Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-24429 | |
Entity Registrant Name | COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3728359 | |
Entity Address, Address Line One | 300 Frank W. Burr Blvd. | |
Entity Address, City or Town | Teaneck | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07666 | |
City Area Code | 201 | |
Local Phone Number | 801-0233 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value per share | |
Trading Symbol | CTSH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 505,041,392 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001058290 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false |
Consolidated Statements Of Fina
Consolidated Statements Of Financial Position (Unaudited) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,055 | $ 2,191 |
Short-term investments | 40 | 310 |
Trade accounts receivable, net | 3,755 | 3,796 |
Other current assets | 1,101 | 969 |
Total current assets | 6,951 | 7,266 |
Property and equipment, net | 1,087 | 1,101 |
Operating lease assets, net | 788 | 876 |
Goodwill | 6,065 | 5,710 |
Intangible assets, net | 1,228 | 1,168 |
Deferred income tax assets, net | 762 | 642 |
Long-term investments | 425 | 427 |
Other noncurrent assets | 661 | 662 |
Total assets | 17,967 | 17,852 |
Current liabilities: | ||
Accounts payable | 318 | 360 |
Deferred revenue | 380 | 398 |
Short-term debt | 24 | 8 |
Operating lease liabilities | 171 | 174 |
Accrued expenses and other current liabilities | 2,163 | 2,407 |
Total current liabilities | 3,056 | 3,347 |
Deferred revenue, noncurrent | 30 | 19 |
Operating lease liabilities, noncurrent | 664 | 714 |
Deferred income tax liabilities, net | 220 | 180 |
Long-term debt | 622 | 638 |
Long-term income taxes payable | 157 | 283 |
Other noncurrent liabilities | 315 | 362 |
Total liabilities | 5,064 | 5,543 |
Commitments and contingencies (See Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, $0.10 par value, 15 shares authorized, none issued | 0 | 0 |
Class A common stock, $0.01 par value, 1,000 shares authorized, 505 and 509 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 5 | 5 |
Additional paid-in capital | 17 | 15 |
Retained earnings | 13,022 | 12,588 |
Accumulated other comprehensive income (loss) | (141) | (299) |
Total stockholders’ equity | 12,903 | 12,309 |
Total liabilities and stockholders’ equity | $ 17,967 | $ 17,852 |
Consolidated Statements Of Fi_2
Consolidated Statements Of Financial Position (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred Stock, Shares Authorized | 15,000,000 | 15,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Class A common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 505,000,000 | 509,000,000 |
Common Stock, Shares, Outstanding | 505,000,000 | 509,000,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 4,886 | $ 4,906 | $ 9,698 | $ 9,732 |
Operating expenses: | ||||
Cost of revenues (exclusive of depreciation and amortization expense shown separately below) | 3,231 | 3,119 | 6,374 | 6,216 |
Selling, general and administrative expenses | 830 | 883 | 1,665 | 1,745 |
Restructuring charges | 117 | 0 | 117 | 0 |
Depreciation and amortization expense | 131 | 144 | 263 | 287 |
Income from operations | 577 | 760 | 1,279 | 1,484 |
Other income (expense), net: | ||||
Interest income | 30 | 9 | 60 | 15 |
Interest expense | (10) | (3) | (19) | (5) |
Foreign currency exchange gains (losses), net | (9) | (4) | 3 | (4) |
Other, net | (1) | (1) | 2 | 0 |
Total other income (expense), net | 10 | 1 | 46 | 6 |
Income before provision for income taxes | 587 | 761 | 1,325 | 1,490 |
Provision for income taxes | (124) | (184) | (282) | (354) |
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | 4 |
Net income | $ 463 | $ 577 | $ 1,043 | $ 1,140 |
Basic earnings per share (usd per share) | $ 0.92 | $ 1.11 | $ 2.05 | $ 2.18 |
Diluted earnings per share (usd per share) | $ 0.91 | $ 1.11 | $ 2.05 | $ 2.18 |
Weighted average number of common shares outstanding - Basic (shares) | 506 | 520 | 508 | 522 |
Dilutive effect of shares issuable under stock-based compensation plans (shares) | 1 | 1 | 0 | 1 |
Weighted average number of common shares outstanding - Diluted (shares) | 507 | 521 | 508 | 523 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 463 | $ 577 | $ 1,043 | $ 1,140 |
Change in Accumulated other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 51 | (193) | 94 | (230) |
Unrealized gains and losses on cash flow hedges | 30 | (57) | 64 | (76) |
Other comprehensive income (loss) | 81 | (250) | 158 | (306) |
Comprehensive income | $ 544 | $ 327 | $ 1,201 | $ 834 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2021 | 525 | ||||
Beginning balance at Dec. 31, 2021 | $ 11,991 | $ 5 | $ 27 | $ 11,922 | $ 37 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 563 | 563 | |||
Other comprehensive income (loss) | (56) | ||||
Other comprehensive income (loss) | (56) | ||||
Common stock issued, stock-based compensation plans (in shares) | 1 | ||||
Common stock issued, stock-based compensation plans - value | 31 | 31 | |||
Stock-based compensation expense | 56 | 56 | |||
Repurchases of common stock (in shares) | (5) | ||||
Repurchases of common stock | (470) | (83) | (387) | ||
Dividends declared | (142) | (142) | |||
Ending balance (in shares) at Mar. 31, 2022 | 521 | ||||
Ending balance at Mar. 31, 2022 | 11,973 | $ 5 | 31 | 11,956 | (19) |
Beginning balance (in shares) at Dec. 31, 2021 | 525 | ||||
Beginning balance at Dec. 31, 2021 | 11,991 | $ 5 | 27 | 11,922 | 37 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,140 | ||||
Other comprehensive income (loss) | (306) | (306) | |||
Ending balance (in shares) at Jun. 30, 2022 | 518 | ||||
Ending balance at Jun. 30, 2022 | 11,950 | $ 5 | 21 | 12,193 | (269) |
Beginning balance (in shares) at Mar. 31, 2022 | 521 | ||||
Beginning balance at Mar. 31, 2022 | 11,973 | $ 5 | 31 | 11,956 | (19) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 577 | 577 | |||
Other comprehensive income (loss) | (250) | (250) | |||
Other comprehensive income (loss) | (250) | ||||
Common stock issued, stock-based compensation plans (in shares) | 1 | ||||
Common stock issued, stock-based compensation plans - value | 21 | 21 | |||
Stock-based compensation expense | 89 | 89 | |||
Repurchases of common stock (in shares) | (4) | ||||
Repurchases of common stock | (318) | (120) | (198) | ||
Dividends declared | (142) | (142) | |||
Ending balance (in shares) at Jun. 30, 2022 | 518 | ||||
Ending balance at Jun. 30, 2022 | $ 11,950 | $ 5 | 21 | 12,193 | (269) |
Beginning balance (in shares) at Dec. 31, 2022 | 509 | 509 | |||
Beginning balance at Dec. 31, 2022 | $ 12,309 | $ 5 | 15 | 12,588 | (299) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 580 | 580 | |||
Other comprehensive income (loss) | 77 | ||||
Other comprehensive income (loss) | 77 | ||||
Common stock issued, stock-based compensation plans (in shares) | 2 | ||||
Common stock issued, stock-based compensation plans - value | 23 | 23 | |||
Stock-based compensation expense | 44 | 44 | |||
Repurchases of common stock (in shares) | (4) | ||||
Repurchases of common stock | (223) | (60) | (163) | ||
Dividends declared | (149) | (149) | |||
Ending balance (in shares) at Mar. 31, 2023 | 507 | ||||
Ending balance at Mar. 31, 2023 | $ 12,661 | $ 5 | 22 | 12,856 | (222) |
Beginning balance (in shares) at Dec. 31, 2022 | 509 | 509 | |||
Beginning balance at Dec. 31, 2022 | $ 12,309 | $ 5 | 15 | 12,588 | (299) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,043 | ||||
Other comprehensive income (loss) | $ 158 | 158 | |||
Ending balance (in shares) at Jun. 30, 2023 | 505 | 505 | |||
Ending balance at Jun. 30, 2023 | $ 12,903 | $ 5 | 17 | 13,022 | (141) |
Beginning balance (in shares) at Mar. 31, 2023 | 507 | ||||
Beginning balance at Mar. 31, 2023 | 12,661 | $ 5 | 22 | 12,856 | (222) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 463 | ||||
Other comprehensive income (loss) | 81 | 81 | |||
Other comprehensive income (loss) | 81 | ||||
Common stock issued, stock-based compensation plans (in shares) | 1 | ||||
Common stock issued, stock-based compensation plans - value | 18 | 18 | |||
Stock-based compensation expense | 42 | 42 | |||
Repurchases of common stock (in shares) | (3) | ||||
Repurchases of common stock | (215) | (65) | (150) | ||
Dividends declared | $ (147) | (147) | |||
Ending balance (in shares) at Jun. 30, 2023 | 505 | 505 | |||
Ending balance at Jun. 30, 2023 | $ 12,903 | $ 5 | $ 17 | $ 13,022 | $ (141) |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 1,043 | $ 1,140 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 273 | 287 |
Deferred income taxes | (113) | (74) |
Stock-based compensation expense | 86 | 145 |
Other | 29 | 51 |
Changes in assets and liabilities, net of the effect of business combinations: | ||
Trade accounts receivable, current | 50 | (251) |
Other current and noncurrent assets | (96) | 131 |
Accounts payable | (40) | (9) |
Deferred revenues, current and noncurrent | (20) | (8) |
Other current and noncurrent liabilities | (447) | (578) |
Net cash provided by operating activities | 765 | 834 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (166) | (163) |
Purchases of available-for-sale investment securities | 0 | (513) |
Proceeds from maturity or sale of available-for-sale investment securities | (225) | (375) |
Purchases of held-to-maturity investment securities | (3) | (32) |
Proceeds from maturity of held-to-maturity investment securities | 18 | 30 |
Purchases of other investments | (199) | (256) |
Proceeds from maturity or sale of other investments | 234 | 769 |
Proceeds from sales of businesses | 0 | 19 |
Payments for business combinations, net of cash acquired | (409) | 0 |
Net cash (used in) provided by investing activities | (300) | 229 |
Cash flows from financing activities: | ||
Issuance of common stock under stock-based compensation plans | 41 | 52 |
Repurchases of common stock | (436) | (792) |
Repayment of Term Loan borrowings and finance lease and earnout obligations | (11) | (26) |
Dividends paid | (298) | (284) |
Net cash (used in) financing activities | (704) | (1,050) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | (37) |
(Decrease) in cash, cash equivalents and restricted cash | (239) | (24) |
Cash, cash equivalents and restricted cash beginning of year | 2,294 | 1,792 |
Cash and cash equivalents, end of period | $ 2,055 | $ 1,768 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in usd per share) | $ 0.29 | $ 0.29 | $ 0.27 | $ 0.27 |
Interim Consolidated Financial
Interim Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Consolidated Financial Statements | The terms “Cognizant,” “we,” “our,” “us” and “the Company” refer to Cognizant Technology Solutions Corporation and its subsidiaries unless the context indicates otherwise. We have prepared the accompanying unaudited consolidated financial statements included herein in accordance with GAAP and the Exchange Act. The accompanying unaudited consolidated financial statements should be read in conjunction w ith our audited consolidated financial statements (and notes thereto) included in our Annual Report on Form 10-K for the year ended December 31, 2022. In our opinion, all adjustments considered necessary for a fair statement of the accompanying unaudited consolidated financial statements have been included and all adjustments are of a normal and recurring nature. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire year. |
Revenues and Trade Accounts Rec
Revenues and Trade Accounts Receivable | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues and Trade Accounts Receivable | Disaggregation of Revenues The tables below present disaggregated revenues from contracts with clients by client location, service line and contract type for each of the business segments. We believe this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Our consulting and technology services include consulting, application development, systems integration and application testing services as well as software solutions and related services while our outsourcing services include application maintenance, infrastructure and business process services. Revenues are attributed to geographic regions based upon client location, which is the client's billing address. Substantially all revenues in the North America region relate to clients in the United States. Three Months Ended Six Months Ended (in millions) FS HS P&R CMT Total FS HS P&R CMT Total Revenues Geography: North America $ 1,027 $ 1,233 $ 780 $ 549 $ 3,589 $ 2,060 $ 2,481 $ 1,521 $ 1,072 $ 7,134 United Kingdom 155 44 137 137 473 317 81 269 284 951 Continental Europe 155 135 160 44 494 307 259 310 79 955 Europe - Total 310 179 297 181 967 624 340 579 363 1,906 Rest of World 126 28 100 76 330 255 52 195 156 658 Total $ 1,463 $ 1,440 $ 1,177 $ 806 $ 4,886 $ 2,939 $ 2,873 $ 2,295 $ 1,591 $ 9,698 Service line: Consulting and technology services $ 1,006 $ 822 $ 763 $ 436 $ 3,027 $ 2,006 $ 1,634 $ 1,495 $ 878 $ 6,013 Outsourcing services 457 618 414 370 1,859 933 1,239 800 713 3,685 Total $ 1,463 $ 1,440 $ 1,177 $ 806 $ 4,886 $ 2,939 $ 2,873 $ 2,295 $ 1,591 $ 9,698 Type of contract: Time and materials $ 811 $ 517 $ 475 $ 460 $ 2,263 $ 1,672 $ 1,007 $ 920 $ 924 $ 4,523 Fixed-price 608 655 612 305 2,180 1,153 1,305 1,197 598 4,253 Transaction or volume-based 44 268 90 41 443 114 561 178 69 922 Total $ 1,463 $ 1,440 $ 1,177 $ 806 $ 4,886 $ 2,939 $ 2,873 $ 2,295 $ 1,591 $ 9,698 Three Months Ended Six Months Ended (in millions) FS HS P&R CMT Total FS HS P&R CMT Total Revenues Geography: North America $ 1,104 $ 1,210 $ 770 $ 572 $ 3,656 $ 2,184 $ 2,405 $ 1,531 $ 1,105 $ 7,225 United Kingdom 147 44 134 133 458 298 88 266 259 911 Continental Europe 143 126 143 33 445 300 246 288 70 904 Europe - Total 290 170 277 166 903 598 334 554 329 1,815 Rest of World 148 28 93 78 347 288 61 185 158 692 Total $ 1,542 $ 1,408 $ 1,140 $ 816 $ 4,906 $ 3,070 $ 2,800 $ 2,270 $ 1,592 $ 9,732 Service line: Consulting and technology services $ 1,078 $ 805 $ 753 $ 465 $ 3,101 $ 2,135 $ 1,609 $ 1,507 $ 913 $ 6,164 Outsourcing services 464 603 387 351 1,805 935 1,191 763 679 3,568 Total $ 1,542 $ 1,408 $ 1,140 $ 816 $ 4,906 $ 3,070 $ 2,800 $ 2,270 $ 1,592 $ 9,732 Type of contract: Time and materials $ 894 $ 505 $ 471 $ 471 $ 2,341 $ 1,784 $ 999 $ 938 $ 919 $ 4,640 Fixed-price 578 617 581 309 2,085 1,135 1,235 1,153 601 4,124 Transaction or volume-based 70 286 88 36 480 151 566 179 72 968 Total $ 1,542 $ 1,408 $ 1,140 $ 816 $ 4,906 $ 3,070 $ 2,800 $ 2,270 $ 1,592 $ 9,732 Costs to Fulfill The following table presents information related to the capitalized costs to fulfill for the six months ended June 30: (in millions) 2023 2022 Beginning balance $ 265 $ 394 Costs capitalized 27 19 Amortization expense (43) (55) Ending balance $ 249 $ 358 Costs to obtain contracts were immaterial for the periods disclosed. Contract Balances The table below shows movements in contract assets (current and noncurrent) for the six months ended June 30: (in millions) 2023 2022 Beginning balance $ 326 $ 310 Revenues recognized during the period but not billed 327 318 Amounts reclassified to trade accounts receivable (296) (243) Amounts acquired in business combinations 9 — Effect of foreign currency exchange movements — (7) Ending balance $ 366 $ 378 The table below shows movements in the deferred revenue balances (current and noncurrent) for the six months ended June 30: (in millions) 2023 2022 Beginning balance $ 417 $ 443 Amounts billed but not recognized as revenues 277 385 Revenues recognized related to the beginning balance of deferred revenue (299) (388) Amounts acquired in business combinations 13 — Effect of foreign currency exchange movements 2 (8) Ending balance $ 410 $ 432 Revenues recognized during the six months ended June 30, 2023 for performance obligations satisfied or partially satisfied in previous periods were immaterial. Remaining Performance Obligations As of June 30, 2023, the aggregate amount of transaction price allocated to remaining performance obligations was $3,841 million, of which approximately 55% is expected to be recognized as revenues within 2 years and approximately 85% is expected to be recognized as revenues within 5 years. Disclosure is not required for performance obligations that meet any of the following criteria: (1) contracts with a duration of one year or less as determined under ASC Topic 606: "Revenue from Contracts with Customers", (2) contracts for which we recognize revenues based on the right to invoice for services performed, (3) variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or (4) variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property. Many of our performance obligations meet one or more of these exemptions and therefore are not included in the remaining performance obligation amount disclosed above. Trade Accounts Receivable and Allowance for Credit Losses We calculate expected credit losses for trade accounts receivable based on historical credit loss rates for each aging category as adjusted for the current market conditions and forecasts about future economic conditions. The following table presents the activity in the allowance for credit losses for trade accounts receivable for the six months ended June 30: (in millions) 2023 2022 Beginning balance $ 43 $ 50 Credit loss expense (1) 9 — Write-offs charged against the allowance (15) (7) Ending balance $ 37 $ 43 (1) Reported in "Selling, general and administrative expenses" in our unaudited consolidated statements of operations. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Acquisitions completed during the six months ended June 30, 2023 were not individually or in the aggregate material to our operations. Accordingly, pro forma results have not been presented. We have allocated the purchase price related to these transactions to tangible and intangible assets acquired and liabilities assumed, including goodwill, based on their estimated fair values . During the six months ended June 30, 2023 , we acquired 100% owners hip in each of the following: • certain net assets of OneSource Virtual, the professional and application management services business of OneSource Virtual, Inc. and OneSource Virtual (UK) Ltd., a leading provider of Workday services, solutions and products, acquired to complement our existing finance and human resources advisory implementation services related to Workday (acquired January 1, 2023), and • Mobica, an IoT software engineering services provider, acquired to expand our IoT embedded software engineering capabilities (acquired March 10, 2023). The allocations of preliminary purchase price to the fair value of the aggregate assets acquired and li abilities assumed were as follows: (in millions) OneSource Virtual Mobica Total Weighted Average Useful Life Cash $ — $ 20 $ 20 Trade accounts receivable — 10 10 Other current assets 4 8 12 Property and equipment and other assets 1 6 7 Non-deductible goodwill 18 202 220 Tax-deductible goodwill 88 — 88 Customer relationship assets 11 120 131 10.9 years Current liabilities (17) (9) (26) Noncurrent liabilities (1) (32) (33) Purchase price $ 104 $ 325 $ 429 Goodwill from our acquisition of OneSource Virtual is expected to benefit all of our reportable segments and has been allocated as such. Goodwill from our acquisition of Mobica h as been allocated to our Financial Services, Products and Resources and Communications, Media and Technology segments. The primary items that generated goodwill are the value of the acquired assembled workforces and synergies between the acquired com |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | In the second quarter of 2023, we initiated the NextGen program aimed at simplifying our operating model, optimizing corporate functions and consolidating and realigning office space to reflect the post-pandemic hybrid work environment. The total costs related to our NextGen program are reported in "Restructuring charges" in our unaudited consolidated statements of operations. We do not allocate these charges to individual segments in internal management reports used by the chief operating decision maker. Accordingly, such expenses are separately disclosed in our segment reporting as “unallocated costs”. See Note 13 . (in millions) Three and Six Months Ended June 30, 2023 Employee separation costs $ 78 Facility exit costs (1) 37 Third party and other costs (2) 2 Total restructuring charges $ 117 (1) Facility exit costs include lease restructuring of $26 million, related accelerated depreciation charges of $10 million and impairment of long-lived assets of $1 million. (2) Third party and other costs include certain non-facility related asset impairments, as well as legal and other professional services fees directly related to the NextGen program. We expect to record total costs of approximately $350 million in connection with the NextGen program, consisting of approximately $150 million of employee separation costs and $200 million of facility exit and other costs. Changes in our accrued employee separation costs included in "Accrued expenses and other current liabilities" in our consolidated statements of financial position are presented in the table below for the six months ended June 30. (in millions) 2023 Beginning balance $ — Employee separation costs accrued 78 Payments made (27) Ending balance $ 51 There were no restructuring charges during 2022. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Investments | Our investments were as follows: (in millions) June 30, 2023 December 31, 2022 Short-term investments: Equity investment security $ 10 $ 10 Available-for-sale investment securities — 225 Held-to-maturity investment securities 9 24 Time deposits 21 51 Total short-term investments $ 40 $ 310 Long-term investments: Other investments $ 65 $ 70 Restricted time deposits (1) 360 357 Total long-term investments $ 425 $ 427 (1) See Note 8 . Equity Investment Security Our equity investment security is a U.S. dollar denominated investment in a fixed income mutual fund. Realized and unrealized gains and losses were immaterial for the three and six months ended June 30, 2023 and 2022. Available-for-Sale Investment Securities As of June 30, 2023, we had no available-for-sale investment securities. As of December 31, 2022, the amortized cost and fair value of the available-for-sale investments were each $225 million. Our available-for-sale investment securities consisted of highly rated U.S. dollar denominated investments in certificates of deposit and commercial paper maturing within one year. Unrealized losses were immaterial as of December 31, 2022. There were no realized gains or losses related to the available-for-sale investment securities during the six months ended June 30, 2023 and 2022. There were no sales of available-for sale investment securities during the six months ended June 30, 2023 and 2022. Held-to-Maturity Investment Securities Our held-to-maturity investment securities consist of Indian rupee denominated investments in commercial paper and international corporate bonds. The basis for the measurement of fair value of the held-to-maturity investment securities is Level 2 in the fair value hierarchy. The amortized cost and fair value of corporate debt securities as of June 30, 2023 and December 31, 2022 were each $3 million and $12 million, respectively. The amortized cost and fair value of commercial paper securities as of June 30, 2023 and December 31, 2022 were each $6 million and $12 million, respectively. As of June 30, 2023, $3 million of corporate debt securities and $3 million of commercial paper were in an unrealized loss position. The total unrealized loss was less than $1 million and none of the securities had been in an unrealized loss position for longer than 12 months. As of December 31, 2022, $12 million of corporate debt securities and $12 million of commercial paper were in an unrealized loss position. The total unrealized loss was less than $1 million and none of the securities had been in an unrealized loss position for longer than 12 months. The securities in our portfolio are highly rated and short-term in nature. As of June 30, 2023, the corporate debt securities were ra ted AAA and the commercial paper securities were rated A-1+ by CRISIL , an Indian subsidiary of S&P Global . Other Investments As of June 30, 2023 and December 31, 2022, we had equity method investments of $63 million and $68 million, respectively, primarily related to an investment in the technology sector. As of each of June 30, 2023 and December 31, 2022, we had equity securities without a readily determinable fair value of $2 million. |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities were as follows: (in millions) June 30, 2023 December 31, 2022 Compensation and benefits $ 1,305 $ 1,446 Customer volume and other incentives 247 222 Income taxes 45 217 Professional fees 154 165 Other 412 357 Total accrued expenses and other current liabilities $ 2,163 $ 2,407 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | In 2022, we entered int o th e Credit Agreement providing for the $650 million Term Loan and a $1,850 million unsecured revolving credit facility, which are each due to mature in October 2027. We are required under the Credit Agreement to make scheduled quarterly principal payments on the Term Loan beginning in December 2023. The Credit Agreement requires interest to be paid, at our option, at either the Term Benchmark, Adjusted Daily Simple RFR or the ABR Rate (each as defined in the Credit Agreement), plus, in each case, an Applicable Margin (as defined in the Credit Agreement). Initially, the Applicable Margin is 0.875% with respect to Term Benchmark loans and RFR loans and 0.00% with respect to ABR loans. Subsequently, the Applicable Margin with respect to Term Benchmark loans and RFR loans will be determined quarterly and may range from 0.75% to 1.125%, depending on our public debt ratings or, if we have not received public debt ratings, from 0.875% to 1.125%, depending on our Leverage Ratio, which is the ratio of indebtedness for borrowed money to Consolidated EBITDA, as defined in the Credit Agreement. Since issuance of the Term Loan, t he Term Loan has been a Term Benchmark loan. The Credit Agreement contains customary affirmative and negative covenants as well as a financial covenant. We were in compliance with all debt covenants and representations of the Credit Agreement as of June 30, 2023. In March 2023, our India subsidiary renewed its working capital facility at 15 billion I ndian rupe es ($183 million at the June 30, 2023 exchange rate). The facility requires us to repay any balances within 90 days from the date of disbursement. There is a 1.0% prepayment penalty applicable to payments made within 30 days of disbursement. This working capital facility contains affirmative and negative covenants and may be renewed annually. As of June 30, 2023, we have not borrowed funds under this facility or any of its predecessor facilities. Short-term Debt As of June 30, 2023 and December 31, 2022, we had $24 million and $8 million, respectively of short-term debt related to current maturities of our Term Loan. Long-term Debt The following table summarizes the long-term debt balances as of: (in millions) June 30, 2023 December 31, 2022 Term Loan $ 650 $ 650 Less: Current maturities (24) (8) Unamortized deferred financing costs (4) (4) Long-term debt, net of current maturities $ 622 $ 638 The carrying value of our debt approximated its fair value as of June 30, 2023 and December 31, 2022. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Our effective income tax rates were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Effective income tax rate 21.1 % 24.2 % 21.3 % 23.8 % In the second quarter of 2023, we reached a settlement related to U.S. state income taxes resulting in a discrete income tax benefit, which decreased our effective income tax rate for the three months ended June 30, 2023 as compared to the same period in 2022. In March 2023, we reached an agreement with the IRS, which settled tax years 2017 and 2018. As a result of this settlement, in the first quarter of 2023, we recorded a reduction of $42 million to our uncertain tax position balance, which resulted in a $25 million discrete benefit to the provision for income taxes and a $17 million adjustment to our current income tax balance sheet accounts. Tax years that remain subject to examination by the IRS are 2019 onward. The effective tax rate for the six months ended June 30, 2023 decreased primarily as a result of the discrete benefits related to the two settlements described above. We are involved in two separate ongoing disputes with the ITD in connection with previously disclosed share repurchase transactions undertaken by CTS India in 2013 and 2016 to repurchase shares from its shareholders (non-Indian Cognizant entities) valued at $523 million and $2.8 billion, respectively. The 2016 transaction was undertaken pursuant to a plan approved by the High Court in Chennai, India, and resulted in the payment of $135 million in Indian income taxes - an amount we believe includes all the applicable taxes owed for this transaction under Indian law. In March 2018, the ITD asserted that it is owed an additional 33 billion Indian rupees ($402 million at the June 30, 2023 exchange rate) on the 2016 transaction. We deposited 5 billion Indian rupees, representing 15% of the disputed tax amount related to the 2016 transaction, with the ITD. As of each of June 30, 2023 and December 31, 2022, the deposit with the ITD was $60 million, presented in "Other noncurrent assets". Additionally, certain time deposits of CTS India were placed under lien in favor of the ITD, representing the remainder of the disputed tax amount. As of June 30, 2023 and December 31, 2022, the balance of deposits under lien was 30 billion Indian rupees, including previously earned interest, or $360 million and $357 million, respectively, as presented in "Long-term investments". The dispute in relation to the 2013 share repurchase transaction is also in litigation. At this time, the ITD has not made specific demands with regards to the 2013 transaction. In April 2020, we received a formal assessment from the ITD on the 2016 transaction, which is consistent with the ITD's previous assertions. In June 2020, we filed an appeal against this assessment to the CITA. In March 2022, we received a negative decision from the CITA. The matter is currently pending before the Income Tax Appellate Tribunal. We continue to believe we have paid all applicable taxes owed on both the 2016 and the 2013 transactions and we continue to defend our positions with respect to both matters. Accordingly, we have not recorded any reserves for these matters as of June 30, 2023. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | In the normal course of business, we use foreign exchange forward and option contracts to manage foreign currency exchange rate risk. Derivatives may give rise to credit risk from the possible non-performance by counterparties. Credit risk is limited to the fair value of those contracts that are favorable to us. We have limited our credit risk by limi ting 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 the foreign exchange derivative contracts set forth in the below table are subject to master netting arrangements, such as the International Swaps and Derivatives Association Master Agreement, 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 the foreign exchange derivative contracts, as applicable, on a gross basis, with no offsets, in our unaudited consolidated statements of financial position. There is no financial collateral (including cash collateral) posted or received by us related to the foreign exchange derivative contracts. The following table provides information on the location and fair values of derivative financial instruments included in our unaudited consolidated statements of financial position as of: (in millions) June 30, 2023 December 31, 2022 Designation of Derivatives Location on Statement of Assets Liabilities Assets Liabilities Foreign exchange forward and option contracts – Designated as cash flow hedging instruments Other current assets $ 12 $ — $ 1 $ — Other noncurrent assets 15 — 1 — Accrued expenses and other current liabilities — 10 — 53 Other noncurrent liabilities — — — 17 Total 27 10 2 70 Foreign exchange forward contracts – Not designated as hedging instruments Other current assets 8 — 4 — Accrued expenses and other current liabilities — 1 — 5 Total 8 1 4 5 Total $ 35 $ 11 $ 6 $ 75 Cash Flow Hedges We have entered into a series of foreign exchange derivative 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 the Indian rupee against the U.S. dollar on future operating costs and are scheduled to mature each month during the remainder of 2023, 2024 and the first six months of 2025. The changes in fair value of these contracts are initially reported in "Accumulated other comprehensive income (loss)" in our unaudited consolidated statements of financial position and are subsequently reclassified to earnings within "Cost of revenues" and "Selling, general and administrative expenses" in our unaudited consolidated statements of operations in the same period that the forecasted Indian rupee denominated payments are recorded in earnings. As of June 30, 2023, we estima te that $2 million , net of tax, of net gains rela ted to derivatives designated as cash flow hedges reported in "Accumulated other comprehensive income (loss)" in our unaudited consolidated statements of financial position is expected to be reclassified into earnings within the next 12 months. The notional value of the outstanding contracts by year of maturity was as follows: (in millions) June 30, 2023 December 31, 2022 2023 $ 1,075 $ 1,865 2024 1,420 1,010 2025 420 — Total notional value of contracts outstanding (1) $ 2,915 $ 2,875 (1) Includes $40 million notional value of option contracts as of June 30, 2023, with the remaining notional value related to forward contracts. There were no option contracts outstanding as of December 31, 2022. The following table provides information on the location and amounts of pre-tax gains and losses on our cash flow hedges for the three months ended June 30: (in millions) Change in Location of Net (Losses) and Gains Reclassified Net (Losses) and Gains Reclassified 2023 2022 2023 2022 Foreign exchange forward and option contracts – Designated as cash flow hedging instruments $ 35 $ (66) Cost of revenues $ (4) $ 5 SG&A expenses (1) 1 Total $ (5) $ 6 The following table provides information on the location and amounts of pre-tax gains and losses on our cash flow hedges for the six months ended June 30: (in millions) Change in Location of Net (Losses) Gains Reclassified Net (Losses) Gains Reclassified 2023 2022 2023 2022 Foreign exchange forward and option contracts – Designated as cash flow hedging instruments $ 68 $ (76) Cost of revenues $ (15) $ 17 SG&A expenses (2) 2 Total $ (17) $ 19 The activity related to the change in net unrealized gains and losses on the cash flow hedges included in "Accumulated other comprehensive income (loss)" in our unaudited consolidated statements of stockholders' equity is present ed in Note 11 . Other Derivatives We use foreign exchange forward contracts to provide an economic hedge against balance sheet exposures to certain monetary assets and liabilities denominated in currencies other than the functional currency of our foreign subsidiaries. We entered into foreign exchange forward contracts that are scheduled to mature in the third quarter of 2023. Realized gains or losses and changes in the estimated fair value of these derivative financial instruments are recorded in the caption "Foreign currency exchange gains (losses), net" in our unaudited consolidated statements of operations. Additional information related to the outstanding foreign exchange forward contracts not designated as hedging instruments was as follows: (in millions) June 30, 2023 December 31, 2022 Notional Fair Value Notional Fair Value Contracts outstanding $ 1,511 $ 7 $ 1,433 $ (1) The following table provides information on the location and amounts of realized and unrealized pre-tax gains and losses on the other derivative financial instruments for the three and six months ended June 30: Location of Net (Losses) Gains on Derivative Instruments Amount of Net (Losses) Gains on Derivative Instruments Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Foreign exchange forward contracts – Not designated as hedging instruments Foreign currency exchange gains (losses), net $ (14) $ 32 $ (24) $ 45 The related cash flow impacts of all the derivative activities are reflected as cash flows from operating activities. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | We measure our cash equivalents, certain investments, contingent consideration liabilities and foreign exchange forward and option contracts at fair value. Fair value is 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 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 the financial assets and (liabilities) measured at fair value on a recurring basis as of June 30, 2023: (in millions) Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 129 $ — $ — $ 129 Time deposits — 616 — 616 Short-term investments: Time deposits — 21 — 21 Equity investment security 10 — — 10 Other current assets: Foreign exchange forward contracts — 20 — 20 Long-term investments: Restricted time deposits (1) — 360 — 360 Other noncurrent assets Foreign exchange forward contracts — 15 — 15 Accrued expenses and other current liabilities: Foreign exchange forward contracts — (11) — (11) Contingent consideration liabilities — — (26) (26) (1) See Note 8 . The following table summarizes the financial assets and (liabilities) measured at fair value on a recurring basis as of December 31, 2022: (in millions) Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 367 $ — $ — $ 367 Time deposits — 359 — 359 Commercial paper — 512 — 512 Short-term investments: Time deposits — 51 — 51 Equity investment security 10 — — 10 Available-for-sale investment securities: Certificates of deposit and commercial paper — 225 — 225 Other current assets: Foreign exchange forward contracts — 5 — 5 Long-term investments: Restricted time deposits (1) — 357 — 357 Other noncurrent assets: Foreign exchange forward contracts — 1 — 1 Accrued expenses and other current liabilities: Foreign exchange forward contracts — (58) — (58) Contingent consideration liabilities — — (9) (9) Other noncurrent liabilities: Foreign exchange forward contracts — (17) — (17) Contingent consideration liabilities — — (13) (13) (1) Se e Note 8 . The following table summarizes the changes in Level 3 contingent consideration liabilities for the six months ended: (in millions) June 30, 2023 June 30, 2022 Beginning balance $ 22 $ 35 Initial measurement recognized at acquisition — 1 Change in fair value recognized in SG&A expenses 13 5 Payments (9) (4) Ending balance $ 26 $ 37 We measure the fair value of money market funds based on quoted prices in active markets for identical assets and measure the fair value of our equity investment security based on the published daily net asset value at which investors can freely subscribe to or redeem from the fund. The fair value of certificates of deposit and commercial paper 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. The carrying value of the time deposits approximated fair value as of June 30, 2023 and December 31, 2022. 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 forward contract and applies the difference in the rates to each outstanding contract. The market forward rates include a discount and credit risk factor. We estimate the fair value of each foreign exchange option contract by using a variant of the Black-Scholes model. This model uses present value techniques and reflects the time value and intrinsic value based on observable market rates. We estimate the fair value of contingent consideration liabilities associated with acquisitions using a variation of the income approach, which utilizes one or more significant inputs that are unobservable. This approach calculates the fair value of such liabilities based on the probability-weighted expected performance of the acquired entity against the target performance metric, discounted to present value when appropriate. During the six months ended June 30, 2023 and the year ended December 31, 2022, there were no transfers among Level 1, Level 2 or Level 3 financial assets and liabilities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Changes in "Accumulated other comprehensive income (loss)" by component were as follows for the three and six months ended June 30, 2023: Three Months Six Months (in millions) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Foreign currency translation adjustments: Beginning balance $ (215) $ 10 $ (205) $ (256) $ 8 $ (248) Change in foreign currency translation adjustments 55 (4) 51 96 (2) 94 Ending balance $ (160) $ 6 $ (154) $ (160) $ 6 $ (154) Unrealized gains and losses on cash flow hedges: Beginning balance $ (23) $ 6 $ (17) $ (68) $ 17 $ (51) Unrealized gains arising during the period 35 (9) 26 68 (17) 51 Reclassifications of net losses to: Cost of revenues 4 — 4 15 (3) 12 SG&A expenses 1 (1) — 2 (1) 1 Net change 40 (10) 30 85 (21) 64 Ending balance $ 17 $ (4) $ 13 $ 17 $ (4) $ 13 Accumulated other comprehensive income (loss): Beginning balance $ (238) $ 16 $ (222) $ (324) $ 25 $ (299) Other comprehensive income (loss) 95 (14) 81 181 (23) 158 Ending balance $ (143) $ 2 $ (141) $ (143) $ 2 $ (141) Changes in "Accumulated other comprehensive income (loss)" by component were as follows for the three and six months ended June 30, 2022: Three Months Six Months (in millions) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Foreign currency translation adjustments: Beginning balance $ (60) $ 3 $ (57) $ (22) $ 2 $ (20) Change in foreign currency translation adjustments (197) 4 (193) (235) 5 (230) Ending balance $ (257) $ 7 $ (250) $ (257) $ 7 $ (250) Unrealized gains and losses on cash flow hedges: Beginning balance $ 48 $ (10) $ 38 $ 71 $ (14) $ 57 Unrealized (losses) arising during the period (66) 14 (52) (76) 16 (60) Reclassifications of net (gains) to: Cost of revenues (5) 1 (4) (17) 3 (14) SG&A expenses (1) — (1) (2) — (2) Net change (72) 15 (57) (95) 19 (76) Ending balance $ (24) $ 5 $ (19) $ (24) $ 5 $ (19) Accumulated other comprehensive income (loss): Beginning balance $ (12) $ (7) $ (19) $ 49 $ (12) $ 37 Other comprehensive income (loss) (269) 19 (250) (330) 24 (306) Ending balance $ (281) $ 12 $ (269) $ (281) $ 12 $ (269) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | We are involved in various claims and legal proceedings 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. While we do not expect that the ultimate resolution of any existing claims and proceedings (other than the specific matters described below, if decided adversely), individually or in the aggregate, will have a material adverse effect on our financial position, an unfavorable outcome in some or all of these proceedings could have a material adverse impact on results of operations or cash flows for a particular period. This assessment is based on our current understanding of relevant facts and circumstances. As such, our view of these matters is subject to inherent uncertainties and may change in the future. On January 15, 2015, Syntel sued TriZetto and Cognizant in the USDC-SDNY. Syntel’s complaint alleged breach of contract against TriZetto, and tortious interference and misappropriation of trade secrets against Cognizant and TriZetto, stemming from Cognizant’s hiring of certain former Syntel employees. Cognizant and TriZetto countersued on March 23, 2015, for breach of contract, misappropriation of trade secrets and tortious interference, based on Syntel’s misuse of TriZetto confidential information and abandonment of contractual obligations. Cognizant and TriZetto subsequently added federal DTSA and copyright infringement claims for Syntel’s misuse of TriZetto’s proprietary technology. The parties’ claims were narrowed by the court and the case was tried before a jury, which on October 27, 2020 returned a verdict in favor of Cognizant in the amount of $855 million, including $570 million in punitive damages. On April 20, 2021, the USDC-SDNY issued a post-trial order that, among other things, affirmed the jury’s award of $285 million in actual damages, but reduced the award of punitive damages from $570 million to $285 million, thereby reducing the overall damages award from $855 million to $570 million. The USDC-SDNY subsequently issued a final judgment consistent with the April 20 th order. On May 26, 2021, Syntel filed a notice of appeal to the Second Circuit, and on June 3, 2021 the USDC-SDNY stayed execution of judgment pending appeal. On May 25, 2023, the Second Circuit issued an opinion affirming in part and vacating in part the judgment of the USDC-SDNY and remanding the case for further proceedings consistent with its opinion. The Second Circuit affirmed the judgment in all respects on liability but vacated the $570 million award that had been based on avoided development costs under the DTSA, and it remanded the case to the USDC-SDNY for further evaluation of damages. We will not record any gain in our financial statements until it becomes realizable. On February 28, 2019, a ruling of the SCI interpreting the India Defined Contribution Obligation altered historical understandings of the obligation, extending it to cover additional portions of the employee’s income. As a result, the ongoing contributions of our affected employees and the Company were required to be increased. In the first quarter of 2019, we accrued $117 million with respect to prior periods, assuming retroactive application of the SCI’s ruling, in "Selling, general and administrative e xpenses" in our unaudited consolidated statement of operations. There is significant uncertainty as to how the liability should be calculated as it is impacted by multiple variables, including the period of assessment, the application with respect to certain current and former employees and whether interest and penalties may be assessed. Since the ruling, a variety of trade associations and industry groups have advocated to the Indian government, highlighting the harm to the information technology sector, other industries and job growth in India that would result from a retroactive application of the ruling. It is possible the Indian government will review the matter and there is a substantial question as to whether the Indian government will apply the SCI’s ruling on a retroactive basis. As such, the ultimate amount of our obligation may be materially different from the amount accrued. 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 then current directors and certain of our current and former officers at that time as defendants. These actions were consolidated in an order dated January 24, 2017. The complaints assert claims for breach of fiduciary duty, corporate waste, unjust enrichment, abuse of control, mismanagement, and/or insider selling by defendants. On April 26, 2017, the New Jersey Superior Court deferred further proceedings by dismissing the consolidated putative shareholder derivative litigation without prejudice but permitting the parties to file a motion to vacate the dismissal in the future. On February 22, 2017, April 7, 2017, May 10, 2017 and March 11, 2019, four additional putative shareholder derivative complaints were filed in the USDC-NJ, naming us and certain of our current and former directors and officers at that time as defendants. These actions were consolidated in an order dated May 14, 2019. On August 3, 2020, lead plaintiffs filed a consolidated amended complaint. The consolidated amended complaint asserts claims similar to those in the previously-filed putative shareholder derivative actions. On February 14, 2022, we and certain of our current and former directors and officers moved to dismiss the consolidated amended complaint. On September 27, 2022, the USDC-NJ granted those motions and dismissed the consolidated amended complaint in its entirety with prejudice. Plaintiffs filed a notice of appeal on October 27, 2022. On June 1, 2021, an eighth putative shareholde r derivative complaint was filed in the USDC-NJ, naming us and certain of our current and former directors and officers at that time a s defendants. The complaint asserts claims similar to those in the previously-filed putative shareholder derivative actions. On March 31, 2022, we and certain of our current and former directors and officers moved to dismiss the complaint. On November 30, 2022, the USDC-NJ denied without prejudice those motions. The USDC-NJ ordered the parties to conduct limited discovery related to the issue of whether our board of directors wrongfully refused the plaintiff’s earlier litigation demand and, after the conclusion of such limited discovery, to file targeted motions for summary judgment on the issue of wrongful refusal. We are presently unable to predict the duration, scope or result of the putative shareholder derivative actions. Although the Company continues to defend the putative shareholder derivative actions vigorously, t hese 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. We have indemnification and expense advancement obligations pursuant to our bylaws and indemnification agreements with respect to certain current and former members of senior management and the Company’s board of directors. In connection with the matters that were the subject of our previously disclosed internal investigation, the DOJ and SEC investigations and the related litigation, we have received and expect to continue to receive requests under such indemnification agreements and our bylaws to provide funds for legal fees and other expenses. There are no amounts remaining available to us under applicable insurance policies for our ongoing indemnification and advancement obligations with respect to certain of our current and former officers and directors or incremental legal fees and other expenses related to the above matters. See Note 8 for information relating to the ITD Dispute. Many of our engagements involve projects that are critical to the operations of our clients’ business and provide benefits that are difficult to quantify. Any failure in a client’s systems or our failure to meet our contractual obligations to our clients, including any breach involving a client’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 omiss ions, we retain a significant portion of risk through our insurance deductibles and the re 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 position and cash flows for a particular period. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | • Financial Services, which consists of the banking and insurance operating segments; • Health Sciences, which consists of a single operating segment of the same name; • Products and Resources, which consists of the retail and consumer goods; manufacturing, logistics, energy, and utilities; and travel and hospitality operating segments; and • Communications, Media and Technology, which consists of a single operating segment of the same name. Our segments are industry-based, and as such, we report revenue from clients in the segment with which our clients are most closely aligned. Our client partners, account executives and client relationship managers 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 the operating segments may affect revenues and operating expenses to differing degrees. In the first quarter of 2023, we made certain changes to the internal measurement of segment operating profit for the purpose of evaluating segment performance and resource allocation. The primary reason for the change was to reflect a more complete cost of delivery. Specifically, segment operating profit now includes an allocation of both SG&A costs related to our integrated practices and the excess or shortfall of incentive-based compensation for commercial and delivery employees as compared to target, which were previously included in "unallocated costs." We have reported 2023 segment operating profits using the new allocation methodology and have recast the 2022 results to conform to the new methodology. Corporate expenses, expenses related to our NextGen program, a portion of depreciation and amortization and the impact of the settlements of the 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 included below as “unallocated costs” and adjusted against our total income from operations. Additionally, we do not disclose assets by segment as a significant portion of the assets is used interchangeably among the segments and the chief operating decision maker does not review such information. For revenues by reportable segment and geographic area, see Note 2 . Segment operating profits by reportable segment were as follows for the three and six months ended June 30: Three Months Ended Six Months Ended (in millions) 2023 2022 2023 2022 Financial Services $ 273 $ 327 $ 579 $ 645 Health Sciences 352 298 679 594 Products and Resources 248 254 463 499 Communications, Media and Technology 139 203 297 391 Total segment operating profit 1,012 1,082 2,018 2,129 Less: unallocated costs 435 322 739 645 Income from operations $ 577 $ 760 $ 1,279 $ 1,484 Geographic Area Information Long-lived assets by geographic area are as follows: As of (in millions) June 30, 2023 December 31, 2022 Long-lived Assets: (1) North America (2) $ 353 $ 354 Europe 99 86 Rest of World (3) 635 661 Total $ 1,087 $ 1,101 (1) Long-lived assets include property and equipment, net of accumulated depreciation and amortization. (2) Substantially all relates to the United States. (3) Substantially all relates to India. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | DividendOn August 1, 2023, the Board of Directors approved the Company's declaration of a $0.29 per share dividend with a record date of August 21, 2023 and a payment date of August 29, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net income | $ 463 | $ 580 | $ 577 | $ 563 | $ 1,043 | $ 1,140 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Revenues and Trade Accounts R_2
Revenues and Trade Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Capitalized Costs to Fulfill Contract with Customer | The following table presents information related to the capitalized costs to fulfill for the six months ended June 30: (in millions) 2023 2022 Beginning balance $ 265 $ 394 Costs capitalized 27 19 Amortization expense (43) (55) Ending balance $ 249 $ 358 Costs to obtain contracts were immaterial for the periods disclosed. |
Contract with Customer, Asset and Liability | The table below shows movements in contract assets (current and noncurrent) for the six months ended June 30: (in millions) 2023 2022 Beginning balance $ 326 $ 310 Revenues recognized during the period but not billed 327 318 Amounts reclassified to trade accounts receivable (296) (243) Amounts acquired in business combinations 9 — Effect of foreign currency exchange movements — (7) Ending balance $ 366 $ 378 The table below shows movements in the deferred revenue balances (current and noncurrent) for the six months ended June 30: (in millions) 2023 2022 Beginning balance $ 417 $ 443 Amounts billed but not recognized as revenues 277 385 Revenues recognized related to the beginning balance of deferred revenue (299) (388) Amounts acquired in business combinations 13 — Effect of foreign currency exchange movements 2 (8) Ending balance $ 410 $ 432 |
Disaggregation of Revenue | Three Months Ended Six Months Ended (in millions) FS HS P&R CMT Total FS HS P&R CMT Total Revenues Geography: North America $ 1,027 $ 1,233 $ 780 $ 549 $ 3,589 $ 2,060 $ 2,481 $ 1,521 $ 1,072 $ 7,134 United Kingdom 155 44 137 137 473 317 81 269 284 951 Continental Europe 155 135 160 44 494 307 259 310 79 955 Europe - Total 310 179 297 181 967 624 340 579 363 1,906 Rest of World 126 28 100 76 330 255 52 195 156 658 Total $ 1,463 $ 1,440 $ 1,177 $ 806 $ 4,886 $ 2,939 $ 2,873 $ 2,295 $ 1,591 $ 9,698 Service line: Consulting and technology services $ 1,006 $ 822 $ 763 $ 436 $ 3,027 $ 2,006 $ 1,634 $ 1,495 $ 878 $ 6,013 Outsourcing services 457 618 414 370 1,859 933 1,239 800 713 3,685 Total $ 1,463 $ 1,440 $ 1,177 $ 806 $ 4,886 $ 2,939 $ 2,873 $ 2,295 $ 1,591 $ 9,698 Type of contract: Time and materials $ 811 $ 517 $ 475 $ 460 $ 2,263 $ 1,672 $ 1,007 $ 920 $ 924 $ 4,523 Fixed-price 608 655 612 305 2,180 1,153 1,305 1,197 598 4,253 Transaction or volume-based 44 268 90 41 443 114 561 178 69 922 Total $ 1,463 $ 1,440 $ 1,177 $ 806 $ 4,886 $ 2,939 $ 2,873 $ 2,295 $ 1,591 $ 9,698 Three Months Ended Six Months Ended (in millions) FS HS P&R CMT Total FS HS P&R CMT Total Revenues Geography: North America $ 1,104 $ 1,210 $ 770 $ 572 $ 3,656 $ 2,184 $ 2,405 $ 1,531 $ 1,105 $ 7,225 United Kingdom 147 44 134 133 458 298 88 266 259 911 Continental Europe 143 126 143 33 445 300 246 288 70 904 Europe - Total 290 170 277 166 903 598 334 554 329 1,815 Rest of World 148 28 93 78 347 288 61 185 158 692 Total $ 1,542 $ 1,408 $ 1,140 $ 816 $ 4,906 $ 3,070 $ 2,800 $ 2,270 $ 1,592 $ 9,732 Service line: Consulting and technology services $ 1,078 $ 805 $ 753 $ 465 $ 3,101 $ 2,135 $ 1,609 $ 1,507 $ 913 $ 6,164 Outsourcing services 464 603 387 351 1,805 935 1,191 763 679 3,568 Total $ 1,542 $ 1,408 $ 1,140 $ 816 $ 4,906 $ 3,070 $ 2,800 $ 2,270 $ 1,592 $ 9,732 Type of contract: Time and materials $ 894 $ 505 $ 471 $ 471 $ 2,341 $ 1,784 $ 999 $ 938 $ 919 $ 4,640 Fixed-price 578 617 581 309 2,085 1,135 1,235 1,153 601 4,124 Transaction or volume-based 70 286 88 36 480 151 566 179 72 968 Total $ 1,542 $ 1,408 $ 1,140 $ 816 $ 4,906 $ 3,070 $ 2,800 $ 2,270 $ 1,592 $ 9,732 |
Reinsurance Recoverable, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses for trade accounts receivable for the six months ended June 30: (in millions) 2023 2022 Beginning balance $ 43 $ 50 Credit loss expense (1) 9 — Write-offs charged against the allowance (15) (7) Ending balance $ 37 $ 43 (1) Reported in "Selling, general and administrative expenses" in our unaudited consolidated statements of operations. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets and Liabilities Assumed | The allocations of preliminary purchase price to the fair value of the aggregate assets acquired and li abilities assumed were as follows: (in millions) OneSource Virtual Mobica Total Weighted Average Useful Life Cash $ — $ 20 $ 20 Trade accounts receivable — 10 10 Other current assets 4 8 12 Property and equipment and other assets 1 6 7 Non-deductible goodwill 18 202 220 Tax-deductible goodwill 88 — 88 Customer relationship assets 11 120 131 10.9 years Current liabilities (17) (9) (26) Noncurrent liabilities (1) (32) (33) Purchase price $ 104 $ 325 $ 429 |
Restructuring and Related Activ
Restructuring and Related Activities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
NextGen Charges | (in millions) Three and Six Months Ended June 30, 2023 Employee separation costs $ 78 Facility exit costs (1) 37 Third party and other costs (2) 2 Total restructuring charges $ 117 (1) Facility exit costs include lease restructuring of $26 million, related accelerated depreciation charges of $10 million and impairment of long-lived assets of $1 million. |
NextGen Charges Roll Forward | Changes in our accrued employee separation costs included in "Accrued expenses and other current liabilities" in our consolidated statements of financial position are presented in the table below for the six months ended June 30. (in millions) 2023 Beginning balance $ — Employee separation costs accrued 78 Payments made (27) Ending balance $ 51 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Marketable Securities | Our investments were as follows: (in millions) June 30, 2023 December 31, 2022 Short-term investments: Equity investment security $ 10 $ 10 Available-for-sale investment securities — 225 Held-to-maturity investment securities 9 24 Time deposits 21 51 Total short-term investments $ 40 $ 310 Long-term investments: Other investments $ 65 $ 70 Restricted time deposits (1) 360 357 Total long-term investments $ 425 $ 427 (1) See Note 8 . |
Accrued Expenses And Other Cu_2
Accrued Expenses And Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities were as follows: (in millions) June 30, 2023 December 31, 2022 Compensation and benefits $ 1,305 $ 1,446 Customer volume and other incentives 247 222 Income taxes 45 217 Professional fees 154 165 Other 412 357 Total accrued expenses and other current liabilities $ 2,163 $ 2,407 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following table summarizes the long-term debt balances as of: (in millions) June 30, 2023 December 31, 2022 Term Loan $ 650 $ 650 Less: Current maturities (24) (8) Unamortized deferred financing costs (4) (4) Long-term debt, net of current maturities $ 622 $ 638 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rates | Our effective income tax rates were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Effective income tax rate 21.1 % 24.2 % 21.3 % 23.8 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 unaudited consolidated statements of financial position as of: (in millions) June 30, 2023 December 31, 2022 Designation of Derivatives Location on Statement of Assets Liabilities Assets Liabilities Foreign exchange forward and option contracts – Designated as cash flow hedging instruments Other current assets $ 12 $ — $ 1 $ — Other noncurrent assets 15 — 1 — Accrued expenses and other current liabilities — 10 — 53 Other noncurrent liabilities — — — 17 Total 27 10 2 70 Foreign exchange forward contracts – Not designated as hedging instruments Other current assets 8 — 4 — Accrued expenses and other current liabilities — 1 — 5 Total 8 1 4 5 Total $ 35 $ 11 $ 6 $ 75 |
Notional value of outstanding contracts by year of maturity | The notional value of the outstanding contracts by year of maturity was as follows: (in millions) June 30, 2023 December 31, 2022 2023 $ 1,075 $ 1,865 2024 1,420 1,010 2025 420 — Total notional value of contracts outstanding (1) $ 2,915 $ 2,875 |
Location And Amounts Of Pre-Tax Gains (Losses) on Cash Flow Hedges | The following table provides information on the location and amounts of pre-tax gains and losses on our cash flow hedges for the three months ended June 30: (in millions) Change in Location of Net (Losses) and Gains Reclassified Net (Losses) and Gains Reclassified 2023 2022 2023 2022 Foreign exchange forward and option contracts – Designated as cash flow hedging instruments $ 35 $ (66) Cost of revenues $ (4) $ 5 SG&A expenses (1) 1 Total $ (5) $ 6 The following table provides information on the location and amounts of pre-tax gains and losses on our cash flow hedges for the six months ended June 30: (in millions) Change in Location of Net (Losses) Gains Reclassified Net (Losses) Gains Reclassified 2023 2022 2023 2022 Foreign exchange forward and option contracts – Designated as cash flow hedging instruments $ 68 $ (76) Cost of revenues $ (15) $ 17 SG&A expenses (2) 2 Total $ (17) $ 19 |
Additional Information Related To Outstanding Contracts Not Designated As Hedging Instruments | Additional information related to the outstanding foreign exchange forward contracts not designated as hedging instruments was as follows: (in millions) June 30, 2023 December 31, 2022 Notional Fair Value Notional Fair Value Contracts outstanding $ 1,511 $ 7 $ 1,433 $ (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 the other derivative financial instruments for the three and six months ended June 30: Location of Net (Losses) Gains on Derivative Instruments Amount of Net (Losses) Gains on Derivative Instruments Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Foreign exchange forward contracts – Not designated as hedging instruments Foreign currency exchange gains (losses), net $ (14) $ 32 $ (24) $ 45 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And (Liabilities) Measured At Fair Value On A Recurring Basis | The following table summarizes the financial assets and (liabilities) measured at fair value on a recurring basis as of June 30, 2023: (in millions) Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 129 $ — $ — $ 129 Time deposits — 616 — 616 Short-term investments: Time deposits — 21 — 21 Equity investment security 10 — — 10 Other current assets: Foreign exchange forward contracts — 20 — 20 Long-term investments: Restricted time deposits (1) — 360 — 360 Other noncurrent assets Foreign exchange forward contracts — 15 — 15 Accrued expenses and other current liabilities: Foreign exchange forward contracts — (11) — (11) Contingent consideration liabilities — — (26) (26) (1) See Note 8 . The following table summarizes the financial assets and (liabilities) measured at fair value on a recurring basis as of December 31, 2022: (in millions) Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 367 $ — $ — $ 367 Time deposits — 359 — 359 Commercial paper — 512 — 512 Short-term investments: Time deposits — 51 — 51 Equity investment security 10 — — 10 Available-for-sale investment securities: Certificates of deposit and commercial paper — 225 — 225 Other current assets: Foreign exchange forward contracts — 5 — 5 Long-term investments: Restricted time deposits (1) — 357 — 357 Other noncurrent assets: Foreign exchange forward contracts — 1 — 1 Accrued expenses and other current liabilities: Foreign exchange forward contracts — (58) — (58) Contingent consideration liabilities — — (9) (9) Other noncurrent liabilities: Foreign exchange forward contracts — (17) — (17) Contingent consideration liabilities — — (13) (13) (1) Se e Note 8 . |
Summary of Changes in Level 3 Contingent Consideration Liabilities | The following table summarizes the changes in Level 3 contingent consideration liabilities for the six months ended: (in millions) June 30, 2023 June 30, 2022 Beginning balance $ 22 $ 35 Initial measurement recognized at acquisition — 1 Change in fair value recognized in SG&A expenses 13 5 Payments (9) (4) Ending balance $ 26 $ 37 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in "Accumulated other comprehensive income (loss)" by component were as follows for the three and six months ended June 30, 2023: Three Months Six Months (in millions) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Foreign currency translation adjustments: Beginning balance $ (215) $ 10 $ (205) $ (256) $ 8 $ (248) Change in foreign currency translation adjustments 55 (4) 51 96 (2) 94 Ending balance $ (160) $ 6 $ (154) $ (160) $ 6 $ (154) Unrealized gains and losses on cash flow hedges: Beginning balance $ (23) $ 6 $ (17) $ (68) $ 17 $ (51) Unrealized gains arising during the period 35 (9) 26 68 (17) 51 Reclassifications of net losses to: Cost of revenues 4 — 4 15 (3) 12 SG&A expenses 1 (1) — 2 (1) 1 Net change 40 (10) 30 85 (21) 64 Ending balance $ 17 $ (4) $ 13 $ 17 $ (4) $ 13 Accumulated other comprehensive income (loss): Beginning balance $ (238) $ 16 $ (222) $ (324) $ 25 $ (299) Other comprehensive income (loss) 95 (14) 81 181 (23) 158 Ending balance $ (143) $ 2 $ (141) $ (143) $ 2 $ (141) Changes in "Accumulated other comprehensive income (loss)" by component were as follows for the three and six months ended June 30, 2022: Three Months Six Months (in millions) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Foreign currency translation adjustments: Beginning balance $ (60) $ 3 $ (57) $ (22) $ 2 $ (20) Change in foreign currency translation adjustments (197) 4 (193) (235) 5 (230) Ending balance $ (257) $ 7 $ (250) $ (257) $ 7 $ (250) Unrealized gains and losses on cash flow hedges: Beginning balance $ 48 $ (10) $ 38 $ 71 $ (14) $ 57 Unrealized (losses) arising during the period (66) 14 (52) (76) 16 (60) Reclassifications of net (gains) to: Cost of revenues (5) 1 (4) (17) 3 (14) SG&A expenses (1) — (1) (2) — (2) Net change (72) 15 (57) (95) 19 (76) Ending balance $ (24) $ 5 $ (19) $ (24) $ 5 $ (19) Accumulated other comprehensive income (loss): Beginning balance $ (12) $ (7) $ (19) $ 49 $ (12) $ 37 Other comprehensive income (loss) (269) 19 (250) (330) 24 (306) Ending balance $ (281) $ 12 $ (269) $ (281) $ 12 $ (269) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Operating Profit | Segment operating profits by reportable segment were as follows for the three and six months ended June 30: Three Months Ended Six Months Ended (in millions) 2023 2022 2023 2022 Financial Services $ 273 $ 327 $ 579 $ 645 Health Sciences 352 298 679 594 Products and Resources 248 254 463 499 Communications, Media and Technology 139 203 297 391 Total segment operating profit 1,012 1,082 2,018 2,129 Less: unallocated costs 435 322 739 645 Income from operations $ 577 $ 760 $ 1,279 $ 1,484 |
Revenues And Long-Lived Assets By Geographic Area | Long-lived assets by geographic area are as follows: As of (in millions) June 30, 2023 December 31, 2022 Long-lived Assets: (1) North America (2) $ 353 $ 354 Europe 99 86 Rest of World (3) 635 661 Total $ 1,087 $ 1,101 (1) Long-lived assets include property and equipment, net of accumulated depreciation and amortization. (2) Substantially all relates to the United States. (3) Substantially all relates to India. |
Revenues and Trade Accounts R_3
Revenues and Trade Accounts Receivable - Capitalized Costs to Fulfill Contract with Customer (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Capitalized Contract Cost, Net [Roll Forward] | ||
Beginning balance | $ 265 | $ 394 |
Amortization expense | 43 | 55 |
Costs capitalized | 27 | 19 |
Ending balance | $ 249 | $ 358 |
Revenues and Trade Accounts R_4
Revenues and Trade Accounts Receivable - Significant Movements in Contract Assets (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 326 | $ 310 |
Revenues recognized during the period but not billed | 327 | 318 |
Amounts reclassified to trade accounts receivable | 296 | 243 |
Amounts acquired in business combinations | 9 | 0 |
Contract With Customer, Asset, Foreign Currency Translation | 0 | (7) |
Ending balance | $ 366 | $ 378 |
Revenues and Trade Accounts R_5
Revenues and Trade Accounts Receivable - Significant Movements in Deferred Revenue Balances (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 417 | $ 443 |
Amounts billed but not recognized as revenues | 277 | 385 |
Revenues recognized related to the beginning balance of deferred revenue | 299 | 388 |
Amounts acquired in business combinations | 13 | 0 |
Contract With Customer, Liability, Foreign Currency Translation | 2 | (8) |
Ending balance | $ 410 | $ 432 |
Revenues and Trade Accounts R_6
Revenues and Trade Accounts Receivable - Remaining Performance Obligations Narrative (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 3,841 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | Revenue Remaining Performance Obligation Period One | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 55% |
Revenue, remaining performance obligation, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | Revenue Remaining Performance Obligation Period Two | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 85% |
Revenue, remaining performance obligation, period | 5 years |
Revenues and Trade Accounts R_7
Revenues and Trade Accounts Receivable - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 4,886 | $ 4,906 | $ 9,698 | $ 9,732 |
Time-and-materials [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,263 | 2,341 | 4,523 | 4,640 |
Fixed-price [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,180 | 2,085 | 4,253 | 4,124 |
Transaction or volume-based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 443 | 480 | 922 | 968 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,589 | 3,656 | 7,134 | 7,225 |
United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 473 | 458 | 951 | 911 |
Europe, excluding United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 494 | 445 | 955 | 904 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 967 | 903 | 1,906 | 1,815 |
Rest of World [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 330 | 347 | 658 | 692 |
Consulting And Technology Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,027 | 3,101 | 6,013 | 6,164 |
Outsourcing Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,859 | 1,805 | 3,685 | 3,568 |
Financial Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,463 | 1,542 | 2,939 | 3,070 |
Financial Services [Member] | Time-and-materials [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 811 | 894 | 1,672 | 1,784 |
Financial Services [Member] | Fixed-price [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 608 | 578 | 1,153 | 1,135 |
Financial Services [Member] | Transaction or volume-based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44 | 70 | 114 | 151 |
Financial Services [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,027 | 1,104 | 2,060 | 2,184 |
Financial Services [Member] | United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 155 | 147 | 317 | 298 |
Financial Services [Member] | Europe, excluding United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 155 | 143 | 307 | 300 |
Financial Services [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 310 | 290 | 624 | 598 |
Financial Services [Member] | Rest of World [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 126 | 148 | 255 | 288 |
Financial Services [Member] | Consulting And Technology Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,006 | 1,078 | 2,006 | 2,135 |
Financial Services [Member] | Outsourcing Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 457 | 464 | 933 | 935 |
Products and Resources [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,177 | 1,140 | 2,295 | 2,270 |
Products and Resources [Member] | Time-and-materials [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 475 | 471 | 920 | 938 |
Products and Resources [Member] | Fixed-price [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 612 | 581 | 1,197 | 1,153 |
Products and Resources [Member] | Transaction or volume-based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 90 | 88 | 178 | 179 |
Products and Resources [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 780 | 770 | 1,521 | 1,531 |
Products and Resources [Member] | United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 137 | 134 | 269 | 266 |
Products and Resources [Member] | Europe, excluding United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 160 | 143 | 310 | 288 |
Products and Resources [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 297 | 277 | 579 | 554 |
Products and Resources [Member] | Rest of World [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 100 | 93 | 195 | 185 |
Products and Resources [Member] | Consulting And Technology Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 763 | 753 | 1,495 | 1,507 |
Products and Resources [Member] | Outsourcing Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 414 | 387 | 800 | 763 |
Communication, Media and Technology [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 806 | 816 | 1,591 | 1,592 |
Communication, Media and Technology [Member] | Time-and-materials [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 460 | 471 | 924 | 919 |
Communication, Media and Technology [Member] | Fixed-price [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 305 | 309 | 598 | 601 |
Communication, Media and Technology [Member] | Transaction or volume-based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 41 | 36 | 69 | 72 |
Communication, Media and Technology [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 549 | 572 | 1,072 | 1,105 |
Communication, Media and Technology [Member] | United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 137 | 133 | 284 | 259 |
Communication, Media and Technology [Member] | Europe, excluding United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44 | 33 | 79 | 70 |
Communication, Media and Technology [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 181 | 166 | 363 | 329 |
Communication, Media and Technology [Member] | Rest of World [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 76 | 78 | 156 | 158 |
Communication, Media and Technology [Member] | Consulting And Technology Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 436 | 465 | 878 | 913 |
Communication, Media and Technology [Member] | Outsourcing Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 370 | 351 | 713 | 679 |
Healthcare Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,440 | 1,408 | 2,873 | 2,800 |
Healthcare Segment [Member] | Time-and-materials [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 517 | 505 | 1,007 | 999 |
Healthcare Segment [Member] | Fixed-price [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 655 | 617 | 1,305 | 1,235 |
Healthcare Segment [Member] | Transaction or volume-based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 268 | 286 | 561 | 566 |
Healthcare Segment [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,233 | 1,210 | 2,481 | 2,405 |
Healthcare Segment [Member] | United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44 | 44 | 81 | 88 |
Healthcare Segment [Member] | Europe, excluding United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 135 | 126 | 259 | 246 |
Healthcare Segment [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 179 | 170 | 340 | 334 |
Healthcare Segment [Member] | Rest of World [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28 | 28 | 52 | 61 |
Healthcare Segment [Member] | Consulting And Technology Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 822 | 805 | 1,634 | 1,609 |
Healthcare Segment [Member] | Outsourcing Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 618 | $ 603 | $ 1,239 | $ 1,191 |
Revenues and Trade Accounts R_8
Revenues and Trade Accounts Receivable - Trade Accounts And Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | $ 43 | $ 50 |
Credit loss expense (1) | 9 | 0 |
Write-offs charged against the allowance | (15) | (7) |
Ending Balance | $ 37 | $ 43 |
Business Combinations Narrative
Business Combinations Narrative (Details) | Jun. 30, 2023 |
OneSource Virtual | |
Business Acquisition [Line Items] | |
Ownership percentage of recently acquired businesses | 100% |
Mobica | |
Business Acquisition [Line Items] | |
Ownership percentage of recently acquired businesses | 100% |
Business Combinations Allocatio
Business Combinations Allocation of Purchase Price (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Cash | $ 20 |
Trade accounts receivable | 10 |
Other current assets | 12 |
Property and equipment and other assets | 7 |
Non-deductible goodwill | 220 |
Tax-deductible goodwill | 88 |
Current liabilities | 26 |
Noncurrent liabilities | 33 |
Purchase price | 429 |
OneSource Virtual | |
Business Acquisition [Line Items] | |
Cash | 0 |
Trade accounts receivable | 0 |
Other current assets | 4 |
Property and equipment and other assets | 1 |
Non-deductible goodwill | 18 |
Tax-deductible goodwill | 88 |
Current liabilities | 17 |
Noncurrent liabilities | 1 |
Purchase price | 104 |
Mobica | |
Business Acquisition [Line Items] | |
Cash | 20 |
Trade accounts receivable | 10 |
Other current assets | 8 |
Property and equipment and other assets | 6 |
Non-deductible goodwill | 202 |
Tax-deductible goodwill | 0 |
Current liabilities | 9 |
Noncurrent liabilities | 32 |
Purchase price | 325 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 131 |
Weighted Average Useful Life | 10 years 10 months 24 days |
Customer Relationships [Member] | OneSource Virtual | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 11 |
Customer Relationships [Member] | Mobica | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 120 |
Restructuring Charges - Summary
Restructuring Charges - Summary of Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accrued Restructuring Costs | |||||
Restructuring charges | $ 117 | $ 0 | $ 117 | $ 0 | $ 0 |
NextGen Program | |||||
Accrued Restructuring Costs | |||||
Restructuring charges | 117 | 117 | |||
Employee separation costs | |||||
Accrued Restructuring Costs | |||||
Restructuring charges | 78 | ||||
Employee separation costs | NextGen Program | |||||
Accrued Restructuring Costs | |||||
Restructuring charges | 78 | 78 | |||
Facility exit costs | NextGen Program | |||||
Accrued Restructuring Costs | |||||
Restructuring charges | 37 | 37 | |||
Lease restructuring | 26 | 26 | |||
Accelerated depreciation | 10 | 10 | |||
Impairment of long-lived assets | 1 | 1 | |||
Third party and other costs | NextGen Program | |||||
Accrued Restructuring Costs | |||||
Restructuring charges | $ 2 | $ 2 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accrued Restructuring Costs | |||||
Restructuring charges | $ 117 | $ 0 | $ 117 | $ 0 | $ 0 |
Employee separation costs | |||||
Accrued Restructuring Costs | |||||
Restructuring charges | 78 | ||||
NextGen Program | |||||
Accrued Restructuring Costs | |||||
Expected cost | 350 | 350 | |||
Restructuring charges | 117 | 117 | |||
NextGen Program | Employee separation costs | |||||
Accrued Restructuring Costs | |||||
Expected cost | 150 | 150 | |||
Restructuring charges | 78 | 78 | |||
NextGen Program | Facility exit costs | |||||
Accrued Restructuring Costs | |||||
Expected cost | 200 | 200 | |||
Restructuring charges | $ 37 | $ 37 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | |||||
Employee separation costs accrued | $ 117 | $ 0 | $ 117 | $ 0 | $ 0 |
Employee separation costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0 | ||||
Employee separation costs accrued | 78 | ||||
Payments made | (27) | ||||
Ending balance | $ 51 | $ 51 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Short-term investments: | ||
Total short-term investments | $ 40 | $ 310 |
Long-term investments: | ||
Equity method investments | 63 | 68 |
Long-term Investments, Total | 425 | 427 |
Short-term Investments | ||
Short-term investments: | ||
Equity investment security | 10 | 10 |
Available-for-sale investment securities | 0 | 225 |
Held-to-maturity investment securities | 9 | 24 |
Time Deposits | 21 | 51 |
Long-term investments [Member] | ||
Long-term investments: | ||
Equity method investments | 65 | 70 |
Restricted investments | $ 360 | $ 357 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Available for sale realized gain (loss) | $ 0 | $ 0 | |
Proceeds from sales of available for sale securities | 0 | $ 0 | |
Unrealized loss position, longer than 12 months | 0 | $ 0 | |
Equity method investments | 63,000,000 | 68,000,000 | |
Cost method investments | 2,000,000 | 2,000,000 | |
Maximum | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Accumulated loss | 1,000,000 | 1,000,000 | |
Commercial Paper [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Unrealized loss position, less than 12 months | 3,000,000 | 12,000,000 | |
Commercial Paper [Member] | Short-term Investments | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity investment securities | 6,000,000 | 12,000,000 | |
Fair Value | 6,000,000 | 12,000,000 | |
Corporate Debt Securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Unrealized loss position, less than 12 months | 3,000,000 | 12,000,000 | |
Corporate Debt Securities [Member] | Short-term Investments | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity investment securities | 3,000,000 | 12,000,000 | |
Fair Value | 3,000,000 | 12,000,000 | |
Short-term Investments | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Available-for-sale investment securities | 0 | 225,000,000 | |
Held-to-maturity investment securities | $ 9,000,000 | 24,000,000 | |
Short-term Investments | Commercial Paper [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Available-for-sale investment securities | 225,000,000 | ||
Amortized cost | $ 225,000,000 |
Investments (Schedule of Held-t
Investments (Schedule of Held-to-Maturity Securities) (Details) - Short-term Investments - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Corporate Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity investment securities | $ 3 | $ 12 |
Fair Value | 3 | 12 |
Commercial Paper [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity investment securities | 6 | 12 |
Fair Value | $ 6 | $ 12 |
Accrued Expenses And Other Cu_3
Accrued Expenses And Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 1,305 | $ 1,446 |
Customer volume and other incentives | 247 | 222 |
Income taxes | 45 | 217 |
Professional fees | 154 | 165 |
Other | 412 | 357 |
Total accrued expenses and other current liabilities | $ 2,163 | $ 2,407 |
Debt (Additional Disclosures) (
Debt (Additional Disclosures) (Details) $ in Millions, ₨ in Billions | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Mar. 01, 2023 INR (₨) | Oct. 06, 2022 USD ($) | |
Credit Agreement [Member] | Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Principal amount of debt | $ 650 | ||
Base Rate [Member] | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0% | ||
Term Benchmark | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.875% | ||
Term Benchmark | Minimum | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Term Benchmark | Maximum | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||
Term Benchmark Without Debt Ratings | Minimum | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.875% | ||
Term Benchmark Without Debt Ratings | Maximum | Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||
Revolving Credit Facility [Member] | Credit Agreement [Member] | Unsecured Debt [Member] | |||
Line of Credit Facility [Line Items] | |||
Principal amount of debt | $ 1,850 | ||
Working Capital Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 183 | ₨ 15 |
Debt (Short-term Debt) (Details
Debt (Short-term Debt) (Details) $ in Millions, ₨ in Billions | Jun. 30, 2023 USD ($) | Mar. 01, 2023 INR (₨) | Dec. 31, 2022 USD ($) |
Credit Agreement [Member] | Term Loan [Member] | |||
Short-term Debt [Line Items] | |||
Long-term Debt, Current Maturities | $ 24 | $ 8 | |
Working Capital Facility [Member] | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | $ 183 | ₨ 15 |
Debt (Long-term Debt) (Details)
Debt (Long-term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, net of current maturities | $ 622 | $ 638 |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Deferred financing costs | (4) | (4) |
Term Loan [Member] | Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Term Loan | 650 | 650 |
Current maturities | $ (24) | $ (8) |
Income Taxes - Tax Rates (Detai
Income Taxes - Tax Rates (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective Income Tax Rate | 21.10% | 24.20% | 21.30% | 23.80% | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 42 | ||||
Adjustment To Current Income Tax Balance As A Result Of Settlement | 17 | ||||
Effective Income Tax Rate Reconciliation, Discrete Tax Benefit, Amount | $ 25 |
Income Taxes (Narrative) (One-t
Income Taxes (Narrative) (One-time Transaction) (Details) $ in Millions, ₨ in Billions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2013 USD ($) | Jun. 30, 2023 INR (₨) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 INR (₨) | Apr. 30, 2018 INR (₨) | Mar. 31, 2018 INR (₨) | |
One-time Transaction [Table] [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, Discrete Tax Benefit, Amount | $ (25) | |||||||||||
Income tax expense | $ 124 | $ 184 | $ 282 | $ 354 | ||||||||
Long-term investments [Member] | ||||||||||||
One-time Transaction [Table] [Line Items] | ||||||||||||
Restricted investments | 360 | 360 | $ 357 | |||||||||
Indian Income Tax Department (ITD) [Member] | Foreign tax authority [Member] | 2013 India Share Repurchase [Member] | ||||||||||||
One-time Transaction [Table] [Line Items] | ||||||||||||
Foreign earnings repatriated | $ 523 | |||||||||||
Indian Income Tax Department (ITD) [Member] | Foreign tax authority [Member] | 2016 India Cash Remittance [Member] | ||||||||||||
One-time Transaction [Table] [Line Items] | ||||||||||||
Foreign earnings repatriated | $ 2,800 | |||||||||||
Income tax expense | $ 135 | |||||||||||
Income tax, disputed amount | 402 | 402 | ₨ 33 | |||||||||
Deposits assets | ₨ | ₨ 5 | |||||||||||
Desposits assets, percent disputed tax amount | 15% | |||||||||||
Indian Income Tax Department (ITD) [Member] | Foreign tax authority [Member] | 2016 India Cash Remittance [Member] | Long-term investments [Member] | ||||||||||||
One-time Transaction [Table] [Line Items] | ||||||||||||
Restricted investments | 360 | 360 | ₨ 30 | 357 | ₨ 30 | |||||||
Indian Income Tax Department (ITD) [Member] | Foreign tax authority [Member] | 2016 India Cash Remittance [Member] | Other Noncurrent Assets [Member] | ||||||||||||
One-time Transaction [Table] [Line Items] | ||||||||||||
Deposits assets | $ 60 | $ 60 | $ 60 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Location And Fair Values Of Derivative Financial Instruments In Our Consolidated Statement Of Financial Position) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | $ 35 | $ 6 |
Derivative liabilities fair value | 11 | 75 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 8 | 4 |
Derivative liabilities fair value | 1 | 5 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 8 | 4 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities fair value | 1 | 5 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 27 | 2 |
Derivative liabilities fair value | 10 | 70 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 12 | 1 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 15 | 1 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract | Accrued Expenses And Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities fair value | 10 | 53 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities fair value | $ 0 | $ 17 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash flow hedge gains (losses) expected to be reclassified to earnings within the next 12 months | $ 2 |
Derivative Financial Instrume_5
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) - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 2,915 | $ 2,875 |
Foreign Exchange Contract, Maturity 2023 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,075 | 1,865 |
Foreign Exchange Contract, Maturity 2024 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,420 | 1,010 |
Foreign Exchange Contract, Maturity 2025 | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 420 | 0 |
Foreign Exchange Option [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 40 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Location And Amounts Of Pre-Tax Gains (Losses) On Cash Flow Hedge Derivatives Financial Instruments) (Details) - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net (Losses) and Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) | $ (5) | $ 6 | $ (17) | $ 19 |
Cost Of Revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net (Losses) and Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) | (4) | 5 | (15) | 17 |
Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net (Losses) and Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) | (1) | 1 | (2) | 2 |
Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Derivative Gains and Losses Recognized in Accumulated Other Comprehensive Income (Loss) (effective portion) | $ 35 | $ (66) | $ 68 | $ (76) |
Derivative Financial Instrume_7
Derivative Financial Instruments (Other Derivatives) (Details) - Not Designated as Hedging Instrument [Member] - Foreign Exchange Forward [Member] - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Market Value | $ 7 | $ (1) |
Derivative, Notional Amount | $ 1,511 | $ 1,433 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Location And Amounts Of Pre-Tax Gains (Losses) On Derivative Financial Instruments Not Designated As Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Foreign currency exchange gains (losses), net | Foreign currency exchange gains (losses), net | Foreign currency exchange gains (losses), net | Foreign currency exchange gains (losses), net |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of net gains (losses) on derivative instruments | $ (14) | $ 32 | $ (24) | $ 45 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets And (Liabilities) Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | $ 10 | $ 10 | ||
Long-term investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments | 360 | 357 | ||
Level 3 | Contingent Consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 26 | $ 37 | 22 | $ 35 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 0 | 1 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 13 | 5 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | (9) | $ (4) | ||
Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 10 | |||
Recurring [Member] | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 10 | |||
Recurring [Member] | Short-term Investments | Certificates of deposit and commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, current | 225 | |||
Recurring [Member] | Other Current Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 20 | 5 | ||
Recurring [Member] | Other Noncurrent Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 15 | 1 | ||
Recurring [Member] | Other Noncurrent Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, liabilities | (17) | |||
Contingent consideration liabilities | (13) | |||
Recurring [Member] | Long-term investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments | 360 | 357 | ||
Recurring [Member] | Other Current Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, liabilities | (11) | (58) | ||
Contingent consideration liabilities | (26) | (9) | ||
Recurring [Member] | Money market funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 129 | 367 | ||
Recurring [Member] | Time deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 616 | 359 | ||
Recurring [Member] | Commercial Paper [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 512 | |||
Recurring [Member] | Level 1 | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 10 | 10 | ||
Recurring [Member] | Level 1 | Short-term Investments | Certificates of deposit and commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, current | 0 | |||
Recurring [Member] | Level 1 | Other Current Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 0 | 0 | ||
Recurring [Member] | Level 1 | Other Noncurrent Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 0 | 0 | ||
Recurring [Member] | Level 1 | Other Noncurrent Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, liabilities | 0 | |||
Contingent consideration liabilities | 0 | |||
Recurring [Member] | Level 1 | Other Current Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, liabilities | 0 | 0 | ||
Contingent consideration liabilities | 0 | 0 | ||
Recurring [Member] | Level 1 | Money market funds | Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 129 | 367 | ||
Recurring [Member] | Level 2 | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 0 | 0 | ||
Recurring [Member] | Level 2 | Short-term Investments | Certificates of deposit and commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, current | 225 | |||
Recurring [Member] | Level 2 | Other Current Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 20 | 5 | ||
Recurring [Member] | Level 2 | Other Noncurrent Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 15 | 1 | ||
Recurring [Member] | Level 2 | Other Noncurrent Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, liabilities | (17) | |||
Contingent consideration liabilities | 0 | |||
Recurring [Member] | Level 2 | Long-term investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments | 360 | 357 | ||
Recurring [Member] | Level 2 | Other Current Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, liabilities | (11) | (58) | ||
Contingent consideration liabilities | 0 | 0 | ||
Recurring [Member] | Level 2 | Time deposits | Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 616 | 359 | ||
Recurring [Member] | Level 2 | Commercial Paper [Member] | Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 512 | |||
Recurring [Member] | Level 3 | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 0 | 0 | ||
Recurring [Member] | Level 3 | Short-term Investments | Certificates of deposit and commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities, current | 0 | |||
Recurring [Member] | Level 3 | Other Current Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 0 | 0 | ||
Recurring [Member] | Level 3 | Other Noncurrent Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 0 | 0 | ||
Recurring [Member] | Level 3 | Other Noncurrent Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, liabilities | 0 | |||
Contingent consideration liabilities | (13) | |||
Recurring [Member] | Level 3 | Other Current Liabilities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, liabilities | 0 | 0 | ||
Contingent consideration liabilities | (26) | (9) | ||
Time deposits | Recurring [Member] | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short term investments | 21 | 51 | ||
Time deposits | Recurring [Member] | Level 1 | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short term investments | 0 | 0 | ||
Time deposits | Recurring [Member] | Level 2 | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short term investments | 21 | 51 | ||
Time deposits | Recurring [Member] | Level 3 | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short term investments | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 12,661 | $ 12,309 | $ 11,973 | $ 11,991 | $ 12,309 | $ 11,991 |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||
Net change, Net of Tax Amount | 51 | (193) | 94 | (230) | ||
Other comprehensive income (loss) | 81 | (250) | 158 | (306) | ||
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||
Total stockholders’ equity | 12,903 | 12,661 | 11,950 | 11,973 | 12,903 | 11,950 |
Foreign currency translation adjustments: [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
AOCI before tax, beginning balance | (215) | (256) | (60) | (22) | (256) | (22) |
AOCI tax, beginning balance | 10 | 8 | 3 | 2 | 8 | 2 |
Beginning balance | (205) | (248) | (57) | (20) | (248) | (20) |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||
Net change, Before Tax Amount | 55 | (197) | 96 | (235) | ||
Net change, Tax Effect | (4) | 4 | (2) | 5 | ||
Other comprehensive income (loss) | 51 | (193) | (230) | |||
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||
AOCI before tax, ending balance | (160) | (215) | (257) | (60) | (160) | (257) |
AOCI tax, ending balance | 6 | 10 | 7 | 3 | 6 | 7 |
Total stockholders’ equity | (154) | (205) | (250) | (57) | (154) | (250) |
Unrealized gains on cash flow hedges: [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
AOCI before tax, beginning balance | (23) | (68) | 48 | 71 | (68) | 71 |
AOCI tax, beginning balance | 6 | 17 | (10) | (14) | 17 | (14) |
Beginning balance | (17) | (51) | 38 | 57 | (51) | 57 |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||
Net change, Before Tax Amount | 40 | (72) | 85 | (95) | ||
Net change, Tax Effect | (10) | 15 | (21) | 19 | ||
Other comprehensive income (loss) | 30 | (57) | 64 | (76) | ||
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||
OCI, before reclassifications, before tax | 35 | (66) | 68 | (76) | ||
Other comprehensive income (loss) before reclassifications, tax | (9) | 14 | (17) | 16 | ||
OCI, before reclassifications, net of tax | 26 | (52) | 51 | (60) | ||
AOCI before tax, ending balance | 17 | (23) | (24) | 48 | 17 | (24) |
AOCI tax, ending balance | (4) | 6 | 5 | (10) | (4) | 5 |
Total stockholders’ equity | 13 | (17) | (19) | 38 | 13 | (19) |
Unrealized gains on cash flow hedges: [Member] | Cost of revenues [Member] | ||||||
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||
Reclassification from AOCI, current period, before tax | 4 | (5) | 15 | (17) | ||
Reclassification from AOCI, current period, tax | 0 | 1 | (3) | 3 | ||
Reclassification from AOCI, current period, net of tax | 4 | (4) | 12 | (14) | ||
Unrealized gains on cash flow hedges: [Member] | Selling, general and administrative expenses [Member] | ||||||
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||
Reclassification from AOCI, current period, before tax | 1 | (1) | 2 | (2) | ||
Reclassification from AOCI, current period, tax | (1) | 0 | (1) | 0 | ||
Reclassification from AOCI, current period, net of tax | 0 | (1) | 1 | (2) | ||
Accumulated Other Comprehensive Income (Loss) | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
AOCI before tax, beginning balance | (238) | (324) | (12) | 49 | (324) | 49 |
AOCI tax, beginning balance | 16 | 25 | (7) | (12) | 25 | (12) |
Beginning balance | (222) | (299) | (19) | 37 | (299) | 37 |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||
Net change, Before Tax Amount | 95 | (269) | 181 | (330) | ||
Net change, Tax Effect | (14) | 19 | (23) | 24 | ||
Other comprehensive income (loss) | 81 | 77 | (250) | (56) | 158 | (306) |
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||
AOCI before tax, ending balance | (143) | (238) | (281) | (12) | (143) | (281) |
AOCI tax, ending balance | 2 | 16 | 12 | (7) | 2 | 12 |
Total stockholders’ equity | $ (141) | $ (222) | $ (269) | $ (19) | $ (141) | $ (269) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | May 25, 2023 | Apr. 20, 2021 | Oct. 27, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2019 |
Other Commitments [Line Items] | ||||||
Accrued Liabilities and Other Liabilities | $ 2,163 | $ 2,407 | ||||
Syntel Sterling Best Shores Mauritius Ltd. [Member] | ||||||
Other Commitments [Line Items] | ||||||
Litigation settlement, amount awarded from other party | $ 570 | $ 855 | ||||
Litigation Settlement Amount Awarded From Other Party, Punitive Damages | 285 | $ 570 | ||||
Litigation Settlement Amount Awarded From Other Party, Actual Damages | $ 285 | |||||
Litigation Settlement Amount Vacated, Actual and Punitive Damages | $ 570 | |||||
India Defined Contribution Obligation [Member] | ||||||
Other Commitments [Line Items] | ||||||
Accrued Liabilities and Other Liabilities | $ 117 |
Segment Information (Revenues F
Segment Information (Revenues From External Customers And Segment Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Income from operations | $ 577 | $ 760 | $ 1,279 | $ 1,484 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 1,012 | 1,082 | 2,018 | 2,129 |
Operating Segments [Member] | Financial Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 273 | 327 | 579 | 645 |
Operating Segments [Member] | Healthcare Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 352 | 298 | 679 | 594 |
Operating Segments [Member] | Products and Resources [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 248 | 254 | 463 | 499 |
Operating Segments [Member] | Communications, Media and Technology [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 139 | 203 | 297 | 391 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated costs | $ 435 | $ 322 | $ 739 | $ 645 |
Segment Information (Long-Lived
Segment Information (Long-Lived Assets By Geographic Area) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Long-Lived Assets [Line Items] | ||
Long-lived Assets | $ 1,087 | $ 1,101 |
North America [Member] | ||
Long-Lived Assets [Line Items] | ||
Long-lived Assets | 353 | 354 |
Europe [Member] | ||
Long-Lived Assets [Line Items] | ||
Long-lived Assets | 99 | 86 |
Rest of World [Member] | ||
Long-Lived Assets [Line Items] | ||
Long-lived Assets | $ 635 | $ 661 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | ||||
Aug. 01, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Subsequent Event [Line Items] | |||||
Dividends declared per common share (in usd per share) | $ 0.29 | $ 0.29 | $ 0.27 | $ 0.27 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per common share (in usd per share) | $ 0.29 |