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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2017	Feb. 12, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	EPAM Systems, Inc.
Trading Symbol	EPAM
Entity Central Index Key	0001352010
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		53,039,832
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Document Period End Date	Dec. 31, 2017
Document Type	10-K
Amendment Flag	false
Entity Public Float			$ 4,178

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 582,585	$ 362,025
Accounts receivable, net of allowance of $1,186 and $1,434, respectively	265,639	199,982
Unbilled revenues	86,500	63,325
Prepaid and other current assets, net of allowance of $45 and $644, respectively	23,196	18,493
Employee loans, current, net of allowance of $0 and $0, respectively	2,113	2,726
Total current assets	960,033	646,551
Property and equipment, net	86,419	73,616
Employee loans, noncurrent, net of allowance of $0 and $0, respectively	2,097	3,252
Intangible assets, net	44,511	51,260
Goodwill	119,531	109,289
Deferred tax assets	24,974	31,005
Other noncurrent assets, net of allowance of $140 and $132, respectively	12,691	10,838
Total assets	1,250,256	925,811
Current liabilities
Accounts payable	5,574	3,213
Accrued expenses and other current liabilities	89,812	49,895
Due to employees	38,757	32,203
Deferred compensation due to employees	5,964	5,900
Taxes payable, current	40,860	25,008
Total current liabilities	180,967	116,219
Long-term debt	25,033	25,048
Taxes payable, noncurrent	59,874	0
Other noncurrent liabilities	9,435	3,132
Total liabilities	275,309	144,399
Commitments and contingencies (Note 15)
Stockholders’ equity
Common stock, $0.001 par value; 160,000,000 authorized; 53,003,420 and 51,117,422 shares issued, 52,983,685 and 51,097,687 shares outstanding at December 31, 2017 and December 31, 2016, respectively	53	50
Additional paid-in capital	473,874	374,907
Retained earnings	518,820	444,320
Treasury stock	(177)	(177)
Accumulated other comprehensive loss	(17,623)	(37,688)
Total stockholders’ equity	974,947	781,412
Total liabilities and stockholders’ equity	$ 1,250,256	$ 925,811

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets
Accounts receivable allowance	$ 1,186	$ 1,434
Prepaid and other assets allowance	45	644
Employee loans current allowance	0	0
Noncurrent assets
Employee loans long-term allowance	0	0
Other long-term assets allowance	$ 140	$ 132
Stockholders' equity
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	160,000,000	160,000,000
Common stock, shares issued	53,003,420	51,117,422
Common stock, shares outstanding	52,983,685	51,097,687

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Revenues	$ 1,450,448	$ 1,160,132	$ 914,128
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization)	921,352	737,186	566,913
Selling, general and administrative expenses	324,855	264,658	222,759
Depreciation and amortization expense	28,562	23,387	17,395
Other operating expenses, net	2,733	1,205	1,094
Income from operations	172,946	133,696	105,967
Interest and other income, net	4,601	4,848	4,731
Foreign exchange loss	(3,242)	(12,078)	(4,628)
Income before provision for income taxes	174,305	126,466	106,070
Provision for income taxes	101,545	27,200	21,614
Net income	72,760	99,266	84,456
Foreign currency translation adjustments	20,065	(2,538)	(13,096)
Comprehensive income	$ 92,825	$ 96,728	$ 71,360
Net income per share:
Basic (in dollars per share)	$ 1.40	$ 1.97	$ 1.73
Diluted (in dollars per share)	$ 1.32	$ 1.87	$ 1.62
Shares used in calculation of net income per share:
Basic (in shares)	52,077,011	50,309,362	48,720,844
Diluted (in shares)	54,984,173	53,215,392	51,985,873

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Common Stock 2012 Directors Plan	Common Stock Restricted Stock Units (RSUs)	Additional Paid-in Capital	Additional Paid-in Capital Restricted Stock Units (RSUs)	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive (Loss)/ Income
Balance, beginning of period at Dec. 31, 2014	$ 464,050	$ 48			$ 229,501		$ 260,598		$ (22,054)
Balance, beginning of period (in shares) at Dec. 31, 2014		48,303,811
Treasury stock, beginning of period at Dec. 31, 2014								$ (4,043)
Treasury stock, beginning of period (in shares) at Dec. 31, 2014								444,487
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued in connection with acquisition (Note 3)	5,081				1,118			$ 3,963
Stock issued in connection with acquisition (Note 3) (in shares)		435,462						435,462
Forfeiture of stock issued in connection with acquisition					13			$ (13)
Forfeiture of stock issued in connection with acquisition (in shares)		(1,482)						1,482
Stock-based compensation expense	43,120				43,120
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract]
Stock issued (in shares)			5,295
Stock units vested (in shares)				17,625
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures [Abstract]
Stock units vested	574					$ 574
Proceeds from stock option exercises	20,675	$ 1			20,674
Proceeds from stock options exercises (in shares)		1,405,826
Excess tax benefits	8,363				8,363
Foreign currency translation adjustments	(13,096)								(13,096)
Net income	84,456						84,456
Balance, end of period at Dec. 31, 2015	613,223	$ 49			303,363		345,054		(35,150)
Balance, end of period (in shares) at Dec. 31, 2015		50,166,537
Treasury stock, end of period at Dec. 31, 2015								$ (93)
Treasury stock, end of period (in shares) at Dec. 31, 2015								10,507
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Forfeiture of stock issued in connection with acquisition					84			$ (84)
Forfeiture of stock issued in connection with acquisition (in shares)		(9,228)						9,228
Stock-based compensation expense	46,100				46,100
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract]
Stock issued (in shares)			6,510
Stock units vested, net of shares withheld for employee taxes (in shares)				38,064
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures [Abstract]
Stock units vested, net of shares withheld for employee taxes	2,069					2,069
Proceeds from stock option exercises	18,028	$ 1			18,027
Proceeds from stock options exercises (in shares)		895,804
Excess tax benefits	5,264				5,264
Foreign currency translation adjustments	(2,538)								(2,538)
Net income	99,266						99,266
Balance, end of period at Dec. 31, 2016	$ 781,412	$ 50			374,907		444,320		(37,688)
Balance, end of period (in shares) at Dec. 31, 2016	51,097,687	51,097,687
Treasury stock, end of period at Dec. 31, 2016								$ (177)
Treasury stock, end of period (in shares) at Dec. 31, 2016								19,735
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 48,173				48,173
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures [Abstract]
Stock units vested (in shares)				140,043
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures [Abstract]
Stock units withheld for employee taxes	(3,300)					$ (3,300)
Stock units withheld for employee taxes (in shares)				(43,479)
Proceeds from stock option exercises	54,097	$ 3			54,094
Proceeds from stock options exercises (in shares)		1,789,434
Foreign currency translation adjustments	20,065								20,065
Cumulative effect of the adoption of ASU	1,740
Cumulative effect of the adoption of ASU \| ASU 2016-09	1,740
Net income	72,760						72,760
Balance, end of period at Dec. 31, 2017	$ 974,947	$ 53			$ 473,874		$ 518,820		$ (17,623)
Balance, end of period (in shares) at Dec. 31, 2017	52,983,685	52,983,685
Treasury stock, end of period at Dec. 31, 2017								$ (177)
Treasury stock, end of period (in shares) at Dec. 31, 2017								19,735

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 72,760	$ 99,266	$ 84,456
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28,562	23,387	17,395
Bad debt expense	51	1,539	1,407
Deferred taxes	12,561	(3,304)	(15,328)
Stock-based compensation expense	52,407	49,244	45,833
Impairment charges and acquisition related adjustments	0	0	(1,183)
Excess tax benefit on stock-based compensation plans	0	(5,264)	(8,363)
Other	(4,010)	6,228	3,883
(Increase)/decrease in operating assets:
Accounts receivable	(58,745)	(30,612)	(47,694)
Unbilled revenues	(22,743)	34,777	(38,076)
Prepaid expenses and other assets	3,605	(4,791)	(574)
Increase/(decrease) in operating liabilities:
Accounts payable	1,221	741	(2,781)
Accrued expenses and other liabilities	37,282	(13,926)	25,694
Due to employees	1,933	5,261	2,752
Taxes payable	70,480	2,271	8,972
Net cash provided by operating activities	195,364	164,817	76,393
Cash flows used in investing activities:
Purchases of property and equipment	(29,806)	(29,317)	(13,272)
Payment for construction of corporate facilities	0	0	(4,692)
Employee housing loans issued	(648)	(2,006)	(2,054)
Proceeds from repayments of employee housing loans	2,565	2,177	2,249
Restricted cash and time deposits, net	8	29,595	(29,944)
Acquisition of businesses, net of cash acquired (Note 3)	(6,840)	(5,500)	(76,908)
Other investing activities, net	(1,452)	(4,271)	(873)
Net cash used in investing activities	(36,173)	(9,322)	(125,494)
Cash flows from financing activities:
Proceeds related to stock option exercises	53,984	17,996	20,675
Excess tax benefit on stock-based compensation plans	0	5,264	8,363
Payments of withholding taxes related to net share settlements of restricted stock units	(3,194)	(539)	0
Proceeds from debt (Note 12)	25,000	20,000	35,000
Repayment of debt (Note 12)	(25,103)	(30,129)	0
Acquisition of businesses, deferred consideration (Note 3)	0	(2,260)	(30,274)
Other financing activities, net	(941)	135	0
Net cash provided by financing activities	49,746	10,467	33,764
Effect of exchange rate changes on cash and cash equivalents	11,623	(3,386)	(5,748)
Net increase/(decrease) in cash and cash equivalents	220,560	162,576	(21,085)
Cash and cash equivalents, beginning of period	362,025	199,449	220,534
Cash and cash equivalents, end of period	582,585	362,025	199,449
Supplemental disclosures of cash flow information:
Income taxes	26,669	37,488	25,071
Bank interest	548	566	124
Supplemental disclosure of non-cash operating activities
Prepaid and other current assets write-off related to vendor advance	0	0	741
Supplemental disclosure of non-cash investing and financing activities
Deferred consideration payable	$ 0	$ 0	$ 603

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

EPAM is a leading global provider of digital platform engineering and software development services to clients located around the world, primarily in North America, Europe, Asia and Australia. The Company has expertise in various industries, including software and hi-tech, financial services, media and entertainment, travel and hospitality, retail and distribution and life sciences and healthcare. The Company is incorporated in Delaware with headquarters in Newtown, PA.

Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM Systems, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated.

Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the financial statements.

Change in Presentation of Certain Financial Information — During the first quarter of 2017, the Company changed the presentation of geographic area information about its consolidated revenues. Historically, information about geographic location of revenues excluded reimbursable expenses and other revenues, which primarily consist of travel and entertainment costs that are chargeable to clients. Effective January 1, 2017, the Company began reporting reimbursable expenses and other revenues based on location of clients to which these costs are chargeable and allocating them to respective geographic locations. These changes did not result in adjustments to previously reported consolidated revenues in the Company’s financial statements and were applied retrospectively effective January 1, 2015. Comparative information for the years ended December 31, 2016 and 2015 follows:



	Year Ended December 31, 2016
	As Reported				After Reclassification
	(in thousands except percentages)
United States	$	605,856	52.2	%	$	611,392	52.7	%
United Kingdom	174,719		15.1	%	177,194		15.3	%
Switzerland	122,399		10.6	%	122,919		10.6	%
Canada	58,742		5.1	%	59,189		5.1	%
Germany	43,216		3.7	%	43,621		3.8	%
Russia	40,866		3.5	%	40,944		3.5	%
Sweden	22,945		2.0	%	23,838		2.1	%
Hong Kong	20,333		1.8	%	21,010		1.8	%
Netherlands	16,762		1.4	%	17,521		1.5	%
Belgium	8,505		0.7	%	8,627		0.7	%
Ireland	5,152		0.4	%	5,167		0.4	%
China	4,445		0.4	%	4,479		0.4	%
Italy	3,970		0.3	%	4,052		0.3	%
United Arab Emirates	3,486		0.3	%	3,615		0.3	%
Other locations	16,215		1.4	%	16,564		1.5	%
Reimbursable expenses and other revenues	12,521		1.1	%	—		—	%
Total	$	1,160,132	100.0	%	$	1,160,132	100.0	%



	Year Ended December 31, 2015
	As Reported				After Reclassification
	(in thousands except percentages)
United States	$	427,433	46.8	%	$	431,992	47.3	%
United Kingdom	164,301		18.0	%	166,418		18.2	%
Switzerland	111,353		12.2	%	111,686		12.2	%
Canada	57,643		6.3	%	58,319		6.4	%
Germany	36,089		3.9	%	36,403		4.0	%
Russia	36,506		4.0	%	36,585		4.0	%
Sweden	10,589		1.2	%	10,775		1.2	%
Hong Kong	23,117		2.5	%	23,285		2.5	%
Netherlands	9,989		1.1	%	10,373		1.1	%
Belgium	7,916		0.9	%	8,113		0.9	%
Ireland	5,437		0.6	%	5,536		0.6	%
Italy	2,318		0.3	%	2,342		0.3	%
China	817		0.1	%	817		0.1	%
Other locations	11,109		1.1	%	11,484		1.2	%
Reimbursable expenses and other revenues	9,511		1.0	%	—		—	%
Total	$	914,128	100.0	%	$	914,128	100.0	%

Revenue Recognition — The Company recognizes revenue when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the sales price is fixed or determinable; and (4) collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue reported.

The Company derives its revenues from a variety of service offerings, which represent specific competencies of its IT professionals. Contracts for these services have different terms and conditions based on the scope, deliverables, and complexity of the engagement, which require management to make judgments and estimates in determining the appropriate revenue recognition. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. If there is an uncertainty about the project completion or receipt of payment for the services, revenue is deferred until the uncertainty is sufficiently resolved. At the time revenue is recognized, the Company provides for any contractual deductions and reduces the revenue accordingly. The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the condensed consolidated statements of income and comprehensive income.

The Company defers amounts billed to its clients for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. Unbilled revenue is recorded when services have been provided but billed subsequent to the period end in accordance with the contract terms.

The majority of the Company’s revenues (90.3% of revenues in 2017, 88.2% in 2016 and 85.8% in 2015) are generated under time-and-material contracts where revenues are recognized as services are performed with the corresponding cost of providing those services reflected as cost of revenues. The majority of such revenues are billed using hourly, daily or monthly rates as actual time is incurred on the project.

Revenues from fixed-price contracts (8.3% of revenues in 2017, 10.4% in 2016 and 12.8% in 2015) include fixed-price maintenance and support arrangements, which may exceed one year in duration, as well as fixed-price application development arrangements. Revenues from maintenance and support arrangements are generally recognized ratably over the expected service period. Revenues from fixed-price application development arrangements are primarily determined using the proportional performance method. In cases where final acceptance of the product, system, or solution is specified by the client, and the acceptance criteria are not objectively determinable to have been met as the services are provided, revenues are deferred until all acceptance criteria have been met. In the absence of a sufficient basis to measure progress towards completion, revenue is recognized upon receipt of final acceptance from the client. Assumptions, risks and uncertainties inherent in the estimates used in the application of the proportional performance method of accounting could affect the amount of revenues, receivables and deferred revenues at each reporting period.

Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries, bonuses, fringe benefits, stock-based compensation expense, project related travel costs and fees for subcontractors that are assigned to client projects. Salaries and other compensation expenses of our revenue generating professionals are reported as cost of revenues regardless of whether the employees are actually performing client services during a given period.

Selling, General and Administrative Expenses — Consists of expenses associated with promoting and selling our services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation expense, commissions, travel, legal and audit services, insurance, operating leases, advertising and other promotional activities. In addition, we pay a membership fee of 1% of revenues generated in Belarus to the administrative organization of the Belarus Hi-Tech Park. Furthermore, the Company has issued stock to the sellers and/or personnel in connection with business acquisitions and has been recognizing stock-based compensation expense in the periods after the closing of these acquisitions as part of selling, general and administrative expenses.

Fair Value of Financial Instruments — The Company makes assumptions about fair values of its financial assets and liabilities in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurement,” and utilizes the following fair value hierarchy in determining inputs used for valuation:

Level 1 — Quoted prices for identical assets or liabilities in active markets.

Level 2 — Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves.

Level 3 — Unobservable inputs reflecting management’s view about the assumptions that market participants would use in pricing the asset or liability.

Where the fair values of financial assets and liabilities recorded in the consolidated balance sheets cannot be derived from an active market, they are determined using a variety of valuation techniques. These valuation techniques include a net present value technique, comparison to similar instruments with market observable inputs, option pricing models and other relevant valuation models. To the extent possible, observable market data is used as inputs into these models but when it is not feasible, a degree of judgment is required to establish fair values.

The Company’s contingent liabilities measured at fair value on a recurring basis are comprised of performance-based awards issued to certain former owners of acquired businesses in exchange for future services. During a performance measurement period, performance-based awards are valued using significant inputs that are not observable in the market, which are defined as Level 3 inputs according to fair value measurement accounting. The Company estimates the fair value of contingent liabilities based on certain performance milestones of the acquired businesses and estimated probabilities of achievement, then discounts the liabilities to present value using the Company’s cost of debt for the cash component of contingent consideration, and a risk-free rate for the stock component of a contractual contingency. The Company believes its estimates and assumptions are reasonable, however, there is significant judgment involved. Changes in the fair value of contingent consideration liabilities primarily result from changes in the timing and amount of specific milestone estimates and changes in probability assumptions with respect to the likelihood of achieving the various earnout criteria.

Changes in the fair value of these liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 16 “Fair Value Measurements.”

Employee Loans — The Company issues employee housing loans in Belarus, relocation loans to assist employees with relocation needs in connection with intra-company transfers and loans for the purchase of automobiles in India. There are no loans issued to principal officers, directors, and their affiliates. The Company intends to hold all employee loans until their maturity. Interest income is reported using the effective interest method. Where applicable, loan origination fees, net of direct origination costs, are deferred and recognized in interest income over the life of the loan.

The Employee Housing Program (the “Housing Program”) provides employees with loans to purchase housing in Belarus. The housing loans are measured using the Level 3 inputs within the fair value hierarchy because they are valued using significant unobservable inputs. These housing loans are measured at fair value upon initial recognition through the market approach under ASC Topic 820, “Fair Value Measurement” and subsequently carried at amortized cost less allowance for loan losses, if any. Any difference between the carrying value and the fair value of a loan upon initial recognition is charged to expense.

Business Combinations — The Company accounts for its business combinations using the acquisition accounting method, which requires it to determine the fair value of net assets acquired and the related goodwill and other intangible assets in accordance with the FASB ASC Topic 805, “Business Combinations.” The Company identifies and attributes fair values and estimated lives to the intangible assets acquired and allocates the total cost of an acquisition to the underlying net assets based on their respective estimated fair values. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and involves the use of significant estimates, including projections of future cash inflows and outflows, discount rates, asset lives and market multiples. There are different valuation models for each component, the selection of which requires considerable judgment. These determinations will affect the amount of amortization expense recognized in future periods. The Company bases its fair value estimates on assumptions it believes are reasonable, but recognizes that the assumptions are inherently uncertain.

All acquisition-related costs, other than the costs to issue debt or equity securities, are accounted for as expenses in the period in which they are incurred. Changes in fair value of contingent consideration arrangements that are not measurement period adjustments are recognized in earnings. Payments to settle contingent consideration, if any, are reflected in cash flows from financing activities and the changes in fair value are reflected in cash flows from operating activities in the Company’s consolidated statements of cash flows.

The acquired assets typically consist of customer relationships, trade names, non-competition agreements, and workforce and as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets.

Cash and Cash Equivalents — Cash equivalents are short-term, highly liquid investments that are readily convertible into cash, with maturities of three months or less at the date acquired. As of December 31, 2017 and 2016 the Company had no cash equivalents.

Accounts Receivable — Accounts receivable are stated net of allowance for doubtful accounts. Outstanding accounts receivable are reviewed periodically and allowances are provided when management believes it is probable that such balances will not be collected within a reasonable time. The allowance for doubtful accounts is determined by evaluating the relative creditworthiness of each client, historical collections experience and other information, including the aging of the receivables. Accounts receivable are generally written off when they are deemed uncollectible. Bad debts are recorded based on historical experience and management’s evaluation of accounts receivable.

Property and Equipment — Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets generally ranging from two to fifty years. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. Maintenance and repairs are expensed as incurred.

Long-Lived Assets — Long-lived assets, such as property and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the carrying value of an asset is more than the sum of the undiscounted expected future cash flows, an impairment is recognized. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. Property and equipment held for disposal are carried at the lower of the current carrying value or fair value less estimated costs to sell. The Company did not incur any impairment of long-lived assets during the years ended December 31, 2017, 2016 and 2015.

Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill and other intangible assets that have indefinite useful lives are accounted for in accordance with the FASB ASC 350, “Intangibles — Goodwill and Other.” The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31st, and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is an operating segment or one level below. The Company does not have intangible assets other than goodwill that have indefinite useful lives.

Income Taxes — The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes.

The realizability of deferred tax assets is primarily dependent on future earnings. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. Any reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings. See Note 10 “Income Taxes” for further information.

Earnings per Share (“EPS”) — Basic EPS is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method.

Stock-Based Compensation — The Company recognizes the cost of its equity-classified stock-based incentive awards based on the fair value of the award at the date of grant, net of estimated forfeitures. The cost is expensed evenly over the service period. The service period is the period over which the employee performs the related services, which is normally the same as the vesting period. Quarterly, the forfeiture assumption is adjusted to the actual forfeiture rate and such change may affect the timing of the total amount of expense recognized over the vesting period. Equity-based awards that do not require future service are expensed immediately. Equity-based awards that do not meet the criteria for equity classification are recorded as liabilities and adjusted to fair value at the end of each reporting period.

Off-Balance Sheet Financial Instruments — The Company uses the FASB ASC Topic 825, “Financial Instruments.” to identify and disclose off-balance sheet financial instruments, which include credit instruments, such as commitments to make employee loans and related guarantees, standby letters of credit and certain guarantees issued under customer contracts. The face amount for these items represents the exposure to loss, before considering available collateral or the borrower’s ability to repay. Loss contingencies arising from off-balance sheet financial instruments are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company does not believe such matters exist that would have a material effect on the financial statements.

Foreign Currency Translation — Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income (loss).

For consolidated foreign subsidiaries whose functional currency is the U.S. dollar, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at current exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur.

Risks and Uncertainties — As a result of its global operations, the Company may be subject to certain inherent risks.

Concentration of Credit — Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, trade accounts receivable and unbilled revenues. The Company maintains cash and cash equivalents and short-term deposits with financial institutions. The Company determined that the Company’s credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. As of December 31, 2017, $240,148 of total cash, including time deposits and restricted cash, was held in CIS countries, with $196,656 of that total in Belarus. Banking and other financial systems in the CIS region are less developed and regulated than in some more developed markets, and bank deposits made by corporate entities in the CIS region are not insured.

Changes in the market behavior or decisions of the Company’s clients could adversely affect the Company’s results of operations. During the years ended December 31, 2017, 2016 and 2015, revenues including reimbursable expenses and other revenues from our top five customers were $348,219, $329,324 and $299,655, respectively, representing 24.0%, 28.4% and 32.8%, respectively, of total revenues in the corresponding periods. Revenues including reimbursable expenses and other revenues from our top ten customers were $491,742, $445,814 and $403,052 in 2017, 2016 and 2015, respectively, representing 33.9%, 38.4% and 44.1%, respectively, of total revenues in the corresponding periods.

Foreign currency risk — The Company’s global operations are conducted predominantly in U.S. dollars. Other than U.S. dollars, the Company generates a significant portion of revenues in various currencies, principally, euros, British pounds sterling, Canadian dollars, Swiss francs and Russian rubles and incurs expenditures principally in Hungarian forints, Russian rubles, Polish zlotys, Swiss francs, British pounds, Indian rupees and China yuan renminbi associated with its delivery centers.

The Company’s international operations expose it to foreign currency exchange rate changes that could impact translations of foreign denominated assets and liabilities into U.S. dollars and future earnings and cash flows from transactions denominated in different currencies. The Company is exposed to fluctuations in foreign currency exchange rates primarily related to accounts receivable and unbilled revenues from sales in foreign currencies and cash outflows for expenditures in foreign currencies. The Company’s results of operations, primarily revenues and expenses denominated in foreign currencies, can be affected if any of the currencies, which we use materially in our business, appreciate or depreciate against the U.S. dollar.

Interest rate risk — The Company’s exposure to market risk is influenced primarily by changes in interest rates received on cash and cash equivalent deposits and paid on any outstanding balance on the Company’s revolving line of credit, which is subject to a variety of rates depending on the type and timing of funds borrowed (See Note 12 “Long-Term Debt”). The Company does not use derivative financial instruments to hedge the risk of interest rate volatility.

RECENT ACCOUNTING PRONOUNCEMENTS RECENT ACCOUNTING PRONOUNCEMENTS

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Recent Accounting Pronouncements

Adoption of New Accounting Standards

Unless otherwise discussed below, the adoption of new accounting standards did not have an impact on the Company’s consolidated financial position, results of operations, and cash flows.

Stock-Based Compensation — Effective January 1, 2017, the Company adopted Accounting Standard Update (“ASU”) No. 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The provisions of the new guidance affecting the Company require excess tax benefits and tax deficiencies to be recorded in the income statement when stock-based awards vest or are settled; remove the requirement to include hypothetical excess tax benefits in the application of the treasury stock method when computing earnings per share; and provide for a new policy election to either: (1) continue applying forfeiture rate estimates in the determination of compensation cost, or (2) account for forfeitures as a reduction of share-based compensation cost as they occur. The new guidance also requires cash flows related to excess tax benefits to be classified as an operating activity in the statement of cash flows and now requires shares withheld for tax withholding purposes to be classified as a financing activity.

As a result of this adoption:


•	the Company recognized a $1,740 increase in retained earnings as of January 1, 2017 for previously unrecognized tax benefits using the modified retrospective method of transition, as required by the standard;


•	the Company recognized discrete tax benefits of $9,307 in the provision for income taxes within the consolidated statement of income and comprehensive income during the year ended December 31, 2017, related to excess tax benefits upon vesting and exercise of stock-based awards;


•	the Company elected to adopt the cash flow presentation of the excess tax benefits prospectively where these benefits are classified along with other income tax cash flows as operating cash flows. Accordingly, prior period information has not been restated;


•	the Company elected to continue to estimate the number of stock-based awards expected to forfeit, rather than electing to account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period; and


•	the Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share for the year ended December 31, 2017.

Simplifying the Measurement for Goodwill — Effective January 1, 2017, the Company early adopted the new accounting guidance simplifying the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance is adopted on a prospective basis. The adoption of this amended guidance did not have an impact on the Company’s financial results.

Pending Accounting Standards

From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that the Company will adopt according to the various timetables the FASB specifies. Unless otherwise discussed below, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption.

Revenue Recognition — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 as amended, will replace most existing revenue recognition guidance in GAAP and requires expanded disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The standard allows for two methods of adoption: the full retrospective method, which requires the standard to be applied to each prior period presented, or the modified retrospective method, which requires the cumulative effect of adoption to be recognized as an adjustment to opening retained earnings in the period of adoption as well as incremental disclosure comparing results presented under Topic 606 to results that would have been presented utilizing current accounting. The Company adopted Topic 606 as amended on January 1, 2018 using the modified retrospective method.

The Company completed its assessment of the impact of Topic 606 and implemented its transition plan, which included making necessary changes to policies, processes, internal controls and system enhancements to generate the information necessary to comply with the new standard. Based on the assessment procedures completed, the Company recognized a one-time immaterial adjustment to retained earnings as of January 1, 2018 and does not expect a significant change in the timing or pattern of revenue recognition after adoption. Due to the complexity of certain of the Company’s contracts, actual revenue recognition treatment required under the new standard depends on contract-specific terms and may vary from the accounting under the current guidance in some instances. For most of the Company’s time-and-materials contracts, EPAM expects to continue to recognize revenues as services are performed consistent with the Company’s current policy. For fixed-price contracts, the Company generally expects to continue to recognize revenues over time based on the measured progress of satisfaction of the performance obligations which is consistent with the Company’s current proportional performance method. The most impactful changes upon adoption included a delay in revenue recognition related to (1) cash collections on contracts when collectability is uncertain and (2) earlier recognition of revenue from certain software licenses. Beginning in the first quarter of 2018, EPAM expects to provide incremental disclosure in its consolidated financial statements related to revenue recognition including disaggregated information related to the Company’s key verticals, contract balances, remaining performance obligations, and significant judgments and estimates.

Leases — Effective January 1, 2019, the Company will be required to adopt the new guidance of ASC Topic 842, Leases (with early adoption permitted effective January 1, 2018). This amendment supersedes previous accounting guidance (Topic 840) and requires all leases, with the exception of leases with a term of twelve months or less, to be recorded on the balance sheet as lease assets and lease liabilities. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The transition guidance in Topic 842 also provides specific guidance for the amounts previously recognized in accordance with the business combinations guidance for leases. The Company expects to adopt this standard on January 1, 2019. The Company has not yet completed its assessment of the impact of the new guidance on its consolidated financial statements or concluded on whether it will elect to apply practical expedients.

Derivatives and Hedging — Effective January 1, 2019, with early adoption permitted in any interim or annual period, the Company will be required to adopt ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The new guidance is intended to simplify and amend hedge accounting and reporting to better align and disclose the economic results of an entity’s risk management activities in its financial statements. The ASU makes more financial and non-financial hedging strategies eligible for hedge accounting. It also changes how companies assess effectiveness and amends the presentation and disclosure requirements by eliminating the requirement to separately measure and report hedge ineffectiveness and generally requires companies, for qualifying hedges, to present the entire change in the fair value of a hedging instrument in the same income statement line as the hedged item. The guidance also eases documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. The standard requires entities to apply the amended presentation and disclosure guidance only prospectively as of the period of adoption. Currently, the Company does not apply hedge accounting and has not yet concluded on when it will adopt the standard.

Measurement of Credit Losses on Financial Instruments — Effective January 1, 2020, the Company will be required to adopt the amended guidance of ASC Topic 326, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, (with early adoption permitted effective January 1, 2019.) The amendments in this update change how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including trade receivables) that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. Entities are required to adopt the standard using a modified-retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The Company has not yet completed its assessment of the impact of the new guidance on its consolidated financial statements or concluded on when it will adopt the standard.

ACQUISITIONS

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

ACQUISITIONS

The Company’s acquisitions allow it to expand into desirable geographic locations, complement its existing vertical markets, increase revenue and create new service offerings. Acquisitions were settled in cash and/or stock where a portion of the settlement price may have been deferred. For some transactions, purchase agreements contain contingent consideration in the form of an earnout obligation. During the years ended December 31, 2017 and 2016, the Company completed acquisitions with aggregated purchase prices of $6,980 and $5,580, respectively. These acquisitions individually and in the aggregate are not material to the Company’s consolidated financial statements.

NavigationArts — On July 10, 2015, the Company acquired all of the outstanding equity of NavigationArts, Inc. and its subsidiary, NavigationArts, LLC (collectively “NavigationArts”). The U.S.-based NavigationArts provided digital consulting, architecture and content solutions and was regarded as a leading user-experience agency. The acquisition of NavigationArts added approximately 90 design consultants to the Company’s headcount. In connection with the NavigationArts acquisition the Company paid $28,747 as cash consideration. In the first quarter of 2016, the Company made a 338(h)(10) election to treat the NavigationArts acquisition as an asset purchase for tax purposes. As a result, during the second quarter of 2016 the Company paid an additional $1,797 to the sellers of NavigationArts, as provided for in the stock purchase agreement. The acquired goodwill that is deductible for tax purposes was $23,794 as of the date of the acquisition.

AGS — On November 16, 2015, the Company acquired all of the outstanding equity of Alliance Consulting Global Holdings, Inc including its wholly-owned direct and indirect subsidiaries Alliance Global Services, Inc., Alliance Global Services, LLC, companies organized under the laws of the U.S., and Alliance Global Services IT India, a company organized under the laws of India (collectively “AGS”). AGS provided software product development services and test automation solutions and had multiple locations in the United States and India. The acquisition of AGS added 1,151 IT professionals to the Company’s headcount in the United States and India. In connection with the AGS acquisition the Company paid $51,717 as cash consideration.

The following is a summary of the fair values of the net assets acquired through each respective acquisition during the year ended December 31, 2015:



	NavigationArts		AGS		Total
Cash and cash equivalents	$	1,317	$	1,727	$	3,044
Accounts receivable and other current assets	3,920		9,934		13,854
Property and equipment and other long-term assets	230		1,600		1,830
Deferred tax assets	—		5,722		5,722
Acquired intangible assets	2,800		22,700		25,500
Goodwill	23,794		24,454		48,248
Total assets acquired	32,061		66,137		98,198
Accounts payable and accrued expenses	871		2,760		3,631
Bank loans and other long-term liabilities	—		295		295
Deferred revenue	50		1,049		1,099
Due to employees	596		2,342		2,938
Deferred tax liabilities	—		7,974		7,974
Total liabilities assumed	1,517		14,420		15,937
Net assets acquired	$	30,544	$	51,717	$	82,261

The following table presents the fair values and useful lives of intangible assets acquired through each respective acquisition during the year ended December 31, 2015:



	NavigationArts			AGS
	Weighted Average Useful Life (in years)	Amount		Weighted Average Useful Life (in years)	Amount
Customer relationships	10	$	2,800	10	$	22,700
Total		$	2,800		$	22,700

GOODWILL AND INTANGIBLE ASSETS - NET

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS - NET

GOODWILL AND INTANGIBLE ASSETS — NET

Goodwill by reportable segment was as follows:



	North America			Europe			Total
Balance as of January 1, 2016	$	81,464		$	34,466		$	115,930
NavigationArts purchase accounting adjustments	2,030			—			2,030
AGS purchase accounting adjustments	(9,361		)	—			(9,361		)
Other acquisitions	2,404			177			2,581
Other acquisitions purchase accounting adjustments	395			87			482
Effect of currency translation	(120		)	(2,253		)	(2,373		)
Balance as of December 31, 2016	76,812			32,477			109,289
Other acquisitions	199			4,533			4,732
Other acquisitions purchase accounting adjustments	(285		)	2,100			1,815
Effect of currency translation	564			3,131			3,695
Balance as of December 31, 2017	$	77,290		$	42,241		$	119,531

Excluded from the table above are the Russia and Other segments for which the allocated goodwill was fully impaired for the periods presented. The Russia segment had accumulated goodwill impairment losses of $2,241 as of December 31, 2017, 2016 and 2015. The Other segment had accumulated goodwill impairment losses of $1,697 as of December 31, 2017, 2016 and 2015. There were no accumulated goodwill impairment losses in the North America or Europe reportable segments as of December 31, 2017, 2016 or 2015.

Intangible assets other than goodwill as of December 31, 2017 and 2016 were as follows:



	As of December 31, 2017
	Weighted average life at acquisition (in years)	Gross carrying amount		Accumulated amortization			Net carrying amount
Customer relationships	10	$	66,646	$	(22,200	)	$	44,446
Trade names	5	4,099		(4,034		)	65
Total		$	70,745	$	(26,234	)	$	44,511



	As of December 31, 2016
	Weighted average life at acquisition (in years)	Gross carrying amount		Accumulated amortization			Net carrying amount
Customer relationships	10	$	65,409	$	(15,133	)	$	50,276
Trade names	5	5,622		(4,661		)	961
Non-competition agreements	4	756		(733		)	23
Total		$	71,787	$	(20,527	)	$	51,260

All of the intangible assets other than goodwill have finite lives and as such are subject to amortization. Recognized amortization expense for each of the years ended December 31 is presented in the table below:



	For the Years Ended December 31,
	2017		2016		2015
Customer relationships	$	6,643	$	6,858	$	3,961
Trade names	896		1,139		1,280
Non-competition agreements	23		173		175
Total	$	7,562	$	8,170	$	5,416

Estimated amortization expense related to the Company’s existing intangible assets for the next five years ending December 31 and thereafter is as follows:



	Amount
2018	$	6,661
2019	6,661
2020	6,661
2021	6,661
2022	6,508
Thereafter	11,359
Total	$	44,511

- Definition

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

+ References + Details

PREPAID AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID AND OTHER CURRENT ASSETS

Prepaid and other current assets consisted of the following:



	December 31, 2017		December 31, 2016
Taxes receivable	$	12,172	$	6,054
Prepaid expenses	5,939		5,462
Other current assets, net of allowance of $45 and $644, respectively	5,085		6,977
Total	$	23,196	$	18,493

EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES

12 Months Ended

Dec. 31, 2017

Loans and Leases Receivable, Related Parties Disclosure [Abstract]

EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES

In 2012, the Board of Directors of the Company approved the Employee Housing Program (the “Housing Program”), which provides employees with loans to purchase housing in Belarus. The housing is sold directly to employees by independent third parties. The Housing Program was designed as a retention mechanism for the Company’s employees in Belarus and is available to full-time qualified employees who have been with the Company for at least three years. The aggregate maximum lending limit of the program is $10,000, with no individual outstanding loans exceeding $50. In addition to the housing loans, the Company issues relocation loans in connection with intra-company transfers, as well as certain other individual loans.

During the year ended December 31, 2017, loans issued by the Company under the Housing Program were denominated in U.S. dollars with a 5-year term and carried an interest rate of 7.5%.

As of December 31, 2017 and 2016, categories of employee loans included in the loan portfolio were as follows:



	December 31, 2017		December 31, 2016
Housing loans	$	3,513	$	5,448
Relocation and other loans	697		530
Total employee loans	4,210		5,978
Less:
Allowance for loan losses	—		—
Total loans, net of allowance for loan losses	$	4,210	$	5,978

Movement of employee loans balances during the years ended December 31, 2017, 2016 and 2015 was as follows:



	Amount
Employee loans at January 1, 2015	$	6,515
Employee loans issued	3,427
Employee loans repaid	(3,547		)
Employee loans written-off	(7		)
Changes in interest and penalties accrued	(32		)
Effect of net foreign currency exchange rate changes	(18		)
Employee loans at December 31, 2015	$	6,338
Employee loans issued	2,960
Employee loans repaid	(3,273		)
Changes in interest and penalties accrued	(35		)
Effect of net foreign currency exchange rate changes	(12		)
Employee loans at December 31, 2016	$	5,978
Employee loans issued	1,875
Employee loans repaid	(3,615		)
Employee loans written-off	(22		)
Changes in interest and penalties accrued	(18		)
Effect of net foreign currency exchange rate changes	12
Employee loans at December 31, 2017	$	4,210

- Definition

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

+ References + Details

PROPERTY AND EQUIPMENT - NET

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT - NET

PROPERTY AND EQUIPMENT — NET

Property and equipment, net consisted of the following:



	Weighted Average Useful Life (in years)	December 31, 2017			December 31, 2016
Computer hardware	3	$	62,132		$	49,599
Building	49	34,058			34,012
Furniture and fixtures	7	18,071			13,178
Leasehold improvements	6	13,186			7,944
Office equipment	7	10,825			9,416
Purchased computer software	3	8,379			4,601
Land improvements	20	1,474			1,467
		148,125			120,217
Less accumulated depreciation and amortization		(61,706		)	(46,601		)
Total		$	86,419		$	73,616

Depreciation and amortization expense related to property and equipment was $21,000, $15,217 and $11,979 during the years ended December 31, 2017, 2016 and 2015, respectively.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following:



	December 31, 2017		December 31, 2016
Accrued compensation expense and related costs	$	67,034	$	33,404
Deferred revenue	4,498		3,319
Other current liabilities and accrued expenses	18,280		13,172
Total	$	89,812	$	49,895

TAXES PAYABLE

12 Months Ended

Dec. 31, 2017

Taxes Payable [Abstract]

TAXES PAYABLE

Current taxes payable consisted of the following:



	December 31, 2017		December 31, 2016
Income taxes payable	$	9,488	$	4,000
Value added taxes payable	16,696		10,644
Payroll, social security, and other taxes payable	14,676		10,364
Total	$	40,860	$	25,008

As a result of the U.S. Tax Cuts and Jobs Act enacted on December 22, 2017, the Company recorded income taxes payable of $64,321 to be paid over the next 8 years. Of this amount, $59,175 is classified as Taxes payable, noncurrent as of December 31, 2017. See Note 10 “Income Taxes” for additional discussion of the impact of the Act.

There were no noncurrent taxes payable as of December 31, 2016.

INCOME TAXES

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

Income/(loss) before provision for income taxes

Income before provision for income taxes included losses from domestic operations and income from foreign operations based on geographic location as disclosed in the table below:



	For the Years Ended December 31,
	2017			2016			2015
Income/(loss) before provision for income taxes:
Domestic	$	(6,595	)	$	(9,300	)	$	(7,687	)
Foreign	180,900			135,766			113,757
Total	$	174,305		$	126,466		$	106,070

Provision for income taxes

The provision for income taxes consists of the following:



	For the Years Ended December 31,
	2017			2016			2015
Current
Federal	$	65,571		$	13,324		$	19,851
State	(204		)	(63		)	2,563
Foreign	23,617			17,243			14,528
Deferred
Federal	7,235			(3,581		)	(13,361		)
State	(90		)	312			(1,891		)
Foreign	5,416			(35		)	(76		)
Total	$	101,545		$	27,200		$	21,614

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (“U.S. Tax Act”). The U.S. Tax Act significantly changes U.S. corporate income tax laws including a reduction of the U.S. corporate income tax rate from 35.0% to 21.0% effective January 1, 2018 and the creation of a territorial tax system with a one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax. In addition, the U.S. Tax Act creates new taxes on certain foreign-sourced earnings and certain related party payments, which are referred to as the global intangible low-taxed income tax (“GILTI”) and the base erosion and anti-abuse tax, respectively.

Due to the timing of the enactment and the complexity involved in applying the provisions of the U.S. Tax Act, we have made reasonable estimates of the effects and recorded provisional amounts in our financial statements as of December 31, 2017. As we collect and prepare necessary data and interpret the U.S. Tax Act and any additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, and further refine our calculations, we may make adjustments to the provisional amounts recorded. We expect to complete our analysis during the second half of 2018. Any adjustments during this measurement period will be included in the provision for income taxes in the reporting period when such adjustments are determined.

The one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax requires us to pay U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8.0% on the remaining earnings. As a result, the Company recorded a provisional income tax expense and corresponding income taxes payable of $64,321 to be paid over the next 8 years. Of this amount, $59,175 is classified as Taxes payable, noncurrent as of December 31, 2017. In addition, the Company provisionally reduced its net deferred tax assets by $10,311 reflecting the impact of the change in the U.S. statutory tax rate from 35.0% to 21.0% in the periods in which the net deferred tax assets are expected to be realized as a result of the U.S. Tax Act.

The U.S. Tax Act subjects a U.S. shareholder to GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, 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. Given the complexity of the GILTI provisions, we are still evaluating the effects of the GILTI provisions and have not yet determined our accounting policy. At December 31, 2017, because we are still evaluating the GILTI provisions and our analysis of future taxable income that is subject to GILTI, we are unable to make a reasonable estimate and have not reflected any adjustments related to GILTI in our financial statements.

As of December 31, 2017 and in light of the U.S. Tax Act, the Company reassessed its accumulated foreign earnings and determined $97,000 of its accumulated earnings in Belarus are no longer indefinitely reinvested. As a result, the Company recorded a charge of $4,850 in its provision for income taxes during the year ended December 31, 2017 reflecting the withholding tax that will be payable to Belarus when the earnings are expatriated. As of December 31, 2017, the Company has determined that all other accumulated foreign earnings of $642,149 are expected to be indefinitely reinvested. Due to the enactment of the U.S. Tax Act and the one-time transition tax on accumulated foreign subsidiary earnings, these accumulated foreign earnings are no longer expected to be subject to U.S. federal income tax if repatriated but could be subject to state and foreign income and withholding taxes.

Effective tax rate reconciliation

The reconciliation of the provision for income taxes at the federal statutory income tax rate to our effective income tax rate is as follows:



	For the Years Ended December 31,
	2017			2016			2015
Provision for income taxes at federal statutory rate	$	61,007		$	44,263		$	37,125
Increase/ (decrease) in taxes resulting from:
Impact from U.S. Tax Act	74,632			—			—
Foreign tax expense and tax rate differential	(39,997		)	(33,477		)	(31,094		)
Effect of change in accounting for excess tax benefits relating to stock-based compensation (Note 2)	(9,307		)	—			—
Stock-based compensation expense	6,908			9,535			7,591
Subsidiary withholding tax liability	4,850			—			—
Effect of permanent differences	3,205			5,042			7,314
Change in valuation allowance	783			—			—
Change in foreign tax rates	29			—			9
State taxes, net of federal benefit	(116		)	1,192			341
Other	(449		)	645			328
Provision for income taxes	$	101,545		$	27,200		$	21,614

The Company’s worldwide effective tax rate for years ended December 31, 2017, 2016 and 2015 was 58.3%, 21.5% and 20.4%, respectively. The income tax in 2017 was unfavorably impacted by U.S. Tax Reform which was partially offset by the recognition of excess tax benefits following the adoption of ASU No. 2016-09 on January 1, 2017. See Note 2 “Recent Accounting Pronouncements” for further information.

In Belarus, member technology companies of High-Technologies Park have a full exemption from Belarus income tax. This tax holiday was recently extended through January 2049. The aggregate dollar benefits derived from this tax holiday approximated $15.5 million, $13.6 million and $20.8 million for the years ended December 31, 2017, 2016 and 2015, respectively. The benefit the tax holiday had on diluted net income per share approximated $0.28, $0.26 and $0.40 for the years ended December 31, 2017, 2016 and 2015, respectively.

Deferred Income Taxes

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:



	December 31, 2017			December 31, 2016
Deferred tax assets:
Property and equipment	$	170		$	203
Intangible assets	1,456			1,525
Accrued expenses	4,392			9,172
Net operating loss carryforward	5,069			5,368
Deferred revenue	1,280			1,165
Stock-based compensation	16,197			19,701
Other assets	1,415			17
Deferred tax assets	$	29,979		$	37,151
Less: valuation allowance	(924		)	—
Total deferred tax assets	$	29,055		$	37,151

Deferred tax liabilities:
Property and equipment	$	1,868		$	1,735
Intangible assets	3,077			4,969
Accrued revenue and expenses	1,352			500
Subsidiary withholding tax liability	4,850			—
Stock-based compensation	1,498			1,606
Other liabilities	239			314
Total deferred tax liabilities	$	12,884		$	9,124
Net deferred tax assets	$	16,171		$	28,027

As of December 31, 2017 and 2016 the Company classified $8,803 and $2,979, respectively, of deferred tax liabilities as Other noncurrent liabilities in the consolidated balance sheet.

Included in the stock-based compensation expense deferred tax asset at December 31, 2017 and 2016 is $8,512 and $11,471, respectively that is related to acquisitions and is amortized for tax purposes over a 10 to 15-year period.

As of December 31, 2017, our domestic and foreign net operating loss (“NOL”) carryforwards for income tax purposes were approximately $6,264 and $14,792, respectively. If not utilized, the domestic NOL carryforwards will begin to expire in 2021. Our foreign NOL carryforwards include $2,454 from jurisdictions with no expiration date, $5,338 that will expire in various countries by 2026, as well as $1,183 and $5,817, for which the Company has recorded a valuation allowance and will expire in 2021 and 2022, respectively. The valuation allowance maintained by the Company as of December 31, 2017 relates primarily to net operating loss carryforwards in certain non-U.S. jurisdictions that we believe are not likely to be realized. The net change in the valuation allowance in the current year was $924.

Uncertain Tax Positions

The liability for unrecognized tax benefits is included in noncurrent taxes payable, within the consolidated balance sheets at December 31, 2017 and 2016. At December 31, 2017 and 2016, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state tax positions) was $699 and $66, respectively. These amounts represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods.

The Company’s policy is to recognize interest and penalties related to uncertain tax positions as a component of its provision for income taxes. The Company accrued $148 of interest and penalties resulting from such unrecognized tax benefits at December 31, 2017. There was no accrued interest and penalties resulting from such unrecognized tax benefits at December 31, 2016 and December 31, 2015.

The beginning to ending reconciliation of the gross unrecognized tax benefits is as follows:



	For the Years Ended December 31,
	2017			2016		2015
Balance at January 1	$	66		$	62	$	200
Increases in tax positions in current year	240			4		—
Increases in tax positions in prior year	459			—		—
Decreases due to settlement	(66		)	—		(138		)
Balance at December 31	$	699		$	66	$	62

There were no tax positions for which it was reasonably possible that unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date.

The Company files income tax returns in the United States and in various state, local and foreign jurisdictions. The Company’s significant tax jurisdictions are the United States, Canada, Russia, Denmark, Germany, Ukraine, the United Kingdom, Hungary, Switzerland, and India. The tax years subsequent to 2014 remain open to examination by the Internal Revenue Service and generally, the tax years subsequent to 2014 remain open to examination by various state and local taxing authorities and various foreign taxing authorities.

EMPLOYEE BENEFITS	12 Months Ended
EMPLOYEE BENEFITS	Dec. 31, 2017
Retirement Benefits [Abstract]
EMPLOYEE BENEFITS	EMPLOYEE BENEFITS The Company offers a 401(k) retirement plan, which is a tax-qualified self-funded retirement plan covering substantially all of the Company’s U.S. employees. Under this plan, employees may elect to defer their current compensation up to the statutory limit defined by the Internal Revenue Service. The Company provides discretionary matching contributions to the plan of up to 2% of the employee’s eligible compensation as defined by the plan. Employer contributions are subject to a two-year vesting schedule. Employer contributions charged to expense for the years ended December 31, 2017, 2016 and 2015, were $2,331, $1,934 and $740, respectively. The Company does not maintain any defined benefit pension plans or any non-qualified deferred compensation plans.

LONG-TERM DEBT	12 Months Ended
LONG-TERM DEBT	Dec. 31, 2017
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Revolving Line of Credit — On September 12, 2014, the Company entered into a revolving loan agreement (the “2014 Credit Facility”) with PNC Bank, National Association; Santander Bank, N.A; and Silicon Valley Bank (collectively the “Lenders”). Under the 2014 Credit Facility, the Company’s borrowing capacity was set at $100,000, with potential to increase it to $200,000 if certain conditions were met. Borrowings under the 2014 Credit Facility were denominated in U.S. dollars or, up to a maximum of $50,000 in British pounds sterling, Canadian dollars, euros or Swiss francs (or other currencies as may be approved by the Lenders). Borrowings under the 2014 Credit Facility bore interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. The base rate was equal to the highest of (a) the Federal Funds Open Rate, plus 0.5%, (b) the Prime Rate, and (c) the Daily LIBOR Rate, plus 1.0%. On May 24, 2017, the Company terminated the 2014 Credit Facility and entered into a new unsecured credit facility (the “2017 Credit Facility”) with PNC Bank, National Association; PNC Capital Markets LLC; Wells Fargo Bank, National Association; Santander Bank, N.A.; Fifth Third Bank and Citibank N.A. (collectively the “Lenders”). The 2017 Credit Facility provides for a borrowing capacity of $300,000, with potential to increase the credit facility up to $400,000 if certain conditions are met. The 2017 Credit Facility matures on May 24, 2022. Borrowings under the 2017 Credit Facility may be denominated in U.S. dollars or up to a maximum of $100,000 in British pounds sterling, Canadian dollars, euros or Swiss francs or other currencies as may be approved by the administrative agent and the lenders. Borrowings under the 2017 Credit Facility bear interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. The base rate is equal to the highest of (a) the Overnight Bank Funding Rate, plus 0.5%, (b) the Prime Rate, or (c) the Daily LIBOR Rate, plus 1.0%. The 2017 Credit Facility includes customary business and financial covenants that may restrict the Company’s ability to make or pay dividends (other than certain intercompany dividends) if a potential or an actual event of default has occurred or would be triggered. As of December 31, 2017, the Company was in compliance with all covenants contained in the 2017 Credit Facility. As of December 31, 2017, the outstanding debt of the Company under the 2017 Credit Facility was $25,000 at an interest rate of 2.6%. As of December 31, 2016, the outstanding debt of the Company under the 2014 Credit Facility was $25,000. Both borrowings are subject to a LIBOR-based interest rate, which resets regularly at issuance, based on lending terms. As of December 31, 2017 and 2016, the Company had $1,294 and $942 irrevocable standby letters of credit, respectively. As of December 31, 2017, the borrowing capacity of the Company under the 2017 Credit Facility was $273,706. As of December 31, 2016, the borrowing capacity of the Company under the 2014 Credit Facility was $74,058.

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income and comprehensive income:



	For the Years Ended December 31,
	2017		2016		2015
Cost of revenues	$	20,868	$	16,619	$	13,695
Selling, general and administrative expenses — Acquisition related	8,139		12,884		18,690
Selling, general and administrative expenses — All other	23,400		19,741		13,448
Total	$	52,407	$