Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 22, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CTSH | ||
Entity Registrant Name | COGNIZANT TECHNOLOGY SOLUTIONS CORP | ||
Entity Central Index Key | 1,058,290 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 608,637,143 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 34.6 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated Statements Of Fina
Consolidated Statements Of Financial Position - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 2,034 | $ 2,125 |
Short-term investments | 3,135 | 2,824 |
Trade accounts receivable, net of allowances of $48 and $39, respectively | 2,556 | 2,253 |
Unbilled accounts receivable | 349 | 369 |
Other current assets | 526 | 338 |
Total current assets | 8,600 | 7,909 |
Property and equipment, net | 1,311 | 1,271 |
Goodwill | 2,554 | 2,405 |
Intangible assets, net | 951 | 864 |
Deferred income tax assets, net | 425 | 348 |
Equity and cost method investments | 62 | 0 |
Other noncurrent assets | 359 | 264 |
Total assets | 14,262 | 13,061 |
Liabilities and Stockholders' Equity | ||
Accounts payable | 175 | 165 |
Deferred revenue | 306 | 324 |
Short-term debt | 81 | 406 |
Accrued expenses and other current liabilities | 1,856 | 1,819 |
Total current liabilities | 2,418 | 2,714 |
Deferred revenue, noncurrent | 151 | 49 |
Deferred income tax liabilities, net | 6 | 3 |
Long-term debt | 797 | 877 |
Other noncurrent liabilities | 162 | 140 |
Total liabilities | 3,534 | 3,783 |
Commitments and contingencies (See Note 13) | ||
Stockholders' Equity: | ||
Preferred stock, $0.10 par value, 15.0 shares authorized, none issued | 0 | 0 |
Class A common stock, $0.01 par value, 1,000 shares authorized, 608 and 609 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively | 6 | 6 |
Additional paid-in capital | 358 | 453 |
Retained earnings | 10,478 | 8,925 |
Accumulated other comprehensive income (loss) | (114) | (106) |
Total stockholders’ equity | 10,728 | 9,278 |
Total liabilities and stockholders’ equity | $ 14,262 | $ 13,061 |
Consolidated Statements Of Fin3
Consolidated Statements Of Financial Position (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 48 | $ 39 |
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, issued | 0 | 0 |
Class A common stock, par value | $ 0.01 | $ 0.01 |
Class A common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Class A common stock, shares issued | 608,000,000 | 609,000,000 |
Class A common stock, shares outstanding | 608,000,000 | 609,000,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenues | $ 13,487 | $ 12,416 | $ 10,263 |
Operating expenses: | |||
Cost of revenues (exclusive of depreciation and amortization expense shown separately below) | 8,108 | 7,440 | 6,141 |
Selling, general and administrative expenses | 2,731 | 2,509 | 2,037 |
Depreciation and amortization expense | 359 | 325 | 200 |
Income from operations | 2,289 | 2,142 | 1,885 |
Other income (expense), net: | |||
Interest income | 115 | 84 | 62 |
Interest expense | (19) | (18) | (3) |
Foreign currency exchange gains (losses), net | (30) | (43) | (20) |
Other, net | 2 | (1) | 0 |
Total other income (expense), net | 68 | 22 | 39 |
Income before provision for income taxes | 2,357 | 2,164 | 1,924 |
Provision for income taxes | (805) | (540) | (485) |
Income from equity method investment | 1 | 0 | 0 |
Net income | $ 1,553 | $ 1,624 | $ 1,439 |
Basic earnings per share | $ 2.56 | $ 2.67 | $ 2.37 |
Diluted earnings per share | $ 2.55 | $ 2.65 | $ 2.35 |
Weighted average number of common shares outstanding—Basic | 607 | 609 | 608 |
Dilutive effect of shares issuable under stock-based compensation plans | 3 | 4 | 5 |
Weighted average number of common shares outstanding—Diluted | 610 | 613 | 613 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,553 | $ 1,624 | $ 1,439 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (59) | (55) | (59) |
Change in unrealized gains and losses on cash flow hedges, net of taxes | 51 | 75 | 213 |
Change in unrealized losses on available-for-sale investment securities, net of taxes | 0 | (3) | (1) |
Other comprehensive income (loss) | (8) | 17 | 153 |
Comprehensive income | $ 1,545 | $ 1,641 | $ 1,592 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
AOCI, beginning balance at Dec. 31, 2013 | $ 6,136 | $ 6 | $ 544 | $ 5,862 | $ (276) |
Beginning balance, shares at Dec. 31, 2013 | 608 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,439 | 1,439 | |||
Other comprehensive income | 153 | 153 | |||
Common stock issued, stock-based compensation plans and other | 101 | 101 | |||
Common stock issued, stock based compensation plans and other, shares | 6 | ||||
Tax benefit, stock-based compensation plans | 24 | 24 | |||
Stock-based compensation expense | 135 | 135 | |||
Repurchases of common stock | (248) | (248) | |||
Repurchases of common stock, shares | (5) | ||||
AOCI, ending balance at Dec. 31, 2014 | 7,740 | $ 6 | 556 | 7,301 | (123) |
Ending balance, shares at Dec. 31, 2014 | 609 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,624 | 1,624 | |||
Other comprehensive income | 17 | 17 | |||
Common stock issued, stock-based compensation plans and other | 131 | 131 | |||
Common stock issued, stock based compensation plans and other, shares | 7 | ||||
Tax benefit, stock-based compensation plans | 34 | 34 | |||
Stock-based compensation expense | 192 | 192 | |||
Repurchases of common stock | (460) | (460) | |||
Repurchases of common stock, shares | (7) | ||||
AOCI, ending balance at Dec. 31, 2015 | $ 9,278 | $ 6 | 453 | 8,925 | (106) |
Ending balance, shares at Dec. 31, 2015 | 609 | 609 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 1,553 | 1,553 | |||
Other comprehensive income | (8) | (8) | |||
Common stock issued, stock-based compensation plans and other | 176 | 176 | |||
Common stock issued, stock based compensation plans and other, shares | 8 | ||||
Tax benefit, stock-based compensation plans | 24 | 24 | |||
Stock-based compensation expense | 217 | 217 | |||
Repurchases of common stock | (512) | (512) | |||
Repurchases of common stock, shares | (9) | ||||
AOCI, ending balance at Dec. 31, 2016 | $ 10,728 | $ 6 | $ 358 | $ 10,478 | $ (114) |
Ending balance, shares at Dec. 31, 2016 | 608 | 608 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 1,553 | $ 1,624 | $ 1,439 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 379 | 330 | 208 |
Provision for doubtful accounts | 12 | 10 | 5 |
Deferred income taxes | (91) | (126) | (100) |
Stock-based compensation expense | 217 | 192 | 135 |
Excess tax benefits on stock-based compensation plans | (24) | (34) | (24) |
Other | 46 | 49 | 31 |
Changes in assets and liabilities: | |||
Trade accounts receivable | (330) | (322) | (259) |
Other current assets | (104) | (33) | (119) |
Other noncurrent assets | (59) | (39) | 19 |
Accounts payable | 6 | 19 | 26 |
Deferred revenue, current and noncurrent | (38) | 50 | 71 |
Other current and noncurrent liabilities | 54 | 433 | 41 |
Net cash provided by operating activities | 1,621 | 2,153 | 1,473 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (300) | (273) | (212) |
Purchases of investments | (5,169) | (3,004) | (2,498) |
Proceeds from maturity or sale of investments | 4,840 | 1,908 | 2,240 |
Payments for business combinations, net of cash acquired, and equity and cost method investments | (334) | (2) | (2,691) |
Net cash (used in) investing activities | (963) | (1,371) | (3,161) |
Cash flows from financing activities: | |||
Issuance of common stock under stock-based compensation plans | 176 | 131 | 101 |
Excess tax benefits on stock-based compensation plans | 24 | 34 | 24 |
Repurchases of common stock | (512) | (460) | (248) |
Proceeds from term loan borrowings | 0 | 0 | 1,000 |
Debt issuance costs | 0 | 0 | (9) |
Repayment of term loan borrowings and capital lease obligations | (57) | (53) | (15) |
Net change in notes outstanding under the revolving credit facility | (350) | (300) | 650 |
Net cash (used in) provided by financing activities | (719) | (648) | 1,503 |
Effect of exchange rate changes on cash and cash equivalents | (30) | (19) | (18) |
(Decrease) increase in cash and cash equivalents | (91) | 115 | (203) |
Cash and cash equivalents, beginning of year | 2,125 | 2,010 | 2,213 |
Cash and cash equivalents, end of period | 2,034 | 2,125 | 2,010 |
Supplemental information: | |||
Cash paid for income taxes during the year | 845 | 579 | 559 |
Cash interest paid during the year | $ 16 | $ 14 | $ 0 |
Business Description and Summar
Business Description and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Business Description and Summary of Significant Accounting Policies | Business Description and Summary of Significant Accounting Policies The terms “Cognizant,” “we,” “our,” “us” and “the Company” refer to Cognizant Technology Solutions Corporation and its subsidiaries unless the context indicates otherwise. Description of Business. We are one of the world’s leading professional services companies, transforming customers’ business, operating and technology models for the digital era. Our unique industry-based, consultative approach helps customers envision, build and run more innovative and efficient businesses. Our core competencies include: business, process, operations and technology consulting, digital services, application development and systems integration, enterprise information management, application testing, application maintenance, information technology, or IT, infrastructure services, and business process services. We tailor our services to specific industries and utilize an integrated global delivery model with customer service teams typically based on-site at the customer locations and delivery teams located at dedicated global delivery centers. Basis of Presentation and Principles of Consolidation . The consolidated financial statements are presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, and reflect the consolidated financial position, results of operations, comprehensive income and cash flows of our consolidated subsidiaries for all periods presented. All intercompany balances and transactions have been eliminated in consolidation. Equity investments through which we are able to exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee’s activities are accounted for using the equity method. Cash and Cash Equivalents and Investments. Cash and cash equivalents consist of all cash balances, including money market funds and liquid instruments. Liquid instruments are classified as cash equivalents when their maturities at the date of purchase are 90 days or less and as short-term investments when their maturities at the date of purchase are greater than 90 days. We determine the appropriate classification of our investments in marketable securities at the date of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable securities as either trading, available-for-sale or held-to-maturity. After consideration of our risk versus reward objectives, as well as our liquidity requirements, we may sell our trading and available-for-sale securities prior to their stated maturities. We classify these marketable securities with maturities at the date of purchase beyond 90 days as short-term investments based on their highly liquid nature and because such marketable securities represent an investment of cash that is available for current operations. Our held-to-maturity investment securities are financial instruments for which we have the intent and ability to hold to maturity and we classify these securities with maturities beyond 90 days but less than one year as short-term investments. Any held-to-maturity investment securities with maturities beyond one year would be classified as noncurrent. Trading securities are reported at fair value with changes in unrealized gains and losses recorded in Other income (expense), net in our consolidated statements of operations. Available-for-sale securities are reported at fair value with changes in unrealized gains and losses recorded as a separate component of accumulated other comprehensive income (loss) until realized. We determine the cost of the securities sold based on the specific identification method. Held-to-maturity securities are reported at amortized cost. Time deposits with financial institutions are valued at cost, which approximates fair value. Interest and amortization of premiums and discounts for debt securities are included in interest income. On a quarterly basis, we evaluate our available-for-sale and held-to-maturity investments for possible other-than-temporary impairment by reviewing factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, whether we intend to sell the security and whether it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to income and a new cost basis in the investment is established. Allowance for Doubtful Accounts. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is determined by evaluating the relative credit-worthiness of each customer, historical collections experience and other information, including the aging of the receivables. We evaluate the collectibility of our accounts receivable on an on-going basis and write-off accounts when they are deemed to be uncollectible. Unbilled Accounts Receivable. Unbilled accounts receivable represent revenues recognized on contracts to be billed, in subsequent periods, as per the terms of the related contracts. Short-term Financial Assets and Liabilities. Cash and certain cash equivalents, trade receivables, accounts payable and other accrued liabilities are short-term in nature and, accordingly, their carrying values approximate fair value. Property and Equipment . Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. In India, leasehold land is leased by us from the government of India with lease terms ranging up to 99 years . Lease payments are made at the inception of the lease agreement and amortized over the lease term. Maintenance and repairs are expensed as incurred, while renewals and betterments are capitalized. Deposits paid towards acquisition of long-lived assets and the cost of assets not put in use before the balance sheet date are disclosed under the caption “Capital work-in-progress” in Note 5. Internal Use Software . We capitalize certain costs that are incurred to purchase, develop and implement internal-use software during the application development phase, which primarily include coding, testing and certain data conversion activities. Capitalized costs are amortized on a straight-line basis over the useful life of the software. Costs incurred in performing activities associated with the preliminary project phase and the post-implementation phase are expensed as incurred. Business Combinations . We account for business combinations using the acquisition method, which requires the identification of the acquirer, the determination of the acquisition date and the allocation of the purchase price paid by the acquirer to the identifiable tangible and intangible assets acquired, the liabilities assumed, including any contingent consideration and any noncontrolling interest in the acquiree at their acquisition date fair values. Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in our consolidated financial statements from the acquisition date . Equity Method Investments. Equity investments that give us the ability to exercise significant influence, but not control, over an investee are accounted for using the equity method of accounting. Equity method investments are initially recorded at cost and any excess cost over our proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill and included in the carrying amount of the investment. We periodically review the carrying value of our equity method investments to determine if there has been an other-than-temporary decline in carrying value. The Company's proportionate share of the net income or loss of the investee is recorded in the caption "Income from equity method investment" on our consolidated statements of operations. The investment balance is increased or decreased for cash contributions and distributions to or from these investees. In the circumstance we obtain control of the investee, the existing carrying value of the investment is remeasured to the fair value on the change of control date and any gain or loss is recognized in results of operations. Cost Method Investments. Equity investments without readily determinable fair values in which we do not exercise significant influence or control are accounted for using the cost method of accounting and recorded in the caption "Equity and cost method investments" on our consolidated statement of financial position. Investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions and additional investments. We periodically review the carrying value of our cost method investments to determine if there has been an other-than-temporary decline in carrying value. Long-lived Assets and Finite-lived Intangibles . We review long-lived assets and certain finite-lived identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We recognize an impairment loss when the sum of undiscounted expected future cash flows is less than the carrying amount of such assets. The impairment loss is determined as the amount by which the carrying amount of the asset exceeds the fair value of the asset. Intangible assets consist primarily of customer relationships and developed technology, which are being amortized on a straight-line basis over their estimated useful lives. Goodwill and Indefinite-lived Intangibles . We evaluate goodwill and indefinite-lived intangible assets for impairment at least annually, or as circumstances warrant. Goodwill is evaluated at the reporting unit level by comparing the fair value of the reporting unit with its carrying amount. For indefinite-lived intangible assets, if our annual qualitative assessment indicates possible impairment, we test the assets for impairment by comparing the fair value of such assets to their carrying value. In determining the fair value, we utilize various estimates and assumptions, including discount rates and projections of future cash flows. If an impairment is indicated, a write down to the implied fair value of goodwill or fair value of indefinite-lived intangible asset is recorded. Stock Repurchase Program. Through December 2016, our Board of Directors had authorized the repurchase of $3,000 million of our outstanding shares of Class A common stock, excluding fees and expenses ("Existing Stock Repurchase Program"). In February 2017, the Board of Directors approved the termination of the Existing Stock Repurchase Program and approved a new stock repurchase program ("New Stock Repurchase Program"), both actions to take effect on the date of filing of our Annual Report on this Form 10-K for the year ended December 31, 2016. The New Stock Repurchase Program allows for the repurchase of $3,500 million of our outstanding shares of Class A common stock, excluding fees and expenses, through December 31, 2019. During 2016 , 2015 and 2014 , we repurchased 8 million , 6 million and 4 million shares respectively, at an aggregate cost of $440 million , $376 million and $188 million, respectively under the Existing Stock Repurchase Program. Additional stock repurchases were made in connection with our stock-based compensation plans, whereby Company shares were tendered by employees for payment of applicable statutory tax withholdings. During 2016 , 2015 and 2014 , such repurchases totaled 1 million in each of the years, at an aggregate cost of $72 million, $84 million and $60 million, respectively. We account for the repurchases as constructively retired. At the time of repurchase, shares are returned to the status of authorized and unissued shares. To reflect share repurchases in the consolidated statement of financial position, the Company (i) reduces common stock for the par value of the shares, (ii) reduces additional paid-in capital for the amount in excess of par during the period in which the shares are repurchased and (iii) records any residual amount in excess of available additional paid-in capital to retained earnings. Revenue Recognition . Revenues related to time-and-materials contracts are recognized as the service is performed and amounts are earned. Revenues from transaction-priced contracts are recognized as transactions are processed and amounts are earned. Revenues related to fixed-price contracts for highly complex application development and systems integration services are recognized as the service is performed using the percentage of completion method of accounting, under which the total value of revenues is recognized on the basis of the percentage that each contract’s total labor cost to date bears to the total expected labor costs (cost to cost method). Revenues related to fixed-price outsourcing services are recognized on a straight-line basis unless revenues are earned and obligations are fulfilled in a different pattern. Revenues related to fixed-price contracts for consulting or other technology services are recognized as services are performed on a proportional performance basis based upon the level of effort. For all services, revenues are earned and recognized only when all of the following criteria are met: evidence of an arrangement exists, the price is fixed or determinable, the services have been rendered and collectibility is reasonably assured. Contingent or incentive revenues are recognized when the contingency is satisfied and we conclude the amounts are earned. Volume discounts are recorded as a reduction of revenues as services are provided. Revenues also include the reimbursement of out-of-pocket expenses. Costs to deliver services are expensed as incurred with the exception of specific costs directly related to transition or set-up activities for outsourcing contracts. Transition costs are deferred and expensed ratably over the period of service. Deferred amounts are protected by collected cash or early termination penalty clauses and are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows of the related contract are not sufficient to recover the carrying amount of the contract assets. Deferred transition costs were approximately $ 188 million and $ 137 million as of December 31, 2016 and 2015 , respectively, and are included in other noncurrent assets in our consolidated statements of financial position. Costs related to warranty provisions are accrued at the time the related revenues are recorded. We may enter into arrangements that consist of multiple elements. Such arrangements may include any combination of our products, solutions and services. For arrangements with multiple deliverables, we evaluate at the inception of each new arrangement all deliverables to determine whether they represent separate units of accounting. For arrangements with multiple units of accounting, other than arrangements that contain software licenses and software-related services, we allocate consideration among the units of accounting, where separable, based on their relative selling price. Relative selling price is determined based on vendor-specific objective evidence, or VSOE, if it exists. Otherwise, third-party evidence of selling price is used, when it is available, and in circumstances when neither VSOE nor third-party evidence of selling price is available, management’s best estimate of selling price is used. Revenues are recognized for each unit of accounting based on our revenue recognition policy described above. Fixed-price contracts are generally cancelable subject to a specified notice period. All services provided by us through the date of cancellation are due and payable under the contract terms. We issue invoices related to fixed-price contracts based upon achievement of milestones during a project or other contractual terms. Differences between the timing of billing, based on contract milestones or other contractual terms, and the recognition of revenues are recognized as either unbilled receivables or deferred revenue. Estimates of certain fixed-price contracts are subject to adjustment as a project progresses to reflect changes in expected completion costs or efforts. The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known and any anticipated losses on contracts are recognized immediately. We also generate product revenues from licensing our software. For perpetual software license arrangements that do not require significant modification or customization of the underlying software, revenues are recognized when the software is delivered and all other software revenue recognition criteria are met. For software license arrangements that require significant functionality enhancements or modification of the software, revenues for the software license and those services are recognized as those services are performed. For software license arrangements that include a right to use the product for a defined period of time, we recognize revenues ratably over the term of the license. We may enter into arrangements with customers that purchase both software licenses and software-related services from us at the same time, or within close proximity of one another (referred to as software-related multiple-element arrangements). Such software related multiple-element arrangements may include software licenses, software license updates, product support contracts and other software-related services. For those software related multiple-element arrangements, we apply the residual method to determine the amount of software license revenues. Under the residual method, if VSOE of fair value exists for undelivered elements in a multiple-element arrangement, revenues equal to the fair value of the undelivered elements are deferred with the remaining portion of the arrangement consideration generally recognized upon delivery of the software license. For arrangements in which VSOE of fair value does not exist for each software-related undelivered element, revenues for the software license are deferred and not recognized until VSOE of fair value is available for the undelivered element or delivery of each element has occurred. If the only undelivered element is a service, revenues from the delivered element are recognized over the service period. We also enter into multiple-element arrangements that may include a combination of software licenses and various software-related and non-software-related services. In such arrangements, we first allocate the total arrangement consideration, based on relative selling prices, between the software group of elements and the non-software group of elements. We then further allocate consideration within the software group to the respective elements within that group following the software-related multiple-element arrangements policies described above. For the non-software group of elements, we further allocate consideration to the respective elements based on relative selling prices. After the arrangement consideration has been allocated to the individual elements, we account for each respective element in the arrangement as described above. Stock-Based Compensation. Stock-based compensation expense for awards of equity instruments to employees and non-employee directors is determined based on the grant-date fair value of those awards. We recognize these compensation costs net of an estimated forfeiture rate over the requisite service period of the award. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates. Foreign Currency . The assets and liabilities of our foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars from local currencies at current exchange rates and revenues and expenses are translated from local currencies at average monthly exchange rates. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss) on the accompanying consolidated statements of financial position. Foreign currency transactions and balances are those that are denominated in a currency other than the subsidiary’s functional currency. The U.S. dollar is the functional currency for certain foreign subsidiaries who conduct business predominantly in U.S. dollars. For these subsidiaries, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at current exchange rates. Foreign currency exchange gains or losses from remeasurement are included in the "Foreign currency exchange gain (losses), net" line on our consolidated statement of operations together with gains or losses on our undesignated foreign currency hedges. Derivative Financial Instruments. Derivative financial instruments are recorded on the balance sheet as either an asset or liability measured at its fair value as of the reporting date. Our derivative financial instruments consist of foreign exchange forward contracts. For derivative financial instruments to qualify for hedge accounting, the following criteria must be met: (1) the hedging instrument must be designated as a hedge; (2) the hedged exposure must be specifically identifiable and must expose us to risk; and (3) it is expected that a change in fair value of the derivative financial instrument and an opposite change in the fair value of the hedged exposure will have a high degree of correlation. The authoritative guidance requires that changes in our derivatives’ fair values be recognized in income unless specific hedge accounting and documentation criteria are met (i.e., the instruments are designated and accounted for as hedges). We record the effective portion of the unrealized gains and losses on our derivative financial instruments that are designated as cash flow hedges in accumulated other comprehensive income (loss) in the accompanying consolidated statements of financial position. Any ineffectiveness or excluded portion of a designated cash flow hedge is recognized in income. Upon occurrence of the hedged transaction, the gains and losses on the derivative are recognized in income. Use of Estimates . The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including the recoverability of tangible and intangible assets, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the period. The most significant estimates relate to the recognition of revenues and profits based on the percentage of completion method of accounting for certain fixed-price contracts, the allowance for doubtful accounts, income taxes, assumptions used in valuing stock-based compensation arrangements, valuation of derivative financial instruments and investments, business combinations, intangible assets and other long-lived assets, valuation of goodwill, contingencies and litigation. We evaluate our estimates on a continuous basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The actual amounts may vary from the estimates used in the preparation of the accompanying consolidated financial statements. Risks and Uncertainties . The majority of our global delivery centers and employees are located in India. As a result, we may be subject to certain risks associated with international operations, including risks associated with foreign currency exchange rate fluctuations, risks associated with the application and imposition of protective legislation, immigration laws and regulations relating to import and export or otherwise resulting from foreign policy or the variability of foreign economic or political conditions. Additional risks associated with international operations include difficulties in enforcing intellectual property rights, the burdens of complying with a wide variety of foreign laws, potential geo-political risks, risks associated with terrorist activities and local or cross border conflicts and potentially adverse tax consequences, tariffs, quotas and other barriers. Concentration of Credit Risk . Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and cash equivalents, time deposits, investments in securities, derivative financial instruments and billed and unbilled accounts receivable. We maintain our cash and cash equivalents, investments and derivative financial instruments with high credit quality financial institutions, invest in investment-grade debt securities and limit the amount of credit exposure to any one commercial issuer. Our accounts receivable are dispersed across many customers operating in different industries; therefore, concentration of credit risk is limited. Income Taxes. We provide for income taxes utilizing the asset and liability method of accounting. Under this method, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each balance sheet date, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. If it is determined that it is more likely than not that future tax benefits associated with a deferred income tax asset will not be realized, a valuation allowance is provided. The effect on deferred income tax assets and liabilities of a change in the tax rates is recognized in income in the period that includes the enactment date. Tax benefits earned on employee stock awards in excess of recorded stock-based compensation expense are credited to additional paid-in capital. Our provision for income taxes also includes the impact of provisions established for uncertain income tax positions, as well as the related interest. Earnings Per Share, or EPS. Basic EPS excludes dilution and is computed by dividing earnings available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS includes all potential dilutive common stock in the weighted average shares outstanding. For purposes of computing diluted earnings per share for the years ended December 31, 2016 , 2015 and 2014 , respectively, 3 million, 4 million and 5 million shares were assumed to have been outstanding related to common share equivalents. We exclude from the calculation of diluted EPS options with exercise prices that are greater than the average market price and shares related to stock-based awards whose combined exercise price, unamortized fair value and excess tax benefits were greater in each of those periods than the average market price of our common stock for the period, because their effect would be anti-dilutive. We excluded less than 1 million of anti-dilutive shares in each of 2016 , 2015 and 2014 from our diluted EPS calculation. We include performance stock unit awards in the dilutive potential common shares when they become contingently issuable per the authoritative guidance and exclude the awards when they are not contingently issuable. Recently Adopted Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board, or FASB, issued an update related to the presentation of debt issuance costs. The update requires debt issuance costs, other than costs incurred to secure lines of credit, be presented in the balance sheet as a direct deduction from the carrying value of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by this update. The guidance is effective on a retrospective basis for fiscal years, and interim periods within those years, beginning on or after January 1, 2016. Thus, we have adopted this guidance as of January 1, 2016. We conformed prior period's presentation to current period's presentation on our consolidated statement of financial position. The adoption of this standard impacted financial statement presentation only and had no effect on our financial condition or results of operations. In April 2015, the FASB issued an update to the standard on internal-use software providing guidance to customers in evaluating whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the updated standard requires the customer to account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer is required to account for the arrangement as a service contract. The update is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2016. A company can elect to adopt the update either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. We have adopted this update prospectively beginning January 1, 2016. The adoption of this update did not have a material effect on our financial condition or results of operations. New Accounting Pronouncements. In May 2014, the FASB issued a standard on revenue from contracts with customers. In 2016, the FASB issued five amendments to the new standard. The new standard, as amended, sets forth a single comprehensive model for recognizing and reporting revenues. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenues and cash flows relating to customer contracts. The standard is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2018. Early adoption is permitted but not before periods beginning on or after January 1, 2017. We do not intend to adopt early. The standard allows for two methods of adoption: the full retrospective adoption, which requires the standard to be applied to each prior period presented, or the modified retrospective adoption, which requires the cumulative effect of adoption to be recognized as an adjustment to opening retained earnings in the period of adoption. While we are currently evaluating the effect the new standard will have on our consolidated financial statements and related disclosures, we currently believe the most significant impacts relate to changes in the method used to measure progress on our fixed-price contracts, capitalization and amortization of costs to acquire and fulfill a contract, as well as the timing of revenue recognition on our software license contracts. Due to the complexity of certain of our contracts, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms. In January 2016, the FASB issued an update to the standard on financial instruments. The update significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements. The update is effective for fiscal years, and interim periods within those fiscal years, beginning on or after January 1, 2018. Upon adoption, en |
Internal Investigation and Rela
Internal Investigation and Related Matters | 12 Months Ended |
Dec. 31, 2016 | |
Internal Investigation and Related Matters [Abstract] | |
Internal Investigation and Related Matters | Internal Investigation and Related Matters We are conducting an internal investigation focused on whether certain payments relating to Company-owned facilities in India were made improperly and in possible violation of the U.S. Foreign Corrupt Practices Act, or FCPA, and other applicable laws. In September 2016, we voluntarily notified the U.S. Department of Justice, or DOJ, and Securities and Exchange Commission, or SEC, and are cooperating fully with both agencies. The investigation is being conducted under the oversight of the Audit Committee, with the assistance of outside counsel. To date, the investigation has identified a total of approximately $6 million in payments made between 2010 and 2015 that may have been improper. During the year ended December 31, 2016, we recorded out-of-period corrections related to $4 million of such payments that were previously capitalized that should have been expensed. The recorded corrections resulted in an increase of selling, general and administrative expenses of $4 million, a reduction in depreciation and amortization expense of $1 million, and a reduction in property and equipment, net of $3 million. These out-of-period corrections and the other $2 million in potentially improper payments were not material to any previously issued annual or interim financial statements and are not material to the consolidated financial statements for the year ended December 31, 2016. |
Business Combinations and Equit
Business Combinations and Equity and Cost Method Investments | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations and Equity and Cost Method Investments | Business Combinations and Equity and Cost Method Investments Other than the acquisition of TZ US Parent, Inc., or TriZetto, in 2014, all acquisitions completed during the three years ended December 31, 2016 were not material to our operations, financial position or cash flow. All acquisitions were included in our consolidated financial statements as of the date on which the businesses were acquired. We have allocated the purchase price related to these transactions to tangible and intangible assets and liabilities, including non-deductible goodwill, based on their fair values. We finalize the purchase price allocation as soon as practicable within the measurement period, but in no event later than one year following the date of acquisition. During the three years ended December 31, 2016, the primary items that generated goodwill are synergies expected to be realized between the acquired companies and us and the value of the acquired assembled workforces, neither of which qualify as an amortizable intangible asset. 2016 Business Combinations In 2016, we completed eight business combinations for total initial consideration of approximately $270 million (net of cash acquired). These transactions included (a) an acquisition of a global consulting and technology services company that strengthens and expands our digital capabilities to deliver cloud-based application services, (b) three acquisitions of delivery centers spanning several industries such as oil and gas services, steel and metal products, and banking and insurance to enhance our delivery capabilities across Europe along with multi-year service agreements, (c) an acquisition of tangible property, an assembled workforce and a multi-year service agreement which qualifies as a business combination under accounting guidance, (d) an acquisition of a global consulting company that offers digital innovation, strategy, design and technology services, (e) an acquisition of a digital marketing and customer experience agency that expands our digital business capabilities across Europe, and (f) an acquisition of an Australia-based consulting, business transformation and technology services provider in the insurance industry. Specifically-identified intangible assets and goodwill acquired were as follows: Fair Value Weighted Average Useful Life (in millions) Non-deductible goodwill $ 157 Customer relationship intangible assets $ 199 6.6 years Other intangible assets 1 3.3 years Total identified intangible assets $ 200 6.6 years Supplemental Schedule of Noncash Investing Activities In conjunction with the 2016 acquisitions, liabilities were assumed as follows: Year Ended December 31, 2016 (in millions) Fair value of assets acquired $ 494 Purchase price paid in cash (net of cash acquired) (270 ) Liabilities assumed $ 224 Equity Method Investment In April 2016, we acquired a 49% ownership interest in a strategic consulting firm specializing in the use of human sciences to help business leaders better understand customer behavior for a purchase price of $59 million . We have accounted for this investment as an equity method investment within our consolidated financial statements. In addition, we have the option to buy from the investee, or Call Option, and the investee has the option to sell to us, or Written Put Option, the remaining 51% of the investee at pre-determined purchase prices and contingent on certain performance conditions being satisfied. The Call Option, which has been recorded at cost, and our 49% ownership interest are included within "Equity method investment" in our consolidated statements of financial position. The Written Put Option is included within "Accrued expenses and other current liabilities." If we acquire the remaining 51% of the investee and the investee meets certain performance conditions, we would be obligated to make incremental payments up to a maximum of $100 million, in addition to the purchase price for the remaining 51% of the investee. We did not hold any equity method investments during the years ended December 31, 2015 and 2014. Cost Method Investment In December 2016, we acquired a 5.7% ownership interest in an entity for $5 million. As we do not exercise significant influence or control over the investee, we have accounted for this ownership interest as a cost method investment within our consolidated financial statements. We did not hold any cost method investments during the years ended December 31, 2015 and 2014. 2015 We did not complete any material business combinations in 2015. 2014 - TriZetto Acquisition On November 20, 2014, we completed the acquisition of TriZetto, a private U.S. healthcare information technology company for an aggregate purchase price, after giving effect to various purchase price adjustments, of approximately $2,628 million (net of cash acquired of $170 million). The TriZetto acquisition positioned Cognizant to better serve a wider cross-section of customers with an integrated solution set, combining technology with our healthcare services business. In connection with the acquisition of TriZetto, we entered into a credit agreement with a commercial bank syndicate providing for a $1,000 million unsecured term loan and a $750 million unsecured revolving credit facility. The term loan was used to pay a portion of the cash consideration in connection with the TriZetto acquisition. Our allocation of purchase price as of November 20, 2014 (the closing date of the TriZetto acquisition) to the fair value of assets acquired and liabilities assumed was as follows: Amount (in millions) Cash $ 170 Trade accounts receivable 83 Unbilled accounts receivable 33 Other current assets 11 Property and equipment 124 Identifiable intangible assets 849 Other noncurrent assets 15 Accounts payable (13 ) Deferred revenue (48 ) Accrued expenses and other current liabilities (118 ) Other noncurrent liabilities (55 ) Deferred income tax liabilities, net (209 ) Goodwill 1,956 Total purchase price $ 2,798 We allocated the purchase price to the identifiable assets acquired and liabilities assumed based on their fair values. The excess of purchase price over the estimated fair value of the underlying assets acquired and liabilities assumed was allocated to goodwill. The goodwill is not deductible for tax purposes and has been allocated to our Healthcare reportable segment. The above allocation of the purchase price is based upon our analysis of the fair value of identifiable assets acquired and liabilities assumed as of the acquisition date. We finalized the purchase price allocation within the measurement period ended on November 20, 2015, resulting in no material adjustments. Acquired identifiable intangible assets were measured at fair value determined primarily using the income approach, which required a forecast of all expected future cash flows either through the use of the relief-from-royalty method or the excess earnings method. The fair value of the identifiable intangible assets and their weighted-average useful lives at the time of acquisition were as follows: Fair Value Weighted Average Useful Life (Dollars in millions) Corporate trademark $ 63 Indefinite Product trademarks 21 16.9 years Technology 328 7.7 years Customer relationships 437 15.8 years Total definite lived intangible assets 786 12.4 years Total $ 849 TriZetto’s results of operations have been included in our financial statements for the period subsequent to the completion of the acquisition on November 20, 2014. The following unaudited pro forma information reflecting the combined operating results of Cognizant and TriZetto for the year ended December 31, 2014 assumes the TriZetto acquisition occurred on January 1, 2013. Such pro forma information does not reflect the potential realization of cost savings relating to the integration of TriZetto. Further, the pro forma information is not indicative of the combined results of operations that actually would have occurred had the TriZetto acquisition been completed on January 1, 2013 nor is it intended to be a projection of future operating results. Unaudited Pro Forma Information For the Year Ended December 31, 2014 (in millions) Revenues $ 10,893 Income from operations 1,960 These amounts have been calculated after adjusting for the additional amortization and depreciation expense that would have been recorded assuming the fair value adjustments to finite-lived intangible assets and property, plant and equipment had been applied on January 1, 2013. The pro forma income from operations for the year ended December 31, 2014 was adjusted to exclude $41 million of transaction related professional services costs and $94 million of other costs incurred. Supplemental Schedule of Noncash Investing Activities In conjunction with the TriZetto acquisition, liabilities were assumed as follows: Year Ended December 31, 2014 (in millions) Fair value of assets acquired $ 3,071 Purchase price paid in cash (net of cash acquired) (2,628 ) Liabilities assumed $ 443 2014 - Other Acquisitions During 2014, excluding the acquisition of TriZetto, we completed three business combinations for total cash consideration of approximately $46 million (net of cash acquired). These transactions strengthened our digital business capabilities and expertise to further develop the portfolio of digital solutions and services we offer our customers. As part of these business combinations, we acquired customer relationship assets, assembled workforces, developed technology and other assets. Specifically-identified intangible assets and goodwill acquired were as follows: 2014 Fair Value Weighted Average Useful Life (Dollars in millions) Non-deductible goodwill $ 31 Customer relationship intangible assets $ 12 6.0 years Other intangible assets 4 3.1 years Total identified intangible assets $ 16 5.2 years |
Short-term Investments
Short-term Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Short-term Investments | Short-term Investments Our short-term investments were as follows as of December 31: 2016 2015 (in millions) Trading investment securities: Mutual funds $ 25 $ — Total trading investment securities 25 — Available-for-sale investment securities: U.S. Treasury and agency debt securities 602 527 Corporate and other debt securities 405 361 Certificates of deposit and commercial paper 911 754 Asset-backed securities 231 230 Municipal debt securities 115 121 Mutual funds — 22 Total available-for-sale investment securities 2,264 2,015 Held-to-maturity investment securities: Certificates of deposit and commercial paper 40 — Total held-to-maturity investment securities 40 — Other investments: Time deposits 806 809 Total other investments 806 809 Total short-term investments $ 3,135 $ 2,824 Trading Investment Securities Our trading investment securities consist of a U.S. dollar denominated investment in a fixed income mutual fund. Unrealized losses for the year ended December 31, 2016 were immaterial. As of December 31, 2015, there were no investment securities in our portfolio classified as trading. Available-for-Sale Investment Securities Our available-for-sale investment securities consist of U.S. dollar denominated investments primarily in U.S. Treasury notes, U.S. government agency debt securities, municipal debt securities, non-U.S. government debt securities, U.S. and international corporate bonds, certificates of deposit, commercial paper, debt securities issued by supranational institutions, and asset-backed securities, including Government National Mortgage Association (GNMA) mortgage backed securities and securities backed by auto loans, credit card receivables, and other receivables. Our investment guidelines are to purchase securities which are investment grade at the time of acquisition. We monitor the credit ratings of the securities in our portfolio on an ongoing basis. The amortized cost, gross unrealized gains and losses and fair value of our available-for-sale investment securities were as follows at December 31: 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in millions) U.S. Treasury and agency debt securities $ 605 $ — $ (3 ) $ 602 Corporate and other debt securities 407 — (2 ) 405 Certificates of deposit and commercial paper 910 1 — 911 Asset-backed securities 232 — (1 ) 231 Municipal debt securities 116 — (1 ) 115 Total available-for-sale investment securities $ 2,270 $ 1 $ (7 ) $ 2,264 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in millions) U.S. Treasury and agency debt securities $ 529 $ — $ (2 ) $ 527 Corporate and other debt securities 362 1 (2 ) 361 Certificates of deposit and commercial paper 754 — — 754 Asset-backed securities 231 — (1 ) 230 Municipal debt securities 121 — — 121 Mutual funds 25 — (3 ) 22 Total available-for-sale investment securities $ 2,022 $ 1 $ (8 ) $ 2,015 The fair value and related unrealized losses of our available-for-sale investment securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer were as follows as of December 31: 2016 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) U.S. Treasury and agency debt securities $ 526 $ (3 ) $ — $ — $ 526 $ (3 ) Corporate and other debt securities 342 (2 ) 1 — 343 (2 ) Certificates of deposit and commercial paper 185 — — — 185 — Asset-backed securities 206 (1 ) 1 — 207 (1 ) Municipal debt securities 88 (1 ) 1 — 89 (1 ) Total $ 1,347 $ (7 ) $ 3 $ — $ 1,350 $ (7 ) 2015 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) U.S. Treasury and agency debt securities $ 476 $ (2 ) $ — $ — $ 476 $ (2 ) Corporate and other debt securities 315 (2 ) 3 — 318 (2 ) Certificates of deposit and commercial paper 272 — — — 272 — Asset-backed securities 199 (1 ) 12 — 211 (1 ) Municipal debt securities 56 — — — 56 — Mutual funds — — 21 (3 ) 21 (3 ) Total $ 1,318 $ (5 ) $ 36 $ (3 ) $ 1,354 $ (8 ) The unrealized losses for the above securities as of December 31, 2016 and 2015 are primarily attributable to changes in interest rates. At each reporting date, the Company performs an evaluation of impaired available-for-sale securities to determine if the unrealized losses are other-than-temporary. Based on this evaluation as of June 30, 2016, the Company identified an investment in a mutual fund with a fair value of $22 million to be other-than-temporarily impaired based on management's intent to sell the investment and accordingly, recognized an impairment loss of $3 million in our consolidated statements of operations in the caption "Other, net". During the quarter ending September 30, 2016, the Company sold this investment at a loss of $3 million . As of December 31, 2016 , we do not consider any of the investments to be other-than-temporarily impaired. The gross unrealized gains and losses in the above tables were recorded, net of tax, in "Accumulated other comprehensive income (loss)" in our consolidated statements of financial position. The contractual maturities of our fixed income available-for-sale investment securities as of December 31, 2016 are set forth in the following table: Amortized Cost Fair Value (in millions) Due within one year $ 1,061 $ 1,061 Due after one year up to two years 482 480 Due after two years up to three years 362 360 Due after three years 133 132 Asset-backed securities 232 231 Total available-for-sale investment securities $ 2,270 $ 2,264 Asset-backed securities were excluded from the maturity categories because the actual maturities may differ from the contractual maturities since the underlying receivables may be prepaid without penalties. Further, actual maturities of debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. Proceeds from sales of available-for-sale investment securities and the gross gains and losses that have been included in earnings as a result of those sales were as follows: 2016 2015 2014 (in millions) Proceeds from sales of available-for-sale investment securities $ 3,541 $ 782 $ 1,476 Gross gains $ 5 $ 1 $ 2 Gross losses (4 ) — — Net realized gains on sales of available-for-sale investment securities $ 1 $ 1 $ 2 Held-to-Maturity Investment Securities Our held-to-maturity investment securities consist of Indian rupee denominated investments in certificates of deposit and commercial paper. Our investment guidelines are to purchase securities that are investment grade at the time of acquisition. We monitor the credit ratings of the securities in our portfolio on an ongoing basis. The amortized cost, gross unrealized gains and losses and fair value of held-to-maturity investment securities at December 31, 2016 were as follows: Amortized Unrealized Unrealized Fair (in millions) Certificates of deposit and commercial paper 40 — — 40 Total held-to-maturity investment securities $ 40 $ — $ — $ 40 As of December 31, 2016 , there were no material held-to-maturity investment securities in an unrealized loss position. At each reporting date, the Company performs an evaluation of impaired held-to-maturity securities to determine if the unrealized losses are other-than-temporary. As of December 31, 2016, we do not consider any of the investments to be other-than-temporarily impaired. The contractual maturities of our fixed income held-to-maturity investment securities as of December 31, 2016 are all within one year. As of December 31, 2015, there were no investment securities in our portfolio classified as held-to-maturity. During the year ended December 31, 2016 and 2015, there were no transfers of investments between our trading, available-for-sale and held-to-maturity investment portfolios. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment were as follows as of December 31: Estimated Useful Life (Years) 2016 2015 (in millions) Buildings 30 $ 823 $ 805 Computer equipment and software 3 – 8 849 697 Furniture and equipment 5 – 9 431 384 Land 23 23 Leasehold land lease term 63 63 Capital work-in-progress 169 115 Leasehold improvements Shorter of the lease term or the life of the leased asset 266 263 Sub-total 2,624 2,350 Accumulated depreciation and amortization (1,313 ) (1,079 ) Property and equipment, net $ 1,311 $ 1,271 Depreciation and amortization expense related to property and equipment was $266 million, $233 million, and $172 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The gross amount of property and equipment recorded under capital leases was $37 million and $46 million at December 31, 2016 and 2015, respectively, and primarily related to buildings. Accumulated amortization and amortization expense related to capital lease assets were immaterial for the periods presented. In India, leasehold land is leased by us from the government of India with lease terms ranging up to 99 years . Lease payments are made at the inception of the lease agreement and amortized over the lease term. Amortization expense of leasehold land is immaterial for the periods presented and is included in depreciation and amortization expense in our accompanying consolidated statements of operations. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | Goodwill and Intangible Assets, net Changes in goodwill by our reportable segments were as follows for the years ended December 31, 2016 and 2015 : Segment January 1, 2016 Goodwill Additions Foreign Currency Translation Adjustments December 31, 2016 (in millions) Financial Services $ 203 $ 28 $ (4 ) $ 227 Healthcare 2,076 14 (1 ) 2,089 Manufacturing/Retail/Logistics 67 94 (2 ) 159 Other 59 21 (1 ) 79 Total goodwill $ 2,405 $ 157 $ (8 ) $ 2,554 Segment January 1, 2015 Goodwill Additions Foreign Currency Translation Adjustments December 31, 2015 (in millions) Financial Services $ 205 $ 5 $ (7 ) $ 203 Healthcare 2,080 — (4 ) 2,076 Manufacturing/Retail/Logistics 69 — (2 ) 67 Other 60 — (1 ) 59 Total goodwill $ 2,414 $ 5 $ (14 ) $ 2,405 We have not recognized any impairment losses on our goodwill balances during the three years ended December 31, 2016. Components of intangible assets were as follows as of December 31: 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Customer relationships $ 845 $ (219 ) $ 626 Developed technology 332 (96 ) 236 Indefinite life trademarks 63 — 63 Other 48 (22 ) 26 Total intangible assets $ 1,288 $ (337 ) $ 951 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Customer relationships $ 650 $ (158 ) $ 492 Developed technology 332 (52 ) 280 Indefinite life trademarks 63 — 63 Other 45 (16 ) 29 Total intangible assets $ 1,090 $ (226 ) $ 864 Other than certain trademarks with indefinite lives, our intangible assets have finite lives and as such are subject to amortization. Amortization of intangible assets totaled $113 million for 2016 , $97 million for 2015 and $36 million for 2014 . Of these amounts, during 2016 , 2015 and 2014 , amortization of $20 million , $5 million and $8 million, respectively, relating to customer relationship intangible assets was recorded as a reduction of revenues. These intangible assets are attributed to direct revenue contracts with sellers of acquired businesses. Estimated amortization related to our existing intangible assets for the next five years is as follows: Year Amount (in millions) 2017 $ 124 2018 117 2019 114 2020 107 2021 104 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities were as follows as of December 31: 2016 2015 (in millions) Compensation and benefits $ 1,134 $ 1,272 Income taxes 10 17 Professional fees 99 70 Travel and entertainment 36 30 Customer volume incentives 258 236 Derivative financial instruments 4 11 Other 315 183 Total accrued expenses and other current liabilities $ 1,856 $ 1,819 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt In 2014, we entered into a credit agreement with a commercial bank syndicate, or the Credit Agreement, providing for a $1,000 million unsecured term loan and a $750 million unsecured revolving credit facility. The term loan was used to pay a portion of the cash consideration in connection with the 2014 acquisition TriZetto. The revolving credit facility is available for general corporate purposes. The term loan and the revolving credit facility both mature in November 2019. All notes drawn to date under the revolving credit facility have been less than 90 days in duration. We are required under the Credit Agreement to make scheduled quarterly principal payments on the term loan. On November 5, 2016, or the First Amendment Effective Date, we entered into Amendment No. 1 and Limited Waiver No. 1 to the Credit Agreement, or the First Amendment. The First Amendment modifies the representation and warranty in the Credit Agreement relating to compliance with anti-corruption laws to add an exception for actions, proceedings and other matters relating to our internal investigation into whether certain payments relating to our owned facilities in India were made improperly and in possible violation of the FCPA and other applicable laws, or the Disclosed Matters. Pursuant to the First Amendment, the required lenders waived certain defaults or events of default that may have existed prior to the First Amendment Effective Date due to such representation and warranty proving to have been materially incorrect solely as a result of the Disclosed Matters and due to our failure to provide notice thereof to the administrative agent. Irrespective of the modification and waiver discussed above, we believe we were in compliance with all debt covenants and representations during the year ended December 31, 2016. The Credit Agreement requires interest to be paid at either the base rate or the Eurocurrency rate, plus a margin. The margin over the base rate is 0.00% , and the margin over the Eurocurrency rate ranges from 0.75% to 1.125% , depending on our debt ratings (or, if we have not received debt ratings, from 0.875% to 1.00% , depending on our debt to total stockholders' equity ratio). Under the Credit Agreement, we are required to pay commitment fees on the unused portion of the revolving credit facility, which vary based on our debt ratings (or, if we have not received debt ratings, our debt to total stockholders' equity ratio). At December 31, 2016, the interest rates on the term loan was 1.8% . As the interest rates on our term loan and notes outstanding under the revolving credits facility are variable, the fair value of our debt balances approximates their carrying value as of December 31, 2016 and 2015. The Credit Agreement contains certain negative covenants, including limitations on liens, mergers, consolidations and acquisitions, subsidiary indebtedness and affiliate transactions, as well as certain affirmative covenants. In addition, the Credit Agreement requires us to maintain a debt to total stockholders' equity ratio not in excess of 0.40 to 1.00. Short-term Debt The following summarizes our short-term debt balances as of December 31: 2016 2015 (in millions) Notes outstanding under revolving credit facility $ — $ 350 Term loan - current maturities 81 56 Total short-term debt $ 81 $ 406 Long-term Debt The following summarizes our long-term debt balances as of December 31: 2016 2015 (in millions) Term loan, due 2019 $ 881 $ 937 Less: Current maturities (81 ) (56 ) Deferred financing costs (3 ) (4 ) Long-term debt, net of current maturities $ 797 $ 877 The following represents the schedule of maturities of our long-term debt: Year Amounts (in millions) 2017 81 2018 100 2019 700 $ 881 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before provision for income taxes shown below is based on the geographic location to which such income is attributed for years ended December 31: 2016 2015 2014 (in millions) United States $ 752 $ 739 $ 589 Foreign 1,605 1,425 1,335 Income before provision for income taxes $ 2,357 $ 2,164 $ 1,924 The provision for income taxes consists of the following components for the years ended December 31: 2016 2015 2014 (in millions) Current: Federal and state $ 544 $ 352 $ 261 Foreign 352 314 324 Total current provision 896 666 585 Deferred: Federal and state (44 ) (58 ) (20 ) Foreign (47 ) (68 ) (80 ) Total deferred benefit (91 ) (126 ) (100 ) Total provision for income taxes $ 805 $ 540 $ 485 In May 2016, India enacted the Finance Bill 2016 that, among other things, expanded the applicability of India’s buyback distribution tax to certain share buyback transactions occurring after June 1, 2016. In mid-May, prior to the June 1 effective date of the enactment, our principal operating subsidiary in India repurchased shares from its shareholders, which are non-Indian Cognizant entities, valued at $ 2.8 billion. This transaction, or the India Cash Remittance, was undertaken pursuant to a plan approved by the High Court of Madras and simplified the shareholding structure of our principal operating subsidiary in India. Pursuant to the transaction, our principal Indian operating subsidiary repurchased approximately $ 1.2 billion of the total $ 2.8 billion of shares from its U.S. shareholders, resulting in incremental tax expense, while the remaining $ 1.6 billion was repurchased from its shareholder outside the United States. Net of taxes, the transaction resulted in a remittance of cash to the United States in the amount of $ 1.0 billion. As a result of this transaction, we incurred an incremental 2016 income tax expense of $ 238 million. The reconciliation between our effective income tax rate and the U.S. federal statutory rate were as follows for the years ended December 31: 2016 % 2015 % 2014 % (Dollars in millions) Tax expense, at U.S. federal statutory rate $ 825 35.0 $ 757 35.0 $ 673 35.0 State and local income taxes, net of federal benefit 42 1.8 42 2.0 35 1.8 Non-taxable income for Indian tax purposes (203 ) (8.6 ) (201 ) (9.3 ) (183 ) (9.5 ) Rate differential on foreign earnings (55 ) (2.3 ) (34 ) (1.6 ) (32 ) (1.7 ) India Cash Remittance 238 10.1 — 0.0 — 0.0 Credits and other incentives (57 ) (2.4 ) (23 ) (1.0 ) (16 ) (0.8 ) Other 15 0.6 (1 ) (0.1 ) 8 0.4 Total provision for income taxes $ 805 34.2 $ 540 25.0 $ 485 25.2 The significant components of deferred income tax assets and liabilities recorded on the consolidated statements of financial position were as follows as of December 31: 2016 2015 (in millions) Deferred income tax assets: Net operating losses $ 14 $ 6 Revenue recognition 69 72 Compensation and benefits 165 194 Stock-based compensation 25 26 Minimum alternative tax (MAT) and other credits 274 219 Other accrued expenses 161 111 Other — 3 708 631 Less: valuation allowance (10 ) (10 ) Deferred income tax assets, net 698 621 Deferred income tax liabilities: Depreciation and amortization 266 276 Other 13 — Deferred income tax liabilities 279 276 Net deferred income tax assets $ 419 $ 345 In the table above, certain unrecognized income tax benefits have been netted against available same-jurisdiction deferred income tax carryforward assets. At December 31, 2016 , we had foreign and U.S. net operating loss carryforwards of approximately $34 million and $13 million, respectively. We have recorded valuation allowances on certain foreign net operating loss carryforwards. As of December 31, 2016 and 2015 , deferred income tax assets related to the minimum alternative tax, or MAT, were approximately $286 million and $252 million, respectively. The calculation of the MAT includes all profits realized by our Indian subsidiaries and any MAT paid is creditable against future corporate income tax, subject to certain limitations. Our existing MAT assets expire between March 2018 and March 2027 and we expect to fully utilize them within the applicable 10 -year expiration periods. Our Indian subsidiaries, collectively referred to as Cognizant India, are primarily export-oriented and are eligible for certain income tax holiday benefits granted by the government of India for export activities conducted within Special Economic Zones, or SEZs, for periods of up to 15 years . Our SEZ income tax holiday benefits are currently scheduled to expire in whole or in part during the years 2017 to 2027 and may be extended on a limited basis for an additional five years per unit if certain reinvestment criteria are met. Our Indian profits ineligible for SEZ benefits are subject to corporate income tax at the rate of 34.6% . In addition, all Indian profits, including those generated within SEZs, are subject to the MAT, at the rate of 21.3% . For the years ended December 31, 2016 , 2015 and 2014 , the effect of the income tax holidays granted by the Indian government was to reduce the overall income tax provision and increase net income by approximately $203 million, $201 million and $183 million, respectively, and increase diluted EPS by $0.33 , $0.33 and $0.30 , respectively. Any MAT paid is creditable against future Indian corporate income tax, subject to limitations. We pursue an international strategy that includes expanded infrastructure investments in India and geographic expansion outside the United States. Therefore, other than foreign earnings for which we have already accrued U.S. taxes, we do not intend to repatriate our foreign earnings as such earnings are deemed to be indefinitely reinvested outside the United States. As of December 31, 2016 , the amount of unrepatriated Indian earnings and total foreign earnings (including unrepatriated Indian earnings) upon which no incremental U.S. taxes have been recorded is approximately $5,298 million and $7,930 million, respectively. If such earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, we will accrue the applicable amount of taxes associated with such earnings at that time. Due to the various methods by which such earnings could be repatriated in the future, it is not practicable to determine the amount of applicable taxes that would result from such repatriation. The India Cash Remittance did not impact our assertion that our foreign earnings are indefinitely reinvested outside the United States. In reaching this conclusion, we considered the one-time nature of the India Cash Remittance, our capital needs in the United States, the available sources of liquidity in the United States and our growth plans outside the United States. Thus, other than amounts affected by the India Cash Remittance and amounts for which we have already accrued U.S. taxes, our foreign earnings are deemed to be indefinitely reinvested outside the United States and we have not provided for U.S. federal income taxes on such earnings. We conduct business globally and file income tax returns in the United States, including federal and state, as well as various foreign jurisdictions. Tax years that remain subject to examination by the Internal Revenue Service are 2012 and onward, and years that remain subject to examination by state authorities vary by state. Years under examination by foreign tax authorities are 2001 and onward. We record incremental tax expense, based upon the more-likely-than-not standard, for any uncertain tax positions. In addition, when applicable, we adjust the previously recorded income tax expense to reflect examination results when the position is effectively settled or otherwise resolved. Our ongoing evaluations of the more-likely-than-not outcomes of the examinations and related tax positions require judgment and can result in adjustments that increase or decrease our effective income tax rate, as well as impact our operating results. The specific timing of when the resolution of each tax position will be reached is uncertain. Changes in unrecognized income tax benefits were as follows for the years ended December 31: 2016 2015 (in millions) Balance, beginning of year $ 139 $ 136 Additions based on tax positions related to the current year 11 21 Additions for tax positions of prior years 19 6 Additions for tax positions of acquired subsidiaries — — Reductions for tax positions due to lapse of statutes of limitations (15 ) (23 ) Reductions for tax positions of prior years (1 ) — Settlements — — Foreign currency exchange movement (2 ) (1 ) Balance, end of year $ 151 $ 139 At December 31, 2016 , the entire balance of unrecognized income tax benefits would affect our effective income tax rate, if recognized. While the Company believes uncertain tax positions may be settled or resolved within the next twelve months, it is difficult to estimate the income tax impact of these potential resolutions at this time. We recognize accrued interest and any penalties associated with uncertain tax positions as part of our provision for income taxes. The total amount of accrued interest and penalties at December 31, 2016 and 2015 was approximately $7 million and $11 million, respectively, and relates to U.S. and foreign tax matters. The amounts of interest and penalties expensed in 2016 , 2015 and 2014 were immaterial. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, we use foreign exchange forward contracts to manage foreign currency exchange rate risk. The estimated fair value of the foreign exchange forward contracts considers the following items: discount rate, timing and amount of cash flow and counterparty credit risk. Derivatives may give rise to credit risks from the possible non-performance by counterparties. Credit risk is generally limited to the fair value of those contracts that are favorable to us. We have limited our credit risk by entering into derivative transactions only with highly-rated financial institutions, limiting the amount of credit exposure with any one financial institution and conducting ongoing evaluation of the creditworthiness of the financial institutions with which we do business. In addition, all the assets and liabilities related to our foreign exchange forward contracts set forth in the below table are subject to International Swaps and Derivatives Association, or ISDA, master netting arrangements or other similar agreements with each individual counterparty. These master netting arrangements generally provide for net settlement of all outstanding contracts with the counterparty in the case of an event of default or a termination event. We have presented all the assets and liabilities related to our foreign exchange forward contracts on a gross basis, with no offsets, in our accompanying consolidated statements of financial position. There is no financial collateral (including cash collateral) posted or received by us related to our foreign exchange forward contracts. The following table provides information on the location and fair values of derivative financial instruments included in our consolidated statement of financial position as of December 31: 2016 2015 Designation of Derivatives Location on Statement of Financial Position Assets Liabilities Assets Liabilities (in millions) Foreign exchange forward contracts - Designated as cash flow hedging instruments Other current assets $ 34 $ — $ 7 $ — Other noncurrent assets 17 — 2 — Accrued expenses and other current liabilities — — — 10 Other noncurrent liabilities — — — 14 Total 51 — 9 24 Foreign exchange forward contracts - Not designated as cash flow hedging instruments Accrued expenses and other current liabilities — 4 — 1 Total — 4 — 1 Total $ 51 $ 4 $ 9 $ 25 Cash Flow Hedges We have entered into a series of foreign exchange forward contracts that are designated as cash flow hedges of Indian rupee denominated payments in India. These contracts are intended to partially offset the impact of movement of exchange rates on future operating costs and are scheduled to mature each month during 2017 and 2018 . Under these contracts, we purchase Indian rupees and sell U.S. dollars. The changes in fair value of these contracts are initially reported in the caption “Accumulated other comprehensive income (loss)” in our consolidated statements of financial position and are subsequently reclassified to earnings in the same period the forecasted Indian rupee denominated payments are recorded in earnings. As of December 31, 2016 , we estimate that $26 million, net of tax, of the net gains related to derivatives designated as cash flow hedges recorded in accumulated other comprehensive income (loss) is expected to be reclassified into earnings within the next 12 months. The notional value of our outstanding contracts by year of maturity and the net unrealized gains (loss) included in accumulated other comprehensive income (loss) for such contracts were as follows as of December 31: 2016 2015 (in millions) 2016 — 1,215 2017 1,320 900 2018 1,020 330 Total notional value of contracts outstanding $ 2,340 $ 2,445 Net unrealized gains (losses) included in accumulated other comprehensive income (loss), net of taxes $ 39 $ (12 ) Upon settlement or maturity of the cash flow hedge contracts, we record the related gain or loss, based on our designation at the commencement of the contract, with the hedged Indian rupee denominated expense reported within cost of revenues and selling, general and administrative expenses. Hedge ineffectiveness was immaterial for all periods presented. The following table provides information on the location and amounts of pre-tax (losses) on our cash flow hedges for the year ended December 31: Change in Derivative Gains/Losses Recognized in Accumulated Other Comprehensive Income (Loss) (effective portion) Location of Net Derivative Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) Net Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) 2016 2015 2016 2015 (in millions) Foreign exchange forward contracts - Designated as cash flow hedging instruments $ 83 $ 17 Cost of revenues $ 14 $ (59 ) Selling, general and administrative expenses 3 (12 ) Total $ 17 $ (71 ) The activity related to the change in net unrealized gains (losses) on our cash flow hedges included in accumulated other comprehensive income (loss) is presented in Note 12. Other Derivatives We use foreign exchange forward contracts, which have not been designated as hedges, to hedge balance sheet exposure to certain monetary assets and liabilities denominated in currencies other than the functional currency of our foreign subsidiaries. We entered into a series of foreign exchange forward contracts that are primarily to purchase U.S. dollars and sell Indian rupees, Canadian dollars and Euros, and are scheduled to mature in 2017. Realized gains or losses and changes in the estimated fair value of these derivative financial instruments are reported in the caption "Foreign currency exchange gains (losses), net" in our consolidated statements of operations. Additional information related to our outstanding foreign exchange forward contracts not designated as hedging instruments is as follows as of December 31: 2016 2015 Notional Market Value Notional Market Value (in millions) Contracts outstanding $ 213 $ (4 ) $ 166 $ (1 ) The following table provides information on the location and amounts of realized and unrealized pre-tax gains and losses on our other derivative financial instruments for the year ended December 31: Location of Net Gains (Losses) on Derivative Instruments Amount of Net Gains (Losses) on Derivative Instruments 2016 2015 (in millions) Foreign exchange forward contracts - Not designated as hedging instruments Foreign currency exchange gains (losses), net $ (3 ) $ — The related cash flow impacts of all of our derivative activities are reflected as cash flows from operating activities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure our cash equivalents, investments and foreign exchange forward contracts at fair value. The authoritative guidance defines fair value as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. • Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of December 31, 2016 : Level 1 Level 2 Level 3 Total (in millions) Cash equivalents: Money market funds $ 624 $ — $ — $ 624 Commercial paper — 131 — 131 Total cash equivalents 624 131 — 755 Short-term investments: Time deposits — 806 — 806 Available-for-sale investment securities: U.S. Treasury and agency debt securities 558 44 — 602 Corporate and other debt securities — 405 — 405 Certificates of deposit and commercial paper — 911 — 911 Asset-backed securities — 231 — 231 Municipal debt securities — 115 — 115 Total available-for-sale investment securities 558 1,706 — 2,264 Held-to-maturity investment securities: Certificates of deposit and commercial paper — 40 — 40 Total held-to-maturity investment securities — 40 — 40 Total short-term investments (1) 558 2,552 — 3,110 Derivative financial instruments - foreign exchange forward contracts: Other current assets — 34 — 34 Accrued expenses and other current liabilities — (4 ) — (4 ) Other noncurrent assets — 17 — 17 Other noncurrent liabilities — — — — Total $ 1,182 $ 2,730 $ — $ 3,912 ________________ (1) Excludes trading securities in mutual funds valued at $25 million based on the net asset value, or NAV, of the fund at December 31, 2016. The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of December 31, 2015 : Level 1 Level 2 Level 3 Total (in millions) Cash equivalents: Money market funds $ 496 $ — $ — $ 496 Total cash equivalents 496 — — 496 Short-term investments: Time deposits — 809 — 809 Available-for-sale investment securities: U.S. Treasury and agency debt securities 464 63 — 527 Corporate and other debt securities 361 — 361 Certificates of deposit and commercial paper 754 — 754 Asset-backed securities 230 — 230 Municipal debt securities 121 — 121 Total available-for-sale investment securities (1) 464 1,529 — 1,993 Total short-term investments (1) 464 2,338 — 2,802 Derivative financial instruments - foreign exchange forward contracts: Other current assets — 7 — 7 Accrued expenses and other current liabilities — (11 ) — (11 ) Other noncurrent assets — 2 — 2 Other noncurrent liabilities — (14 ) — (14 ) Total $ 960 $ 2,322 $ — $ 3,282 ________________ (1) Excludes mutual funds valued at $22 million based on the net asset value, or NAV, of the fund at December 31, 2015. We measure the fair value of money market funds and U.S. Treasury securities based on quoted prices in active markets for identical assets and therefore classify these assets as Level 1. The fair value of commercial paper, certificates of deposit, U.S. government agency securities, municipal debt securities, U.S. and international corporate bonds and foreign government debt securities is measured based on relevant trade data, dealer quotes, or model driven valuations using significant inputs derived from or corroborated by observable market data, such as yield curves and credit spreads. We measure the fair value of our asset-backed securities using model driven valuations based on significant inputs derived from or corroborated by observable market data such as dealer quotes, available trade information, spread data, current market assumptions on prepayment speeds and defaults and historical data on deal collateral performance. The carrying value of the time deposits approximated fair value as of December 31, 2016 and 2015 . We estimate the fair value of each foreign exchange forward contract by using a present value of expected cash flows model. This model calculates the difference between the current market forward price and the contracted forward price for each foreign exchange contract and applies the difference in the rates to each outstanding contract. The market forward rates include a discount and credit risk factor. The amounts are aggregated by type of contract and maturity. During the years ended December 31, 2016 , 2015 and 2014 , there were no transfers among Level 1, Level 2 or Level 3 financial assets and liabilities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component were as follows for the year ended December 31, 2016 : 2016 Before Tax Amount Tax Effect Net of Tax Amount (in millions) Foreign currency translation adjustments: Beginning balance $ (90 ) $ — $ (90 ) Change in foreign currency translation adjustments (59 ) — (59 ) Ending balance $ (149 ) $ — $ (149 ) Unrealized (losses) on available-for-sale investment securities: Beginning balance $ (7 ) $ 3 $ (4 ) Net unrealized gains arising during the period 5 (2 ) 3 Reclassification of net (gains) to Other, net (4 ) 1 (3 ) Net change 1 (1 ) — Ending balance $ (6 ) $ 2 $ (4 ) Unrealized gains (losses) on cash flow hedges: Beginning balance $ (15 ) $ 3 $ (12 ) Unrealized gains arising during the period 83 (19 ) 64 Reclassifications of net (gains) to: Cost of revenues (14 ) 3 (11 ) Selling, general and administrative expenses (3 ) 1 (2 ) Net change 66 (15 ) 51 Ending balance $ 51 $ (12 ) $ 39 Accumulated other comprehensive income (loss): Beginning balance $ (112 ) $ 6 $ (106 ) Other comprehensive income (loss) 8 (16 ) (8 ) Ending balance $ (104 ) $ (10 ) $ (114 ) Changes in accumulated other comprehensive income (loss) by component were as follows for the years ended December 31, 2015 and 2014 : 2015 2014 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Tax Net of Tax (in millions) Foreign currency translation adjustments: Beginning balance $ (35 ) $ — $ (35 ) $ 24 $ — $ 24 Change in foreign currency translation adjustments (55 ) — (55 ) (59 ) — (59 ) Ending balance $ (90 ) $ — $ (90 ) $ (35 ) $ — $ (35 ) Unrealized (losses) on available-for-sale investment securities: Beginning balance $ (2 ) $ 1 $ (1 ) $ — $ — $ — Net unrealized (losses) arising during the period (4 ) 1 (3 ) — — — Reclassification of net (gains) to Other, net (1 ) 1 — (2 ) 1 (1 ) Net change (5 ) 2 (3 ) (2 ) 1 (1 ) Ending balance $ (7 ) $ 3 $ (4 ) $ (2 ) $ 1 $ (1 ) Unrealized (losses) on cash flow hedges: Beginning balance $ (103 ) $ 16 $ (87 ) $ (355 ) $ 55 $ (300 ) Unrealized gains arising during the period 17 — 17 116 (18 ) 98 Reclassifications of net losses to: Cost of revenues 59 (11 ) 48 113 (17 ) 96 Selling, general and administrative expenses 12 (2 ) 10 23 (4 ) 19 Net change 88 (13 ) 75 252 (39 ) 213 Ending balance $ (15 ) $ 3 $ (12 ) $ (103 ) $ 16 $ (87 ) Accumulated other comprehensive income (loss): Beginning balance $ (140 ) $ 17 $ (123 ) $ (331 ) $ 55 $ (276 ) Other comprehensive income (loss) 28 (11 ) 17 191 (38 ) 153 Ending balance $ (112 ) $ 6 $ (106 ) $ (140 ) $ 17 $ (123 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We lease office space and equipment under operating leases, which expire at various dates through the year 2028. Certain leases contain renewal provisions and generally require us to pay utilities, insurance, taxes, and other operating expenses. Future minimum rental payments on our operating leases as of December 31, 2016 are as follows: Operating lease obligation (in millions) 2017 $ 159 2018 136 2019 126 2020 105 2021 76 Thereafter 173 Total minimum lease payments $ 775 Rental expense totaled $227 million, $212 million and $191 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Future minimum rental payments on our capital leases as of December 31, 2016 are as follows: Capital lease obligation (in millions) 2017 $ 3 2018 4 2019 4 2020 4 2021 4 Thereafter 28 Total minimum lease payments 47 Interest (13 ) Present value of minimum lease payments $ 34 As of December 31, 2016 , we had outstanding fixed capital commitments of approximately $176 million related to our India real estate development program to build new Company-owned state-of-the-art technology global delivery centers. We are involved in various claims and legal actions arising in the ordinary course of business. We accrue a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, we do not record a liability, but instead disclose the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. In the opinion of management, the outcome of any existing claims and legal or regulatory proceedings, other than the specific matters described below, if decided adversely, is not expected to have a material adverse effect on our business, financial condition, results of operations and cash flows. On September 30, 2016, we disclosed that we are conducting an internal investigation focused on whether certain payments relating to Company-owned facilities in India were made improperly and in possible violation of the FCPA, and other applicable laws. In September 2016, we voluntarily notified the DOJ and SEC and are cooperating fully with both agencies. The investigation is being conducted under the oversight of the Audit Committee, with the assistance of outside counsel. To date, the investigation has identified a total of approximately $6 million in payments made between 2010 and 2015 that may have been recorded improperly. See Note 2 to our consolidated financial statements. On October 5, 2016 and October 27, 2016, two putative securities class action complaints were filed in the United States District Court for the District of New Jersey on behalf of a putative class of stockholders who purchased our common stock during the period between February 25, 2016 and September 30, 2016. On November 18, 2016, a different plaintiff filed a third putative securities class action complaint in the United States District Court for the District of New Jersey on behalf of a putative class of stockholders who purchased our common stock during the period between February 27, 2015 and September 30, 2016. The complaints collectively name us and certain of our current and former officers as defendants and allege violations of the Securities Exchange Act of 1934, as amended, based on allegedly false or misleading statements related to potential violations of the FCPA, our business, prospects and operations, and the effectiveness of our internal control over financial reporting and our disclosure controls and procedures. The plaintiffs collectively seek awards of compensatory damages, among other relief, and their costs and attorneys’ and experts’ fees. The United States District Court for the District of New Jersey issued an order, dated February 3, 2017, consolidating the three putative securities class actions. On October 31, 2016, November 15, 2016, and November 18, 2016, three putative shareholder derivative complaints were filed in New Jersey Superior Court, Bergen County, naming us, all of our directors and certain of our current and former officers as defendants. On January 24, 2017, the New Jersey Superior Court, Bergen County, consolidated the three putative shareholder derivative actions filed in that court. The complaints assert claims for breach of fiduciary duty, corporate waste, unjust enrichment, abuse of control, mismanagement, and/or insider selling by defendants. On February 22, 2017, a fourth putative shareholder derivative complaint asserting similar claims was filed in the United States District Court for the District of New Jersey, naming us and certain of our directors as defendants. The complaints allege among other things that certain of our public disclosures were false and misleading by failing to disclose that payments allegedly in violation of the FCPA had been made and by asserting that management had determined that our internal controls were effective. The plaintiffs seek awards of compensatory damages and restitution to us as a result of the alleged violations and their costs and attorneys’ fees, experts’ fees, and other litigation expenses, among other relief. We are presently unable to predict the duration, scope or result of the internal investigation, the related consolidated putative securities class action, the consolidated putative shareholder derivative action or any other related lawsuit, and any investigations by the DOJ or the SEC, including whether either agency will commence any legal action. As such, we are presently unable to develop a reasonable estimate of a possible loss or range of losses, if any, and thus have not recorded an accrual related to these matters. The DOJ and the SEC have a broad range of civil and criminal sanctions under the FCPA and other laws and regulations including injunctive relief, disgorgement, fines, penalties, modifications to business practices including the termination or modification of existing business relationships and the imposition of compliance programs and the retention of a monitor to oversee compliance with the FCPA. We expect to incur additional expenses related to fines or to remedial measures. Furthermore, while the Company intends to defend the lawsuits vigorously, these lawsuits and any other lawsuits are subject to inherent uncertainties, the actual cost of such litigation will depend upon many unknown factors and the outcome of the litigation is necessarily uncertain. As such, these matters could have a material adverse effect on our business, annual or interim results of operations, cash flows or our financial condition. Many of our engagements involve projects that are critical to the operations of our customers’ business and provide benefits that are difficult to quantify. Any failure in a customer’s systems or our failure to meet our contractual obligations to our customers, including any breach involving a customer’s confidential information or sensitive data, or our obligations under applicable laws or regulations could result in a claim for substantial damages against us, regardless of our responsibility for such failure. Although we attempt to contractually limit our liability for damages arising from negligent acts, errors, mistakes, or omissions in rendering our services, there can be no assurance that the limitations of liability set forth in our contracts will be enforceable in all instances or will otherwise protect us from liability for damages. Although we have general liability insurance coverage, including coverage for errors or omissions, there can be no assurance that such coverage will cover all types of claims, continue to be available on reasonable terms or will be available in sufficient amounts to cover one or more large claims, or that the insurer will not disclaim coverage as to any future claim. The successful assertion of one or more large claims against us that exceed or are not covered by our insurance coverage or changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, could have a material adverse effect on our business, results of operations, financial condition and cash flows. In the normal course of business and in conjunction with certain customer engagements, we have entered into contractual arrangements through which we may be obligated to indemnify customers or other parties with whom we conduct business with respect to certain matters. These arrangements can include provisions whereby we agree to hold the indemnified party and certain of their affiliated entities harmless with respect to third-party claims related to such matters as our breach of certain representations or covenants, our intellectual property infringement, our gross negligence or willful misconduct or certain other claims made against certain parties. Payments by us under any of these arrangements are generally conditioned on the customer making a claim and providing us with full control over the defense and settlement of such claim. It is not possible to determine the maximum potential liability under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Historically, we have not made payments under these indemnification agreements and therefore they have not had any impact on our operating results, financial position, or cash flows. However, if events arise requiring us to make payment for indemnification claims under our indemnification obligations in contracts we have entered, such payments could have material impact on our business, results of operations, financial condition and cash flows. The Company has indemnification and expense advancement obligations pursuant to its Bylaws and indemnification agreements with respect to certain current and former members of senior management and the Company’s directors. In connection with the ongoing internal investigation, the Company has received requests under such indemnification agreements and its Bylaws to provide advances of funds for legal fees and other expenses, and expects additional requests in connection with the investigation and related litigation. The Company has not recorded any liability for these matters as of December 31, 2016 as it cannot estimate the ultimate outcome at this time but has expensed advances made through December 31, 2016. The Company has maintained directors and officers insurance, from which a portion of these expenses may be recoverable, though we have not recorded an insurance receivable as of December 31, 2016. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2016 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits We contribute to defined contribution plans in the United States and Europe, including 401(k) savings and supplemental retirement plans in the United States. Total expenses for Company contributions to these plans were $76 million, $62 million and $45 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. We maintain employee benefit plans that cover substantially all India-based employees. The employees’ provident fund, pension and family pension plans are statutorily defined contribution retirement benefit plans. Under the plans, employees contribute up to 12.0% of their base compensation, which is matched by an equal contribution by the Company. For these plans, we recognized a contribution expense of $79 million, $71 million and $63 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. We also maintain a gratuity plan in India that is a statutory post-employment benefit plan providing defined lump sum benefits. We make annual contributions to the employees’ gratuity fund established with a government-owned insurance corporation to fund a portion of the estimated obligation. Accordingly, our liability for the gratuity plan reflects the undiscounted benefit obligation payable as of the balance sheet date which was based upon the employees’ salary and years of service. As of December 31, 2016 and 2015 , the amount accrued under the gratuity plan was $106 million and $98 million, which is net of fund assets of $103 million and $78 million, respectively. Expense recognized by us was $41 million, $30 million and $36 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans On June 5, 2009, our stockholders approved the adoption of the Cognizant Technology Solutions Corporation 2009 Incentive Compensation Plan (as amended and restated, the “2009 Incentive Plan”). Under the 2009 Incentive Plan, 48 million shares of our Class A common stock were reserved for issuance. The 2009 Incentive Plan is the successor plan to our Amended and Restated 1999 Incentive Compensation Plan which terminated on April 13, 2009 in accordance with its terms, our Amended and Restated Non-Employee Directors’ Stock Option Plan and our Amended and Restated Key Employees’ Stock Option Plan which terminated in July 2009 (collectively, the “Predecessor Plans”). The 2009 Incentive Plan will not affect any options or stock issuances outstanding under the Predecessor Plans. No further awards will be made under the Predecessor Plans. As of December 31, 2016 , we have 7 million shares available for grant under the 2009 Incentive Plan. Stock options granted to employees under our plans have a life ranging from seven to ten years , vest proportionally over four years , unless specified otherwise, and have an exercise price equal to the fair market value of the common stock on the date of grant. Grants to non-employee directors vest proportionally over two years . Stock-based compensation expense relating to stock options is recognized on a straight-line basis over the requisite service period. Restricted stock units vest proportionately in quarterly or annual installments over three to four years . Stock-based compensation expense relating to restricted stock units is recognized on a straight-line basis over the requisite service period. We granted performance stock units that vest over periods ranging from one to three years to employees, including our executive officers. The vesting of performance stock units is contingent on both meeting certain financial performance targets and continued service. Stock-based compensation costs for performance stock units that vest proportionally are recognized on a graded-vesting basis over the vesting period based on the most probable outcome of the performance conditions. If the minimum performance targets are not met, no compensation cost is recognized and any recognized compensation cost is reversed. The Company’s 2004 Employee Stock Purchase Plan (the “Purchase Plan”), as amended in 2013, provides for the issuance of up to 28 million shares of Class A common stock to eligible employees. The Purchase Plan provides for eligible employees to purchase whole shares of Class A common stock at a price of 90% of the lesser of: (a) the fair market value of a share of Class A common stock on the first date of the purchase period or (b) the fair market value of a share of Class A common stock on the last date of the purchase period. Stock-based compensation expense for the Purchase Plan is recognized over the vesting period of three months on a straight-line basis. As of December 31, 2016 , we had 5 million shares available for future grants and issuances under the Purchase Plan. The allocation of total stock-based compensation expense between cost of revenues and selling, general and administrative expenses as well as the related income tax benefit were as follows for the three years ended December 31: 2016 2015 2014 (in millions) Cost of revenues $ 53 $ 39 $ 27 Selling, general and administrative expenses 164 153 108 Total stock-based compensation expense $ 217 $ 192 $ 135 Income tax benefit $ 49 $ 46 $ 31 We estimate the fair value of each stock option granted using the Black-Scholes option-pricing model. For the years ended December 31, 2016 , 2015 and 2014 , expected volatility was calculated using implied market volatilities. In addition, the expected term, which represents the period of time, measured from the grant date, that vested options are expected to be outstanding, was derived by incorporating exercise and post-vest termination assumptions, based on historical data, in a Monte Carlo simulation model. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant. We have not historically paid any dividends and, as of each stock option grant date, did not anticipate doing so in the future. Forfeiture assumptions used to recognize stock-based compensation expense are based on an analysis of historical data. The fair values of option grants, including the Purchase Plan, were estimated at the date of grant during the years ended December 31, 2016 , 2015 , and 2014 based upon the following assumptions and were as follows: 2016 2015 2014 Dividend yield 0 % 0 % 0 % Weighted average volatility factor: Stock options 28.3 % 28.1 % 28.7 % Purchase Plan 26.5 % 25.8 % 24.9 % Weighted average expected life (in years): Stock options 4.46 4.29 3.92 Purchase Plan 0.25 0.25 0.25 Weighted average risk-free interest rate: Stock options 1.1 % 1.4 % 1.3 % Purchase Plan 0.4 % 0.1 % 0 % Weighted average grant date fair value: Stock options $ 15.17 $ 16.53 $ 11.81 Purchase Plan $ 8.74 $ 9.04 $ 7.29 During the year ended December 31, 2016 , we issued 3 million shares of Class A common stock under the Purchase Plan with a total vested fair value of approximately $26 million. A summary of the activity for stock options granted under our stock-based compensation plans as of December 31, 2016 and changes during the year then ended is presented below: Number of Options (in millions) Weighted Average Exercise Price (in dollars) Weighted Average Remaining Life (in years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2016 4.2 $ 19.09 Granted 0.1 59.64 Exercised (1.9 ) 18.07 Cancelled — — Expired — — Outstanding at December 31, 2016 2.4 $ 21.08 1.6 $ 84 Vested and expected to vest at December 31, 2016 2.4 $ 20.95 1.5 $ 84 Exercisable at December 31, 2016 2.3 $ 19.36 1.3 $ 84 As of December 31, 2016 , $1 million of total remaining unrecognized stock-based compensation cost related to stock options is expected to be recognized over the weighted-average remaining requisite service period of 1.1 years . The total intrinsic value of options exercised was $74 million, $59 million and $58 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The fair value of performance stock units and restricted stock units is determined based on the number of stock units granted and the quoted price of our stock at date of grant. A summary of the activity for performance stock units granted under our stock-based compensation plans as of December 31, 2016 and changes during the year then ended is presented below. The presentation reflects the number of performance stock units at the maximum performance milestones. Number of Units (in millions) Weighted Average Grant Date Fair Value (in dollars) Unvested at January 1, 2016 2.5 $ 55.69 Granted 2.2 55.08 Vested (1.0 ) 51.34 Forfeited (0.5 ) 55.12 Reduction due to the achievement of lower than maximum performance milestones (0.5 ) 64.38 Unvested at December 31, 2016 2.7 $ 55.24 As of December 31, 2016 , $47 million of total remaining unrecognized stock-based compensation cost related to performance stock units is expected to be recognized over the weighted-average remaining requisite service period of 1.2 years. A summary of the activity for restricted stock units granted under our stock-based compensation plans as of December 31, 2016 and changes during the year then ended is presented below: Number of Units (in millions) Weighted Average Grant Date Fair Value (in dollars) Unvested at January 1, 2016 4.7 $ 55.50 Granted 2.9 55.55 Vested (2.4 ) 53.37 Forfeited (0.4 ) 57.03 Unvested at December 31, 2016 4.8 $ 56.45 As of December 31, 2016 , $222 million of total remaining unrecognized stock-based compensation cost related to restricted stock units is expected to be recognized over the weighted-average remaining requisite service period of 2.0 years. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Brackett B. Denniston, III, has been the Interim General Counsel and an executive officer of the Company since December 2016. Steven Schwartz, our former Chief Legal and Corporate Affairs Officer, resigned in November 2016. Mr. Denniston is also a Senior Counsel at the law firm of Goodwin Procter LLP, or Goodwin. During the year ended December 31, 2016, Goodwin performed legal services for the Company for which it earned approximately $ 2 million in the aggregate. Goodwin has continued to perform such legal services during 2017. Goodwin did not perform any services for the Company during the years ended December 31, 2015 and 2014. The provision of legal services by Goodwin was reviewed and approved by our Audit Committee at the time Mr. Denniston was appointed an executive officer of the Company. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Segment Information | Segment Information Our reportable segments are: • Financial Services, which includes customers providing banking/transaction processing, capital markets and insurance services; • Healthcare, which includes healthcare providers and payers as well as life sciences customers, including pharmaceutical, biotech and medical device companies; • Manufacturing/Retail/Logistics, which includes manufacturers, retailers, travel and other hospitality customers, as well as customers providing logistics services; and • Other, which is an aggregation of industry segments each of which, individually, represents less than 10% of consolidated revenues and segment operating profit. The Other reportable segment includes our information, media and entertainment services, communications and high technology operating segments. Our sales managers, account executives, account managers and project teams are aligned in accordance with the specific industries they serve. Our chief operating decision maker evaluates the Company’s performance and allocates resources based on segment revenues and operating profit. Segment operating profit is defined as income from operations before unallocated costs. Generally, operating expenses for each operating segment have similar characteristics and are subject to the same factors, pressures and challenges. However, the economic environment and its effects on industries served by our operating segments may affect revenues and operating expenses to differing degrees. Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as a per seat charge for use of the global delivery centers. Certain selling, general and administrative expenses, excess or shortfall of incentive compensation for delivery personnel as compared to target, stock-based compensation expense, a portion of depreciation and amortization and the impact of the settlements of our cash flow hedges are not allocated to individual segments in internal management reports used by the chief operating decision maker. Accordingly, such expenses are excluded from segment operating profit and are separately disclosed as “unallocated” and adjusted only against our total income from operations. Additionally, management has determined that it is not practical to allocate identifiable assets by segment, since such assets are used interchangeably among the segments. Revenues from external customers and segment operating profit, before unallocated expenses, for the Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other reportable segments were as follows: 2016 2015 2014 (in millions) Revenues: Financial Services $ 5,366 $ 5,003 $ 4,286 Healthcare 3,871 3,668 2,689 Manufacturing/Retail/Logistics 2,660 2,344 2,094 Other 1,590 1,401 1,194 Total revenues $ 13,487 $ 12,416 $ 10,263 Segment Operating Profit: Financial Services $ 1,707 $ 1,642 $ 1,320 Healthcare 1,153 1,200 851 Manufacturing/Retail/Logistics 851 803 686 Other 488 453 392 Total segment operating profit 4,199 4,098 3,249 Less: unallocated costs 1,910 1,956 1,364 Income from operations $ 2,289 $ 2,142 $ 1,885 Geographic Area Information Revenues and long-lived assets, by geographic area, were as follows: 2016 2015 2014 (in millions) Revenues: (1) North America (2) $ 10,546 $ 9,759 $ 7,880 United Kingdom 1,176 1,188 1,099 Rest of Europe 969 820 785 Europe - Total 2,145 2,008 1,884 Rest of World (3) 796 649 499 Total $ 13,487 $ 12,416 $ 10,263 2016 2015 2014 (in millions) Long-lived Assets: (4) North America (2) $ 279 $ 242 $ 188 Europe 52 32 30 Rest of World (3)(5) 980 997 1,029 Total $ 1,311 $ 1,271 $ 1,247 _____________ (1) Revenues are attributed to regions based upon customer location. (2) Substantially all relates to operations in the United States. (3) Includes our operations in Asia Pacific, the Middle East and Latin America. (4) Long-lived assets include property and equipment, net of accumulated depreciation and amortization. (5) Substantially all of these long-lived assets relate to our operations in India. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Summarized quarterly results for the two years ended December 31, 2016 are as follows: Three Months Ended 2016 March 31 June 30 September 30 December 31 Full Year (in millions, except per share data) Revenues $ 3,202 $ 3,370 $ 3,453 $ 3,462 $ 13,487 Cost of revenues (exclusive of depreciation and amortization expense shown separately below) 1,915 2,038 2,077 2,078 8,108 Selling, general and administrative expenses 646 654 701 730 2,731 Depreciation and amortization expense 87 87 92 93 359 Income from operations 554 591 583 561 2,289 Net income 441 252 444 416 1,553 Basic EPS (1) $ 0.73 $ 0.42 $ 0.73 $ 0.69 $ 2.56 Diluted EPS (1) $ 0.72 $ 0.41 $ 0.73 $ 0.68 $ 2.55 Three Months Ended 2015 March 31 June 30 September 30 December 31 Full Year (in millions, except per share data) Revenues $ 2,911 $ 3,085 $ 3,187 $ 3,233 $ 12,416 Cost of revenues (exclusive of depreciation and amortization expense shown separately below) 1,727 1,845 1,935 1,933 7,440 Selling, general and administrative expenses 611 612 627 659 2,509 Depreciation and amortization expense 73 82 82 88 325 Income from operations 500 546 543 553 2,142 Net income 383 420 397 424 1,624 Basic EPS (1) $ 0.63 $ 0.69 $ 0.65 $ 0.70 $ 2.67 Diluted EPS (1) $ 0.62 $ 0.68 $ 0.65 $ 0.69 $ 2.65 (1) The sum of the quarterly basic and diluted EPS for each of the four quarters may not equal the EPS for the year due to rounding. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | Valuation and Qualifying Accounts For the Years Ended December 31, 2016 , 2015 and 2014 (in millions) Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts (1) Deductions /Other Balance at End of Period (in millions) Trade accounts receivable allowance for doubtful accounts: 2016 $ 39 $ 12 $ — $ 3 $ 48 2015 $ 37 $ 10 $ — $ 8 $ 39 2014 $ 27 $ 5 $ 6 $ 1 $ 37 Warranty accrual: 2016 $ 24 $ 28 $ — $ 26 $ 26 2015 $ 21 $ 28 $ — $ 25 $ 24 2014 $ 18 $ 25 $ — $ 22 $ 21 Valuation allowance—deferred income tax assets: 2016 $ 10 $ — $ — $ — $ 10 2015 $ 11 $ 3 $ — $ 4 $ 10 2014 $ 6 $ — $ 5 $ — $ 11 (1) Amounts relate to material acquisitions. |
Business Description and Summ27
Business Description and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation And Principles of Consolidation | Basis of Presentation and Principles of Consolidation . The consolidated financial statements are presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, and reflect the consolidated financial position, results of operations, comprehensive income and cash flows of our consolidated subsidiaries for all periods presented. All intercompany balances and transactions have been eliminated in consolidation. Equity investments through which we are able to exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee’s activities are accounted for using the equity method. |
Cash And Cash Equivalents And Investments | Cash and Cash Equivalents and Investments. Cash and cash equivalents consist of all cash balances, including money market funds and liquid instruments. Liquid instruments are classified as cash equivalents when their maturities at the date of purchase are 90 days or less and as short-term investments when their maturities at the date of purchase are greater than 90 days. We determine the appropriate classification of our investments in marketable securities at the date of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable securities as either trading, available-for-sale or held-to-maturity. After consideration of our risk versus reward objectives, as well as our liquidity requirements, we may sell our trading and available-for-sale securities prior to their stated maturities. We classify these marketable securities with maturities at the date of purchase beyond 90 days as short-term investments based on their highly liquid nature and because such marketable securities represent an investment of cash that is available for current operations. Our held-to-maturity investment securities are financial instruments for which we have the intent and ability to hold to maturity and we classify these securities with maturities beyond 90 days but less than one year as short-term investments. Any held-to-maturity investment securities with maturities beyond one year would be classified as noncurrent. Trading securities are reported at fair value with changes in unrealized gains and losses recorded in Other income (expense), net in our consolidated statements of operations. Available-for-sale securities are reported at fair value with changes in unrealized gains and losses recorded as a separate component of accumulated other comprehensive income (loss) until realized. We determine the cost of the securities sold based on the specific identification method. Held-to-maturity securities are reported at amortized cost. Time deposits with financial institutions are valued at cost, which approximates fair value. Interest and amortization of premiums and discounts for debt securities are included in interest income. On a quarterly basis, we evaluate our available-for-sale and held-to-maturity investments for possible other-than-temporary impairment by reviewing factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, whether we intend to sell the security and whether it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to income and a new cost basis in the investment is established. |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is determined by evaluating the relative credit-worthiness of each customer, historical collections experience and other information, including the aging of the receivables. We evaluate the collectibility of our accounts receivable on an on-going basis and write-off accounts when they are deemed to be uncollectible. |
Unbilled Accounts Receivable | Unbilled Accounts Receivable. Unbilled accounts receivable represent revenues recognized on contracts to be billed, in subsequent periods, as per the terms of the related contracts. |
Short-Term Financial Assets And Liabilities | Short-term Financial Assets and Liabilities. Cash and certain cash equivalents, trade receivables, accounts payable and other accrued liabilities are short-term in nature and, accordingly, their carrying values approximate fair value. |
Property And Equipment | Property and Equipment . Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. In India, leasehold land is leased by us from the government of India with lease terms ranging up to 99 years . Lease payments are made at the inception of the lease agreement and amortized over the lease term. Maintenance and repairs are expensed as incurred, while renewals and betterments are capitalized. Deposits paid towards acquisition of long-lived assets and the cost of assets not put in use before the balance sheet date are disclosed under the caption “Capital work-in-progress” in Note 5. |
Internal Use Software | Internal Use Software . We capitalize certain costs that are incurred to purchase, develop and implement internal-use software during the application development phase, which primarily include coding, testing and certain data conversion activities. Capitalized costs are amortized on a straight-line basis over the useful life of the software. Costs incurred in performing activities associated with the preliminary project phase and the post-implementation phase are expensed as incurred. |
Business Combinations | Business Combinations . We account for business combinations using the acquisition method, which requires the identification of the acquirer, the determination of the acquisition date and the allocation of the purchase price paid by the acquirer to the identifiable tangible and intangible assets acquired, the liabilities assumed, including any contingent consideration and any noncontrolling interest in the acquiree at their acquisition date fair values. Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in our consolidated financial statements from the acquisition date . |
Equity Method Investments And Cost Method Investments | Equity Method Investments. Equity investments that give us the ability to exercise significant influence, but not control, over an investee are accounted for using the equity method of accounting. Equity method investments are initially recorded at cost and any excess cost over our proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill and included in the carrying amount of the investment. We periodically review the carrying value of our equity method investments to determine if there has been an other-than-temporary decline in carrying value. The Company's proportionate share of the net income or loss of the investee is recorded in the caption "Income from equity method investment" on our consolidated statements of operations. The investment balance is increased or decreased for cash contributions and distributions to or from these investees. In the circumstance we obtain control of the investee, the existing carrying value of the investment is remeasured to the fair value on the change of control date and any gain or loss is recognized in results of operations. Cost Method Investments. Equity investments without readily determinable fair values in which we do not exercise significant influence or control are accounted for using the cost method of accounting and recorded in the caption "Equity and cost method investments" on our consolidated statement of financial position. Investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions and additional investments. We periodically review the carrying value of our cost method investments to determine if there has been an other-than-temporary decline in carrying value. |
Long-Lived Assets And Finite-Lived Intangibles | Long-lived Assets and Finite-lived Intangibles . We review long-lived assets and certain finite-lived identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We recognize an impairment loss when the sum of undiscounted expected future cash flows is less than the carrying amount of such assets. The impairment loss is determined as the amount by which the carrying amount of the asset exceeds the fair value of the asset. Intangible assets consist primarily of customer relationships and developed technology, which are being amortized on a straight-line basis over their estimated useful lives. |
Goodwill And Indefinite-Lived intangibles | Goodwill and Indefinite-lived Intangibles . We evaluate goodwill and indefinite-lived intangible assets for impairment at least annually, or as circumstances warrant. Goodwill is evaluated at the reporting unit level by comparing the fair value of the reporting unit with its carrying amount. For indefinite-lived intangible assets, if our annual qualitative assessment indicates possible impairment, we test the assets for impairment by comparing the fair value of such assets to their carrying value. In determining the fair value, we utilize various estimates and assumptions, including discount rates and projections of future cash flows. If an impairment is indicated, a write down to the implied fair value of goodwill or fair value of indefinite-lived intangible asset is recorded. |
Stock Repurchase Program | Stock Repurchase Program. Through December 2016, our Board of Directors had authorized the repurchase of $3,000 million of our outstanding shares of Class A common stock, excluding fees and expenses ("Existing Stock Repurchase Program"). In February 2017, the Board of Directors approved the termination of the Existing Stock Repurchase Program and approved a new stock repurchase program ("New Stock Repurchase Program"), both actions to take effect on the date of filing of our Annual Report on this Form 10-K for the year ended December 31, 2016. The New Stock Repurchase Program allows for the repurchase of $3,500 million of our outstanding shares of Class A common stock, excluding fees and expenses, through December 31, 2019. During 2016 , 2015 and 2014 , we repurchased 8 million , 6 million and 4 million shares respectively, at an aggregate cost of $440 million , $376 million and $188 million, respectively under the Existing Stock Repurchase Program. Additional stock repurchases were made in connection with our stock-based compensation plans, whereby Company shares were tendered by employees for payment of applicable statutory tax withholdings. During 2016 , 2015 and 2014 , such repurchases totaled 1 million in each of the years, at an aggregate cost of $72 million, $84 million and $60 million, respectively. We account for the repurchases as constructively retired. At the time of repurchase, shares are returned to the status of authorized and unissued shares. To reflect share repurchases in the consolidated statement of financial position, the Company (i) reduces common stock for the par value of the shares, (ii) reduces additional paid-in capital for the amount in excess of par during the period in which the shares are repurchased and (iii) records any residual amount in excess of available additional paid-in capital to retained earnings. |
Revenue Recognition | Revenue Recognition . Revenues related to time-and-materials contracts are recognized as the service is performed and amounts are earned. Revenues from transaction-priced contracts are recognized as transactions are processed and amounts are earned. Revenues related to fixed-price contracts for highly complex application development and systems integration services are recognized as the service is performed using the percentage of completion method of accounting, under which the total value of revenues is recognized on the basis of the percentage that each contract’s total labor cost to date bears to the total expected labor costs (cost to cost method). Revenues related to fixed-price outsourcing services are recognized on a straight-line basis unless revenues are earned and obligations are fulfilled in a different pattern. Revenues related to fixed-price contracts for consulting or other technology services are recognized as services are performed on a proportional performance basis based upon the level of effort. For all services, revenues are earned and recognized only when all of the following criteria are met: evidence of an arrangement exists, the price is fixed or determinable, the services have been rendered and collectibility is reasonably assured. Contingent or incentive revenues are recognized when the contingency is satisfied and we conclude the amounts are earned. Volume discounts are recorded as a reduction of revenues as services are provided. Revenues also include the reimbursement of out-of-pocket expenses. Costs to deliver services are expensed as incurred with the exception of specific costs directly related to transition or set-up activities for outsourcing contracts. Transition costs are deferred and expensed ratably over the period of service. Deferred amounts are protected by collected cash or early termination penalty clauses and are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows of the related contract are not sufficient to recover the carrying amount of the contract assets. Deferred transition costs were approximately $ 188 million and $ 137 million as of December 31, 2016 and 2015 , respectively, and are included in other noncurrent assets in our consolidated statements of financial position. Costs related to warranty provisions are accrued at the time the related revenues are recorded. We may enter into arrangements that consist of multiple elements. Such arrangements may include any combination of our products, solutions and services. For arrangements with multiple deliverables, we evaluate at the inception of each new arrangement all deliverables to determine whether they represent separate units of accounting. For arrangements with multiple units of accounting, other than arrangements that contain software licenses and software-related services, we allocate consideration among the units of accounting, where separable, based on their relative selling price. Relative selling price is determined based on vendor-specific objective evidence, or VSOE, if it exists. Otherwise, third-party evidence of selling price is used, when it is available, and in circumstances when neither VSOE nor third-party evidence of selling price is available, management’s best estimate of selling price is used. Revenues are recognized for each unit of accounting based on our revenue recognition policy described above. Fixed-price contracts are generally cancelable subject to a specified notice period. All services provided by us through the date of cancellation are due and payable under the contract terms. We issue invoices related to fixed-price contracts based upon achievement of milestones during a project or other contractual terms. Differences between the timing of billing, based on contract milestones or other contractual terms, and the recognition of revenues are recognized as either unbilled receivables or deferred revenue. Estimates of certain fixed-price contracts are subject to adjustment as a project progresses to reflect changes in expected completion costs or efforts. The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known and any anticipated losses on contracts are recognized immediately. We also generate product revenues from licensing our software. For perpetual software license arrangements that do not require significant modification or customization of the underlying software, revenues are recognized when the software is delivered and all other software revenue recognition criteria are met. For software license arrangements that require significant functionality enhancements or modification of the software, revenues for the software license and those services are recognized as those services are performed. For software license arrangements that include a right to use the product for a defined period of time, we recognize revenues ratably over the term of the license. We may enter into arrangements with customers that purchase both software licenses and software-related services from us at the same time, or within close proximity of one another (referred to as software-related multiple-element arrangements). Such software related multiple-element arrangements may include software licenses, software license updates, product support contracts and other software-related services. For those software related multiple-element arrangements, we apply the residual method to determine the amount of software license revenues. Under the residual method, if VSOE of fair value exists for undelivered elements in a multiple-element arrangement, revenues equal to the fair value of the undelivered elements are deferred with the remaining portion of the arrangement consideration generally recognized upon delivery of the software license. For arrangements in which VSOE of fair value does not exist for each software-related undelivered element, revenues for the software license are deferred and not recognized until VSOE of fair value is available for the undelivered element or delivery of each element has occurred. If the only undelivered element is a service, revenues from the delivered element are recognized over the service period. We also enter into multiple-element arrangements that may include a combination of software licenses and various software-related and non-software-related services. In such arrangements, we first allocate the total arrangement consideration, based on relative selling prices, between the software group of elements and the non-software group of elements. We then further allocate consideration within the software group to the respective elements within that group following the software-related multiple-element arrangements policies described above. For the non-software group of elements, we further allocate consideration to the respective elements based on relative selling prices. After the arrangement consideration has been allocated to the individual elements, we account for each respective element in the arrangement as described above. |
Stock-Based Compensation | Stock-Based Compensation. Stock-based compensation expense for awards of equity instruments to employees and non-employee directors is determined based on the grant-date fair value of those awards. We recognize these compensation costs net of an estimated forfeiture rate over the requisite service period of the award. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates. |
Foreign Currency | Foreign Currency . The assets and liabilities of our foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars from local currencies at current exchange rates and revenues and expenses are translated from local currencies at average monthly exchange rates. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss) on the accompanying consolidated statements of financial position. Foreign currency transactions and balances are those that are denominated in a currency other than the subsidiary’s functional currency. The U.S. dollar is the functional currency for certain foreign subsidiaries who conduct business predominantly in U.S. dollars. For these subsidiaries, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at current exchange rates. Foreign currency exchange gains or losses from remeasurement are included in the "Foreign currency exchange gain (losses), net" line on our consolidated statement of operations together with gains or losses on our undesignated foreign currency hedges. |
Derivative Financial Instruments | Derivative Financial Instruments. Derivative financial instruments are recorded on the balance sheet as either an asset or liability measured at its fair value as of the reporting date. Our derivative financial instruments consist of foreign exchange forward contracts. For derivative financial instruments to qualify for hedge accounting, the following criteria must be met: (1) the hedging instrument must be designated as a hedge; (2) the hedged exposure must be specifically identifiable and must expose us to risk; and (3) it is expected that a change in fair value of the derivative financial instrument and an opposite change in the fair value of the hedged exposure will have a high degree of correlation. The authoritative guidance requires that changes in our derivatives’ fair values be recognized in income unless specific hedge accounting and documentation criteria are met (i.e., the instruments are designated and accounted for as hedges). We record the effective portion of the unrealized gains and losses on our derivative financial instruments that are designated as cash flow hedges in accumulated other comprehensive income (loss) in the accompanying consolidated statements of financial position. Any ineffectiveness or excluded portion of a designated cash flow hedge is recognized in income. Upon occurrence of the hedged transaction, the gains and losses on the derivative are recognized in income. |
Use Of Estimates | Use of Estimates . The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including the recoverability of tangible and intangible assets, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the period. The most significant estimates relate to the recognition of revenues and profits based on the percentage of completion method of accounting for certain fixed-price contracts, the allowance for doubtful accounts, income taxes, assumptions used in valuing stock-based compensation arrangements, valuation of derivative financial instruments and investments, business combinations, intangible assets and other long-lived assets, valuation of goodwill, contingencies and litigation. We evaluate our estimates on a continuous basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The actual amounts may vary from the estimates used in the preparation of the accompanying consolidated financial statements. |
Risks And Uncertainties | Risks and Uncertainties . The majority of our global delivery centers and employees are located in India. As a result, we may be subject to certain risks associated with international operations, including risks associated with foreign currency exchange rate fluctuations, risks associated with the application and imposition of protective legislation, immigration laws and regulations relating to import and export or otherwise resulting from foreign policy or the variability of foreign economic or political conditions. Additional risks associated with international operations include difficulties in enforcing intellectual property rights, the burdens of complying with a wide variety of foreign laws, potential geo-political risks, risks associated with terrorist activities and local or cross border conflicts and potentially adverse tax consequences, tariffs, quotas and other barriers. |
Concentration Of Credit Risk | Concentration of Credit Risk . Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and cash equivalents, time deposits, investments in securities, derivative financial instruments and billed and unbilled accounts receivable. We maintain our cash and cash equivalents, investments and derivative financial instruments with high credit quality financial institutions, invest in investment-grade debt securities and limit the amount of credit exposure to any one commercial issuer. Our accounts receivable are dispersed across many customers operating in different industries; therefore, concentration of credit risk is limited. |
Income Taxes | Income Taxes. We provide for income taxes utilizing the asset and liability method of accounting. Under this method, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each balance sheet date, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. If it is determined that it is more likely than not that future tax benefits associated with a deferred income tax asset will not be realized, a valuation allowance is provided. The effect on deferred income tax assets and liabilities of a change in the tax rates is recognized in income in the period that includes the enactment date. Tax benefits earned on employee stock awards in excess of recorded stock-based compensation expense are credited to additional paid-in capital. Our provision for income taxes also includes the impact of provisions established for uncertain income tax positions, as well as the related interest. |
Earnings Per Share, Or EPS | Earnings Per Share, or EPS. Basic EPS excludes dilution and is computed by dividing earnings available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS includes all potential dilutive common stock in the weighted average shares outstanding. For purposes of computing diluted earnings per share for the years ended December 31, 2016 , 2015 and 2014 , respectively, 3 million, 4 million and 5 million shares were assumed to have been outstanding related to common share equivalents. We exclude from the calculation of diluted EPS options with exercise prices that are greater than the average market price and shares related to stock-based awards whose combined exercise price, unamortized fair value and excess tax benefits were greater in each of those periods than the average market price of our common stock for the period, because their effect would be anti-dilutive. We excluded less than 1 million of anti-dilutive shares in each of 2016 , 2015 and 2014 from our diluted EPS calculation. We include performance stock unit awards in the dilutive potential common shares when they become contingently issuable per the authoritative guidance and exclude the awards when they are not contingently issuable. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board, or FASB, issued an update related to the presentation of debt issuance costs. The update requires debt issuance costs, other than costs incurred to secure lines of credit, be presented in the balance sheet as a direct deduction from the carrying value of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by this update. The guidance is effective on a retrospective basis for fiscal years, and interim periods within those years, beginning on or after January 1, 2016. Thus, we have adopted this guidance as of January 1, 2016. We conformed prior period's presentation to current period's presentation on our consolidated statement of financial position. The adoption of this standard impacted financial statement presentation only and had no effect on our financial condition or results of operations. In April 2015, the FASB issued an update to the standard on internal-use software providing guidance to customers in evaluating whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the updated standard requires the customer to account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer is required to account for the arrangement as a service contract. The update is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2016. A company can elect to adopt the update either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. We have adopted this update prospectively beginning January 1, 2016. The adoption of this update did not have a material effect on our financial condition or results of operations. New Accounting Pronouncements. In May 2014, the FASB issued a standard on revenue from contracts with customers. In 2016, the FASB issued five amendments to the new standard. The new standard, as amended, sets forth a single comprehensive model for recognizing and reporting revenues. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenues and cash flows relating to customer contracts. The standard is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2018. Early adoption is permitted but not before periods beginning on or after January 1, 2017. We do not intend to adopt early. The standard allows for two methods of adoption: the full retrospective adoption, which requires the standard to be applied to each prior period presented, or the modified retrospective adoption, which requires the cumulative effect of adoption to be recognized as an adjustment to opening retained earnings in the period of adoption. While we are currently evaluating the effect the new standard will have on our consolidated financial statements and related disclosures, we currently believe the most significant impacts relate to changes in the method used to measure progress on our fixed-price contracts, capitalization and amortization of costs to acquire and fulfill a contract, as well as the timing of revenue recognition on our software license contracts. Due to the complexity of certain of our contracts, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms. In January 2016, the FASB issued an update to the standard on financial instruments. The update significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements. The update is effective for fiscal years, and interim periods within those fiscal years, beginning on or after January 1, 2018. Upon adoption, entities will be required to make a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period in which the guidance is effective. However, the specific guidance on equity securities without readily determinable fair value will apply prospectively to all equity investments that exist as of the date of adoption. Early adoption of certain sections of this update is permitted. We are currently evaluating the effect the update will have on our consolidated financial statements and related disclosures. In February 2016, the FASB issued a standard on lease accounting. The new standard replaces the existing guidance on leases and requires the lessee to recognize a right-of-use asset and a lease liability for all leases with lease terms equal to or greater than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize total lease expense on a straight-line basis. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after January 1, 2019. Upon adoption, entities will be required to use a modified retrospective transition which provides for certain practical expedients. Entities are required to apply the new standard at the beginning of the earliest comparative period presented. Early adoption of this new standard is permitted. We are currently evaluating the effect the new standard will have on our consolidated financial statements and related disclosures. We expect the requirement to recognize a right-of-use asset and a lease liability for operating leases to have a material impact on the presentation of our consolidated statements of financial position. In March 2016, the FASB issued an update to the standard on derivatives and hedging, which clarifies the effect of derivative contract novations on existing hedge accounting relationships. As it relates to derivative instruments, novation refers to replacing one of the parties to a derivative instrument with a new party, which may occur for a variety of reasons such as: financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, or because of laws or regulatory requirements. The update clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedge accounting relationship provided that all other hedge accounting criteria continue to be met. The update is effective for fiscal years, and interim periods within those fiscal years, beginning on or after January 1, 2017. Upon adoption, entities can choose to apply the update on either a prospective basis or a modified retrospective basis. We do not expect the adoption of this amendment to have a material effect on our consolidated financial statements. In March 2016, the FASB issued an update to the standard on stock compensation, which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for excess tax benefits and deficiencies, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update is effective for fiscal years, and interim periods within those fiscal years, beginning on or after January 1, 2017. Upon adoption, entities will be required to apply a modified retrospective, prospective or retrospective transition method depending on the specific section of the guidance being adopted. We expect the requirements to recognize excess tax benefits and deficiencies on stock awards in the income tax provision and to present the excess tax benefits and deficiencies in operating activities in the statement of cash flows to be the primary effects of this standard on our consolidated financial statements. In June 2016, the FASB issued an update to the standard on financial instruments, which amends the guidance on the impairment of financial instruments. The update changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded by introducing an approach based on expected losses. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The update is effective for fiscal years, and interim periods within those fiscal years, beginning on or after January 1, 2021. Early adoption is permitted beginning on or after January 1, 2020. Upon adoption, entities will be required to use a modified retrospective transition approach. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In August 2016, the FASB issued an update to the standard on the statement of cash flows, which clarifies the presentation and classification of certain cash receipts and cash payments. The update addresses specific cash flow issues, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. The update is effective for fiscal years, and interim periods within those fiscal years, beginning on or after January 1, 2018. Early adoption is permitted, including adoption in an interim period, provided that all of the updates are adopted in the same period. Upon adoption, entities will be required to use a retrospective transition approach. We are currently evaluating the impact of the new guidance on our consolidated financial statements. The adoption of this guidance will affect financial statement presentation only and will have no effect on our financial position or results of operations. In October 2016, the FASB issued an update to the standard on income taxes, which requires the recognition of current and deferred income taxes when an intra-entity transfer of assets other than inventory occurs. The update is effective for fiscal years, and interim periods within those fiscal years, beginning on or after January 1, 2018. Early adoption is permitted. Upon adoption, the entities will be required to use a modified retrospective transition approach. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In January 2017, the FASB issued an update to the standard on business combinations, which clarifies the definition of a business. The update requires a business to include at least an input and a substantive process that together significantly contribute to the ability to create outputs. The update also states that the definition of a business is not met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. The update is effective for fiscal years, and interim periods within those fiscal years, beginning after January 1, 2018. Upon adoption, entities will be required to apply the update prospectively. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In January 2017, the FASB issued an update to the standard on goodwill, which eliminates the need to calculate the implied fair value of goodwill when an impairment is indicated. The update states that goodwill impairment is measured as the excess of a reporting unit’s carrying value over its fair value, not to exceed the carrying amount of goodwill. The update is effective for fiscal years, and interim periods within those fiscal years, beginning after January 1, 2020. Early adoption is permitted for any impairment tests performed after January 1, 2017. Upon adoption, entities will be required to apply the update prospectively. We do not expect the adoption of this amendment to have a material effect on our consolidated financial statements. |
Business Combinations and Equ28
Business Combinations and Equity and Cost Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Acquisition [Line Items] | |
Supplemental schedule of noncash investing activities | In conjunction with the 2016 acquisitions, liabilities were assumed as follows: Year Ended December 31, 2016 (in millions) Fair value of assets acquired $ 494 Purchase price paid in cash (net of cash acquired) (270 ) Liabilities assumed $ 224 In conjunction with the TriZetto acquisition, liabilities were assumed as follows: Year Ended December 31, 2014 (in millions) Fair value of assets acquired $ 3,071 Purchase price paid in cash (net of cash acquired) (2,628 ) Liabilities assumed $ 443 |
TriZetto [Member] | |
Business Acquisition [Line Items] | |
Schedule of intangible assets acquired as part of business combination | The fair value of the identifiable intangible assets and their weighted-average useful lives at the time of acquisition were as follows: Fair Value Weighted Average Useful Life (Dollars in millions) Corporate trademark $ 63 Indefinite Product trademarks 21 16.9 years Technology 328 7.7 years Customer relationships 437 15.8 years Total definite lived intangible assets 786 12.4 years Total $ 849 |
Fair value of assets acquired and liabilities assumed | Our allocation of purchase price as of November 20, 2014 (the closing date of the TriZetto acquisition) to the fair value of assets acquired and liabilities assumed was as follows: Amount (in millions) Cash $ 170 Trade accounts receivable 83 Unbilled accounts receivable 33 Other current assets 11 Property and equipment 124 Identifiable intangible assets 849 Other noncurrent assets 15 Accounts payable (13 ) Deferred revenue (48 ) Accrued expenses and other current liabilities (118 ) Other noncurrent liabilities (55 ) Deferred income tax liabilities, net (209 ) Goodwill 1,956 Total purchase price $ 2,798 |
Schedule of pro forma information | The following unaudited pro forma information reflecting the combined operating results of Cognizant and TriZetto for the year ended December 31, 2014 assumes the TriZetto acquisition occurred on January 1, 2013. Such pro forma information does not reflect the potential realization of cost savings relating to the integration of TriZetto. Further, the pro forma information is not indicative of the combined results of operations that actually would have occurred had the TriZetto acquisition been completed on January 1, 2013 nor is it intended to be a projection of future operating results. Unaudited Pro Forma Information For the Year Ended December 31, 2014 (in millions) Revenues $ 10,893 Income from operations 1,960 |
Other acquisitions [Member] | |
Business Acquisition [Line Items] | |
Schedule of intangible assets acquired as part of business combination | Specifically-identified intangible assets and goodwill acquired were as follows: Fair Value Weighted Average Useful Life (in millions) Non-deductible goodwill $ 157 Customer relationship intangible assets $ 199 6.6 years Other intangible assets 1 3.3 years Total identified intangible assets $ 200 6.6 years Specifically-identified intangible assets and goodwill acquired were as follows: 2014 Fair Value Weighted Average Useful Life (Dollars in millions) Non-deductible goodwill $ 31 Customer relationship intangible assets $ 12 6.0 years Other intangible assets 4 3.1 years Total identified intangible assets $ 16 5.2 years |
Short-term Investments (Tables)
Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Schedule of short-term investments | Our short-term investments were as follows as of December 31: 2016 2015 (in millions) Trading investment securities: Mutual funds $ 25 $ — Total trading investment securities 25 — Available-for-sale investment securities: U.S. Treasury and agency debt securities 602 527 Corporate and other debt securities 405 361 Certificates of deposit and commercial paper 911 754 Asset-backed securities 231 230 Municipal debt securities 115 121 Mutual funds — 22 Total available-for-sale investment securities 2,264 2,015 Held-to-maturity investment securities: Certificates of deposit and commercial paper 40 — Total held-to-maturity investment securities 40 — Other investments: Time deposits 806 809 Total other investments 806 809 Total short-term investments $ 3,135 $ 2,824 |
Amortized Cost, Gross Unrealized Gains And Losses And Fair Value Of Investment Securities Available-For-Sale | The amortized cost, gross unrealized gains and losses and fair value of our available-for-sale investment securities were as follows at December 31: 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in millions) U.S. Treasury and agency debt securities $ 605 $ — $ (3 ) $ 602 Corporate and other debt securities 407 — (2 ) 405 Certificates of deposit and commercial paper 910 1 — 911 Asset-backed securities 232 — (1 ) 231 Municipal debt securities 116 — (1 ) 115 Total available-for-sale investment securities $ 2,270 $ 1 $ (7 ) $ 2,264 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in millions) U.S. Treasury and agency debt securities $ 529 $ — $ (2 ) $ 527 Corporate and other debt securities 362 1 (2 ) 361 Certificates of deposit and commercial paper 754 — — 754 Asset-backed securities 231 — (1 ) 230 Municipal debt securities 121 — — 121 Mutual funds 25 — (3 ) 22 Total available-for-sale investment securities $ 2,022 $ 1 $ (8 ) $ 2,015 |
Available-For-Sale Securities In A Continuous Unrealized Loss Position | The fair value and related unrealized losses of our available-for-sale investment securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer were as follows as of December 31: 2016 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) U.S. Treasury and agency debt securities $ 526 $ (3 ) $ — $ — $ 526 $ (3 ) Corporate and other debt securities 342 (2 ) 1 — 343 (2 ) Certificates of deposit and commercial paper 185 — — — 185 — Asset-backed securities 206 (1 ) 1 — 207 (1 ) Municipal debt securities 88 (1 ) 1 — 89 (1 ) Total $ 1,347 $ (7 ) $ 3 $ — $ 1,350 $ (7 ) 2015 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) U.S. Treasury and agency debt securities $ 476 $ (2 ) $ — $ — $ 476 $ (2 ) Corporate and other debt securities 315 (2 ) 3 — 318 (2 ) Certificates of deposit and commercial paper 272 — — — 272 — Asset-backed securities 199 (1 ) 12 — 211 (1 ) Municipal debt securities 56 — — — 56 — Mutual funds — — 21 (3 ) 21 (3 ) Total $ 1,318 $ (5 ) $ 36 $ (3 ) $ 1,354 $ (8 ) |
Contractual Maturities Of Investments In Debt Securities Available-For-Sale | The contractual maturities of our fixed income available-for-sale investment securities as of December 31, 2016 are set forth in the following table: Amortized Cost Fair Value (in millions) Due within one year $ 1,061 $ 1,061 Due after one year up to two years 482 480 Due after two years up to three years 362 360 Due after three years 133 132 Asset-backed securities 232 231 Total available-for-sale investment securities $ 2,270 $ 2,264 |
Gross Gains (Losses) Realized On Sales, Maturities And Other Securities Transactions Related To Investment Securities | Proceeds from sales of available-for-sale investment securities and the gross gains and losses that have been included in earnings as a result of those sales were as follows: 2016 2015 2014 (in millions) Proceeds from sales of available-for-sale investment securities $ 3,541 $ 782 $ 1,476 Gross gains $ 5 $ 1 $ 2 Gross losses (4 ) — — Net realized gains on sales of available-for-sale investment securities $ 1 $ 1 $ 2 |
Held-to-maturity Securities | The amortized cost, gross unrealized gains and losses and fair value of held-to-maturity investment securities at December 31, 2016 were as follows: Amortized Unrealized Unrealized Fair (in millions) Certificates of deposit and commercial paper 40 — — 40 Total held-to-maturity investment securities $ 40 $ — $ — $ 40 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property and equipment | Property and equipment were as follows as of December 31: Estimated Useful Life (Years) 2016 2015 (in millions) Buildings 30 $ 823 $ 805 Computer equipment and software 3 – 8 849 697 Furniture and equipment 5 – 9 431 384 Land 23 23 Leasehold land lease term 63 63 Capital work-in-progress 169 115 Leasehold improvements Shorter of the lease term or the life of the leased asset 266 263 Sub-total 2,624 2,350 Accumulated depreciation and amortization (1,313 ) (1,079 ) Property and equipment, net $ 1,311 $ 1,271 |
Goodwill and Intangible Asset31
Goodwill and Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Goodwill | Changes in goodwill by our reportable segments were as follows for the years ended December 31, 2016 and 2015 : Segment January 1, 2016 Goodwill Additions Foreign Currency Translation Adjustments December 31, 2016 (in millions) Financial Services $ 203 $ 28 $ (4 ) $ 227 Healthcare 2,076 14 (1 ) 2,089 Manufacturing/Retail/Logistics 67 94 (2 ) 159 Other 59 21 (1 ) 79 Total goodwill $ 2,405 $ 157 $ (8 ) $ 2,554 Segment January 1, 2015 Goodwill Additions Foreign Currency Translation Adjustments December 31, 2015 (in millions) Financial Services $ 205 $ 5 $ (7 ) $ 203 Healthcare 2,080 — (4 ) 2,076 Manufacturing/Retail/Logistics 69 — (2 ) 67 Other 60 — (1 ) 59 Total goodwill $ 2,414 $ 5 $ (14 ) $ 2,405 |
Schedule of Finite-Lived Intangible Assets | Components of intangible assets were as follows as of December 31: 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Customer relationships $ 845 $ (219 ) $ 626 Developed technology 332 (96 ) 236 Indefinite life trademarks 63 — 63 Other 48 (22 ) 26 Total intangible assets $ 1,288 $ (337 ) $ 951 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Customer relationships $ 650 $ (158 ) $ 492 Developed technology 332 (52 ) 280 Indefinite life trademarks 63 — 63 Other 45 (16 ) 29 Total intangible assets $ 1,090 $ (226 ) $ 864 |
Schedule of Indefinite-Lived Intangible Assets | Components of intangible assets were as follows as of December 31: 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Customer relationships $ 845 $ (219 ) $ 626 Developed technology 332 (96 ) 236 Indefinite life trademarks 63 — 63 Other 48 (22 ) 26 Total intangible assets $ 1,288 $ (337 ) $ 951 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Customer relationships $ 650 $ (158 ) $ 492 Developed technology 332 (52 ) 280 Indefinite life trademarks 63 — 63 Other 45 (16 ) 29 Total intangible assets $ 1,090 $ (226 ) $ 864 |
Schedule Of Estimated Amortization Expense | Estimated amortization related to our existing intangible assets for the next five years is as follows: Year Amount (in millions) 2017 $ 124 2018 117 2019 114 2020 107 2021 104 |
Accrued Expenses and Other Cu32
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |
Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities were as follows as of December 31: 2016 2015 (in millions) Compensation and benefits $ 1,134 $ 1,272 Income taxes 10 17 Professional fees 99 70 Travel and entertainment 36 30 Customer volume incentives 258 236 Derivative financial instruments 4 11 Other 315 183 Total accrued expenses and other current liabilities $ 1,856 $ 1,819 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of short-term debt | The following summarizes our short-term debt balances as of December 31: 2016 2015 (in millions) Notes outstanding under revolving credit facility $ — $ 350 Term loan - current maturities 81 56 Total short-term debt $ 81 $ 406 |
Schedule of long-term debt | The following summarizes our long-term debt balances as of December 31: 2016 2015 (in millions) Term loan, due 2019 $ 881 $ 937 Less: Current maturities (81 ) (56 ) Deferred financing costs (3 ) (4 ) Long-term debt, net of current maturities $ 797 $ 877 |
Schedule of debt maturities | The following represents the schedule of maturities of our long-term debt: Year Amounts (in millions) 2017 81 2018 100 2019 700 $ 881 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Income Before Provision For Income Tax | Income before provision for income taxes shown below is based on the geographic location to which such income is attributed for years ended December 31: 2016 2015 2014 (in millions) United States $ 752 $ 739 $ 589 Foreign 1,605 1,425 1,335 Income before provision for income taxes $ 2,357 $ 2,164 $ 1,924 |
Schedule Of Components Of Provision For Income Taxes | The provision for income taxes consists of the following components for the years ended December 31: 2016 2015 2014 (in millions) Current: Federal and state $ 544 $ 352 $ 261 Foreign 352 314 324 Total current provision 896 666 585 Deferred: Federal and state (44 ) (58 ) (20 ) Foreign (47 ) (68 ) (80 ) Total deferred benefit (91 ) (126 ) (100 ) Total provision for income taxes $ 805 $ 540 $ 485 |
Reconciliation Between Effective Income Tax Rate and U.S. Federal Statutory Rate | The reconciliation between our effective income tax rate and the U.S. federal statutory rate were as follows for the years ended December 31: 2016 % 2015 % 2014 % (Dollars in millions) Tax expense, at U.S. federal statutory rate $ 825 35.0 $ 757 35.0 $ 673 35.0 State and local income taxes, net of federal benefit 42 1.8 42 2.0 35 1.8 Non-taxable income for Indian tax purposes (203 ) (8.6 ) (201 ) (9.3 ) (183 ) (9.5 ) Rate differential on foreign earnings (55 ) (2.3 ) (34 ) (1.6 ) (32 ) (1.7 ) India Cash Remittance 238 10.1 — 0.0 — 0.0 Credits and other incentives (57 ) (2.4 ) (23 ) (1.0 ) (16 ) (0.8 ) Other 15 0.6 (1 ) (0.1 ) 8 0.4 Total provision for income taxes $ 805 34.2 $ 540 25.0 $ 485 25.2 |
Schedule Of Deferred Tax Assets and Liabilities | The significant components of deferred income tax assets and liabilities recorded on the consolidated statements of financial position were as follows as of December 31: 2016 2015 (in millions) Deferred income tax assets: Net operating losses $ 14 $ 6 Revenue recognition 69 72 Compensation and benefits 165 194 Stock-based compensation 25 26 Minimum alternative tax (MAT) and other credits 274 219 Other accrued expenses 161 111 Other — 3 708 631 Less: valuation allowance (10 ) (10 ) Deferred income tax assets, net 698 621 Deferred income tax liabilities: Depreciation and amortization 266 276 Other 13 — Deferred income tax liabilities 279 276 Net deferred income tax assets $ 419 $ 345 |
Summary Of Changes in Unrecognized Tax Benefits | Changes in unrecognized income tax benefits were as follows for the years ended December 31: 2016 2015 (in millions) Balance, beginning of year $ 139 $ 136 Additions based on tax positions related to the current year 11 21 Additions for tax positions of prior years 19 6 Additions for tax positions of acquired subsidiaries — — Reductions for tax positions due to lapse of statutes of limitations (15 ) (23 ) Reductions for tax positions of prior years (1 ) — Settlements — — Foreign currency exchange movement (2 ) (1 ) Balance, end of year $ 151 $ 139 |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Location And Fair Values Of Derivative Financial Instruments In Our Condensed Consolidated Statements Of Financial Position | The following table provides information on the location and fair values of derivative financial instruments included in our consolidated statement of financial position as of December 31: 2016 2015 Designation of Derivatives Location on Statement of Financial Position Assets Liabilities Assets Liabilities (in millions) Foreign exchange forward contracts - Designated as cash flow hedging instruments Other current assets $ 34 $ — $ 7 $ — Other noncurrent assets 17 — 2 — Accrued expenses and other current liabilities — — — 10 Other noncurrent liabilities — — — 14 Total 51 — 9 24 Foreign exchange forward contracts - Not designated as cash flow hedging instruments Accrued expenses and other current liabilities — 4 — 1 Total — 4 — 1 Total $ 51 $ 4 $ 9 $ 25 |
Notional Value Of Outstanding Cash Flow Hedge Contracts By Year Of Maturity And Net Unrealized (Loss) Gain Included In Accumulated Other Comprehensive Income (Loss) | The notional value of our outstanding contracts by year of maturity and the net unrealized gains (loss) included in accumulated other comprehensive income (loss) for such contracts were as follows as of December 31: 2016 2015 (in millions) 2016 — 1,215 2017 1,320 900 2018 1,020 330 Total notional value of contracts outstanding $ 2,340 $ 2,445 Net unrealized gains (losses) included in accumulated other comprehensive income (loss), net of taxes $ 39 $ (12 ) |
Location And Amounts Of Pre-Tax Gains (Losses) On Cash Flow Hedge Derivative Financial Instruments | The following table provides information on the location and amounts of pre-tax (losses) on our cash flow hedges for the year ended December 31: Change in Derivative Gains/Losses Recognized in Accumulated Other Comprehensive Income (Loss) (effective portion) Location of Net Derivative Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) Net Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) 2016 2015 2016 2015 (in millions) Foreign exchange forward contracts - Designated as cash flow hedging instruments $ 83 $ 17 Cost of revenues $ 14 $ (59 ) Selling, general and administrative expenses 3 (12 ) Total $ 17 $ (71 ) |
Additional Information Related To Outstanding Contracts Not Designated As Hedging Instruments | Additional information related to our outstanding foreign exchange forward contracts not designated as hedging instruments is as follows as of December 31: 2016 2015 Notional Market Value Notional Market Value (in millions) Contracts outstanding $ 213 $ (4 ) $ 166 $ (1 ) |
Location And Amounts Of Pre-Tax Gains (Losses) On Derivative Financial Instruments Not Designated As Hedges | The following table provides information on the location and amounts of realized and unrealized pre-tax gains and losses on our other derivative financial instruments for the year ended December 31: Location of Net Gains (Losses) on Derivative Instruments Amount of Net Gains (Losses) on Derivative Instruments 2016 2015 (in millions) Foreign exchange forward contracts - Not designated as hedging instruments Foreign currency exchange gains (losses), net $ (3 ) $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And (Liabilities) Measured At Fair Value On A Recurring Basis | The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of December 31, 2016 : Level 1 Level 2 Level 3 Total (in millions) Cash equivalents: Money market funds $ 624 $ — $ — $ 624 Commercial paper — 131 — 131 Total cash equivalents 624 131 — 755 Short-term investments: Time deposits — 806 — 806 Available-for-sale investment securities: U.S. Treasury and agency debt securities 558 44 — 602 Corporate and other debt securities — 405 — 405 Certificates of deposit and commercial paper — 911 — 911 Asset-backed securities — 231 — 231 Municipal debt securities — 115 — 115 Total available-for-sale investment securities 558 1,706 — 2,264 Held-to-maturity investment securities: Certificates of deposit and commercial paper — 40 — 40 Total held-to-maturity investment securities — 40 — 40 Total short-term investments (1) 558 2,552 — 3,110 Derivative financial instruments - foreign exchange forward contracts: Other current assets — 34 — 34 Accrued expenses and other current liabilities — (4 ) — (4 ) Other noncurrent assets — 17 — 17 Other noncurrent liabilities — — — — Total $ 1,182 $ 2,730 $ — $ 3,912 ________________ (1) Excludes trading securities in mutual funds valued at $25 million based on the net asset value, or NAV, of the fund at December 31, 2016. The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of December 31, 2015 : Level 1 Level 2 Level 3 Total (in millions) Cash equivalents: Money market funds $ 496 $ — $ — $ 496 Total cash equivalents 496 — — 496 Short-term investments: Time deposits — 809 — 809 Available-for-sale investment securities: U.S. Treasury and agency debt securities 464 63 — 527 Corporate and other debt securities 361 — 361 Certificates of deposit and commercial paper 754 — 754 Asset-backed securities 230 — 230 Municipal debt securities 121 — 121 Total available-for-sale investment securities (1) 464 1,529 — 1,993 Total short-term investments (1) 464 2,338 — 2,802 Derivative financial instruments - foreign exchange forward contracts: Other current assets — 7 — 7 Accrued expenses and other current liabilities — (11 ) — (11 ) Other noncurrent assets — 2 — 2 Other noncurrent liabilities — (14 ) — (14 ) Total $ 960 $ 2,322 $ — $ 3,282 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) by component were as follows for the year ended December 31, 2016 : 2016 Before Tax Amount Tax Effect Net of Tax Amount (in millions) Foreign currency translation adjustments: Beginning balance $ (90 ) $ — $ (90 ) Change in foreign currency translation adjustments (59 ) — (59 ) Ending balance $ (149 ) $ — $ (149 ) Unrealized (losses) on available-for-sale investment securities: Beginning balance $ (7 ) $ 3 $ (4 ) Net unrealized gains arising during the period 5 (2 ) 3 Reclassification of net (gains) to Other, net (4 ) 1 (3 ) Net change 1 (1 ) — Ending balance $ (6 ) $ 2 $ (4 ) Unrealized gains (losses) on cash flow hedges: Beginning balance $ (15 ) $ 3 $ (12 ) Unrealized gains arising during the period 83 (19 ) 64 Reclassifications of net (gains) to: Cost of revenues (14 ) 3 (11 ) Selling, general and administrative expenses (3 ) 1 (2 ) Net change 66 (15 ) 51 Ending balance $ 51 $ (12 ) $ 39 Accumulated other comprehensive income (loss): Beginning balance $ (112 ) $ 6 $ (106 ) Other comprehensive income (loss) 8 (16 ) (8 ) Ending balance $ (104 ) $ (10 ) $ (114 ) Changes in accumulated other comprehensive income (loss) by component were as follows for the years ended December 31, 2015 and 2014 : 2015 2014 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Tax Net of Tax (in millions) Foreign currency translation adjustments: Beginning balance $ (35 ) $ — $ (35 ) $ 24 $ — $ 24 Change in foreign currency translation adjustments (55 ) — (55 ) (59 ) — (59 ) Ending balance $ (90 ) $ — $ (90 ) $ (35 ) $ — $ (35 ) Unrealized (losses) on available-for-sale investment securities: Beginning balance $ (2 ) $ 1 $ (1 ) $ — $ — $ — Net unrealized (losses) arising during the period (4 ) 1 (3 ) — — — Reclassification of net (gains) to Other, net (1 ) 1 — (2 ) 1 (1 ) Net change (5 ) 2 (3 ) (2 ) 1 (1 ) Ending balance $ (7 ) $ 3 $ (4 ) $ (2 ) $ 1 $ (1 ) Unrealized (losses) on cash flow hedges: Beginning balance $ (103 ) $ 16 $ (87 ) $ (355 ) $ 55 $ (300 ) Unrealized gains arising during the period 17 — 17 116 (18 ) 98 Reclassifications of net losses to: Cost of revenues 59 (11 ) 48 113 (17 ) 96 Selling, general and administrative expenses 12 (2 ) 10 23 (4 ) 19 Net change 88 (13 ) 75 252 (39 ) 213 Ending balance $ (15 ) $ 3 $ (12 ) $ (103 ) $ 16 $ (87 ) Accumulated other comprehensive income (loss): Beginning balance $ (140 ) $ 17 $ (123 ) $ (331 ) $ 55 $ (276 ) Other comprehensive income (loss) 28 (11 ) 17 191 (38 ) 153 Ending balance $ (112 ) $ 6 $ (106 ) $ (140 ) $ 17 $ (123 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments under non-cancelable operating leases | Future minimum rental payments on our operating leases as of December 31, 2016 are as follows: Operating lease obligation (in millions) 2017 $ 159 2018 136 2019 126 2020 105 2021 76 Thereafter 173 Total minimum lease payments $ 775 |
Schedule of future minimum payments on capital leases | Future minimum rental payments on our capital leases as of December 31, 2016 are as follows: Capital lease obligation (in millions) 2017 $ 3 2018 4 2019 4 2020 4 2021 4 Thereafter 28 Total minimum lease payments 47 Interest (13 ) Present value of minimum lease payments $ 34 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Schedule Of Allocation Of Total Stock-Based Compensation Expense | The allocation of total stock-based compensation expense between cost of revenues and selling, general and administrative expenses as well as the related income tax benefit were as follows for the three years ended December 31: 2016 2015 2014 (in millions) Cost of revenues $ 53 $ 39 $ 27 Selling, general and administrative expenses 164 153 108 Total stock-based compensation expense $ 217 $ 192 $ 135 Income tax benefit $ 49 $ 46 $ 31 |
Schedule Of Assumptions Used To Calculate The Fair Value Of Option Grants | The fair values of option grants, including the Purchase Plan, were estimated at the date of grant during the years ended December 31, 2016 , 2015 , and 2014 based upon the following assumptions and were as follows: 2016 2015 2014 Dividend yield 0 % 0 % 0 % Weighted average volatility factor: Stock options 28.3 % 28.1 % 28.7 % Purchase Plan 26.5 % 25.8 % 24.9 % Weighted average expected life (in years): Stock options 4.46 4.29 3.92 Purchase Plan 0.25 0.25 0.25 Weighted average risk-free interest rate: Stock options 1.1 % 1.4 % 1.3 % Purchase Plan 0.4 % 0.1 % 0 % Weighted average grant date fair value: Stock options $ 15.17 $ 16.53 $ 11.81 Purchase Plan $ 8.74 $ 9.04 $ 7.29 |
Summary Of Activity For Stock Options | A summary of the activity for stock options granted under our stock-based compensation plans as of December 31, 2016 and changes during the year then ended is presented below: Number of Options (in millions) Weighted Average Exercise Price (in dollars) Weighted Average Remaining Life (in years) Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2016 4.2 $ 19.09 Granted 0.1 59.64 Exercised (1.9 ) 18.07 Cancelled — — Expired — — Outstanding at December 31, 2016 2.4 $ 21.08 1.6 $ 84 Vested and expected to vest at December 31, 2016 2.4 $ 20.95 1.5 $ 84 Exercisable at December 31, 2016 2.3 $ 19.36 1.3 $ 84 |
Summary Of The Activity For Performance Stock Units | A summary of the activity for performance stock units granted under our stock-based compensation plans as of December 31, 2016 and changes during the year then ended is presented below. The presentation reflects the number of performance stock units at the maximum performance milestones. Number of Units (in millions) Weighted Average Grant Date Fair Value (in dollars) Unvested at January 1, 2016 2.5 $ 55.69 Granted 2.2 55.08 Vested (1.0 ) 51.34 Forfeited (0.5 ) 55.12 Reduction due to the achievement of lower than maximum performance milestones (0.5 ) 64.38 Unvested at December 31, 2016 2.7 $ 55.24 |
Summary Of The Activity For Restricted Stock Units | A summary of the activity for restricted stock units granted under our stock-based compensation plans as of December 31, 2016 and changes during the year then ended is presented below: Number of Units (in millions) Weighted Average Grant Date Fair Value (in dollars) Unvested at January 1, 2016 4.7 $ 55.50 Granted 2.9 55.55 Vested (2.4 ) 53.37 Forfeited (0.4 ) 57.03 Unvested at December 31, 2016 4.8 $ 56.45 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Revenues From External Customers And Segment Operating Profit | Revenues from external customers and segment operating profit, before unallocated expenses, for the Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other reportable segments were as follows: 2016 2015 2014 (in millions) Revenues: Financial Services $ 5,366 $ 5,003 $ 4,286 Healthcare 3,871 3,668 2,689 Manufacturing/Retail/Logistics 2,660 2,344 2,094 Other 1,590 1,401 1,194 Total revenues $ 13,487 $ 12,416 $ 10,263 Segment Operating Profit: Financial Services $ 1,707 $ 1,642 $ 1,320 Healthcare 1,153 1,200 851 Manufacturing/Retail/Logistics 851 803 686 Other 488 453 392 Total segment operating profit 4,199 4,098 3,249 Less: unallocated costs 1,910 1,956 1,364 Income from operations $ 2,289 $ 2,142 $ 1,885 |
Revenues And Long-Lived Assets By Geographic Area | Revenues and long-lived assets, by geographic area, were as follows: 2016 2015 2014 (in millions) Revenues: (1) North America (2) $ 10,546 $ 9,759 $ 7,880 United Kingdom 1,176 1,188 1,099 Rest of Europe 969 820 785 Europe - Total 2,145 2,008 1,884 Rest of World (3) 796 649 499 Total $ 13,487 $ 12,416 $ 10,263 2016 2015 2014 (in millions) Long-lived Assets: (4) North America (2) $ 279 $ 242 $ 188 Europe 52 32 30 Rest of World (3)(5) 980 997 1,029 Total $ 1,311 $ 1,271 $ 1,247 _____________ (1) Revenues are attributed to regions based upon customer location. (2) Substantially all relates to operations in the United States. (3) Includes our operations in Asia Pacific, the Middle East and Latin America. (4) Long-lived assets include property and equipment, net of accumulated depreciation and amortization. (5) Substantially all of these long-lived assets relate to our operations in India. |
Quarterly Financial Data (Una41
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Summary Of Quarterly Financial Data | Summarized quarterly results for the two years ended December 31, 2016 are as follows: Three Months Ended 2016 March 31 June 30 September 30 December 31 Full Year (in millions, except per share data) Revenues $ 3,202 $ 3,370 $ 3,453 $ 3,462 $ 13,487 Cost of revenues (exclusive of depreciation and amortization expense shown separately below) 1,915 2,038 2,077 2,078 8,108 Selling, general and administrative expenses 646 654 701 730 2,731 Depreciation and amortization expense 87 87 92 93 359 Income from operations 554 591 583 561 2,289 Net income 441 252 444 416 1,553 Basic EPS (1) $ 0.73 $ 0.42 $ 0.73 $ 0.69 $ 2.56 Diluted EPS (1) $ 0.72 $ 0.41 $ 0.73 $ 0.68 $ 2.55 Three Months Ended 2015 March 31 June 30 September 30 December 31 Full Year (in millions, except per share data) Revenues $ 2,911 $ 3,085 $ 3,187 $ 3,233 $ 12,416 Cost of revenues (exclusive of depreciation and amortization expense shown separately below) 1,727 1,845 1,935 1,933 7,440 Selling, general and administrative expenses 611 612 627 659 2,509 Depreciation and amortization expense 73 82 82 88 325 Income from operations 500 546 543 553 2,142 Net income 383 420 397 424 1,624 Basic EPS (1) $ 0.63 $ 0.69 $ 0.65 $ 0.70 $ 2.67 Diluted EPS (1) $ 0.62 $ 0.68 $ 0.65 $ 0.69 $ 2.65 (1) The sum of the quarterly basic and diluted EPS for each of the four quarters may not equal the EPS for the year due to rounding. |
Business Description and Summ42
Business Description and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Leasehold for land lease terms, maximum years | 99 years | |||
Stock Repurchased During Period, Value | $ 512,000,000 | $ 460,000,000 | $ 248,000,000 | |
Amount of Deferred Costs Related to Long-term Contracts | $ 188,000,000 | $ 137,000,000 | ||
Dilutive effect of shares issuable under stock-based compensation plans | 3 | 4 | 5 | |
Stock Compensation Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share - less than | 1 | 1 | 1 | |
Common Class A [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Repurchase of common stock authorized amount maximum | $ 3,000,000,000 | |||
Total shares repurchased during period | 8 | 6 | 4 | |
Stock Repurchased During Period, Value | $ 440,000,000 | $ 376,000,000 | $ 188,000,000 | |
Common Class A [Member] | Share Repurchase Program, Stock-based Compensation Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total shares repurchased during period | 1 | 1 | 1 | |
Stock Repurchased During Period, Value | $ 72,000,000 | $ 84,000,000 | $ 60,000,000 | |
Subsequent Event [Member] | Common Class A [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Repurchase of common stock authorized amount maximum | $ 3,500,000,000 |
Internal Investigation and Re43
Internal Investigation and Related Matters (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||||||||||
Selling, general and administrative expenses | $ 730 | $ 701 | $ 654 | $ 646 | $ 659 | $ 627 | $ 612 | $ 611 | $ 2,731 | $ 2,509 | $ 2,037 |
Decrease in depreciation and amortization expense | (93) | $ (92) | $ (87) | $ (87) | (88) | $ (82) | $ (82) | $ (73) | (359) | (325) | (200) |
Property and equipment, net | 1,311 | $ 1,271 | 1,311 | $ 1,271 | $ 1,247 | ||||||
Internal Investigation and Related Matters [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Potential Improper Payments | 6 | ||||||||||
Potential Improper Payments Remaining Under Investigation | 2 | ||||||||||
Out of period adjustment [Member] | Internal Investigation and Related Matters [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Selling, general and administrative expenses | 4 | ||||||||||
Decrease in depreciation and amortization expense | 1 | ||||||||||
Property and equipment, net | $ 3 | $ 3 |
Business Combinations and Equ44
Business Combinations and Equity and Cost Method Investments (Narrative) (Details) | Nov. 20, 2014USD ($) | Dec. 31, 2016USD ($)business | Dec. 31, 2015business | Dec. 31, 2014USD ($)business |
TriZetto [Member] | ||||
Business Acquisition [Line Items] | ||||
Total initial consideration, net of cash acquired | $ 2,628,000,000 | |||
Consideration transferred | $ 2,628,000,000 | |||
Cash acquired | 170,000,000 | |||
Other acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of business combinations | business | 8 | 0 | 3 | |
Total initial consideration, net of cash acquired | $ 270,000,000 | $ 46,000,000 | ||
Loans Payable [Member] | ||||
Business Acquisition [Line Items] | ||||
Principal amount of debt | 1,000,000,000 | |||
Revolving Credit Facility [Member] | ||||
Business Acquisition [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 750,000,000 |
Business Combinations and Equ45
Business Combinations and Equity and Cost Method Investments (Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 20, 2014 |
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 200 | $ 16 | ||
Goodwill | $ 2,554 | $ 2,405 | $ 2,414 | |
TriZetto [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 170 | |||
Trade accounts receivable | 83 | |||
Unbilled accounts receivable | 33 | |||
Other current assets | 11 | |||
Property and equipment | 124 | |||
Identifiable intangible assets | 849 | |||
Other noncurrent assets | 15 | |||
Accounts payable | (13) | |||
Deferred revenue | (48) | |||
Accrued expenses and other current liabilities | (118) | |||
Other noncurrent liabilities | (55) | |||
Deferred income tax liabilities, net | (209) | |||
Goodwill | 1,956 | |||
Total purchase price | $ 2,798 |
Business Combinations and Equ46
Business Combinations and Equity and Cost Method Investments (Schedule Intangible Assets Acquired) (Details) - USD ($) $ in Millions | Nov. 20, 2014 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,554 | $ 2,414 | $ 2,405 | |
Intangible assets acquired | $ 200 | $ 16 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years 5 months 12 days | 6 years 7 months | 5 years 2 months 15 days | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 786 | |||
TriZetto [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 1,956 | |||
Intangible assets acquired | 849 | |||
TriZetto [Member] | Trademarks [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 21 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 16 years 10 months 24 days | |||
TriZetto [Member] | Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 328 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 8 months 12 days | |||
TriZetto [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 437 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years 9 months 18 days | |||
TriZetto [Member] | Trademarks [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 63 | |||
Other acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 157 | $ 31 | ||
Other acquisitions [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 199 | $ 12 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 7 months | 6 years | ||
Other acquisitions [Member] | Other Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 1 | $ 4 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years 4 months | 3 years 1 month 6 days |
Business Combinations and Equ47
Business Combinations and Equity and Cost Method Investments (Supplemental Noncash Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2014 | |
TriZetto [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of assets acquired | $ 3,071 | |
Cash paid | (2,628) | |
Liabilities assumed | 443 | |
Other acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of assets acquired | $ 494 | |
Cash paid | (270) | $ (46) |
Liabilities assumed | $ 224 |
Business Combinations and Equ48
Business Combinations and Equity and Cost Method Investments (Pro Forma Information) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Transaction Related Professional Service Costs [Member] | |
Business Acquisition [Line Items] | |
Selling, general and administrative expenses | $ 41 |
Other Costs Incurred [Member] | |
Business Acquisition [Line Items] | |
Selling, general and administrative expenses | 94 |
TriZetto [Member] | |
Business Acquisition [Line Items] | |
Revenues | 10,893 |
Income from operations | $ 1,960 |
Business Combinations and Equ49
Business Combinations and Equity and Cost Method Investments Equity Method Investment (Details) - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2016 | Dec. 31, 2016 | |
Internal Investigation and Related Matters [Abstract] | ||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% |
Equity Method Investment, Aggregate Cost | $ 59 | |
Third-party Ownership Percentage in Equity Method Investee | 51.00% | |
Equity Method Investment, Contingent Additional Payments | $ 100 |
Business Combinations and Equ50
Business Combinations and Equity and Cost Method Investments Cost Method Investment (Details) $ in Millions | Dec. 31, 2016USD ($) |
Cost method investment [Abstract] | |
Cost Method Investment, Ownership Percentage | 5.70% |
Cost Method Investments | $ 5 |
Short-term Investments (Short-t
Short-term Investments (Short-term Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Trading investment securities | $ 25 | $ 0 |
Available-for-sale investment securities | 2,264 | 2,015 |
Held-to-maturity investment securities | 40 | 0 |
Time deposits | 806 | 809 |
Short-term Investments, Total | 3,135 | 2,824 |
U.S. Treasury And Agency Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale investment securities | 602 | 527 |
Corporate And Other Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale investment securities | 405 | 361 |
Commercial Paper and Certificates of Deposit [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale investment securities | 911 | 754 |
Held-to-maturity investment securities | 40 | 0 |
Asset-Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale investment securities | 231 | 230 |
Municipal Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale investment securities | 115 | 121 |
Mutual Fund [Member] | ||
Schedule of Investments [Line Items] | ||
Trading investment securities | 25 | 0 |
Available-for-sale investment securities | $ 0 | $ 22 |
Short-term Investments (Amortiz
Short-term Investments (Amortized Cost, Gross Unrealized Gains And Losses And Fair Value Of Investment Securities Available-For-Sale) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 2,270 | $ 2,022 |
Unrealized gains | 1 | 1 |
Unrealized losses | (7) | (8) |
Fair Vale | 2,264 | 2,015 |
U.S. Treasury And Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 605 | 529 |
Unrealized gains | 0 | 0 |
Unrealized losses | (3) | (2) |
Fair Vale | 602 | 527 |
Corporate And Other Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 407 | 362 |
Unrealized gains | 0 | 1 |
Unrealized losses | (2) | (2) |
Fair Vale | 405 | 361 |
Commercial Paper and Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 910 | 754 |
Unrealized gains | 1 | 0 |
Unrealized losses | 0 | 0 |
Fair Vale | 911 | 754 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 232 | 231 |
Unrealized gains | 0 | 0 |
Unrealized losses | (1) | (1) |
Fair Vale | 231 | 230 |
Municipal Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 116 | 121 |
Unrealized gains | 0 | 0 |
Unrealized losses | (1) | 0 |
Fair Vale | 115 | 121 |
Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 25 | |
Unrealized gains | 0 | |
Unrealized losses | (3) | |
Fair Vale | $ 0 | $ 22 |
Short-term Investments (Availab
Short-term Investments (Available-For-Sale Securities In A Continuous Unrealized Loss Position) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | $ 1,347 | $ 1,318 | |
Unrealized losses, less than 12 months | (7) | (5) | |
Fair value, 12 months or more | 3 | 36 | |
Unrealized losses, 12 months or more | 0 | (3) | |
Total fair value | 1,350 | 1,354 | |
Total unrealized losses | (7) | (8) | |
U.S. Treasury And Agency Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 526 | 476 | |
Unrealized losses, less than 12 months | (3) | (2) | |
Fair value, 12 months or more | 0 | 0 | |
Unrealized losses, 12 months or more | 0 | 0 | |
Total fair value | 526 | 476 | |
Total unrealized losses | (3) | (2) | |
Corporate And Other Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 342 | 315 | |
Unrealized losses, less than 12 months | (2) | (2) | |
Fair value, 12 months or more | 1 | 3 | |
Unrealized losses, 12 months or more | 0 | 0 | |
Total fair value | 343 | 318 | |
Total unrealized losses | (2) | (2) | |
Commercial Paper and Certificates of Deposit [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 185 | 272 | |
Unrealized losses, less than 12 months | 0 | 0 | |
Fair value, 12 months or more | 0 | 0 | |
Unrealized losses, 12 months or more | 0 | 0 | |
Total fair value | 185 | 272 | |
Total unrealized losses | 0 | 0 | |
Asset-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 206 | 199 | |
Unrealized losses, less than 12 months | (1) | (1) | |
Fair value, 12 months or more | 1 | 12 | |
Unrealized losses, 12 months or more | 0 | 0 | |
Total fair value | 207 | 211 | |
Total unrealized losses | (1) | (1) | |
Municipal Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 88 | 56 | |
Unrealized losses, less than 12 months | (1) | 0 | |
Fair value, 12 months or more | 1 | 0 | |
Unrealized losses, 12 months or more | 0 | 0 | |
Total fair value | 89 | 56 | |
Total unrealized losses | $ (1) | 0 | |
Mutual Fund [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 0 | ||
Unrealized losses, less than 12 months | 0 | ||
Fair value, 12 months or more | $ 22 | 21 | |
Unrealized losses, 12 months or more | (3) | ||
Total fair value | 21 | ||
Total unrealized losses | $ (3) |
Short-term Investments (Contrac
Short-term Investments (Contractual Maturities Of Investments In Debt Securities Available-For-Sale) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Amortized Cost | |
Due within one year | $ 1,061 |
Due after one year up to two years | 482 |
Due after two years up to three years | 362 |
Due after three years | 133 |
Asset-backed securities | 232 |
Amortized Cost | 2,270 |
Fair Value | |
Due within one year | 1,061 |
Due after one year up to two years | 480 |
Due after two years up to three years | 360 |
Due after three years | 132 |
Asset-backed securities | 231 |
Fair Value | $ 2,264 |
Short-term Investments (Gross G
Short-term Investments (Gross Gains (Losses) Realized On Sales, Maturities And Other Securities Transactions Related To Investment Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments [Abstract] | |||
Proceeds from sales of available-for-sale investment securities | $ 3,541 | $ 782 | $ 1,476 |
Gross gains | 5 | 1 | 2 |
Gross losses | (4) | 0 | 0 |
Net realized gains on sales of available-for-sale investment securities | $ 1 | $ 1 | $ 2 |
Short-term Investments Held-to-
Short-term Investments Held-to-maturity Investments (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities | $ 40,000,000 | $ 0 |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 40,000,000 | |
Commercial Paper and Certificates of Deposit [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities | 40,000,000 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | $ 40,000,000 |
Short-term Investments Narrativ
Short-term Investments Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Trading Securities | $ 0 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 3,000,000 | 36,000,000 | |||
Available-for-sale Securities, Gross Realized Losses | 4,000,000 | 0 | $ 0 | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 0 | ||||
Held-to-maturity Securities | $ 40,000,000 | 0 | |||
Mutual Fund [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 22,000,000 | $ 21,000,000 | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | $ 3,000,000 | ||||
Available-for-sale Securities, Gross Realized Losses | $ 3,000,000 |
Property and Equipment, net (Na
Property and Equipment, net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Capital Leased Assets, Gross | $ 37 | $ 46 | |
Leasehold for land lease terms, maximum years | 99 years | ||
Property, Plant and Equipment [Member] | |||
Depreciation | $ 266 | $ 233 | $ 172 |
Property and Equipment, net (Sc
Property and Equipment, net (Schedule Of Property And Equipment, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | $ 2,624 | $ 2,350 | |
Accumulated depreciation and amortization | (1,313) | (1,079) | |
Property and Equipment, net | $ 1,311 | 1,271 | $ 1,247 |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 30 years | ||
Property and Equipment, gross | $ 823 | 805 | |
Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | $ 849 | 697 | |
Computer Equipment and Software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Computer Equipment and Software [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 8 years | ||
Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | $ 431 | 384 | |
Furniture and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Furniture and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 9 years | ||
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | $ 23 | 23 | |
Leasehold Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 63 | 63 | |
Capital Work-in-Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 169 | 115 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | $ 266 | $ 263 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets, net (Schedule Of Goodwill Allocation By Reportable Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 2,405 | $ 2,414 |
Additions | 157 | 5 |
Foreign currency translation adjustments | (8) | (14) |
Goodwill, Ending Balance | 2,554 | 2,405 |
Financial Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 203 | 205 |
Additions | 28 | 5 |
Foreign currency translation adjustments | (4) | (7) |
Goodwill, Ending Balance | 227 | 203 |
Healthcare [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 2,076 | 2,080 |
Additions | 14 | 0 |
Foreign currency translation adjustments | (1) | (4) |
Goodwill, Ending Balance | 2,089 | 2,076 |
Manufacturing/Retail/Logistics [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 67 | 69 |
Additions | 94 | 0 |
Foreign currency translation adjustments | (2) | (2) |
Goodwill, Ending Balance | 159 | 67 |
Other [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 59 | 60 |
Additions | 21 | 0 |
Foreign currency translation adjustments | (1) | (1) |
Goodwill, Ending Balance | $ 79 | $ 59 |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets, net (Schedule Of Components For Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated amortization | $ (337) | $ (226) | |
Intangible Assets, Gross (Excluding Goodwill) | 1,288 | 1,090 | |
Intangible assets, net | 951 | 864 | |
Indefinite life trademarks | 63 | 63 | |
Amortization of intangibles | 113 | 97 | $ 36 |
Amortization Expense Recorded As A Reduction Of Revenues | 20 | 5 | $ 8 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 845 | 650 | |
Accumulated amortization | (219) | (158) | |
Net carrying amount | 626 | 492 | |
Developed Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 332 | 332 | |
Accumulated amortization | (96) | (52) | |
Net carrying amount | 236 | 280 | |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 48 | 45 | |
Accumulated amortization | (22) | (16) | |
Net carrying amount | $ 26 | $ 29 |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets, net (Schedule Of Estimated Amortization Expense) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 124 |
2,018 | 117 |
2,019 | 114 |
2,020 | 107 |
2,021 | $ 104 |
Accrued Expenses and Other Cu63
Accrued Expenses and Other Current Liabilities (Accrued Expenses And Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Expenses And Other Current Liabilities [Abstract] | ||
Compensation and benefits | $ 1,134 | $ 1,272 |
Income taxes | 10 | 17 |
Professional fees | 99 | 70 |
Travel and entertainment | 36 | 30 |
Customer volume incentives | 258 | 236 |
Derivative financial instruments | 4 | 11 |
Other | 315 | 183 |
Accrued expenses and other current liabilities | $ 1,856 | $ 1,819 |
Debt (Details)
Debt (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2014 | Nov. 20, 2014USD ($) | |
Term Loan and Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum debt to equity ratio under covenants | 0.40 | ||
Term Loan and Revolving Credit Facility [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.00% | ||
Term Loan and Revolving Credit Facility [Member] | Minimum [Member] | Eurocurrency [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
Term Loan and Revolving Credit Facility [Member] | Minimum [Member] | Eurocurrency Without Debt Ratings [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.875% | ||
Term Loan and Revolving Credit Facility [Member] | Maximum [Member] | Eurocurrency [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Term Loan and Revolving Credit Facility [Member] | Maximum [Member] | Eurocurrency Without Debt Ratings [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | $ 1,000,000,000 | ||
Interest rate at period end | 1.80% | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 750,000,000 | ||
Line of Credit Facility, Maximum Period Drawn Notes Have Been Outstanding | 90 days |
Debt (Short-Term Debt (Details)
Debt (Short-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Total short-term debt | $ 81 | $ 406 |
Revolving Credit Facility [Member] | ||
Short-term Debt [Line Items] | ||
Notes drawn under Revolving Facility | 0 | 350 |
Term Loan [Member] | ||
Short-term Debt [Line Items] | ||
Term Loan - Current Maturities | $ 81 | $ 56 |
Debt (Long-Term Debt) (Details)
Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 881 | |
Long-term debt, net of current maturities | 797 | $ 877 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 881 | 937 |
Less: Current portion | (81) | (56) |
Long-term debt, net of current maturities | 797 | 877 |
Term Loan and Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Net | $ (3) | $ (4) |
Debt (Debt Maturities) (Details
Debt (Debt Maturities) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 81 |
2,018 | 100 |
2,019 | 700 |
Long-term debt | $ 881 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Income Tax Expense (Benefit) | $ 805 | $ 540 | $ 485 | |
Deferred income taxes related to MAT | $ 286 | 252 | ||
Minimum alternative tax, expiration period (in years) | 10 years | |||
Incentive period for SEZs, years | 15 years | |||
Regular corporate income tax rate in India | 34.60% | |||
Minimum alternative tax, rate | 21.30% | |||
Income tax holiday, increase in net income | $ 203 | $ 201 | $ 183 | |
Increase in diluted EPS | $ 0.33 | $ 0.33 | $ 0.30 | |
Unrepatriated foreign earnings | $ 7,930 | |||
Accrued interest and penalties | 7 | $ 11 | ||
India | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unrepatriated foreign earnings | 5,298 | |||
Foreign Tax Authority [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Net operating loss carryforward | 34 | |||
Internal Revenue Service (IRS) [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Net operating loss carryforward | 13 | |||
India Cash Remittance [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Foreign Earnings Repatriated | $ 2,800 | |||
Income Tax Expense (Benefit) | $ 238 | |||
India Cash Remittance [Member] | UNITED STATES | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Foreign Earnings Repatriated | 1,200 | |||
Foreign Earnings Repatriated, Net of Tax | 1,000 | |||
India Cash Remittance [Member] | Non-US [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Foreign Earnings Repatriated | $ 1,600 |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Before Provision For Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 752 | $ 739 | $ 589 |
Foreign | 1,605 | 1,425 | 1,335 |
Income before provision for income taxes | $ 2,357 | $ 2,164 | $ 1,924 |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components Of Provision For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal and state | $ 544 | $ 352 | $ 261 |
Foreign | 352 | 314 | 324 |
Total current provision | 896 | 666 | 585 |
Deferred: | |||
Federal and state | (44) | (58) | (20) |
Foreign | (47) | (68) | (80) |
Total deferred benefit | (91) | (126) | (100) |
Total provision for income taxes | $ 805 | $ 540 | $ 485 |
Income Taxes (Reconciliation Be
Income Taxes (Reconciliation Between Effective Income Tax Rate And U.S. Federal Statutory Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Tax expense, at U.S. federal statutory rate, amount | $ 825 | $ 757 | $ 673 |
State and local income taxes, net of federal benefit, amount | 42 | 42 | 35 |
Non-taxable income for Indian tax purposes, amount | (203) | (201) | (183) |
Rate differential on foreign earnings, amount | (55) | (34) | (32) |
Other adjustments, amount | 15 | (1) | 8 |
Credits and other incentives, amount | (57) | (23) | (16) |
Total provision for income taxes | $ 805 | $ 540 | $ 485 |
Tax expense, at U.S. federal statutory rate, percentage | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal benefit, percentage | 1.80% | 2.00% | 1.80% |
Non-taxable income for Indian tax purposes, percentage | (8.60%) | (9.30%) | (9.50%) |
Rate differential on foreign earnings, percentage | (2.30%) | (1.60%) | (1.70%) |
Other adjustments, percent | 0.60% | (0.10%) | 0.40% |
Credits and other incentives, percent | (2.40%) | (1.00%) | (0.80%) |
Total provision for income taxes, percentage | 34.20% | 25.00% | 25.20% |
India Cash Remittance [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Other adjustments, amount | $ 238 | $ 0 | $ 0 |
Total provision for income taxes | $ 238 | ||
Other adjustments, percent | 10.10% | 0.00% | 0.00% |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets: | ||
Net operating losses | $ 14 | $ 6 |
Revenue recognition | 69 | 72 |
Compensation and benefits | 165 | 194 |
Stock-based compensation | 25 | 26 |
Minimum alternative tax (MAT) and other credits | 274 | 219 |
Other accrued expenses | 161 | 111 |
Other | 0 | 3 |
Deferred income tax assets, gross | 708 | 631 |
Less valuation allowance | (10) | (10) |
Deferred income tax assets, net | 698 | 621 |
Deferred income tax liabilities: | ||
Depreciation and amortization | 266 | 276 |
Other | 13 | 0 |
Deferred income tax liabilities | 279 | 276 |
Net deferred income tax assets | $ 419 | $ 345 |
Income Taxes (Summary Of Change
Income Taxes (Summary Of Changes In Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in unrecognized income tax benefits | ||
Balance, beginning of year | $ 139 | $ 136 |
Additions based on tax positions related to the current year | 11 | 21 |
Additions for tax positions of prior years | 19 | 6 |
Additions for tax positions of acquired subsidiaries | 0 | 0 |
Reductions for tax positions due to lapse of statutes of limitations | (15) | (23) |
Reductions for tax positions of prior years | (1) | 0 |
Settlements | 0 | 0 |
Foreign currency exchange movement | (2) | (1) |
Balance, end of year | $ 151 | $ 139 |
Derivative Financial Instrume74
Derivative Financial Instruments (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash flow hedge losses expected to be reclassified to earnings within the next 12 months | $ 26 |
Cash flow hedge ineffectiveness is immaterial | Hedge ineffectiveness was immaterial for all periods presented. |
Derivative Financial Instrume75
Derivative Financial Instruments (Location And Fair Values Of Derivative Financial Instruments In Our Consolidated Statement Of Financial Position) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | $ 51 | $ 9 |
Derivative liabilities fair value | 4 | 25 |
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 51 | 9 |
Derivative liabilities fair value | 0 | 24 |
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 34 | 7 |
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 17 | 2 |
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities fair value | 0 | 10 |
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities fair value | 0 | 14 |
Other Derivatives [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 0 | 0 |
Derivative liabilities fair value | 4 | 1 |
Other Derivatives [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities fair value | $ 4 | $ 1 |
Derivative Financial Instrume76
Derivative Financial Instruments (Notional Value Of Outstanding Cash Flow Hedge Contracts By Year Of Maturity And Net Unrealized (Loss) Gain Included In Accumulated Other Comprehensive Income) (Details) - Cash Flow Hedges [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Foreign Exchange Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 2,340 | $ 2,445 |
Net unrealized gains (losses) included in accumulated other comprehensive income (loss), net of taxes | 39 | (12) |
Foreign Exchange Forward, Maturity 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 0 | 1,215 |
Foreign Exchange Forward, Maturity 2017 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1,320 | 900 |
Foreign Exchange Forward, Maturity 2018 [Member] [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,020 | $ 330 |
Derivative Financial Instrume77
Derivative Financial Instruments (Location And Amounts Of Pre-Tax Gains (Losses) On Cash Flow Hedge Derivatives Financial Instruments) (Details) - Cash Flow Hedges [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 17 | $ (71) |
Cost Of Revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 14 | (59) |
Selling, General and Administrative Expenses [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3 | (12) |
Foreign Exchange Forward Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Increase) Decrease in Derivative Losses Recognized in Accumulated Other Comprehensive Income (Loss) (effective portion) | $ 83 | $ 17 |
Derivative Financial Instrume78
Derivative Financial Instruments (Additional Information Related To Outstanding Contracts Not Designated As Hedging Instruments) (Details) - Not Designated as Hedging Instrument [Member] - Foreign Exchange Forward Contracts [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative, notional amount | $ 213 | $ 166 |
Market value | $ (4) | $ (1) |
Derivative Financial Instrume79
Derivative Financial Instruments (Location And Amounts Of Pre-Tax Gains (Losses) On Derivative Financial Instruments Not Designated As Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | Foreign Currency Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of net gains (losses) on derivative instruments | $ (3) | $ 0 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets And (Liabilities) Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | $ 40 | |
Trading investment securities | 25 | $ 0 |
Available-for-sale investment securities | 2,264 | 2,015 |
U.S. Treasury And Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 602 | 527 |
Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 405 | 361 |
Commercial Paper and Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 40 | |
Available-for-sale investment securities | 911 | 754 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 231 | 230 |
Municipal Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 115 | 121 |
Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investment securities | 25 | 0 |
Available-for-sale investment securities | 0 | 22 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 755 | 496 |
Time deposits | 806 | 809 |
Available-for-sale investment securities | 2,264 | 1,993 |
Held-to-maturity Securities, Fair Value | 40 | |
Investments | 3,110 | 2,802 |
Total | 3,912 | 3,282 |
Fair Value, Measurements, Recurring [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 34 | 7 |
Fair Value, Measurements, Recurring [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | (4) | (11) |
Fair Value, Measurements, Recurring [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 17 | 2 |
Fair Value, Measurements, Recurring [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | 0 | (14) |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury And Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 602 | 527 |
Fair Value, Measurements, Recurring [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 405 | 361 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper and Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 911 | 754 |
Held-to-maturity Securities, Fair Value | 40 | |
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 231 | 230 |
Fair Value, Measurements, Recurring [Member] | Municipal Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 115 | 121 |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 624 | 496 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 131 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 624 | 496 |
Time deposits | 0 | 0 |
Available-for-sale investment securities | 558 | 464 |
Held-to-maturity Securities, Fair Value | 0 | |
Investments | 558 | 464 |
Total | 1,182 | 960 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. Treasury And Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 558 | 464 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commercial Paper and Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | |
Held-to-maturity Securities, Fair Value | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 624 | 496 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 131 | |
Time deposits | 806 | 809 |
Available-for-sale investment securities | 1,706 | 1,529 |
Held-to-maturity Securities, Fair Value | 40 | |
Investments | 2,552 | 2,338 |
Total | 2,730 | 2,322 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 34 | 7 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | (4) | (11) |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 17 | 2 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | 0 | (14) |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Treasury And Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 44 | 63 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 405 | 361 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial Paper and Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 911 | 754 |
Held-to-maturity Securities, Fair Value | 40 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 231 | 230 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Municipal Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 115 | 121 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 131 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | 0 |
Time deposits | 0 | 0 |
Available-for-sale investment securities | 0 | 0 |
Held-to-maturity Securities, Fair Value | 0 | |
Investments | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | U.S. Treasury And Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commercial Paper and Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Held-to-maturity Securities, Fair Value | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Municipal Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | 0 | $ 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents | $ 0 |
Accumulated Other Comprehensi81
Accumulated Other Comprehensive Income (Loss) (Schedule Of Changes In Accumulated Other Comprehensive Income (Loss) By Component) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
AOCI, beginning balance | $ 9,278 | $ 7,740 | $ 6,136 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Other comprehensive income (loss) | (8) | 17 | 153 |
AOCI, ending balance | 10,728 | 9,278 | 7,740 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
AOCI before tax, beginning balance | (90) | (35) | 24 |
AOCI tax, beginning balance | 0 | 0 | 0 |
AOCI, beginning balance | (90) | (35) | 24 |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (59) | (55) | (59) |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Other comprehensive income (loss) | (59) | (55) | (59) |
AOCI before tax, ending balance | (149) | (90) | (35) |
AOCI tax, ending balance | 0 | 0 | 0 |
AOCI, ending balance | (149) | (90) | (35) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
AOCI before tax, beginning balance | (7) | (2) | 0 |
AOCI tax, beginning balance | 3 | 1 | 0 |
AOCI, beginning balance | (4) | (1) | 0 |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
OCI, before Reclassifications, before Tax, Attributable to Parent | 5 | (4) | 0 |
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | (4) | (1) | (2) |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 1 | (5) | (2) |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (2) | 1 | 0 |
Reclassification from AOCI, Current Period, Tax | 1 | 1 | 1 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (1) | 2 | 1 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 3 | (3) | 0 |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (3) | 0 | (1) |
Other comprehensive income (loss) | 0 | (3) | (1) |
AOCI before tax, ending balance | (6) | (7) | (2) |
AOCI tax, ending balance | 2 | 3 | 1 |
AOCI, ending balance | (4) | (4) | (1) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
AOCI before tax, beginning balance | (15) | (103) | (355) |
AOCI tax, beginning balance | 3 | 16 | 55 |
AOCI, beginning balance | (12) | (87) | (300) |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
OCI, before Reclassifications, before Tax, Attributable to Parent | 83 | 17 | 116 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 66 | 88 | 252 |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (19) | 0 | (18) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (15) | (13) | (39) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 64 | 17 | 98 |
Other comprehensive income (loss) | 51 | 75 | 213 |
AOCI before tax, ending balance | 51 | (15) | (103) |
AOCI tax, ending balance | (12) | 3 | 16 |
AOCI, ending balance | 39 | (12) | (87) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Cost Of Revenues [Member] | |||
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | (14) | 59 | 113 |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Reclassification from AOCI, Current Period, Tax | 3 | (11) | (17) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (11) | 48 | 96 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Selling, General and Administrative Expenses [Member] | |||
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | (3) | 12 | 23 |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Reclassification from AOCI, Current Period, Tax | 1 | (2) | (4) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (2) | 10 | 19 |
AOCI Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
AOCI before tax, beginning balance | (112) | (140) | (331) |
AOCI tax, beginning balance | 6 | 17 | 55 |
AOCI, beginning balance | (106) | (123) | (276) |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 8 | 28 | 191 |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (16) | (11) | (38) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Other comprehensive income (loss) | (8) | 17 | 153 |
AOCI before tax, ending balance | (104) | (112) | (140) |
AOCI tax, ending balance | (10) | 6 | 17 |
AOCI, ending balance | $ (114) | $ (106) | $ (123) |
Commitments and Contingencies82
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||
Rent expense | $ 227 | $ 212 | $ 191 |
Outstanding fixed capital commitments related to our India development center expansion program | 176 | ||
Internal Investigation and Related Matters [Member] | |||
Loss Contingencies [Line Items] | |||
Potential Improper Payments | $ 6 |
Commitments and Contingencies83
Commitments and Contingencies (Operating Leases) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 159 |
2,018 | 136 |
2,019 | 126 |
2,020 | 105 |
2,021 | 76 |
Thereafter | 173 |
Total minimum lease payments | $ 775 |
Commitments and Contingencies84
Commitments and Contingencies (Capital Leases) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 3 |
2,018 | 4 |
2,019 | 4 |
2,020 | 4 |
2,021 | 4 |
Thereafter | 28 |
Total minimum lease payments | 47 |
Interest | (13) |
Present value of minimum lease payments | $ 34 |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gratuity Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount accrued under gratuity plan net of fund assets | $ 106 | $ 98 | |
Fund assets | 103 | 78 | |
Pension and Other Postretirement Benefit Expense | 41 | 30 | $ 36 |
United States and Europe [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan expense | 76 | 62 | 45 |
India | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 79 | $ 71 | $ 63 |
Employee contribution percentage, maximum | 12.00% |
Stock-Based Compensation Plan86
Stock-Based Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 05, 2009 | |
2009 Incentive Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Shares authorized | 48,000,000 | |||
Shares available for grant | 7,000,000 | |||
Stock Options [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Vesting period | 4 years | |||
Unrecognized stock-based compensation expense | $ 1 | |||
Weighted average remaining requisite service period | 1 year 1 month 16 days | |||
Total intrinsic value of options exercised | $ 74 | $ 59 | $ 58 | |
Restricted Stock Units [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Unrecognized stock-based compensation expense | $ 222 | |||
Weighted average remaining requisite service period | 2 years 18 days | |||
Performance Stock Units [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Unrecognized stock-based compensation expense | $ 47 | |||
Weighted average remaining requisite service period | 1 year 2 months 16 days | |||
Employee Stock [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Shares authorized | 28,000,000 | |||
Shares available for grant | 5,000,000 | |||
Vesting period | 3 months | |||
Eligible employees purchase percentage of whole share of fair market value | 90.00% | |||
Shares issued | 3,000,000 | |||
Fair value of shares issued | $ 26 | |||
Non-Employee Directors [Member] | Stock Options [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Vesting period | 2 years | |||
Minimum [Member] | Stock Options [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Life of share-based payment award | 7 years | |||
Minimum [Member] | Restricted Stock Units [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Vesting period | 3 years | |||
Minimum [Member] | Performance Stock Units [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Vesting period | 1 year | |||
Maximum [Member] | Stock Options [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Life of share-based payment award | 10 years | |||
Maximum [Member] | Restricted Stock Units [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Vesting period | 4 years | |||
Maximum [Member] | Performance Stock Units [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Vesting period | 3 years |
Stock-Based Compensation Plan87
Stock-Based Compensation Plans (Schedule Of Allocation Of Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 217 | $ 192 | $ 135 |
Income tax benefit | 49 | 46 | 31 |
Cost Of Revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 53 | 39 | 27 |
Selling, General and Administrative Expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 164 | $ 153 | $ 108 |
Stock-Based Compensation Plan88
Stock-Based Compensation Plans (Schedule Of Assumptions Used To Calculate The Fair Value Of Option Grants) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock Options [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Weighted average volatility factor | 28.30% | 28.10% | 28.70% |
Weighted average expected life (in years) | 4 years 5 months 16 days | 4 years 3 months 15 days | 3 years 11 months 1 day |
Weighted average risk-free interest rate | 1.10% | 1.40% | 1.30% |
Weighted average grant date fair value | $ 15.17 | $ 16.53 | $ 11.81 |
Employee Stock [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Weighted average volatility factor | 26.50% | 25.80% | 24.90% |
Weighted average expected life (in years) | 3 months | 3 months | 3 months |
Weighted average risk-free interest rate | 0.40% | 0.10% | 0.00% |
Weighted average grant date fair value | $ 8.74 | $ 9.04 | $ 7.29 |
Stock-Based Compensation Plan89
Stock-Based Compensation Plans (Summary Of The Activity For Stock Options) (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Number of Options | |
Number of Options, Outstanding at beginning of year | shares | 4.2 |
Number of Options, Granted | shares | 0.1 |
Number of Options, Exercised | shares | (1.9) |
Number of Options, Cancelled | shares | 0 |
Number of Options, Expired | shares | 0 |
Number of Options, Outstanding at end of period | shares | 2.4 |
Number of Options, Vested and expected to vest at end of year | shares | 2.4 |
Number of Options, Exercisable at end of year | shares | 2.3 |
Weighted Average Exercise Price (in dollars) | |
Weighted Average Exercise Price, Outstanding at beginning of year | $ / shares | $ 19.09 |
Weighted Average Exercise Price, Granted | $ / shares | 59.64 |
Weighted Average Exercise Price, Exercised | $ / shares | 18.07 |
Weighted Average Exercise Price, Cancelled | $ / shares | 0 |
Weighted Average Exercise Price, Expired | $ / shares | 0 |
Weighted Average Exercise Price, Outstanding at end of year | $ / shares | 21.08 |
Weighted Average Exercise Price, Vested and expected to vest at end of year | $ / shares | 20.95 |
Weighted Average Exercise Price, Exercisable at end of year | $ / shares | $ 19.36 |
Weighted Average Remaining Life, Outstanding at end of year (in years) | 1 year 7 months 6 days |
Weighted Average Remaining Life, Vested and expected to vest at end of year (in years) | 1 year 6 months |
Weighted Average Remaining Life, Exercisable at end of year (in years) | 1 year 3 months 15 days |
Aggregate Intrinsic Value, Outstanding at end of year | $ | $ 84 |
Aggregate Intrinsic Value, Vested and expected to vest at end of year | $ | 84 |
Aggregate Intrinsic Value, Exercisable at end of year | $ | $ 84 |
Stock-Based Compensation Plan90
Stock-Based Compensation Plans (Summary Of The Activity For Performance Stock Units) (Details) - Performance Stock Units [Member] shares in Millions | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Number of Units | |
Number of Units, Unvested at beginning of period | shares | 2.5 |
Number of Units, Granted | shares | 2.2 |
Number of Units, Vested | shares | (1) |
Number of Units, Forfeited | shares | (0.5) |
Number of Units, Reduction due to the achievement of lower than maximum performance milestones | shares | (0.5) |
Number of Units, Unvested at end of period | shares | 2.7 |
Weighted Average Grant Date Fair Value (in dollars) | |
Weighted Average Grant Date Fair Value, Unvested at beginning of period | $ / shares | $ 55.69 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 55.08 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 51.34 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 55.12 |
Weighted Average Grant Date Fair Value, Reduction due to the achievement of lower than maximum performance milestones | $ / shares | 64.38 |
Weighted Average Grant Date Fair Value, Unvested at end of period | $ / shares | $ 55.24 |
Stock-Based Compensation Plan91
Stock-Based Compensation Plans (Summary Of The Activity For Restricted Stock Units) (Details) - Restricted Stock Units [Member] shares in Millions | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Number of Units | |
Number of Units, Unvested at beginning of period | shares | 4.7 |
Number of Units, Granted | shares | 2.9 |
Number of Units, Vested | shares | (2.4) |
Number of Units, Forfeited | shares | (0.4) |
Number of Units, Unvested at end of period | shares | 4.8 |
Weighted Average Grant Date Fair Value (in dollars) | |
Weighted Average Grant Date Fair Value, Unvested at beginning of period | $ / shares | $ 55.50 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 55.55 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 53.37 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 57.03 |
Weighted Average Grant Date Fair Value, Unvested at end of period | $ / shares | $ 56.45 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Related Party Transactions [Abstract] | |
Related Party Transaction, Purchases from Related Party | $ 2 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Percentage of consolidated revenues and segment operating profit, maximum | 10.00% |
Segment Information (Revenues F
Segment Information (Revenues From External Customers And Segment Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 3,462 | $ 3,453 | $ 3,370 | $ 3,202 | $ 3,233 | $ 3,187 | $ 3,085 | $ 2,911 | $ 13,487 | $ 12,416 | $ 10,263 |
Income from operations | $ 561 | $ 583 | $ 591 | $ 554 | $ 553 | $ 543 | $ 546 | $ 500 | 2,289 | 2,142 | 1,885 |
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from operations | 4,199 | 4,098 | 3,249 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Less: unallocated costs | 1,910 | 1,956 | 1,364 | ||||||||
Operating Segments [Member] | Financial Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 5,366 | 5,003 | 4,286 | ||||||||
Income from operations | 1,707 | 1,642 | 1,320 | ||||||||
Operating Segments [Member] | Healthcare [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,871 | 3,668 | 2,689 | ||||||||
Income from operations | 1,153 | 1,200 | 851 | ||||||||
Operating Segments [Member] | Manufacturing/Retail/Logistics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,660 | 2,344 | 2,094 | ||||||||
Income from operations | 851 | 803 | 686 | ||||||||
Operating Segments [Member] | Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,590 | 1,401 | 1,194 | ||||||||
Income from operations | $ 488 | $ 453 | $ 392 |
Segment Information (Revenues A
Segment Information (Revenues And Long-Lived Assets By Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Geographic Areas, Revenues | |||||||||||
Revenues | $ 3,462 | $ 3,453 | $ 3,370 | $ 3,202 | $ 3,233 | $ 3,187 | $ 3,085 | $ 2,911 | $ 13,487 | $ 12,416 | $ 10,263 |
Geographic Areas, Long-Lived Assets | |||||||||||
Long-lived assets | 1,311 | 1,271 | 1,311 | 1,271 | 1,247 | ||||||
North America [Member] | |||||||||||
Geographic Areas, Revenues | |||||||||||
Revenues | 10,546 | 9,759 | 7,880 | ||||||||
Geographic Areas, Long-Lived Assets | |||||||||||
Long-lived assets | 279 | 242 | 279 | 242 | 188 | ||||||
United Kingdom [Member] | |||||||||||
Geographic Areas, Revenues | |||||||||||
Revenues | 1,176 | 1,188 | 1,099 | ||||||||
Europe, excluding United Kingdom [Member] | |||||||||||
Geographic Areas, Revenues | |||||||||||
Revenues | 969 | 820 | 785 | ||||||||
Europe [Member] | |||||||||||
Geographic Areas, Revenues | |||||||||||
Revenues | 2,145 | 2,008 | 1,884 | ||||||||
Geographic Areas, Long-Lived Assets | |||||||||||
Long-lived assets | 52 | 32 | 52 | 32 | 30 | ||||||
Rest of World [Member] | |||||||||||
Geographic Areas, Revenues | |||||||||||
Revenues | 796 | 649 | 499 | ||||||||
Geographic Areas, Long-Lived Assets | |||||||||||
Long-lived assets | $ 980 | $ 997 | $ 980 | $ 997 | $ 1,029 |
Quarterly Financial Data (Una96
Quarterly Financial Data (Unaudited) (Summary Of Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $ 3,462 | $ 3,453 | $ 3,370 | $ 3,202 | $ 3,233 | $ 3,187 | $ 3,085 | $ 2,911 | $ 13,487 | $ 12,416 | $ 10,263 |
Cost of revenues (exclusive of depreciation and amortization expense shown separately below) | 2,078 | 2,077 | 2,038 | 1,915 | 1,933 | 1,935 | 1,845 | 1,727 | 8,108 | 7,440 | 6,141 |
Selling, general and administrative expenses | 730 | 701 | 654 | 646 | 659 | 627 | 612 | 611 | 2,731 | 2,509 | 2,037 |
Depreciation and amortization expense | 93 | 92 | 87 | 87 | 88 | 82 | 82 | 73 | 359 | 325 | 200 |
Income from operations | 561 | 583 | 591 | 554 | 553 | 543 | 546 | 500 | 2,289 | 2,142 | 1,885 |
Net income | $ 416 | $ 444 | $ 252 | $ 441 | $ 424 | $ 397 | $ 420 | $ 383 | $ 1,553 | $ 1,624 | $ 1,439 |
Basic earnings per share | $ 0.69 | $ 0.73 | $ 0.42 | $ 0.73 | $ 0.70 | $ 0.65 | $ 0.69 | $ 0.63 | $ 2.56 | $ 2.67 | $ 2.37 |
Diluted earnings per share | $ 0.68 | $ 0.73 | $ 0.41 | $ 0.72 | $ 0.69 | $ 0.65 | $ 0.68 | $ 0.62 | $ 2.55 | $ 2.65 | $ 2.35 |
Valuation And Qualifying Acco97
Valuation And Qualifying Accounts (Valuation And Qualifying Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Receivable Allowance For Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 39 | $ 37 | $ 27 |
Charged to Costs and Expenses | 12 | 10 | 5 |
Charged to Other Accounts | 0 | 0 | 6 |
Deductions/Other | 3 | 8 | 1 |
Balance at End of Period | 48 | 39 | 37 |
Warranty Accrual [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 24 | 21 | 18 |
Charged to Costs and Expenses | 28 | 28 | 25 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions/Other | 26 | 25 | 22 |
Balance at End of Period | 26 | 24 | 21 |
Valuation Allowance - Deferred Income Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 10 | 11 | 6 |
Charged to Costs and Expenses | 0 | 3 | 0 |
Charged to Other Accounts | 0 | 0 | 5 |
Deductions/Other | 0 | 4 | 0 |
Balance at End of Period | $ 10 | $ 10 | $ 11 |