		(27,955)
Net cash provided by (used in) financing activities		(1,910)		(695)		(2,605)		475,727		(39,314)		436,413
Effect of exchange rates on cash		122		—		122		429		—		429
Net decrease in cash and cash equivalents		(37,635)		—		(37,635)		47,237		—		47,237
Cash, restricted cash, and cash equivalents
Beginning of period		81,489		—		81,489		34,252		—		34,252
End of period	$	43,854	$	—	$	43,854	$	81,489	$	—	$	81,489

Supplemental cash flow data:
Income tax payments, net of refunds received	$	7,827	$	—	$	7,827	$	5,711	$	—	$	5,711
Interest paid		146,076		—		146,076		69,622		—		69,622
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements		14,920		—		14,920		6,973		—		6,973
Leasehold improvements funded by lessor		1,565		—		1,565		146		—		146
Issuance of Common Stock as consideration for Novitex		—		—		—		244,800		—		244,800
Accrued capital expenditures		2,820		—		2,820		1,621		—		1,621
Dividend equivalent on Series A Preferred Stock		—		—		—		16,375		—		16,375
Liability assumed of Quinpario		—		—		—		4,672		26		4,698

Business Combinations (Tables) - Asterion

12 Months Ended

Dec. 31, 2019

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		1,137
Property, plant, and equipment		4,747
Deferred income tax assets		6,316
Other noncurrent assets		522
Intangible assets		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 liabilities		(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, 2019

Accounts Receivable.

Schedule of accounts receivable, net


	December 31,
	2019		2018
Billed receivables	$	222,168	$	226,252
Unbilled receivables		34,135		39,498
Other		10,072		9,421
Less: Allowance for doubtful accounts		(4,975)		(4,359)
	$	261,400	$	270,812

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2019

Prepaid Expenses and Other Current Assets

Schedule of prepaid expenses and other current assets


	December 31,
	2019		2018
Prepaids	$	23,243	$	24,712
Deposits		420		225
	$	23,663	$	24,937

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Lessee, Lease, Description [Line Items]

Schedule of balance sheet location


	December 31,
	2019
Balance sheet location:
Operating Lease
Operating lease right-of-use assets, net	$	93,627
Current portion of operating lease liabilities		25,345
Operating lease liabilities, net of current portion		73,282
Finance Lease
Finance lease right-of-use assets, net (included in property, plant and equipment, net)		30,835
Current portion of finance lease liabilities		13,788
Finance lease liabilities, net of current portion		20,272

Schedule of maturities of operating lease liabilities



	Finance		Operating
	Leases		Leases
2020	$	16,282	$	33,315
2021		10,652		26,210
2022		5,696		20,589
2023		2,941		15,348
2024		2,632		11,606
2025 and thereafter		1,554		17,356
Total lease payments		39,757		124,424
Less: Imputed interest		(5,697)		(25,797)
Present value of lease liabilities	$	34,060	$	98,627

Schedule of maturities of finance lease liabilities



	Finance		Operating
	Leases		Leases
2020	$	16,282	$	33,315
2021		10,652		26,210
2022		5,696		20,589
2023		2,941		15,348
2024		2,632		11,606
2025 and thereafter		1,554		17,356
Total lease payments		39,757		124,424
Less: Imputed interest		(5,697)		(25,797)
Present value of lease liabilities	$	34,060	$	98,627

Schedule of future minimum payments due under non‐cancelable leases under ASC 840


		Finance	Operating
		Leases	Leases
2019	$	20,080	$	38,057
2020		11,851		29,346
2021		9,018		22,239
2022		4,169		16,782
2023		2,244		12,302
2024 and thereafter		3,617		18,874
Total minimum lease payments	$	50,979	$	137,600
Less: imputed interest		(6,743)
Total net minimum lease payments		44,236
Less: Current portion of obligations under finance leases		(17,498)
Long-term portion of obligations under finance leases	$	26,738

Schedule of cash paid and lease recognition



		Year Ended
		December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	50,398
Financing cash flows from finance leases		20,860
Right-of-use lease assets obtained in the exchange for lease liabilities:
Operating leases		19,127
Finance leases		10,731

ASU 2016-02

Lessee, Lease, Description [Line Items]

Schedule of new accounting standard adoption


	Balance at				Balance at
	December 31,		Impact of		January 1,
	2018 (As Restated)		Lease Standard		2019
Total assets	$	1,627,823	$	104,214	$	1,732,037
Total current liabilities		479,325		25,685		505,010
Total long-term liabilities		1,389,757		79,028		1,468,785

Property, Plant and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment, Net

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



	Estimated Useful Lives	December 31,
	(in Years)	2019		2018
Land	N/A	$	6,884	$	6,888
Buildings and improvements	7 – 40		20,288		20,518
Leasehold improvements	Shorter of life of improvement or lease term		47,036		56,589
Vehicles	5 – 7		531		717
Machinery and equipment	5 – 15		28,489		62,746
Computer equipment and software	3 – 8		92,500		130,864
Furniture and fixtures	5 – 15		9,440		8,724
Finance lease right-of-use assets	Shorter of life of the asset or lease term		85,464		—
			290,632		287,046
Less: Accumulated depreciation and amortization			(176,995)		(154,060)
Property, plant and equipment, net		$	113,637	$	132,986

Intangibles Assets and Goodwill (Tables)

12 Months Ended

Dec. 31, 2019

Intangibles Assets and Goodwill

Schedule of intangible assets


	December 31, 2019
	Gross Carrying				Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	508,074	$	(237,313)	$	270,761
Developed technology		89,053		(87,109)		1,944
Trade names (b)		8,400		(3,100)		5,300
Outsource contract costs		16,726		(11,749)		4,977
Internally developed software		43,261		(12,129)		31,132
Trademarks		23,378		(23,370)		8
Non-compete agreements		1,350		(1,350)		—
Assembled workforce		4,473		(1,118)		3,355
Purchased software		26,749		(1,783)		24,966
Intangibles, net	$	721,464	$	(379,021)	$	342,443


	December 31, 2018 (As Restated)
	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 (c)		9,400		(3,100)		6,300
Outsource contract costs		15,439		(8,817)		6,622
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	$	714,568	$	(319,548)	$	395,020

(a)

Amounts include intangibles acquired in business combinations and asset acquisitions.

(b)

The carrying amount of trade names for 2019 is net of accumulated impairment losses of $44.1 million, of which $1.0 million was recognized in 2019.

(c)

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.

Schedule of estimated intangibles amortization expense


	Estimated
	Amortization
	Expense (As Restated)
2020	$	55,323
2021		50,015
2022		45,535
2023		37,168
2024		29,704
Thereafter		120,163
	$	337,908

Schedule of goodwill by reporting segment




	Beginning of Year Balance (a)			Additions			Reductions			Currency Translation Adjustments		End of Year Balance (a)
ITPS	$	566,215	$	5,580	(c)	$	—		$	(220)	$	571,575
HS		86,786		—			—			—		86,786
LLPS		94,324		—			(44,427)	(b)		—		49,897
Total - Year 2018	$	747,325	$	5,580		$	(44,427)		$	(220)	$	708,258
ITPS		571,575		—			(317,525)	(d)		70		254,120
HS		86,786		—			—			—		86,786
LLPS		49,897		—			(31,032)	(e)		—		18,865
Total - Year 2019	$	708,258	$	—		$	(348,557)		$	70	$	359,771

(a)

The carrying amount of goodwill for all periods presented is net of accumulated impairment losses of $167.9 million.

(b)

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

(c)

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

(d)

The reduction in goodwill for the ITPS segment is due to $317.5 million for impairment recorded for the year ended December 31, 2019.

The reduction in goodwill for the LLPS segment is due to $31.0 million for impairment recorded for the year ended December 31, 2019.

Accrued Liabilities and Other Long-Term Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Accrued Liabilities and Other Long-Term Liabilities

Schedule of accrued liabilities


	December 31,
	2019		2018 (As Restated)
Accrued taxes (exclusive of income taxes)	$	9,608	$	10,606
Accrued lease exit obligations		1,127		1,694
Accrued professional and legal fees		33,421		31,220
Accrued appraisal action liability		56,412		40,649
Accrued rent		—		1,421
Accrued transaction costs		2,250		2,250
Other accruals		18,735		19,515
	$	121,553	$	107,355

Schedule of other Long-term liabilities


	December 31,
	2019		2018 (As Restated)
Deferred revenue	$	339	$	432
Accrued rent		669		7,650
Accrued lease exit obligations		136		369
Accrued compensation expense		2,075		2,173
Other		3,743		4,093
	$	6,962	$	14,717

Long-Term Debt and Credit Facilities (Tables)

12 Months Ended

Dec. 31, 2019

Long-Term Debt and Credit Facilities

Schedule of outstanding long-term debt instruments


	December 31,
	2019		2018
Other (a)	$	30,232		25,321
First lien credit agreement (b)		360,583		335,896
Senior secured notes (c)		979,060		974,443
Revolver		65,000		—
Total debt		1,434,875		1,335,660
Less: Current portion of long-term debt		(36,490)		(29,237)
Long-term debt, net of current maturities	$	1,398,385	$	1,306,423

(a)

(b)

Net of unamortized original issue discount and debt issuance costs of $6.5 million and $18.9 million as of December 31, 2019 and $8.3 million and $24.5 million as of December 31, 2018.

(c)

Net of unamortized original issue discount and debt issuance costs of $14.9 million and $6.0 million as of December 31, 2019 and $18.2 million and $7.3 million as of December 31, 2018.

Schedule of maturities of long-term debt


	Maturity
2020	$	36,490
2021		25,198
2022		91,187
2023		1,325,445
2024		2,921
Thereafter		—
Total long-term debt		1,481,241
Less: Unamortized discount and debt issuance costs		(46,366)
	$	1,434,875

- 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://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-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 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

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


	Year Ended December 31,
	2019		2018 (As Restated)		2017 (As Restated)
United States	$	(511,165)	$	(180,245)	$	(281,009)
Foreign		9,691		18,792		10,457
	$	(501,474)	$	(161,453)	$	(270,552)

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


	Year Ended December 31,
	2019		2018 (As Restated)		2017 (As Restated)
Federal
Current	$	(1,308)	$	1,308	$	(722)
Deferred		(3,879)		(2,006)		(59,425)
State
Current		2,255		390		1,407
Deferred		(807)		2,339		(7,178)
Foreign
Current		5,770		3,435		5,794
Deferred		5,611		2,887		(944)
Income Tax Expense (Benefit)	$	7,642	$	8,353	$	(61,068)

Schedule of income tax reconciliation


	Year Ended December 31,
	2019		2018 (As Restated)		2017 (As Restated)
Tax at statutory rate	$	(105,310)	$	(33,905)	$	(94,693)
Add (deduct)
State income taxes		(7,666)		(6,557)		(4,219)
Foreign income taxes		4,390		1,228		305
Nondeductible transaction costs		—		—		27,311
Nondeductible goodwill impairment		61,699		9,002		10,497
Permanent differences		1,275		2,542		438
Litigation settlement		3,310		608		415
Changes in valuation allowance		30,064		19,433		(6,159)
Unremitted earnings		1,604		4,735		—
Changes in U.S tax rates		—		—		(4,784)
Deemed mandatory repatriation		—		—		7,441
GILTI Inclusion		3,772		2,289		—
Expiration of tax attributes		10,807		8,353		—
Other		3,697		625		2,380
Income Tax Expense (Benefit)	$	7,642	$	8,353	$	(61,068)

Schedule of components of deferred income tax liabilities and assets


	Year Ended December 31,
	2019		2018 (As Restated)
Deferred income tax liabilities:
Book over tax basis of intangible and fixed assets	$	(77,088)	$	(94,648)
Unremitted foreign earnings		(6,339)		(4,735)
Operating and finance right-of-use assets		(16,981)		—
Other, net	$	(2,571)	$	(4,079)
Total deferred income tax liabilities		(102,979)		(103,462)

Deferred income tax assets:
Allowance for doubtful accounts and receivable adjustments	$	1,498	$	1,676
Inventory		903		1,629
Accrued liabilities		11,608		9,433
Net operating loss and tax credit carryforwards		158,265		184,430
Tax deductible goodwill		8,066		3,147
Disallowed interest deduction		56,873		26,897
Operating and finance lease liabilities		18,127		—
Other, net		15,481		16,031
Total deferred income tax assets	$	270,820	$	243,243

Valuation allowance		(163,806)		(134,650)
Total net deferred income tax assets (liabilities)	$	4,036	$	5,131

Schedule of NOL carryforwards expiry


			State and Local
	Federal NOL		NOL
2020 – 2024	$	86,371	$	60,478
2025 – 2029		134,448		94,661
2030 – 2039		352,972		266,348
	$	573,791	$	421,487

Schedule of reconciliation of the total amounts of unrecognized tax benefits


	Year Ended December 31,
	2019		2018 (As Restated)		2017 (As Restated)
Unrecognized tax benefits—January 1	$	1,476	$	1,047	$	999
Gross increases—tax positions in prior period		1,378		301		48
Gross decreases—tax positions in prior period		(10)		—		—
Gross increases—tax positions in current period		1,470		128		—
Settlement		—		—		—
Lapse of statute of limitations		—		—		—
Unrecognized tax benefits—December 31	$	4,314	$	1,476	$	1,047

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

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,
	2019		2018
Change in Benefit Obligation:
Benefit obligation at beginning of period	$	90,051	$	91,875
Additional obligation due to acquisition		—		5,631
Service cost		80		82
Interest cost		2,448		2,350
Actuarial loss (gain)		9,168		(4,356)
Plan amendments		(835)		1,334
Benefits paid		(3,082)		(1,558)
Foreign-exchange rate changes		3,131		(5,307)
Benefit obligation at end of year	$	100,961	$	90,051

Change in Plan Assets:
Fair value of plan assets at beginning of period	$	62,952	$	64,886
Additional assets due to acquisition		—		2,184
Actual return on plan assets		10,906		(1,432)
Employer contributions		2,557		2,477
Benefits paid		(2,995)		(1,421)
Foreign-exchange rate changes		2,455		(3,742)
Fair value of plan assets at end of year		75,875		62,952
Funded status at end of year	$	(25,086)	$	(27,099)

Net amount recognized in the Consolidated Balance Sheets:
Pension liability (a)	$	(25,681)	$	(27,641)
Amounts recognized in accumulated other comprehensive loss, net of tax consist of:
Net actuarial loss		(8,059)		(9,301)
Net amount recognized in accumulated other comprehensive loss, net of tax	$	(8,059)	$	(9,301)

Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate projected benefit obligation	$	100,961	$	90,050
Aggregate accumulated benefit obligation	$	100,961	$	90,050
Aggregate fair value of plan assets	$	75,875	$	62,883

(a)

Schedule of components of the net periodic benefit cost


	Year ended December 31,
	2019		2018		2017
Service cost	$	80	$	82	$	8
Interest cost		2,448		2,350		2,288
Expected return on plan assets		(2,460)		(2,841)		(2,392)
Amortization:
Amortization of prior service cost		(169)		9		(134)
Amortization of net (gain) loss		1,768		1,755		2,063
Net periodic benefit cost	$	1,667	$	1,355	$	1,833

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


	December 31,
	2019		2018		2019		2018		2019		2018		2019		2018
	UK				Germany				Norway				Asterion
Weighted-average assumptions used to determine benefit obligations:
Discount rate	2.10	%	2.80	%	1.00	%	1.90	%	2.30	%	2.60	%	1.10	%	1.80
Rate of compensation increase	N/A		N/A		N/A		N/A		2.25	%	2.75	%	2.50	%	2.50
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	2.80	%	2.50	%	1.00	%	1.90	%	2.30	%	2.60	%	1.10	%	1.80
Expected asset return	3.87	%	4.25	%	N/A	%	N/A	%	3.80	%	4.30	%	1.10	%	1.80
Rate of compensation increase	N/A		N/A		N/A		N/A		2.25	%	1.75	%	2.50	%	2.50

Schedule of weighted average allocation of plan assets by asset category


	December 31,
	2019		2018 (As Restated)		2017 (As Restated)
U.K. and other international equities	29.9	%	27.1	%	45.0	%
U.K. government and corporate bonds	12.5		12.7		20.0
Diversified growth fund	41.3		38.9		35.0
Liability driven investments	16.3		21.3		N/A
Total	100.0	%	100.0	%	100.0	%

Schedule of fair value of pension assets


	December 31, 2019
	Total		Level 1		Level 2		Level 3
Asset Category:
Cash	$	837	$	837	$	—	$	—
Equity funds:
U.K.		13,121		—		13,121		—
Other international		8,747		—		8,747		—
Fixed income securities:
Corporate bonds / U.K. Gilts		9,446		—		9,446		—
Other investments:
Diversified growth fund		31,345		—		31,345		—
Liability driven investments		12,379		—		12,379		—
Total fair value	$	75,875	$	837	$	75,038	$	—


	December 31, 2018 (As Restated)
	Total		Level 1		Level 2		Level 3
Asset Category:
Cash	$	129	$	129	$	—	$	—
Equity funds:
U.K.		10,161		—		10,161		—
Other international		6,773		—		6,773		—
Fixed income securities:
Corporate bonds / UK Gilts		7,987		—		7,987		—
Other investments:
Diversified growth fund		24,488		—		24,488		—
Liability driven investments		13,414		—		13,414		—
Total fair value	$	62,952	$	129	$	62,823	$	—

Schedule of estimated future benefit payments


	Estimated
	Benefit
	Payments
Year ended December 31,
2020	$	1,730
2021		1,741
2022		2,070
2023		1,997
2024		2,854
2025 - 2029		16,417
Total	$	26,809

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Measurement

Schedule of fair value of financial instruments


	Carrying		Fair		Fair Value Measurements
As of December 31, 2019	Amount		Value		Level 1		Level 2		Level 3
Recurring assets and liabilities:
Long-term debt	$	1,398,385	$	632,796	$	—	$	632,796	$	—
Interest rate swap liability		501		501		—		501		—
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Nonrecurring assets and liabilities:
Goodwill		359,771		359,771		—		—		359,771


	Carrying		Fair		Fair Value Measurements
As of December 31, 2018 (As Restated)	Amount		Value		Level 1		Level 2		Level 3
Recurring assets and liabilities:
Long-term debt	$	1,306,423	$	1,316,306	$	—	$	1,316,306	$	—
Interest rate swap asset (1)		3,836		3,836		—		3,836		—
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Nonrecurring assets and liabilities:
Goodwill		708,258		708,258		—		—		708,258

(1)

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


	December 31,		December 31,
	2019		2018
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, 2019

Stock-Based Compensation

Summary of the status of restricted stock units


				Average
		Weighted		Remaining
	Number	Average Grant		Contractual Life	Aggregate
	of Shares	Date Fair Value		(Years)	Intrinsic Value
Balance as of December 31, 2018	893,297	$	5.86	0.76	$	5,239
Granted	462,617		2.49
Forfeited	(242,116)		5.41
Vested	(804,493)		5.88
Balance as of December 31, 2019	309,305	$	1.99	1.19	$	616

Schedule of stock option activity


						Average
		Weighted		Weighted		Remaining
		Average Grant		Average		Vesting Period	Aggregate
	Outstanding	Date Fair Value		Exercise Price		(Years)	Intrinsic Value
Outstanding Balance as of December 31, 2018	3,570,300	$	2.69	$	6.06	2.92	$	9,590
Granted	2,050,600		0.94
Exercised	—		—
Forfeited	(683,200)		2.64
Expired	—		—
Outstanding Balance as of December 31, 2019	4,937,700	$	1.97	$	4.14	2.27	$	9,719

Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2019

Related-Party Transactions

Schedule of payable and receivable balances with affiliates


					December 31,
	December 31, 2019				2018 (As Restated)
	Receivable		Payable		Payable
HOV Services, Ltd	$	601	$	—	$	405
Rule 14		—		250		127
HGM		115		—		6,998
Apollo affiliated company		—		202		205
Oakana		—		1		—
Ex-Sigma 2		—		1,287		7,628
	$	716	$	1,740	$	15,363

Segment and Geographic Area Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment and Geographic Area Information

Schedule of reconciliation of segment profit to net loss before income taxes by segment information


		Year ended December 31, 2019
	ITPS		HS		LLPS		Total
Revenue	$	1,234,284	$	256,721	$	71,332	$	1,562,337
Cost of revenue (exclusive of depreciation and amortization)		1,001,655		180,045		43,035		1,224,735
Segment profit		232,629		76,676		28,297		337,602
Selling, general and administrative expenses (exclusive of depreciation and amortization)								198,864
Depreciation and amortization								100,903
Impairment of goodwill and other intangible assets								349,557
Related party expense								9,501
Interest expense, net								163,449
Debt modification and extinguishment costs								1,404
Sundry expense, net								969
Other expense, net								14,429
Net loss before income taxes							$	(501,474)


		Year ended December 31, 2018 (As Restated)
	ITPS		HS		LLPS		Total
Revenue	$	1,273,647	$	228,015	$	84,560	$	1,586,222
Cost of revenue (exclusive of depreciation and amortization)		1,010,320		151,877		51,206		1,213,403
Segment profit		263,327		76,138		33,354		372,819
Selling, general and administrative expenses (exclusive of depreciation and amortization)								184,908
Depreciation and amortization								138,077
Impairment of goodwill and other intangible assets								48,127
Related party expense								12,403
Interest expense, net								155,991
Debt modification and extinguishment costs								1,067
Sundry income, net								(3,271)
Other income, net								(3,030)
Net loss before income taxes							$	(161,453)


		Year ended December 31, 2017 (As Restated)
	ITPS		HS		LLPS		Total
Revenue	$	820,677	$	233,595	$	91,619	$	1,145,891
Cost of revenue (exclusive of depreciation and amortization)		619,694		152,290		55,560		827,544
Segment profit		200,983		81,305		36,059		318,347
Selling, general and administrative expenses (exclusive of depreciation and amortization)								220,955
Depreciation and amortization								98,890
Impairment of goodwill and other intangible assets								69,437
Related party expense								33,431
Interest expense, net								129,676
Debt modification and extinguishment costs								35,512
Sundry expense, net								2,295
Other income, net								(1,297)
Net loss before income taxes							$	(270,552)

Schedule of revenues by principal geographic area


	Years ended December 31,
	2019		2018 (As Restated)		2017 (As Restated)
United States	$	1,286,678	$	1,347,516	$	1,000,827
EMEA		248,466		211,314		130,098
Other		27,193		27,392		14,966
Total Consolidated Revenue	$	1,562,337	$	1,586,222	$	1,145,891

Unaudited Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2019

Unaudited Quarterly Financial Data

Schedule of Unaudited Quarterly Financial Data

The following table presents the quarterly information for fiscal 2019 (dollars in thousands, except per share data):


	Q1 2019 (As Restated)		Q2 2019 (As Restated)		Q3 2019 (As Restated)		Q4 2019
Revenue:
ITPS	$	325,172	$	309,840	$	292,607	$	306,665
HS		61,343		63,440		62,132		69,806
LLPS		17,842		17,569		18,806		17,115
Total Revenue		404,357		390,849		373,545		393,586

Cost of revenue:
ITPS		259,272		249,589		241,867		250,927
HS		40,341		43,353		42,717		53,634
LLPS		10,988		10,889		10,861		10,297
Cost of revenue (exclusive of depreciation and amortization)		310,601		303,831		295,445		314,858

Selling, general and administrative expenses (exclusive of depreciation and amortization)		49,677		51,162		48,347		49,678
Depreciation and amortization		26,624		24,779		25,079		24,421
Impairment of goodwill and other intangible assets		—		—		97,158		252,399
Related party expense		998		5,331		1,430		1,742
Operating income (loss)		16,457		5,746		(93,914)		(249,512)

Other expense (income), net:
Interest expense, net		39,701		39,959		40,573		43,216
Debt modification and extinguishment costs		—		1,404		—		—
Sundry expense (income), net		2,715		(1,311)		165		(600)
Other income, net		1,493		2,527		406		10,003
Net loss before income taxes		(27,452)		(36,833)		(135,058)		(302,131)
Income tax (expense) benefit		(4,720)		(4,738)		3,769		(1,953)
Net loss		(32,172)		(41,571)		(131,289)		(304,084)
Cumulative dividends for Series A Preferred Stock		(914)		(914)		(884)		(597)
Net loss attributable to common stockholders	$	(33,086)	$	(42,485)	$	(132,173)	$	(304,681)
Weighted average outstanding common shares (Refer to Net Loss per Share discussion in Note 2)		145,572,221		145,466,193		145,636,749		146,161,353
Earnings per share:
Basic and diluted	$	(0.23)	$	(0.29)	$	(0.91)	$	(2.09)

The following table presents the quarterly information for fiscal 2018 (dollars in thousands, except per share data):


	Q1 2018 (As Restated)		Q2 2018 (As Restated)		Q3 2018 (As Restated)		Q4 2018 (As Restated)
Revenue:
ITPS	$	311,936	$	330,131	$	307,313	$	324,267
HS		58,632		56,314		56,776		56,293
LLPS		22,599		23,937		18,941		19,083
Total Revenue		393,167		410,382		383,030		399,643

Cost of revenue:
ITPS		246,042		262,066		247,021		255,191
HS		35,192		39,538		37,139		40,008
LLPS		13,663		13,563		12,525		11,455
Cost of revenue (exclusive of depreciation and amortization)		294,897		315,167		296,685		306,654

Selling, general and administrative expenses (exclusive of depreciation and amortization)		45,519		46,378		44,897		48,114
Depreciation and amortization		36,239		34,744		33,410		33,684
Impairment of goodwill and other intangible assets		—		—		—		48,127
Related party expense		1,181		6,783		775		3,664
Operating income (loss)		15,331		7,310		7,263		(40,600)

Other expense (income), net:
Interest expense, net		38,676		39,229		39,087		38,999
Debt modification and extinguishment costs		—		—		1,067		—
Sundry expense (income), net		229		(2,122)		(2,283)		905
Other income, net		(3,621)		(907)		(1,069)		2,567
Net loss before income taxes		(19,953)		(28,890)		(29,539)		(83,071)
Income tax (expense) benefit		(4,025)		(1,619)		733		(3,442)
Net loss		(23,978)		(30,509)		(28,806)		(86,513)
Cumulative dividends for Series A Preferred Stock		(914)		(914)		(914)		(914)
Net loss attributable to common stockholders	$	(24,892)	$	(31,423)	$	(29,720)	$	(87,427)
Weighted average outstanding common shares (Refer to Net Loss per Share discussion in Note 2)		147,569,383		147,688,855		147,092,936		147,773,089
Earnings per share:						—
Basic and diluted	$	(0.17)	$	(0.21)	$	(0.20)	$	(0.59)

The restated quarterly Consolidated Balance Sheets for the first three quarters of fiscal 2019 and fiscal 2018 are presented below:

Exela Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	As of March 31, 2019						As of March 31, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Assets
Current assets
Cash and cash equivalents	$	8,262	$	297	$	8,559	$	26,882	$	2,128	$	29,010	c
Restricted cash		4,998		(297)		4,701		12,549		(2,128)		10,421	c
Accounts receivable, net		278,064		—		278,064		238,680		—		238,680
Inventories, net		16,321		—		16,321		13,519		—		13,519
Prepaid expenses and other current assets		25,330		(78)		25,252		27,520		—		27,520	c
Total current assets		332,975		(78)		332,897		319,150		—		319,150
Property, plant and equipment, net		129,621		—		129,621		132,870		—		132,870
Operating lease right-of-use assets, net		100,727		—		100,727		—		—		—
Goodwill		708,285		—		708,285		747,325		—		747,325
Intangible assets, net		397,412		(13,732)		383,680		438,929		(14,678)		424,251	b
Deferred income tax assets		16,202		120		16,322		9,171		796		9,967	c
Other noncurrent assets		17,667		—		17,667		18,490		—		18,490
Total assets	$	1,702,889	$	(13,690)	$	1,689,199	$	1,665,935	$	(13,882)	$	1,652,053
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payables	$	90,924	$	—	$	90,924	$	77,194	$	—	$	77,194
Related party payables		6,184		7,628		13,812		14,172		—		14,172	c
Income tax payable		4,898		—		4,898		6,967		—		6,967
Accrued liabilities		63,138		41,880		105,018		31,805		38,412		70,217	a, c
Accrued compensation and benefits		57,961		(2,216)		55,745		49,738		(2,459)		47,279	c
Accrued interest		23,928		—		23,928		23,795		—		23,795
Customer deposits		28,410		—		28,410		36,542		—		36,542
Deferred revenue		19,966		—		19,966		15,933		—		15,933
Obligation for claim payment		46,063		—		46,063		56,554		—		56,554
Current portion of finance lease liabilities		15,961		—		15,961		14,785		—		14,785
Current portion of operating lease liabilities		27,368		—		27,368		—		—		—
Current portion of long-term debts		32,821		—		32,821		21,170		—		21,170
Total current liabilities		417,622		47,292		464,914		348,655		35,953		384,608
Long-term debt, net of current maturities		1,336,152		—		1,336,152		1,277,029		—		1,277,029
Finance lease liabilities, net of current portion		27,231		—		27,231		26,474		—		26,474
Pension liabilities		25,514		2,216		27,730		26,081		2,459		28,540	c
Deferred income tax liabilities		12,439		2		12,441		5,478		—		5,478	c
Long-term income tax liabilities		3,158		—		3,158		3,470		—		3,470
Operating lease liabilities, net of current portion		78,290		—		78,290		—		—		—
Other long-term liabilities		6,747		—		6,747		13,879		—		13,879
Total liabilities		1,907,153		49,510		1,956,663		1,701,066		38,412		1,739,478
Commitments and Contingencies
Shareholders' equity (deficit)
Common Stock		15		—		15		15		—		15
Preferred Stock		1		—		1		1		—		1
Additional paid-in capital		482,018		(36,566)		445,452		482,018		(36,566)		445,452
Treasury stock		(10,342)		—		(10,342)		(249)		—		(249)
Equity-based compensation		44,529		—		44,529		35,044		—		35,044
Accumulated deficit		(707,787)		(26,776)		(734,563)		(540,041)		(15,703)		(555,744)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(3,173)		142		(3,031)		(462)		(25)		(487)
Unrealized pension actuarial losses, net of tax		(9,525)		—		(9,525)		(11,457)		—		(11,457)
Total accumulated other comprehensive loss		(12,698)		142		(12,556)		(11,919)		(25)		(11,944)
Total stockholders' equity (deficit)		(204,264)		(63,200)		(267,464)		(35,131)		(52,294)		(87,425)
Total liabilities and equity	$	1,702,889	$	(13,690)	$	1,689,199	$	1,665,935	$	(13,882)	$	1,652,053

As of March 31, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $41.5 million to accrued liabilities at March 31, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $13.7 million of decrease to intangible assets, net at March 31, 2019.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $7.6 million to related party payables.

As of March 31, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $38.4 million to accrued liabilities at March 31, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $14.7 million of decrease to intangible assets, net at March 31, 2018.

(c)

Other Misstatement Adjustments:

Exela Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	As of June 30, 2019						As of June 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Assets
Current assets
Cash and cash equivalents	$	18,449	$	(43)	$	18,406	$	55,783	$	1,178	$	56,961	c
Restricted cash		4,977		43		5,020		31,088		(1,178)		29,910	c
Accounts receivable, net		266,660		—		266,660		262,260		—		262,260
Related party receivables		206		—		206		—		—		—
Inventories, net		16,735		—		16,735		15,088		—		15,088
Prepaid expenses and other current assets		23,791		(78)		23,713		24,108		—		24,108	c
Total current assets		330,818		(78)		330,740		388,327		—		388,327
Property, plant and equipment, net		125,018		—		125,018		135,585		—		135,585
Operating lease right-of-use assets, net		96,498		—		96,498		—		—		—
Goodwill		708,246		—		708,246		748,708		—		748,708
Intangible assets, net		387,775		(15,771)		372,004		419,725		(14,268)		405,457	b
Deferred income tax assets		16,181		120		16,301		15,280		796		16,076	c
Other noncurrent assets		14,714		—		14,714		21,276		—		21,276
Total assets	$	1,679,250	$	(15,729)	$	1,663,521	$	1,728,901	$	(13,472)	$	1,715,429
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payables	$	99,089	$	—	$	99,089	$	86,304	$	—	$	86,304
Related party payables		238		11,433		11,671		11,987		5,036		17,023	c
Income tax payable		2,525		—		2,525		5,385		—		5,385
Accrued liabilities		59,487		42,778		102,265		40,737		39,114		79,851	a, c
Accrued compensation and benefits		52,493		(2,275)		50,218		50,905		(2,496)		48,409	c
Accrued interest		48,935		—		48,935		48,885		—		48,885
Customer deposits		28,914		—		28,914		36,997		—		36,997
Deferred revenue		19,428		—		19,428		20,654		—		20,654
Obligation for claim payment		41,496		—		41,496		94,233		—		94,233
Current portion of finance lease liabilities		15,897		—		15,897		16,568		—		16,568
Current portion of operating lease liabilities		27,444		—		27,444		—		—		—
Current portion of long-term debts		38,929		—		38,929		16,299		3,500		19,799
Total current liabilities		434,875		51,936		486,811		428,954		45,154		474,108
Long-term debt, net of current maturities		1,331,898		—		1,331,898		1,281,697		(3,500)		1,278,197
Finance lease liabilities, net of current portion		25,772		—		25,772		25,193		—		25,193
Pension liabilities		24,866		2,275		27,141		30,471		2,496		32,967	c
Deferred income tax liabilities		15,896		2		15,898		5,016		—		5,016	c
Long-term income tax liabilities		2,842		—		2,842		3,470		—		3,470
Operating lease liabilities, net of current portion		74,290		—		74,290		—		—		—
Other long-term liabilities		7,882		—		7,882		16,208		—		16,208
Total liabilities		1,918,321		54,213		1,972,534		1,791,009		44,150		1,835,159
Commitments and Contingencies
Shareholders' equity (deficit)
Common Stock		15		—		15		15		—		15
Preferred Stock		1		—		1		1		—		1
Additional paid-in capital		482,018		(36,566)		445,452		482,018		(36,566)		445,452
Treasury stock		(10,949)		—		(10,949)		(3,728)		—		(3,728)
Equity-based compensation		47,190		—		47,190		36,980		—		36,980
Accumulated deficit		(742,616)		(33,518)		(776,134)		(565,222)		(21,031)		(586,253)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(5,461)		142		(5,319)		(1,341)		(25)		(1,366)
Unrealized pension actuarial losses, net of tax		(9,269)		—		(9,269)		(10,831)		—		(10,831)
Total accumulated other comprehensive loss		(14,730)		142		(14,588)		(12,172)		(25)		(12,197)
Total stockholders' equity (deficit)		(239,071)		(69,942)		(309,013)		(62,108)		(57,622)		(119,730)
Total liabilities and equity	$	1,679,250	$	(15,729)	$	1,663,521	$	1,728,901	$	(13,472)	$	1,715,429

As of June 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $42.3 million to accrued liabilities at June 30, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $15.8 million of decrease to intangible assets, net at June 30, 2019.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $11.4 million to related party payables.

As of June 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $39.1 million to accrued liabilities at June 30, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $14.3 million of decrease to intangible assets, net at June 30, 2018.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $5.0 million to related party payables.

Exela Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	As of September 30, 2019						As of September 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Assets
Current assets
Cash and cash equivalents	$	10,312	$	(954)	$	9,358	$	40,692	$	514	$	41,206	c
Restricted cash		4,913		954		5,867		8,955		(514)		8,441	c
Accounts receivable, net		260,438		—		260,438		253,986		—		253,986
Related party receivables		42		—		42		—		—		—
Inventories, net		16,996		—		16,996		16,122		—		16,122
Prepaid expenses and other current assets		22,695		(78)		22,617		26,933		—		26,933	c
Total current assets		315,396		(78)		315,318		346,688		—		346,688
Property, plant and equipment, net		119,469		—		119,469		131,156		—		131,156
Operating lease right-of-use assets, net		93,352		—		93,352		—		—		—
Goodwill		609,458		2,524		611,982		749,762		—		749,762
Intangible assets, net		374,445		(17,331)		357,114		398,280		(13,385)		384,895	b
Deferred income tax assets		15,830		120		15,950		14,810		796		15,606	c
Other noncurrent assets		13,557		—		13,557		21,650		—		21,650
Total assets	$	1,541,507	$	(14,765)	$	1,526,742	$	1,662,346	$	(12,589)	$	1,649,757
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payables	$	93,815	$	—	$	93,815	$	90,673	$	—	$	90,673
Related party payables		274		9,933		10,207		10,756		5,036		15,792	c
Income tax payable		—		—		—		5,422		—		5,422
Accrued liabilities		60,994		43,103		104,097		41,397		39,862		81,259	a
Accrued compensation and benefits		51,819		(2,183)		49,636		54,975		(2,511)		52,464	c
Accrued interest		24,602		—		24,602		23,845		—		23,845
Customer deposits		30,161		—		30,161		39,419		—		39,419
Deferred revenue		17,368		—		17,368		18,084		—		18,084
Obligation for claim payment		43,267		—		43,267		52,889		—		52,889
Current portion of finance lease liabilities		15,172		—		15,172		15,926		—		15,926
Current portion of operating lease liabilities		26,604		—		26,604		—		—		—
Current portion of long-term debts		37,237		—		37,237		20,062		—		20,062
Total current liabilities		401,313		50,853		452,166		373,448		42,387		415,835
Long-term debt, net of current maturities		1,367,583		—		1,367,583		1,307,884		—		1,307,884
Finance lease liabilities, net of current portion		24,159		—		24,159		22,945		—		22,945
Pension liabilities		26,667		2,183		28,850		30,376		2,511		32,887	c
Deferred income tax liabilities		12,677		2		12,679		2,115		—		2,115	c
Long-term income tax liabilities		2,892		—		2,892		3,470		—		3,470
Operating lease liabilities, net of current portion		71,661		—		71,661		—		—		—
Other long-term liabilities		7,866		—		7,866		15,307		—		15,307
Total liabilities		1,914,818		53,038		1,967,856		1,755,545		44,898		1,800,443
Commitments and Contingencies
Shareholders' equity (deficit)
Common Stock		15		—		15		15		—		15
Preferred Stock		1		—		1		1		—		1
Additional paid-in capital		482,018		(36,566)		445,452		482,018		(36,566)		445,452
Treasury stock		(10,949)		—		(10,949)		(5,148)		—		(5,148)
Equity-based compensation		48,411		—		48,411		38,601		—		38,601
Accumulated deficit		(876,043)		(31,379)		(907,422)		(594,162)		(20,896)		(615,058)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(7,786)		142		(7,644)		(3,833)		(25)		(3,858)
Unrealized pension actuarial losses, net of tax		(8,978)		—		(8,978)		(10,691)		—		(10,691)
Total accumulated other comprehensive loss		(16,764)		142		(16,622)		(14,524)		(25)		(14,549)
Total stockholders' equity (deficit)		(373,311)		(67,803)		(441,114)		(93,199)		(57,487)		(150,686)
Total liabilities and equity	$	1,541,507	$	(14,765)	$	1,526,742	$	1,662,346	$	(12,589)	$	1,649,757

As of September 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $43.1 million to accrued liabilities at September 30, 2019.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $17.3 million of decrease to intangible assets, net at September 30, 2019.

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $9.9 million to related party payables.

As of September 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $39.9 million to accrued liabilities at September 30, 2018.

(b)

Outsourced Contract Cost Adjustments: The correction of this misstatement resulted in $13.4 million of decrease to intangible assets, net at September 30, 2018.

(c)

Other Misstatement Adjustments:

The restated quarterly Consolidated Statements of Operations for the first three quarters of fiscal 2019 and each of the quarterly periods in fiscal 2018 are presented below:

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended March 31, 2019
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Revenue	$	403,765	$	592	$	404,357	c
Cost of revenue (exclusive of depreciation and amortization)		306,882		3,719		310,601	b, c
Selling, general and administrative expenses (exclusive of depreciation and amortization)		49,949		(272)		49,677	c
Depreciation and amortization		28,020		(1,396)		26,624	b
Related party expense		994		4		998	c
Operating loss		17,920		(1,463)		16,457
Other expense (income), net:
Interest expense, net		38,899		802		39,701	a
Sundry expense (income), net		2,531		184		2,715	c
Other expense (income), net		1,677		(184)		1,493	c
Net loss before income taxes		(25,187)		(2,265)		(27,452)
Income tax (expense) benefit		(4,720)		—		(4,720)
Net loss	$	(29,907)	$	(2,265)	$	(32,172)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)
Net loss attributable to common stockholders	$	(30,821)	$	(2,265)	$	(33,086)

For the three months ended March 31, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.8 million to interest expense for the three months ended March 31, 2019.

(b)

(c)

Other Misstatement Adjustments:

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended June 30, 2019						For the Six Months Ended June 30, 2019
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Revenue	$	390,160	$	689	$	390,849	$	793,924	$	1,282	$	795,206		c
Cost of revenue (exclusive of depreciation and amortization)		298,006		5,825		303,831		604,888		9,544		614,432		b, c
Selling, general and administrative expenses (exclusive of depreciation and amortization)		51,564		(402)		51,162		101,513		(674)		100,839		c
Depreciation and amortization		27,191		(2,412)		24,779		55,211		(3,808)		51,403		b, c
Related party expense		1,055		4,276		5,331		2,049		4,280		6,329		c
Operating loss		12,344		(6,598)		5,746		30,263		(8,060)		22,203
Other expense (income), net:
Interest expense, net		39,132		827		39,959		78,031		1,629		79,660		a
Debt modification and extinguishment costs		1,404		—		1,404		1,404		—		1,404
Sundry expense (income), net		(1,493)		182		(1,311)		1,038		366		1,404		c
Other expense (income), net		2,709		(182)		2,527		4,386		(366)		4,020		c
Net loss before income taxes		(29,408)		(7,425)		(36,833)		(54,596)		(9,689)		(64,285)
Income tax (expense) benefit		(4,738)		—		(4,738)		(9,458)		—		(9,458)
Net loss	$	(34,146)	$	(7,425)	$	(41,571)	$	(64,054)	$	(9,689)	$	(73,743)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)		(1,828)		—		(1,828)
Net loss attributable to common stockholders	$	(35,060)	$	(7,425)	$	(42,485)	$	(65,882)	$	(9,689)	$	(75,571)

For the three months ended June 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.8 million to interest expense for the three months ended June 30, 2019.

(b)

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $4.3 million to related party expense.

For the six months ended June 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $1.6 million to interest expense for the six months ended June 30, 2019.

(b)

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $4.3 million to related party expense.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended September 30, 2019						For the Nine Months Ended September 30, 2019
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Revenue	$	372,917	$	628	$	373,545	$	1,166,841	$	1,910	$	1,168,751	c
Cost of revenue (exclusive of depreciation and amortization)		291,222		4,223		295,445		896,110		13,767		909,877	b, c
Selling, general and administrative expenses (exclusive of depreciation and amortization)		50,372		(2,025)		48,347		151,884		(2,698)		149,186	c
Depreciation and amortization		27,114		(2,035)		25,079		82,326		(5,844)		76,482	b, c
Impairment of goodwill and other intangible assets		99,682		(2,524)		97,158		99,682		(2,524)		97,158
Related party expense		1,405		25		1,430		3,454		4,305		7,759	c
Operating loss		(96,878)		2,964		(93,914)		(66,615)		(5,096)		(71,711)
Other expense (income), net:
Interest expense, net		39,747		826		40,573		117,778		2,457		120,235	a
Debt modification and extinguishment costs		—		—		—		1,404		—		1,404
Sundry expense (income), net		(10)		175		165		1,028		541		1,569	c
Other expense (income), net		581		(175)		406		4,965		(541)		4,424	c
Net loss before income taxes		(137,196)		2,138		(135,058)		(191,790)		(7,553)		(199,343)
Income tax (expense) benefit		3,769		—		3,769		(5,689)		—		(5,689)
Net loss	$	(133,427)	$	2,138	$	(131,289)	$	(197,479)	$	(7,553)	$	(205,032)
Cumulative dividends for Series A Preferred Stock		(884)		—		(884)		(2,712)		—		(2,712)
Net loss attributable to common stockholders	$	(134,311)	$	2,138	$	(132,173)	$	(200,191)	$	(7,553)	$	(207,744)

For the three months ended September 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.8 million to interest expense for the three months ended September 30, 2019.

(b)

(c)

Other Misstatement Adjustments:

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify legal expenses and related party expenses to appropriate quarters resulted in a net decrease of $2.0 million to selling, general and administrative expenses. (ii) Correction to reclassify goodwill impairment charges resulted in a decrease of $2.5 million to goodwill (iii) Correction of amortization related to internally developed software resulted in $0.7 million of increase to depreciation and amortization. (iv) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.2 million to sundry expense (income), net and a decrease of $0.2 million to other expense (loss), net.

For the nine months ended September 30, 2019

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $2.5 million to interest expense for the nine months ended September 30, 2019.

(b)

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $4.3 million to related party expense.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify legal expenses and related party expenses to appropriate quarters resulted in a net decrease of $2.7 million to selling, general and administrative expenses. (ii) Correction to reclassify goodwill impairment charges resulted in a decrease of $2.5 million to goodwill (iii) Correction of ASC 842 implementation related deferred rents resulted in an increase of $0.7 million to cost of revenue. (iv) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.5 million to sundry expense (income), net and a decrease of $0.5 million to other expense (loss), net.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended March 31, 2018
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Revenue	$	393,167	$	—	$	393,167
Cost of revenue (exclusive of depreciation and amortization)		293,792		1,105		294,897	b
Selling, general and administrative expenses (exclusive of depreciation and amortization)		45,595		(76)		45,519	c
Depreciation and amortization		38,019		(1,780)		36,239	b
Related party expense		1,105		76		1,181	c
Operating loss		14,656		675		15,331
Other expense (income), net:
Interest expense, net		38,017		659		38,676	a
Sundry expense (income), net		(64)		293		229	c
Other expense (income), net		(3,328)		(293)		(3,621)	c
Net loss before income taxes		(19,969)		16		(19,953)
Income tax (expense) benefit		(4,025)		—		(4,025)
Net loss	$	(23,994)	$	16	$	(23,978)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)
Net loss attributable to common stockholders	$	(24,908)	$	16	$	(24,892)

For the three months ended March 31, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.7 million to interest expense for the three months ended March 31, 2018.

(b)

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $0.1 million to related party expense.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended June 30, 2018						For the Six Months Ended June 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Revenue	$	410,382	$	—	$	410,382	$	803,549	$	—	$	803,549
Cost of revenue (exclusive of depreciation and amortization)		313,954		1,213		315,167		607,746		2,318		610,064	b
Selling, general and administrative expenses (exclusive of depreciation and amortization)		46,723		(345)		46,378		92,318		(421)		91,897	c
Depreciation and amortization		36,368		(1,624)		34,744		74,386		(3,404)		70,982	b
Related party expense		1,402		5,381		6,783		2,507		5,457		7,964	c
Operating loss		11,935		(4,625)		7,310		26,592		(3,950)		22,642
Other expense (income), net:
Interest expense, net		38,527		702		39,229		76,544		1,361		77,905	a
Sundry expense (income), net		(2,325)		203		(2,122)		(2,389)		496		(1,893)	c
Other expense (income), net		(704)		(203)		(907)		(4,032)		(496)		(4,528)	c
Net loss before income taxes		(23,563)		(5,327)		(28,890)		(43,531)		(5,311)		(48,842)
Income tax (expense) benefit		(1,619)		—		(1,619)		(5,644)		—		(5,644)
Net loss	$	(25,182)	$	(5,327)	$	(30,509)	$	(49,175)	$	(5,311)	$	(54,486)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)		(1,828)		—		(1,828)
Net loss attributable to common stockholders	$	(26,096)	$	(5,327)	$	(31,423)	$	(51,003)	$	(5,311)	$	(56,314)

For the three months ended June 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.7 million to interest expense for the three months ended June 30, 2018.

(b)

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $5.4 million to related party expense.

For the six months ended June 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $1.4 million to interest expense for the six months ended June 30, 2018.

(b)

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $5.5 million to related party expense.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended September 30, 2018						For the Nine Months Ended September 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Revenue	$	383,030	$	—	$	383,030	$	1,186,579	$	—	$	1,186,579
Cost of revenue (exclusive of depreciation and amortization)		295,936		749		296,685		903,682		3,067		906,749	b
Selling, general and administrative expenses (exclusive of depreciation and amortization)		44,913		(16)		44,897		137,231		(437)		136,794	c
Depreciation and amortization		35,041		(1,631)		33,410		109,428		(5,035)		104,393	b
Related party expense		759		16		775		3,267		5,472		8,739	c
Operating loss		6,381		882		7,263		32,971		(3,067)		29,904
Other expense (income), net:
Interest expense, net		38,339		748		39,087		114,883		2,109		116,992	a
Debt modification and extinguishment costs		1,067		—		1,067		1,067		—		1,067
Sundry expense (income), net		(2,571)		288		(2,283)		(4,961)		785		(4,176)	c
Other expense (income), net		(781)		(288)		(1,069)		(4,813)		(784)		(5,597)	c
Net loss before income taxes		(29,673)		134		(29,539)		(73,205)		(5,177)		(78,382)
Income tax (expense) benefit		733		—		733		(4,911)		—		(4,911)
Net loss	$	(28,940)	$	134	$	(28,806)	$	(78,116)	$	(5,177)	$	(83,293)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)		(2,742)		—		(2,742)
Net loss attributable to common stockholders	$	(29,854)	$	134	$	(29,720)	$	(80,858)	$	(5,177)	$	(86,035)

For the three months ended September 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.7 million to interest expense for the three months ended September 30, 2018.

(b)

(c)

Other Misstatement Adjustments:

For the nine months ended September 30, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $2.1 million to interest expense for the nine months ended September 30, 2018.

(b)

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $5.5 million to related party expense.

Other Adjustments - Corrections to other misstatements were as follows: (i) Correction to reclassify legal expenses as related party expenses resulted in a net decrease of $0.4 million to selling, general and administrative expenses. (ii) Correction to reclassify foreign exchange transaction gain / loss resulted in an increase of $0.8 million to sundry expense (income), net and a decrease of $0.8 million to other expense (loss), net.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Operations

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended December 31, 2018
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Revenue	$	399,643	$	—	$	399,643
Cost of revenue (exclusive of depreciation and amortization)		306,192		462		306,654	b, c
Selling, general and administrative expenses (exclusive of depreciation and amortization)		47,420		694		48,114	c
Depreciation and amortization		36,057		(2,373)		33,684	b
Impairment of goodwill and other intangible assets		48,127		—		48,127
Related party expense		1,068		2,596		3,664	c
Operating loss		(39,221)		(1,379)		(40,600)
Other expense (income), net:
Interest expense, net		38,212		787		38,999	a
Sundry expense (income), net		1,689		(784)		905	c
Other expense (income), net		1,783		784		2,567	c
Net loss before income taxes		(80,905)		(2,166)		(83,071)
Income tax (expense) benefit		(3,496)		54		(3,442)
Net loss	$	(84,401)	$	(2,112)	$	(86,513)
Cumulative dividends for Series A Preferred Stock		(914)		—		(914)
Net loss attributable to common stockholders	$	(85,315)	$	(2,112)	$	(87,427)

For the three months ended December 31, 2018

(a)

Appraisal Action Liability Adjustments: The correction of this misstatement resulted in an increase of $0.8 million to interest expense for the three months ended December 31, 2018.

(b)

(c)

Other Misstatement Adjustments:

Expense Reimbursement Adjustments: The correction of this misstatement resulted in an increase of $2.6 million to related party expense.

The restated quarterly Consolidated Statements of Comprehensive Loss for the first three quarters of fiscal 2019 and each of the quarterly periods in fiscal 2018 are presented below:

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended March 31, 2019
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Net loss	$	(29,907)	$	(2,265)	$	(32,172)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		3,392		—		3,392
Unrealized pension actuarial gains (losses), net of tax		(224)		—		(224)
Total other comprehensive loss, net of tax	$	(26,739)	$	(2,265)	$	(29,004)

For the three months ended March 31, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months ended March 31, 2019 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended June 30, 2019						For the Six Months Ended June 30, 2019
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Net loss	$	(34,146)	$	(7,425)	$	(41,571)	$	(64,054)	$	(9,689)	$	(73,743)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(2,288)		—		(2,288)		1,104		—		1,104
Unrealized pension actuarial gains (losses), net of tax		256		—		256		32		—		32
Total other comprehensive loss, net of tax	$	(36,178)	$	(7,425)	$	(43,603)	$	(62,918)	$	(9,689)	$	(72,607)

For the three months and six months ended June 30, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months and six months ended June 30, 2019 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended September 30, 2019						For the Nine Months Ended September 30, 2019
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Net loss	$	(133,427)	$	2,138	$	(131,289)	$	(197,479)	$	(7,553)	$	(205,032)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(2,325)		—		(2,325)		(1,221)		—		(1,221)
Unrealized pension actuarial gains (losses), net of tax		291		—		291		323		—		323
Total other comprehensive loss, net of tax	$	(135,461)	$	2,138	$	(133,323)	$	(198,377)	$	(7,553)	$	(205,930)

For the three months and nine months ended September 30, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months and nine months ended September 30, 2019 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended March 31, 2018
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Net loss	$	(23,994)	$	16	$	(23,978)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(268)		—		(268)
Unrealized pension actuarial gains (losses), net of tax		(403)		—		(403)
Total other comprehensive loss, net of tax	$	(24,665)	$	16	$	(24,649)

For the three months ended March 31, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months ended March 31, 2018 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended June 30, 2018						For the Six Months Ended June 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Net loss	$	(25,182)	$	(5,327)	$	(30,509)	$	(49,175)	$	(5,311)	$	(54,486)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(879)		—		(879)		(1,147)		—		(1,147)
Unrealized pension actuarial gains (losses), net of tax		626		—		626		223		—		223
Total other comprehensive loss, net of tax	$	(25,435)	$	(5,327)	$	(30,762)	$	(50,099)	$	(5,311)	$	(55,410)

For the three months and six months ended June 30, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months and six months ended June 30, 2018 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended September 30, 2018						For the Nine Months Ended September 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Net loss	$	(28,940)	$	134	$	(28,806)	$	(78,116)	$	(5,177)	$	(83,293)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(2,492)		—		(2,492)		(3,639)		—		(3,639)
Unrealized pension actuarial gains (losses), net of tax		140		—		140		363		—		363
Total other comprehensive loss, net of tax	$	(31,292)	$	134	$	(31,158)	$	(81,392)	$	(5,177)	$	(86,569)

For the three months and nine months ended September 30, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months and nine months ended September 30, 2018 above.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statement of Comprehensive Loss

(in thousands of United States dollars)

(Unaudited)


	For the Three Months Ended December 31, 2018
	As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reference
Net loss	$	(84,401)	$	(2,112)	$	(86,513)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(2,733)		167		(2,566)	c
Unrealized pension actuarial gains (losses), net of tax		1,390		—		1,390
Total other comprehensive loss, net of tax	$	(85,744)	$	(1,945)	$	(87,689)

For the three months ended December 31, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months ended December 31, 2018 above.

The $0.2 million decrease to foreign currency translation adjustments is primarily the result of changes in outsourced contract costs for foreign subsidiaries.

The restated Consolidated Statement of Cash Flows for the year-to-date periods of the first three quarters of fiscal 2019 and fiscal 2018 are presented below (dollars in thousands):

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands of United States dollars unless otherwise stated)

(Unaudited)


	For the Three Months Ended March 31, 2019						For the Three Months Ended March 31, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Cash flows from operating activities
Net loss	$	(29,907)	$	(2,265)	$	(32,172)	$	(23,994)	$	16	$	(23,978)
Adjustments to reconcile net loss
Depreciation and amortization		28,020		(1,396)		26,624		38,019		(1,780)		36,239	b
Original issue discount and debt issuance cost amortization		2,852		—		2,852		2,595		—		2,595
Provision for doubtful accounts		800		—		800		481		—		481
Deferred income tax provision		1,076		—		1,076		835		—		835
Share-based compensation expense		2,798		—		2,798		959		—		959
Foreign currency remeasurement		35		—		35		(323)		—		(323)
Loss (gain) on sale of assets		9		45		54		253		26		279	c
Fair value adjustment for interest rate swap		1,677		—		1,677		(3,328)		—		(3,328)
Change in operating assets and liabilities, net effect from acquisitions:
Accounts receivable		(8,742)		—		(8,742)		(10,875)		—		(10,875)
Prepaid expenses and other assets		(632)		—		(632)		(5,567)		—		(5,567)
Accounts payable and accrued liabilities		(33,574)		541		(33,033)		(18,864)		659		(18,205)	c
Related party payables		(1,551)		—		(1,551)		(273)		—		(273)
Additions to outsource contract costs		—		(2,434)		(2,434)		—		(492)		(492)	b
Net cash provided by (used in) operating activities		(37,139)		(5,509)		(42,648)		(20,082)		(1,571)		(21,653)

Cash flows from investing activities
Purchases of property, plant, and equipment		(5,572)		—		(5,572)		(5,957)		—		(5,957)
Additions to internally developed software		(1,879)		—		(1,879)		(1,092)		—		(1,092)
Additions to outsourcing contract costs		(5,561)		5,561		—		(1,596)		1,596		—	b
Proceeds from sale of assets		7		—		7		2		—		2
Net cash provided by (used in) investing activities		(13,005)		5,561		(7,444)		(8,643)		1,596		(7,047)

Cash flows from financing activities
Repurchases of Common Stock		(2,872)		—		(2,872)		—		—		—
Borrowings from other loans		566		6,338		6,904		1,863		—		1,863	c
Net borrowings under factoring arrangement		1,118		—		1,118		—		—		—
Lease terminations		—		(45)		(45)		—		(26)		(26)	c
Cash paid for equity issuance costs		—		—		—		(7,500)		—		(7,500)
Borrowings from senior secured revolving facility		51,000		—		51,000		25,000		—		25,000
Repayments on senior secured revolving facility		(21,000)		—		(21,000)		(25,000)		—		(25,000)
Principal payments on finance lease obligations		(5,077)		—		(5,077)		(4,803)		—		(4,803)
Principal repayments on senior secured term loans and other loans		(4,153)		(6,345)		(10,498)		(2,947)		—		(2,947)	c
Net cash provided by (used in) financing activities		19,582		(52)		19,530		(13,387)		(26)		(13,413)
Effect of exchange rates on cash		(32)		—		(32)		55		—		55
Net increase (decrease) in cash and cash equivalents		(30,594)		—		(30,594)		(42,057)		(1)		(42,058)
Cash, restricted cash, and cash equivalents
Beginning of period		43,854		—		43,854		81,489		—		81,489
End of period	$	13,260	$	—	$	13,260	$	39,432	$	(1)	$	39,431
Supplemental cash flow data:
Income tax payments, net of refunds received	$	1,356	$	—	$	1,356	$	1,053	$	—	$	1,053
Interest paid		60,573		—		60,573		66,192		—		66,192
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements		4,097		—		4,097		4,432		—		4,432
Leasehold improvements funded by lessor		—		—		—		—		—		—
Accrued capital expenditures		809		—		809		1,101		—		1,101

For the three months ended March 31, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months ended March 31, 2019 above.

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the three months ended March 31, 2019.

For the three months ended March 31, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the three months ended March 31, 2018 above.

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the three months ended March 31, 2018.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands of United States dollars unless otherwise stated)

(Unaudited)


	For the Six Months Ended June 30, 2019						For the Six Months Ended June 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Cash flows from operating activities
Net loss	$	(64,054)	$	(9,689)	$	(73,743)	$	(49,175)	$	(5,311)	$	(54,486)
Adjustments to reconcile net loss
Depreciation and amortization		55,211		(3,808)		51,403		74,386		(3,404)		70,982	b, c
Original issue discount and debt issuance cost amortization		5,749		—		5,749		5,272		—		5,272
Debt modification and extinguishment costs		1,049		—		1,049		—		—		—
Provision for doubtful accounts		3,334		—		3,334		1,857		—		1,857
Deferred income tax provision		4,623		—		4,623		705		—		705
Share-based compensation expense		5,459		—		5,459		2,895		—		2,895
Foreign currency remeasurement		288		—		288		(1,156)		—		(1,156)
Loss (gain) on sale of assets		(10)		95		85		1,340		55		1,395	c
Fair value adjustment for interest rate swap		4,385		—		4,385		(4,675)		—		(4,675)
Change in operating assets and liabilities, net effect from acquisitions:
Accounts receivable		624		—		624		(19,813)		—		(19,813)
Prepaid expenses and other assets		1,260		—		1,260		(1,603)		—		(1,603)
Accounts payable and accrued liabilities		(14,991)		2,396		(12,595)		40,677		1,361		42,038	c
Related party payables		(7,703)		3,804		(3,899)		(2,458)		5,036		2,578	c
Additions to outsource contract costs		—		(2,860)		(2,860)		—		(1,377)		(1,377)	b
Net cash provided by (used in) operating activities		(4,776)		(10,062)		(14,838)		48,252		(3,640)		44,612

Cash flows from investing activities
Purchases of property, plant, and equipment		(9,072)		—		(9,072)		(10,244)		—		(10,244)
Additions to internally developed software		(4,007)		—		(4,007)		(2,115)		—		(2,115)
Additions to outsourcing contract costs		(10,440)		10,440		—		(3,695)		3,695		—	b
Proceeds from sale of assets		20		—		20		1,014		—		1,014
Cash paid in acquisition, net of cash received		(5,000)		—		(5,000)		(4,145)		—		(4,145)
Net cash provided by (used in) investing activities		(28,499)		10,440		(18,059)		(19,185)		3,695		(15,490)

Cash flows from financing activities
Third party debt modification and extinguishment costs		355		(355)		—		—		—		—	c
Repurchases of Common Stock		(3,480)		—		(3,480)		(3,479)		—		(3,479)
Borrowings from other loans		1,544		12,548		14,092		2,152		—		2,152	c
Net borrowings under factoring arrangement		2,426		—		2,426		—		—		—
Proceeds from senior secured term loans		29,850		—		29,850		—		—		—
Lease terminations		—		(95)		(95)		—		(56)		(56)	c
Cash paid for debt issuance costs		(362)		355		(7)		—		—		—	c
Cash paid for equity issuance costs		—		—		—		(7,500)		—		(7,500)
Borrowings from senior secured revolving facility		68,000		—		68,000		30,000		—		30,000
Repayments on senior secured revolving facility		(68,000)		—		(68,000)		(30,000)		—		(30,000)
Principal payments on finance lease obligations		(9,180)		—		(9,180)		(8,404)		—		(8,404)
Principal repayments on senior secured term loans and other loans		(8,417)		(12,831)		(21,248)		(6,043)		—		(6,043)	c
Net cash provided by (used in) financing activities		12,736		(378)		12,358		(23,274)		(56)		(23,330)
Effect of exchange rates on cash		111		—		111		(410)		—		(410)
Net increase (decrease) in cash and cash equivalents		(20,428)		—		(20,428)		5,383		(1)		5,382
Cash, restricted cash, and cash equivalents
Beginning of period		43,854		—		43,854		81,489		—		81,489
End of period	$	23,426	$	—	$	23,426	$	86,872	$	(1)	$	86,871
Supplemental cash flow data:
Income tax payments, net of refunds received	$	5,181	$	—	$	5,181	$	3,864	$	—	$	3,864
Interest paid		71,240		(29)		71,211		76,353		—		76,353	c
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements		6,778		—		6,778		7,787		—		7,787
Leasehold improvements funded by lessor		—		—		—		1,540		—		1,540
Accrued capital expenditures		1,083		—		1,083		1,144		—		1,144

For the six months ended June 30, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the six months ended June 30, 2019 above.

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the six months ended June 30, 2019.

For the six months ended June 30, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the six months ended June 30, 2018 above.

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the six months ended June 30, 2018.

Exela Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands of United States dollars unless otherwise stated)

(Unaudited)


	For the Nine Months Ended September 30, 2019						For the Nine Months Ended September 30, 2018
	As Previously		Restatement				As Previously		Restatement				Restatement
	Reported		Adjustment		As Restated		Reported		Adjustment		As Restated		Reference
Cash flows from operating activities
Net loss	$	(197,479)	$	(7,553)	$	(205,032)	$	(78,116)	$	(5,177)	$	(83,293)
Adjustments to reconcile net loss
Depreciation and amortization		82,326		(5,844)		76,482		109,428		(5,035)		104,393	b
Original issue discount and debt issuance cost amortization		8,730		—		8,730		8,062		—		8,062
Impairment of goodwill and other intangible assets		99,682		(2,524)		97,158		—		—		—	c
Debt modification and extinguishment costs		1,049		—		1,049		—		103		103
Provision for doubtful accounts		4,402		—		4,402		2,470		—		2,470
Deferred income tax provision		1,632		—		1,632		(3,689)		—		(3,689)
Share-based compensation expense		6,903		—		6,903		4,516		—		4,516
Foreign currency remeasurement		(173)		—		(173)		(2,040)		—		(2,040)
Loss (gain) on sale of assets		(191)		314		123		1,835		213		2,048	c
Fair value adjustment for interest rate swap		4,965		—		4,965		(5,456)		—		(5,456)
Change in operating assets and liabilities, net effect from acquisitions:
Accounts receivable		3,501		—		3,501		(6,374)		—		(6,374)
Prepaid expenses and other assets		2,377		—		2,377		(5,770)		—		(5,770)
Accounts payable and accrued liabilities		(43,861)		2,715		(41,146)		(23,457)		2,109		(21,348)	c
Related party payables		(7,502)		2,304		(5,198)		(3,689)		5,036		1,347	c
Additions to outsource contract costs		—		(3,130)		(3,130)		—		(2,360)		(2,360)	b
Net cash provided by (used in) operating activities		(33,639)		(13,718)		(47,357)		(2,280)		(5,111)		(7,391)

Cash flows from investing activities
Purchases of property, plant, and equipment		(10,797)		—		(10,797)		(14,077)		—		(14,077)
Additions to internally developed software		(5,074)		—		(5,074)		(3,080)		—		(3,080)
Additions to outsourcing contract costs		(14,304)		14,304		—		(5,427)		5,427		—	b
Proceeds from sale of assets		360		—		360		1,095		—		1,095
Cash paid in acquisition, net of cash received		(5,000)		—		(5,000)		(6,513)		—		(6,513)
Net cash provided by (used in) investing activities		(34,815)		14,304		(20,511)		(28,002)		5,427		(22,575)

Cash flows from financing activities
Third party debt modification and extinguishment costs		355		(355)		—		1,067		(1,067)		—	c
Repurchases of Common Stock		(3,480)		—		(3,480)		(4,899)		—		(4,899)
Borrowings from other loans		1,728		19,802		21,530		3,068		—		3,068	c
Net borrowings under factoring arrangement		(494)		—		(494)		—		—		—
Cash paid for withholding taxes on vested RSUs		(223)		—		(223)		—		—		—
Proceeds from senior secured term loans		29,850		—		29,850		30,000		—		30,000
Lease terminations		—		(314)		(314)		—		(213)		(213)	c
Cash paid for debt issuance costs		(362)		355		(7)		(1,094)		964		(130)	c
Cash paid for equity issuance costs		—		—		—		(7,500)		—		(7,500)
Borrowings from senior secured revolving facility		130,500		—		130,500		30,000		—		30,000
Repayments on senior secured revolving facility		(91,500)		—		(91,500)		(30,000)		—		(30,000)
Principal payments on finance lease obligations		(13,598)		—		(13,598)		(12,594)		—		(12,594)
Principal repayments on senior secured term loans and other loans		(12,922)		(20,074)		(32,996)		(9,053)		—		(9,053)	c
Net cash provided by (used in) financing activities		39,854		(586)		39,268		(1,005)		(316)		(1,321)
Effect of exchange rates on cash		(29)		—		(29)		(555)		—		(555)
Net increase (decrease) in cash and cash equivalents		(28,629)		—		(28,629)		(31,842)		—		(31,842)
Cash, restricted cash, and cash equivalents
Beginning of period		43,854		—		43,854		81,489		—		81,489
End of period	$	15,225	$	—	$	15,225	$	49,647	$	—	$	49,647
Supplemental cash flow data:
Income tax payments, net of refunds received	$	6,981	$	—	$	6,981	$	5,296	$	—	$	5,296
Interest paid		131,773		(29)		131,744		136,396		—		136,396	c
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements		9,352		—		9,352		9,318		—		9,318
Leasehold improvements funded by lessor		—		—		—		1,565		—		1,565
Accrued capital expenditures		1,083		1,305		2,388		1,994		—		1,994	c

For the nine months ended September 30, 2019

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the nine months ended September 30, 2019 above.

The misstatements in the cash flow misclassifications category related to (i) Lease terminations resulted in a decrease to net cash flows provided by financing activities of $0.3 million and an increase to net cash flows provided by operating activities of $0.3 million for the year ended December 31, 2018. (Loss on sale of assets and lease terminations), (ii) Grossing up of borrowing and pay downs of a working capital loan on a foreign subsidiary resulting in an increase of $19.8 million of borrowings from other loans and a decrease of $20.1 million of principal repayments on other loans, both of which were within net cash provided by financing, and (iii) Cash flow classification adjustment related to incorrect interpretation of ASU 2016-15 (Classification of Certain Receipts and Cash Payments) in 2018 resulted in a line item classification change within cash flows provided by financing activities (Decrease of $0.4 million of Third party debt modification and extinguishment costs and an increase of $0.4 million of cash paid for debt issuance costs).

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the nine months ended September 30, 2019.

For the nine months ended September 30, 2018

Refer to descriptions of the adjustments and their impact on net loss in the Consolidated Statement of Operations section for the nine months ended September 30, 2018 above.

The misstatements in the cash flow misclassifications category related to (i) Lease terminations resulted in a decrease to net cash flows provided by financing activities of $0.2 million and an increase to net cash flows provided by operating activities of $0.2 million for the year ended December 31, 2018 (Loss on sale of assets and lease terminations), (ii) Cash flow classification adjustment related to incorrect interpretation of ASU 2016-15 (Classification of Certain Receipts and Cash Payments) in 2018 resulted in a net increase to cash flows provided by operating activities of $0.1 million, a decrease to net cash flows provided by financing activities of $0.1 million for the year ended December 31, 2018. (Increase of $0.1 million to Debt modification and extinguishment costs, a decrease of $1.1 million to third party debt modification and extinguishment costs and an increase of $1.0 million to cash paid for debt issuance costs)

No other misstatements impacted the classifications between net operating, net investing, or net financing cash flow activities for the nine months ended September 30, 2018.

Description of the Business (Details)	12 Months Ended
Description of the Business (Details)	Dec. 31, 2019 segment
Description of the Business
Number of segments	3

Basis of Presentation and Summary of Significant Accounting Policies - Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended	12 Months Ended
	Jul. 12, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2017	Dec. 31, 2018
Common Stock, par value (in dollars per share)		$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Goodwill and other intangible assets recorded	$ 0
Net cash from trust	27,000
Accrued fees payable	$ 4,800
Common stock, shares issued			153,638,836		152,692,140
Ex-Sigma 2, LLC
Principal amount			$ 55,800
Common stock, shares issued			84,912,500
Exposure to loss			$ 0
Ex-Sigma 2, LLC \| Exela Technologies, Inc [Member]
Ownership percentage			54.90%
SourceHOV
Fiscal period duration				365 days
Novitex
Fiscal period duration		172 days

Basis of Presentation and Summary of Significant Accounting Policies - Going Concern (Details) - USD ($) $ in Thousands						3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	May 18, 2020	Mar. 27, 2020	Mar. 23, 2020	Mar. 16, 2020	Jan. 10, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 05, 2020	Jan. 31, 2020
Net loss						$ (304,084)	$ (131,289)	$ (41,571)	$ (32,172)	$ (86,513)	$ (28,806)	$ (30,509)	$ (23,978)	$ (73,743)	$ (54,486)	$ (205,032)	$ (83,293)	$ (509,116)	$ (169,806)	$ (209,484)
Impairment of goodwill and other intangible assets						252,399	97,158			48,127						97,158		349,557	48,127	69,437
Net cash used in operating activities									(42,648)				(21,653)	(14,838)	44,612	(47,357)	(7,391)	(63,851)	23,600	$ 51,777
Working Capital Deficit						147,100				123,500								147,100	123,500
Interest Paid on Long Term Debt																		144,500
Litigation liability																						$ 56,400
Cash and cash equivalents						6,198	9,358	18,406	8,559	36,206	41,206	56,961	29,010	18,406	56,961	9,358	41,206	6,198	36,206		$ 94,100
Liquid cash																					$ 13,400
Accumulated deficit						(1,211,508)	$ (907,422)	$ (776,134)	$ (734,563)	$ (702,392)	$ (615,058)	$ (586,253)	$ (555,744)	$ (776,134)	$ (586,253)	$ (907,422)	$ (615,058)	(1,211,508)	$ (702,392)
Minimum Liquidity Amount	$ 35,000
Cash Saving In Temporary Freeze Of Employee Related Cost			$ 23,400
Cash Saving Due To Refund Of Tax Relating To Aid Relief		$ 29,000
Subsequent Events
Minimum Liquidity Amount	35,000
Accounts Receivable Securitization Facility
Liquid cash						40,000												40,000
Amount of facility					$ 160,000
Facility term (years)					5 years
Minimum Liquidity Amount					$ 40,000
Credit Agreement
Liquid cash						$ 35,000												$ 35,000
Minimum Liquidity Amount	$ 35,000
Source HOV Tax, LLC \| Gainline Source Intermediate Holdings LLC
Procceds from membership interest sale				$ 2,000
Source HOV Tax, LLC \| Merco Holdings, LLC \| Gainline Source Intermediate Holdings LLC
Membership interests				40,000
Source HOV Tax, LLC \| Subsequent Events \| Gainline Source Intermediate Holdings LLC
Procceds from membership interest sale				2,000
Source HOV Tax, LLC \| Subsequent Events \| Merco Holdings, LLC \| Gainline Source Intermediate Holdings LLC
Membership interests				$ 40,000

Basis of Presentation and Summary of Significant Accounting Policies - Segment Reporting (Details)	12 Months Ended
	Dec. 31, 2019 segment
Basis of Presentation and Summary of Significant Accounting Policies
Number of segments	3

Basis of Presentation and Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Obligation For Claim Payment
Restricted Cash
Restricted cash	$ 39.1	$ 56.0

Basis of Presentation and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Basis of Presentation and Summary of Significant Accounting Policies
Inventories, net	$ 19,047	$ 16,996	$ 16,735	$ 16,321	$ 16,220	$ 16,122	$ 15,088	$ 13,519

Basis of Presentation and Summary of Significant Accounting Policies - Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2019 item USD ($)
Intangible Assets
Number of principal categories \| $	2
Number of executives terminated \| item	4
Customer relationships \| Minimum
Intangible Assets
Estimated useful life	4 years
Customer relationships \| Maximum
Intangible Assets
Estimated useful life	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
Assembled workforce
Intangible Assets
Estimated useful life	4 years

Basis of Presentation and Summary of Significant Accounting Policies - Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
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 - Not designated as hedging instrument - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Nov. 30, 2017	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Term of hedging contract (in years)	3 years
Notional amount	$ 347.8	$ 328.1
Weighted Average Interest Rate		1.9275%
Gain on interest rate swaps		$ 4.3	$ 2.5

Basis of Presentation and Summary of Significant Accounting Policies - Leases (Details)	12 Months Ended
	Dec. 31, 2019
Basis of Presentation and Summary of Significant Accounting Policies
Options to terminate - operating lease	True
Options to extend - finance lease	true
Options to extend - operating lease	True
Options to terminate - finance lease	true

Basis of Presentation and Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenues
Revenue	$ 393,586	$ 373,545	$ 390,849	$ 404,357	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 795,206	$ 803,549	$ 1,168,751	$ 1,186,579	$ 1,562,337	$ 1,586,222	$ 1,145,891
United States
Disaggregation of Revenues
Revenue													1,286,678	1,347,516	1,000,827
EMEA
Disaggregation of Revenues
Revenue													248,466	211,314	130,098
Other
Disaggregation of Revenues
Revenue													27,193	27,392	14,966
ITPS
Disaggregation of Revenues
Revenue	306,665	292,607	309,840	325,172	324,267	307,313	330,131	311,936					1,234,284	1,273,647	820,677
ITPS \| United States
Disaggregation of Revenues
Revenue													958,625	1,034,941	675,613
ITPS \| EMEA
Disaggregation of Revenues
Revenue													248,466	211,314	130,098
ITPS \| Other
Disaggregation of Revenues
Revenue													27,193	27,392	14,966
HS
Disaggregation of Revenues
Revenue	69,806	62,132	63,440	61,343	56,293	56,776	56,314	58,632					256,721	228,015	233,595
HS \| United States
Disaggregation of Revenues
Revenue													256,721	228,015	233,595
LLPS
Disaggregation of Revenues
Revenue	$ 17,115	$ 18,806	$ 17,569	$ 17,842	$ 19,083	$ 18,941	$ 23,937	$ 22,599					71,332	84,560	91,619
LLPS \| United States
Disaggregation of Revenues
Revenue													$ 71,332	$ 84,560	$ 91,619

Basis of Presentation and Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Basis of Presentation and Summary of Significant Accounting Policies
Accounts receivable, net	$ 261,400	$ 270,812	$ 260,438	$ 266,660	$ 278,064	$ 253,986	$ 262,260	$ 238,680
Deferred revenues	16,621	16,940
Customer deposits	27,765	34,235	$ 30,161	$ 28,914	$ 28,410	$ 39,419	$ 36,997	$ 36,542
Costs to obtain and fulfill a contract	4,977	6,623
Unbilled receivables, net	34,135	39,498
Revenue recognized from deferred revenue	14,400
Amortization of contract costs	$ 2,900	$ 3,100
Practical expedient on incremental costs of obtaining contracts	true

Basis of Presentation and Summary of Significant Accounting Policies - Performance Obligations (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Basis of Presentation and Summary of Significant Accounting Policies
Contracts with an original expected length	true
2020	$ 50,664
2021	38,586
2022	32,814
2023	27,408
2024	26,452
2025 and thereafter	27,141
Total	$ 203,065

Basis of Presentation and Summary of Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Basis of Presentation and Summary of Significant Accounting Policies
Research and development costs	$ 1.7	$ 2.0	$ 2.3

Basis of Presentation and Summary of Significant Accounting Policies - Advertising Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Basis of Presentation and Summary of Significant Accounting Policies
Advertising costs	$ 1.1	$ 0.9	$ 0.7

Basis of Presentation and Summary of Significant Accounting Policies - Operations (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Outside United States
Long-lived assets	$ 33.7	$ 34.4

Basis of Presentation and Summary of Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Basis of Presentation and Summary of Significant Accounting Policies
Net exchange gains (losses)	$ (35)	$ 323	$ (288)	$ 1,156	$ 173	$ 2,040	$ 511	$ 1,180	$ (1,382)

Basis of Presentation and Summary of Significant Accounting Policies - Beneficial Conversion Feature (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	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	$ 0	$ 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								6 Months Ended		9 Months Ended		12 Months Ended
	Jul. 12, 2017	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Mar. 31, 2020
Net loss per share
Anti dilutive shares														5,247,005	4,463,597	4,590,520
Net loss attributable to common stockholders		$ (304,681)	$ (132,173)	$ (42,485)	$ (33,086)	$ (87,427)	$ (29,720)	$ (31,423)	$ (24,892)	$ (75,571)	$ (56,314)	$ (207,744)	$ (86,035)	$ (512,425)	$ (173,461)	$ (228,348)
Weighted average common shares outstanding - basic and diluted														145,718,936	147,773,089	104,914,382
Loss per share - Basic and diluted (in dollars per share)		$ (2.09)	$ (0.91)	$ (0.29)	$ (0.23)	$ (0.59)	$ (0.20)	$ (0.21)	$ (0.17)					$ (3.52)	$ (1.17)	$ (2.18)
Common stock, shares returned																	4,570,734
Series A Preferred Stock
Net loss per share
Number of anti-dilutive shares excluded from computation of diluted loss per share														5,250,129
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 Standards (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Accumulated deficit	$ (1,211,508)	$ (907,422)	$ (776,134)	$ (734,563)	$ (702,392)	$ (615,058)	$ (586,253)	$ (555,744)
ASU 2014-09
Accumulated deficit					$ 12,800

Restatement of Previously Issued Financial Statements (Details) - USD ($)				1 Months Ended		3 Months Ended									6 Months Ended			9 Months Ended		12 Months Ended
	Mar. 26, 2020	Jan. 30, 2020	Sep. 21, 2017	Jul. 31, 2019	Apr. 30, 2018	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restatement of Previously Issued Financial Statements
Revenue							$ 393,586,000	$ 373,545,000	$ 390,849,000	$ 404,357,000	$ 399,643,000	$ 383,030,000	$ 410,382,000	$ 393,167,000		$ 795,206,000	$ 803,549,000	$ 1,168,751,000	$ 1,186,579,000	$ 1,562,337,000	$ 1,586,222,000	$ 1,145,891,000
Cost of revenue							314,858,000	295,445,000	303,831,000	310,601,000	306,654,000	296,685,000	315,167,000	294,897,000		614,432,000	610,064,000	909,877,000	906,749,000	1,224,735,000	1,213,403,000	827,544,000
(Understatement) / overstatement of loss							$ (302,131,000)	$ (135,058,000)	$ (36,833,000)	$ (27,452,000)	$ (83,071,000)	$ (29,539,000)	$ (28,890,000)	$ (19,953,000)		(64,285,000)	(48,842,000)	(199,343,000)	(78,382,000)	$ (501,474,000)	$ (161,453,000)	$ (270,552,000)
(Understatement) / overstatement of loss per share							$ (2.09)	$ (0.91)	$ (0.29)	$ (0.23)	$ (0.59)	$ (0.20)	$ (0.21)	$ (0.17)						$ (3.52)	$ (1.17)	$ (2.18)
Related party expense							$ 1,742,000	$ 1,430,000	$ 5,331,000	$ 998,000	$ 3,664,000	$ 775,000	$ 6,783,000	$ 1,181,000		6,329,000	7,964,000	7,759,000	8,739,000	$ 9,501,000	$ 12,403,000	$ 33,431,000
Increase (Decrease) in Prepaid Expense and Other Assets										632,000				5,567,000		(1,260,000)	1,603,000	(2,377,000)	5,770,000	4,825,000	2,820,000	(1,029,000)
(Overstatement) / understatement of intangible assets, net							342,443,000	357,114,000	372,004,000	383,680,000	395,020,000	384,895,000	405,457,000	424,251,000	$ 342,443,000	372,004,000	405,457,000	357,114,000	384,895,000	342,443,000	395,020,000
Retained earnings							(1,211,508,000)	(907,422,000)	(776,134,000)	(734,563,000)	(702,392,000)	(615,058,000)	(586,253,000)	(555,744,000)	(1,211,508,000)	(776,134,000)	(586,253,000)	(907,422,000)	(615,058,000)	(1,211,508,000)	(702,392,000)
Increase in pension liabilities							25,681,000	28,850,000	27,141,000	27,730,000	27,641,000	32,887,000	32,967,000	28,540,000	25,681,000	27,141,000	32,967,000	28,850,000	32,887,000	25,681,000	27,641,000
Increase in interest expense							$ (43,216,000)	(40,573,000)	(39,959,000)	(39,701,000)	(38,999,000)	(39,087,000)	(39,229,000)	(38,676,000)		(79,660,000)	(77,905,000)	(120,235,000)	(116,992,000)	(163,449,000)	(155,991,000)	(129,676,000)
Increase/ (decrease) to net cash flows provided investing activities										(7,444,000)				(7,047,000)		(18,059,000)	(15,490,000)	(20,511,000)	(22,575,000)	(25,182,000)	(58,752,000)	(441,382,000)
Increase/ (decrease) to net cash flows provided by financing activities										19,530,000				(13,413,000)		12,358,000	(23,330,000)	39,268,000	(1,321,000)	59,139,000	(2,605,000)	436,413,000
Increase/ (decrease) to net cash flows provided operating activities										(42,648,000)				(21,653,000)		(14,838,000)	44,612,000	(47,357,000)	(7,391,000)	(63,851,000)	23,600,000	51,777,000
ASU 2016-15
Restatement of Previously Issued Financial Statements
Increase/ (decrease) to net cash flows provided by financing activities																						(34,500,000)
Increase/ (decrease) to net cash flows provided operating activities																						34,500,000
Adjustment
Restatement of Previously Issued Financial Statements
Revenue								628,000	689,000	592,000						1,282,000		1,910,000				(6,433,000)
Cost of revenue								4,223,000	5,825,000	3,719,000	462,000	749,000	1,213,000	1,105,000		9,544,000	2,318,000	13,767,000	3,067,000		3,529,000	(1,599,000)
(Understatement) / overstatement of loss								2,138,000	(7,425,000)	(2,265,000)	(2,166,000)	134,000	(5,327,000)	16,000		(9,689,000)	(5,311,000)	(7,553,000)	(5,177,000)		$ (7,343,000)	$ (6,021,000)
(Understatement) / overstatement of loss per share																					$ (0.08)	$ (0.10)
Related party expense								25,000	4,276,000	4,000	2,596,000	16,000	5,381,000	76,000		4,280,000	5,457,000	4,305,000	5,472,000		$ 8,069,000
Increase (Decrease) in Prepaid Expense and Other Assets																						$ 1,599,000
(Overstatement) / understatement of intangible assets, net								(17,331,000)	(15,771,000)	(13,732,000)	(12,001,000)	(13,385,000)	(14,268,000)	(14,678,000)		(15,771,000)	(14,268,000)	(17,331,000)	(13,385,000)		(12,001,000)
Retained earnings								(31,379,000)	(33,518,000)	(26,776,000)	(23,829,000)	(20,896,000)	(21,031,000)	(15,703,000)		(33,518,000)	(21,031,000)	(31,379,000)	(20,896,000)		(23,829,000)
Increase in pension liabilities								2,183,000	2,275,000	2,216,000	2,372,000	2,511,000	2,496,000	2,459,000		2,275,000	2,496,000	2,183,000	2,511,000		2,372,000
Increase in interest expense								(826,000)	(827,000)	(802,000)	(787,000)	(748,000)	(702,000)	(659,000)		(1,629,000)	(1,361,000)	(2,457,000)	(2,109,000)		(2,896,000)	(1,187,000)
Decrease in net income																					2,100,000	5,200,000
Increase/ (decrease) to net cash flows provided investing activities										5,561,000				1,596,000		10,440,000	3,695,000	14,304,000	5,427,000		7,552,000	10,992,000
Increase/ (decrease) to net cash flows provided by financing activities										(52,000)				(26,000)		(378,000)	(56,000)	(586,000)	(316,000)		(695,000)	(39,314,000)
Increase/ (decrease) to net cash flows provided operating activities										(5,509,000)				(1,571,000)		(10,062,000)	(3,640,000)	(13,718,000)	(5,111,000)		(6,857,000)	28,322,000
Adjustment \| ASU 2016-15
Restatement of Previously Issued Financial Statements
Increase/ (decrease) to net cash flows provided by financing activities																					(100,000)
Increase/ (decrease) to net cash flows provided operating activities																					100,000
Selling, general and administrative expense
Restatement of Previously Issued Financial Statements
Related party expense																		500,000		$ 400,000
Appraisal Action Liability Adjustments
Restatement of Previously Issued Financial Statements
(Understatement) / overstatement of loss																		(2,400,000)			(2,900,000)	(1,200,000)
Increase in accrued liabilities																		43,100,000			40,600,000	37,800,000
Increase in accrued liabilities																		43,100,000			40,600,000	37,800,000
Increase in interest expense																					2,900,000	1,200,000
Appraisal Action Liability Adjustments \| Novitex \| Source HOV Tax, LLC
Restatement of Previously Issued Financial Statements
Fair value of common stock per share		$ 4,591
Appraisal Action Liability Adjustments \| Novitex \| Petitioners
Restatement of Previously Issued Financial Statements
Number of shares owned			10,304
Amount awarded to petitioners	$ 57,698,426
Appraisal Action Liability Adjustments \| Ex-Sigma 2, LLC \| Source HOV Tax, LLC
Restatement of Previously Issued Financial Statements
Decrease in shares outstanding						4,570,734
Shares returned to company						4,570,734
Appraisal Action Liability Adjustments \| Adjustment
Restatement of Previously Issued Financial Statements
Increase in accrued liabilities								43,100,000	42,300,000	41,500,000		39,900,000	39,100,000	38,400,000
Increase in accrued liabilities								43,100,000	42,300,000	41,500,000		39,900,000	39,100,000	38,400,000
Expense Reimbursement Adjustments
Restatement of Previously Issued Financial Statements
Increase in related party payables								9,900,000	11,400,000		7,600,000					11,400,000		9,900,000			7,600,000
Related party expense									4,300,000										5,500,000
Expense Reimbursement Adjustments \| Ex-Sigma 2, LLC
Restatement of Previously Issued Financial Statements
Increase in related party payables										7,600,000	7,600,000	5,000,000	5,000,000				5,000,000		5,000,000		7,600,000
Payment of selling, general and administrative expenses				$ 1,500,000
(Understatement) / overstatement of loss																		1,700,000			5,200,000
Related party expense															4,500,000
Expense Reimbursement Adjustments \| Ex-Sigma 2, LLC \| Secondary Public Offering
Restatement of Previously Issued Financial Statements
Related party expense															$ 4,500,000
Underwriting discount and commission expenses					$ 2,100,000
Advisory fees					$ 300,000
Expense related to discount to market price									2,100,000
Expense Reimbursement Adjustments \| Adjustment
Restatement of Previously Issued Financial Statements
Increase in related party payables								9,900,000	11,400,000	7,600,000		5,000,000	5,000,000			11,400,000	5,000,000	9,900,000	5,000,000
(Understatement) / overstatement of loss								1,500,000	(2,100,000)												(2,400,000)
Related party expense									2,100,000				5,400,000			4,300,000	5,500,000				2,400,000
Increase in related party payables											2,600,000			100,000							8,100,000
Revenue Recognition Adjustments
Restatement of Previously Issued Financial Statements
Revenue																						6,400,000
Cost of revenue																						1,600,000
Increase / (decrease) in cost of revenue																						(1,600,000)
Revenue Recognition Adjustments \| Adjustment
Restatement of Previously Issued Financial Statements
Revenue								600,000	700,000	600,000						1,300,000		1,900,000				(6,400,000)
Cost of revenue								600,000	700,000	600,000						1,300,000		1,900,000
(Understatement) / overstatement of loss																						(4,800,000)
Increase (Decrease) in Prepaid Expense and Other Assets																						1,600,000
Deferred revenue																						(6,400,000)
Outsourced Contract Cost Adjustments
Restatement of Previously Issued Financial Statements
(Overstatement) / understatement of intangible assets, net											(12,000,000)										(12,000,000)
Additions to outsourcing contract costs																					4,000,000
Depreciation and amortization																					7,400,000
Increase / (decrease) in cost of revenue																					4,200,000
Decrease in depreciation and amortization																					7,400,000
Increase/ (decrease) to net cash flows provided investing activities																					7,600,000	11,000,000
Increase/ (decrease) to net cash flows provided operating activities																					(11,400,000)	(11,000,000)
Outsourced Contract Cost Adjustments \| Adjustment
Restatement of Previously Issued Financial Statements
Revenue								3,600,000		3,100,000
Cost of revenue									4,500,000		1,200,000	700,000	1,200,000	1,100,000		7,600,000		11,200,000	3,000,000
(Understatement) / overstatement of loss																		5,300,000			3,200,000
(Overstatement) / understatement of intangible assets, net								17,300,000			12,000,000							17,300,000			12,000,000
Retained earnings											(15,400,000)										(15,400,000)
Increase/ (decrease) to net cash flows provided operating activities										(3,800,000)				2,300,000		6,700,000	4,800,000	8,900,000	7,400,000
Cash Flows Classification Adjustments
Restatement of Previously Issued Financial Statements
Increase/ (decrease) to net cash flows provided investing activities																					7,500,000	11,000,000
Increase/ (decrease) to net cash flows provided by financing activities																						34,500,000
Increase/ (decrease) to net cash flows provided operating activities																		14,300,000			100,000
Other Adjustment
Restatement of Previously Issued Financial Statements
Increase in accrued liabilities																					700,000
Increase in cash and cash equivalents																					10,600,000
Decrease in restricted cash																					10,600,000
Decrease in accrued compensation and benefits																					2,400,000
Increase in pension liabilities											2,400,000										2,400,000
Decrease in other long-term liabilities																					700,000
Increase in accrued liabilities																					700,000
Increase / (decrease) in cost of revenue																					(700,000)
Increase in selling, general and administrative expense																					300,000
Increase in income tax expense																						800,000
Other Adjustment \| Adjustment
Restatement of Previously Issued Financial Statements
Cost of revenue									700,000		$ 700,000					700,000		700,000
Related party expense																		4,300,000
Increase in accrued liabilities									500,000	400,000
Increase in cash and cash equivalents								1,000,000	40,000	300,000		500,000	1,200,000	2,100,000
Decrease in accrued compensation and benefits								2,200,000	2,300,000	2,200,000		2,500,000	2,500,000	2,500,000
Increase in pension liabilities								$ 2,200,000	2,300,000	2,200,000		$ 2,500,000	$ 2,500,000	$ 2,500,000		$ 2,300,000	$ 2,500,000	$ 2,200,000	$ 2,500,000
Increase in accrued liabilities									$ 500,000	$ 400,000
Lease Termination Adjustments
Restatement of Previously Issued Financial Statements
Increase/ (decrease) to net cash flows provided by financing activities																					(600,000)	(200,000)
Increase/ (decrease) to net cash flows provided operating activities																					$ 600,000	200,000
Fees Paid To Quinpario
Restatement of Previously Issued Financial Statements
Increase/ (decrease) to net cash flows provided by financing activities																						(4,700,000)
Increase/ (decrease) to net cash flows provided operating activities																						$ 4,700,000

Restatement of Previously Issued Financial Statements - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 05, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 94,100	$ 6,198	$ 9,358	$ 18,406	$ 8,559	$ 36,206	$ 41,206	$ 56,961	$ 29,010
Restricted cash		7,901	5,867	5,020	4,701	7,648	8,441	29,910	10,421
Accounts receivable, net		261,400	260,438	266,660	278,064	270,812	253,986	262,260	238,680
Inventories, net		19,047	16,996	16,735	16,321	16,220	16,122	15,088	13,519
Prepaid expenses and other current assets		23,663	22,617	23,713	25,252	24,937	26,933	24,108	27,520
Total current assets		318,925	315,318	330,740	332,897	355,823	346,688	388,327	319,150
Property, plant and equipment, net of accumulated depreciation of $154,060		113,637	119,469	125,018	129,621	132,986	131,156	135,585	132,870
Goodwill		359,771	611,982	708,246	708,285	708,258	749,762	748,708	747,325	$ 747,325
Intangible assets, net		342,443	357,114	372,004	383,680	395,020	384,895	405,457	424,251
Deferred income tax assets		12,032	15,950	16,301	16,322	16,345	15,606	16,076	9,967
Other noncurrent assets		17,889	13,557	14,714	17,667	19,391	21,650	21,276	18,490
Total assets		1,258,324	1,526,742	1,663,521	1,689,199	1,627,823	1,649,757	1,715,429	1,652,053
Current liabilities
Accounts payables		86,167	93,815	99,089	90,924	99,853	90,673	86,304	77,194
Related party payables		1,740	10,207	11,671	13,812	15,363	15,792	17,023	14,172
Income tax payable		352		2,525	4,898	1,996	5,422	5,385	6,967
Accrued liabilities		121,553	104,097	102,265	105,018	107,355	81,259	79,851	70,217
Accrued compensation and benefits		48,574	49,636	50,218	55,745	52,211	52,464	48,409	47,279
Accrued interest		48,769	24,602	48,935	23,928	49,071	23,845	48,885	23,795
Customer deposits		27,765	30,161	28,914	28,410	34,235	39,419	36,997	36,542
Deferred revenue		16,282	17,368	19,428	19,966	16,504	18,084	20,654	15,933
Obligation for claim payment		39,156	43,267	41,496	46,063	56,002	52,889	94,233	56,554
Current portion of finance lease liabilities, ASC 840						17,498
Current portion of long-term debts		36,490	37,237	38,929	32,821	29,237	20,062	19,799	21,170
Total current liabilities		465,981	452,166	486,811	464,914	479,325	415,835	474,108	384,608
Long-term debt, net of current maturities		1,398,385	1,367,583	1,331,898	1,336,152	1,306,423	1,307,884	1,278,197	1,277,029
Finance lease liabilities, net of current portion, ASC 840						26,738
Pension liabilities		25,681	28,850	27,141	27,730	27,641	32,887	32,967	28,540
Deferred income tax liabilities		7,996	12,679	15,898	12,441	11,214	2,115	5,016	5,478
Long-term income tax liabilities		2,806	2,892	2,842	3,158	3,024	3,470	3,470	3,470
Other long-term liabilities		6,962	7,866	7,882	6,747	14,717	15,307	16,208	13,879
Total liabilities		2,001,365	1,967,856	1,972,534	1,956,663	1,869,082	1,800,443	1,835,159	1,739,478
Commitments and Contingencies (Note 14)
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 (including the 4,570,734 shares returned to the Company in the first quarter of 2020 in connection with the Appraisal Action)		15	15	15	15	15	15	15	15
Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; 4,569,233 shares issued and outstanding		1	1	1	1	1	1	1	1
Additional paid in capital		445,452	445,452	445,452	445,452	445,452	445,452	445,452	445,452
Less: common stock held in treasury, at cost; 2,549,185 shares		(10,949)	(10,949)	(10,949)	(10,342)	(10,342)	(5,148)	(3,728)	(249)
Equity-based compensation		49,336	48,411	47,190	44,529	41,731	38,601	36,980	35,044
Accumulated deficit		(1,211,508)	(907,422)	(776,134)	(734,563)	(702,392)	(615,058)	(586,253)	(555,744)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(7,329)	(7,644)	(5,319)	(3,031)	(6,423)	(3,858)	(1,366)	(487)
Unrealized pension actuarial losses, net of tax		(8,059)	(8,978)	(9,269)	(9,525)	(9,301)	(10,691)	(10,831)	(11,457)
Total accumulated other comprehensive loss		(15,388)	(16,622)	(14,588)	(12,556)	(15,724)	(14,549)	(12,197)	(11,944)
Total stockholders’ deficit		(743,041)	(441,114)	(309,013)	(267,464)	(241,259)	(150,686)	(119,730)	(87,425)	$ (51,796)	$ (339,901)
Total liabilities and stockholders’ deficit		$ 1,258,324	1,526,742	1,663,521	1,689,199	1,627,823	1,649,757	1,715,429	1,652,053
As previously reported
Current assets
Cash and cash equivalents			10,312	18,449	8,262	25,615	40,692	55,783	26,882
Restricted cash			4,913	4,977	4,998	18,239	8,955	31,088	12,549
Accounts receivable, net			260,438	266,660	278,064	270,812	253,986	262,260	238,680
Inventories, net			16,996	16,735	16,321	16,220	16,122	15,088	13,519
Prepaid expenses and other current assets			22,695	23,791	25,330	25,015	26,933	24,108	27,520
Total current assets			315,396	330,818	332,975	355,901	346,688	388,327	319,150
Property, plant and equipment, net of accumulated depreciation of $154,060			119,469	125,018	129,621	132,986	131,156	135,585	132,870
Goodwill			609,458	708,246	708,285	708,258	749,762	748,708	747,325
Intangible assets, net			374,445	387,775	397,412	407,021	398,280	419,725	438,929
Deferred income tax assets			15,830	16,181	16,202	16,225	14,810	15,280	9,171
Other noncurrent assets			13,557	14,714	17,667	19,391	21,650	21,276	18,490
Total assets			1,541,507	1,679,250	1,702,889	1,639,782	1,662,346	1,728,901	1,665,935
Current liabilities
Accounts payables			93,815	99,089	90,924	99,853	90,673	86,304	77,194
Related party payables			274	238	6,184	7,735	10,756	11,987	14,172
Income tax payable				2,525	4,898	1,996	5,422	5,385	6,967
Accrued liabilities			60,994	59,487	63,138	66,008	41,397	40,737	31,805
Accrued compensation and benefits			51,819	52,493	57,961	54,583	54,975	50,905	49,738
Accrued interest			24,602	48,935	23,928	49,071	23,845	48,885	23,795
Customer deposits			30,161	28,914	28,410	34,235	39,419	36,997	36,542
Deferred revenue			17,368	19,428	19,966	16,504	18,084	20,654	15,933
Obligation for claim payment			43,267	41,496	46,063	56,002	52,889	94,233	56,554
Current portion of finance lease liabilities, ASC 840						17,498
Current portion of long-term debts			37,237	38,929	32,821	29,237	20,062	16,299	21,170
Total current liabilities			401,313	434,875	417,622	432,722	373,448	428,954	348,655
Long-term debt, net of current maturities			1,367,583	1,331,898	1,336,152	1,306,423	1,307,884	1,281,697	1,277,029
Finance lease liabilities, net of current portion, ASC 840						26,738
Pension liabilities			26,667	24,866	25,514	25,269	30,376	30,471	26,081
Deferred income tax liabilities			12,677	15,896	12,439	11,212	2,115	5,016	5,478
Long-term income tax liabilities			2,892	2,842	3,158	3,024	3,470	3,470	3,470
Other long-term liabilities			7,866	7,882	6,747	15,400	15,307	16,208	13,879
Total liabilities			1,914,818	1,918,321	1,907,153	1,820,788	1,755,545	1,791,009	1,701,066
Commitments and Contingencies (Note 14)
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 (including the 4,570,734 shares returned to the Company in the first quarter of 2020 in connection with the Appraisal Action)			15	15	15	15	15	15	15
Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; 4,569,233 shares issued and outstanding			1	1	1	1	1	1	1
Additional paid in capital			482,018	482,018	482,018	482,018	482,018	482,018	482,018
Less: common stock held in treasury, at cost; 2,549,185 shares			(10,949)	(10,949)	(10,342)	(10,342)	(5,148)	(3,728)	(249)
Equity-based compensation			48,411	47,190	44,529	41,731	38,601	36,980	35,044
Accumulated deficit			(876,043)	(742,616)	(707,787)	(678,563)	(594,162)	(565,222)	(540,041)
Accumulated other comprehensive loss:
Foreign currency translation adjustment			(7,786)	(5,461)	(3,173)	(6,565)	(3,833)	(1,341)	(462)
Unrealized pension actuarial losses, net of tax			(8,978)	(9,269)	(9,525)	(9,301)	(10,691)	(10,831)	(11,457)
Total accumulated other comprehensive loss			(16,764)	(14,730)	(12,698)	(15,866)	(14,524)	(12,172)	(11,919)
Total stockholders’ deficit			(373,311)	(239,071)	(204,264)	(181,006)	(93,199)	(62,108)	(35,131)
Total liabilities and stockholders’ deficit			1,541,507	1,679,250	1,702,889	1,639,782	1,662,346	1,728,901	1,665,935
Adjustment
Current assets
Cash and cash equivalents			(954)	(43)	297	10,591	514	1,178	2,128
Restricted cash			954	43	(297)	(10,591)	(514)	(1,178)	(2,128)
Prepaid expenses and other current assets			(78)	(78)	(78)	(78)
Total current assets			(78)	(78)	(78)	(78)
Goodwill			2,524
Intangible assets, net			(17,331)	(15,771)	(13,732)	(12,001)	(13,385)	(14,268)	(14,678)
Deferred income tax assets			120	120	120	120	796	796	796
Total assets			(14,765)	(15,729)	(13,690)	(11,959)	(12,589)	(13,472)	(13,882)
Current liabilities
Related party payables			9,933	11,433	7,628	7,628	5,036	5,036
Accrued liabilities			43,103	42,778	41,880	41,347	39,862	39,114	38,412
Accrued compensation and benefits			(2,183)	(2,275)	(2,216)	(2,372)	(2,511)	(2,496)	(2,459)
Current portion of long-term debts								3,500
Total current liabilities			50,853	51,936	47,292	46,603	42,387	45,154	35,953
Long-term debt, net of current maturities								(3,500)
Pension liabilities			2,183	2,275	2,216	2,372	2,511	2,496	2,459
Deferred income tax liabilities			2	2	2	2
Other long-term liabilities						(683)
Total liabilities			53,038	54,213	49,510	48,294	44,898	44,150	38,412
Commitments and Contingencies (Note 14)
Stockholders' equity (deficit)
Additional paid in capital			(36,566)	(36,566)	(36,566)	(36,566)	(36,566)	(36,566)	(36,566)
Accumulated deficit			(31,379)	(33,518)	(26,776)	(23,829)	(20,896)	(21,031)	(15,703)
Accumulated other comprehensive loss:
Foreign currency translation adjustment			142	142	142	142	(25)	(25)	(25)
Total accumulated other comprehensive loss			142	142	142	142	(25)	(25)	(25)
Total stockholders’ deficit			(67,803)	(69,942)	(63,200)	(60,253)	(57,487)	(57,622)	(52,294)
Total liabilities and stockholders’ deficit			$ (14,765)	$ (15,729)	$ (13,690)	$ (11,959)	$ (12,589)	$ (13,472)	$ (13,882)

Restatement of Previously Issued Financial Statements - Consolidated Balance Sheets - Parentheticals (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts		$ 4,975	$ 4,359
Accumulated depreciation on property, plant and equipment		$ 176,995	$ 154,060
Common stock, par value (in dollars per share)		$ 0.0001	$ 0.0001	$ 0.0001
Common stock shares authorized		1,600,000,000	1,600,000,000
Common stock, shares issued		153,638,836	152,692,140
Common stock, shares outstanding		150,851,689	150,142,955
Common stock, shares returned	4,570,734
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		4,294,233	4,569,233
Preferred stock, shares outstanding		4,294,233	4,569,233
Common stock held in treasury at cost (in shares)		2,787,147	2,549,185

Restatement of Previously Issued Financial Statements - Consolidated Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue	$ 393,586	$ 373,545	$ 390,849	$ 404,357	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 795,206	$ 803,549	$ 1,168,751	$ 1,186,579	$ 1,562,337	$ 1,586,222	$ 1,145,891
Cost of revenue (exclusive of depreciation and amortization)	314,858	295,445	303,831	310,601	306,654	296,685	315,167	294,897	614,432	610,064	909,877	906,749	1,224,735	1,213,403	827,544
Selling, general and administrative expenses (exclusive of depreciation and amortization)	49,678	48,347	51,162	49,677	48,114	44,897	46,378	45,519	100,839	91,897	149,186	136,794	198,864	184,908	220,955
Depreciation and amortization	24,421	25,079	24,779	26,624	33,684	33,410	34,744	36,239	51,403	70,982	76,482	104,393	100,903	138,077	98,890
Impairment of goodwill and other intangible assets	252,399	97,158			48,127						97,158		349,557	48,127	69,437
Related party expense	1,742	1,430	5,331	998	3,664	775	6,783	1,181	6,329	7,964	7,759	8,739	9,501	12,403	33,431
Operating loss	(249,512)	(93,914)	5,746	16,457	(40,600)	7,263	7,310	15,331	22,203	22,642	(71,711)	29,904	(321,223)	(10,696)	(104,366)
Other expense (income), net:
Interest expense, net	43,216	40,573	39,959	39,701	38,999	39,087	39,229	38,676	79,660	77,905	120,235	116,992	163,449	155,991	129,676
Debt modification and extinguishment costs			1,404			1,067			1,404		1,404	1,067	1,404	1,067	35,512
Sundry expense (income), net	600	(165)	1,311	(2,715)	(905)	2,283	2,122	(229)	(1,404)	1,893	(1,569)	4,176	969	(3,271)	2,295
Other expense (income), net	10,003	406	2,527	1,493	2,567	(1,069)	(907)	(3,621)	4,020	(4,528)	4,424	(5,597)	14,429	(3,030)	(1,297)
Net loss before income taxes	(302,131)	(135,058)	(36,833)	(27,452)	(83,071)	(29,539)	(28,890)	(19,953)	(64,285)	(48,842)	(199,343)	(78,382)	(501,474)	(161,453)	(270,552)
Income tax (expense) benefit	(1,953)	3,769	(4,738)	(4,720)	(3,442)	733	(1,619)	(4,025)	(9,458)	(5,644)	(5,689)	(4,911)	(7,642)	(8,353)	61,068
Net loss	(304,084)	(131,289)	(41,571)	(32,172)	(86,513)	(28,806)	(30,509)	(23,978)	(73,743)	(54,486)	(205,032)	(83,293)	(509,116)	(169,806)	(209,484)
Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature													0	0	(16,375)
Cumulative dividends for Series A Preferred Stock	(597)	(884)	(914)	(914)	(914)	(914)	(914)	(914)	(1,828)	(1,828)	(2,712)	(2,742)	(3,309)	(3,655)	(2,489)
Net loss attributable to common stockholders	$ (304,681)	$ (132,173)	$ (42,485)	$ (33,086)	$ (87,427)	$ (29,720)	$ (31,423)	$ (24,892)	(75,571)	(56,314)	(207,744)	(86,035)	$ (512,425)	$ (173,461)	$ (228,348)
Loss per share - Basic and diluted (in dollars per share)	$ (2.09)	$ (0.91)	$ (0.29)	$ (0.23)	$ (0.59)	$ (0.20)	$ (0.21)	$ (0.17)					$ (3.52)	$ (1.17)	$ (2.18)
As previously reported
Revenue		$ 372,917	$ 390,160	$ 403,765	$ 399,643	$ 383,030	$ 410,382	$ 393,167	793,924	803,549	1,166,841	1,186,579		$ 1,586,222	$ 1,152,324
Cost of revenue (exclusive of depreciation and amortization)		291,222	298,006	306,882	306,192	295,936	313,954	293,792	604,888	607,746	896,110	903,682		1,209,874	829,143
Selling, general and administrative expenses (exclusive of depreciation and amortization)		50,372	51,564	49,949	47,420	44,913	46,723	45,595	101,513	92,318	151,884	137,231		184,651	220,955
Depreciation and amortization		27,114	27,191	28,020	36,057	35,041	36,368	38,019	55,211	74,386	82,326	109,428		145,485	98,890
Impairment of goodwill and other intangible assets		99,682			48,127						99,682			48,127	69,437
Related party expense		1,405	1,055	994	1,068	759	1,402	1,105	2,049	2,507	3,454	3,267		4,334	33,431
Operating loss		(96,878)	12,344	17,920	(39,221)	6,381	11,935	14,656	30,263	26,592	(66,615)	32,971		(6,249)	(99,532)
Other expense (income), net:
Interest expense, net		39,747	39,132	38,899	38,212	38,339	38,527	38,017	78,031	76,544	117,778	114,883		153,095	128,489
Debt modification and extinguishment costs			1,404			1,067			1,404		1,404	1,067		1,067	35,512
Sundry expense (income), net		10	1,493	(2,531)	(1,689)	2,571	2,325	64	(1,038)	2,389	(1,028)	4,961		(3,271)	2,295
Other expense (income), net		581	2,709	1,677	1,783	(781)	(704)	(3,328)	4,386	(4,032)	4,965	(4,813)		(3,030)	(1,297)
Net loss before income taxes		(137,196)	(29,408)	(25,187)	(80,905)	(29,673)	(23,563)	(19,969)	(54,596)	(43,531)	(191,790)	(73,205)		(154,110)	(264,531)
Income tax (expense) benefit		3,769	(4,738)	(4,720)	(3,496)	733	(1,619)	(4,025)	(9,458)	(5,644)	(5,689)	(4,911)		(8,407)	60,246
Net loss		(133,427)	(34,146)	(29,907)	(84,401)	(28,940)	(25,182)	(23,994)	(64,054)	(49,175)	(197,479)	(78,116)		(162,517)	(204,285)
Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature															(16,375)
Cumulative dividends for Series A Preferred Stock		(884)	(914)	(914)	(914)	(914)	(914)	(914)	(1,828)	(1,828)	(2,712)	(2,742)		(3,655)	(2,489)
Net loss attributable to common stockholders		(134,311)	(35,060)	(30,821)	(85,315)	(29,854)	(26,096)	(24,908)	(65,882)	(51,003)	(200,191)	(80,858)		$ (166,172)	$ (223,149)
Loss per share - Basic and diluted (in dollars per share)														$ (1.09)	$ (2.08)
Adjustment
Revenue		628	689	592					1,282		1,910				$ (6,433)
Cost of revenue (exclusive of depreciation and amortization)		4,223	5,825	3,719	462	749	1,213	1,105	9,544	2,318	13,767	3,067		$ 3,529	(1,599)
Selling, general and administrative expenses (exclusive of depreciation and amortization)		(2,025)	(402)	(272)	694	(16)	(345)	(76)	(674)	(421)	(2,698)	(437)		257
Depreciation and amortization		(2,035)	(2,412)	(1,396)	(2,373)	(1,631)	(1,624)	(1,780)	(3,808)	(3,404)	(5,844)	(5,035)		(7,408)
Impairment of goodwill and other intangible assets		(2,524)									(2,524)
Related party expense		25	4,276	4	2,596	16	5,381	76	4,280	5,457	4,305	5,472		8,069
Operating loss		2,964	(6,598)	(1,463)	(1,379)	882	(4,625)	675	(8,060)	(3,950)	(5,096)	(3,067)		(4,447)	(4,834)
Other expense (income), net:
Interest expense, net		826	827	802	787	748	702	659	1,629	1,361	2,457	2,109		2,896	1,187
Sundry expense (income), net		(175)	(182)	(184)	784	(288)	(203)	(293)	(366)	(496)	(541)	(785)
Other expense (income), net		(175)	(182)	(184)	784	(288)	(203)	(293)	(366)	(496)	(541)	(784)
Net loss before income taxes		2,138	(7,425)	(2,265)	(2,166)	134	(5,327)	16	(9,689)	(5,311)	(7,553)	(5,177)		(7,343)	(6,021)
Income tax (expense) benefit					54									54	822
Net loss		2,138	(7,425)	(2,265)	(2,112)	134	(5,327)	16	(9,689)	(5,311)	(7,553)	(5,177)		(7,289)	(5,199)
Net loss attributable to common stockholders		$ 2,138	$ (7,425)	$ (2,265)	$ (2,112)	$ 134	$ (5,327)	$ 16	$ (9,689)	$ (5,311)	$ (7,553)	$ (5,177)		$ (7,289)	$ (5,199)
Loss per share - Basic and diluted (in dollars per share)														$ (0.08)	$ (0.10)

Restatement of Previously Issued Financial Statements - Consolidated Statements of Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Comprehensive Loss
Net Loss	$ (304,084)	$ (131,289)	$ (41,571)	$ (32,172)	$ (86,513)	$ (28,806)	$ (30,509)	$ (23,978)	$ (73,743)	$ (54,486)	$ (205,032)	$ (83,293)	$ (509,116)	$ (169,806)	$ (209,484)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		(2,325)	(2,288)	3,392	(2,566)	(2,492)	(879)	(268)	1,104	(1,147)	(1,221)	(3,639)	(906)	(6,204)	3,328
Unrealized pension actuarial gains (losses), net of tax		291	256	(224)	1,390	140	626	(403)	32	223	323	363	1,242	1,753	1,285
Total other comprehensive loss, net of tax		(133,323)	(43,603)	(29,004)	(87,689)	(31,158)	(30,762)	(24,649)	(72,607)	(55,410)	(205,930)	(86,569)	$ (508,780)	(174,257)	(204,871)
As previously reported
Consolidated Statements of Comprehensive Loss
Net Loss		(133,427)	(34,146)	(29,907)	(84,401)	(28,940)	(25,182)	(23,994)	(64,054)	(49,175)	(197,479)	(78,116)		(162,517)	(204,285)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		(2,325)	(2,288)	3,392	(2,733)	(2,492)	(879)	(268)	1,104	(1,147)	(1,221)	(3,639)		(6,371)	3,353
Unrealized pension actuarial gains (losses), net of tax		291	256	(224)	1,390	140	626	(403)	32	223	323	363		1,753	1,285
Total other comprehensive loss, net of tax		(135,461)	(36,178)	(26,739)	(85,744)	(31,292)	(25,435)	(24,665)	(62,918)	(50,099)	(198,377)	(81,392)		(167,135)	(199,647)
Adjustment
Consolidated Statements of Comprehensive Loss
Net Loss		2,138	(7,425)	(2,265)	(2,112)	134	(5,327)	16	(9,689)	(5,311)	(7,553)	(5,177)		(7,289)	(5,199)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments					167									167	(25)
Total other comprehensive loss, net of tax		$ 2,138	$ (7,425)	$ (2,265)	$ (1,945)	$ 134	$ (5,327)	$ 16	$ (9,689)	$ (5,311)	$ (7,553)	$ (5,177)		$ (7,122)	$ (5,224)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Restatement of Previously Issued Financial Statements - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net loss				$ (32,172)				$ (23,978)	$ (73,743)	$ (54,486)	$ (205,032)	$ (83,293)	$ (509,116)	$ (169,806)	$ (209,484)
Adjustments to reconcile net loss
Depreciation and amortization	$ 24,421	$ 25,079	$ 24,779	26,624	$ 33,684	$ 33,410	$ 34,744	36,239	51,403	70,982	76,482	104,393	100,903	138,077	98,890
Fees paid in stock															28,573
HGM contract termination fee paid in stock															10,000
Original issue discount and debt issuance cost amortization				2,852				2,595	5,749	5,272	8,730	8,062	11,777	10,913	12,280
Debt modification and extinguishment costs									1,049		1,049	103	1,049	103	34,459
Impairment of goodwill and other intangible assets	252,399	97,158			48,127						97,158		349,557	48,127	69,437
Provision for doubtful accounts				800				481	3,334	1,857	4,402	2,470	4,304	2,767	500
Deferred income tax provision				1,076				835	4,623	705	1,632	(3,689)	1,093	3,220	(67,545)
Share-based compensation expense				2,798				959	5,459	2,895	6,903	4,516	7,827	7,647	6,743
Foreign currency remeasurement				35				(323)	288	(1,156)	(173)	(2,040)	(511)	(1,180)	1,382
Loss (gain) on sale of assets				54				279	85	1,395	123	2,048	556	2,687	556
Fair value adjustment for interest rate swap				1,677				(3,328)	4,385	(4,675)	4,965	(5,456)	4,337	(2,540)	(1,297)
Additions to outsource contract costs				(2,434)				(492)	(2,860)	(1,377)	(3,130)	(2,360)	(1,285)	(4,009)	(10,992)
Change in operating assets and liabilities, net of effect from acquisitions
Accounts receivable				(8,742)				(10,875)	624	(19,813)	3,501	(6,374)	4,410	(19,319)	(4,832)
Prepaid expenses and other assets				(632)				(5,567)	1,260	(1,603)	2,377	(5,770)	(4,825)	(2,820)	1,029
Accounts payable and accrued liabilities				(33,033)				(18,205)	(12,595)	42,038	(41,146)	(21,348)	(19,588)	8,815	77,171
Related party payables				(1,551)				(273)	(3,899)	2,578	(5,198)	1,347	(14,339)	918	4,907
Net cash provided by (used in) operating activities				(42,648)				(21,653)	(14,838)	44,612	(47,357)	(7,391)	(63,851)	23,600	51,777
Cash flows from investing activities
Purchase of property, plant and equipment				(5,572)				(5,957)	(9,072)	(10,244)	(10,797)	(14,077)	(14,360)	(20,072)	(14,440)
Additions to internally developed software				(1,879)				(1,092)	(4,007)	(2,115)	(5,074)	(3,080)	(6,182)	(7,438)	(7,843)
Cash acquired in Quinpario reverse merger															91
Cash paid in acquisition, net of cash received									(5,000)	(4,145)	(5,000)	(6,513)	(5,000)	(34,810)	(423,797)
Proceeds from sale of assets				7				2	20	1,014	360	1,095	360	3,568	4,607
Net cash provided by (used in) investing activities				(7,444)				(7,047)	(18,059)	(15,490)	(20,511)	(22,575)	(25,182)	(58,752)	(441,382)
Cash flows from financing activities
Change in bank overdraft															(210)
Proceeds from issuance of stock															204,417
Cash received from Quinpario, net of transaction costs															22,333
Repurchases of common stock				(2,872)					(3,480)	(3,479)	(3,480)	(4,899)	(3,480)	(7,221)	(249)
Contribution from Shareholders															20,548
Cash paid for equity issuance costs								(7,500)		(7,500)		(7,500)		(7,500)	(149)
Lease terminations				(45)				(26)	(95)	(56)	(314)	(213)	(318)	(592)	(157)
Retirement of previous credit facilities															(1,055,736)
Cash paid for debt issuance costs									(7)		(7)	(130)	(7)	(130)	(38,784)
Principal payments on finance lease obligations				(5,077)				(4,803)	(9,180)	(8,404)	(13,598)	(12,594)	(20,465)	(16,068)	(11,361)
Borrowings from senior secured revolving facility				51,000				25,000	68,000	30,000	130,500	30,000	206,500	30,000	72,600
Repayments on senior secured revolving facility				(21,000)				(25,000)	(68,000)	(30,000)	(91,500)	(30,000)	(141,500)	(30,000)	(72,500)
Proceeds from issuance of notes															977,500
Proceeds from senior secured term loans									29,850		29,850	30,000	29,850	30,000	343,000
Borrowings from other loans				6,904				1,863	14,092	2,152	21,530	3,068	39,153	11,557	3,116
Principal repayments on senior secured term loans and other loans				(10,498)				(2,947)	(21,248)	(6,043)	(32,996)	(9,053)	(53,678)	(12,651)	(27,955)
Net cash provided by (used in) financing activities				19,530				(13,413)	12,358	(23,330)	39,268	(1,321)	59,139	(2,605)	436,413
Effect of exchange rates on cash				(32)				55	111	(410)	(29)	(555)	139	122	429
Net decrease in cash and cash equivalents				(30,594)				(42,058)	(20,428)	5,382	(28,629)	(31,842)	(29,755)	(37,635)	47,237
Cash, restricted cash, and cash equivalents
Beginning of period	15,225	23,426	13,260	43,854	49,647	86,871	39,431	81,489	43,854	81,489	43,854	81,489	43,854	81,489	34,252
End of period	14,099	15,225	23,426	13,260	43,854	49,647	86,871	39,431	23,426	86,871	15,225	49,647	14,099	43,854	81,489
Supplemental cash flow data:
Income tax payments, net of refunds received				1,356				1,053	5,181	3,864	6,981	5,296	7,882	7,827	5,711
Interest paid				60,573				66,192	71,211	76,353	131,744	136,396	144,456	146,076	69,622
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements				4,097				4,432	6,778	7,787	9,352	9,318	10,732	14,920	6,973
Leasehold improvements funded by lessor										1,540		1,565		1,565	146
Issuance of common stock as consideration for Novitex															244,800
Accrued capital expenditures				809				1,101	1,083	1,144	2,388	1,994	1,402	2,820	1,621
Dividend equivalent on Series A Preferred Stock													0	0	16,375
Liability assumed of Quinpario															4,698
As previously reported
Cash flows from operating activities
Net loss				(29,907)				(23,994)	(64,054)	(49,175)	(197,479)	(78,116)		(162,517)	(204,285)
Adjustments to reconcile net loss
Depreciation and amortization		27,114	27,191	28,020	36,057	35,041	36,368	38,019	55,211	74,386	82,326	109,428		145,485	98,890
Fees paid in stock															23,875
HGM contract termination fee paid in stock															10,000
Original issue discount and debt issuance cost amortization				2,852				2,595	5,749	5,272	8,730	8,062		10,913	12,280
Debt modification and extinguishment costs									1,049		1,049
Impairment of goodwill and other intangible assets		99,682			48,127						99,682			48,127	69,437
Provision for doubtful accounts				800				481	3,334	1,857	4,402	2,470		2,767	500
Deferred income tax provision				1,076				835	4,623	705	1,632	(3,689)		3,352	(66,723)
Share-based compensation expense				2,798				959	5,459	2,895	6,903	4,516		7,647	6,743
Foreign currency remeasurement				35				(323)	288	(1,156)	(173)	(2,040)		(1,180)	1,382
Loss (gain) on sale of assets				9				253	(10)	1,340	(191)	1,835		2,095	399
Fair value adjustment for interest rate swap				1,677				(3,328)	4,385	(4,675)	4,965	(5,456)		(2,540)	(1,297)
Change in operating assets and liabilities, net of effect from acquisitions
Accounts receivable				(8,742)				(10,875)	624	(19,813)	3,501	(6,374)		(19,319)	(4,832)
Prepaid expenses and other assets				(632)				(5,567)	1,260	(1,603)	2,377	(5,770)		(2,820)	2,628
Accounts payable and accrued liabilities				(33,574)				(18,864)	(14,991)	40,677	(43,861)	(23,457)		5,157	69,551
Related party payables				(1,551)				(273)	(7,703)	(2,458)	(7,502)	(3,689)		(6,710)	4,907
Net cash provided by (used in) operating activities				(37,139)				(20,082)	(4,776)	48,252	(33,639)	(2,280)		30,457	23,455
Cash flows from investing activities
Purchase of property, plant and equipment				(5,572)				(5,957)	(9,072)	(10,244)	(10,797)	(14,077)		(20,072)	(14,440)
Additions to internally developed software				(1,879)				(1,092)	(4,007)	(2,115)	(5,074)	(3,080)		(7,438)	(7,843)
Additions to outsourcing contract costs				(5,561)				(1,596)	(10,440)	(3,695)	(14,304)	(5,427)		(7,552)	(10,992)
Cash acquired in Quinpario reverse merger															91
Cash paid in acquisition, net of cash received									(5,000)	(4,145)	(5,000)	(6,513)		(34,810)	(423,797)
Proceeds from sale of assets				7				2	20	1,014	360	1,095		3,568	4,607
Net cash provided by (used in) investing activities				(13,005)				(8,643)	(28,499)	(19,185)	(34,815)	(28,002)		(66,304)	(452,374)
Cash flows from financing activities
Change in bank overdraft															(210)
Loss on extinguishment of debt														1,067	35,512
Proceeds from issuance of stock															204,417
Cash received from Quinpario, net of transaction costs															27,031
Repurchases of common stock				(2,872)					(3,480)	(3,479)	(3,480)	(4,899)		(7,221)	(249)
Contribution from Shareholders															20,548
Cash paid for equity issuance costs								(7,500)		(7,500)		(7,500)		(7,500)	(149)
Retirement of previous credit facilities															(1,055,736)
Cash paid for debt issuance costs									(362)		(362)	(1,094)		(1,094)	(39,837)
Principal payments on finance lease obligations				(5,077)				(4,803)	(9,180)	(8,404)	(13,598)	(12,594)		(16,068)	(11,361)
Borrowings from senior secured revolving facility				51,000				25,000	68,000	30,000	130,500	30,000		30,000	72,600
Repayments on senior secured revolving facility				(21,000)				(25,000)	(68,000)	(30,000)	(91,500)	(30,000)		(30,000)	(72,500)
Proceeds from issuance of notes															977,500
Proceeds from senior secured term loans									29,850		29,850	30,000		30,000	343,000
Borrowings from other loans				566				1,863	1,544	2,152	1,728	3,068		11,557	3,116
Principal repayments on senior secured term loans and other loans				(4,153)				(2,947)	(8,417)	(6,043)	(12,922)	(9,053)		(12,651)	(27,955)
Net cash provided by (used in) financing activities				19,582				(13,387)	12,736	(23,274)	39,854	(1,005)		(1,910)	475,727
Effect of exchange rates on cash				(32)				55	111	(410)	(29)	(555)		122	429
Net decrease in cash and cash equivalents				(30,594)				(42,057)	(20,428)	5,383	(28,629)	(31,842)		(37,635)	47,237
Cash, restricted cash, and cash equivalents
Beginning of period	$ 15,225	23,426	13,260	43,854	49,647	86,872	39,432	81,489	43,854	81,489	43,854	81,489	$ 43,854	81,489	34,252
End of period		15,225	23,426	13,260	43,854	49,647	86,872	39,432	23,426	86,872	15,225	49,647		43,854	81,489
Supplemental cash flow data:
Income tax payments, net of refunds received				1,356				1,053	5,181	3,864	6,981	5,296		7,827	5,711
Interest paid				60,573				66,192	71,240	76,353	131,773	136,396		146,076	69,622
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements				4,097				4,432	6,778	7,787	9,352	9,318		14,920	6,973
Leasehold improvements funded by lessor										1,540		1,565		1,565	146
Issuance of common stock as consideration for Novitex															244,800
Accrued capital expenditures				809				1,101	1,083	1,144	1,083	1,994		2,820	1,621
Dividend equivalent on Series A Preferred Stock															16,375
Liability assumed of Quinpario															4,672
Adjustment
Cash flows from operating activities
Net loss				(2,265)				16	(9,689)	(5,311)	(7,553)	(5,177)		(7,289)	(5,199)
Adjustments to reconcile net loss
Depreciation and amortization		(2,035)	$ (2,412)	(1,396)	$ (2,373)	(1,631)	(1,624)	(1,780)	(3,808)	(3,404)	(5,844)	(5,035)		(7,408)
Fees paid in stock															4,698
Debt modification and extinguishment costs									400			103		103	34,459
Impairment of goodwill and other intangible assets		$ (2,524)									(2,524)
Deferred income tax provision														(132)	(822)
Loss (gain) on sale of assets				45				26	95	55	314	213		592	157
Additions to outsource contract costs				(2,434)				(492)	(2,860)	(1,377)	(3,130)	(2,360)		(4,009)	(10,992)
Change in operating assets and liabilities, net of effect from acquisitions
Prepaid expenses and other assets															(1,599)
Accounts payable and accrued liabilities				541				659	2,396	1,361	2,715	2,109		3,658	7,620
Related party payables									3,804	5,036	2,304	5,036		7,628
Net cash provided by (used in) operating activities				(5,509)				(1,571)	(10,062)	(3,640)	(13,718)	(5,111)		(6,857)	28,322
Cash flows from investing activities
Additions to outsourcing contract costs				5,561				1,596	10,440	3,695	14,304	5,427		7,552	10,992
Net cash provided by (used in) investing activities				5,561				1,596	10,440	3,695	14,304	5,427		7,552	10,992
Cash flows from financing activities
Loss on extinguishment of debt														(1,067)	(35,512)
Cash received from Quinpario, net of transaction costs															(4,698)
Lease terminations				(45)				(26)	(95)	(56)	(314)	(213)		(592)	(157)
Cash paid for debt issuance costs									355		355	964		964	1,053
Borrowings from other loans				6,338					12,548		19,802
Principal repayments on senior secured term loans and other loans				(6,345)					(12,831)		(20,074)
Net cash provided by (used in) financing activities				$ (52)				(26)	(378)	(56)	(586)	$ (316)		$ (695)	(39,314)
Net decrease in cash and cash equivalents								(1)		(1)
Cash, restricted cash, and cash equivalents
Beginning of period						$ (1)	(1)
End of period							$ (1)	$ (1)		$ (1)
Supplemental cash flow data:
Interest paid									$ (29)		(29)
Noncash investing and financing activities:
Accrued capital expenditures											$ 1,305
Liability assumed of Quinpario															$ 26

Business Combinations - Asterion (Details) - USD ($) $ in Thousands	Apr. 10, 2018	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Assets Acquired:
Goodwill		$ 359,771	$ 611,982	$ 708,246	$ 708,285	$ 708,258	$ 749,762	$ 748,708	$ 747,325	$ 747,325
Asterion
Business Combinations and Acquisitions
Purchase price	$ 19,500
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 liabilities	(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, 2019	Dec. 31, 2018
Intangible Assets
Revenue since acquisition date		$ 73,900	$ 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, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Accounts Receivable.
Billed receivables	$ 222,168				$ 226,252
Unbilled receivables	34,135				39,498
Other	10,072				9,421
Less: Allowance for doubtful accounts	(4,975)				(4,359)
Accounts Receivable, net	$ 261,400	$ 260,438	$ 266,660	$ 278,064	$ 270,812	$ 253,986	$ 262,260	$ 238,680

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Prepaid Expenses and Other Current Assets
Prepaids	$ 23,243				$ 24,712
Deposits	420				225
Prepaid expenses and other current assets	$ 23,663	$ 22,617	$ 23,713	$ 25,252	$ 24,937	$ 26,933	$ 24,108	$ 27,520

Leases - Restated (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Restated (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Lessee, Lease, Description [Line Items]
Total assets	$ 1,258,324	$ 1,526,742	$ 1,663,521	$ 1,689,199		$ 1,627,823	$ 1,649,757	$ 1,715,429	$ 1,652,053
Total current liabilities	465,981	452,166	486,811	464,914		479,325	415,835	474,108	384,608
Total long-term liabilities	$ 2,001,365	1,967,856	1,972,534	1,956,663		1,869,082	1,800,443	1,835,159	1,739,478
Adjustment
Lessee, Lease, Description [Line Items]
Total assets		(14,765)	(15,729)	(13,690)		(11,959)	(12,589)	(13,472)	(13,882)
Total current liabilities		50,853	51,936	47,292		46,603	42,387	45,154	35,953
Total long-term liabilities		$ 53,038	$ 54,213	$ 49,510		48,294	$ 44,898	$ 44,150	$ 38,412
ASU 2016-02
Lessee, Lease, Description [Line Items]
ASU adoption, prior periods not restated	true
Total assets					$ 1,732,037	1,627,823
Total current liabilities					505,010	479,325
Total long-term liabilities					1,468,785	$ 1,389,757
ASU 2016-02 \| Adjustment
Lessee, Lease, Description [Line Items]
Total assets					104,214
Total current liabilities					25,685
Total long-term liabilities					$ 79,028

Leases - Balance Sheet Location (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Leases
Operating lease right-of-use assets, net	$ 93,627	$ 93,352	$ 96,498	$ 100,727
Current portion of operating lease liabilities	25,345	26,604	27,444	27,368
Operating lease liabilities, net of current portion	73,282	71,661	74,290	78,290
Finance Lease
Finance lease right-of-use asset, net	$ 30,835
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	US_GAAP:PropertyPlantAndEquipment
Current portion of finance lease liabilities	$ 13,788	15,172	15,897	15,961	$ 15,926	$ 16,568	$ 14,785
Finance lease liabilities, net of current portion	$ 20,272	$ 24,159	$ 25,772	$ 27,231	$ 22,945	$ 25,193	$ 26,474

Leases - Other Information (Details) $ in Millions	12 Months Ended
Leases - Other Information (Details) $ in Millions	Dec. 31, 2019 USD ($)
Leases
Weighted-average remaining lease term of operating leases	4 years 9 months 18 days
Weighted-average remaining lease term of finance leases	3 years 2 months 12 days
Weighted-average discount rate for operating leases	10.50%
Weighted-average discount rate for finance leases	9.10%
Interest on financing lease liabilities	$ 3.3
Amortization expense on finance lease right-of-use assets	$ 15.1

Leases - Maturities of Operating Lease Liabilities - ASC 842 (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Maturities of operating lease liabilities:
2020	$ 33,315
2021	26,210
2022	20,589
2023	15,348
2024	11,606
2025 and thereafter	17,356
Total operating lease payments	124,424
Less: Imputed interest	(25,797)
Present value of lease liabilities	98,627
Maturities of finance lease liabilities
2020	16,282
2021	10,652
2022	5,696
2023	2,941
2024	2,632
2025 and thereafter	1,554
Total finance lease payments	39,757
Less: imputed interest	(5,697)
Present value of finance lease liabilities	$ 34,060

Leases - Future Minimum Payments Due Under Non‐Cancelable Leases - ASC 840 (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Future minimum payments due under Operating Leases:
2019	$ 38,057
2020	29,346
2021	22,239
2022	16,782
2023	12,302
2024 and thereafter	18,874
Total lease payments	137,600
Future minimum payments due under Finance Leases
2019	20,080
2020	11,851
2021	9,018
2022	4,169
2023	2,244
2024 and thereafter	3,617
Total minimum lease payments	50,979
Less: imputed 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 finance leases	$ 26,738

Leases - Rental Expenses (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Rental Expenses (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Rental expenses - ASC 840
Rent expense for operating leases under ASC 840		$ 83.8	$ 60.0
Rental expenses - ASC 842
Rental expense on operating leases under ASC 842	$ 77.3

Leases - Cash Paid and Lease Recognition (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 50,398
Financing cash flows from finance leases	20,860
Right-of-use lease assets obtained in the exchange for lease liabilities:
Operating leases	19,127
Finance leases	$ 10,731

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 290,632	$ 287,046
Less: Accumulated depreciation and amortization	(176,995)	(154,060)
Property, plant and equipment, net	113,637	132,986		$ 119,469	$ 125,018	$ 129,621	$ 131,156	$ 135,585	$ 132,870
Depreciation expense
Depreciation expense	41,400	43,100	$ 31,700
Land
Property, Plant and Equipment, Net
Property, plant and equipment, gross	6,884	6,888
Buildings and improvements
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 20,288	20,518
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
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 47,036	56,589
Vehicles
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 531	717
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
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 28,489	62,746
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
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 92,500	130,864
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
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 9,440	$ 8,724
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
Finance lease right-of-use assets
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 85,464

Intangibles Assets and Goodwill - Intangibles (Details) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
	Oct. 01, 2018	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Intangibles
Gross Carrying Amount		$ 721,464		$ 721,464	$ 714,568
Amortization		(379,021)		(379,021)	(319,548)
Intangible Asset, net		342,443		342,443	395,020
Impairment of goodwill				348,557	44,427
Aggregated amortization expense				59,300	94,900	$ 67,100
Customer relationships
Intangibles
Gross Carrying Amount		508,074		508,074	507,905
Amortization		(237,313)		(237,313)	(190,666)
Intangible Asset, net		270,761		270,761	317,239
Developed technology
Intangibles
Gross Carrying Amount		89,053		89,053	89,053
Amortization		(87,109)		(87,109)	(85,967)
Intangible Asset, net		1,944		1,944	3,086
Trade names
Intangibles
Gross Carrying Amount		8,400		8,400	9,400
Amortization		(3,100)		(3,100)	(3,100)
Intangible Asset, net		5,300		5,300	6,300
Impairment charge	$ 3,700			1,000	3,700
Accumulated impairment losses		44,100		44,100	43,100
Outsource contract costs
Intangibles
Gross Carrying Amount		16,726		16,726	15,439
Amortization		(11,749)		(11,749)	(8,817)
Intangible Asset, net		4,977		4,977	6,622
Internally developed software
Intangibles
Gross Carrying Amount		43,261		43,261	36,820
Amortization		(12,129)		(12,129)	(6,278)
Intangible Asset, net		31,132		31,132	30,542
Trademarks
Intangibles
Gross Carrying Amount		23,378		23,378	23,379
Amortization		(23,370)		(23,370)	(23,370)
Intangible Asset, net		8		8	9
Non compete agreements
Intangibles
Gross Carrying Amount		1,350		1,350	1,350
Amortization		(1,350)		(1,350)	(1,350)
Assembled workforce
Intangibles
Gross Carrying Amount		4,473		4,473	4,473
Amortization		(1,118)		(1,118)
Intangible Asset, net		3,355		3,355	4,473
Purchased software
Intangibles
Gross Carrying Amount		26,749		26,749	26,749
Amortization		(1,783)		(1,783)
Intangible Asset, net		24,966		24,966	26,749
Goodwill.
Intangibles
Impairment charge		348,600	$ 348,600
Impairment of goodwill	$ 44,400			96,200
Additional impairment charge				252,400
Accumulated impairment losses		$ 560,900		$ 560,900	$ 212,300

Intangibles Assets and Goodwill - Intangibles - Amortization expense (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Intangibles amortization expense
2020	$ 55,323
2021	50,015
2022	45,535
2023	37,168
2024	29,704
Thereafter	120,163
Intangible assets, net	$ 337,908

Intangibles Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill
Beginning of Year Balance	$ 611,982	$ 708,246	$ 749,762	$ 708,258	$ 708,258	$ 747,325
Additions						5,580
Reductions					(348,557)	(44,427)
Currency Translation Adjustments					70	(220)
End of Year Balance	359,771	611,982	708,258	611,982	359,771	708,258	$ 747,325
Accumulated impairment losses	167,900		167,900		167,900	167,900	167,900
Impairment of goodwill and other intangible assets	252,399	$ 97,158	48,127	97,158	349,557	48,127	69,437
ITPS
Goodwill
Beginning of Year Balance				571,575	571,575	566,215
Additions						5,580
Reductions					(317,525)
Currency Translation Adjustments					70	(220)
End of Year Balance	254,120		571,575		254,120	571,575	566,215
HS
Goodwill
Beginning of Year Balance				86,786	86,786	86,786
End of Year Balance	86,786		86,786		86,786	86,786	86,786
LLPS
Goodwill
Beginning of Year Balance				$ 49,897	49,897	94,324
Reductions			(44,400)		(31,032)	(44,427)
End of Year Balance	$ 18,865		$ 49,897		$ 18,865	$ 49,897	$ 94,324

Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Accrued liabilities
Accrued taxes (exclusive of income taxes)	$ 9,608				$ 10,606
Accrued lease exit obligations	1,127				1,694
Accrued professional and legal fees	33,421				31,220
Accrued appraisal action liability	56,412				40,649
Deferred rent					1,421
Accrued interest	48,769	$ 24,602	$ 48,935	$ 23,928	49,071	$ 23,845	$ 48,885	$ 23,795
Accrued transaction costs	2,250				2,250
Other accruals	18,735				19,515
Total accrued liabilities including accrued interest	121,553				107,355
Other Long-term liabilities
Deferred revenue	339				432
Deferred rent	669				7,650
Accrued lease exit obligations	136				369
Accrued compensation expense	2,075				2,173
Other	3,743				4,093
Other Long-term liabilities	$ 6,962	$ 7,866	$ 7,882	$ 6,747	$ 14,717	$ 15,307	$ 16,208	$ 13,879

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

Long-Term Debt and Credit Facilities - Debt Refinancing (Details) - USD ($) $ in Thousands		6 Months Ended		9 Months Ended		12 Months Ended
	Jul. 12, 2017	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt instruments
Repayment of debt								$ 1,055,736
Cash paid for acquired debt		$ 5,000	$ 4,145	$ 5,000	$ 6,513	$ 5,000	$ 34,810	$ 423,797
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						$ 46,366
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 Business Combination \| Source HOV Related Debt [Member]
Debt instruments
Repayment of debt	1,050,700
Novitex Business Combination \| 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	May 18, 2020	Jul. 12, 2017	Dec. 31, 2019	Dec. 31, 2018
Debt instruments
Original issue discount		$ 7.0
Minimum liquidity amount	$ 35.0
First lien credit agreement
Debt instruments
Original issue discount			$ 6.5	$ 8.3
Senior secured term loan \| First lien credit agreement
Debt instruments
Amount of facility		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%
Revolver \| First lien credit agreement
Debt instruments
Maximum borrowing capacity		$ 100.0
Letters of credit outstanding			$ 20.6	$ 20.6
LIBOR \| Senior secured term loan \| First lien credit agreement
Debt instruments
Applicable margin rate		7.50%
Floor interest rate		1.00%
LIBOR \| Revolver \| 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 \| Revolver \| 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, 2019	Dec. 31, 2018
Debt instruments
Outstanding amount of term loans		$ 1,434,875	$ 1,335,660
First Amendment
Debt instruments
Proceeds from refinancing term loans	$ 343,400
Reduction in interest rate (in percentage)	1.00%
First Amendment \| Federal funds rate
Debt instruments
Variable interest rate (as a percent)	0.50%
First Amendment \| LIBOR
Debt instruments
Floor interest rate	1.00%
Interest rate (in percent)	6.50%
First Amendment \| One-month adjusted LIBOR
Debt instruments
Variable interest rate (as a percent)	1.00%
First Amendment \| Base rate
Debt instruments
Interest rate (in percent)	5.50%
Revolver
Debt instruments
Outstanding amount of term loans	$ 343,400
Revolver \| 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
	Apr. 16, 2019	Jul. 13, 2018	Jun. 30, 2019	Sep. 30, 2018
Repricing Term Loan
Debt instruments
Debt extinguishment costs			$ 1.4	$ 1.1
Incremental term loan
Debt instruments
Proceeds from incremental term loans	$ 30.0	$ 30.0

Long-Term Debt and Credit Facilities - Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jul. 12, 2017
Debt instruments
Total debt	$ 1,434,875				$ 1,335,660
Less: Current portion of long-term debt	(36,490)	$ (37,237)	$ (38,929)	$ (32,821)	(29,237)	$ (20,062)	$ (19,799)	$ (21,170)
Long-term debt, net of current maturities	1,398,385	$ 1,367,583	$ 1,331,898	$ 1,336,152	1,306,423	$ 1,307,884	$ 1,278,197	$ 1,277,029
Debt discount									$ 7,000
Senior secured notes
Debt instruments
Total debt	979,060				974,443
Other
Debt instruments
Total debt	30,232				25,321
First lien credit agreement
Debt instruments
Total debt	360,583				335,896
Debt discount	6,500				8,300
Unamortized debt issuance costs	18,900				24,500
Senior secured notes
Debt instruments
Debt discount	14,900				18,200
Unamortized debt issuance costs	6,000				$ 7,300
Revolver
Debt instruments
Total debt	$ 65,000

Long-Term Debt and Credit Facilities - Maturities of long-term debt (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Maturities of long-term debt
2020	$ 36,490
2021	25,198
2022	91,187
2023	1,325,445
2024	2,921
Total long-term debt	1,481,241
Less: Unamortized discount and debt issuance costs	(46,366)
Total debt	$ 1,434,875	$ 1,335,660

Income Taxes - Components And Provisions (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components income/ (loss) before income taxes
United States													$ (511,165)	$ (180,245)	$ (281,009)
Foreign													9,691	18,792	10,457
Income/ (loss) before income taxes													(501,474)	(161,453)	(270,552)
Provision for federal, state, and foreign income taxes
Federal - Current													(1,308)	1,308	(722)
Federal - Deferred													(3,879)	(2,006)	(59,425)
State - Current													2,255	390	1,407
State - Deferred													(807)	2,339	(7,178)
Foreign - Current													5,770	3,435	5,794
Foreign - Deferred													5,611	2,887	(944)
Income tax expense (benefit)	$ 1,953	$ (3,769)	$ 4,738	$ 4,720	$ 3,442	$ (733)	$ 1,619	$ 4,025	$ 9,458	$ 5,644	$ 5,689	$ 4,911	$ 7,642	$ 8,353	$ (61,068)

Income Taxes - Income tax reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Statutory tax rate													21.00%	35.00%
Reconciliation of effective income tax amount
Tax at statutory rate													$ (105,310)	$ (33,905)	$ (94,693)
State income taxes													(7,666)	(6,557)	(4,219)
Foreign income taxes													4,390	1,228	305
Nondeductible transaction costs															27,311
Nondeductible goodwill impairment													61,699	9,002	10,497
Permanent differences													1,275	2,542	438
Litigation settlement													3,310	608	415
Changes in valuation allowance													30,064	19,433	(6,159)
Unremitted earnings													1,604	4,735
Changes in U.S. tax rates															(4,784)
Deemed mandatory repatriation															7,441
GILTI Inclusion													3,772	2,289
Expiration of tax attributes													10,807	8,353
Other													3,697	625	2,380
Income tax expense (benefit)	$ 1,953	$ (3,769)	$ 4,738	$ 4,720	$ 3,442	$ (733)	$ 1,619	$ 4,025	$ 9,458	$ 5,644	$ 5,689	$ 4,911	7,642	8,353	$ (61,068)
Tax impacts of GILTI													18,000	2,300
Tax expense related to BEAT													$ 0	$ 1,300

Income Taxes - Components of deferred income tax liabilities and assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2015	Dec. 31, 2018
Deferred income tax liabilities:
Book over tax basis of intangible and fixed assets	$ (77,088)		$ (94,648)
Unremitted foreign earnings	(6,339)		(4,735)
Lease Asset	(16,981)
Other, net	(2,571)		(4,079)
Total deferred income tax liabilities	(102,979)		(103,462)
Deferred income tax assets:
Allowance for doubtful accounts and receivable adjustments	1,498		1,676
Inventory	903		1,629
Accrued liabilities	11,608		9,433
Net operating loss and tax credit carryforwards	158,265		184,430
Tax deductible goodwill	8,066		3,147
Disallowed Interest Deduction	56,873		26,897
Lease Liability	18,127
Other, net	15,481		16,031
Total deferred income tax assets	270,820		243,243
Valuation allowance	(163,806)		(134,650)
Total net deferred income tax assets	4,036		$ 5,131
Increase (decrease) in valuation allowance	29,200
Federal
Deferred income tax assets:
Valuation allowance related to disallowed interest deduction	48,900
Valuation allowance related to limitation of utilization of NOL carryforwards	65,400
Increase (decrease) in valuation allowance		$ 3,500
State
Deferred income tax assets:
Valuation allowance related to disallowed interest deduction	7,200
Valuation allowance related to limitation of utilization of NOL carryforwards	5,800
Foreign.
Deferred income tax assets:
Valuation allowance related to disallowed interest deduction	$ 37,600

Income Taxes - Net operating loss carryforwards (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Operating loss carryforwards
Tax deductible goodwill	$ 41,400
Trans Centra Inc
Operating loss carryforwards
Tax deductible goodwill	17,000
Novitex Business Combination
Operating loss carryforwards
Tax deductible goodwill	3,500
Reorganization 2014
Operating loss carryforwards
Tax deductible goodwill	20,900
Federal
Operating loss carryforwards
Net operating loss carryforwards	573,791
Federal \| 2020 - 2024
Operating loss carryforwards
Net operating loss carryforwards	86,371
Federal \| 2025 - 2029
Operating loss carryforwards
Net operating loss carryforwards	134,448
Federal \| 2030 - 2039
Operating loss carryforwards
Net operating loss carryforwards	352,972
State
Operating loss carryforwards
Net operating loss carryforwards	421,487
State \| 2020 - 2024
Operating loss carryforwards
Net operating loss carryforwards	60,478
State \| 2025 - 2029
Operating loss carryforwards
Net operating loss carryforwards	94,661
State \| 2030 - 2039
Operating loss carryforwards
Net operating loss carryforwards	266,348
Foreign.
Operating loss carryforwards
Net operating loss carryforwards	37,300
Foreign. \| 2024 \| Exela Poland
Operating loss carryforwards
Net operating loss carryforwards	$ 1,200

Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Recognized tax benefit	$ 2,800
Accrued interest and penalties on unrecognized tax benefits	2,100	$ 2,300
Interest and penalties recorded on unrecognized tax benefits	(200)
Reconciliation of total amounts of unrecognized tax benefits
Balance at beginning of the period	1,476	1,047	$ 999
Gross increases - tax positions in prior period	1,378	301	48
Gross decreases - tax positions in prior period	(10)
Gross increases - tax positions in current period	1,470	128
Balance at end of the period	4,314	1,476	$ 1,047
Deferred taxes provided for withholding or other taxes for repatriation of foreign earnings	0
Undistributed earnings from foreign subsidiaries	105,200
Foreign withholding taxes on the undistributed earnings	6,300
Undistributed Foreign Earnings	$ 1,600	$ 4,700

Employee Benefit Plans - Germany & UK (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension plans
Plan assets	$ 75,875	$ 62,952	$ 64,886
Weighted average expected long-term rate	3.86%
German Pension Plan \| Unfunded Plan
Pension plans
Plan assets	$ 0
German Pension Plan \| Unfunded Plan \| Minimum
Pension plans
Qualifying period	10 years
U.K. Pension Plan
Pension plans
Weighted average expected long-term rate	3.87%	4.25%
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	1.10%	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	3.80%	4.30%
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, 2019	Dec. 31, 2018	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Change in Benefit Obligation:
Benefit obligation at beginning of period	$ 90,051	$ 91,875
Additional obligation due to acquisition		5,631
Service cost	80	82
Interest cost	2,448	2,350
Actuarial loss	9,168	(4,356)
Plan amendments	(835)	1,334
Benefits paid	(3,082)	(1,558)
Foreign-exchange rate changes	3,131	(5,307)
Benefit obligation at end of year	100,961	90,051
Change in Plan Assets:
Fair value of plan assets at beginning of period	62,952	64,886
Additional obligation due to acquisition		2,184
Actual return on plan assets	10,906	(1,432)
Employer contributions	2,557	2,477
Benefits paid	(2,995)	(1,421)
Foreign-exchange rate changes	2,455	(3,742)
Fair value of plan assets at end of period	75,875	62,952
Funded status at end of year			$ (25,086)				$ (27,099)
Net amount recognized in the Consolidated Balance Sheets:
Pension liability (b)			(25,681)	$ (28,850)	$ (27,141)	$ (27,730)	(27,641)	$ (32,887)	$ (32,967)	$ (28,540)
Minimum regulatory benefit for Philippine legal entity			500				500
Amounts recognized in accumulated other comprehensive loss, net of tax consist of:
Net actuarial loss	(8,059)	(9,301)
Net amount recognized in accumulated other comprehensive loss			8,059	$ 8,978	$ 9,269	$ 9,525	9,301	$ 10,691	$ 10,831	$ 11,457
Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate fair value of plan assets	75,875	62,952	75,875				62,952
Overfunded Plan [Member]
Change in Plan Assets:
Fair value of plan assets at end of period	75,875
Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate fair value of plan assets	75,875		75,875
Underfunded Plan [Member]
Change in Plan Assets:
Fair value of plan assets at beginning of period	62,952
Fair value of plan assets at end of period		62,952
Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate fair value of plan assets	62,952	62,952					62,952
Underfunded Or Unfunded Plan [Member]
Change in Plan Assets:
Fair value of plan assets at beginning of period	62,883
Fair value of plan assets at end of period	75,875	62,883
Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate projected benefit obligation			100,961				90,050
Aggregate accumulated benefit obligation			100,961				90,050
Aggregate fair value of plan assets	75,875	$ 62,883	75,875				62,883
U.K. And Asterion Plans
Net amount recognized in the Consolidated Balance Sheets:
Pension liability (b)			(25,681)				(27,641)
U.K. Pension Plan
Net amount recognized in the Consolidated Balance Sheets:
Pension liability (b)			(20,600)				(22,000)
Asterion Pension Plan
Net amount recognized in the Consolidated Balance Sheets:
Pension liability (b)			(2,400)				(2,800)
Norway Pension Plan
Net amount recognized in the Consolidated Balance Sheets:
Pension liability (b)			(100)				(500)
German Pension Plan
Net amount recognized in the Consolidated Balance Sheets:
Pension liability (b)			(2,100)				$ (1,800)
German Pension Plan \| Unfunded Plan
Change in Plan Assets:
Fair value of plan assets at end of period	0
Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate fair value of plan assets	$ 0		$ 0

Employee Benefit Plans - Tax Effect on Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Benefit Costs
Estimated amortization of actuarial loss	$ 1,800
Estimated amortization of prior service cost	100
Net actuarial loss	(8,059)	$ (9,301)
Deferred tax benefit	$ 2,000	$ 1,700

Employee Benefit Plans - Pension Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net periodic benefit cost
Service cost	$ 80	$ 82
Interest cost	2,448	2,350
Employer contributions	2,557	2,477
Pension And Postretirement [Member]
Net periodic benefit cost
Service cost	80	82	$ 8
Interest cost	2,448	2,350	2,288
Expected return on plan assets	(2,460)	(2,841)	(2,392)
Amortization of prior service cost	(169)	9	(134)
Amortization of net (gain) loss	1,768	1,755	2,063
Net periodic benefit cost	$ 1,667	$ 1,355	$ 1,833

Employee Benefits Plans - Valuation (Details)	12 Months Ended
Employee Benefits Plans - Valuation (Details)	Dec. 31, 2019	Dec. 31, 2018
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	3.86%
U.K. Pension Plan
Weighted-average assumptions used to determine benefit obligations:
Discount rate	2.10%	2.80%
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	2.80%	2.50%
Expected asset return	3.87%	4.25%
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	1.10%	1.80%
Rate of compensation increase	2.50%	2.50%
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	1.10%	1.80%
Expected asset return	1.10%	1.80%
Rate of compensation increase	2.50%	2.50%
Norway Pension Plan
Weighted-average assumptions used to determine benefit obligations:
Discount rate	2.30%	2.60%
Rate of compensation increase	2.25%	2.75%
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	2.30%	2.60%
Expected asset return	3.80%	4.30%
Rate of compensation increase	2.25%	1.75%
Norway Pension Plan \| Minimum
Valuation
Historical performance period	10 years
Norway Pension Plan \| Maximum
Valuation
Historical performance period	20 years
German Pension Plan
Weighted-average assumptions used to determine benefit obligations:
Discount rate	1.00%	1.90%
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	1.00%	1.90%

Employee Benefit Plans - Plan Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan, Plan Assets, 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	$ 75,875	$ 62,952	$ 64,886
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	$ 837	129
Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	75,038	62,823
Cash.
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	837	129
Cash. \| Level 1
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 837	$ 129
US and international equities
Defined Benefit Plan, Plan Assets, Allocations [Abstract]
Weighted average allocation of plan assets (as a percent)	29.90%	27.10%	45.00%
U.S.
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 13,121	$ 10,161
U.S. \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	13,121	10,161
International
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	8,747	6,773
International \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 8,747	$ 6,773
UK government and corporate bonds
Defined Benefit Plan, Plan Assets, Allocations [Abstract]
Weighted average allocation of plan assets (as a percent)	12.50%	12.70%	20.00%
Corporate bonds / UK Gilts
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 9,446	$ 7,987
Corporate bonds / UK Gilts \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 9,446	$ 7,987
Diversified growth fund
Defined Benefit Plan, Plan Assets, Allocations [Abstract]
Weighted average allocation of plan assets (as a percent)	41.30%	38.90%	35.00%
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 31,345	$ 24,488
Diversified growth fund \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 31,345	$ 24,488
Liability Driven Investments [Member]
Defined Benefit Plan, Plan Assets, Allocations [Abstract]
Weighted average allocation of plan assets (as a percent)	16.30%	21.30%
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 12,379	$ 13,414
Liability Driven Investments [Member] \| Level 2
Defined Benefit Plan Pension Assets Fair Value By Category [Abstract]
Fair value of plan assets	$ 12,379	$ 13,414

Employee Benefit Plans - Employer Contributions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Employer Contributions
Total employer contributions to pension plans	$ 2,600	$ 2,500
Employer contributions to pension plans expected during 2020	2,700
Estimated Future Benefit Payments
2020	1,730
2021	1,741
2022	2,070
2023	1,997
2024	2,854
2025 - 2029	16,417
Total estimated future benefit payments	$ 26,809

Commitments and Contingencies (Details) - USD ($)					3 Months Ended
Commitments and Contingencies (Details) - USD ($)	Mar. 26, 2020	Jan. 30, 2020	Apr. 13, 2018	Sep. 21, 2017	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Feb. 20, 2014
Commitments and Contingencies
Accrued liability						$ 56,400,000
Bantec Inc
Commitments and Contingencies
Contingent Consideration fair value						$ 700,000	$ 700,000	$ 700,000
Earnout sought			$ 8,100,000
Petitioners \| SourceHOV
Commitments and Contingencies
Court determined fair value of stock at time of business combination (per share)		$ 4,591
Amount awarded to petitioners	$ 57,698,426
Petitioners \| Ex-Sigma 2, LLC
Commitments and Contingencies
Shares returned to company					4,570,734
Minimum \| Petitioners \| SourceHOV
Commitments and Contingencies
Argued fair value per share				$ 1,633.85
Maximum \| Petitioners \| SourceHOV
Commitments and Contingencies
Argued fair value per share				$ 5,079.28
Fair value guarantee \| Common Stock \| SourceHOV
Commitments and Contingencies
Number of shares owned				10,304

Commitments and Contingencies - Contract-Related Contingencies (Details) - Bantec Inc - USD ($) $ in Millions	Apr. 13, 2018	Dec. 31, 2019	Dec. 31, 2018	Feb. 20, 2014
Other Commitments [Line Items]
Contingent consideration		$ 0.7	$ 0.7	$ 0.7
Earnout sought	$ 8.1

Fair Value Measurement (Details) - USD ($) $ in Thousands	12 Months Ended
Fair Value Measurement (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Carrying amounts and estimated fair values of financial instruments
Goodwill	$ 359,771	$ 708,258	$ 611,982	$ 708,246	$ 708,285	$ 749,762	$ 748,708	$ 747,325	$ 747,325
Reconciliation of net assets and liabilities
Impairment of goodwill	$ 348,557	44,427
Senior secured term loan
Assets and liabilities measured at fair value
Fair value percentage	42.50%
Senior secured notes
Assets and liabilities measured at fair value
Fair value percentage	41.00%
Level 3
Reconciliation of net assets and liabilities
Balance as of Beginning of Period	$ 721	721
Balance as of End of Period	721	721
Carrying Amount \| Recurring assets and liabilities
Carrying amounts and estimated fair values of financial instruments
Long-term debt	1,398,385	1,306,423
Interest rate swap	501	3,836
Acquisition contingent liability	721	721
Carrying Amount \| Nonrecurring assets and liabilities
Carrying amounts and estimated fair values of financial instruments
Goodwill	359,771	708,258
Fair Value \| Recurring assets and liabilities
Carrying amounts and estimated fair values of financial instruments
Long-term debt	632,796	1,316,306
Interest rate swap	501	3,836
Acquisition contingent liability	721	721
Fair Value \| Recurring assets and liabilities \| Level 2
Carrying amounts and estimated fair values of financial instruments
Long-term debt	632,796	1,316,306
Interest rate swap	501	3,836
Fair Value \| Recurring assets and liabilities \| Level 3
Carrying amounts and estimated fair values of financial instruments
Acquisition contingent liability	721	721
Fair Value \| Nonrecurring assets and liabilities
Carrying amounts and estimated fair values of financial instruments
Goodwill	359,771	708,258
Fair Value \| Nonrecurring assets and liabilities \| Level 3
Carrying amounts and estimated fair values of financial instruments
Goodwill	$ 359,771	$ 708,258

Stock-Based Compensation (Details) - RSU's - 2013 Plan - shares	Dec. 31, 2019	Jul. 12, 2017
Stock-based compensation
Unvested RSU's	0	9,880
SourceHOV
Stock-based compensation
Restricted stock units outstanding		24,535

Stock-Based Compensation - Stock Incentive Plan (Details) - shares	Dec. 31, 2019	Dec. 31, 2018	Dec. 20, 2017
Exela 2018 Stock Incentive Plan
Common stock shares authorized	1,600,000,000	1,600,000,000
2018 Plan
Exela 2018 Stock Incentive Plan
Common stock shares authorized			8,323,764

Stock-Based Compensation - Restricted Stock Unit Grants (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Dividend Share-based Payment Arrangement
Cash paid for withholding taxes	$ 223	$ 223
RSU's
Dividend Share-based Payment Arrangement
Shares Paid for Tax Withholding for Share Based Compensation		194,010
Cash paid for withholding taxes		$ 200
RSU's \| 2018 Plan
Number of Shares
Balance at the beginning of the period (in shares)	893,297	893,297
Shares granted		462,617
Shares forfeited		(242,116)
Shares vested		(804,493)
Balance at the end of the period (in shares)		309,305	893,297
Weighted Average Grant Date Fair Value
Balance at the beginning of the period	$ 5.86	$ 5.86
Shares granted		2,490.00
Shares forfeited		5.41
Shares vested		5.88
Balance at the end of the period		$ 1.99	$ 5.86
Average Remaining Contractual Life (Years)
Weighted average remaining contractual life (in years)		1 year 2 months 9 days	9 months 4 days
Aggregate Intrinsic Value
Aggregate intrinsic value outstanding		$ 616	$ 5,239
RSU's \| 2018 Plan \| Minimum
Stock-Based Compensation
Vesting period		1 year
RSU's \| 2018 Plan \| Maximum
Stock-Based Compensation
Vesting period		2 years

Stock-Based Compensation - Options (Details) - USD ($)		12 Months Ended
Stock-Based Compensation - Options (Details) - USD ($)	Jan. 18, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
2013 Plan and 2018 Plan
Unrecognized compensation expense
Unrecognized compensation expense		$ 6,200,000
2013 Plan and 2018 Plan \| Selling, general and administrative expense
Unrecognized compensation expense
Total compensation expense		$ 7,800,000	$ 7,600,000	$ 6,700,000
Stock options \| 2018 Plan
Stock-based compensation
Minimum fair market value per share of underlying stock used to determine option grant price, as a percent	100.00%
Expiration of stock options	10 years
Outstanding
Outstanding Balance at beginning of the year (in shares)		3,570,300
Granted (in shares)		2,050,600
Forfeited (in shares)		(683,200)
Outstanding Balance at the end of the year (in shares)		4,937,700	3,570,300
Exercisable (in shares)		0
Weighted Average Exercise Price
Outstanding Balance at the beginning of the year		$ 6.06
Outstanding Balance at the end of the year (in shares)		4.14	$ 6.06
Weighted average Grant Date fair Value
Outstanding balance at the beginning of the period		2.69
Granted		0.94
Forfeited		2.64
Outstanding balance at the end of the period		$ 1.97	$ 2.69
Additional information
Average Remaining Vesting Period		2 years 3 months 7 days	2 years 11 months 1 day
Aggregate Intrinsic Value		$ 9,719,000	$ 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)	12 Months Ended
Stockholders’ Equity - Common Stock (Details)	Dec. 31, 2019 Vote $ / shares shares	Dec. 31, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares	Mar. 31, 2020 shares
Common Stock
Common stock, par value (in dollars per share) \| $ / shares	$ 0.0001	$ 0.0001	$ 0.0001
Common Stock, shares authorized	1,600,000,000	1,600,000,000
Common stock, shares issued	153,638,836	152,692,140
Common Stock, shares, outstanding	150,851,689	150,142,955
Common stock, shares returned				4,570,734
Number of voting rights entitled for each share of Common Stock held \| Vote	1
Series A Preferred Stock
Common Stock
Preferred shares converted to common (in shares)	275,000
Common Stock
Common Stock
Common stock, shares issued	153,638,836	152,692,140
Common Stock, shares, outstanding	150,851,689	150,142,955
Preferred shares converted to common (in shares)	336,214	1,986,767	3,667,803

Stockholders’ Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 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	4,294,233				4,569,233								4,294,233	4,569,233
Preferred Stock, par value (in dollars per share)	$ 0.0001				$ 0.0001								$ 0.0001	$ 0.0001
Cumulative dividends for Series A Preferred Stock	$ 597	$ 884	$ 914	$ 914	$ 914	$ 914	$ 914	$ 914	$ 1,828	$ 1,828	$ 2,712	$ 2,742	$ 3,309	$ 3,655	$ 2,489
Series A Preferred Stock
Preferred Stock
Preferred stock, shares outstanding	4,294,233				4,569,233								4,294,233	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	5,250,129												5,250,129
Preferred Stock, cumulative dividends rate (in percentage)													10.00%
Cumulative dividends for Series A Preferred Stock													$ 3,300
Cumulative accrued but unpaid dividends																$ 9,400
Per share average of cumulative preferred dividends (in dollars per share)													$ 2.2

Stockholders’ Equity - Treasury Stock (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Nov. 08, 2017
Stockholders’ Equity
Treasury stock, shares authorized			5,000,000
Treasury stock purchases (in shares)	237,962
Treasury stock, average share price	$ 2.51
Treasury shares	2,787,147	2,549,185

Stockholders’ Equity - Warrants (Details)	12 Months Ended
Stockholders’ Equity - Warrants (Details)	Dec. 31, 2019 item $ / shares 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
Number of warrants separated from the original unit	34,988,302
Number of warrants not separated from the original unit	11,698
Warrants \| IPO
Warrants
Units issued	35,000,000
Common stock included in units	1
Warrants included in units	1

Related-Party Transactions - Leasing Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related-Party Transactions
Rental expense on operating leases under ASC 842	$ 77.3
Rent expense for operating leases under ASC 840		$ 83.8	$ 60.0
Affiliate of largest stockholder
Related-Party Transactions
Rental expense on operating leases under ASC 842	$ 0.4
Rent expense for operating leases under ASC 840		$ 0.7	$ 0.7

Related-Party Transactions - Consulting Agreement (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related-Party Transactions
Amount of related party transaction													$ 9,501	$ 12,403	$ 33,431
Related party expense	$ 1,742	$ 1,430	$ 5,331	$ 998	$ 3,664	$ 775	$ 6,783	$ 1,181	$ 6,329	$ 7,964	$ 7,759	$ 8,739	9,501	12,403	33,431
Consulting Services \| Oakana Holdings Inc
Related-Party Transactions
Amount of related party transaction													200	200	100
Consulting Services \| Shadow Pond LLC
Related-Party Transactions
Amount of related party transaction													$ 0	$ 100	$ 500

Related-Party Transactions - Relationship with HandsOn Global Management (Details) $ in Thousands		3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Jul. 13, 2017 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 agreement	Dec. 31, 2015 agreement
Related-Party Transactions
Related party expense		$ 1,742	$ 1,430	$ 5,331	$ 998	$ 3,664	$ 775	$ 6,783	$ 1,181	$ 6,329	$ 7,964	$ 7,759	$ 8,739	$ 9,501	$ 12,403	$ 33,431
Amount of related party transaction														9,501	12,403	33,431
HGM \| Management Fees
Related-Party Transactions
Amount of related party transaction	$ 0															6,000
HGM \| Travel Expense
Related-Party Transactions
Amount of related party transaction														600		900
HGM \| Travel Expense \| Maximum
Related-Party Transactions
Amount of related party transaction															100
HGM \| Contract Cancellation And Advising Fees
Related-Party Transactions
Amount of related party transaction														0	0	23,000
Amount of related party transaction paid by issuance of common stock																$ 10,000
Number of shares issues in payment of related party transaction \| shares																1,250,000
Entities affiliated with HGM managed funds \| Master Service Agreement
Related-Party Transactions
Revenue share percentage																	25.00%	25.00%
SourceHOV \| Master Service Agreement
Related-Party Transactions
Revenue share percentage																	75.00%	75.00%
SourceHOV \| Entities affiliated with HGM managed funds \| Master Service Agreement
Related-Party Transactions
Related party expense														$ 1,000	$ 700	$ 600
Number of master agreements \| agreement																	10	10

Related-Party Transactions - Relationship with HOV Services, Ltd (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related-Party Transactions
Amount of related party transaction													$ 9,501	$ 12,403	$ 33,431
Related party expense	$ 1,742	$ 1,430	$ 5,331	$ 998	$ 3,664	$ 775	$ 6,783	$ 1,181	$ 6,329	$ 7,964	$ 7,759	$ 8,739	9,501	12,403	33,431
HOV Services, Ltd \| Data Capture And Technology Services \| Cost of revenue
Related-Party Transactions
Amount of related party transaction													$ 1,500	$ 1,600	$ 1,700

Related Party Transactions - Relationship with Apollo Global Management, LLC (Details) $ in Thousands	1 Months Ended	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2019 USD ($) subsidiary	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Related-Party Transactions
Related party expense		$ 1,742	$ 1,430	$ 5,331	$ 998	$ 3,664	$ 775	$ 6,783	$ 1,181	$ 6,329	$ 7,964	$ 7,759	$ 8,739	$ 9,501	$ 12,403	$ 33,431
Finance lease liability		34,060												34,060
Management Holdings \| Master Service Agreement
Related-Party Transactions
Revenue from related parties														600	600	300
Caesars \| Master Service Agreement
Related-Party Transactions
Revenue from related parties														4,400	4,100	1,200
ADT LLC \| Master Service Agreement
Related-Party Transactions
Revenue from related parties														1,200	600
ADT LLC \| Master Service Agreement \| Maximum
Related-Party Transactions
Revenue from related parties																100
Diamond Resorts Centralized Services \| Master Service Agreement
Related-Party Transactions
Revenue from related parties														5,400	5,700	0
Related party cost of revenue																0
Diamond Resorts Centralized Services \| Master Service Agreement \| Maximum
Related-Party Transactions
Related party cost of revenue														100	100
Presidio Group \| Master Service Agreement
Related-Party Transactions
Related party expense														1,000	700	300
Presidio Capital \| Master Lease Agreement
Related-Party Transactions
Number of subsidiaries involved in agreement \| subsidiary	1
Finance lease liability	$ 1,000	$ 900		$ 1,000						$ 1,000				900
Evertec \| Equipment Maintenance Agreement
Related-Party Transactions
Revenue from related parties														$ 300	$ 300
Evertec \| Equipment Maintenance Agreement \| Maximum
Related-Party Transactions
Revenue from related parties																$ 100

Related Party Transactions - Relationship with Ex-Sigma and Ex-Sigma 2 (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2019	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Related party expense		$ 1,742	$ 1,430	$ 5,331	$ 998	$ 3,664	$ 775	$ 6,783	$ 1,181	$ 6,329	$ 7,964	$ 7,759	$ 8,739	$ 9,501	$ 12,403	$ 33,431
Related party payables		1,740	$ 10,207	$ 11,671	$ 13,812	15,363	$ 15,792	$ 17,023	$ 14,172	$ 11,671	$ 17,023	10,207	$ 15,792	1,740	15,363
Selling, general and administrative expense
Related Party Transaction [Line Items]
Related party expense												$ 500		400
Ex-Sigma 2, LLC
Related Party Transaction [Line Items]
Cash reimbursed to related parties		5,600
Margin Loan \| Ex-Sigma 2, LLC
Related Party Transaction [Line Items]
Related party expense														1,700	5,200
Related party payables		6,900												6,900
Amount of bonus paid	$ 4,600
Payroll taxes	1,700
Margin Loan \| Ex-Sigma 2, LLC \| Selling, general and administrative expense
Related Party Transaction [Line Items]
Amount of bonus expense incurred	$ 6,300	6,300
Secondary Offering \| Ex-Sigma 2, LLC
Related Party Transaction [Line Items]
Related party payables		2,400				2,100								2,400	2,100
Legal Expenses \| Ex-Sigma 2, LLC
Related Party Transaction [Line Items]
Related party payables		$ 600				$ 400								$ 600	$ 400

Related-Party Transactions - Receivable and Payable Balance with Affiliates (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Receivable and Payable Balances with Affiliates
Receivable balances with affiliates	$ 716	$ 42	$ 206		$ 0
Increase to related party payables	1,740	$ 10,207	$ 11,671	$ 13,812	15,363	$ 15,792	$ 17,023	$ 14,172
HOV Services, Ltd
Receivable and Payable Balances with Affiliates
Receivable balances with affiliates	601
Increase to related party payables					405
Rule 14, LLC
Receivable and Payable Balances with Affiliates
Increase to related party payables	250				127
HGM
Receivable and Payable Balances with Affiliates
Receivable balances with affiliates	115
Increase to related party payables					6,998
Apollo
Receivable and Payable Balances with Affiliates
Increase to related party payables	202				205
Oakana Holdings Inc
Receivable and Payable Balances with Affiliates
Increase to related party payables	1
Ex-Sigma
Receivable and Payable Balances with Affiliates
Increase to related party payables	$ 1,287				$ 7,628

Segment and Geographic Area Information - Revenue by segment information (Details) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2019 USD ($) segment	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Segment information
Number of segments \| segment													3
Revenue	$ 393,586	$ 373,545	$ 390,849	$ 404,357	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 795,206	$ 803,549	$ 1,168,751	$ 1,186,579	$ 1,562,337	$ 1,586,222	$ 1,145,891
Cost of revenue (exclusive of depreciation and amortization)	314,858	295,445	303,831	310,601	306,654	296,685	315,167	294,897	614,432	610,064	909,877	906,749	1,224,735	1,213,403	827,544
Segment profit													337,602	372,819	318,347
Selling, general and administrative expenses (exclusive of depreciation and amortization)	49,678	48,347	51,162	49,677	48,114	44,897	46,378	45,519	100,839	91,897	149,186	136,794	198,864	184,908	220,955
Depreciation and amortization	24,421	25,079	24,779	26,624	33,684	33,410	34,744	36,239	51,403	70,982	76,482	104,393	100,903	138,077	98,890
Impairment of goodwill and other intangible assets	252,399	97,158			48,127						97,158		349,557	48,127	69,437
Related party expense													9,501	12,403	33,431
Interest expense, net	43,216	40,573	39,959	39,701	38,999	39,087	39,229	38,676	79,660	77,905	120,235	116,992	163,449	155,991	129,676
Debt modification and extinguishment costs			1,404			1,067			1,404		1,404	1,067	1,404	1,067	35,512
Sundry expense (income), net	600	(165)	1,311	(2,715)	(905)	2,283	2,122	(229)	(1,404)	1,893	(1,569)	4,176	969	(3,271)	2,295
Other expense (income), net	10,003	406	2,527	1,493	2,567	(1,069)	(907)	(3,621)	4,020	(4,528)	4,424	(5,597)	14,429	(3,030)	(1,297)
Net loss before income taxes	(302,131)	(135,058)	(36,833)	(27,452)	(83,071)	(29,539)	(28,890)	(19,953)	$ (64,285)	$ (48,842)	$ (199,343)	$ (78,382)	(501,474)	(161,453)	(270,552)
ITPS
Segment information
Revenue	306,665	292,607	309,840	325,172	324,267	307,313	330,131	311,936					1,234,284	1,273,647	820,677
Cost of revenue (exclusive of depreciation and amortization)	250,927	241,867	249,589	259,272	255,191	247,021	262,066	246,042					1,001,655	1,010,320	619,694
Segment profit													232,629	263,327	200,983
HS
Segment information
Revenue	69,806	62,132	63,440	61,343	56,293	56,776	56,314	58,632					256,721	228,015	233,595
Cost of revenue (exclusive of depreciation and amortization)	53,634	42,717	43,353	40,341	40,008	37,139	39,538	35,192					180,045	151,877	152,290
Segment profit													76,676	76,138	81,305
LLPS
Segment information
Revenue	17,115	18,806	17,569	17,842	19,083	18,941	23,937	22,599					71,332	84,560	91,619
Cost of revenue (exclusive of depreciation and amortization)	$ 10,297	$ 10,861	$ 10,889	$ 10,988	$ 11,455	$ 12,525	$ 13,563	$ 13,663					43,035	51,206	55,560
Segment profit													$ 28,297	$ 33,354	$ 36,059

Segment and Geographic Area Information - Revenues by principal geographic area (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues by principal geographic area
Revenue	$ 393,586	$ 373,545	$ 390,849	$ 404,357	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 795,206	$ 803,549	$ 1,168,751	$ 1,186,579	$ 1,562,337	$ 1,586,222	$ 1,145,891
United States
Revenues by principal geographic area
Revenue													1,286,678	1,347,516	1,000,827
EMEA
Revenues by principal geographic area
Revenue													248,466	211,314	130,098
Other
Revenues by principal geographic area
Revenue													$ 27,193	$ 27,392	$ 14,966

Unaudited Quarterly Financial Data - Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 05, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 94,100	$ 6,198	$ 9,358	$ 18,406	$ 8,559	$ 36,206	$ 41,206	$ 56,961	$ 29,010
Restricted cash		7,901	5,867	5,020	4,701	7,648	8,441	29,910	10,421
Accounts receivable, net		261,400	260,438	266,660	278,064	270,812	253,986	262,260	238,680
Related party receivables		716	42	206		0
Inventories, net		19,047	16,996	16,735	16,321	16,220	16,122	15,088	13,519
Prepaid expenses and other current assets		23,663	22,617	23,713	25,252	24,937	26,933	24,108	27,520
Total current assets		318,925	315,318	330,740	332,897	355,823	346,688	388,327	319,150
Property, plant and equipment, net of accumulated depreciation of $154,060		113,637	119,469	125,018	129,621	132,986	131,156	135,585	132,870
Operating lease right-of-use assets, net		93,627	93,352	96,498	100,727
Goodwill		359,771	611,982	708,246	708,285	708,258	749,762	748,708	747,325	$ 747,325
Intangible assets, net		342,443	357,114	372,004	383,680	395,020	384,895	405,457	424,251
Deferred income tax assets		12,032	15,950	16,301	16,322	16,345	15,606	16,076	9,967
Other noncurrent assets		17,889	13,557	14,714	17,667	19,391	21,650	21,276	18,490
Total assets		1,258,324	1,526,742	1,663,521	1,689,199	1,627,823	1,649,757	1,715,429	1,652,053
Current liabilities
Accounts payables		86,167	93,815	99,089	90,924	99,853	90,673	86,304	77,194
Related party payables		1,740	10,207	11,671	13,812	15,363	15,792	17,023	14,172
Income tax payable		352		2,525	4,898	1,996	5,422	5,385	6,967
Accrued liabilities		121,553	104,097	102,265	105,018	107,355	81,259	79,851	70,217
Accrued compensation and benefits		48,574	49,636	50,218	55,745	52,211	52,464	48,409	47,279
Accrued interest		48,769	24,602	48,935	23,928	49,071	23,845	48,885	23,795
Customer deposits		27,765	30,161	28,914	28,410	34,235	39,419	36,997	36,542
Deferred revenue		16,282	17,368	19,428	19,966	16,504	18,084	20,654	15,933
Obligation for claim payment		39,156	43,267	41,496	46,063	56,002	52,889	94,233	56,554
Current portion of finance lease liabilities		13,788	15,172	15,897	15,961		15,926	16,568	14,785
Current portion of operating lease liabilities		25,345	26,604	27,444	27,368
Current portion of long-term debts		36,490	37,237	38,929	32,821	29,237	20,062	19,799	21,170
Total current liabilities		465,981	452,166	486,811	464,914	479,325	415,835	474,108	384,608
Long-term debt, net of current maturities		1,398,385	1,367,583	1,331,898	1,336,152	1,306,423	1,307,884	1,278,197	1,277,029
Finance lease liabilities, net of current portion		20,272	24,159	25,772	27,231		22,945	25,193	26,474
Pension liabilities		25,681	28,850	27,141	27,730	27,641	32,887	32,967	28,540
Deferred income tax liabilities		7,996	12,679	15,898	12,441	11,214	2,115	5,016	5,478
Long-term income tax liabilities		2,806	2,892	2,842	3,158	3,024	3,470	3,470	3,470
Operating lease liabilities, net of current portion		73,282	71,661	74,290	78,290
Other long-term liabilities		6,962	7,866	7,882	6,747	14,717	15,307	16,208	13,879
Total liabilities		2,001,365	1,967,856	1,972,534	1,956,663	1,869,082	1,800,443	1,835,159	1,739,478
Commitments and Contingencies (Note 14)
Stockholders' equity (deficit)
Common Stock		15	15	15	15	15	15	15	15
Preferred Stock		1	1	1	1	1	1	1	1
Additional paid in capital		445,452	445,452	445,452	445,452	445,452	445,452	445,452	445,452
Less: common stock held in treasury, at cost; 2,549,185 shares		(10,949)	(10,949)	(10,949)	(10,342)	(10,342)	(5,148)	(3,728)	(249)
Equity-based compensation		49,336	48,411	47,190	44,529	41,731	38,601	36,980	35,044
Accumulated deficit		(1,211,508)	(907,422)	(776,134)	(734,563)	(702,392)	(615,058)	(586,253)	(555,744)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(7,329)	(7,644)	(5,319)	(3,031)	(6,423)	(3,858)	(1,366)	(487)
Unrealized pension actuarial losses, net of tax		(8,059)	(8,978)	(9,269)	(9,525)	(9,301)	(10,691)	(10,831)	(11,457)
Total accumulated other comprehensive loss		(15,388)	(16,622)	(14,588)	(12,556)	(15,724)	(14,549)	(12,197)	(11,944)
Total stockholders’ deficit		(743,041)	(441,114)	(309,013)	(267,464)	(241,259)	(150,686)	(119,730)	(87,425)	$ (51,796)	$ (339,901)
Total liabilities and stockholders’ deficit		$ 1,258,324	1,526,742	1,663,521	1,689,199	1,627,823	1,649,757	1,715,429	1,652,053
As previously reported
Current assets
Cash and cash equivalents			10,312	18,449	8,262	25,615	40,692	55,783	26,882
Restricted cash			4,913	4,977	4,998	18,239	8,955	31,088	12,549
Accounts receivable, net			260,438	266,660	278,064	270,812	253,986	262,260	238,680
Related party receivables			42	206
Inventories, net			16,996	16,735	16,321	16,220	16,122	15,088	13,519
Prepaid expenses and other current assets			22,695	23,791	25,330	25,015	26,933	24,108	27,520
Total current assets			315,396	330,818	332,975	355,901	346,688	388,327	319,150
Property, plant and equipment, net of accumulated depreciation of $154,060			119,469	125,018	129,621	132,986	131,156	135,585	132,870
Operating lease right-of-use assets, net			93,352	96,498	100,727
Goodwill			609,458	708,246	708,285	708,258	749,762	748,708	747,325
Intangible assets, net			374,445	387,775	397,412	407,021	398,280	419,725	438,929
Deferred income tax assets			15,830	16,181	16,202	16,225	14,810	15,280	9,171
Other noncurrent assets			13,557	14,714	17,667	19,391	21,650	21,276	18,490
Total assets			1,541,507	1,679,250	1,702,889	1,639,782	1,662,346	1,728,901	1,665,935
Current liabilities
Accounts payables			93,815	99,089	90,924	99,853	90,673	86,304	77,194
Related party payables			274	238	6,184	7,735	10,756	11,987	14,172
Income tax payable				2,525	4,898	1,996	5,422	5,385	6,967
Accrued liabilities			60,994	59,487	63,138	66,008	41,397	40,737	31,805
Accrued compensation and benefits			51,819	52,493	57,961	54,583	54,975	50,905	49,738
Accrued interest			24,602	48,935	23,928	49,071	23,845	48,885	23,795
Customer deposits			30,161	28,914	28,410	34,235	39,419	36,997	36,542
Deferred revenue			17,368	19,428	19,966	16,504	18,084	20,654	15,933
Obligation for claim payment			43,267	41,496	46,063	56,002	52,889	94,233	56,554
Current portion of finance lease liabilities			15,172	15,897	15,961		15,926	16,568	14,785
Current portion of operating lease liabilities			26,604	27,444	27,368
Current portion of long-term debts			37,237	38,929	32,821	29,237	20,062	16,299	21,170
Total current liabilities			401,313	434,875	417,622	432,722	373,448	428,954	348,655
Long-term debt, net of current maturities			1,367,583	1,331,898	1,336,152	1,306,423	1,307,884	1,281,697	1,277,029
Finance lease liabilities, net of current portion			24,159	25,772	27,231		22,945	25,193	26,474
Pension liabilities			26,667	24,866	25,514	25,269	30,376	30,471	26,081
Deferred income tax liabilities			12,677	15,896	12,439	11,212	2,115	5,016	5,478
Long-term income tax liabilities			2,892	2,842	3,158	3,024	3,470	3,470	3,470
Operating lease liabilities, net of current portion			71,661	74,290	78,290
Other long-term liabilities			7,866	7,882	6,747	15,400	15,307	16,208	13,879
Total liabilities			1,914,818	1,918,321	1,907,153	1,820,788	1,755,545	1,791,009	1,701,066
Commitments and Contingencies (Note 14)
Stockholders' equity (deficit)
Common Stock			15	15	15	15	15	15	15
Preferred Stock			1	1	1	1	1	1	1
Additional paid in capital			482,018	482,018	482,018	482,018	482,018	482,018	482,018
Less: common stock held in treasury, at cost; 2,549,185 shares			(10,949)	(10,949)	(10,342)	(10,342)	(5,148)	(3,728)	(249)
Equity-based compensation			48,411	47,190	44,529	41,731	38,601	36,980	35,044
Accumulated deficit			(876,043)	(742,616)	(707,787)	(678,563)	(594,162)	(565,222)	(540,041)
Accumulated other comprehensive loss:
Foreign currency translation adjustment			(7,786)	(5,461)	(3,173)	(6,565)	(3,833)	(1,341)	(462)
Unrealized pension actuarial losses, net of tax			(8,978)	(9,269)	(9,525)	(9,301)	(10,691)	(10,831)	(11,457)
Total accumulated other comprehensive loss			(16,764)	(14,730)	(12,698)	(15,866)	(14,524)	(12,172)	(11,919)
Total stockholders’ deficit			(373,311)	(239,071)	(204,264)	(181,006)	(93,199)	(62,108)	(35,131)
Total liabilities and stockholders’ deficit			1,541,507	1,679,250	1,702,889	1,639,782	1,662,346	1,728,901	1,665,935
Adjustment
Current assets
Cash and cash equivalents			(954)	(43)	297	10,591	514	1,178	2,128
Restricted cash			954	43	(297)	(10,591)	(514)	(1,178)	(2,128)
Prepaid expenses and other current assets			(78)	(78)	(78)	(78)
Total current assets			(78)	(78)	(78)	(78)
Goodwill			2,524
Intangible assets, net			(17,331)	(15,771)	(13,732)	(12,001)	(13,385)	(14,268)	(14,678)
Deferred income tax assets			120	120	120	120	796	796	796
Total assets			(14,765)	(15,729)	(13,690)	(11,959)	(12,589)	(13,472)	(13,882)
Current liabilities
Related party payables			9,933	11,433	7,628	7,628	5,036	5,036
Accrued liabilities			43,103	42,778	41,880	41,347	39,862	39,114	38,412
Accrued compensation and benefits			(2,183)	(2,275)	(2,216)	(2,372)	(2,511)	(2,496)	(2,459)
Current portion of long-term debts								3,500
Total current liabilities			50,853	51,936	47,292	46,603	42,387	45,154	35,953
Long-term debt, net of current maturities								(3,500)
Pension liabilities			2,183	2,275	2,216	2,372	2,511	2,496	2,459
Deferred income tax liabilities			2	2	2	2
Other long-term liabilities						(683)
Total liabilities			53,038	54,213	49,510	48,294	44,898	44,150	38,412
Commitments and Contingencies (Note 14)
Stockholders' equity (deficit)
Additional paid in capital			(36,566)	(36,566)	(36,566)	(36,566)	(36,566)	(36,566)	(36,566)
Accumulated deficit			(31,379)	(33,518)	(26,776)	(23,829)	(20,896)	(21,031)	(15,703)
Accumulated other comprehensive loss:
Foreign currency translation adjustment			142	142	142	142	(25)	(25)	(25)
Total accumulated other comprehensive loss			142	142	142	142	(25)	(25)	(25)
Total stockholders’ deficit			(67,803)	(69,942)	(63,200)	(60,253)	(57,487)	(57,622)	(52,294)
Total liabilities and stockholders’ deficit			$ (14,765)	$ (15,729)	$ (13,690)	$ (11,959)	$ (12,589)	$ (13,472)	$ (13,882)

Unaudited Quarterly Financial Data - Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Selected Quarterly Financial Results (Unaudited)
Revenue	$ 393,586	$ 373,545	$ 390,849	$ 404,357	$ 399,643	$ 383,030	$ 410,382	$ 393,167	$ 795,206	$ 803,549	$ 1,168,751	$ 1,186,579	$ 1,562,337	$ 1,586,222	$ 1,145,891
Cost of revenue (exclusive of depreciation and amortization)	314,858	295,445	303,831	310,601	306,654	296,685	315,167	294,897	614,432	610,064	909,877	906,749	1,224,735	1,213,403	827,544
Selling, general and administrative expenses (exclusive of depreciation and amortization)	49,678	48,347	51,162	49,677	48,114	44,897	46,378	45,519	100,839	91,897	149,186	136,794	198,864	184,908	220,955
Depreciation and amortization	24,421	25,079	24,779	26,624	33,684	33,410	34,744	36,239	51,403	70,982	76,482	104,393	100,903	138,077	98,890
Impairment of goodwill and other intangible assets	252,399	97,158			48,127						97,158		349,557	48,127	69,437
Related party expense	1,742	1,430	5,331	998	3,664	775	6,783	1,181	6,329	7,964	7,759	8,739	9,501	12,403	33,431
Operating loss	(249,512)	(93,914)	5,746	16,457	(40,600)	7,263	7,310	15,331	22,203	22,642	(71,711)	29,904	(321,223)	(10,696)	(104,366)
Other expense (income), net:
Interest expense, net	43,216	40,573	39,959	39,701	38,999	39,087	39,229	38,676	79,660	77,905	120,235	116,992	163,449	155,991	129,676
Debt modification and extinguishment costs			1,404			1,067			1,404		1,404	1,067	1,404	1,067	35,512
Sundry expense (income),net	(600)	165	(1,311)	2,715	905	(2,283)	(2,122)	229	1,404	(1,893)	1,569	(4,176)	(969)	3,271	(2,295)
Other expense (income), net	10,003	406	2,527	1,493	2,567	(1,069)	(907)	(3,621)	4,020	(4,528)	4,424	(5,597)	14,429	(3,030)	(1,297)
Net loss before income taxes	(302,131)	(135,058)	(36,833)	(27,452)	(83,071)	(29,539)	(28,890)	(19,953)	(64,285)	(48,842)	(199,343)	(78,382)	(501,474)	(161,453)	(270,552)
Income tax (expense) benefit	(1,953)	3,769	(4,738)	(4,720)	(3,442)	733	(1,619)	(4,025)	(9,458)	(5,644)	(5,689)	(4,911)	(7,642)	(8,353)	61,068
Net loss	(304,084)	(131,289)	(41,571)	(32,172)	(86,513)	(28,806)	(30,509)	(23,978)	(73,743)	(54,486)	(205,032)	(83,293)	(509,116)	(169,806)	(209,484)
Cumulative dividends for Series A Preferred Stock	(597)	(884)	(914)	(914)	(914)	(914)	(914)	(914)	(1,828)	(1,828)	(2,712)	(2,742)	(3,309)	(3,655)	(2,489)
Net loss attributable to common stockholders	$ (304,681)	$ (132,173)	$ (42,485)	$ (33,086)	$ (87,427)	$ (29,720)	$ (31,423)	$ (24,892)	(75,571)	(56,314)	(207,744)	(86,035)	$ (512,425)	$ (173,461)	$ (228,348)
Weighted average outstanding common shares	146,161,353	145,636,749	145,466,193	145,572,221	147,773,089	147,092,936	147,688,855	147,569,383
Earnings per share:
(Understatement) / overstatement of loss per share	$ (2.09)	$ (0.91)	$ (0.29)	$ (0.23)	$ (0.59)	$ (0.20)	$ (0.21)	$ (0.17)					$ (3.52)	$ (1.17)	$ (2.18)
ITPS
Selected Quarterly Financial Results (Unaudited)
Revenue	$ 306,665	$ 292,607	$ 309,840	$ 325,172	$ 324,267	$ 307,313	$ 330,131	$ 311,936					$ 1,234,284	$ 1,273,647	$ 820,677
Cost of revenue (exclusive of depreciation and amortization)	250,927	241,867	249,589	259,272	255,191	247,021	262,066	246,042					1,001,655	1,010,320	619,694
HS
Selected Quarterly Financial Results (Unaudited)
Revenue	69,806	62,132	63,440	61,343	56,293	56,776	56,314	58,632					256,721	228,015	233,595
Cost of revenue (exclusive of depreciation and amortization)	53,634	42,717	43,353	40,341	40,008	37,139	39,538	35,192					180,045	151,877	152,290
LLPS
Selected Quarterly Financial Results (Unaudited)
Revenue	17,115	18,806	17,569	17,842	19,083	18,941	23,937	22,599					71,332	84,560	91,619
Cost of revenue (exclusive of depreciation and amortization)	$ 10,297	10,861	10,889	10,988	11,455	12,525	13,563	13,663					$ 43,035	51,206	55,560
As previously reported
Selected Quarterly Financial Results (Unaudited)
Revenue		372,917	390,160	403,765	399,643	383,030	410,382	393,167	793,924	803,549	1,166,841	1,186,579		1,586,222	1,152,324
Cost of revenue (exclusive of depreciation and amortization)		291,222	298,006	306,882	306,192	295,936	313,954	293,792	604,888	607,746	896,110	903,682		1,209,874	829,143
Selling, general and administrative expenses (exclusive of depreciation and amortization)		50,372	51,564	49,949	47,420	44,913	46,723	45,595	101,513	92,318	151,884	137,231		184,651	220,955
Depreciation and amortization		27,114	27,191	28,020	36,057	35,041	36,368	38,019	55,211	74,386	82,326	109,428		145,485	98,890
Impairment of goodwill and other intangible assets		99,682			48,127						99,682			48,127	69,437
Related party expense		1,405	1,055	994	1,068	759	1,402	1,105	2,049	2,507	3,454	3,267		4,334	33,431
Operating loss		(96,878)	12,344	17,920	(39,221)	6,381	11,935	14,656	30,263	26,592	(66,615)	32,971		(6,249)	(99,532)
Other expense (income), net:
Interest expense, net		39,747	39,132	38,899	38,212	38,339	38,527	38,017	78,031	76,544	117,778	114,883		153,095	128,489
Debt modification and extinguishment costs			1,404			1,067			1,404		1,404	1,067		1,067	35,512
Sundry expense (income),net		(10)	(1,493)	2,531	1,689	(2,571)	(2,325)	(64)	1,038	(2,389)	1,028	(4,961)		3,271	(2,295)
Other expense (income), net		581	2,709	1,677	1,783	(781)	(704)	(3,328)	4,386	(4,032)	4,965	(4,813)		(3,030)	(1,297)
Net loss before income taxes		(137,196)	(29,408)	(25,187)	(80,905)	(29,673)	(23,563)	(19,969)	(54,596)	(43,531)	(191,790)	(73,205)		(154,110)	(264,531)
Income tax (expense) benefit		3,769	(4,738)	(4,720)	(3,496)	733	(1,619)	(4,025)	(9,458)	(5,644)	(5,689)	(4,911)		(8,407)	60,246
Net loss		(133,427)	(34,146)	(29,907)	(84,401)	(28,940)	(25,182)	(23,994)	(64,054)	(49,175)	(197,479)	(78,116)		(162,517)	(204,285)
Cumulative dividends for Series A Preferred Stock		(884)	(914)	(914)	(914)	(914)	(914)	(914)	(1,828)	(1,828)	(2,712)	(2,742)		(3,655)	(2,489)
Net loss attributable to common stockholders		(134,311)	(35,060)	(30,821)	(85,315)	(29,854)	(26,096)	(24,908)	(65,882)	(51,003)	(200,191)	(80,858)		$ (166,172)	$ (223,149)
Earnings per share:
(Understatement) / overstatement of loss per share														$ (1.09)	$ (2.08)
Adjustment
Selected Quarterly Financial Results (Unaudited)
Revenue		628	689	592					1,282		1,910				$ (6,433)
Cost of revenue (exclusive of depreciation and amortization)		4,223	5,825	3,719	462	749	1,213	1,105	9,544	2,318	13,767	3,067		$ 3,529	(1,599)
Selling, general and administrative expenses (exclusive of depreciation and amortization)		(2,025)	(402)	(272)	694	(16)	(345)	(76)	(674)	(421)	(2,698)	(437)		257
Depreciation and amortization		(2,035)	(2,412)	(1,396)	(2,373)	(1,631)	(1,624)	(1,780)	(3,808)	(3,404)	(5,844)	(5,035)		(7,408)
Impairment of goodwill and other intangible assets		(2,524)									(2,524)
Related party expense		25	4,276	4	2,596	16	5,381	76	4,280	5,457	4,305	5,472		8,069
Operating loss		2,964	(6,598)	(1,463)	(1,379)	882	(4,625)	675	(8,060)	(3,950)	(5,096)	(3,067)		(4,447)	(4,834)
Other expense (income), net:
Interest expense, net		826	827	802	787	748	702	659	1,629	1,361	2,457	2,109		2,896	1,187
Sundry expense (income),net		175	182	184	(784)	288	203	293	366	496	541	785
Other expense (income), net		(175)	(182)	(184)	784	(288)	(203)	(293)	(366)	(496)	(541)	(784)
Net loss before income taxes		2,138	(7,425)	(2,265)	(2,166)	134	(5,327)	16	(9,689)	(5,311)	(7,553)	(5,177)		(7,343)	(6,021)
Income tax (expense) benefit					54									54	822
Net loss		2,138	(7,425)	(2,265)	(2,112)	134	(5,327)	16	(9,689)	(5,311)	(7,553)	(5,177)		(7,289)	(5,199)
Net loss attributable to common stockholders		$ 2,138	$ (7,425)	$ (2,265)	$ (2,112)	$ 134	$ (5,327)	$ 16	$ (9,689)	$ (5,311)	$ (7,553)	$ (5,177)		$ (7,289)	$ (5,199)
Earnings per share:
(Understatement) / overstatement of loss per share														$ (0.08)	$ (0.10)

Unaudited Quarterly Financial Data - Statement of Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net Loss	$ (304,084)	$ (131,289)	$ (41,571)	$ (32,172)	$ (86,513)	$ (28,806)	$ (30,509)	$ (23,978)	$ (73,743)	$ (54,486)	$ (205,032)	$ (83,293)	$ (509,116)	$ (169,806)	$ (209,484)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		(2,325)	(2,288)	3,392	(2,566)	(2,492)	(879)	(268)	1,104	(1,147)	(1,221)	(3,639)	(906)	(6,204)	3,328
Unrealized pension actuarial gains (losses), net of tax		291	256	(224)	1,390	140	626	(403)	32	223	323	363	1,242	1,753	1,285
Total other comprehensive loss, net of tax		(133,323)	(43,603)	(29,004)	(87,689)	(31,158)	(30,762)	(24,649)	(72,607)	(55,410)	(205,930)	(86,569)	$ (508,780)	(174,257)	(204,871)
As previously reported
Net Loss		(133,427)	(34,146)	(29,907)	(84,401)	(28,940)	(25,182)	(23,994)	(64,054)	(49,175)	(197,479)	(78,116)		(162,517)	(204,285)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		(2,325)	(2,288)	3,392	(2,733)	(2,492)	(879)	(268)	1,104	(1,147)	(1,221)	(3,639)		(6,371)	3,353
Unrealized pension actuarial gains (losses), net of tax		291	256	(224)	1,390	140	626	(403)	32	223	323	363		1,753	1,285
Total other comprehensive loss, net of tax		(135,461)	(36,178)	(26,739)	(85,744)	(31,292)	(25,435)	(24,665)	(62,918)	(50,099)	(198,377)	(81,392)		(167,135)	(199,647)
Adjustment
Net Loss		2,138	(7,425)	(2,265)	(2,112)	134	(5,327)	16	(9,689)	(5,311)	(7,553)	(5,177)		(7,289)	(5,199)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments					167									167	(25)
Total other comprehensive loss, net of tax		$ 2,138	$ (7,425)	$ (2,265)	$ (1,945)	$ 134	$ (5,327)	$ 16	$ (9,689)	$ (5,311)	$ (7,553)	$ (5,177)		$ (7,122)	$ (5,224)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Unaudited Quarterly Financial Data - Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net loss				$ (32,172)				$ (23,978)	$ (73,743)	$ (54,486)	$ (205,032)	$ (83,293)	$ (509,116)	$ (169,806)	$ (209,484)
Adjustments to reconcile net loss
Depreciation and amortization	$ 24,421	$ 25,079	$ 24,779	26,624	$ 33,684	$ 33,410	$ 34,744	36,239	51,403	70,982	76,482	104,393	100,903	138,077	98,890
Original issue discount and debt issuance cost amortization				2,852				2,595	5,749	5,272	8,730	8,062	11,777	10,913	12,280
Impairment of goodwill and other intangible assets	252,399	97,158			48,127						97,158		349,557	48,127	69,437
Debt modification and extinguishment costs									1,049		1,049	103	1,049	103	34,459
Provision for doubtful accounts				800				481	3,334	1,857	4,402	2,470	4,304	2,767	500
Deferred income tax provision				1,076				835	4,623	705	1,632	(3,689)	1,093	3,220	(67,545)
Share-based compensation expense				2,798				959	5,459	2,895	6,903	4,516	7,827	7,647	6,743
Foreign currency remeasurement				35				(323)	288	(1,156)	(173)	(2,040)	(511)	(1,180)	1,382
Loss (gain) on sale of assets				54				279	85	1,395	123	2,048	556	2,687	556
Fair value adjustment for interest rate swap				1,677				(3,328)	4,385	(4,675)	4,965	(5,456)	4,337	(2,540)	(1,297)
Additions to outsource contract costs				(2,434)				(492)	(2,860)	(1,377)	(3,130)	(2,360)	(1,285)	(4,009)	(10,992)
Change in operating assets and liabilities, net of effect from acquisitions
Accounts receivable				(8,742)				(10,875)	624	(19,813)	3,501	(6,374)	4,410	(19,319)	(4,832)
Prepaid expenses and other assets				(632)				(5,567)	1,260	(1,603)	2,377	(5,770)	(4,825)	(2,820)	1,029
Accounts payable and accrued liabilities				(33,033)				(18,205)	(12,595)	42,038	(41,146)	(21,348)	(19,588)	8,815	77,171
Related party payables				(1,551)				(273)	(3,899)	2,578	(5,198)	1,347	(14,339)	918	4,907
Net cash provided by (used in) operating activities				(42,648)				(21,653)	(14,838)	44,612	(47,357)	(7,391)	(63,851)	23,600	51,777
Cash flows from investing activities
Purchase of property, plant and equipment				(5,572)				(5,957)	(9,072)	(10,244)	(10,797)	(14,077)	(14,360)	(20,072)	(14,440)
Additions to internally developed software				(1,879)				(1,092)	(4,007)	(2,115)	(5,074)	(3,080)	(6,182)	(7,438)	(7,843)
Proceeds from sale of assets				7				2	20	1,014	360	1,095	360	3,568	4,607
Cash paid in acquisition, net of cash received									(5,000)	(4,145)	(5,000)	(6,513)	(5,000)	(34,810)	(423,797)
Net cash provided by (used in) investing activities				(7,444)				(7,047)	(18,059)	(15,490)	(20,511)	(22,575)	(25,182)	(58,752)	(441,382)
Cash flows from financing activities
Repurchases of common stock				(2,872)					(3,480)	(3,479)	(3,480)	(4,899)	(3,480)	(7,221)	(249)
Borrowings from other loans				6,904				1,863	14,092	2,152	21,530	3,068	39,153	11,557	3,116
Net borrowings under factoring arrangement				1,118					2,426		(494)		3,307
Cash paid for withholding taxes on vested RSUs											(223)		(223)
Proceeds from senior secured term loans									29,850		29,850	30,000	29,850	30,000	343,000
Lease terminations				(45)				(26)	(95)	(56)	(314)	(213)	(318)	(592)	(157)
Cash paid for debt issuance costs									(7)		(7)	(130)	(7)	(130)	(38,784)
Cash paid for equity issuance costs								(7,500)		(7,500)		(7,500)		(7,500)	(149)
Borrowings from senior secured revolving facility				51,000				25,000	68,000	30,000	130,500	30,000	206,500	30,000	72,600
Repayments on senior secured revolving facility				(21,000)				(25,000)	(68,000)	(30,000)	(91,500)	(30,000)	(141,500)	(30,000)	(72,500)
Principal payments on finance lease obligations				(5,077)				(4,803)	(9,180)	(8,404)	(13,598)	(12,594)	(20,465)	(16,068)	(11,361)
Principal repayments on senior secured term loans and other loans				(10,498)				(2,947)	(21,248)	(6,043)	(32,996)	(9,053)	(53,678)	(12,651)	(27,955)
Net cash provided by (used in) financing activities				19,530				(13,413)	12,358	(23,330)	39,268	(1,321)	59,139	(2,605)	436,413
Effect of exchange rates on cash				(32)				55	111	(410)	(29)	(555)	139	122	429
Net decrease in cash and cash equivalents				(30,594)				(42,058)	(20,428)	5,382	(28,629)	(31,842)	(29,755)	(37,635)	47,237
Cash, restricted cash, and cash equivalents
Beginning of period	15,225	23,426	13,260	43,854	49,647	86,871	39,431	81,489	43,854	81,489	43,854	81,489	43,854	81,489	34,252
End of period	14,099	15,225	23,426	13,260	43,854	49,647	86,871	39,431	23,426	86,871	15,225	49,647	14,099	43,854	81,489
Supplemental cash flow data:
Income tax payments, net of refunds received				1,356				1,053	5,181	3,864	6,981	5,296	7,882	7,827	5,711
Interest paid				60,573				66,192	71,211	76,353	131,744	136,396	144,456	146,076	69,622
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements				4,097				4,432	6,778	7,787	9,352	9,318	10,732	14,920	6,973
Leasehold improvements funded by lessor										1,540		1,565		1,565	146
Accrued capital expenditures				809				1,101	1,083	1,144	2,388	1,994	1,402	2,820	1,621
As previously reported
Cash flows from operating activities
Net loss				(29,907)				(23,994)	(64,054)	(49,175)	(197,479)	(78,116)		(162,517)	(204,285)
Adjustments to reconcile net loss
Depreciation and amortization		27,114	27,191	28,020	36,057	35,041	36,368	38,019	55,211	74,386	82,326	109,428		145,485	98,890
Original issue discount and debt issuance cost amortization				2,852				2,595	5,749	5,272	8,730	8,062		10,913	12,280
Impairment of goodwill and other intangible assets		99,682			48,127						99,682			48,127	69,437
Debt modification and extinguishment costs									1,049		1,049
Provision for doubtful accounts				800				481	3,334	1,857	4,402	2,470		2,767	500
Deferred income tax provision				1,076				835	4,623	705	1,632	(3,689)		3,352	(66,723)
Share-based compensation expense				2,798				959	5,459	2,895	6,903	4,516		7,647	6,743
Foreign currency remeasurement				35				(323)	288	(1,156)	(173)	(2,040)		(1,180)	1,382
Loss (gain) on sale of assets				9				253	(10)	1,340	(191)	1,835		2,095	399
Fair value adjustment for interest rate swap				1,677				(3,328)	4,385	(4,675)	4,965	(5,456)		(2,540)	(1,297)
Change in operating assets and liabilities, net of effect from acquisitions
Accounts receivable				(8,742)				(10,875)	624	(19,813)	3,501	(6,374)		(19,319)	(4,832)
Prepaid expenses and other assets				(632)				(5,567)	1,260	(1,603)	2,377	(5,770)		(2,820)	2,628
Accounts payable and accrued liabilities				(33,574)				(18,864)	(14,991)	40,677	(43,861)	(23,457)		5,157	69,551
Related party payables				(1,551)				(273)	(7,703)	(2,458)	(7,502)	(3,689)		(6,710)	4,907
Net cash provided by (used in) operating activities				(37,139)				(20,082)	(4,776)	48,252	(33,639)	(2,280)		30,457	23,455
Cash flows from investing activities
Purchase of property, plant and equipment				(5,572)				(5,957)	(9,072)	(10,244)	(10,797)	(14,077)		(20,072)	(14,440)
Additions to internally developed software				(1,879)				(1,092)	(4,007)	(2,115)	(5,074)	(3,080)		(7,438)	(7,843)
Additions to outsourcing contract costs				(5,561)				(1,596)	(10,440)	(3,695)	(14,304)	(5,427)		(7,552)	(10,992)
Proceeds from sale of assets				7				2	20	1,014	360	1,095		3,568	4,607
Cash paid in acquisition, net of cash received									(5,000)	(4,145)	(5,000)	(6,513)		(34,810)	(423,797)
Net cash provided by (used in) investing activities				(13,005)				(8,643)	(28,499)	(19,185)	(34,815)	(28,002)		(66,304)	(452,374)
Cash flows from financing activities
Third party debt modification and extinguishment costs									355		355	1,067
Repurchases of common stock				(2,872)					(3,480)	(3,479)	(3,480)	(4,899)		(7,221)	(249)
Borrowings from other loans				566				1,863	1,544	2,152	1,728	3,068		11,557	3,116
Net borrowings under factoring arrangement				1,118					2,426		(494)
Cash paid for withholding taxes on vested RSUs											(223)
Proceeds from senior secured term loans									29,850		29,850	30,000		30,000	343,000
Cash paid for debt issuance costs									(362)		(362)	(1,094)		(1,094)	(39,837)
Cash paid for equity issuance costs								(7,500)		(7,500)		(7,500)		(7,500)	(149)
Borrowings from senior secured revolving facility				51,000				25,000	68,000	30,000	130,500	30,000		30,000	72,600
Repayments on senior secured revolving facility				(21,000)				(25,000)	(68,000)	(30,000)	(91,500)	(30,000)		(30,000)	(72,500)
Principal payments on finance lease obligations				(5,077)				(4,803)	(9,180)	(8,404)	(13,598)	(12,594)		(16,068)	(11,361)
Principal repayments on senior secured term loans and other loans				(4,153)				(2,947)	(8,417)	(6,043)	(12,922)	(9,053)		(12,651)	(27,955)
Net cash provided by (used in) financing activities				19,582				(13,387)	12,736	(23,274)	39,854	(1,005)		(1,910)	475,727
Effect of exchange rates on cash				(32)				55	111	(410)	(29)	(555)		122	429
Net decrease in cash and cash equivalents				(30,594)				(42,057)	(20,428)	5,383	(28,629)	(31,842)		(37,635)	47,237
Cash, restricted cash, and cash equivalents
Beginning of period	$ 15,225	23,426	13,260	43,854	49,647	86,872	39,432	81,489	43,854	81,489	43,854	81,489	$ 43,854	81,489	34,252
End of period		15,225	23,426	13,260	43,854	49,647	86,872	39,432	23,426	86,872	15,225	49,647		43,854	81,489
Supplemental cash flow data:
Income tax payments, net of refunds received				1,356				1,053	5,181	3,864	6,981	5,296		7,827	5,711
Interest paid				60,573				66,192	71,240	76,353	131,773	136,396		146,076	69,622
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements				4,097				4,432	6,778	7,787	9,352	9,318		14,920	6,973
Leasehold improvements funded by lessor										1,540		1,565		1,565	146
Accrued capital expenditures				809				1,101	1,083	1,144	1,083	1,994		2,820	1,621
Adjustment
Cash flows from operating activities
Net loss				(2,265)				16	(9,689)	(5,311)	(7,553)	(5,177)		(7,289)	(5,199)
Adjustments to reconcile net loss
Depreciation and amortization		(2,035)	$ (2,412)	(1,396)	$ (2,373)	(1,631)	(1,624)	(1,780)	(3,808)	(3,404)	(5,844)	(5,035)		(7,408)
Impairment of goodwill and other intangible assets		$ (2,524)									(2,524)
Debt modification and extinguishment costs									400			103		103	34,459
Deferred income tax provision														(132)	(822)
Loss (gain) on sale of assets				45				26	95	55	314	213		592	157
Additions to outsource contract costs				(2,434)				(492)	(2,860)	(1,377)	(3,130)	(2,360)		(4,009)	(10,992)
Change in operating assets and liabilities, net of effect from acquisitions
Prepaid expenses and other assets															(1,599)
Accounts payable and accrued liabilities				541				659	2,396	1,361	2,715	2,109		3,658	7,620
Related party payables									3,804	5,036	2,304	5,036		7,628
Net cash provided by (used in) operating activities				(5,509)				(1,571)	(10,062)	(3,640)	(13,718)	(5,111)		(6,857)	28,322
Cash flows from investing activities
Additions to outsourcing contract costs				5,561				1,596	10,440	3,695	14,304	5,427		7,552	10,992
Net cash provided by (used in) investing activities				5,561				1,596	10,440	3,695	14,304	5,427		7,552	10,992
Cash flows from financing activities
Third party debt modification and extinguishment costs									(355)		(355)	(1,067)
Borrowings from other loans				6,338					12,548		19,802
Lease terminations				(45)				(26)	(95)	(56)	(314)	(213)		(592)	(157)
Cash paid for debt issuance costs									355		355	964		964	1,053
Principal repayments on senior secured term loans and other loans				(6,345)					(12,831)		(20,074)
Net cash provided by (used in) financing activities				$ (52)				(26)	(378)	(56)	(586)	$ (316)		$ (695)	$ (39,314)
Net decrease in cash and cash equivalents								(1)		(1)
Cash, restricted cash, and cash equivalents
Beginning of period						$ (1)	(1)
End of period							$ (1)	$ (1)		$ (1)
Supplemental cash flow data:
Interest paid									$ (29)		(29)
Noncash investing and financing activities:
Accrued capital expenditures											$ 1,305

Unaudited Quarterly Financial Data - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Increase in pension liabilities	$ 25,681	$ 28,850	$ 27,141	$ 27,730	$ 27,641	$ 32,887	$ 32,967	$ 28,540	$ 27,141	$ 32,967	$ 28,850	$ 32,887	$ 25,681	$ 27,641
Increase in long term debt current	36,490	37,237	38,929	32,821	29,237	20,062	19,799	21,170	38,929	19,799	37,237	20,062	36,490	29,237
Decrease in long term debt non current	1,398,385	1,367,583	1,331,898	1,336,152	1,306,423	1,307,884	1,278,197	1,277,029	1,331,898	1,278,197	1,367,583	1,307,884	1,398,385	1,306,423
Goodwill	359,771	611,982	708,246	708,285	708,258	749,762	748,708	747,325	708,246	748,708	611,982	749,762	359,771	708,258	$ 747,325
Additions to outsource contract costs				2,434				492	2,860	1,377	3,130	2,360	1,285	4,009	10,992
Depreciation and amortization	24,421	25,079	24,779	26,624	33,684	33,410	34,744	36,239	51,403	70,982	76,482	104,393	100,903	138,077	98,890
Increase in revenue	393,586	373,545	390,849	404,357	399,643	383,030	410,382	393,167	795,206	803,549	1,168,751	1,186,579	1,562,337	1,586,222	1,145,891
Cost of revenue	314,858	295,445	303,831	310,601	306,654	296,685	315,167	294,897	614,432	610,064	909,877	906,749	1,224,735	1,213,403	827,544
Related party expense	1,742	1,430	5,331	998	3,664	775	6,783	1,181	6,329	7,964	7,759	8,739	9,501	12,403	33,431
Decrease to selling, general and administrative expense	49,678	48,347	51,162	49,677	48,114	44,897	46,378	45,519	100,839	91,897	149,186	136,794	198,864	184,908	220,955
Increase in sundry expense (income), net	(600)	165	(1,311)	2,715	905	(2,283)	(2,122)	229	1,404	(1,893)	1,569	(4,176)	(969)	3,271	(2,295)
Decrease to other expense (loss)	$ (10,003)	(406)	(2,527)	(1,493)	(2,567)	1,069	907	3,621	(4,020)	4,528	(4,424)	5,597	(14,429)	3,030	1,297
Foreign currency translation adjustments		(2,325)	(2,288)	3,392	(2,566)	(2,492)	(879)	(268)	1,104	(1,147)	(1,221)	(3,639)	(906)	(6,204)	3,328
Increase/ (decrease) to net cash flows provided operating activities				(42,648)				(21,653)	(14,838)	44,612	(47,357)	(7,391)	(63,851)	23,600	51,777
Increase/ (decrease) to net cash flows provided investing activities				(7,444)				(7,047)	(18,059)	(15,490)	(20,511)	(22,575)	(25,182)	(58,752)	(441,382)
Increase of borrowings of other loans				6,904				1,863	14,092	2,152	21,530	3,068	39,153	11,557	3,116
Cashflows provided by financing activities				19,530				(13,413)	12,358	(23,330)	39,268	(1,321)	59,139	(2,605)	436,413
Decrease in third party debt modification									1,049		1,049	103	1,049	103	34,459
Principal repayment on other loans				10,498				2,947	21,248	6,043	32,996	9,053	53,678	12,651	27,955
Cash paid for debt issuance costs									7		7	130	7	130	38,784
Reductions													$ 348,557	44,427
Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Misstatements in the outsourcing contract cost adjustment				0				0	0	0	0	0
Increase in pension liabilities		2,183	2,275	2,216	2,372	2,511	2,496	2,459	2,275	2,496	2,183	2,511		2,372
Increase in long term debt current							3,500			3,500
Decrease in long term debt non current							(3,500)			(3,500)
Goodwill		2,524									2,524
Additions to outsource contract costs				2,434				492	2,860	1,377	3,130	2,360		4,009	10,992
Depreciation and amortization		(2,035)	(2,412)	(1,396)	(2,373)	(1,631)	(1,624)	(1,780)	(3,808)	(3,404)	(5,844)	(5,035)		(7,408)
Increase in revenue		628	689	592					1,282		1,910				(6,433)
Cost of revenue		4,223	5,825	3,719	462	749	1,213	1,105	9,544	2,318	13,767	3,067		3,529	(1,599)
Related party expense		25	4,276	4	2,596	16	5,381	76	4,280	5,457	4,305	5,472		8,069
Decrease to selling, general and administrative expense		(2,025)	(402)	(272)	694	(16)	(345)	(76)	(674)	(421)	(2,698)	(437)		257
Increase in sundry expense (income), net		175	182	184	(784)	288	203	293	366	496	541	785
Decrease to other expense (loss)		175	182	184	(784)	288	203	293	366	496	541	784
Foreign currency translation adjustments					167									167	(25)
Increase/ (decrease) to net cash flows provided operating activities				(5,509)				(1,571)	(10,062)	(3,640)	(13,718)	(5,111)		(6,857)	28,322
Increase/ (decrease) to net cash flows provided investing activities				5,561				1,596	10,440	3,695	14,304	5,427		7,552	10,992
Increase of borrowings of other loans				6,338					12,548		19,802
Cashflows provided by financing activities				(52)				(26)	(378)	(56)	(586)	(316)		(695)	(39,314)
Decrease in third party debt modification									400			103		103	34,459
Principal repayment on other loans				6,345					12,831		20,074
Cash paid for debt issuance costs									(355)		(355)	(964)		(964)	(1,053)
Appraisal Action Liability Adjustments
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Increase in accrued liabilities											43,100			40,600	37,800
Appraisal Action Liability Adjustments \| Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Increase in accrued liabilities		43,100	42,300	41,500		39,900	39,100	38,400
Increase in interest expense		800	800	800	800	700	700	700	1,600	1,400	2,500	2,100
Outsourced Contract Cost Adjustments
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Decrease to intangible assets			15,800
Depreciation and amortization									(3,800)
Increase/ (decrease) to net cash flows provided operating activities														(11,400)	(11,000)
Increase/ (decrease) to net cash flows provided investing activities														7,600	11,000
Outsourced Contract Cost Adjustments \| Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Decrease to intangible assets		17,300		13,700		13,400	14,300	14,700
Additions to outsource contract costs				2,400				500	2,900	1,400	3,100	2,400
Depreciation and amortization		2,700	1,700	1,400	2,400	1,600	1,600	1,800	3,100	3,400	5,800	5,000
Increase in revenue		3,600		3,100
Cost of revenue			4,500		1,200	700	1,200	1,100	7,600		11,200	3,000
Increase/ (decrease) to net cash flows provided operating activities				(3,800)				2,300	6,700	4,800	8,900	7,400
Revenue Recognition Adjustments
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Increase in revenue															6,400
Cost of revenue															1,600
Revenue Recognition Adjustments \| Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Increase in revenue		600	700	600					1,300		1,900				$ (6,400)
Cost of revenue		600	700	600					1,300		1,900
Expense Reimbursement Adjustments
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Related party expense			4,300									5,500
Expense Reimbursement Adjustments \| Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Increase in related party payables					2,600			100						8,100
Related party expense			2,100				5,400		4,300	5,500				2,400
Other Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Increase in accrued liabilities														700
Decrease in cash and cash equivalents														10,600
Decrease in accrued compensation and benefits														2,400
Increase in pension liabilities					2,400									2,400
Other Adjustment \| Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Increase in accrued liabilities			500	400
Decrease in cash and cash equivalents		1,000	40	300		500	1,200	2,100
Increase in restricted cash		1,000	40	300		500	1,200	2,100
Decrease in accrued compensation and benefits		2,200	2,300	2,200		2,500	2,500	2,500
Increase in deferred income tax assets						800	800	800
Increase in pension liabilities		2,200	2,300	2,200		2,500	2,500	2,500	2,300	2,500	2,200	2,500
Increase in long term debt current							3,500			3,500
Decrease in long term debt non current							3,500			3,500
Goodwill		2,500									2,500
Depreciation and amortization		700	700						700
Cost of revenue			700		700				700		700
Related party expense											4,300
Decrease to selling, general and administrative expense		2,000	400	300	700		300	100	700	400	2,700	400
Increase in sundry expense (income), net		200	200	200	800	300	200	300	400	500	500	800
Decrease to other expense (loss)		$ 200	$ 200	200	$ 800	$ 300	$ 200	300	$ 400	500	500	$ 800
Lease Termination \| Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Increase/ (decrease) to net cash flows provided operating activities				50				30		60	300			200
Cashflows provided by financing activities				50				$ (30)		$ 60	300			200
Grossing Up of Borrowings and Pay Downs of Working Capital Loans [Member] \| Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Increase/ (decrease) to net cash flows provided operating activities														100
Increase of borrowings of other loans				6,300							19,800
Cashflows provided by financing activities														100
Decrease in third party debt modification														1,100
Increase in third party debt modification														100
Principal repayment on other loans				$ 6,300							20,100
Cash paid for debt issuance costs														$ 1,000
Cash Flow Classification Adjustment [Member] \| Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Decrease in third party debt modification											400
Cash paid for debt issuance costs											$ 400

Subsequent Events (Details) - USD ($) $ in Millions	May 18, 2020	Mar. 16, 2020	Jan. 10, 2020
Subsequent Events
Minimum liquidity amount	$ 35.0
Source HOV Tax, LLC \| Gainline Source Intermediate Holdings LLC
Subsequent Events
Procceds from membership interest sale		$ 2.0
Source HOV Tax, LLC \| Gainline Source Intermediate Holdings LLC \| Merco Holdings, LLC
Subsequent Events
Membership interests		40.0
Subsequent Events
Subsequent Events
Accounts Receivable from Securitization			$ 160.0
Accounts Receivable, Securitization, Term			5 years
Minimum liquidity for A/R facility			$ 60.0
Minimum liquidity amount	$ 35.0
Subsequent Events \| Source HOV Tax, LLC \| Gainline Source Intermediate Holdings LLC
Subsequent Events
Procceds from membership interest sale		2.0
Subsequent Events \| Source HOV Tax, LLC \| Gainline Source Intermediate Holdings LLC \| Merco Holdings, LLC
Subsequent Events
Membership interests		$ 40.0