Statement Of Income Alternative
Statement Of Income Alternative (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Revenues | $853,488 | $734,726 | $2,375,942 | $2,063,259 |
Operating expenses: | ||||
Cost of revenues (exclusive of depreciation and amortization expense shown separately below) | 475,599 | 405,936 | 1,328,647 | 1,153,068 |
Selling, general and administrative expenses | 193,806 | 166,685 | 530,681 | 482,643 |
Depreciation and amortization expense | 22,301 | 19,474 | 65,032 | 53,544 |
Income from operations | 161,782 | 142,631 | 451,582 | 374,004 |
Other income (expense), net: | ||||
Interest income | 4,664 | 5,344 | 9,756 | 16,428 |
Other income (expense), net | (2,747) | (14,777) | 7,016 | (11,308) |
Total other income (expense), net | 1,917 | (9,433) | 16,772 | 5,120 |
Income before provision for income taxes | 163,699 | 133,198 | 468,354 | 379,124 |
Provision for income taxes | 27,127 | 20,370 | 77,395 | 60,567 |
Net income | 136,572 | 112,828 | 390,959 | 318,557 |
Basic earnings per share | 0.47 | 0.39 | 1.34 | 1.1 |
Diluted earnings per share | 0.45 | 0.38 | 1.3 | 1.06 |
Weighted average number of common shares outstanding | 293,664 | 291,341 | 292,538 | 289,740 |
Dilutive effect of shares issuable under stock-based compensation plans | 8,918 | 8,464 | 7,411 | 9,656 |
Weighted average number of common and dilutive shares outstanding | 302,582 | 299,805 | 299,949 | 299,396 |
Comprehensive income: | ||||
Net income | 136,572 | 112,828 | 390,959 | 318,557 |
Foreign currency translation adjustments | 1,450 | (15,507) | 11,747 | (12,942) |
Net unrealized (loss) gain on cash flow hedges, net of taxes of $(115), $0, $159 and $0, respectively | (2,980) | 0 | 4,096 | 0 |
Unrealized gain loss on available-for-sale securities, net of taxes of $0, $31 $0 and $(2,601), respectively | 0 | 46 | 0 | (3,790) |
Total comprehensive income | $135,042 | $97,367 | $406,802 | $301,825 |
1_Statement Of Income Alternati
Statement Of Income Alternative (Parenthetical) (USD $) | ||||
In Thousands | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Net unrealized (loss) gain on cash flow hedges, taxes | ($115) | $0 | $159 | $0 |
Unrealized gain loss on available-for-sale securities, taxes | $0 | $31 | $0 | ($2,601) |
Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Thousands | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Dec. 31, 2008 |
Current assets: | ||
Cash and cash equivalents | $992,926 | $735,066 |
Short-term investments | 189,775 | 27,513 |
Trade accounts receivable, net of allowances of $15,906 and $13,441 respectively | 586,938 | 517,481 |
Unbilled accounts receivable | 97,832 | 62,158 |
Deferred income tax assets, net | 51,936 | 48,315 |
Other current assets | 97,419 | 77,586 |
Total current assets | 2,016,826 | 1,468,119 |
Property and equipment, net of accumulated depreciation of $254,059 and $199,188, respectively | 460,237 | 455,254 |
Long-term investments | 157,032 | 161,693 |
Goodwill | 160,881 | 154,035 |
Intangible assets, net | 65,474 | 47,790 |
Deferred income tax assets, net | 72,036 | 52,816 |
Other assets | 43,996 | 34,853 |
Total assets | 2,976,482 | 2,374,560 |
Current liabilities: | ||
Accounts payable | 53,403 | 39,970 |
Deferred revenue | 36,777 | 38,123 |
Accrued expenses and other current liabilities | 418,194 | 309,484 |
Total current liabilities | 508,374 | 387,577 |
Deferred income tax liabilities, net | 0 | 7,294 |
Other noncurrent liabilities | 31,890 | 14,111 |
Total liabilities | 540,264 | 408,982 |
Commitments and contingencies (See Note 9) | - | - |
Stockholders' equity: | ||
Preferred stock, $.10 par value, 15,000 shares authorized, none issued | 0 | 0 |
Class A common stock, $.01 par value, 500,000 shares authorized, 294,650 and 291,670 shares issued and outstanding at September 30, 2009 and December 31, 2008, respectively | 2,946 | 2,917 |
Additional paid-in capital | 605,544 | 541,735 |
Retained earnings | 1,821,364 | 1,430,405 |
Accumulated other comprehensive income (loss) | 6,364 | (9,479) |
Total stockholders' equity | 2,436,218 | 1,965,578 |
Total liabilities and stockholders' equity | $2,976,482 | $2,374,560 |
2_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
In Thousands, except Per Share data | Sep. 30, 2009
| Dec. 31, 2008
|
Trade accounts receivable, allowances | $15,906 | $13,441 |
Property and equipment, accumulated depreciation | $254,059 | $199,188 |
Preferred stock, par value | 0.1 | 0.1 |
Preferred stock, shares authorized | 15,000 | 15,000 |
Preferred stock, issued | 0 | 0 |
Class A common stock, par value | 0.01 | 0.01 |
Class A common stock, shares authorized | 500,000 | 500,000 |
Class A common stock, shares issued | 294,650 | 291,670 |
Class A common stock, shares outstanding | 294,650 | 291,670 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||
In Thousands | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Cash flows from operating activities: | ||
Net income | $390,959 | $318,557 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 65,032 | 53,544 |
Provision for doubtful accounts | 2,682 | 7,776 |
Deferred income taxes | (17,663) | 9,902 |
Stock-based compensation expense | 32,005 | 32,957 |
Excess tax benefit on stock-based compensation arrangements | (12,401) | (16,259) |
Other | (880) | 0 |
Changes in assets and liabilities: | ||
Trade accounts receivable | (61,962) | (156,066) |
Other current assets | (43,394) | (24,570) |
Other assets | (7,821) | (5,334) |
Accounts payable | 9,722 | 14,123 |
Other current and noncurrent liabilities | 78,524 | 2,162 |
Net cash provided by operating activities | 434,803 | 236,792 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (62,013) | (146,325) |
Purchases of investments | (228,827) | (128,332) |
Proceeds from maturity or sale of investments | 76,937 | 262,160 |
Acquisitions, net of cash acquired | (5,776) | (20,956) |
Net cash used in investing activities | (219,679) | (33,453) |
Cash flows from financing activities: | ||
Issuance of common stock under employee stock plans | 33,760 | 48,813 |
Excess tax benefit on stock-based compensation arrangements | 12,401 | 16,259 |
Repurchases of common stock | (14,564) | (27,835) |
Net cash provided by financing activities | 31,597 | 37,237 |
Effect of currency translation on cash and cash equivalents | 11,139 | (11,159) |
Increase in cash and cash equivalents | 257,860 | 229,417 |
Cash and cash equivalents, beginning of year | 735,066 | 339,845 |
Cash and cash equivalents, end of period | $992,926 | $569,262 |
Note 1 - Interim Condensed Cons
Note 1 - Interim Condensed Consolidated Financial Statements | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 1 - Interim Condensed Consolidated Financial Statements | Note 1 Interim Condensed Consolidated Financial Statements The terms Cognizant, we, our, us and Company refer to Cognizant Technology Solutions Corporation unless the context indicates otherwise. We have prepared the accompanying unaudited condensed consolidated financial statements included herein in accordance with generally accepted accounting principles in the United States of America and Article 10 of Regulation S-X under the Securities and Exchange Act of 1934, as amended. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) included in our Annual Report on Form10-K for the year ended December31, 2008. In our opinion, all adjustments considered necessary for a fair presentation of the accompanying unaudited condensed 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. We have evaluated subsequent events that have occurred through November 6, 2009, the date on which this Quarterly Report on Form 10-Q was filed with the Securities and Exchange Commission, and have concluded no additional events or transactions have occurred that would require adjustment to, or additional disclosure in, our financial statements. |
Note 2 - Acquisitions
Note 2 - Acquisitions | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 2 - Acquisitions | Note 2 Acquisitions During the first nine months of 2009, we completed three acquisitions for aggregate consideration of approximately $34,500. In the third quarter of 2009, we entered into a transaction with Invensys where we acquired a multi-year service agreement, an assembled workforce and certain other assets. The acquisition was accounted for under the purchase method of accounting. Under the current authoritative business combination guidelines, this transaction qualified as a business combination and was recorded as an asset purchase acquisition. This transaction, with no initial cash consideration, expands our business process outsourcing expertise within engineering services. The remaining acquisitions were asset purchases and were completed to strengthen our retail and infrastructure management capabilities. These acquisitions were included in our consolidated financial statement as of the date which they were acquired and were not material to our operations, financial position or cash flow. As a result of these transactions, we have allocated the purchase price to tangible and intangible assets and liabilities based upon their fair values. |
Note 3 - Investments
Note 3 - Investments | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 3 - Investments | Note 3 Investments Investments as of September30, 2009 and December31, 2008 were as follows: September30,2009 December31,2008 Available-for-sale securities: Agency discount notes $ 160 $ 7,008 Other 2 1,149 Total available-for-sale securities 162 8,157 Trading securities auction-rate securities 136,612 139,398 UBS Right 20,943 28,158 Time deposits 189,090 13,493 Total investments $ 346,807 $ 189,206 The carrying value of the time deposits approximated fair value as of September30, 2009 and December31, 2008. Gross realized gains or losses on the sale of available-for-sale securities were immaterial for the periods presented. As of September30, 2009 and December31, 2008, available-for-sale securities in an unrealized loss or gain position were immaterial. All available-for-sale-securities at September30, 2009 and December31, 2008 contractually mature in 2009. Our investments in auction-rate securities are recorded at fair value and consist of AAA/A3-rated municipal bonds with an auction reset feature whose underlying assets are generally student loans, which are substantially backed by the Federal Family Education Loan Program (FFELP). Since February 2008, auctions for these securities have failed. The auction failures do not affect the value of the collateral underlying the auction-rate securities, and the Company continues to earn and receive interest on its auction-rate securities at a pre-determined formula with spreads tied to particular interest rate indices. As of September30, 2009 and December 31, 2008, the majority of our investment in auction-rate securities was classified as a long-term investment. The classification of the auction-rate securities as long-term investments is due to continuing auction failures, the securities stated maturity of greater than one year and the Companys ability and intent to hold such securities beyond one year. In November 2008, we accepted an offer from UBS AG (UBS) to sell to UBS, at par value ($157,775 as of September30, 2009), our auction-rate securities at any time during an exercise period from June30, 2010 to July2, 2012 (the UBS Right). In accepting the UBS Right, we granted UBS the authority to purchase these auction-rate securities or sell them on our behalf at par anytime after the execution of the UBS Right through July2, 2012. The offer is non-transferable. During the first nine months of 2009, $10,750 of auction rate securities were redeemed at par value. |
Note 4 - Accrued Expenses and O
Note 4 - Accrued Expenses and Other Current Liabilities | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 4 - Accrued Expenses and Other Current Liabilities | Note 4 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities are as follows: AsofSeptember30, 2009 AsofDecember31, 2008 Compensation and benefits $ 275,135 $ 187,063 Taxes 3,088 11,312 Customer volume incentives 33,022 24,560 Derivative contracts 11,282 Other 95,667 86,549 Total accrued expenses and other current liabilities $ 418,194 $ 309,484 |
Note 5 - Stock Repurchase Progr
Note 5 - Stock Repurchase Program | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 5 - Stock Repurchase Program | Note 5 Stock Repurchase Program Our current stock repurchase program authorizes both open market and private repurchase transactions of up to $50,000, excluding fees and expenses, of ClassA common stock through December 2009. The program authorizes us to repurchase shares opportunistically from time to time, depending on market conditions. During the three months ended March31, 2009, 650,000 shares were repurchased for $12,439 under this program. We did not purchase any shares during the second or third quarters of 2009. Additional stock repurchases were made in connection with our employee stock plan, whereby Company shares were tendered by employees for the payment of exercise price or applicable statutory withholding and India fringe benefit taxes. During the nine months ended September30, 2009, such repurchases totaled 74,528 shares at an aggregate cost of $2,125. At the time of repurchase, shares are returned to the status of authorized and unissued shares. We account for the repurchases as constructively retired and record such repurchases as a reduction of ClassA common stock and additional paid-in capital. |
Note 6 - Income Taxes
Note 6 - Income Taxes | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 6 - Income Taxes | Note 6 Income Taxes Our Indian subsidiaries (collectively referred to as Cognizant India) are export-oriented companies, which, under the Indian Income Tax Act of 1961, are entitled to claim tax holidays for a period of ten consecutive years for each Software Technology Park (STP) with respect to export profits for each STP. Substantially all of the earnings of Cognizant India are attributable to export profits. The majority of our STPs in India are currently entitled to a 100% exemption from Indian income tax. In August 2009, the tax holidays for STPs were extended by one year and are currently scheduled to expire on March31, 2011. In addition, we have located several new development centers in areas designated as Special Economic Zones (SEZs). Development centers operating in SEZs will be entitled to certain income tax incentives for periods up to 15 years. The incremental Indian taxes related to the taxable STPs, for which the income tax holiday has expired, have been incorporated into our effective income tax rate for 2009. The effective tax rate of 16.5% for the nine months ended September30, 2009 increased from 16.0% for the nine months ended September30, 2008. The principal difference between the income tax rates for the 2009 and 2008 periods and the U.S. federal statutory rate is the effect of the Indian tax holiday and earnings taxed in countries that have rates lower than the United States. |
Note 7 - Fair Value Measurement
Note 7 - Fair Value Measurements | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 7 - Fair Value Measurements | Note 7 Fair Value Measurements As discussed in Note 11Recent Accounting Pronouncements, on January1, 2008 we adopted the authoritative guidance for fair value measurements and fair value option for financial assets and liabilities, which primarily relate to our investments and derivative contracts. On January1, 2009, we adopted the fair value guidance for nonfinancial assets and liabilities. The authoritative guidance defines fair value as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entitys pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: Level 1 Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. Level 3 Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of September30, 2009: Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 524,581 $ $ $ 524,581 Investments: Available-for-sale securities current 162 162 Trading securities current 523 523 Trading securities non-current 136,089 136,089 UBS Right non-current 20,943 20,943 Other current assets: Derivative financial instruments forward foreign exchange contracts 7,736 7,736 Other current liabilities: Derivative financial instruments forward foreign exchange contracts (11,282 ) (11,282 ) Other assets: Derivative financial instruments forward foreign exchange contracts 260 260 Other long-term liabilities: Derivative financial instruments forward foreign exchange contracts (1,339 ) (1,339 ) Total assets and (liabilities) measured at fair value |
Note 8 - Derivative Financial I
Note 8 - Derivative Financial Instruments | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 8 - Derivative Financial Instruments | Note 8 Derivative Financial Instruments In the normal course of business, we use forward foreign exchange contracts to manage foreign currency exchange rate risk. The estimated fair value of the forward foreign exchange contracts considers the following items: discount rate, timing and amount of cash flow and counterparty credit risk. The following table provides information on the location and fair values of derivative financial instruments included in our condensed consolidated statements of financial position as of September30, 2009: Designation of Derivatives Location on Statement of Financial Position Assets Liabilities Cash Flow Hedges Designated as hedging instruments Forward foreign exchange contracts Other current assets $ 7,736 $ Accrued expenses and other current liabilities 1,905 Noncurrent liabilities 979 Total 7,736 2,884 Other Derivatives Not designated as hedging instruments Forward foreign exchange contracts Other assets 260 Accrued expenses and other current liabilities 9,377 Noncurrent liabilities 360 Total 260 9,737 Total $ 7,996 $ 12,621 As of December31, 2008, the fair value of derivative financial instruments included in our condensed consolidated statements of financial position was $598. Such amount related to forward foreign exchange contracts that were designated as cash flow hedges. We did not hold derivative financial instruments during the nine month period ended September30, 2008. Cash Flow Hedges During the fourth quarter of 2008 and the first nine months of 2009, we entered into a series of forward foreign exchange contracts that are designated as cash flow hedges of certain salary payments in India. These contracts are intended to partially offset the impact of movement of exchange rates on future operating costs and are scheduled to mature each month during 2009 and 2010. Under these contracts, we purchase Indian rupees and sell U.S. dollars and the changes in fair value of these contracts are initially reported in the caption accumulated other comprehensive income (loss) on our accompanying condensed consolidated statements of financial position and is subsequently reclassified to earnings in the same period the hedge contract settles. As of September30, 2009 and December31, 2008, the notional value of our outstanding contracts was $478,000 and $82,000, respectively, and the net unrealized gain included in accumulated other comprehensive income (loss) for such contracts was $4,671 and $576, respectively, Upon settlement or maturity of the cash flow hedge contracts, we record the related gain or loss, based on our designation at the commencement of the contract, to salary expense reported within cost of revenues and selling, general and administrative expenses. The tables below provide information on the location and amounts of gains or losses on our cash flow hedges included in our condensed consolidated |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 9 - Commitments and Contingencies | Note 9 Commitments and Contingencies As of September30, 2009, we had outstanding fixed capital commitments of approximately $44,223 related to our India development center expansion program. In connection with a 2008 acquisition, additional purchase price not to exceed $14,000, payable in 2010, is contingent on the acquired company achieving certain financial and operating targets during an earn-out period. We will fund such payment, if any, from operating cash flow. The ultimate amount payable cannot be reasonably estimated because the amount is dependent on future results of operations of the acquired business and therefore we have not recorded a liability for this item on our balance sheet because the definitive amount is not determinable or distributable. As this acquisition was completed in 2008, the contingent consideration, if paid, will be recorded as an additional element of the cost of the acquired company. We are involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the outcome of such claims and legal actions, if decided adversely, is not expected to have a material adverse effect on our business, financial condition and results of operations. Additionally, many of our engagements involve projects that are critical to the operations of our customers business and provide benefits that are difficult to quantify. Any failure in a customers computer systems or an unauthorized disclosure of sensitive or confidential client or customer data could result in a claim for substantial damages against us, regardless of our responsibility for such failure or unauthorized disclosure. Although we attempt to contractually limit our liability for damages arising from negligent acts, errors, mistakes, or omissions in rendering our services, there can be no assurance that the limitations of liability set forth in our contracts will be enforceable in all instances or will otherwise protect us from liability for damages. Although we have general liability insurance coverage, including coverage for errors or omissions, there can be no assurance that such coverage will 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 available insurance coverage or changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, would have a material adverse effect on our business, results of operations and financial condition. |
Note 10 - Segment Information
Note 10 - Segment Information | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 10 - Segment Information | Note 10 Segment Information Our reportable segments are: Financial Services, which includes customers providing banking/transaction processing, capital markets and insurance services; Healthcare, which includes healthcare providers and payers as well as life sciences customers; Manufacturing/Retail/Logistics, which includes manufacturers, retailers, travel and other hospitality customers, as well as customers providing logistics services; and Other, which is an aggregation of industry segments which, individually, are less than 10% of consolidated revenues and segment operating profit. The Other reportable segment includes media and information services, communications and high technology operating segments. Our sales managers, account executives, account managers and project teams are aligned in accordance with the specific industries they serve. Our chief operating decision maker evaluates the Companys performance and allocates resources based on segment revenues and operating profit. Segment operating profit is defined as income from operations before unallocated costs. Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as a per seat charge for use of our IT development centers. Certain expenses, such as general and administrative, and a portion of depreciation and amortization, are not specifically allocated to specific segments as management does not believe it is practical to allocate such costs to individual segments because they are not directly attributable to any specific segment. Further, stock-based compensation expense and the related stock-based Indian fringe benefit tax are not allocated to individual segments in internal management reports used by the chief operating decision maker. Accordingly, these expenses are separately disclosed as unallocated and adjusted only against our total income from operations. Additionally, management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably among the segments. Revenues from external customers and segment operating profit, before unallocated expenses, for the Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other reportable segments for the three and nine months ended September30, 2009 and 2008, are as follows: Three Months Ended September30, Nine Months Ended September30, 2009 2008 2009 2008 Revenues: Financial Services $ 364,196 $ 339,004 $ 1,028,086 $ 945,545 Healthcare 226,435 174,183 620,137 498,335 Manufacturing/Retail/Logistics 146,642 115,395 402,173 319,752 Other 116,215 106,144 325,546 299,627 Total revenues $ 853,488 $ 734,726 $ 2,375,942 $ 2,063,259 Three Months Ended September30, Nine Months Ended September30, 2009 2008 2009 2008 Segment Operating Profit: Financial Services $ 139,777 $ 113,981 $ 368,460 $ 327,162 Healthcare 9 |
Note 11 - Recent Accounting Pro
Note 11 - Recent Accounting Pronouncements | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 11 - Recent Accounting Pronouncements | Note 11 Recent Accounting Pronouncements In 2006, the Financial Accounting Standards Board (FASB) issued authoritative guidance which defines fair value, establishes a market-based framework or hierarchy for measuring fair value and expands disclosures about fair value measurements. It is appropriate to apply fair value measurements whenever other sections of the authoritative guidance requires or permits assets and liabilities to be measured at fair value. This authoritative guidance does not expand or require any new fair value measures, however the application of this statement may change current practice. We adopted this authoritative guidance for financial assets and liabilities effective January1, 2008 and for non-financial assets and liabilities effective January1, 2009. The adoption of this authoritative guidance, which primarily affected the valuation of our investments and derivative contracts, did not have a material effect on our financial condition or results of operations. In April 2009, the FASB issued several amendments to the accounting and disclosure requirements regarding fair value measurements and impairments of securities. These amendments are intended to provide guidance to: Determine fair values when there is no active market or where the price inputs being used represent distressed sales. It reaffirms the need to use judgment to ascertain if a formerly active market has become inactive and in determining fair values when markets have become inactive. Bring consistency to the timing of impairment recognition, and provide improved disclosures about the credit and noncredit components of impaired debt securities that are not expected to be sold. The measure of impairment in comprehensive income remains fair value. The amendment also requires increased and timelier disclosures regarding expected cash flows, credit losses, and an aging of securities with unrealized losses. Disclose financial instruments that are not currently reflected on the balance sheet at fair value. Prior to issuing this amendment, fair values for these assets and liabilities were only disclosed once a year. The amendment now requires these disclosures on a quarterly basis, providing qualitative and quantitative information about fair value estimates for all those financial instruments not measured on the balance sheet at fair value. We have elected to early adopt these amendments effective March31, 2009. The adoption of these amendments did not have a material effect on our financial condition or results of operations. In December 2007, the FASB revised the authoritative guidance for business combinations which establishes principles and requirements for how the acquiring entity in a business combination recognizes the full fair value of assets acquired and liabilities assumed in the transaction (whether a full or partial acquisition); establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed; requires expensing of transaction and restructuring costs; and requires the acquirer to disclose the information needed to evaluate and understan |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 12 - Subsequent Events | Note 12 Subsequent Events On October15, 2009, we entered into a definitive agreement with UBS AG to acquire UBS Service Centre (India) Private Limited (UBS ISC) for a purchase price of approximately $75,000. The completion of this acquisition is subject to the satisfaction of certain closing conditions. |
Document Information
Document Information | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-09-30 |
Entity Information
Entity Information (USD $) | ||
9 Months Ended
Sep. 30, 2009 | Nov. 02, 2009
| |
Entity [Text Block] | ||
Trading Symbol | CTSH | |
Entity Registrant Name | COGNIZANT TECHNOLOGY SOLUTIONS CORP | |
Entity Central Index Key | 0001058290 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 294,713,446 |