Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Nov. 08, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Exela Technologies, Inc.
Entity Central Index Key	0001620179
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		150,578,451

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 27,368	$ 8,361
Restricted cash	37,315	25,892
Accounts receivable, net of allowance for doubtful accounts of $3,942 and $3,219 respectively	227,704	138,421
Inventories, net	13,634	11,195
Prepaid expenses and other current assets	24,263	12,202
Total current assets	330,284	196,071
Property, plant and equipment, net	133,617	81,600
Goodwill	776,010	373,291
Intangible assets, net	514,873	298,739
Deferred income tax assets	7,880	9,654
Other noncurrent assets	15,573	10,131
Total assets	1,778,237	969,486
Current liabilities
Accounts payable	82,676	42,212
Related party payables	14,474	9,344
Income tax payable	770	1,031
Accrued liabilities	75,259	29,492
Accrued compensation and benefits	52,955	31,200
Customer deposits	34,268	18,729
Deferred revenue	17,633	17,235
Obligation for claim payment	37,315	25,892
Current portion of capital lease obligations	15,246	6,507
Current portion of long-term debt	18,662	55,833
Total current liabilities	349,258	237,475
Long-term debt, net of current maturities	1,278,306	983,502
Capital lease obligations, net of current maturities	25,242	18,439
Pension liability	29,717	28,712
Deferred income tax liabilities	35,124	26,223
Long-term income tax liability	3,063	3,063
Other long-term liabilities	15,811	11,973
Total liabilities	1,736,521	1,309,387
Commitment and Contingencies
Stockholders' equity (deficit)
Common stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 150,578,451 shares issued and outstanding at September 30, 2017 and 64,024,557 shares issued and outstanding at December 31, 2016;	15
Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized and 6,194,233 shares issued and outstanding at September 30, 2017 and no shares issued or outstanding at December 31, 2016	1
Additional paid in capital	482,018	(57,389)
Equity-based compensation	31,788	27,342
Accumulated deficit	(455,976)	(293,968)
Accumulated other comprehensive loss:
Foreign currency translation adjustment	(2,291)	(3,547)
Unrealized pension actuarial losses, net of tax	(13,839)	(12,339)
Total accumulated other comprehensive loss	(16,130)	(15,886)
Total stockholders' equity (deficit)	41,716	(339,901)
Total liabilities and stockholders' equity (deficit)	$ 1,778,237	$ 969,486

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$ 3,942	$ 3,219
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,600,000,000	1,600,000,000
Common stock, shares issued	150,578,451	64,024,557
Common stock, shares outstanding	150,578,451	64,024,557
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	6,194,233	0
Preferred stock, shares outstanding	6,194,233	0

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Condensed Consolidated Statements of Operations
Revenue	$ 338,393	$ 186,373	$ 766,035	$ 577,527
Cost of revenue (exclusive of depreciation and amortization)	255,116	121,780	539,242	377,700
Gross profit	83,277	64,593	226,793	199,827
Selling, general and administrative expenses	102,048	30,829	172,626	95,385
Depreciation and amortization	28,052	18,761	70,779	58,463
Related party expense	26,892	2,448	31,733	7,372
Operating (loss) income	(73,715)	12,555	(48,345)	38,607
Other expense (income), net:
Interest expense, net	37,652	27,399	91,740	81,712
Loss on extinguishment of debt	35,512		35,512
Sundry expense (income), net	563	711	2,960	283
Net loss before income taxes	(147,442)	(15,555)	(178,557)	(43,388)
Income tax benefit	37,002	3,757	32,924	9,969
Net loss	(110,440)	(11,798)	(145,633)	(33,419)
Dividend equivalent on Series A Preferred Stock related to beneficial conversion feature	(16,375)		(16,375)
Cumulative dividends for Series A Preferred Stock	(1,225)		(1,225)
Net loss attributable to common stockholders	$ (128,040)	$ (11,798)	$ (163,233)	$ (33,419)
Earnings per share:
Basic and diluted (in dollars per share)	$ (0.92)	$ (0.18)	$ (1.76)	$ (0.52)

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Condensed Consolidated Statements of Comprehensive Loss
Net loss	$ (110,440)	$ (11,798)	$ (145,633)	$ (33,419)
Other comprehensive loss, net of tax
Foreign currency translation adjustments	233	222	1,256	1,955
Unrealized pension actuarial (losses) gains, net of tax	(536)	109	(1,500)	469
Total other comprehensive loss, net of tax	$ (110,743)	$ (11,467)	$ (145,877)	$ (30,995)

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Series A Preferred Stock Common Stock	Series A Preferred Stock Preferred Stock	Series A Preferred Stock Additional Paid in Capital	Series A Preferred Stock	Common Stock	Preferred Stock	Additional Paid in Capital	Equity-Based Compensation	Foreign Currency Translation Adjustment	Unrealized Pension Actuarial Losses, net of tax	Accumulated Deficit	Total
Balances (as previously reported)							$ (57,389)	$ 20,256	$ (3,415)	$ (5,076)	$ (245,865)	$ (291,489)
Balances (as previously reported (in shares)					144,400
Conversion of shares					$ 6		(6)
Conversion of Stock, Reverse Acquisition, Shares					63,880,157
Beginning balance at Dec. 31, 2015					$ 6		(57,395)	20,256	(3,415)	(5,076)	(245,865)	(291,489)
Beginning balance (in shares) at Dec. 31, 2015					64,024,557
Increase (Decrease) in Stockholders' Equity (Deficit)
Net loss											(33,419)	(33,419)
Equity-based compensation								5,422				5,422
Foreign currency translation adjustment									1,955			1,955
Net realized pension actuarial gains, net of tax										469		469
Ending balance at Sep. 30, 2016					$ 6		(57,395)	25,678	(1,460)	(4,607)	(279,284)	(317,062)
Ending balance (in shares) at Sep. 30, 2016					64,024,557
Balances (as previously reported)							(57,389)	27,342	(3,547)	(12,339)	(293,968)	(339,901)
Balances (as previously reported (in shares)					144,400
Conversion of shares					$ 6		(6)
Conversion of Stock, Reverse Acquisition, Shares					63,880,157
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											(145,633)	(145,633)
Equity-based compensation								4,446				4,446
Foreign currency translation adjustment									1,256			1,256
Net realized pension actuarial gains, net of tax										(1,500)		(1,500)
Merger recapitalization					$ 2		20,546					20,548
Merger recapitalization (in shares)					16,575,443
Shares issued to acquire Novitex (refer to Note 3)					$ 3		244,797					244,800
Shares issued to acquire Novitex (refer to Note 3) (in shares)					30,600,000
Issuance/conversion of Quinpario shares					$ 1		22,358					22,359
Issuance/conversion of Quinpario shares (in shares)					12,093,331
Sale of common shares at July 12, 2017					$ 3		130,860					130,863
Sale of common shares at July 12, 2017 (in shares)					18,757,942
Issuance of Series A Preferred stock		$ 1	$ 73,553	$ 73,554
Issuance of Series A Preferred stock (in shares)		9,194,233
Shares issued for advisory services and deferred underwriting fees							28,573					28,573
Shares issued for advisory services and deferred underwriting fees (in shares)					3,609,375
Conversion of Series A Preferred Stock to common shares	3,667,803				3,667,803
Conversion of Series A Preferred stock to common shares		(3,000,000)		(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)
Ending balance at Sep. 30, 2017					$ 15	$ 1	$ 482,018	$ 31,788	$ (2,291)	$ (13,839)	$ (455,976)	$ 41,716
Ending balance (in shares) at Sep. 30, 2017					150,578,451	6,194,233

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (145,633)	$ (33,419)
Adjustments to reconcile net loss
Depreciation and amortization	70,779	58,463
Fees paid in stock	23,875
HGM contract termination fee paid in stock	10,000
Original issue discount and debt issuance cost amortization	9,684	10,183
Loss on extinguishment of debt	35,512
Provision (recovery) for doubtful accounts	451	(372)
Deferred income tax benefit (expense)	(37,186)	(9,092)
Share-based compensation expense	4,446	5,422
Foreign currency remeasurement	777	172
Gain on sale of Meridian	(588)
Loss on sale of property, plant and equipment	508	1,242
Change in operating assets and liabilities, net of effect from acquisitions:
Accounts receivable	(2,784)	12,732
Related party receivable		(1,089)
Prepaid expenses and other assets	189	(3,807)
Accounts payable and accrued liabilities	37,316	4,227
Related party payables	4,936	(1,345)
Net cash provided by operating activities	12,282	43,317
Cash flows from investing activities
Purchases of property, plant and equipment	(7,001)	(4,971)
Additions to internally developed software	(6,348)	(7,207)
Additions to outsourcing contract costs	(8,574)	(11,015)
Cash acquired in Transcentra acquisition		3,351
Proceeds from sale of Meridian	4,582
Cash acquired in Quinpario reverse merger	91
Cash paid in Novitex acquisition, net of cash received	(423,428)
Proceeds from sale of property, plant and equipment	11	625
Net cash used in by investing activities	(440,667)	(19,217)
Cash flows from financing activities
Change in bank overdraft	(210)	(1,541)
Proceeds from issuance of common and preferred stock	204,417
Cash received from Quinpario	27,031
Proceeds from financing obligations	3,040	4,801
Contribution from Shareholders	20,548
Proceeds from new credit facility	1,320,500
Retirement of previous credit facilities	(1,055,736)
Cash paid for debt issuance costs and debt discounts	(39,837)
Cash paid for equity issue costs	(149)
Borrowings from revolver and swing-line loan	72,600	53,200
Repayments on revolver and swing line loan	(72,500)	(53,200)
Principal payments on long-term obligations	(32,647)	(35,247)
Net cash provided by (used in) financing activities	447,057	(31,987)
Effect of exchange rates on cash	335	(239)
Net increase (decrease) in cash and cash equivalents	19,007	(8,126)
Cash and cash equivalents
Beginning of period	8,361	16,619
End of period	27,368	8,493
Supplemental cash flow data:
Income tax payments, net of refunds received	2,673	2,798
Interest paid	60,347	79,828
Noncash investing and financing activities:
Assets acquired through capital lease arrangements	2,080	5,632
Leasehold improvements funded by lessor	74	1,016
Issuance of common stock as consideration for Novitex	244,800
Accrued capital expenditures	3,512	$ 412
Dividend equivalent on Series A Preferred Stock	16,375
Liability assumed of Quinpario	$ 4,672

Description of the Business	9 Months Ended
Description of the Business	Sep. 30, 2017
Description of the Business
Description of the Business	1. Description of the Business Exela Technologies, Inc. (the “Company” or “Exela”) is a global provider of transaction processing solutions, enterprise information management, document management and digital business process services. The Company provides mission-critical information and transaction processing solutions services to clients across three major industry verticals: (1) Information & Transaction Processing, (2) Healthcare Solutions, and (3) Legal and Loss Prevention Services. The Company manages information and document driven business processes and offers solutions and services to fulfill specialized knowledge-based processing and consulting requirements, enabling clients to concentrate on their core competencies. Through its outsourcing solutions, the Company enables businesses to streamline their internal and external communications and workflows. The Company was originally incorporated in Delaware on July 15, 2014 as a special purpose acquisition company under the name Quinpario Acquisition Corp 2 (“Quinpario”) for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving Quinpario and one or more businesses or entities. On July 12, 2017 (the “Closing”), the Company consummated its business combination with SourceHOV Holdings, Inc. (“SourceHOV”) and Novitex Holdings, Inc. (“Novitex”) pursuant to the Business Combination Agreement and Consent, Waiver and Amendment to the Business Combination Agreement, dated February 21, 2017 and June 15, 2017, respectively (the “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 Business Combination, “Quinpario” refers to the Company prior to the closing of the Business Combination, “SourceHOV” refers to SourceHOV prior to the Business Combination and “Novitex” refers to Novitex prior to the Business Combination. Refer to Note 3 for further discussion of the Business Combination.

Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2017

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 unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. These interim financial statements should be read in conjunction with SourceHOV’s audited financial statements for the year ended December 31, 2016 included in the Proxy Statement of the Company filed with the SEC on June 26, 2017, as amended and supplemented.

The 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 Business Combination, outstanding shares of SourceHOV were converted into common stock of the Company, par value $0.0001 per share, shown as a recapitalization, and the net assets of Quinpario were acquired at historical cost, with no goodwill or other intangible assets recorded. The consolidated assets, liabilities and results of operations prior to the Closing of the Business Combination (for the quarters ended September 30, 2017 and 2016 and the year ended December 31, 2016) are those of SourceHOV, and 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 common stockholders, prior to the Business Combination, have been retroactively restated as shares reflecting the exchange ratio established in the Business Combination. The presented financial information for the quarter ended September 30, 2017 includes the financial information and activities for SourceHOV for the period July 1, 2017 to September 30, 2017 (92 days) as well as the financial information and activities of Novitex for the period July 13, 2017 to September 30, 2017 (80 days).

Principles of Consolidation

The unaudited condensed 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.

Use of Estimates

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.

Key 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, stock-based compensation, contingencies, goodwill, intangible assets, fair value of assets and liabilities acquired in acquisitions, and liability valuations. The Company regularly assesses these estimates and records changes in estimates in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Segment Reporting

The Company consists of the following three segments:

Information & Transaction Processing Solutions (“ITPS”). ITPS provides industry 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.

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.

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.

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 recorded an offsetting liability in obligation for claim payment in the consolidated balance sheets for the settlement funds received of $37.3 million and $25.9 million at September 30, 2017 and December 31, 2016, respectively. Of the total amount of settlement funds received, $19.2 million and $17.1 million were not subject to legal restrictions on use as of September 30, 2017 and December 31, 2016, respectively. The Company also maintains a collateral certificate of deposit account required by its insurance carrier for unsettled workers’ compensation claims. The Company records an offsetting liability in accrued compensation and benefits for these claims in the consolidated balance sheets.

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 three to 16 years depending on the facts and circumstances. These intangible assets are primarily amortized based on undiscounted cash flows. The Company evaluates the remaining useful life of intangible assets on an annual basis to determine whether events and circumstances warrant a revision to the remaining useful life.

Trade Names

The Company has determined that its trade name intangible assets are indefinite-lived assets and therefore are not subject to amortization. The Company’s valuation of trade names at the reporting unit level utilizes the Relief-from-Royalty method that represents the present value of the future economic benefits generated by ownership of the trade names and approximates the amount that the Company would have to pay as a royalty to a third party to license such names.

Trademarks

The Company has determined that its trademark intangible assets resulting from acquisitions are definite-lived assets and therefore are subject to amortization. The Company amortizes trademarks on a straight-line basis over the estimated useful life, which is typically ten years. The Novitex trademarks acquired in connection with the Business Combination have an estimated useful life of 9.5 years.

Developed Technology

The Company has various developed technologies embedded in its technology platform. Developed technology is an integral asset to the Company in providing solutions to customers and is recorded as an intangible asset. The Company amortizes developed technology on a straight-line basis over its estimated useful life, which is typically five years. Exela acquired internally developed software in the Business Combination called Connect Platform. Connect Platform has an estimated useful life of 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 five 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 life. These costs represent incremental external costs or certain specific internal costs that are directly related to the contract acquisition or transition activities and can be separated into two principal categories: contract commissions and transition/set-up costs. Examples of such capitalized costs include hourly labor and related fringe benefits and travel costs.

Non-compete agreements

The Company acquired certain non-compete agreements in connection with the Business Combination. These were related to four Novitex executives that were terminated following the acquisition. The Company has determined that the agreements have a definite useful life of one year.

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

Leases

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

Stock-Based Compensation

The Company accounts for stock based compensation in accordance with ASC 718, “Compensation- Stock Compensation” (“ASC 718”); ASC 718 requires generally that all equity awards be accounted for at their “fair value.” This fair value is measured at the fair value of value of the awards at the grant date and recognized as compensation expense on a straight-line basis over the vesting period. The fair value of the awards on the grant date is determined using the Enterprise Value model. The expense resulting from share-based payments is recorded in general and administrative expense in the accompanying consolidated statements of operations. Refer to Note 13 - Stock-Based Compensation.

Revenue Recognition

The majority of the Company’s revenues are comprised of: (1) ITPS, (2) HS offerings, (3) LLPS solutions, or (4) some combination thereof. Revenue is realized or realizable and earned when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is probable. Delivery does not occur until services have been provided to the client, risk of loss has transferred to the client, and either client acceptance has been obtained, client acceptance provisions have lapsed, or the Company has objective evidence that the criteria specified in the client acceptance provisions have been satisfied. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved.

ITPS revenues are primarily generated from a transaction-based pricing model for the various types of volumes processed, licensing and maintenance fees for technology sales, and a mix of fixed management fee and transactional revenue for document logistics and location services. HS revenues are primarily generated from a transaction-based pricing model for the various types of volumes processed for healthcare payers and providers. LLPS revenues are primarily based on time and materials pricing as well as through transactional services priced on a per item basis.

If a contract involves the provision of a single element, revenue is generally recognized when the product or service is provided and the amount earned is not contingent upon any future event. Revenue from time and materials arrangements is recognized as the services are performed.

Service arrangements are typically one to five year contracts that contain monthly service fees that are recognized as earned. Service revenues billed in advance are deferred and recognized on a straight-line basis over the service period. The Company recognizes variable rate revenues, including fees derived from the utilization of document management-related equipment and production of print services, when such services are rendered. Reimbursable expenses are recognized as earned when incurred. Sales commissions determined to be incremental direct costs incurred related to the successful acquisition of new client revenues are deferred and amortized over the length of the initial contract period. Customer incentive payments are deferred and recognized over the longer of the initial contract period or the period the customer is expected to benefit from payment of these up-front fees.

The Company records deferred revenue when it receives payments or invoices in advance of the delivery of products or the performance of services. The deferred revenue is recognized as earnings when underlying performance obligations are achieved.

The Company includes reimbursements from clients, such as postage costs, in revenue, while the related costs are included in cost of revenue in the consolidated statement of operations.

Multiple Element Arrangements

Certain of the Company’s revenue is generated from multiple element arrangements involving various combinations. The deliverables within these arrangements are evaluated at contract inception to determine whether they represent separate units of accounting, and if so, contract consideration is allocated to each deliverable based on relative selling price. The relative selling price of each deliverable within these arrangements is determined using vendor specific objective evidence of fair value, third-party evidence or best estimate of selling price. Revenue is then recognized in accordance with the appropriate revenue recognition guidance applicable to the respective elements.

If the multiple element arrangements criteria are not met, the arrangement is accounted for as one unit of accounting which would result in revenue being recognized on a straight-line basis over the period of delivery or being deferred until the earlier of when such criteria are met or when the last element is delivered.

Beneficial Conversion Feature

The issuance of the Company’s Series A Perpetual Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”) generated 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 September 30, 2017.

Net Loss per Share

Earnings per share (“EPS”) is computed by dividing net loss available to common stockholders 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 shares 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 three and nine months ended September 30, 2017, shares of the Company’s Series A Preferred Stock, if converted would have resulted in an additional 7,573,066 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 considered the effect of 35,000,000 warrants sold in the Quinpario Initial Public Offering (“IPO”) in the calculation of net income (loss) per share. Warrants are considered anti-dilutive and excluded when the exercise price exceeds the average market value of the Company’s common stock price during the applicable period.

The components of basic and diluted EPS are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net loss attributable to common stockholders (A)	$	(128,040	)	$	(11,798	)	$	(163,233	)	$	(33,419	)
Weighted average common shares outstanding - basic and diluted (B)	138,895,681			64,024,557			92,512,729			64,024,557


Earnings Per Share:
Basic and diluted (A/B)	$	(0.92	)	$	(0.18	)	$	(1.76	)	$	(0.52	)

Recently Adopted Accounting Pronouncements

Effective January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) no. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This amendment replaced the method of measuring inventories at lower of cost or market with a lower of cost and net realizable value method. The adoption had no material impact on the Company’s financial position, results of operations and cash flows.

Effective January 1, 2017, the Company adopted ASU no. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). The ASU changes how companies account for certain aspects of equity-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard requires that all tax effects related to share-based payments be recorded as income tax expense or benefit in the income statement at settlement or expiration and, accordingly, excess tax benefits and tax deficiencies be presented as operating activities in the statement of cash flows. Upon adoption of this standard, the Company elected to continue its current practice of estimating expected forfeitures. The adoption had no material impact on the Company’s financial position, results of operations and cash flows.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU no. 2014-09, Revenue from Contracts with Customers (ASC 606). Under the update, revenue will be 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. In July 2015, the FASB deferred the effective date by one year (ASU no. 2015-14). This ASU will be effective beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Since the issuance of the original standard, the FASB has issued several other subsequent updates including the following: 1) clarification of the implementation guidance on principal versus agent considerations (ASU 2016-08); 2) further guidance on identifying performance obligations in a contract as well as clarifications on the licensing implementation guidance (ASU 2016-10); 3) rescission of several SEC Staff Announcements that are codified in ASC 605 (ASU 2016-11); 4) additional guidance and practical expedients in response to identified implementation issues (ASU 2016-12); and 5) technical corrections and improvements (ASU 2016-20). The new standard will be effective for us beginning January 1, 2018. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

In February 2016, the FASB issued ASU no. 2016-02, Leases (842). This ASU increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

In June 2016, the FASB issued ASU no. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to replace the incurred loss impairment methodology under current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company will be required to use a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The standard will be effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. 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 2016, the FASB issued ASU no. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230), which adds or clarifies guidance on the presentation and classification of eight specific types of cash receipts and cash payments in the statement of cash flows such as debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees, with the intent of reducing diversity in practice. For public entities, ASU 2016-15 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Entities must apply the guidance retrospectively to all periods presented unless retrospective application is impracticable. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

In October 2016, the FASB issued ASU no. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which eliminates the current prohibition on immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory, with the intent of reducing complexity and diversity in practice. Under ASU 2016-16, entities must recognize the income tax consequences when the transfer occurs rather than deferring recognition. For public entities, ASU 2016-16 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018, and interim reporting periods within annual periods beginning after December 15, 2019, with early adoption permitted as of the beginning of a fiscal year (i.e., early adoption is permitted only in the first interim period). Entities must apply the guidance on a modified retrospective basis though a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. 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 2016, the FASB issued ASU no. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230). The ASU addresses diversity in practice that exists in the classification and presentation of changes in restricted cash and requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The ASU is effective beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

In January 2017, the FASB issued ASU no. 2017-01, Business Combinations: Clarifying the Definition of a Business (Topic 805). The ASU clarifies the definition of a business and provides guidance on evaluating as to whether transactions should be accounted for as acquisitions (or disposals) of assets or business combinations. The definition clarification as outlined in this ASU affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of the ASU are effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

In January 2017, the FASB issued ASU no. 2017-04, Intangibles Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates Step 2 of the goodwill impairment test that had required a hypothetical purchase price allocation. Rather, entities should apply the same impairment assessment to all reporting units and recognize an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 will be effective prospectively for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2021, or those beginning after January 1, 2017 if early adopted. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

In March 2017, the FASB issued ASU no. 2017-07, Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amendments to this ASU require the service cost component of net periodic benefit cost be reported in the same income statement line or lines as other compensation costs for employees. The other components of net periodic benefit cost are required to be reported separately from service costs and outside a subtotal of income from operations. Only the service cost component is eligible for capitalization. The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments should be applied retrospectively for the income statement presentations and prospectively for the capitalization of service costs. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

In May 2017, the FASB issued ASU no. 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting. The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. The amendments in this update will be applied on a prospective basis to an award modified on or after the adoption date. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part I of this update 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 update addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity, because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests. The amendments in Part II of this update do not have an accounting effect. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently in the early stages of evaluating the impact that adopting this standard will have on the consolidated financial statements.

Business Combination

9 Months Ended

Sep. 30, 2017

Business Combination

Business Combination

3.Business Combination

On July 12, 2017, the Company consummated its business combination with SourceHOV and Novitex pursuant to the Business Combination Agreement and Consent, Waiver and Amendment to the Business Combination Agreement, dated February 21, 2017 and June 15, 2017, respectively. In connection with the Business Combination, the Company acquired debt facilities and issued notes totaling $1.4 billion (refer to Note 9 — Long Term Debt). Proceeds from the acquired debt were used to refinance the existing debt of SourceHOV, settle the outstanding debt of Novitex, and pay fees and expenses incurred in connection with the Business Combination. Immediately following the Business Combination, there were 146,910,648 shares of common stock, 9,194,233 shares of Series A Preferred Stock, and 35,000,000 warrants outstanding. Refer to Note 14 — Stockholders’ Equity.

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

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

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

The following table summarizes the consideration paid for Novitex and the preliminary fair value of the assets acquired and liabilities assumed at the acquisition date on July 12, 2017:

Assets acquired:
Cash and equivalents	$	8,428
Accounts receivable	87,474
Inventory	1,245
Prepaid expenses & other	13,974
Property, plant and equipment, net	60,657
Identifiable intangible Assets, net	251,060
Deferred charges and other assets	2,723
Other noncurrent assets	93
Goodwill	405,141

Total identifiable assets acquired	$	830,795

Liabilities Assumed:
Accounts payable	(29,444		)
Short-term borrowings and current portion of LT debt	(11,335		)
Accrued liabilities	(30,432		)
Advanced billings and customer deposits	(18,926		)
Long term debt	(15,704		)
Deferred taxes	(46,072		)
Other liabilities	(2,226		)

Total liabilities assumed	$	(154,139	)

Total Consideration	$	676,656

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

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

		$	251,060

As of September 30, 2017, the weighted-average useful life of total identifiable intangible assets acquired in the Business Combination, excluding goodwill, is 15.4 years.

The Company expects to realize revenue synergies, leverage, brand awareness, stronger margins, greater free cash flow generation, and expand the existing Novitex sales channels, and utilize the existing workforce. The Company also anticipates opportunities for growth through the ability to leverage additional future services and capabilities. These factors, among others, contributed to a purchase price in excess of the estimated fair value of Novitex’s identifiable net assets assumed, and as a result, the Company has recorded goodwill in connection with this acquisition. The Company engaged a third party valuation firm to aid management in its analyses of the fair value of the assets and liabilities. All estimates, key assumptions, and forecasts were either provided by or reviewed by the Company. Approximately $14.0 million of the goodwill recorded was tax deductible, which was carried over from the tax basis of the seller. Since the acquisition date of July 12, 2017, $134.4 million of revenue and $5.0 million of net loss are included in consolidated revenues and net loss, respectively, for Novitex. These results are included in the ITPS segment.

Transaction Costs

The Company, incurred approximately $69.3 million in advisory, legal, accounting and management fees in conjunction with the Business Combination as of September 30, 2017. Additionally, $7.6 million was incurred related to equity issuance costs and $40.9 million was incurred in debt issuance costs.

Restructuring Charges

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

The Company determined that costs associated with termination benefits should be accounted for separately from the acquisition, as a post-combination expense of the combined entity because the expense was incurred for the benefit of the combined entity. The Company recorded severance expense in the amount of $4.6 million related to the impacted executives and $0.1 million related to other terminations in the statement of operations for the three months ended September 30, 2017.

The Company does not expect to incur additional charges for these terminations in future periods. Severance charges associated with the terminations were included in Selling, general and administrative expenses on the consolidated statement of operations and were included in the ITPS segment. Of the total amount of restructuring charges, $2.1 million was shown as a liability as of September 30, 2017, which is included within Accrued compensation and benefits on the Condensed Consolidated Balance Sheets.

Pro-Forma Information

Following are the supplemental consolidated results of the Company on an unaudited pro forma basis, as if the acquisition had been consummated on January 1, 2016 for three months and nine months ended September 30, 2017 and 2016:

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Net Revenue	$	358,166		$	350,784		$	1,069,992		$	1,082,299

Net Loss	(47,098		)	(24,460		)	(64,304		)	(107,772		)

These pro forma results were based on estimates and assumptions, which the Company believes are reasonable. They are not the results that would have been realized had the Company been a combined company during the periods presented and are not necessarily indicative of consolidated results of operations in future periods. The pro forma results include adjustments primarily related to purchase accounting adjustments. Acquisition costs and other non-recurring charges incurred are included in the earliest period presented.

Additionally, the pro forma results are inclusive of the acquisition of TransCentra by SourceHOV for the three and nine month periods ended September 30, 2016. These pro forma results were based on estimates and assumptions, which the Company believes are reasonable. They are not the results that would have been realized had the Company been a combined company during the periods presented and are not necessarily indicative of the Company’s consolidated results of operations in future periods.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Accounts Receivable

9 Months Ended

Sep. 30, 2017

Accounts Receivable

Accounts Receivable

4.Accounts Receivable

Accounts receivable, net consist of the following:

	September 30,			December 31,
	2017			2016
Billed receivables	$	195,437		$	116,148
Unbilled receivables	31,341			20,982
Other	4,868			4,510
Less: Allowance for doubtful accounts	(3,942		)	(3,219		)

	$	227,704		$	138,421

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

- Definition

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

+ References + Details

Prepaid Expenses and Other Current Assets

9 Months Ended

Sep. 30, 2017

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

5.Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:

	September 30,		December 31,
	2017		2016
Prepaids	$	22,923	$	10,906
Deposits	1,340		1,296

	$	24,263	$	12,202

Property, Plant and Equipment, Net

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment, Net

Property, Plant and Equipment, Net

6.Property, Plant and Equipment, Net

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

	Estimated Useful	September 30,			December 31,
	Lives (in Years)	2017			2016
Land	N/A	$	7,744		$	7,637
Buildings and improvements	7 - 40	18,450			16,989
Leasehold improvements	Lesser of the useful life or lease term	48,243			31,342
Vehicles	5 - 7	792			784
Machinery and equipment	5 - 15	62,242			23,297
Computer equipment and software	3 - 8	112,490			98,544
Furniture and fixtures	5 - 15	6,993			5,007

		256,954			183,600
Less: Accumulated depreciation and amortization		(123,337		)	(102,000		)

Property, plant and equipment, net		$	133,617		$	81,600

Intangibles Assets and Goodwill

9 Months Ended

Sep. 30, 2017

Intangibles Assets and Goodwill

Intangibles Assets and Goodwill

7.Intangibles Assets and Goodwill

Intangibles

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

	September 30, 2017
	Gross Carrying Amount (a)		Accumulated Amortization			Intangible Asset, net
Customer relationships	504,643		(125,803		)	$	378,840
Developed technology	89,076		(72,806		)	16,270
Trade names	52,470		—			52,470
Outsource contract costs	37,144		(15,020		)	22,124
Internally developed software	24,799		(3,159		)	21,640
Trademarks	23,370		(898		)	22,472
Non-compete agreements	1,350		(293		)	1,057

	$	732,852	$	(217,979	)	$	514,873

	December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Intangible Asset, net
Customer relationships	$	274,643	$	(100,172	)	$	174,471
Developed technology	89,076		(59,539		)	29,537
Trade names	53,370		—			53,370
Outsource contract costs	27,619		(7,378		)	20,241
Internally developed software	16,742		(858		)	15,884
Trademarks	5,370		(134		)	5,236

	$	466,820	$	(168,081	)	$	298,739

(a)

Amounts include intangibles acquired in the Business Combination. Refer to Note 3.

Goodwill

Goodwill by reporting segment consists of the following:

	Goodwill		Additions			Reductions			Currency translation adjustments		Goodwill
ITPS	$	145,562	$	13,558		$	—		$	274	$	159,394
HS	86,786		—			—			—		86,786
LLPS	127,111		—			—			—		127,111		(a)

Balance as of December 31, 2016	$	359,459	$	13,558		$	—		$	274	$	373,291
ITPS	159,394		405,141		(c)				299		564,834
HS	86,786										86,786
LLPS	127,111		—			(2,721		)(b)	—		124,390		(a)

Balance as of September 30, 2017	$	373,291	$	405,141		$	(2,721	)	$	299	$	776,010

(a)

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

(b)

The reduction in goodwill is due to the sale of Meridian in Q1 2017.

(c)

Addition to goodwill is due to the Novitex acquisition. Refer to Note 3.

The Company recorded $405.1 million of goodwill as a result of the allocation of the purchase price between assets acquired and liabilities assumed in the Business Combination. Of the total amount of goodwill recorded, $46.1 million of goodwill is associated with deferred tax liabilities recorded in connection with amortizable intangible assets acquired in the Business Combination.

- Definition

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

+ References + Details

Accrued Liabilities and Other Long-Term Liabilities

9 Months Ended

Sep. 30, 2017

Accrued Liabilities and Other Long-Term Liabilities

Accrued Liabilities and Other Long-Term Liabilities

8.Accrued Liabilities and Other Long-Term Liabilities

Accrued liabilities consist of the following:

	September 30,		December 31,
	2017		2016
Accrued taxes (exclusive of income taxes)	$	7,521	$	3,309
Accrued lease exit obligations	2,474		3,949
Accrued professional and legal fees	12,821		8,289
Deferred rent	1,136		989
Accrued interest	30,405		8,459
Accrued transaction costs	19,250		2,750
Other accruals	1,652		1,747

	$	75,259	$	29,492

Other Long-term liabilities consist of the following:

	September 30,		December 31,
	2017		2016
Deferred revenue	$	447	$	235
Deferred rent	7,383		6,110
Accrued lease exit obligations	1,667		672
Accrued compensation expense	2,980		3,783
Other	3,334		1,173

	$	15,811	$	11,973

Long-Term Debt and Credit Facilities

9 Months Ended

Sep. 30, 2017

Long-Term Debt and Credit Facilities

Long-Term Debt and Credit Facilities

9.Long-Term Debt and Credit Facilities

Senior Credit Facilities

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

The Credit Agreement provides for the following interest rates for borrowings under the senior secured term facility and senior secured revolving facility: at the Company’s option, either (1) an adjusted LIBOR, subject to a 1.0% floor in the case of term loans, or (2) a base rate, in each case plus an applicable margin. The initial applicable margin for the senior secured term facility is 7.5% with respect to LIBOR borrowings and 6.5% with respect to base rate borrowings. The initial applicable margin for the senior secured revolving facility is 7.0% with respect to LIBOR borrowings and 6.0% with respect to base rate borrowings. The applicable margin for borrowings under the senior secured revolving facility is subject to step-downs based on leverage ratios. The senior secured term loan is subject to amortization payments, commencing on the last day of the first full fiscal quarter of the Company following the closing date, of 0.63% 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.

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 with an OID of $22.5 million (the “Notes”). The Notes are guaranteed by certain subsidiaries of the Company. The Notes bear interest at a rate of 10.0% per year. The Company pays interest on the Notes on January 15 and July 15 of each year, commencing on January 15, 2018. The Notes will mature on July 15, 2023.

Debt Refinancing

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

In accordance with ASC 470 — Debt — Modifications and Extinguishments, as a result of certain lenders that participated in SourceHOV’s debt structure prior to the refinancing and the Company’s debt structure after the refinancing, it was determined that a portion of the refinancing of SourceHOV’s first lien secured term loan and second lien secured term loan (“Original SourceHOV Term Loans”) would be accounted for as a debt modification, and the remaining would be accounted for as an extinguishment. The Company incurred $28.9 million in debt issuance costs related to the new secured term loan, of which $2.8 million was third party costs. The Company 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 Business Combination and for general corporate purposes.

Long-Term Debt Outstanding

As of September 30, 2017 and December 31, 2016, the following long-term debt instruments were outstanding:

	September 30,			December 31,
	2017			2016
First lien revolving credit facility (a)	$	—		$	63,337
First lien secured term loan (b)	—			687,884
Second lien secured term loan (c)	—			236,344
Transcentra revolving credit facility	—			5,000
Transcentra term loan	—			19,250
FTS unsecured term loan	—			15,911
Other (d)	18,104			11,609
First lien credit agreement (e)	309,540			—
Senior secured notes (f)	969,324			—
Senior secured revolving credit facility (g)	—			—

Total debt	1,296,968			1,039,335
Less: Current portion of long-term debt	(18,662		)	(55,833		)

Long-term debt, net of current maturities	$	1,278,306		$	983,502

(a)

Net of unamortized debt issuance costs of $2.3 million as of December 31, 2016

(b)

Net of unamortized original issue discount and debt issuance costs of $14.6 million and $14.2 million as of December 31, 2016

(c)

Net of unamortized original issue discount and debt issuance costs of $7.3 million and $6.3 million as of December 31, 2016

(d)

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

(e)

Net of unamortized original issue discount and debt issuance costs of $10.2 million and $30.2 million as of September 30, 2017

(f)

Net of unamortized original issue discount and debt issuance costs of $21.9 million and $8.8 million as of September 30, 2017

(g)

Debt issuance costs of $3.0 million were capitalized as an asset and will be amortized ratably over the term of the facility. Debt issuance costs are included in Other Non Current Assets on the balance sheet.

Credit Facilities

As of September 30, 2017 and December 31, 2016, the Company had outstanding irrevocable letters of credit totaling approximately $22.8 million and $9.3 million, respectively, under a revolving credit facility.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2017
Income Taxes
Income Taxes	10.Income Taxes The Company applies an estimated annual effective tax rate (“ETR”) approach for calculating a tax provision for interim periods, as required under U.S. GAAP. The Company recorded an income tax benefit of $37.0 million and an income tax benefit of $3.8 million for the three months ended September 30, 2017 and 2016, respectively. The Company recorded an income tax benefit of $32.9 million and an income tax benefit of $10.0 million for the nine months ended September 30, 2017 and 2016, respectively. The Company’s actual effective tax rate of 25.12% and 18.44% for the three and nine months ended September 30, 2017, respectively, differed from the expected U.S. statutory tax rate of 35.0%. The Company’s tax rate includes the tax effects related to the decrease of valuation allowance on a portion of the Company’s U.S. net operating loss (“NOL”) carryforwards. In connection with the acquisition of Novitex, the Company recognized an $11.5 million income tax benefit from the reversal of a portion of the Company’s U.S. federal and state valuation allowance on deferred tax assets. The Company determined that a portion of its pre-existing deferred tax assets are more-likely-than-not to be realized by the combined entity and a portion of the valuation allowance should be decreased. However, based on tax law ordering rules, the reduction of valuation allowance on the Company’s pre-existing deferred tax assets was partially offset by an increase in valuation allowance on current year losses that are not more-likely-than-not to be realized. The Company’s ETR of 23.29% and 22.98% for the three months and nine months ended September 30, 2016, respectively, differed from the expected U.S. statutory tax rate of 35.0%, and was impacted by permanent tax adjustments, foreign operations, FIN48 liability release due to statute of limitation expiration, and a valuation allowance against certain domestic and foreign deferred tax assets that are not more-likely-than-not to be realized. As of September 30, 2017, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2016.

Employee Benefit Plans

9 Months Ended

Sep. 30, 2017

Employee Benefit Plans

Employee Benefit Plans

11.Employee Benefit Plans

German Pension Plan

The Company’s subsidiary in Germany provides pension benefits to retirees. Employees eligible for participation include 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.

U.K. Pension Plan

The Company’s subsidiary in the United Kingdom provides pension benefits to 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 German pension plan is an unfunded plan and therefore has no plan assets. 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 for the overall scheme of 5.16%.

Tax Effect on Accumulated Other Comprehensive Loss

As of September 30, 2017 and December 31, 2016, the Company recorded actuarial losses of $13.8 million and $12.3 million in accumulated other comprehensive loss on the condensed consolidated balance sheets, respectively, which is net of a deferred tax benefit of $2.2 million and $2.5 million, respectively.

Pension and Post Retirement Expense

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

	Three Months ended September 30,						Nine Months ended September 30,
	2017			2016			2017			2016
Service cost	$	2		$	3		$	6		$	9
Interest cost	585			667			1,708			2,001
Expected return on plan assets	(610		)	(656		)	(1,782		)	(1,968		)
Amortization:
Amortization of prior service cost	(34		)	(35		)	(99		)	(105		)
Amortization of net loss	529			223			1,546			669

Net periodic benefit cost	$	472		$	202		$	1,379		$	606

Employer Contributions

The Company’s funding of employer contributions is based on governmental requirements and differs from those methods used to recognize pension expense. The Company made contributions of $2.3 million and $2.0 million to its pension plans during the nine months ended September 30, 2017 and 2016, respectively. The Company has fully funded the pension plans for 2017 based on current plan provisions.

Executive Deferred Compensation Plan

The Company has individual arrangements with seven former executives in the U.S. which provide for fixed payments to be made to each individual beginning at age 65 and continuing for 20 years. This is an unfunded plan with payments to be made from operating cash of the Company. Benefit payments of $0.1 million were made for both three months ended September 30, 2017 and 2016, respectively. Benefit payments of $0.2 million were made during both nine months ended September 30, 2017 and 2016, respectively. There was an expense of $0.2 million and $0.5 million for the three months ended September 30, 2017 and 2016, respectively. The benefit for the nine months ended September 30, 2017 was $0.3 million with a corresponding expense for the nine months ended September 30, 2016 of $0.7 million. Benefit payments expected to be paid to plan participants during the remainder of 2017 are $0.1 million.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	12. Commitments and Contingencies Appraisal Demand On September 21, 2017, former stockholders of our wholly-owned subsidiary SourceHOV, who allege combined ownership of 10,304 shares of SourceHOV common stock, filed a petition for appraisal pursuant to 8 Del. C. § 262 in the Delaware Court of Chancery, captioned Manichaean Capital, LLC, et al. v. SourceHOV Holdings, Inc., C.A. No. 2017-0673-JRS (the “Appraisal Action”). The Appraisal Action arises out of the Business Combination Transaction, which gave rise to appraisal rights pursuant to 8 Del. C. § 262. In the Appraisal Action, the petitioners seek, among other things, a determination of the fair value of their shares at the time of the Business Combination; an order that SourceHOV pay that value to the petitioners, together with interest at the statutory rate; and an award of costs, attorneys’ fees, and other expenses. On October 12, 2017, SourceHOV filed its answer to the petition and a verified list pursuant to 8 Del. C. § 262(f). At this early stage of the litigation, the Company is unable to predict the outcome of the Appraisal Action or estimate any loss or range of loss that may arise from the Appraisal Action.

Fair Value Measurement

9 Months Ended

Sep. 30, 2017

Fair Value Measurement

Fair Value Measurement

13. Fair Value Measurement

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

The carrying amount of assets and liabilities including cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of September 30, 2017 and December 31, 2016 due to the relative short maturity of these instruments. Management estimates the fair values of the secured term loan and secured notes at approximately 98.6% and 98.3% respectively, of the respective principal balance outstanding as of September 30, 2017. The carrying value approximates the fair value for the long-term debt. The Company acquired $11.7 million of other long term debt from Novitex (refer to Note 3), which primarily relates to the financing of equipment. Other debt represents the Company’s outstanding loan balances associated with various hardware and software purchases along with loans entered into by subsidiaries of the Company and as such, the cost incurred would approximate fair value. Property and equipment, intangible assets, capital lease obligations, and goodwill are not required to be re-measured to fair value on a recurring basis. These assets are evaluated for impairment if certain triggering events occur. If such evaluation indicates that impairment exists, the respective asset is written down to its fair value.

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

The following table provides the carrying amounts and estimated fair values of the Company’s financial instruments as of September 30, 2017 and December 31, 2016:

	Carrying		Fair		Fair Value Measurements
As of September 30, 2017	Amount		Value		Level 1		Level 2		Level 3
Recurring and nonrecurring assets and liabilities:
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Long-term debt	1,278,306		1,327,130		—		1,327,130		—

	$	1,279,027	$	1,327,851	$	—	$	1,327,130	$	721

	Carrying		Fair		Fair Value Measurements
As of December 31, 2016	Amount		Value		Level 1		Level 2		Level 3
Recurring and nonrecurring assets and liabilities:
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Long-term debt	983,502		$	1,009,913	—		1,009,913

	$	984,223	$	1,010,634	$	—	$	1,009,913	$	721

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:

Balance as of January 1, 2016	$	1,513
Payments/Reductions	(792		)

Balance as of December 31, 2016	$	721

Payments/Reductions	—

Balance as of September 30, 2017	$	721

- 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	9 Months Ended
Stock-Based Compensation	Sep. 30, 2017
Stock-Based Compensation
Stock-Based Compensation	14.Stock-Based Compensation At Closing, SourceHOV had 24,535 restricted stock units (“RSUs”) outstanding under its 2013 Long Term Incentive Plan (“2013 Plan”). Simultaneous with the Closing, the 2013 Plan, as well as all vested and unvested RSUs under the 2013 Plan, were assumed by Ex-Sigma, LLC (“Ex-Sigma”), an entity formed by the former SourceHOV equity holders, which is also the Company’s principal stockholder. In accordance with U.S. GAAP, the Company will continue to incur compensation expense related to the 9,880 unvested RSUs on a straight line basis until fully vested, as the recipients of the RSUs are employees of the Company. The Company incurred total compensation expense of $2.2 million and $4.4 million related to these awards for the three and nine months ended September 30, 2017, respectively. The Company has not approved any incentive plans to grant awards of stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards and performance awards as of September 30, 2017. Awards to Non-employees At Closing, the Company issued 3,609,375 shares of common stock to advisors who are not affiliates of the Company at the Closing in exchange for services provided. The shares issued were fully vested at the Closing. The Company records equity instruments issued to non-employees as expense at the fair value. For the three months ended September 30, 2017, the Company recorded expense related to these non-employee advisors of $28.6 million in Selling, general and administrative expense, based on the fair value of $8.00 per share.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2017
Stockholders' Equity
Stockholders' Equity	15. Stockholders’ Equity The following description summarizes the material terms and provisions of the securities that the Company has authorized. Common Stock The Company is authorized to issue 1,600,000,000 shares of common stock. At Closing, the Company had 146,910,648 shares of common stock outstanding, of which: a) 80,600,000 shares were issued to Ex-Sigma, b) 30,600,000 shares were issued to the sole shareholder of Novitex, c) 12,093,331 shares were issued to the stockholders of Quinpario who did not redeem their shares, d) 3,609,375 shares were issued to certain third party advisors involved in the Business Combination, and e) 16,358,389 shares were issued to holders as part of a secondary offering at $8.00 per share with an additional 2,399,553 bonus shares issued. Certain shareholders of Quinpario were offered 25% common stock bonuses if they executed conversion agreements within a specified time limit. Seven Quinpario shareholders returned the agreements and were awarded 841,876 additional shares. As of September 30, 2017, there were no additional issuances of common stock other than the conversion of 3,000,000 shares of Series A Preferred Stock being converted into 3,667,803 shares of common stock. As of September 30, 2017, there were 150,578,451 shares of common stock issued and outstanding. Except as otherwise required by law or as otherwise provided in any certificate of designation for any series of preferred stock, the holders of Exela common stock possess all voting power for the election of Exela’s directors and all other matters requiring stockholder action and will at all times vote together as one class on all matters submitted to a vote of Exela stockholders. Holders of Exela common stock are entitled to one vote per share on matters to be voted on by stockholders. Holders of Exela common stock will be entitled to receive such dividends and other distributions, if any, as may be declared from time to time by the board of directors in its discretion out of funds legally available 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. Preferred Stock The Company is authorized to issue 20,000,000 shares of Series A 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 the Closing, the Company issued 9,194,233 shares of Series A Preferred Stock. Refer to Note 3 for additional details about the Business Combination. 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 that occurred on August 1, 2017 as described in the beneficial conversion feature section of Note 2, preferred stockholders 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 3,000,000 shares of Series A Preferred Stock converted into 3,667,803 shares of common stock upon the occurrence of a fundamental change, as of September 30, 2017, an additional 7,573,066 shares of common stock as issuable upon conversion of the remaining 6,194,233 shares of Series A Preferred Stock. Holders of the Series A Preferred Stock are be entitled to receive cumulative dividends at a rate per annum of 10% of the Liquidation Preference per share of Series A Preferred Stock. 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. 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, 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. Warrants At September 30, 2017, there were a total of 35,000,000 warrants outstanding. As part of its IPO, Quinpario had issued 35,000,000 units including one share of common stock and one warrant. The warrants are traded on the OTC Bulletin Board as of September 30, 2017. 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 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 our 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 we send 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.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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+ Details

Related-Party Transactions

9 Months Ended

Sep. 30, 2017

Related-Party Transactions

Related-Party Transactions

16. Related-Party Transactions

Leasing Transactions

Certain operating companies lease their operating facilities from HOV RE, LLC an affiliate through common interest held by certain shareholders. The rental expense for these operating leases was $0.2 million for both the three months ended September 30, 2017 and 2016, and $0.5 million for both the nine months ended September 30, 2017 and 2016.

Consulting Agreement

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 $0.1 million for both the three and nine months ended September 30, 2017, respectively.

Relationship with HandsOn Global Management

The Company incurred management fees to HandsOn Global Management (“HGM”), SourceHOV’s former owner, of $3.0 million and $1.5 million for the three months ended September 30, 2017 and 2016, respectively, and $6.0 million and $4.5 million for the nine months ended September 30, 2017 and 2016, respectively. The contract with HGM was terminated upon consummation of the Business Combination, and no fees were payable after July 12, 2017.

The Company incurred no reimbursable travel expenses to HGM for the three months ended September 30, 2017 and $0.2 million for the three months ended September 30, 2016, and $0.5 million and $0.8 million for the nine months ended September 30, 2017 and 2016, respectively.

The Company incurred marketing fees to Rule 14, LLC, a portfolio company of HGM, of $0.1 million for both the three months ended September 30, 2017 and 2016, and $0.3 million for both the nine months ended September 30, 2017 and 2016, respectively.

The Company incurred contract cancellation and advising fees to HGM of $23.0 million, $10 million of which was paid by the issuance of 1,250,000 shares of common stock, for the three months ended September 30, 2017, relating to the Business Combination.

Relationship with HOV Services, Ltd.

HOV Services, Ltd., a former shareholder of SourceHOV who currently owns equity interest in the Company through Ex-Sigma, provides the Company data capture and technology services.

The expense recognized for these services was approximately $0.4 million for both the three months ended September 30, 2017 and 2016, respectively, and $1.3 million for both the nine months ended September 30, 2017 and 2016, respectively and is included in cost of revenue in the consolidated statements of operations.

Relationship with Apollo Global Management, LLC

The Company provides services to and receives services from certain Apollo affiliated companies. Funds managed by Apollo Global Management, LLC have the right to designate two of the Company’s directors. For both the three and nine months ended September 30, 2017 there were related party expenses of $0.2 million for services received from an Apollo affiliated company with a common Apollo designated director.

Receivable and Payable Balances with Affiliates

Receivable and Payable balances with affiliates as of September 30, 2017 and December 31, 2016 are as follows:

	September 30, 2017		December 31, 2016
	Payables		Payables
HOV Services, Ltd	$	463	$	352
Rule 14	44		134
HGM	13,516		8,858
Presidio	451		—

	$	14,474	$	9,344

Segment and Geographic Area Information

9 Months Ended

Sep. 30, 2017

Segment and Geographic Area Information

Segment and Geographic Area Information

17. Segment and Geographic Area Information

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

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

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

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

The chief operating decision maker reviews operating segment revenue and gross profit. 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.

	Three months ended September 30, 2017
	ITPS	HS	LLPS	Total
Revenue	260,019	56,405	21,969	338,393
Cost of revenue	204,602	37,451	13,063	255,116

Gross profit	55,417	18,954	8,906	83,277
Selling, general and administrative expenses				102,048
Depreciation and amortization				28,052
Related party expense				26,892
Interest expense, net				37,652
Loss on extinguishment of debt				35,512
Sundry expense, net				563

Net loss before income taxes				$	(147,442	)

	Three months ended September 30, 2016
	ITPS	HS	LLPS	Total
Revenue	97,402	60,657	28,314	186,373
Cost of revenue	66,704	38,729	16,347	121,780

Gross profit	30,698	21,928	11,967	64,593
Selling, general and administrative expenses				30,829
Depreciation and amortization				18,761
Related party expense				2,448
Interest expense, net				27,399
Loss on extinguishment of debt				—
Sundry expense, net				711

Net loss before income taxes				$	(15,555	)

	Nine months ended September 30, 2017
	ITPS	HS	LLPS	Total
Revenue	525,557	173,548	66,930	766,035
Cost of revenue	385,447	113,152	40,643	539,242

Gross profit	140,110	60,396	26,287	226,793
Selling, general and administrative expenses				172,626
Depreciation and amortization				70,779
Related party expense				31,733
Interest expense, net				91,740
Loss on extinguishment of debt				35,512
Sundry expense, net				2,960

Net loss before income taxes				$	(178,557	)

	Nine months ended September 30, 2016
	ITPS	HS	LLPS	Total
Revenue	309,112	189,046	79,369	577,527
Cost of revenue	208,614	120,700	48,386	377,700

Gross profit	100,498	68,346	30,983	199,827
Selling, general and administrative expenses				95,385
Depreciation and amortization				58,463
Related party expense				7,372
Interest expense, net				81,712
Loss on extinguishment of debt				—
Sundry expense, net				283

Net loss before income taxes				$	(43,388	)

The following table presents revenues by principal geographic area where the Company’s customers are located for the three and nine months ended September 30, 2017 and 2016:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
United States	$	302,129	$	153,563	$	668,153	$	477,742
Europe	30,305		31,710		89,736		96,826
Other	5,959		1,100		8,146		2,959

Total Consolidated Revenue	$	338,393	$	186,373	$	766,035	$	577,527

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2017
Subsequent Events
Subsequent Events	18. Subsequent Events In order to hedge against interest rate fluctuations with respect to term loan borrowings under the Credit Agreement, the Company entered into a standard three year, one-month LIBOR interest rate hedging contract with a notional amount of $347.8 million, which is the remaining principal balance of the term loan. The hedge contract will swap out the floating rate interest risk related to the LIBOR with a fixed interest rate of 1.9275% and will go into effect starting January 12, 2018. On November 8, 2017, the Company’s Board of Directors authorized a share buyback program (the “Share Buyback Program”), pursuant to which the Company may, from time to time, purchase up to 5,000,000 shares of its common stock. Share repurchases may be executed through various means, including, without limitation, open market transactions, privately negotiated transactions or otherwise. The decision as to whether to purchase any shares and the timing of purchases, if any, will be based on the price of the Company’s common stock, general business and market conditions and other investment considerations and factors. The Share Buyback Program does not obligate the Company to purchase any shares and expires in 24 months. The Share Buyback Program may be terminated or amended by the Company’s Board of Directors in its discretion at any time. The Company performed its subsequent event procedures through November 9, 2017, the date these consolidated financial statements were made available for issuance.

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

9 Months Ended

Sep. 30, 2017

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

Use of Estimates

Segment Reporting

The Company consists of the following three segments:

Restricted Cash

Intangible Assets

Customer Relationships

Trade Names

Trademarks

Developed Technology

Capitalized Software Costs

Outsourced Contract Costs

Non-compete agreements

Property, Plant and Equipment

Leases

Stock-Based Compensation

Revenue Recognition

The Company includes reimbursements from clients, such as postage costs, in revenue, while the related costs are included in cost of revenue in the consolidated statement of operations.

Multiple Element Arrangements

Beneficial Conversion Feature

Net Loss per Share

The components of basic and diluted EPS are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net loss attributable to common stockholders (A)	$	(128,040	)	$	(11,798	)	$	(163,233	)	$	(33,419	)
Weighted average common shares outstanding - basic and diluted (B)	138,895,681			64,024,557			92,512,729			64,024,557


Earnings Per Share:
Basic and diluted (A/B)	$	(0.92	)	$	(0.18	)	$	(1.76	)	$	(0.52	)

Recently Adopted and Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

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

9 Months Ended

Sep. 30, 2017

Basis of Presentation and Summary of Significant Accounting Policies

Schedule of components of basic and diluted EPS

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net loss attributable to common stockholders (A)	$	(128,040	)	$	(11,798	)	$	(163,233	)	$	(33,419	)
Weighted average common shares outstanding - basic and diluted (B)	138,895,681			64,024,557			92,512,729			64,024,557


Earnings Per Share:
Basic and diluted (A/B)	$	(0.92	)	$	(0.18	)	$	(1.76	)	$	(0.52	)

Business Combination (Tables)

9 Months Ended

Sep. 30, 2017

Business Combination

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

The following table summarizes the consideration paid for Novitex and the preliminary fair value of the assets acquired and liabilities assumed at the acquisition date on July 12, 2017:

Assets acquired:
Cash and equivalents	$	8,428
Accounts receivable	87,474
Inventory	1,245
Prepaid expenses & other	13,974
Property, plant and equipment, net	60,657
Identifiable intangible Assets, net	251,060
Deferred charges and other assets	2,723
Other noncurrent assets	93
Goodwill	405,141

Total identifiable assets acquired	$	830,795

Liabilities Assumed:
Accounts payable	(29,444		)
Short-term borrowings and current portion of LT debt	(11,335		)
Accrued liabilities	(30,432		)
Advanced billings and customer deposits	(18,926		)
Long term debt	(15,704		)
Deferred taxes	(46,072		)
Other liabilities	(2,226		)

Total liabilities assumed	$	(154,139	)

Total Consideration	$	676,656

Schedule of identifiable intangible assets

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

		$	251,060

Schedule of unaudited pro forma results

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Net Revenue	$	358,166		$	350,784		$	1,069,992		$	1,082,299

Net Loss	(47,098		)	(24,460		)	(64,304		)	(107,772		)

Accounts Receivable (Tables)

9 Months Ended

Sep. 30, 2017

Accounts Receivable

Schedule of Accounts receivable, net

	September 30,			December 31,
	2017			2016
Billed receivables	$	195,437		$	116,148
Unbilled receivables	31,341			20,982
Other	4,868			4,510
Less: Allowance for doubtful accounts	(3,942		)	(3,219		)

	$	227,704		$	138,421

Prepaid Expenses and Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2017

Prepaid Expenses and Other Current Assets

Schedule of Prepaid expenses and other current assets

	September 30,		December 31,
	2017		2016
Prepaids	$	22,923	$	10,906
Deposits	1,340		1,296

	$	24,263	$	12,202

Property, Plant and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment, Net

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

	Estimated Useful	September 30,			December 31,
	Lives (in Years)	2017			2016
Land	N/A	$	7,744		$	7,637
Buildings and improvements	7 - 40	18,450			16,989
Leasehold improvements	Lesser of the useful life or lease term	48,243			31,342
Vehicles	5 - 7	792			784
Machinery and equipment	5 - 15	62,242			23,297
Computer equipment and software	3 - 8	112,490			98,544
Furniture and fixtures	5 - 15	6,993			5,007

		256,954			183,600
Less: Accumulated depreciation and amortization		(123,337		)	(102,000		)

Property, plant and equipment, net		$	133,617		$	81,600

Intangibles Assets and Goodwill (Tables)

9 Months Ended

Sep. 30, 2017

Intangibles Assets and Goodwill

Schedule of intangible assets

	September 30, 2017
	Gross Carrying Amount (a)		Accumulated Amortization			Intangible Asset, net
Customer relationships	504,643		(125,803		)	$	378,840
Developed technology	89,076		(72,806		)	16,270
Trade names	52,470		—			52,470
Outsource contract costs	37,144		(15,020		)	22,124
Internally developed software	24,799		(3,159		)	21,640
Trademarks	23,370		(898		)	22,472
Non-compete agreements	1,350		(293		)	1,057

	$	732,852	$	(217,979	)	$	514,873

	December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Intangible Asset, net
Customer relationships	$	274,643	$	(100,172	)	$	174,471
Developed technology	89,076		(59,539		)	29,537
Trade names	53,370		—			53,370
Outsource contract costs	27,619		(7,378		)	20,241
Internally developed software	16,742		(858		)	15,884
Trademarks	5,370		(134		)	5,236

	$	466,820	$	(168,081	)	$	298,739

(a)

Amounts include intangibles acquired in the Business Combination. Refer to Note 3.

Schedule of goodwill by reporting segment

	Goodwill		Additions			Reductions			Currency translation adjustments		Goodwill
ITPS	$	145,562	$	13,558		$	—		$	274	$	159,394
HS	86,786		—			—			—		86,786
LLPS	127,111		—			—			—		127,111		(a)

Balance as of December 31, 2016	$	359,459	$	13,558		$	—		$	274	$	373,291
ITPS	159,394		405,141		(c)				299		564,834
HS	86,786										86,786
LLPS	127,111		—			(2,721		)(b)	—		124,390		(a)

Balance as of September 30, 2017	$	373,291	$	405,141		$	(2,721	)	$	299	$	776,010

(a)

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

(b)

The reduction in goodwill is due to the sale of Meridian in Q1 2017.

(c)

Addition to goodwill is due to the Novitex acquisition. Refer to Note 3.

Accrued Liabilities and Other Long-Term Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Accrued Liabilities and Other Long-Term Liabilities

Schedule of accrued liabilities

	September 30,		December 31,
	2017		2016
Accrued taxes (exclusive of income taxes)	$	7,521	$	3,309
Accrued lease exit obligations	2,474		3,949
Accrued professional and legal fees	12,821		8,289
Deferred rent	1,136		989
Accrued interest	30,405		8,459
Accrued transaction costs	19,250		2,750
Other accruals	1,652		1,747

	$	75,259	$	29,492

Schedule of other Long-term liabilities

	September 30,		December 31,
	2017		2016
Deferred revenue	$	447	$	235
Deferred rent	7,383		6,110
Accrued lease exit obligations	1,667		672
Accrued compensation expense	2,980		3,783
Other	3,334		1,173

	$	15,811	$	11,973

Long-Term Debt and Credit Facilities (Tables)

9 Months Ended

Sep. 30, 2017

Long-Term Debt and Credit Facilities

Schedule of outstanding long-term debt instruments

	September 30,			December 31,
	2017			2016
First lien revolving credit facility (a)	$	—		$	63,337
First lien secured term loan (b)	—			687,884
Second lien secured term loan (c)	—			236,344
Transcentra revolving credit facility	—			5,000
Transcentra term loan	—			19,250
FTS unsecured term loan	—			15,911
Other (d)	18,104			11,609
First lien credit agreement (e)	309,540			—
Senior secured notes (f)	969,324			—
Senior secured revolving credit facility (g)	—			—

Total debt	1,296,968			1,039,335
Less: Current portion of long-term debt	(18,662		)	(55,833		)

Long-term debt, net of current maturities	$	1,278,306		$	983,502

(a)

Net of unamortized debt issuance costs of $2.3 million as of December 31, 2016

(b)

Net of unamortized original issue discount and debt issuance costs of $14.6 million and $14.2 million as of December 31, 2016

(c)

Net of unamortized original issue discount and debt issuance costs of $7.3 million and $6.3 million as of December 31, 2016

(d)

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

(e)

Net of unamortized original issue discount and debt issuance costs of $10.2 million and $30.2 million as of September 30, 2017

(f)

Net of unamortized original issue discount and debt issuance costs of $21.9 million and $8.8 million as of September 30, 2017

(g)

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

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

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

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

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

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

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2017

Employee Benefit Plans

Schedule of components of the net periodic benefit cost

	Three Months ended September 30,						Nine Months ended September 30,
	2017			2016			2017			2016
Service cost	$	2		$	3		$	6		$	9
Interest cost	585			667			1,708			2,001
Expected return on plan assets	(610		)	(656		)	(1,782		)	(1,968		)
Amortization:
Amortization of prior service cost	(34		)	(35		)	(99		)	(105		)
Amortization of net loss	529			223			1,546			669

Net periodic benefit cost	$	472		$	202		$	1,379		$	606

Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Measurement

Schedule of fair value of financial instruments

	Carrying		Fair		Fair Value Measurements
As of September 30, 2017	Amount		Value		Level 1		Level 2		Level 3
Recurring and nonrecurring assets and liabilities:
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Long-term debt	1,278,306		1,327,130		—		1,327,130		—

	$	1,279,027	$	1,327,851	$	—	$	1,327,130	$	721

	Carrying		Fair		Fair Value Measurements
As of December 31, 2016	Amount		Value		Level 1		Level 2		Level 3
Recurring and nonrecurring assets and liabilities:
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Long-term debt	983,502		$	1,009,913	—		1,009,913

	$	984,223	$	1,010,634	$	—	$	1,009,913	$	721

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

Balance as of January 1, 2016	$	1,513
Payments/Reductions	(792		)

Balance as of December 31, 2016	$	721

Payments/Reductions	—

Balance as of September 30, 2017	$	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

Related-Party Transactions (Tables)

9 Months Ended

Sep. 30, 2017

Related-Party Transactions

Schedule of receivable and payable balances with affiliates

	September 30, 2017		December 31, 2016
	Payables		Payables
HOV Services, Ltd	$	463	$	352
Rule 14	44		134
HGM	13,516		8,858
Presidio	451		—

	$	14,474	$	9,344

Segment and Geographic Area Information (Tables)

9 Months Ended

Sep. 30, 2017

Segment and Geographic Area Information

Schedule of revenue by segment information

	Three months ended September 30, 2017
	ITPS	HS	LLPS	Total
Revenue	260,019	56,405	21,969	338,393
Cost of revenue	204,602	37,451	13,063	255,116

Gross profit	55,417	18,954	8,906	83,277
Selling, general and administrative expenses				102,048
Depreciation and amortization				28,052
Related party expense				26,892
Interest expense, net				37,652
Loss on extinguishment of debt				35,512
Sundry expense, net				563

Net loss before income taxes				$	(147,442	)

	Three months ended September 30, 2016
	ITPS	HS	LLPS	Total
Revenue	97,402	60,657	28,314	186,373
Cost of revenue	66,704	38,729	16,347	121,780

Gross profit	30,698	21,928	11,967	64,593
Selling, general and administrative expenses				30,829
Depreciation and amortization				18,761
Related party expense				2,448
Interest expense, net				27,399
Loss on extinguishment of debt				—
Sundry expense, net				711

Net loss before income taxes				$	(15,555	)

	Nine months ended September 30, 2017
	ITPS	HS	LLPS	Total
Revenue	525,557	173,548	66,930	766,035
Cost of revenue	385,447	113,152	40,643	539,242

Gross profit	140,110	60,396	26,287	226,793
Selling, general and administrative expenses				172,626
Depreciation and amortization				70,779
Related party expense				31,733
Interest expense, net				91,740
Loss on extinguishment of debt				35,512
Sundry expense, net				2,960

Net loss before income taxes				$	(178,557	)

	Nine months ended September 30, 2016
	ITPS	HS	LLPS	Total
Revenue	309,112	189,046	79,369	577,527
Cost of revenue	208,614	120,700	48,386	377,700

Gross profit	100,498	68,346	30,983	199,827
Selling, general and administrative expenses				95,385
Depreciation and amortization				58,463
Related party expense				7,372
Interest expense, net				81,712
Loss on extinguishment of debt				—
Sundry expense, net				283

Net loss before income taxes				$	(43,388	)

Schedule of revenues by principal geographic area

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
United States	$	302,129	$	153,563	$	668,153	$	477,742
Europe	30,305		31,710		89,736		96,826
Other	5,959		1,100		8,146		2,959

Total Consolidated Revenue	$	338,393	$	186,373	$	766,035	$	577,527

Description of the Business (Details)	9 Months Ended
Description of the Business (Details)	Sep. 30, 2017 segment
Description of the Business
Industry verticals	3

Basis of Presentation and Summary of Significant Accounting Policies - Basis of Presentation and Segment Reporting (Details) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017 $ / shares	Sep. 30, 2017 $ / shares	Sep. 30, 2017 segment $ / shares	Jul. 11, 2017 USD ($)	Dec. 31, 2016 $ / shares
Common stock, par value (in dollars per share) \| $ / shares	$ 0.0001	$ 0.0001	$ 0.0001		$ 0.0001
Segment Reporting
Number of segments \| segment			3
SourceHOV and Quinpario
Net cash from trust				$ 27.0
Accrued fees payable				$ 4.8
SourceHOV
Segment Reporting
Fiscal period duration		92 days
Novitex
Segment Reporting
Fiscal period duration	80 days

Basis of Presentation and Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Restricted Cash
Restricted cash	$ 37,315	$ 25,892
Restricted cash not subject to legal restrictions	$ 19,200	$ 17,100

Basis of Presentation and Summary of Significant Accounting Policies - Intangible Assets (Details)	9 Months Ended
	Sep. 30, 2017 category employee
Intangible Assets
Estimated useful life acquired intangibles	15 years 4 months 24 days
Customer relationships
Intangible Assets
Estimated useful life acquired intangibles	16 years
Customer relationships \| Maximum
Intangible Assets
Estimated useful life acquired intangibles	16 years
Customer relationships \| Minimum
Intangible Assets
Estimated useful life acquired intangibles	3 years
Trademarks
Intangible Assets
Estimated useful life	10 years
Developed technology
Intangible Assets
Estimated useful life	5 years
Capitalized Software Costs
Intangible Assets
Estimated useful life	5 years
Internally developed software
Intangible Assets
Estimated useful life acquired intangibles	5 years
Outsource contract costs
Intangible Assets
Number of principal categories \| category	2
Non-compete agreements
Intangible Assets
Estimated useful life acquired intangibles	1 year
Non-compete agreements \| Executives
Intangible Assets
Positions eliminated \| employee	4
Novitex \| Trademarks
Intangible Assets
Estimated useful life acquired intangibles	9 years 6 months

Basis of Presentation and Summary of Significant Accounting Policies - Beneficial Conversion Feature and Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 12, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Beneficial Conversion Feature
Preferred stock, par value (in dollars per share)		$ 0.0001		$ 0.0001		$ 0.0001
Dividend equivalent on Series A convertible preferred shares related to beneficial conversion feature		$ 1,225		$ 1,225
Net Loss per Share
Net loss attributable to common stockholders		$ (128,040)	$ (11,798)	$ (163,233)	$ (33,419)
Weighted average number of common shares outstanding - basic and diluted		138,895,681	64,024,557	92,512,729	64,024,557
Basic and diluted (in dollars per share)		$ (0.92)	$ (0.18)	$ (1.76)	$ (0.52)
Series A Preferred Stock
Beneficial Conversion Feature
Preferred stock, par value (in dollars per share)		$ 0.0001		$ 0.0001
Net Loss per Share
Number of anti-dilutive shares excluded from computation of diluted loss per share				7,573,066
Warrants
Net Loss per Share
Number of anti-dilutive shares excluded from computation of diluted loss per share	35,000,000

Business Combination (Details) - USD ($) $ in Thousands	Jul. 12, 2017	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition
Common stock, shares outstanding	146,910,648	150,578,451	64,024,557
Preferred stock, shares outstanding	9,194,233	6,194,233	0
Transaction costs incurred and paid		$ 69,300
Assets acquired:
Goodwill		$ 776,010	$ 373,291	$ 359,459
Warrants
Business Acquisition
Warrants, shares outstanding	35,000,000	35,000,000
SourceHOV and Novitex
Business Acquisition
Acquired debt	$ 1,400,000
Novitex
Business Acquisition
Acquired debt	$ 420,500
Ownership percentage acquired	100.00%
Shares issued in business combination (in shares)	30,600,000
Amount of equity transactions	$ 244,800
Transaction costs incurred and paid	10,300
Business acquisition, interest expense paid	1,000
Assets acquired:
Cash and equivalents	8,428
Accounts receivable	87,474
Inventory	1,245
Prepaid expenses & other	13,974
Property, plant and equipment, net	60,657
Identifiable intangible Assets, net	251,060
Deferred charges and other assets	2,723
Other noncurrent assets	93
Goodwill	405,141
Total identifiable assets acquired	830,795
Liabilities Assumed:
Accounts payable	(29,444)
Short-term borrowings and current portion of LT debt	(11,335)
Accrued liabilities	(30,432)
Advanced billings and customer deposits	(18,926)
Long term debt	(15,704)
Deferred taxes	(46,072)
Other liabilities	(2,226)
Total liabilities assumed	(154,139)
Total Consideration	$ 676,656

Business Combination - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jul. 12, 2017
Intangible Assets
Weighted Average Useful Life (in years)				15 years 4 months 24 days
Fair value	$ 251,060	$ 251,060		$ 251,060
Revenue		338,393	$ 186,373	766,035	$ 577,527
Net loss		(147,442)	(15,555)	(178,557)	(43,388)
ITPS
Intangible Assets
Revenue		260,019	$ 97,402	$ 525,557	$ 309,112
Customer relationships
Intangible Assets
Weighted Average Useful Life (in years)				16 years
Fair value	230,000	230,000		$ 230,000
Internally developed software
Intangible Assets
Weighted Average Useful Life (in years)				5 years
Fair value	1,710	1,710		$ 1,710
Non-compete agreements
Intangible Assets
Weighted Average Useful Life (in years)				1 year
Fair value	1,350	1,350		$ 1,350
Novitex \| ITPS
Intangible Assets
Amount of goodwill recorded with tax deductible						$ 14,000
Revenue	134,400
Net loss	5,000
Novitex \| Trademark and trade name
Intangible Assets
Weighted Average Useful Life (in years)				9 years 6 months
Fair value	$ 18,000	$ 18,000		$ 18,000

Business Combination - Transaction Costs and Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Jul. 12, 2017
Transaction Costs
Transaction costs	$ 69,300	$ 69,300
Equity issuance costs		7,649
Debt issuance costs	40,900	40,900	$ 3,300
Executives
Restructuring Charges
Severance expense	4,600
Other terminations
Restructuring Charges
Severance expense	$ 100
Accrued compensation and benefits
Restructuring Charges
Restructuring charges		$ 2,100

Business Combination - Pro forma Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Unaudited pro forma results of operations
Net Revenue	$ 358,166	$ 350,784	$ 1,069,992	$ 1,082,299
Net loss	$ (47,098)	$ (24,460)	$ (64,304)	$ (107,772)

Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts Receivable
Billed receivables	$ 195,437	$ 116,148
Unbilled receivables	31,341	20,982
Other	4,868	4,510
Less: Allowance for doubtful accounts	(3,942)	(3,219)
Accounts Receivable, Net	$ 227,704	$ 138,421

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Prepaid Expenses and Other Current Assets
Prepaids	$ 22,923	$ 10,906
Deposits	1,340	1,296
Prepaid expenses and other current assets	$ 24,263	$ 12,202

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 256,954	$ 183,600
Less: Accumulated depreciation and amortization	(123,337)	(102,000)
Property, plant and equipment, net	133,617	81,600
Land
Property, Plant and Equipment, Net
Property, plant and equipment, gross	7,744	7,637
Buildings and improvements
Property, Plant and Equipment, Net
Property, plant and equipment, gross	18,450	16,989
Leasehold improvements
Property, Plant and Equipment, Net
Property, plant and equipment, gross	48,243	31,342
Vehicles
Property, Plant and Equipment, Net
Property, plant and equipment, gross	792	784
Machinery and equipment
Property, Plant and Equipment, Net
Property, plant and equipment, gross	62,242	23,297
Computer equipment and software
Property, Plant and Equipment, Net
Property, plant and equipment, gross	112,490	98,544
Furniture and fixtures
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 6,993	$ 5,007

Property, Plant and Equipment, Net - Useful Lives (Details)	9 Months Ended
	Sep. 30, 2017
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
Vehicles \| Minimum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	5 years
Vehicles \| Maximum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	7 years
Machinery and equipment \| Minimum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	5 years
Machinery and equipment \| Maximum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	15 years
Computer equipment and software \| Minimum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	3 years
Computer equipment and software \| Maximum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	8 years
Furniture and fixtures \| Minimum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	5 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment, Net
Estimated Useful Lives (in Years)	15 years

Intangibles Assets and Goodwill - Intangibles (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Intangibles
Gross Carrying Amount	$ 732,852	$ 466,820
Accumulated Amortization	(217,979)	(168,081)
Intangible Asset, net	514,873	298,739
Customer relationships
Intangibles
Gross Carrying Amount	504,643	274,643
Accumulated Amortization	(125,803)	(100,172)
Intangible Asset, net	378,840	174,471
Developed technology
Intangibles
Gross Carrying Amount	89,076	89,076
Accumulated Amortization	(72,806)	(59,539)
Intangible Asset, net	16,270	29,537
Trade names
Intangibles
Gross Carrying Amount	52,470	53,370
Intangible Asset, net	52,470	53,370
Outsource contract costs
Intangibles
Gross Carrying Amount	37,144	27,619
Accumulated Amortization	(15,020)	(7,378)
Intangible Asset, net	22,124	20,241
Internally developed software
Intangibles
Gross Carrying Amount	24,799	16,742
Accumulated Amortization	(3,159)	(858)
Intangible Asset, net	21,640	15,884
Trademarks
Intangibles
Gross Carrying Amount	23,370	5,370
Accumulated Amortization	(898)	(134)
Intangible Asset, net	22,472	$ 5,236
Non-compete agreements
Intangibles
Gross Carrying Amount	1,350
Accumulated Amortization	(293)
Intangible Asset, net	$ 1,057

Intangibles Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Jul. 12, 2017
Goodwill
Goodwill, beginning of the period	$ 373,291	$ 359,459
Additions	405,141	13,558
Reductions	(2,721)
Currency translation adjustments	299	274
Goodwill, end of the period	776,010	373,291
Novitex
Goodwill
Goodwill associated with deferred tax liabilities			$ 46,072
ITPS
Goodwill
Goodwill, beginning of the period	159,394	145,562
Additions	405,141	13,558
Currency translation adjustments	299	274
Goodwill, end of the period	564,834	159,394
HS
Goodwill
Goodwill, beginning of the period	86,786	86,786
Goodwill, end of the period	86,786	86,786
LLPS
Goodwill
Goodwill, beginning of the period	127,111	127,111
Reductions	(2,721)
Goodwill, end of the period	124,390	127,111
Accumulated impairment losses	$ 137,900	$ 137,900

Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accrued liabilities
Accrued taxes (exclusive of income taxes)	$ 7,521	$ 3,309
Accrued lease exit obligations	2,474	3,949
Accrued professional and legal fees	12,821	8,289
Deferred rent	1,136	989
Accrued interest	30,405	8,459
Accrued transaction costs	19,250	2,750
Other accruals	1,652	1,747
Accrued liabilities	75,259	29,492
Other Long-term liabilities
Deferred revenue	447	235
Deferred rent	7,383	6,110
Accrued lease exit obligations	1,667	672
Accrued compensation expense	2,980	3,783
Other	3,334	1,173
Other Long-term liabilities	$ 15,811	$ 11,973

Long-Term Debt and Credit Facilities - Senior Credit Facilities (Details) - USD ($) $ in Millions	Jul. 12, 2017	Sep. 30, 2017
Senior secured term loan
Debt instruments
Debt unamortized discount		$ 10.2
Senior secured term loan \| First Lien Credit Agreement
Debt instruments
Debt instrument face amount	$ 350.0
Debt unamortized discount	$ 7.0
Principal percentage of each of first eight payments (as a percent)	0.63%
Principal percentage of each payment thereafter (as a percent)	1.30%
Senior secured revolving facility \| First Lien Credit Agreement
Debt instruments
Maximum borrowing capacity	$ 100.0
Current borrowings outstanding	$ 0.0
LIBOR \| Senior secured term loan \| First Lien Credit Agreement
Debt instruments
Interest rate (as a percent)	1.00%
Applicable margin (as a percent)	7.50%
LIBOR \| Senior secured revolving facility \| First Lien Credit Agreement
Debt instruments
Applicable margin (as a percent)	7.00%
Base rate \| Senior secured term loan \| First Lien Credit Agreement
Debt instruments
Interest rate (as a percent)	6.50%
Base rate \| Senior secured revolving facility \| First Lien Credit Agreement
Debt instruments
Applicable margin (as a percent)	6.00%

Long-Term Debt and Credit Facilities - Senior Secured Notes (Details) - Senior secured notes - USD ($) $ in Millions	Sep. 30, 2017	Jul. 12, 2017
Debt instruments
Debt instrument face amount		$ 1,000.0
Debt unamortized discount	$ 21.9	$ 22.5
Interest rate (in percent)		10.00%

Long-Term Debt and Credit Facilities - Debt Refinancing (Details) - USD ($) $ in Thousands		9 Months Ended
	Jul. 12, 2017	Sep. 30, 2017
Debt instruments
Repayments of Long-term Lines of Credit		$ 1,055,736
Payments to Acquire Businesses, Net of Cash Acquired		423,428
Debt issuance costs	$ 3,300	$ 40,900
Write off of unamortized issuance costs and discount costs	30,500
Debt discount	3,500
Payments of Debt Extinguishment Costs	5,000
SourceHOV
Debt instruments
Repayments of Long-term Lines of Credit	1,050,700
Novitex
Debt instruments
Payments to Acquire Businesses, Net of Cash Acquired	420,500
Senior secured term loan
Debt instruments
Debt issuance costs	28,900
Third party debt issuance costs	2,800
Expensed debt issuance costs	1,100
Capitalized debt issuance costs	$ 27,800

Long-Term Debt and Credit Facilities - Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands		9 Months Ended
	Jul. 12, 2017	Sep. 30, 2017	Dec. 31, 2016
Debt instruments
Total debt		$ 1,296,968	$ 1,039,335
Less: Current portion of long-term debt		(18,662)	(55,833)
Long-term debt, net of current maturities		1,278,306	983,502
Senior secured term loan
Debt instruments
Total debt		309,540
Unamortized issue discounts		10,200
Unamortized debt issuance costs		30,200
Capitalized debt issuance costs	$ 27,800
Senior secured notes
Debt instruments
Total debt		969,324
Unamortized issue discounts	22,500	21,900
Unamortized debt issuance costs		8,800
Senior secured revolving facility
Debt instruments
Outstanding credit facility		22,800	9,300
First lien revolving credit facility
Debt instruments
Total debt			63,337
Unamortized debt issuance costs			2,300
First lien secured term loan
Debt instruments
Total debt			687,884
Unamortized issue discounts			14,600
Unamortized debt issuance costs			14,200
Second lien secured term loan
Debt instruments
Total debt			236,344
Unamortized issue discounts			7,300
Unamortized debt issuance costs			6,300
Transcentra revolving credit facility
Debt instruments
Total debt			5,000
Transcentra term loan
Debt instruments
Total debt			19,250
FTS unsecured term loan
Debt instruments
Total debt			15,911
Other
Debt instruments
Total debt		18,104	$ 11,609
First Lien Credit Agreement \| Senior secured term loan
Debt instruments
Unamortized issue discounts	$ 7,000
Other non current assets \| Senior secured revolving facility
Debt instruments
Capitalized debt issuance costs		$ 3,000

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Taxes
Income tax benefit	$ 37,002	$ 3,757	$ 32,924	$ 9,969
Actual effective tax rate	25.12%	23.29%	18.44%	22.98%
Statutory tax rate	35.00%	35.00%	35.00%	35.00%
Income tax benefit from the reversal of valuation allowance on deferred tax assets			$ 11,500

Employee Benefit Plans (Details) $ in Thousands	3 Months Ended		9 Months Ended
Employee Benefit Plans (Details) $ in Thousands	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) age individual	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Employee Benefit Plans
Unrealized pension actuarial losses, net of tax	$ 13,839		$ 13,839		$ 12,339
Deferred tax benefit	2,200		2,200		$ 2,500
Net periodic benefit cost
Service cost	2	$ 3	6	$ 9
Interest cost	585	667	1,708	2,001
Expected return on plan assets	(610)	(656)	(1,782)	(1,968)
Amortization of prior service cost	(34)	(35)	(99)	(105)
Amortization of net loss	529	223	1,546	669
Net periodic benefit cost	472	202	1,379	606
Employer contributions			$ 2,300	2,000
Former executives in U.S.
Executive Deferred Compensation Plan
Number of individuals \| individual			7
Deferred compensation plan, qualifying age \| age			65
Deferred compensation plan, period			20 years
Deferred compensation plan, benefits paid	100	100	$ 200	200
Deferred compensation plan, expense	200	$ 500		$ 700
Deferred compensation plan, benefit			300
Deferred compensation plan, benefits payable	100		100
German Pension Plan
Employee Benefit Plans
Plan, plan assets	$ 0		$ 0
German Pension Plan \| Minimum
Employee Benefit Plans
Qualifying period			10 years
U.K. Pension Plan
Employee Benefit Plans
Weighted average expected long-term rate on plan assets			5.16%
U.K. Pension Plan \| Minimum
Employee Benefit Plans
Required years prior to retirement for eligibility			3 years
Historical performance period			15 years
U.K. Pension Plan \| Maximum
Employee Benefit Plans
Historical performance period			20 years

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

Fair Value Measurement (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
Fair Value Measurement (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Senior secured notes
Assets and liabilities measured at fair value on a non-recurring basis
Fair value percentage	98.30%
Senior secured term loan
Assets and liabilities measured at fair value on a non-recurring basis
Fair value percentage	98.60%
Novitex
Assets and liabilities measured at fair value on a non-recurring basis
Other long term debt	$ 11,700
Level 3
Reconciliation of net assets and liabilities
Beginning balance	721	$ 1,513
Payments/Reductions		(792)
Ending balance	721	721
Carrying Amount
Carrying amounts and estimated fair values of financial instruments
Acquisition contingent liability	721	721
Long-term debt	1,278,306	983,502
Total	1,279,027	984,223
Fair Value
Carrying amounts and estimated fair values of financial instruments
Acquisition contingent liability	721	721
Long-term debt	1,327,130	1,009,913
Total	1,327,851	1,010,634
Fair Value \| Level 2
Carrying amounts and estimated fair values of financial instruments
Long-term debt	1,327,130	1,009,913
Total	1,327,130	1,009,913
Fair Value \| Level 3
Carrying amounts and estimated fair values of financial instruments
Acquisition contingent liability	721	721
Total	$ 721	$ 721

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Stock-Based Compensation
Share-based compensation expense		$ 4,446	$ 5,422
Restricted stock units (RSUs) \| 2013 Long Term Incentive Plan
Stock-Based Compensation
Restricted stock units outstanding	24,535	24,535
Unvested RSUs	9,880	9,880
Share-based compensation expense	$ 2,200	$ 4,400
Non-employee advisors
Awards to Non-employees
Compensation expense	$ 28,600
Fair value per share	$ 8.00
Common Stock \| Non-employee advisors
Awards to Non-employees
Stock issued		3,609,375

Stockholders' Equity - Common Stock (Details)		9 Months Ended
Stockholders' Equity - Common Stock (Details)	Jul. 12, 2017 shareholder $ / shares shares	Sep. 30, 2017 Vote shares	Dec. 31, 2016 shares
Common Stock
Common stock, shares authorized		1,600,000,000	1,600,000,000
Common stock, shares, outstanding	146,910,648	150,578,451	64,024,557
Shares issued to third party advisors (in shares)	3,609,375
Common stock issued in secondary offering		150,578,451	64,024,557
Common stock bonuses (as a percent)	25.00%
Number of shareholders returned the agreements \| shareholder	7
Additional shares issued under conversion agreement	841,876
Number of voting rights entitled for each share of common stock held \| Vote		1
Secondary offering
Common Stock
Common stock issued in secondary offering	16,358,389
Common stock issue price per share issued in secondary offering \| $ / shares	$ 8.00
Additional bonus shares issued	2,399,553
Novitex
Common Stock
Shares issued in business combination (in shares)	30,600,000
Series A Preferred Stock
Common Stock
Number of preferred shares converted		3,000,000
Common Stock
Common Stock
Issuance of common stock upon conversion (in shares)		3,667,803
Common Stock \| SourceHOV
Common Stock
Shares issued in business combination (in shares)	80,600,000
Common Stock \| Novitex
Common Stock
Shares issued in business combination (in shares)	30,600,000
Common Stock \| Quinpario
Common Stock
Shares issued in business combination (in shares)	12,093,331
Common Stock \| Series A Preferred Stock
Common Stock
Issuance of common stock upon conversion (in shares)		3,667,803

Stockholders' Equity - Preferred Stock (Details) - $ / shares	9 Months Ended
	Sep. 30, 2017	Jul. 12, 2017	Dec. 31, 2016
Preferred Stock
Preferred stock, shares authorized	20,000,000		20,000,000
Preferred stock, shares issued	6,194,233		0
Preferred stock, par value (in dollars per share)	$ 0.0001		$ 0.0001
Preferred stock, shares outstanding	6,194,233	9,194,233	0
Series A Preferred Stock
Preferred Stock
Preferred stock, shares authorized	20,000,000
Preferred stock, shares issued		9,194,233
Preferred stock, par value (in dollars per share)	$ 0.0001
Conversion ratio to common stock	1.2226
Conversion price (in dollars per share)	$ 8.80
Third anniversary expected liquidation preference (in dollars per share)	$ 10.75911
Number of common stock issuable upon conversion of all convertible preferred shares	11,240,869
Preferred stock, shares converted	3,000,000
Additional common stock issuable upon conversion of remaining convertible shares	7,573,066
Preferred stock, shares outstanding	6,194,233
Preferred stock, cumulative dividends rate (in percentage)	10.00%
Common Stock
Preferred Stock
Issuance of common stock upon conversion (in shares)	3,667,803
Common Stock \| Series A Preferred Stock
Preferred Stock
Issuance of common stock upon conversion (in shares)	3,667,803

Stockholders' Equity - Warrants (Details)	9 Months Ended
Stockholders' Equity - Warrants (Details)	Sep. 30, 2017 item $ / shares shares	Jul. 12, 2017 shares
Warrants
Number of common stock each warrant may purchase	0.5
Exercise price of warrant per half of common stock \| $ / shares	$ 5.75
Exercise price of warrant per one common stock (in US$ per share) \| $ / shares	$ 11.5
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	35,000,000	35,000,000
Warrants \| IPO
Warrants
Units issued	35,000,000
Common stock included in units	1
Warrants included in units	1

Related-Party Transactions (Details) $ in Thousands	3 Months Ended		9 Months Ended
Related-Party Transactions (Details) $ in Thousands	Sep. 30, 2017 USD ($) shares	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) director	Sep. 30, 2016 USD ($)	Jul. 13, 2017 USD ($)	Dec. 31, 2016 USD ($)
Related-Party Transactions
Related party expense	$ 26,892	$ 2,448	$ 31,733	$ 7,372
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	14,474		14,474			$ 9,344
Oakana Holdings, Inc.
Related-Party Transactions
Consulting agreement expenses	100		100
HOV RE, LLC
Related-Party Transactions
Rental expense for operating leases	200	200	500	500
HOV Services, Ltd
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	463		463			352
HOV Services, Ltd \| Cost of revenue
Related-Party Transactions
Expense recognized	400	400	1,300	1,300
HGM
Related-Party Transactions
Management fees	3,000	1,500	6,000	4,500
Management fee payable					$ 0
Reimbursable travel expenses	0	200	500	800
Contract cancellation and advising fees	23,000
Contract cancellation and advising fees in the form of contributed capital	$ 10,000
Common stock, shares issued for contract cancellation and advising fees (in shares) \| shares	1,250,000
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	$ 13,516		$ 13,516			8,858
Apollo Global Management, LLC
Related-Party Transactions
Number of Company directors that can be designated by the related party \| director			2
Related party expense	200		$ 200
Rule 14
Related-Party Transactions
Marketing fees	100	$ 100	300	$ 300
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	44		44			$ 134
Presidio
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	$ 451		$ 451

Segment and Geographic Area Information - Revenue by segment information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) segment	Sep. 30, 2016 USD ($)
Segment information
Number of segments \| segment			3
Revenue	$ 338,393	$ 186,373	$ 766,035	$ 577,527
Cost of revenue	255,116	121,780	539,242	377,700
Gross profit	83,277	64,593	226,793	199,827
Selling, general and administrative expenses	102,048	30,829	172,626	95,385
Depreciation and amortization	28,052	18,761	70,779	58,463
Related party expense	26,892	2,448	31,733	7,372
Interest expense, net	37,652	27,399	91,740	81,712
Loss on extinguishment of debt	35,512		35,512
Sundry expense, net	563	711	2,960	283
Net loss before income taxes	(147,442)	(15,555)	(178,557)	(43,388)
ITPS
Segment information
Revenue	260,019	97,402	525,557	309,112
Cost of revenue	204,602	66,704	385,447	208,614
Gross profit	55,417	30,698	140,110	100,498
HS
Segment information
Revenue	56,405	60,657	173,548	189,046
Cost of revenue	37,451	38,729	113,152	120,700
Gross profit	18,954	21,928	60,396	68,346
LLPS
Segment information
Revenue	21,969	28,314	66,930	79,369
Cost of revenue	13,063	16,347	40,643	48,386
Gross profit	$ 8,906	$ 11,967	$ 26,287	$ 30,983

Segment and Geographic Area Information - Revenues by principal geographic area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues by principal geographic area
Revenue	$ 338,393	$ 186,373	$ 766,035	$ 577,527
United States
Revenues by principal geographic area
Revenue	302,129	153,563	668,153	477,742
Europe
Revenues by principal geographic area
Revenue	30,305	31,710	89,736	96,826
Other
Revenues by principal geographic area
Revenue	$ 5,959	$ 1,100	$ 8,146	$ 2,959

Subsequent Events (Details) - Subsequent Events - USD ($) $ in Millions		1 Months Ended
	Nov. 08, 2017	Nov. 09, 2017
Share Buyback Program
Subsequent Events
Term of share buyback program (in months)	24 months
Share Buyback Program \| Maximum
Subsequent Events
Authorized amount (in shares)	5,000,000
Hedging contracts
Subsequent Events
Term of hedging contract (in years)		3 years
Hedging contract amount		$ 347.8
Fixed interest rate (in percent)		1.9275%

Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details)	9 Months Ended
	Sep. 30, 2017
Maximum
Revenue Recognition
Service arrangements contract term (in years)	5 years
Minimum
Revenue Recognition
Service arrangements contract term (in years)	1 year