Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	May 08, 2019
Document and Entity Information
Entity Registrant Name	Exela Technologies, Inc.
Entity Central Index Key	0001620179
Amendment Flag	true
Amendment Description	This Amendment No. 1 to the Quarterly Report on Form 10-Q/A (the "Amendment") of Exela Technologies, Inc. (the "Company") is being filed to amend the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2019, which was originally filed with the Securities and Exchange Commission on May 10, 2019 (the "Original Filing"). The Amendment corrects a scrivener's error in the presentation of the ‘Balance sheet location' table in Note 4, Leases, in the Notes to the Condensed Consolidated Financial Statement, to change the line item ‘Finance lease right-of-use asset, net (including property, plant and equipment, net)' by replacing 17,351 in the Original Filing with 30,265 for March 31, 2019. For the convenience of the reader, the Amendment restates in its entirety the remainder of Original Filing, and no other changes have been made.
Current Fiscal Year End Date	--12-31
Document Type	10-Q/A
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		150,142,955

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 8,262	$ 25,615
Restricted cash	4,998	18,239
Accounts receivable, net of allowance for doubtful accounts of $5,913 and $4,359 respectively	278,064	270,812
Inventories, net	16,321	16,220
Prepaid expenses and other current assets	25,330	25,015
Total current assets	332,975	355,901
Property, plant and equipment, net	129,621	132,986
Operating lease right-of-use asset, net	100,727
Goodwill	708,285	708,258
Intangible assets, net	397,412	407,021
Deferred income tax assets	16,202	16,225
Other noncurrent assets	17,667	19,391
Total assets	1,702,889	1,639,782
Current liabilities
Accounts payable	90,924	99,853
Related party payables	6,184	7,735
Income tax payable	4,898	1,996
Accrued liabilities	63,138	66,008
Accrued compensation and benefits	57,961	54,583
Accrued interest	23,928	49,071
Customer deposits	28,410	34,235
Deferred revenue	19,966	16,504
Obligation for claim payment	46,063	56,002
Current portion of finance lease obligations	15,961	17,498
Current portion of operating lease obligations	27,368
Current portion of long-term debt	32,821	29,237
Total current liabilities	417,622	432,722
Long-term debt, net of current maturities	1,336,152	1,306,423
Finance lease obligations, net of current portion	27,231	26,738
Pension liability	25,514	25,269
Deferred income tax liabilities	12,439	11,212
Long-term income tax liability	3,158	3,024
Operating lease right-of-use liability, net of current portion	78,290
Other long-term liabilities	6,747	15,400
Total liabilities	1,907,153	1,820,788
Commitment and Contingencies (Note 9)
Stockholders' equity (deficit)
Common stock, par value of $0.0001 per share; 1,600,000,000 shares authorized; 152,692,140 shares issued and 150,142,955 outstanding at March 31, 2019 and December 31, 2018	15	15
Preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; 4,569,233 shares issued and outstanding at March 31, 2019 and December 31, 2018	1	1
Additional paid in capital	482,018	482,018
Less: common stock held in treasury, at cost; 2,549,185 shares at March 31, 2019 and December 31, 2018	(10,342)	(10,342)
Equity-based compensation	44,529	41,731
Accumulated deficit	(707,787)	(678,563)
Accumulated other comprehensive loss:
Foreign currency translation adjustment	(3,173)	(6,565)
Unrealized pension actuarial losses, net of tax	(9,525)	(9,301)
Total accumulated other comprehensive loss	(12,698)	(15,866)
Total stockholders’ deficit	(204,264)	(181,006)
Total liabilities and stockholders’ deficit	$ 1,702,889	$ 1,639,782

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$ 5,913	$ 4,359
Accumulated depreciation on property, plant and equipment	$ 163,199	$ 154,060
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock shares authorized	1,600,000,000	1,600,000,000
Common stock, shares issued	152,692,140	152,692,140
Common stock, shares outstanding	150,142,955	150,142,955
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	4,569,233	4,569,233
Preferred stock, shares outstanding	4,569,233	4,569,233
Common stock held in treasury at cost (in shares)	2,549,185	2,549,185

Condensed Consolidated Statement of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statement of Operations
Revenue	$ 403,765	$ 393,167
Cost of revenue (exclusive of depreciation and amortization)	306,882	293,792
Selling, general and administrative expenses	49,949	45,595
Depreciation and amortization	28,020	38,019
Related party expense	994	1,105
Operating income	17,920	14,656
Other expense (income), net:
Interest expense, net	38,899	38,017
Sundry expense (income), net	2,531	(64)
Other income, net	1,677	(3,328)
Net loss before income taxes	(25,187)	(19,969)
Income tax (expense) benefit	(4,720)	(4,025)
Net loss	(29,907)	(23,994)
Cumulative dividends for Series A Preferred Stock	(914)	(914)
Net loss attributable to common stockholders	$ (30,821)	$ (24,908)
Loss per share - basic and diluted (in dollars per share)	$ (0.21)	$ (0.16)

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statements of Comprehensive Loss
Net Loss	$ (29,907)	$ (23,994)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	3,392	(268)
Unrealized pension actuarial gains (losses), net of tax	(224)	(403)
Total other comprehensive loss, net of tax	$ (26,739)	$ (24,665)

- Definition

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

+ References + Details

Condensed Consolidated Statements of Stockholders’ Deficit - USD ($) $ in Thousands	Common Stock	Preferred Stock	Treasury Stock	Additional Paid-in Capital	Equity-based Compensation	Foreign Currency Translation Adjustment	Unrealized Pension Actuarial Losses, net of tax	Accumulated Deficit	Total
Beginning balance at Dec. 31, 2017	$ 15	$ 1	$ (249)	$ 482,018	$ 34,085	$ (194)	$ (11,054)	$ (514,628)	$ (10,006)
Beginning balance (in shares) at Dec. 31, 2017	150,529,151	6,194,233	49,300
Increase (Decrease) in Stockholders’ Equity (Deficit)
Implementation of ASU								(1,419)	(1,419)
Net Loss								(23,994)	(23,994)
Equity-based compensation					959				959
Foreign currency translation adjustment						(268)			(268)
Net realized pension actuarial gains, net of tax							(403)		$ (403)
Preferred shares converted to common	1,986,767	(1,625,000)
Shares Repurchased (in shares)									0
Ending balance at Mar. 31, 2018	$ 15	$ 1	$ (249)	482,018	35,044	(462)	(11,457)	(540,041)	$ (35,131)
Ending balance (in shares) at Mar. 31, 2018	152,515,918	4,569,233	49,300
Beginning balance at Dec. 31, 2018	$ 15	$ 1	$ (10,342)	482,018	41,731	(6,565)	(9,301)	(678,563)	(181,006)
Beginning balance (in shares) at Dec. 31, 2018	150,142,955	4,569,233	2,549,185
Increase (Decrease) in Stockholders’ Equity (Deficit)
Implementation of ASU								683	683
Net Loss								(29,907)	(29,907)
Equity-based compensation					2,798				2,798
Foreign currency translation adjustment						3,392			3,392
Net realized pension actuarial gains, net of tax							(224)		$ (224)
Shares Repurchased (in shares)									0
Ending balance at Mar. 31, 2019	$ 15	$ 1	$ (10,342)	$ 482,018	$ 44,529	$ (3,173)	$ (9,525)	$ (707,787)	$ (204,264)
Ending balance (in shares) at Mar. 31, 2019	150,142,955	4,569,233	2,549,185

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities
Net loss	$ (29,907)	$ (23,994)
Adjustments to reconcile net loss
Depreciation and amortization	28,020	38,019
Original issue discount and debt issuance cost amortization	2,852	2,595
Provision for doubtful accounts	800	481
Deferred income tax provision	1,076	835
Share-based compensation expense	2,798	959
Foreign currency remeasurement	35	(323)
Loss on sale of assets	9	253
Fair value adjustment for interest rate swap	1,677	(3,328)
Change in operating assets and liabilities, net of effect from acquisitions
Accounts receivable	(8,742)	(10,876)
Prepaid expenses and other assets	(632)	(5,567)
Accounts payable and accrued liabilities	(33,574)	(18,864)
Related party payables	(1,551)	(273)
Net cash used in operating activities	(37,139)	(20,083)
Cash flows from investing activities
Purchase of property, plant and equipment	(5,572)	(5,957)
Additions to internally developed software	(1,879)	(1,092)
Additions to outsourcing contract costs	(5,561)	(1,596)
Proceeds from sale of Assets	7	2
Net cash used in investing activities	(13,005)	(8,643)
Cash flows from financing activities
Repurchases of common stock	(2,872)
Proceeds from financing obligation	566	1,863
Cash paid for equity issue costs		(7,500)
Net borrowings under factoring agreement	1,118
Borrowings from revolver and swing-line loan	51,000	25,000
Repayments from revolver and swing-line loan	(21,000)	(25,000)
Principal payments on finance lease obligations	(5,077)	(4,803)
Principal payments on long-term obligations	(4,153)	(2,947)
Net cash provided by (used in) financing activities	19,582	(13,387)
Effect of exchange rates on cash	(32)	55
Net decrease in cash and cash equivalents	(30,594)	(42,058)
Cash, restricted cash, and cash equivalents
Beginning of period	43,854	81,489
End of period	13,260	39,431
Supplemental cash flow data:
Income tax payments, net of refunds received	1,356	1,053
Interest paid	60,573	66,192
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements	4,097	4,432
Accrued capital expenditures	$ 809	$ 1,101

General

3 Months Ended

Mar. 31, 2019

Description of the Business

General

Exela Technologies, Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

(in thousands of United States dollars except share and per share amounts or unless otherwise noted)

(Unaudited)

1. General

These condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements as of and for the year ended December 31, 2018 included in the Exela Technologies, Inc. (the "Company," "Exela," "we," "our" or "us") annual report on Form 10-K for such period (the “2018 Form 10-K”).

The accompanying condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America ("GAAP") and with the instructions to Form 10-Q and Rule 10-01 of Securities and Exchange Commission ("SEC") Regulation S-X as they apply to interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These accounting principles require us to use estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from our estimates.

The condensed consolidated financial statements are unaudited, but in our opinion include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results for the interim period. The interim financial results are not necessarily indicative of results that may be expected for any other interim period or the fiscal year.

Net Loss per Share

Earnings per share ("EPS") is computed by dividing net loss available to holders of the Company's common stock, par value $0.0001 per share (“Common Stock”) by the weighted average number of shares of Common Stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to the potential dilution that could occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock, using the more dilutive of the two-class method or if-converted method in periods of earnings. The two-class method is an earnings allocation method that determines earnings per share for Common Stock and participating securities. As the Company experienced net losses for the periods presented, the impact of the Company’s Series A Convertible Preferred Stock (“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 months ended March 31, 2019 outstanding shares of the Series A Preferred Stock, if converted would have resulted in an additional 5,586,344 shares of Common Stock outstanding, but were not included in the computation of diluted loss per share as their effects were anti-dilutive.

The Company was originally incorporated July 12, 2017 as a special purpose acquisition company under the name Quinpario Acquisition Corp 2 (“Quinpario”). The Company has not included the effect of 35,000,000 warrants sold in the Quinpario Initial Public Offering (“IPO”) in the calculation of net income (loss) per share. Warrants are considered anti-dilutive and excluded when the exercise price exceeds the average market value of the Company’s Common Stock price during the applicable period.


	Three Months Ended March 31,
	2019		2018
Net loss attributable to common stockholders (A)	$	(30,821)	$	(24,908)
Weighted average common shares outstanding - basic and diluted (B)		150,142,955		152,140,117
Loss Per Share:
Basic and diluted (A/B)	$	(0.21)	$	(0.16)

New Accounting Pronouncements

3 Months Ended

Mar. 31, 2019

Recently Adopted Accounting Pronouncements

New Accounting Pronouncements

2. New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) no. 2016-02, Leases (ASC 842). This ASU increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The Company adopted this guidance effective January 1, 2019, under the modified retrospective transition method provided by ASU 2018-11 with the following practical expedients below:

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

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

The adoption had a material impact on the Company's unaudited consolidated balance sheets, but did not have a material impact on the Company's unaudited consolidated income statements and unaudited consolidated statements of cash flows. The most significant impact was the recognition of right-of-use assets and lease liabilities for operating leases, while the Company's accounting for finance leases remained substantially unchanged. See Note 4 for relevant disclosures.

Effective January 1, 2019 the Company adopted ASU no. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part I of this ASU addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this ASU addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity, because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests. The amendments in Part II of this update do not have an accounting effect. The adoption had no impact on the Company's financial position, results of operations, and cash flows for the quarter ended March 31, 2019.

Effective January 1, 2019 the Company adopted ASU no. 2017-12, Derivatives and Hedging (Topic 815); Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU better align the risk management activities and financial reporting for these hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The adoption had no impact on the Company's financial position, results of operations, and cash flows for the quarter ended March 31, 2019.

Effective January 1, 2019 the Company adopted ASU no. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU address a narrow-scope financial reporting issue related to the tax effects that may become “stranded” in accumulated other comprehensive income (“AOCI”) as a result of the Tax Cuts and Jobs Act (“TCJA”). An entity may elect to reclassify the income tax effects of the TCJA on items within AOCI to retained earnings. The adoption had no impact on the Company's financial position, results of operations, and cash flows for the quarter ended March 31, 2019.

Effective January 1, 2019 the Company adopted ASU no. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting to amend the accounting for share-based payment awards issued to nonemployees. Under the revised guidance, the accounting for awards issued to nonemployees will be similar to the model for employee awards, except the ASU allows an entity to elect on an award-by-award basis to use the contractual term as the expected term assumption in the option pricing model, and the cost of the grant is recognized in the same period(s) and in the same manner as if the grantor had paid cash. The adoption had no impact on the Company's financial position, results of operations, and cash flows for the quarter ended March 31, 2019.

Recently Issued Accounting Pronouncements

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

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

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

Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Significant Accounting Policies

Significant accounting policies

3. Significant Accounting Policies

The information presented below supplements the Significant Accounting Policies information presented in our 2018 Form 10-K, including Revenue Recognition for the adoption of ASC 606, which became effective January 1, 2018. See our 2018 Form 10-K for a description of our significant accounting policies in effect prior to the adoption of the new accounting standard.

Revenue Recognition

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

Nature of Services

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

Disaggregation of Revenues

The following tables disaggregate revenue from contracts by geographic region and by segment for the three months ended March 31, 2019 and March 31, 2018:


	Three Months Ended March 31,
	2019						2018
		ITPS		HS		LLPS		ITPS		HS		LLPS
United States	$	250,908	$	61,343	$	17,842	$	269,939	$	58,632	$	22,598
Europe		66,678		—		—		35,283		—		—
Other		6,994		—		—		6,715		—		—
Total	$	324,580	$	61,343	$	17,842	$	311,937	$	58,632	$	22,598

Contract Balances

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


	March 31,		December 31,
	2019		2018
Accounts receivable, net	$	278,064	$	270,812
Deferred revenues		20,322		16,940
Costs to obtain and fulfill a contract		21,964		18,624
Customer deposits		28,410		34,235

Accounts receivable, net includes $43.1 million and $39.5 million as of March 31, 2019 and December 31, 2018, respectively, representing amounts not billed to customers. We have accrued the unbilled receivables for work performed in accordance with the terms of contracts with customers.

Deferred revenues relate to payments received in advance of performance under a contract. A significant portion of this balance relates to maintenance contracts or other service contracts where we received payments for upfront conversions or implementation activities which do not transfer a service to the customer but rather are used in fulfilling the related performance obligations that transfer over time. The advance consideration received from customers is deferred over the contract term. We recognized revenue of $6.4 million during the three months ended March 31, 2019 that had been deferred as of December 31, 2018.

Costs incurred to obtain and fulfill contracts are deferred and expensed on a straight-line basis over the estimated benefit period. We recognized $2.2 million of amortization for these costs in the first three months of 2019 within depreciation and amortization expense. These costs represent incremental external costs or certain specific internal costs that are directly related to the contract acquisition or transition activities and can be separated into two principal categories: contract commissions and transition/set-up costs. Examples of such capitalized costs include hourly labor and related fringe benefits and travel costs. Applying the practical expedient in ASC 340-40-25-4, we recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in Selling, general and administrative expenses. The effect of applying this practical expedient was not material.

Customer deposits consist primarily of amounts received from customers in advance for postage. The majority of the amounts recorded as of December 31, 2018 were used to pay for postage with the corresponding postage revenue being recognized during the three months ended March 31, 2019.

Performance Obligations

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

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

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

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

Transaction Price Allocated to the Remaining Performance Obligations

In accordance with optional exemptions available under ASC 606, we did not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, and (2) contracts for which variable consideration relates entirely to an unsatisfied performance obligation, which comprise the majority of our contracts. We have certain non-cancellable contracts where we receive a fixed monthly fee in exchange for a series of distinct services that are substantially the same and have the same pattern of transfer over time, with the corresponding remaining performance obligations as of March 31, 2019 in each of the future periods below:


Estimated Remaining Fixed Consideration for Unsatisfied Performance Obligations

Remainder of 2019	$	29,108
2020		23,170
2021		14,412
2022		5,389
2023		1,785
2024 and thereafter		820
Total	$	74,684

Leases

3 Months Ended

Mar. 31, 2019

Leases

Leases

4. Leases

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


	Balance at		Impact of		Balance at
	December 31,		Lease Standard		January 1,
	2018				2019
Total assets	$	1,639,782	$	102,651	$	1,742,433
Total current liabilities		432,722		25,304		458,026
Total long-term liabilities		1,820,788		79,703		1,900,491

The increase in total assets and total liabilities at March 31, 2019 from December 31, 2018 was primarily due to the impact from the adoption of the new accounting standard pertaining to lease arrangements. See Note 2 for additional information on the impact of the adoption of this standard.

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

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

Operating lease and finance lease ROU assets and operating lease and finance lease liabilities are recorded on the consolidated balance sheet as follows:


	March 31,
	2019
Balance sheet location:
Operating Lease
Operating lease right-of-use asset, net	$	100,727
Current portion of operating lease obligations		27,368
Operating lease right-of-use liability, net of current portion		78,290
Finance Lease
Finance lease right-of-use asset, net (included in property, plant and equipment, net)		30,265
Current portion of finance lease obligations		15,961
Finance lease obligations, net of current portion		27,231

As of March 31, 2019, weighted-average remaining lease term of operating leases and finance leases was 4.83 years and 3.49 years, respectively. The weighted-average discount rate for operating leases and finance leases was 9.80% and 7.85%, respectively.

The interest on financing lease liabilities for the three months ended March 31, 2019 was $0.8 million. The amortization expense on finance lease right-of-use assets for the three months ended March 31, 2019 was $3.4 million.

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



	Finance		Operating
	Leases		Leases
Remainder of 2019	$	15,199	$	20,636
2020		12,876		25,099
2021		10,119		20,194
2022		4,529		15,763
2023		3,062		11,671
2024 and thereafter		4,064		21,253
Total lease payments		49,849		114,616
Less: Imputed interest		6,657		8,958
Present value of lease liabilities	$	43,192	$	105,658

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


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

Consolidated rental expense for all operating leases was $83.8 million for the year ended December 31, 2018. Consolidated rental expense for all operating leases was $15.1 million for the three months ended March 31, 2019.

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



		Three Months Ended
		March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		-
Operating cash flows from operating leases		9,374
Financing cash flows from finance leases		5,077
Right-of-use lease assets obtained in the exchange for lease liabilities:
Operating leases		2,904
Finance leases		4,097

Intangibles Assets and Goodwill

3 Months Ended

Mar. 31, 2019

Intangibles Assets and Goodwill

Intangibles Assets and Goodwill

5. Intangibles Assets and Goodwill

Intangible Assets

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


	March 31, 2019
	Gross Carrying				Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	507,944	$	(203,822)	$	304,122
Developed technology		89,053		(86,651)		2,402
Trade names (b)		9,400		(3,100)		6,300
Outsource contract costs		52,378		(30,414)		21,964
Internally developed software		39,000		(6,881)		32,119
Trademarks		23,378		(23,370)		8
Non compete agreements		1,350		(1,350)		—
Assembled workforce		4,473		(280)		4,193
Purchased software		26,749		(446)		26,303
Intangibles, net	$	753,725	$	(356,314)	$	397,411


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

(a)

Amounts include intangible assets acquired in business combinations.

(b)

The carrying amount of trade names for 2019 and 2018 is net of accumulated impairment losses of $43.1 million, of which $3.7 million was recognized in 2018.

Goodwill

Goodwill by reporting segment consists of the following:


										Currency
										Translation
	Goodwill			Additions			Reductions			Adjustments		Goodwill (a)
ITPS	$	566,215	$	5,580	(c)	$			$	(220)	$	571,575
HS		86,786										86,786
LLPS		94,324					(44,427)	(b)				49,897
Balance as of December 31, 2018	$	747,325	$	5,580		$	(44,427)		$	(220)	$	708,258
ITPS		571,575								27		571,602
HS		86,786										86,786
LLPS		49,897										49,897
Balance as of March 31, 2019	$	708,258	$	—		$	—		$	27	$	708,285

(a)

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

(b)

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

(c)

Addition to goodwill due to the acquisition of Asterion International Group (“Asterion” and, “Asterion Business Combination”) and immaterial acquisitions in the third and fourth quarters of 2018.

Long-Term Debt and Credit Facilities

3 Months Ended

Mar. 31, 2019

Long-Term Debt and Credit Facilities

Long-Term Debt and Credit Facilities

6. Long-Term Debt and Credit Facilities

Senior Secured Notes

On July 12, 2017, the Company issued $1.0 billion in aggregate principal amount of 10.0% First Priority Senior Secured Notes due 2023 with an original issue discount (“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.

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, a (i) $350.0 million senior secured term loan maturing July 12, 2023 with an OID of $7.0 million, and (ii) a $100.0 million senior secured revolving facility maturing July 12, 2022, $30.0 million of which is currently drawn. As of March 31, 2019 and December 31, 2018, the Company had outstanding irrevocable letters of credit totaling approximately $21.0 million and $20.6 million, respectively, under the senior secured revolving facility.

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

Term Loan Repricing

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

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

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

Incremental Term Loan

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

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

Other than as described above, the terms, conditions and covenants applicable to the Repricing Term Loans and the Incremental Term Loans are consistent with the terms, conditions and covenants that were applicable to the Existing Term Loans under the Credit Agreement. The Repricing and issuance of the Incremental Term Loans resulted in a partial debt extinguishment, for which Exela recognized $1.1 million in debt extinguishment costs in the third quarter of 2018. See Note 15, Subsequent Events, for information on an additional incremental term loan under the Credit Agreement that occurred after March 31, 2019.

Long-Term Debt Outstanding

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


	March 31,		December 31,
	2019		2018
Other (a)		28,334		25,321
First lien credit agreement (b)		335,104		335,896
Senior secured notes (c)		975,535		974,443
Revolver		30,000		—
Total debt		1,368,973		1,335,660
Less: Current portion of long-term debt		(32,821)		(29,237)
Long-term debt, net of current maturities	$	1,336,152	$	1,306,423

(a)

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.

(b)

Net of unamortized original issue discount and debt issuance costs of $7.9 million and $23.3 million as of March 31, 2019 and $8.3 million and $24.5 million as of December 31, 2018.

(c)

Net of unamortized debt discount and debt issuance costs of $17.5 million and $7.0 million as of March 31, 2019 and $18.2 million and $7.3 million as of December 31, 2018.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2019
Income Taxes
Income Taxes	7. Income Taxes The Company applies an estimated annual effective tax rate (“ETR”) approach for calculating a tax provision for interim periods, as required under GAAP. The Company recorded an income tax expense of $4.7 million and $4.0 million for the three months ended March 31, 2019 and 2018, respectively. The Company's ETR of (18.7%) for the three months ended March 31, 2019 differed from the expected U.S. statutory tax rate of 21.0% and was primarily impacted by permanent tax adjustments, state and local current expense, foreign operations, and valuation allowances, including valuation allowances on a portion of the Company’s deferred tax assets on U.S. disallowed interest expense carryforward’s created by the provisions of the TCJA. For the three months ended March 31, 2018, the Company’s ETR of (20.2%) differed from the expected U.S. statutory tax rate of 21.0%, and was primarily impacted by permanent tax adjustments, state and local current expense, foreign operations, and valuation allowances, including valuation allowances on a portion of the Company’s U.S. disallowed interest expense carryforward’s created by the provisions of the TCJA. As of March 31, 2019, 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, 2018. The Company's valuation allowances have increased by approximately $6.3 million from December 31, 2018 to March 31, 2019 due largely to effects of TCJA relating to interest expense.

Employee Benefit Plans

3 Months Ended

Mar. 31, 2019

Employee Benefit Plans

Employee Benefit Plans

8. Employee Benefit Plans

German Pension Plan

The Company’s subsidiary in Germany provides pension benefits to certain 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. The German pension plan is an unfunded plan and therefore has no plan assets.

U.K. Pension Plan

The Company’s subsidiary in the United Kingdom provides pension benefits to certain 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.

Norway Pension Plan

The Company’s subsidiary in Norway provides pension benefits to eligible retirees and eligible dependents. Employees eligible for participation include all employees who were more than three years from retirement prior to March 2018. The Company accrues the cost of these benefits over the service lives of the covered employees based on an actuarial calculation. The Company uses a December 31 measurement date for this plan.

Asterion Pension Plan

The Company acquired certain pension benefit obligations to eligible retirees and eligible dependents in 2018 pursuant to the Asterion Business Combination. Employees eligible for participation included all full-time regular employees who were more than three years from retirement prior to July 2003. A retirement pension or a lump-sum payment may be paid dependent upon length of service at the mandatory retirement age. The Company accrues the cost of these benefits over the service lives of the covered employees based on an actuarial calculation. As there are no active employees for this plan there are no earned pension entitlements and actuarial assumptions are only measured when assumptions are changed.

Tax Effect on Accumulated Other Comprehensive Loss

As of March 31, 2019 and December 31, 2018 the Company recorded actuarial losses of $9.5 million and $9.3 million in accumulated other comprehensive loss on the condensed consolidated balance sheets, respectively, which is net of a deferred tax benefit of $2.1 million.

Pension Expense

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


	Three Months Ended March 31,
	2019		2018
Service cost	$	23	$	2
Interest cost		605		586
Expected return on plan assets		(626)		(719)
Amortization:
Amortization of prior service cost		26		(36)
Amortization of net (gain) loss		415		463
Net periodic benefit cost	$	443	$	296

Upon adopting ASU no. 2017-07 as described in Note 2, the Company now records pension interest cost within Interest expense, net. Expected return on plan assets, amortization of prior service costs, and amortization of net losses are recorded within Other income, net. Service cost is recorded within Cost of revenue.

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 $0.8 million and $0.6 million to its pension plans during the three months ended March 31, 2019 and 2018, respectively. The Company has funded the pension plans with the required contributions for 2019 based on current plan provisions.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies Appraisal Demand On September 21, 2017, former stockholders of SourceHOV Holdings, Inc. (“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 acquisition of SourceHOV and Novitex Holdings, Inc, by Quinpario in July 2017 (“Novitex Business Combination”), which gave rise to appraisal rights pursuant to 8 Del. C. § 262. In the Appraisal Action, the petitioners seek, among other things, a determination of the fair value of their SourceHOV shares at the time of the Novitex Business Combination; an order that SourceHOV pay that value to the petitioners, together with interest at the statutory rate; and an award of costs, attorneys' fees, and other expenses. On October 12, 2017, SourceHOV filed its answer to the petition and a verified list pursuant to 8 Del. C. § 262(f). Trial is currently scheduled for June 2019. The parties and their experts have offered competing valuations of the SourceHOV shares as of the date of the Novitex Business Combination. The Court may determine a fair value that is above or below the values indicated by the parties and their experts. At this stage of the litigation, the Company is unable to predict the outcome of the Appraisal Action or estimate what the Court will determine the fair value of SourceHOV common stock to be as of the date of the Novitex Business Combination. Pursuant to the terms of the Novitex Business Combination Agreement, if such appraisal rights are perfected, a corresponding portion of shares of our Common Stock issued to Ex-Sigma 2 LLC, our principal stockholder, will be forfeited at such time as the PIPE Financing (as defined in the Consent, Waiver and Amendment dated June 15, 2017) is repaid. The Company intends to vigorously defend against the Appraisal Action.

Fair Value Measurement

3 Months Ended

Mar. 31, 2019

Fair Value Measurement

Fair Value Measurement

10. Fair Value Measurement

Assets and Liabilities Measured at Fair Value

The carrying amount of assets and liabilities including cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of March 31, 2019 and December 31, 2018 due to the relative short maturity of these instruments. Management estimates the fair values of the secured term loan and secured notes at approximately 99.6% and 101.8% respectively, of the respective principal balance outstanding as of March 31, 2019. The carrying value approximates the fair value for the long-term debt. Other debt represents the Company's outstanding loan balances associated with various hardware and software purchases along with loans entered into by subsidiaries of the Company and as such, the cost incurred would approximate fair value. Property and equipment, intangible assets, capital lease obligations, and goodwill are not required to be re-measured to fair value on a recurring basis. These assets are evaluated for impairment if certain triggering events occur. If such evaluation indicates that impairment exists, the respective asset is written down to its fair value.

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

The following table provides the carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2019 and December 31, 2018:


	Carrying		Fair		Fair Value Measurements
As of March 31, 2019	Amount		Value		Level 1		Level 2		Level 3
Recurring and nonrecurring assets and liabilities:
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Long-term debt		1,336,152		1,377,941		—		1,377,941		—
Interest rate swap		2,160		2,160		—		2,160		—
Goodwill		708,285		708,285		—		—		708,285


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

The significant unobservable inputs used in the fair value of the Company’s acquisition contingent liability 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:


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

3 Months Ended

Mar. 31, 2019

Stock-Based Compensation

Stock-Based Compensation

11. Stock-Based Compensation

At closing of the Novitex Business Combination, SourceHOV had 24,535 restricted stock units (“RSUs”) outstanding under its 2013 Long Term Incentive Plan ("2013 Plan"). Simultaneous with the closing of the Novitex Business Combination, the 2013 Plan, as well as all vested and unvested RSUs under the 2013 Plan, were assumed by Ex-Sigma, LLC (“ExSigma”), an entity formed by the former SourceHOV equity holders, which is also the Company's principal stockholder. In accordance with GAAP, the Company continues to incur compensation expense related to the 9,880 unvested RSUs as of July 12, 2017 on a straight-line basis until fully vested, as the recipients of the RSUs are employees of the Company. Subject to continuous employment and other terms of the 2013 Plan, all remaining unvested RSUs with an initial vesting period of three or four years will vest in April 2019. As of March 31, 2019 there are 2,675 nonvested shares related to the 2013 Plan with a weighted average remaining contractual life of .08 years and a weighted average aggregate intrinsic value per share of $1,633.

Exela 2018 Stock Incentive Plan

On January 17, 2018, Exela’s 2018 Stock Incentive Plan (the “2018 Plan”) became effective. The 2018 Plan provides for the grant of incentive and nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights, performance awards, and other stock-based compensation to eligible participants. Under the 2018 Plan, stock options are granted at a price per share not less than 100% of the fair market value per share of the underlying stock at the grant date. The vesting period for each option award is established on the grant date, and the options generally expire 10 years from the grant date. The Company is authorized to issue up to 8,323,764 shares of Common Stock under the 2018 Plan.

Restricted Stock Unit Grants

Restricted stock awards generally vest ratably over a one to two year period. Shares of restricted stock granted under the 2018 Plan are considered issued and outstanding at the date of grant and have the same voting rights as other outstanding common stock. Restricted stock units are subject to forfeiture if employment terminates prior to vesting and are expensed ratably over the vesting period. No awards were issued under the 2018 Plan as of March 31, 2018.

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


				Average
		Weighted		Remaining
	Number	Average Grant		Contractual Life	Aggregate
	of Shares	Date Fair Value		(Years)	Intrinsic Value ($)
Balance as of December 31, 2018	893,297		5.86	0.76		5,239
Shares granted	—			—		—
Shares forfeited	(48,000)		—	—		—
Shares vested	—		—	—		—
Balance as of March 31, 2019	845,297	$	6.12	0.55	$	4,952

Options

Options are granted at not less than fair market value on the date of grant and expire no later than ten years after the date of grant. Options granted under the 2018 Plan generally require no less than a two or four year ratable vesting period. There was no stock option activity for the three months ended March 31, 2018. Stock option activity in the first three months of 2019 is summarized in the following table:


		Weighted		Average Remaining
		Average		Vesting Period	Aggregate
	Outstanding	Exercise Price		(Years)	Intrinsic Value ($)
Balance as of December 31, 2018	3,570,300	$	6.06	2.92		9,590
Granted	—		—	—		—
Exercised	—		—	—		—
Forfeited	(192,000)		—	—		—
Expired	—		—	—		—
Balance as of March 31, 2019	3,378,300	$	6.07	2.71	$	9,074

As of March 31, 2019, there was approximately $10.3 million of total unrecognized compensation expense related to non-vested awards for the 2013 Plan and 2018 Plan, which will be recognized over the respective service period.

Stock-based compensation expense is recorded within Selling, general, and administrative expenses. The Company incurred total compensation expense of $1.0 million and $1.8 related to the 2013 Plan and 2018 Plan awards, respectively, for the three months ended March 31, 2019.

Stockholders’ Equity	3 Months Ended
Stockholders’ Equity	Mar. 31, 2019
Stockholders’ Equity
Stockholders’ Equity	12. 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. Except as otherwise required by law or as otherwise provided in any certificate of designation for any series of preferred stock, the holders of 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 Common Stock are entitled to one vote per share on matters to be voted on by stockholders. Holders of Common Stock will be entitled to receive such dividends and other distributions, if any, as may be declared from time to time by the board of directors in its discretion out of funds legally available therefor and shall share equally on a per share basis in such dividends and distributions. The holders of the Common Stock have no conversion, preemptive or other subscription rights and there are no sinking fund or redemption provisions applicable to the Common Stock. In January 2018, 1,625,000 shares of Series A Preferred Stock were converted into 1,987,767 shares of Common Stock. As of March 31, 2019 and December 31, 2018, there were 152,692,140 shares of Common Stock issued and 150,142,955 shares outstanding. Preferred Stock The Company is authorized to issue 20,000,000 shares of preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the Board of Directors. At March 31, 2019 and December 31, 2018, the Company had 4,569,233 shares of Series A Preferred Stock outstanding. The par value of 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 Common Stock. Holders of the Series A Preferred Stock will be entitled to receive cumulative dividends at a rate per annum of 10% of the Liquidation Preference per share of Series A Preferred Stock, paid or accrued quarterly in arrears. From the issue date until the third anniversary of the issue date, the amount of all accrued but unpaid dividends on the Series A Preferred Stock will be added to the Liquidation Preference without any action by the Company’s board of directors. For the three months ended March 31, 2019 and 2018 this amount was $0.9 million as reflected on the Consolidated Statement of Operations. The cumulative accrued but unpaid dividends of the Series A Preferred Stock since their inception on July 12, 2017 is $7.1 million. The per share average of cumulative preferred dividends for the three months ended March 31, 2019 and 2018 is 0.2 dollars. Following the third anniversary of the issue date, dividends on the Series A Preferred Stock will be accrued by adding to the Liquidation Preference or paid in cash, or a combination thereof. In addition, holders of the Series A Preferred Stock will participate in any dividend or distribution of cash or other property paid in respect of the Common Stock pro rata with the holders of the Common Stock (other than certain dividends or distributions that trigger an adjustment to the conversion rate, as described in the Certificate of Designations), as if all shares of Series A Preferred Stock had been converted into Common Stock immediately prior to the date on which such holders of the Common Stock became entitled to such dividend or distribution. Treasury Stock On November 8, 2017, the Company's board of directors authorized a share buyback program (the "Share Buyback Program"), pursuant to which the Company may, from time to time, purchase up to 5,000,000 shares of its Common Stock. Share repurchases may be executed through various means, including, without limitation, open market transactions, privately negotiated transactions or otherwise. The decision as to whether to purchase any shares and the timing of purchases, if any, will be based on the price of the Company's Common Stock, general business and market conditions and other investment considerations and factors. The Share Buyback Program does not obligate the Company to purchase any shares and expires in 24 months. The Share Buyback Program may be terminated or amended by the Company's board of directors in its discretion at any time. No shares were repurchased during the three months ended March 31, 2019 and 2018. As of March 31, 2019, 2,549,185 shares had been repurchased under the Share Buyback Program and are held in treasury stock. The Company records treasury stock using the cost method. Warrants At March 31, 2019 there were 34,988,302 warrants outstanding. As part of its IPO, Quinpario had issued 35,000,000 units including one share of common stock and one warrant of which 34,988,302 have been separated from the original unit and 11,698 warrants remain an unseparated part of the originally issued units. The warrants are traded on the OTC Bulletin Board as of March 31, 2019. Each warrant entitles the holder to purchase one-half of one share of Common Stock at a price of $5.75 per half share ($11.50 per whole share). Warrants may be exercised only for a whole number of shares of Common Stock. No fractional shares will be issued upon exercise of the warrants. Each warrant is currently exercisable and will expire July 12, 2022 (five years after the completion of the Novitex Business Combination), or earlier upon redemption. The Company may call the warrants for redemption at a price of $0.01 per warrant upon a minimum of 30 days’ prior written notice of redemption, if, and only if, the last sales price of 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.

Related-Party Transactions

3 Months Ended

Mar. 31, 2019

Related-Party Transactions

Related-Party Transactions

13. Related-Party Transactions

Leasing Transactions

Certain operating companies lease their operating facilities from HOV RE, LLC and HOV Services Limited, which are affiliates through common interest held by Ex-Sigma 2 LLC, our largest stockholder. The rental expense for these operating leases was $0.1 million and $0.2 million for the three months ended March 31, 2019 and 2018, respectively.

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 $0.1 million for the three months ended March 31, 2019 and 2018.

The Company received consulting services from Shadow Pond, LLC. Shadow Pond, LLC is wholly owned and controlled by Vik Negi, our Executive Vice President Treasury and Business Affairs. The consulting arrangement was established to compensate Mr. Negi for his services to the Company prior to becoming an employee. The expense recognized for these services was $0.1 million for the three months ended March 31, 2018. This consulting arrangement with Shadow Pond, LLC terminated on April 1, 2018 and Mr. Negi continues to provide services as an employee of the Company. As such, there were no additional expenses for the three months ended March 31, 2019.

Relationship with HandsOn Global Management

Pursuant to a master agreement dated January 1, 2015 between Rule 14, LLC and SourceHOV, the Company incurs marketing fees to Rule 14, LLC, a portfolio company of HOVS LLC and HandsOn Fund 4 I, LLC (“HGM”). Similarly, SourceHOV is party to ten master agreements with entities affiliated with HGM's managed funds, each of which were entered into during 2015 and 2016. Each master agreement provides SourceHOV with free use of technology and includes a reseller arrangement pursuant to which SourceHOV is entitled to sell these services to third parties. Any revenue earned by SourceHOV in such third-party sale is shared 75%/25% with each of HGM's venture affiliates in favor of SourceHOV. The brands Zuma, Athena, Peri, BancMate, Spring, Jet, Teletype, CourtQ and Rewardio are part of the HGM managed funds. SourceHOV has the license to use and resell such brands, as described therein. We incurred fees relating to these agreements of less than $0.1 million and $0.2 million for the three months ended March 31, 2019 and 2018, respectively.

Relationship with HOV Services, Ltd.

HOV Services, Ltd. provides the Company data capture and technology services. HOV Services, Ltd is an indirect equity holder of Ex-Sigma LLC. The expense recognized for these services was $0.4 million and $0.4 million for the three months ended March 31, 2019 and 2018, respectively. These expenses are 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 Global Management, LLC (“Apollo”) affiliated companies. Funds managed by Apollo have the right to designate two of the Company’s directors. On November 18, 2014, the Company's subsidiary, Exela Enterprises Solutions, Inc. (“Solutions”), entered into a master services agreement with Management Holdings, an indirect wholly owned subsidiary of Apollo. Pursuant to this master services agreement, Solutions provides Management Holdings printer supplies and maintenance services, including toner maintenance, training, quarterly business review and printer procurement. We recognized revenue of $0.1 million and $0.1 million in our consolidated statements of operations from Apollo affiliated companies under this agreement for the three months ended March 31, 2019 and 2018, respectively.

On January 18, 2017, Solutions entered into a master purchase and professional services agreement with Caesars Enterprise Services, LLC ("Caesars"). Caesars is controlled by investment funds affiliated with Apollo. Pursuant to this master purchase and professional services agreement, Solutions provides managed print services to Caesars, including general equipment operation, supply management, support services and technical support. We recognized revenue of approximately $1.1 million and $1.0 million in our consolidated statements of operations from Caesars under this master purchase and professional services agreement for the three months ended March 31, 2019 and 2018, respectively.

On May 5, 2017, Solutions entered into a master services agreement with ADT LLC. ADT LLC is controlled by investment funds affiliated with Apollo. Pursuant to this master services agreement, Solutions provides ADT LLC with mailroom and onsite mail delivery services at an ADT LLC office location and managed print services, including supply management, equipment maintenance and technical support services. We recognized revenue of $0.3 million and $0.1 million in our consolidated statements of operations from ADT LLC under this master services agreement for the three months ended March 31, 2019 and 2018, respectively.

On July 20, 2017, Solutions entered into a master services agreement with Diamond Resorts Centralized Services Company. Diamond Resorts Centralized Services Company is controlled by investment funds affiliated with Apollo. Pursuant to this master services agreement, Solutions provides commercial print and promotional product procurement services to Diamond Resorts Centralized Services Company, including sourcing, inventory management and fulfillment services. The Company recognized revenue of $1.7 million and $2.4 million for the three months ended March 31, 2019 and 2018, respectively, and cost of revenue of $0.1 million and $0.1 million for the three months ended March 31, 2019 and 2018 respectively, from Diamond Resorts Centralized Services Company under this master services agreement.

In April 2016, Solutions entered into a master services agreement with Presidio Networked Solutions Group, LLC ("Presidio Group"), a wholly owned subsidiary of Presidio, Inc., a portion of which is owned by affiliates of Apollo and with a common Apollo designated director. Pursuant to this master services agreement, Presidio Group provides Solutions with employees, subcontractors, and/or goods and services. For the three months ended March 31, 2019 and 2018 there were related party expenses of $0.2 million and $0.1 million, respectively, for this service.

Payable Balances with Affiliates

Payable balances with affiliates as of March 31, 2019 and December 31, 2018 are as follows:


	March 31,		December 31,
	2019		2018
	Payable		Payable
HOV Services, Ltd	$	367	$	405
Rule 14		110		127
HGM		5,450		6,998
Apollo affiliated company		241		205
Oakana		16		—
	$	6,184	$	7,735

Segment Information

3 Months Ended

Mar. 31, 2019

Segment Information

Segment Information

14. Segment and Geographic Area Information

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

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

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

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

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


	Three months ended March 31, 2019
	ITPS	HS	LLPS	Total
Revenue	324,580	61,343	17,842		403,765
Cost of revenue	257,388	38,506	10,988		306,882
Selling, general and administrative expenses					49,949
Depreciation and amortization					28,020
Related party expense					994
Interest expense, net					38,899
Sundry expense (income), net					2,531
Other income, net					1,677
Net loss before income taxes				$	(25,187)


	Three months ended March 31, 2018
	ITPS	HS	LLPS	Total
Revenue	311,937	58,632	22,598		393,167
Cost of revenue	245,173	34,956	13,663		293,792
Selling, general and administrative expenses					45,595
Depreciation and amortization					38,019
Related party expense					1,105
Interest expense, net					38,017
Sundry expense, net					(64)
Other income, net					(3,328)
Net loss before income taxes				$	(19,969)

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2019
Subsequent Events.
Subsequent Events	15. Subsequent Events 2019 Incremental Term Loan On April 16, 2019, the Company successfully borrowed an additional $30.0 million pursuant to incremental term loans (the “2019 Incremental Term Loans”) under the Second Amendment to First Lien Credit Agreement (the “Second Amendment”). The proceeds of the 2019 Incremental Term Loans were used to replace the cash spent for acquisitions, pay related fees, expenses and related borrowings and may also be used for general corporate purposes. The 2019 Incremental Term Loans will bear interest at a rate per annum that is the same as the Company’s existing senior secured term loans consisting of, at the Company’s option, either (a) a LIBOR rate determined by reference to the costs of funds for Eurodollar deposits for the interest period relevant to such borrowing, adjusted for certain additional costs, subject to a 1.00% floor, or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the one-month adjusted LIBOR plus 1.00%, in each case plus an applicable margin of 6.50% for LIBOR loans and 5.50% for base rate loans. The 2019 Incremental Term Loans will mature on July 12, 2023, the same maturity date as the Repricing Term Loans and the Incremental Term Loans. The Company may voluntarily repay the 2019 Incremental Term Loans at any time, without prepayment premium or penalty, subject to customary “breakage” costs with respect to LIBOR rate loans. Other than as described above, the terms, conditions and covenants applicable to the 2019 Incremental Term Loans are consistent with the terms, conditions and covenants that were applicable to the Repricing Term Loans and Incremental Term Loans under the Credit Agreement and which are described in the registrant’s Current Reports on Form 8-K filed with the Securities and Exchange Commission on July 18, 2017 and July 17, 2018.

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Significant Accounting Policies

Revenue Recognition

Nature of Services

Disaggregation of Revenues

The following tables disaggregate revenue from contracts by geographic region and by segment for the three months ended March 31, 2019 and March 31, 2018:


	Three Months Ended March 31,
	2019						2018
		ITPS		HS		LLPS		ITPS		HS		LLPS
United States	$	250,908	$	61,343	$	17,842	$	269,939	$	58,632	$	22,598
Europe		66,678		—		—		35,283		—		—
Other		6,994		—		—		6,715		—		—
Total	$	324,580	$	61,343	$	17,842	$	311,937	$	58,632	$	22,598

Contract Balances

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


	March 31,		December 31,
	2019		2018
Accounts receivable, net	$	278,064	$	270,812
Deferred revenues		20,322		16,940
Costs to obtain and fulfill a contract		21,964		18,624
Customer deposits		28,410		34,235

Performance Obligations

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

Transaction Price Allocated to the Remaining Performance Obligations


Estimated Remaining Fixed Consideration for Unsatisfied Performance Obligations

Remainder of 2019	$	29,108
2020		23,170
2021		14,412
2022		5,389
2023		1,785
2024 and thereafter		820
Total	$	74,684

General (Tables)

3 Months Ended

Mar. 31, 2019

Description of the Business

Schedule of components of basic and diluted EPS


	Three Months Ended March 31,
	2019		2018
Net loss attributable to common stockholders (A)	$	(30,821)	$	(24,908)
Weighted average common shares outstanding - basic and diluted (B)		150,142,955		152,140,117
Loss Per Share:
Basic and diluted (A/B)	$	(0.21)	$	(0.16)

Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Significant Accounting Policies

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


	Three Months Ended March 31,
	2019						2018
		ITPS		HS		LLPS		ITPS		HS		LLPS
United States	$	250,908	$	61,343	$	17,842	$	269,939	$	58,632	$	22,598
Europe		66,678		—		—		35,283		—		—
Other		6,994		—		—		6,715		—		—
Total	$	324,580	$	61,343	$	17,842	$	311,937	$	58,632	$	22,598

Schedule of contract balances


	March 31,		December 31,
	2019		2018
Accounts receivable, net	$	278,064	$	270,812
Deferred revenues		20,322		16,940
Costs to obtain and fulfill a contract		21,964		18,624
Customer deposits		28,410		34,235

Schedule of estimated remaining fixed consideration for unsatisfied performance obligations


Estimated Remaining Fixed Consideration for Unsatisfied Performance Obligations

Remainder of 2019	$	29,108
2020		23,170
2021		14,412
2022		5,389
2023		1,785
2024 and thereafter		820
Total	$	74,684

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Lessee, Lease, Description [Line Items]

Schedule of balance sheet location


	March 31,
	2019
Balance sheet location:
Operating Lease
Operating lease right-of-use asset, net	$	100,727
Current portion of operating lease obligations		27,368
Operating lease right-of-use liability, net of current portion		78,290
Finance Lease
Finance lease right-of-use asset, net (included in property, plant and equipment, net)		30,265
Current portion of finance lease obligations		15,961
Finance lease obligations, net of current portion		27,231

Schedule of maturities of operating lease liabilities



	Finance		Operating
	Leases		Leases
Remainder of 2019	$	15,199	$	20,636
2020		12,876		25,099
2021		10,119		20,194
2022		4,529		15,763
2023		3,062		11,671
2024 and thereafter		4,064		21,253
Total lease payments		49,849		114,616
Less: Imputed interest		6,657		8,958
Present value of lease liabilities	$	43,192	$	105,658

Schedule of future minimum payments due under non‐cancelable leases


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

Schedule of cash paid and lease recognition



		Three Months Ended
		March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		-
Operating cash flows from operating leases		9,374
Financing cash flows from finance leases		5,077
Right-of-use lease assets obtained in the exchange for lease liabilities:
Operating leases		2,904
Finance leases		4,097

ASU 2016-02

Lessee, Lease, Description [Line Items]

Schedule of new accounting standard adoption


	Balance at		Impact of		Balance at
	December 31,		Lease Standard		January 1,
	2018				2019
Total assets	$	1,639,782	$	102,651	$	1,742,433
Total current liabilities		432,722		25,304		458,026
Total long-term liabilities		1,820,788		79,703		1,900,491

Intangibles Assets and Goodwill (Tables)

3 Months Ended

Mar. 31, 2019

Intangibles Assets and Goodwill

Schedule of intangible assets


	March 31, 2019
	Gross Carrying				Intangible
	Amount (a)		Amortization		Asset, net
Customer relationships	$	507,944	$	(203,822)	$	304,122
Developed technology		89,053		(86,651)		2,402
Trade names (b)		9,400		(3,100)		6,300
Outsource contract costs		52,378		(30,414)		21,964
Internally developed software		39,000		(6,881)		32,119
Trademarks		23,378		(23,370)		8
Non compete agreements		1,350		(1,350)		—
Assembled workforce		4,473		(280)		4,193
Purchased software		26,749		(446)		26,303
Intangibles, net	$	753,725	$	(356,314)	$	397,411


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

(a)

Amounts include intangible assets acquired in business combinations.

(b)

The carrying amount of trade names for 2019 and 2018 is net of accumulated impairment losses of $43.1 million, of which $3.7 million was recognized in 2018.

Schedule of goodwill by reporting segment


										Currency
										Translation
	Goodwill			Additions			Reductions			Adjustments		Goodwill (a)
ITPS	$	566,215	$	5,580	(c)	$			$	(220)	$	571,575
HS		86,786										86,786
LLPS		94,324					(44,427)	(b)				49,897
Balance as of December 31, 2018	$	747,325	$	5,580		$	(44,427)		$	(220)	$	708,258
ITPS		571,575								27		571,602
HS		86,786										86,786
LLPS		49,897										49,897
Balance as of March 31, 2019	$	708,258	$	—		$	—		$	27	$	708,285

(a)

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

(b)

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

(c)

Long-Term Debt and Credit Facilities (Tables)

3 Months Ended

Mar. 31, 2019

Long-Term Debt and Credit Facilities

Schedule of outstanding long-term debt instruments


	March 31,		December 31,
	2019		2018
Other (a)		28,334		25,321
First lien credit agreement (b)		335,104		335,896
Senior secured notes (c)		975,535		974,443
Revolver		30,000		—
Total debt		1,368,973		1,335,660
Less: Current portion of long-term debt		(32,821)		(29,237)
Long-term debt, net of current maturities	$	1,336,152	$	1,306,423

(a)

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.

(b)

Net of unamortized original issue discount and debt issuance costs of $7.9 million and $23.3 million as of March 31, 2019 and $8.3 million and $24.5 million as of December 31, 2018.

(c)

Net of unamortized debt discount and debt issuance costs of $17.5 million and $7.0 million as of March 31, 2019 and $18.2 million and $7.3 million as of December 31, 2018.

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

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

+ Details

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2019

Employee Benefit Plans

Schedule of components of the net periodic benefit cost


	Three Months Ended March 31,
	2019		2018
Service cost	$	23	$	2
Interest cost		605		586
Expected return on plan assets		(626)		(719)
Amortization:
Amortization of prior service cost		26		(36)
Amortization of net (gain) loss		415		463
Net periodic benefit cost	$	443	$	296

Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Measurement

Schedule of fair value of financial instruments


	Carrying		Fair		Fair Value Measurements
As of March 31, 2019	Amount		Value		Level 1		Level 2		Level 3
Recurring and nonrecurring assets and liabilities:
Acquisition contingent liability	$	721	$	721	$	—	$	—	$	721
Long-term debt		1,336,152		1,377,941		—		1,377,941		—
Interest rate swap		2,160		2,160		—		2,160		—
Goodwill		708,285		708,285		—		—		708,285


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

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


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

- Definition

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

+ References + Details

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Stock-Based Compensation

Summary of the status of restricted stock units


				Average
		Weighted		Remaining
	Number	Average Grant		Contractual Life	Aggregate
	of Shares	Date Fair Value		(Years)	Intrinsic Value ($)
Balance as of December 31, 2018	893,297		5.86	0.76		5,239
Shares granted	—			—		—
Shares forfeited	(48,000)		—	—		—
Shares vested	—		—	—		—
Balance as of March 31, 2019	845,297	$	6.12	0.55	$	4,952

Schedule of stock option activity


		Weighted		Average Remaining
		Average		Vesting Period	Aggregate
	Outstanding	Exercise Price		(Years)	Intrinsic Value ($)
Balance as of December 31, 2018	3,570,300	$	6.06	2.92		9,590
Granted	—		—	—		—
Exercised	—		—	—		—
Forfeited	(192,000)		—	—		—
Expired	—		—	—		—
Balance as of March 31, 2019	3,378,300	$	6.07	2.71	$	9,074

Related-Party Transactions (Tables)

3 Months Ended

Mar. 31, 2019

Related-Party Transactions

Schedule of payable balances with affiliates


	March 31,		December 31,
	2019		2018
	Payable		Payable
HOV Services, Ltd	$	367	$	405
Rule 14		110		127
HGM		5,450		6,998
Apollo affiliated company		241		205
Oakana		16		—
	$	6,184	$	7,735

Segment Information (Tables)

3 Months Ended

Mar. 31, 2019

Segment Information

Schedule of revenue by segment information


	Three months ended March 31, 2019
	ITPS	HS	LLPS	Total
Revenue	324,580	61,343	17,842		403,765
Cost of revenue	257,388	38,506	10,988		306,882
Selling, general and administrative expenses					49,949
Depreciation and amortization					28,020
Related party expense					994
Interest expense, net					38,899
Sundry expense (income), net					2,531
Other income, net					1,677
Net loss before income taxes				$	(25,187)


	Three months ended March 31, 2018
	ITPS	HS	LLPS	Total
Revenue	311,937	58,632	22,598		393,167
Cost of revenue	245,173	34,956	13,663		293,792
Selling, general and administrative expenses					45,595
Depreciation and amortization					38,019
Related party expense					1,105
Interest expense, net					38,017
Sundry expense, net					(64)
Other income, net					(3,328)
Net loss before income taxes				$	(19,969)

General - Net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Jul. 12, 2017	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Net loss per share
Common stock, par value (in dollars per share)		$ 0.0001		$ 0.0001
Net loss attributable to common stockholders		$ (30,821)	$ (24,908)
Weighted average common shares outstanding - basic and diluted		150,142,955	152,140,117
Loss per share - Basic and diluted		$ (0.21)	$ (0.16)
Series A Preferred Stock
Net loss per share
Number of anti-dilutive shares excluded from computation of diluted loss per share		5,586,344
Warrants
Net loss per share
Number of anti-dilutive shares excluded from computation of diluted loss per share	35,000,000

New Accounting Pronouncements - Recently Adopted Accounting Pronouncements (Details)	Jan. 01, 2019
ASU 2016-02
Recently Adopted Accounting Pronouncements
Lease, Practical Expedients, Package [true false]	true

Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenues
Revenue	$ 403,765	$ 393,167
ITPS
Disaggregation of Revenues
Revenue	324,580	311,937
ITPS \| United States
Disaggregation of Revenues
Revenue	250,908	269,939
ITPS \| Europe
Disaggregation of Revenues
Revenue	66,678	35,283
ITPS \| Other
Disaggregation of Revenues
Revenue	6,994	6,715
HS
Disaggregation of Revenues
Revenue	61,343	58,632
HS \| United States
Disaggregation of Revenues
Revenue	61,343	58,632
LLPS
Disaggregation of Revenues
Revenue	17,842	22,598
LLPS \| United States
Disaggregation of Revenues
Revenue	$ 17,842	$ 22,598

Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Significant Accounting Policies
Accounts receivable, net	$ 278,064	$ 270,812
Deferred revenues	20,322	16,940
Costs to obtain and fulfill a contract	21,964	18,624
Customer deposits	28,410	34,235
Unbilled receivables, net	43,100	$ 39,500
Revenue recognized from deferred revenue	6,400
Amortization of contract costs	$ 2,200
Practical expedient on incremental costs of obtaining contracts	true

Significant Accounting Policies - Performance Obligations (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Significant Accounting Policies
Contracts with an original expected length	true
Remainder of 2019	$ 29,108
2020	23,170
2021	14,412
2022	5,389
2023	1,785
2024 and thereafter	820
Total	$ 74,684

Leases - Restated (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Total assets	$ 1,702,889	$ 1,742,433	$ 1,639,782
Total current liabilities	417,622	458,026	432,722
Total long-term liabilities	$ 1,907,153	1,900,491	$ 1,820,788
ASU 2016-02 \| Adjustment
Lessee, Lease, Description [Line Items]
Total assets		102,651
Total current liabilities		25,304
Total long-term liabilities		$ 79,703

Leases - Option to Extend or Terminate (Details)	3 Months Ended
Leases - Option to Extend or Terminate (Details)	Mar. 31, 2019
Leases
Options to extend - operating lease	true
Options to extend - finance lease	true
Options to terminate - operating lease	true
Options to terminate - finance lease	true

Leases - Balance Sheet Location (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Leases
Operating lease right-of-use asset, net	$ 100,727
Current portion of operating lease obligations	27,368
Operating lease right-of-use liability, net of current portion	78,290
Finance Lease
Finance lease right-of-use asset, net	$ 30,265
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us_gaap:PropertyPlantAndEquipment
Current portion of finance lease obligations	$ 15,961	$ 17,498
Finance lease obligations, net of current portion	$ 27,231	$ 26,738

Leases - Other Information (Details) $ in Millions	3 Months Ended
Leases - Other Information (Details) $ in Millions	Mar. 31, 2019 USD ($)
Leases
Weighted-average remaining lease term of operating leases	4 years 9 months 29 days
Weighted-average remaining lease term of finance leases	3 years 5 months 27 days
Weighted-average discount rate for operating leases	9.80%
Weighted-average discount rate for finance leases	7.85%
Interest on financing lease liabilities	$ 0.8
Amortization expense on finance lease right-of-use assets	$ 3.4

Leases - Maturities of Operating Lease Liabilities - ASC 842 (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Maturities of operating lease liabilities:
Remainder of 2019	$ 20,636
2020	25,099
2021	20,194
2022	15,763
2023	11,671
Thereafter	21,253
Total operating lease payments	114,616
Less: Imputed interest	8,958
Present value of lease liabilities	105,658
Maturities of finance lease liabilities
Remainder of 2019	15,199
2020	12,876
2021	10,119
2022	4,529
2023	3,062
2024 and thereafter	4,064
Total finance lease payments	49,849
Less: imputed interest	6,657
Present value of finance lease liabilities	$ 43,192

Leases - Future Minimum Payments Due Under Non‐Cancelable Leases - ASC 840 (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Future minimum payments due under Operating Leases:
2019	$ 38,057
2020	29,346
2021	22,239
2022	16,782
2023	12,302
Thereafter	18,874
Future minimum payments due under Finance Leases
2019	20,080
2020	11,851
2021	9,018
2022	4,169
2023	2,244
2024 and thereafter	3,617
Total minimum lease payments	50,979
Less: imputed interest	6,743
Total net minimum lease payments	44,236
Less: Current portion of obligations under finance leases	17,498
Long-term portion of obligations under finance leases	$ 26,738

Leases - Rental Expenses (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
Leases - Rental Expenses (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Rental expenses - ASC 840
Rental expenses		$ 83.8
Rental expenses - ASC 842
Rental expenses	$ 15.1

Leases - Cash Paid and Lease Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 9,374
Financing cash flows from finance leases	5,077	$ 4,803
Right-of-use lease assets obtained in the exchange for lease liabilities:
Operating leases	2,904
Finance leases	$ 4,097

Intangibles Assets and Goodwill - Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Intangibles
Gross Carrying Amount	$ 745,471	$ 753,725
Amortization	(338,450)	(356,314)
Intangible Asset, net	407,021	397,411
Customer relationships
Intangibles
Gross Carrying Amount	507,905	507,944
Amortization	(190,666)	(203,822)
Intangible Asset, net	317,239	304,122
Developed technology
Intangibles
Gross Carrying Amount	89,053	89,053
Amortization	(85,967)	(86,651)
Intangible Asset, net	3,086	2,402
Trade names
Intangibles
Gross Carrying Amount	9,400	9,400
Amortization	(3,100)	(3,100)
Intangible Asset, net	6,300	6,300
Outsource contract costs
Intangibles
Gross Carrying Amount	46,342	52,378
Amortization	(27,719)	(30,414)
Intangible Asset, net	18,623	21,964
Internally developed software-Connect Platform
Intangibles
Gross Carrying Amount	36,820	39,000
Amortization	(6,278)	(6,881)
Intangible Asset, net	30,542	32,119
Trademarks
Intangibles
Gross Carrying Amount	23,379	23,378
Amortization	(23,370)	(23,370)
Intangible Asset, net	9	8
Impairment charge	3,700
Accumulated impairment losses		43,100	$ 43,100
Non compete agreements
Intangibles
Gross Carrying Amount	1,350	1,350
Amortization	(1,350)	(1,350)
Assembled workforce
Intangibles
Gross Carrying Amount	4,473	4,473
Amortization		(280)
Intangible Asset, net	4,473	4,193
Purchased software
Intangibles
Gross Carrying Amount	26,749	26,749
Amortization		(446)
Intangible Asset, net	$ 26,749	$ 26,303

Intangibles Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2018
Goodwill
Goodwill, beginning of the period	$ 708,258		$ 747,325
Additions			5,580
Reductions		$ 44,400	44,427
Currency translation adjustments	27		(220)
Goodwill, end of the period	708,285	708,258	708,258
Accumulated impairment losses	137,900
ITPS
Goodwill
Goodwill, beginning of the period	571,575		566,215
Additions			5,580
Currency translation adjustments	27		(220)
Goodwill, end of the period	571,602	571,575	571,575
HS
Goodwill
Goodwill, beginning of the period	86,786		86,786
Goodwill, end of the period	86,786	86,786	86,786
LLPS
Goodwill
Goodwill, beginning of the period	49,897		94,324
Reductions			44,427
Goodwill, end of the period	$ 49,897	$ 49,897	$ 49,897

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

Long-Term Debt and Credit Facilities - Senior Credit Facilities (Details) - First lien credit agreement - USD ($) $ in Millions	Jul. 12, 2017	Mar. 31, 2019	Dec. 31, 2018
Debt instruments
Original issue discount		$ 7.9	$ 8.3
Senior secured term loan
Debt instruments
Debt instrument face amount	$ 350.0
Original issue discount	$ 7.0
Principal percentage of each of first eight payments (as a percent)	0.60%
Principal percentage of each payment thereafter (as a percent)	1.30%
Senior secured revolving facility
Debt instruments
Maximum borrowing capacity	$ 100.0
Outstanding credit facility		$ 21.0	$ 20.6
LIBOR \| Senior secured term loan
Debt instruments
Applicable margin rate	7.50%
Floor interest rate	1.00%
LIBOR \| Senior secured revolving facility
Debt instruments
Applicable margin rate	7.00%
Base rate \| Senior secured term loan
Debt instruments
Applicable margin rate	6.50%
Base rate \| Senior secured revolving facility
Debt instruments
Applicable margin rate	6.00%

Long-Term Debt and Credit Facilities - Term Loan Repricing (Details) - USD ($) $ in Thousands	Jul. 13, 2018	Mar. 31, 2019	Dec. 31, 2018
Debt instruments
Outstanding amount of term loans		$ 1,368,973	$ 1,335,660
First Amendment
Debt instruments
Proceeds from refinancing term loans	$ 343,400
Reduction in interest rate (in percentage)	1.00%
First Amendment \| Eurodollar
Debt instruments
Floor interest rate	1.00%
First Amendment \| Federal funds rate
Debt instruments
Variable interest rate (as a percent)	0.50%
First Amendment \| LIBOR
Debt instruments
Variable interest rate (as a percent)	6.50%
First Amendment \| One-month adjusted LIBOR
Debt instruments
Variable interest rate (as a percent)	1.00%
First Amendment \| Base rate
Debt instruments
Variable interest rate (as a percent)	5.50%
Senior secured revolving facility
Debt instruments
Outstanding amount of term loans	$ 343,400
Senior secured revolving facility \| First Amendment
Debt instruments
Debt issuance costs	1,000
Amortization expense of debt issuance costs	1,000
Write off of previously recognized debt issuance costs	100
Maximum debt issuance costs for new lenders exceeded 10% test	$ 100

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

Long-Term Debt and Credit Facilities - Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Jul. 13, 2018	Jul. 12, 2017
Debt instruments
Total debt	$ 1,368,973	$ 1,335,660
Less: Current portion of long-term debt	(32,821)	(29,237)
Long-term debt, net of current maturities	1,336,152	1,306,423
Senior secured revolving facility
Debt instruments
Total debt			$ 343,400
Senior secured notes
Debt instruments
Total debt	975,535	974,443
Debt discount				$ 22,500
Other
Debt instruments
Total debt	28,334	25,321
First lien credit agreement
Debt instruments
Total debt	335,104	335,896
Debt discount	7,900	8,300
Unamortized debt issuance costs	23,300	24,500
Senior secured notes
Debt instruments
Debt discount	17,500	18,200
Unamortized debt issuance costs	7,000	$ 7,300
Revolver
Debt instruments
Total debt	$ 30,000

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Income Taxes
Income tax (expense) benefit	$ (4,720)	$ (4,025)
Actual effective tax rate	(18.70%)	(20.20%)
Statutory tax rate	21.00%	21.00%
Increase (decrease) in valuation allowance	$ 6,300

Employee Benefit Plans - Germany & UK (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
German Pension Plan \| Unfunded Plan
Pension plans
Plan assets	$ 0.0
German Pension Plan \| Unfunded Plan \| Minimum
Pension plans
Qualifying period	10 years
U.K. Pension Plan \| Minimum
Pension plans
Minimum required years prior to retirement for eligibility	3 years
Asterion Pension Plan \| Minimum
Pension plans
Minimum required years prior to retirement for eligibility	3 years
Norway Pension Plan \| Minimum
Pension plans
Minimum required years prior to retirement for eligibility	3 years

Employee Benefit Plans - Tax Effect on Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Benefit Costs
Net actuarial loss	$ (9.5)	$ (9.3)
Deferred tax benefit	$ 2.1

Employee Benefit Plans - Pension Expense (Details) - Pension [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net periodic benefit cost
Service cost	$ 23	$ 2
Interest cost	605	586
Expected return on plan assets	(626)	(719)
Amortization of prior service cost	26	(36)
Amortization of net (gain) loss	415	463
Net periodic benefit cost	$ 443	$ 296

Employee Benefit Plans - Employer Contributions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Employer Contributions
Employer contributions	$ 0.8	$ 0.6

Fair Value Measurement (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Carrying amounts and estimated fair values of financial instruments
Goodwill	$ 708,285	$ 708,258	$ 747,325
Senior secured term loan
Assets and liabilities measured at fair value
Fair value percentage	99.60%
Senior secured notes
Assets and liabilities measured at fair value
Fair value percentage	101.80%
Level 3
Reconciliation of net assets and liabilities
Balance at end of period	$ 721	721	$ 721
Carrying Amount
Carrying amounts and estimated fair values of financial instruments
Acquisition contingent liability	721	721
Long-term debt	1,336,152	1,306,423
Interest rate swap	2,160	3,836
Goodwill	708,285	708,258
Fair Value
Carrying amounts and estimated fair values of financial instruments
Acquisition contingent liability	721	721
Long-term debt	1,377,941	1,316,306
Interest rate swap	2,160	3,836
Goodwill	708,285	708,258
Fair Value \| Level 2
Carrying amounts and estimated fair values of financial instruments
Long-term debt	1,377,941	1,316,306
Interest rate swap	2,160	3,836
Fair Value \| Level 3
Carrying amounts and estimated fair values of financial instruments
Acquisition contingent liability	721	721
Goodwill	$ 708,285	$ 708,258

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

Stock-Based Compensation - Stock Incentive Plan (Details) - shares	Jan. 17, 2018	Mar. 31, 2019	Dec. 31, 2018
Exela 2018 Stock Incentive Plan
Common stock shares authorized		1,600,000,000	1,600,000,000
2018 Plan
Exela 2018 Stock Incentive Plan
Common stock shares authorized	8,323,764
Stock options \| 2018 Plan
Exela 2018 Stock Incentive Plan
Minimum fair market value per share of underlying stock used to determine option grant price, as a percent	100.00%
Expiration of stock options	10 years

Stock-Based Compensation - Restricted Stock Unit Grants (Details) - RSU's - 2018 Plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Number of Shares
Balance at the beginning of the period (in shares)	893,297
Shares granted		0
Shares forfeited	(48,000)
Balance at the end of the period (in shares)	845,297		893,297
Weighted Average Grant Date Fair Value
Balance at the beginning of the period	$ 5.86
Balance at the end of the period	$ 6.12		$ 5.86
Average Remaining Contractual Life (Years)
Weighted average remaining contractual life (in years)	6 months 18 days		9 months 4 days
Aggregate Intrinsic Value
Aggregate intrinsic value outstanding	$ 4,952		$ 5,239
Minimum
Stock-Based Compensation
Vesting period	1 year
Maximum
Stock-Based Compensation
Vesting period	2 years

Stock-Based Compensation - Options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
2013 Plan and 2018 Plan
Unrecognized compensation expense
Unrecognized compensation expense	$ 10,300
2013 Plan \| Selling, general and administrative expense
Unrecognized compensation expense
Total compensation expense	1,000
2018 Plan \| Selling, general and administrative expense
Unrecognized compensation expense
Total compensation expense	$ 1,800
Stock options \| 2018 Plan
Outstanding
Balance at beginning of period (in shares)	3,570,300
Granted (in shares)		0
Forfeited (in shares)	(192,000)
Balance at the end of period (in shares)	3,378,300		3,570,300
Weighted Average Exercise Price
Balance at the beginning of period	$ 6.06
Balance at the end of period (in shares)	$ 6.07		$ 6.06
Additional information
Average Remaining Vesting Period	2 years 8 months 16 days		2 years 11 months 1 day
Aggregate Intrinsic Value	$ 9,074		$ 9,590
Stock options \| 2018 Plan \| Minimum
Stock-based compensation
Vesting period		2 years
Stock options \| 2018 Plan \| Maximum
Stock-based compensation
Vesting period		4 years
RSU's \| 2018 Plan \| Minimum
Stock-based compensation
Vesting period	1 year
RSU's \| 2018 Plan \| Maximum
Stock-based compensation
Vesting period	2 years

Stockholders’ Equity - Common Stock (Details)	1 Months Ended	3 Months Ended
Stockholders’ Equity - Common Stock (Details)	Jan. 31, 2018 shares	Mar. 31, 2019 Vote shares	Mar. 31, 2018 shares	Dec. 31, 2018 shares
Common Stock
Common Stock, shares authorized		1,600,000,000		1,600,000,000
Common Stock, shares, outstanding		150,142,955		150,142,955
Common stock, shares issued		152,692,140		152,692,140
Number of voting rights entitled for each share of Common Stock held \| Vote		1
Series A Preferred Stock
Common Stock
Preferred shares converted to common	1,625,000
Common Stock
Common Stock
Common Stock, shares, outstanding				150,142,955
Common stock, shares issued		152,692,140
Preferred shares converted to common	1,987,767		1,986,767

Stockholders’ Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jul. 12, 2017
Preferred Stock
Preferred stock, shares authorized	20,000,000		20,000,000
Preferred stock, shares outstanding	4,569,233		4,569,233
Preferred Stock, par value (in dollars per share)	$ 0.0001		$ 0.0001
Conversion ratio to Common Stock	1.2226
Preferred Stock, cumulative dividends rate (in percentage)	10.00%
Cumulative dividends for Series A Preferred Stock	$ 914	$ 914
Series A Preferred Stock
Preferred Stock
Preferred stock, shares outstanding	4,569,233
Cumulative accrued but unpaid dividends				$ 7,100
Cumulative preferred dividends (in dollars per share)	$ 0.2	$ 0.2

Stockholders’ Equity - Treasury Stock (Details) - shares		3 Months Ended
	Nov. 08, 2017	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Stockholders’ Equity
Treasury stock, shares authorized	5,000,000
Term of share buyback program	24 months
Treasury stock, shares repurchased		0	0
Treasury shares		2,549,185		2,549,185

Stockholders’ Equity - Warrants (Details)	3 Months Ended
Stockholders’ Equity - Warrants (Details)	Mar. 31, 2019 item $ / shares shares
Warrants
Number of Common Stock each warrant may purchase	0.5
Exercise price of warrant per half of Common Stock \| $ / shares	$ 5.75
Exercise price of warrant per one Common Stock (in US$ per share) \| $ / shares	$ 11.50
Expiration of warrants from business acquisition date	5 years
Warrant redemption price (in US$ per share) \| $ / shares	$ 0.01
Minimum written notice period of redemption	30 days
Minimum common stock sales price for exercise of redemption right (in US$ per share) \| $ / shares	$ 24.00
Minimum trading days within 30-day period at $24 per share for exercise of redemption right \| item	20
Trading day period for exercise of redemption right	30 days
Period of the 30-day period prior to notice of redemption	3 days
Period of current registration effectivity prior to 30-day trading period	5 days
Warrants
Warrants
Warrants outstanding	34,988,302
Number of warrants separated from the original unit	34,988,302
Number of warrants not separated from the original unit	11,698
Warrants \| IPO
Warrants
Units issued	35,000,000
Common stock included in units	1
Warrants included in units	1

Related-Party Transactions - Consulting Agreement (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Related-Party Transactions
Related party expense	$ 994	$ 1,105
Oakana Holdings Inc
Related-Party Transactions
Related party expense	100	$ 100
Consulting Services [Member] \| Shadow Pond LLC
Related-Party Transactions
Related party expense	$ 0

Related-Party Transactions - Relationship with HandsOn Global Management (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2016 agreement	Dec. 31, 2015 agreement
Related-Party Transactions
Related party expense	$ 994	$ 1,105
Amount of related party transaction	$ 994	1,105
Entities affiliated with HGM managed funds \| Master Agreement [Member]
Related-Party Transactions
Revenue share percentage	25.00%
SourceHOV \| Master Agreement [Member]
Related-Party Transactions
Revenue share percentage	75.00%
SourceHOV \| Entities affiliated with HGM managed funds \| Master Agreement [Member]
Related-Party Transactions
Related party expense	$ 100	$ 200
Number of master agreements \| agreement			10	10

Related-Party Transactions - Relationship with HOV Services, Ltd (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Related-Party Transactions
Related party expense	$ 994	$ 1,105
Amount of related party transaction	994	1,105
HOV Services, Ltd \| Data Capture And Technology Services \| Cost of revenue
Related-Party Transactions
Related party expense	$ 400	$ 400

Related Party Transactions - Relationship with Apollo Global Management, LLC (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) director	Mar. 31, 2018 USD ($)
Related-Party Transactions
Related party expense	$ 994	$ 1,105
Apollo
Related-Party Transactions
Number of directors right to designate \| director	2
Management Holdings \| Master Service Agreement [Member]
Related-Party Transactions
Revenue from related parties	$ 100	100
Caesars \| Master Service Agreement [Member]
Related-Party Transactions
Revenue from related parties	1,100	1,000
ADT LLC \| Master Service Agreement [Member]
Related-Party Transactions
Revenue from related parties	300	100
Diamond Resorts Centralized Services \| Master Service Agreement [Member]
Related-Party Transactions
Revenue from related parties	1,700	2,400
Related party cost of revenue	100	100
Novitex Solutions \| Presidio Group \| Master Service Agreement [Member]
Related-Party Transactions
Related party expense	$ 200	$ 100

Related-Party Transactions - Payable Balance with Affiliates (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	$ 6,184	$ 7,735
HOV Services, Ltd
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	367	405
Rule 14, LLC
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	110	127
HGM
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	5,450	6,998
Apollo
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	241	$ 205
Oakana Holdings Inc
Receivable and Payable Balances with Affiliates
Payable balances with affiliates	$ 16

Segment Information - Revenue by segment information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) segment	Mar. 31, 2018 USD ($)
Segment information
Number of segments \| segment	3
Revenue	$ 403,765	$ 393,167
Cost of revenue	306,882	293,792
Selling, general and administrative expenses	49,949	45,595
Depreciation and amortization	28,020	38,019
Related party expense	994	1,105
Interest expense, net	38,899	38,017
Sundry expense (income), net	2,531	(64)
Other income, net	1,677	(3,328)
Net loss before income taxes	(25,187)	(19,969)
ITPS
Segment information
Revenue	324,580	311,937
Cost of revenue	257,388	245,173
HS
Segment information
Revenue	61,343	58,632
Cost of revenue	38,506	34,956
LLPS
Segment information
Revenue	17,842	22,598
Cost of revenue	$ 10,988	$ 13,663

Subsequent Events (Details) - Subsequent Events $ in Millions	Apr. 16, 2019 USD ($)
Federal funds rate
Subsequent Events
Applicable margin rate	0.50%
One-month adjusted LIBOR
Subsequent Events
Applicable margin rate	1.00%
LIBOR
Subsequent Events
Floor interest rate	1.00%
Applicable margin rate	6.50%
Base rate
Subsequent Events
Applicable margin rate	5.50%
Incremental term loan
Subsequent Events
Proceeds from incremental term loans	$ 30.0

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