Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 11, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-35418 | ||
Entity Registrant Name | EPAM SYSTEMS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 22-3536104 | ||
Entity Address, Address Line One | 41 University Drive | ||
Entity Address, Address Line Two | Suite 202 | ||
Entity Address, City or Town | Newtown | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 18940 | ||
City Area Code | 267 | ||
Local Phone Number | 759-9000 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | EPAM | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 27,963,532,231 | ||
Entity Common Stock, Shares Outstanding | 56,878,539 | ||
Documents Incorporated by Reference | The registrant intends to file a definitive Proxy Statement for its 2022 annual meeting of stockholders pursuant to Regulation 14A within 120 days of the end of the registrant’s fiscal year ended December 31, 2021. Portions of the registrant’s Proxy Statement are incorporated by reference into Part III of this Annual Report on Form 10-K. With the exception of the portions of the Proxy Statement expressly incorporated by reference, such document shall not be deemed filed with this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001352010 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Philadelphia, Pennsylvania |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 1,446,625 | $ 1,322,143 |
Short-term investments | 0 | 60,007 |
Trade receivables and contract assets, net of allowance of $5,521 and $4,886, respectively | 768,928 | 501,062 |
Prepaid and other current assets | 53,927 | 29,570 |
Total current assets | 2,269,480 | 1,912,782 |
Property and equipment, net | 236,214 | 169,533 |
Operating lease right-of-use assets, net | 184,841 | 228,672 |
Intangible assets, net | 101,143 | 51,975 |
Goodwill | 530,723 | 211,956 |
Deferred tax assets | 143,928 | 92,454 |
Other noncurrent assets | 56,898 | 53,960 |
Total assets | 3,523,227 | 2,721,332 |
Current liabilities | ||
Accounts payable | 24,847 | 10,189 |
Accrued compensation and benefits expenses | 502,997 | 294,709 |
Accrued expenses and other current liabilities | 142,014 | 79,690 |
Short-term debt | 16,018 | 0 |
Income taxes payable, current | 27,440 | 20,603 |
Operating lease liabilities, current | 50,104 | 60,759 |
Total current liabilities | 763,420 | 465,950 |
Long-term debt | 30,234 | 25,038 |
Income taxes payable, noncurrent | 42,454 | 43,448 |
Operating lease liabilities, noncurrent | 142,802 | 180,604 |
Other noncurrent liabilities | 48,480 | 23,274 |
Total liabilities | 1,027,390 | 738,314 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value; 160,000 authorized; 56,868 and 56,128 shares issued, 56,849 and 56,108 shares outstanding at December 31, 2021 and December 31, 2020, respectively | 57 | 56 |
Additional paid-in capital | 711,912 | 660,771 |
Retained earnings | 1,829,532 | 1,347,880 |
Treasury stock | (177) | (177) |
Accumulated other comprehensive loss | (54,207) | (25,512) |
Total EPAM Systems Inc. stockholders’ equity | 2,487,117 | 1,983,018 |
Noncontrolling interest in consolidated subsidiaries | 8,720 | 0 |
Total equity | 2,495,837 | 1,983,018 |
Total liabilities and stockholders’ equity | $ 3,523,227 | $ 2,721,332 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Trade receivables and contract assets, allowance | $ 5,521 | $ 4,886 |
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 56,868,000 | 56,128,000 |
Common stock, shares outstanding (in shares) | 56,849,000 | 56,108,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenues | $ 3,758,144 | $ 2,659,478 | $ 2,293,798 |
Operating expenses: | |||
Cost of revenues (exclusive of depreciation and amortization) | 2,483,697 | 1,732,522 | 1,488,198 |
Selling, general and administrative expenses | 648,736 | 484,758 | 457,433 |
Depreciation and amortization expense | 83,395 | 62,874 | 45,317 |
Income from operations | 542,316 | 379,324 | 302,850 |
Interest and other (loss)/income, net | (1,727) | 3,822 | 8,725 |
Foreign exchange loss | (7,197) | (4,667) | (12,049) |
Income before provision for income taxes | 533,392 | 378,479 | 299,526 |
Provision for income taxes | 51,740 | 51,319 | 38,469 |
Net income | $ 481,652 | $ 327,160 | $ 261,057 |
Net income per share: | |||
Basic (in dollars per share) | $ 8.52 | $ 5.87 | $ 4.77 |
Diluted (in dollars per share) | $ 8.15 | $ 5.60 | $ 4.53 |
Shares used in calculation of net income per share: | |||
Basic (in shares) | 56,511 | 55,727 | 54,719 |
Diluted (in shares) | 59,064 | 58,446 | 57,668 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 481,652 | $ 327,160 | $ 261,057 |
Other comprehensive (loss)/income: | |||
Change in foreign currency translation adjustments, net of tax | (24,579) | 4,498 | 6,295 |
Change in unrealized (loss)/gain on hedging instruments, net of tax | (7,059) | 2,350 | 3,845 |
Defined benefit pension plans - actuarial gain/(loss), net of tax | 2,943 | (986) | 0 |
Other comprehensive (loss)/income | (28,695) | 5,862 | 10,140 |
Comprehensive income | $ 452,957 | $ 333,022 | $ 271,197 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative effect of adoption | Adjusted balance | Accumulated Other Comprehensive (Loss)/ Income | Accumulated Other Comprehensive (Loss)/ IncomeAdjusted balance | Common Stock | Common StockRestricted stock | Common StockRestricted stock units | Common StockAdjusted balance | Additional Paid-in Capital | Additional Paid-in CapitalAdjusted balance | Retained Earnings | Retained EarningsCumulative effect of adoption | Retained EarningsAdjusted balance | Treasury Stock | Treasury StockAdjusted balance | Non-controlling interest |
Balance, beginning of period (in shares) at Dec. 31, 2018 | 54,080 | 20 | |||||||||||||||
Balance, beginning of period at Dec. 31, 2018 | $ 1,262,596 | $ (41,514) | $ 54 | $ 544,700 | $ 759,533 | $ (177) | $ 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock units vested (in shares) | 19 | 285 | |||||||||||||||
Restricted stock units withheld for employee taxes (in shares) | (95) | ||||||||||||||||
Restricted stock units withheld for employee taxes | (15,951) | (15,951) | |||||||||||||||
Stock-based compensation expense | 41,256 | 41,256 | |||||||||||||||
Proceeds from stock options exercises (in shares) | 899 | ||||||||||||||||
Proceeds from stock option exercises | 37,047 | $ 1 | 37,046 | ||||||||||||||
Other comprehensive (loss)/income | 10,140 | 10,140 | |||||||||||||||
Net income | 261,057 | 261,057 | |||||||||||||||
Balance, end of period (in shares) at Dec. 31, 2019 | 55,188 | 55,188 | 20 | 20 | |||||||||||||
Balance, end of period at Dec. 31, 2019 | 1,596,145 | $ 130 | $ 1,596,275 | (31,374) | $ (31,374) | $ 55 | $ 55 | 607,051 | $ 607,051 | 1,020,590 | $ 130 | $ 1,020,720 | $ (177) | $ (177) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock units vested (in shares) | 327 | ||||||||||||||||
Restricted stock units withheld for employee taxes (in shares) | (106) | ||||||||||||||||
Restricted stock units withheld for employee taxes | (20,190) | (20,190) | |||||||||||||||
Stock-based compensation expense | 47,462 | 47,462 | |||||||||||||||
Proceeds from stock options exercises (in shares) | 699 | ||||||||||||||||
Proceeds from stock option exercises | 26,449 | $ 1 | 26,448 | ||||||||||||||
Other comprehensive (loss)/income | 5,862 | 5,862 | |||||||||||||||
Net income | $ 327,160 | 327,160 | |||||||||||||||
Balance, end of period (in shares) at Dec. 31, 2020 | 56,108 | 56,108 | 20 | ||||||||||||||
Balance, end of period at Dec. 31, 2020 | $ 1,983,018 | (25,512) | $ 56 | 660,771 | 1,347,880 | $ (177) | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock units vested (in shares) | 311 | ||||||||||||||||
Restricted stock units withheld for employee taxes (in shares) | (106) | ||||||||||||||||
Restricted stock units withheld for employee taxes | (45,070) | (45,070) | |||||||||||||||
Stock-based compensation expense | 68,709 | 68,709 | |||||||||||||||
Proceeds from stock options exercises (in shares) | 536 | ||||||||||||||||
Proceeds from stock option exercises | 26,313 | $ 1 | 26,312 | ||||||||||||||
Employee Stock Purchase Plan | 1,190 | 1,190 | |||||||||||||||
Other comprehensive (loss)/income | (28,695) | (28,695) | |||||||||||||||
Noncontrolling interests acquired in business combination | 10,469 | 10,469 | |||||||||||||||
Purchase of noncontrolling interest | (1,749) | (1,749) | |||||||||||||||
Net income | $ 481,652 | 481,652 | |||||||||||||||
Balance, end of period (in shares) at Dec. 31, 2021 | 56,849 | 56,849 | 20 | ||||||||||||||
Balance, end of period at Dec. 31, 2021 | $ 2,495,837 | $ (54,207) | $ 57 | $ 711,912 | $ 1,829,532 | $ (177) | $ 8,720 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 481,652 | $ 327,160 | $ 261,057 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 83,401 | 62,874 | 45,317 |
Operating lease right-of-use assets amortization expense | 61,750 | 66,369 | 55,859 |
Bad debt expense | 2,488 | 2,253 | 1,619 |
Deferred taxes | (46,900) | (19,994) | (7,764) |
Stock-based compensation expense | 111,655 | 75,238 | 72,036 |
Other | 13,137 | 6,796 | 4,764 |
Changes in assets and liabilities: | |||
Trade receivables and contract assets | (211,684) | 4,235 | (87,174) |
Prepaid and other assets | (16,182) | 6,983 | (7,155) |
Accounts payable | (2,403) | 2,428 | (1,685) |
Accrued expenses and other liabilities | 155,657 | 60,133 | 27,125 |
Operating lease liabilities | (63,812) | (64,453) | (53,419) |
Income taxes payable | 3,568 | 14,385 | (23,127) |
Net cash provided by operating activities | 572,327 | 544,407 | 287,453 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (111,501) | (68,793) | (99,308) |
Purchases of short-term investments | 0 | (120,000) | 0 |
Proceeds from short-term investments | 60,000 | 60,009 | 0 |
Acquisition of businesses, net of cash acquired | (314,958) | (18,888) | (39,322) |
Purchases of non-marketable securities | (2,544) | (20,500) | (5,000) |
Other investing activities, net | 79 | 1,018 | (1,739) |
Net cash used in investing activities | (368,924) | (167,154) | (145,369) |
Cash flows from financing activities: | |||
Proceeds from stock option exercises | 26,286 | 26,410 | 37,003 |
Payments of withholding taxes related to net share settlements of restricted stock units | (41,598) | (20,132) | (15,503) |
Proceeds from debt | 31,109 | 0 | 0 |
Repayment of debt | (31,054) | (18) | (9) |
Payment of contingent consideration for previously acquired businesses | (40,227) | (7,004) | (1,104) |
Purchase of noncontrolling interest | (1,749) | 0 | 0 |
Other financing activities, net | (2,324) | (21) | (24) |
Net cash (used in)/provided by financing activities | (59,557) | (765) | 20,363 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (18,032) | 9,357 | 3,530 |
Net increase in cash, cash equivalents and restricted cash | 125,814 | 385,845 | 165,977 |
Cash, cash equivalents and restricted cash, beginning of period | 1,323,533 | 937,688 | 771,711 |
Cash, cash equivalents and restricted cash, end of period | 1,449,347 | 1,323,533 | 937,688 |
Cash paid during the year for: | |||
Income taxes, net of refunds | 87,317 | 54,520 | 65,306 |
Interest | 413 | 425 | 832 |
Supplemental disclosure of non-cash investing and financing activities | |||
Acquisition-date fair value of contingent consideration issued for acquisition of businesses | 57,249 | 7,119 | 3,876 |
Capital expenditures incurred but not yet paid | $ 7,738 | $ 1,582 | $ 16,921 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 1,446,625 | $ 1,322,143 | $ 936,552 |
Total restricted cash | 2,722 | 1,390 | 1,136 |
Total cash, cash equivalents and restricted cash | 1,449,347 | 1,323,533 | 937,688 |
Prepaid and other current assets | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Restricted cash in Prepaid and other current assets | 495 | 106 | 0 |
Other noncurrent assets | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Restricted cash in Other noncurrent assets | $ 2,227 | $ 1,284 | $ 1,136 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading global provider of digital platform engineering and software development services to customers located around the world, primarily in North America, Europe, and Asia. The Company’s industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as other emerging industries. The Company is incorporated in Delaware with headquarters in Newtown, Pennsylvania. Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM and its subsidiaries. All intercompany balances and transactions have been eliminated. Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the financial statements. Cash and Cash Equivalents — Cash equivalents are short-term, highly liquid investments and deposits that are readily convertible into cash, with maturities of three months or less at the date acquired. Highly liquid investments with maturities greater than three months at the date acquired are reported separately from cash equivalents. Trade Receivables and Contract Assets — The Company classifies its right to consideration in exchange for deliverables as either a trade receivable or a contract asset. A trade receivable is a right to consideration that is unconditional (i.e., only the passage of time is required before payment is due) regardless of whether the amounts have been billed. Trade receivables are stated net of allowance for doubtful accounts. Outstanding trade receivables are reviewed periodically and allowances are provided for the estimated amount of receivables that may not be collected. The allowance for doubtful accounts is determined based on historical experience and management’s evaluation of trade receivables. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets primarily relate to unbilled amounts on fixed-price contracts. Contract assets are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. The Company recognizes an impairment loss when the contract carrying amount is greater than the remaining consideration receivable, less directly related costs to be incurred. Property and Equipment — Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets generally ranging from two Business Combinations — The Company accounts for business combinations using the acquisition method which requires it to estimate the fair value of identifiable assets acquired and liabilities assumed, including any contingent consideration, to properly allocate the purchase price to the individual assets acquired and liabilities assumed in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations . The allocation of the purchase price utilizes significant estimates in determining the fair values of identifiable assets acquired and liabilities assumed, especially with respect to intangible assets. The significant estimates and assumptions used include the timing and amount of forecasted revenues and cash flows, anticipated growth rates, customer attrition rates, the discount rate reflecting the risk inherent in future cash flows and the useful lives for finite-lived assets. There are different valuation models for each component, the selection of which requires considerable judgment. These determinations will affect the amount of amortization expense recognized in future periods. The Company bases its fair value estimates on assumptions it believes are reasonable, but recognizes that the assumptions are inherently uncertain. The acquired assets typically include customer relationships, software, trade names, non-competition agreements, and assembled workforce and as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. If the initial accounting for the business combination has not been completed by the end of the reporting period in which the business combination occurs, provisional amounts are reported to present information about facts and circumstances that existed as of the acquisition date. Once the measurement period ends, which in no case extends beyond one year from the acquisition date, revisions to the accounting for the business combination are recorded in earnings. In some business combinations, the Company agrees to contingent consideration arrangements and the Company determines the fair value of the contingent consideration liabilities using Monte Carlo simulations (which involve a simulation of future revenues and earnings during the earn-out period using management’s best estimates) or probability-weighted expected return methods. Changes in financial projections, market risk assumptions, discount rates or probability assumptions related to achieving the various earn-out criteria would result in a change in the fair value of contingent consideration. Such changes, if any, are recorded within Interest and other income, net in the Company’s consolidated statements of income. All acquisition-related costs, other than the costs to issue debt or equity securities, are accounted for as expenses in the period in which they are incurred. Changes in the fair value of contingent consideration arrangements that are not measurement period adjustments are recognized in earnings. Long-Lived Assets — Long-lived assets, such as property and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the carrying value of an asset is more than the sum of the undiscounted expected future cash flows, an impairment is recognized. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill and other intangible assets that have indefinite useful lives are accounted for in accordance with FASB ASC 350, Intangibles — Goodwill and Other . The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31st, and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is an operating segment or one level below. The Company does not have intangible assets other than goodwill that have indefinite useful lives. Derivative Financial Instruments — The Company enters into derivative financial instruments to manage exposure to fluctuations in certain foreign currencies. The Company measures these foreign currency derivative contracts at fair value on a recurring basis utilizing Level 2 inputs and recognizes them as either assets or liabilities in its consolidated balance sheets. The Company records changes in the fair value of these hedges in accumulated other comprehensive income/(loss) until the forecasted transaction occurs. When the forecasted transaction occurs, the Company reclassifies the related gain or loss on the cash flow hedge to cost of revenues (exclusive of depreciation and amortization). In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the Company reclassifies the gain or loss on the underlying hedge into income. If the Company does not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in income. The cash flow impact of derivatives identified as hedging instruments is reflected as cash flows from operating activities. The cash flow impact of derivatives not identified as hedging instruments is reflected as cash flows from investing activities. Fair Value of Financial Instruments — The Company makes assumptions about fair values of its financial assets and liabilities in accordance with FASB ASC Topic 820, Fair Value Measurement , and utilizes the following fair value hierarchy in determining inputs used for valuation: Level 1 — Quoted prices for identical assets or liabilities in active markets. Level 2 — Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. Level 3 — Unobservable inputs reflecting management’s view about the assumptions that market participants would use in pricing the asset or liability. Where the fair values of financial assets and liabilities recorded in the consolidated balance sheets cannot be derived from an active market, they are determined using a variety of valuation techniques. These valuation techniques include a net present value technique, comparison to similar instruments with market observable inputs, option pricing models and other relevant valuation models. To the extent possible, observable market data is used as inputs into these models but when it is not feasible, a degree of judgment is required to establish fair values. Changes in the fair value of liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 4 “Fair Value Measurements.” Accumulated Other Comprehensive Loss — Accumulated other comprehensive loss (“AOCI”) consists of changes in the cumulative foreign currency translation adjustments and actuarial gains and losses on defined benefit pension plans. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with FASB ASC Topic 815, Derivatives and Hedging. Changes in the fair values of these foreign currency exchange contracts are recognized in AOCI on the Company's consolidated balance sheets until the settlement of those contracts. Revenue Recognition — The Company recognizes revenue in accordance with ASC 606 which requires entities to recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services as well as requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company recognizes revenues when control of goods or services is passed to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Such control may be transferred over time or at a point in time depending on satisfaction of obligations stipulated by the contract. Consideration expected to be received may consist of both fixed and variable components and is allocated to each separately identifiable performance obligation based on the performance obligation’s relative standalone selling price. Variable consideration usually takes the form of volume-based discounts, service level credits, price concessions or incentives. Determining the estimated amount of such variable consideration involves assumptions and judgment that can have an impact on the amount of revenues reported. The Company derives revenues from a variety of service arrangements, which have been evolving to provide more customized and integrated solutions to customers by combining software engineering with customer experience design, business consulting and technology innovation services. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. The Company generates the majority of its revenues under time-and-material contracts, which are billed using hourly, daily or monthly rates to determine the amounts to be charged directly to the customer. The Company applies a practical expedient and revenues related to time-and-material contracts are recognized based on the right to invoice for services performed. Fixed-price contracts include maintenance and support arrangements which may exceed one year in duration. Maintenance and support arrangements generally relate to the provision of ongoing services and revenues for such contracts are recognized ratably over the expected service period. Fixed-price contracts also include application development arrangements, where progress towards satisfaction of the performance obligation is measured using input or output methods and input methods are used only when there is a direct correlation between hours incurred and the end product delivered. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. Revenues from licenses which have significant stand-alone functionality are recognized at a point in time when control of the license is transferred to the customer. Revenues from licenses which do not have stand-alone functionality are recognized over time. If there is an uncertainty about the receipt of payment for the services, revenue recognition is deferred until the uncertainty is sufficiently resolved. The Company applies a practical expedient and does not assess the existence of a significant financing component if the period between transfer of the service to a customer and when the customer pays for that service is one year or less. The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries, bonuses, fringe benefits, stock-based compensation, project related travel costs and fees for subcontractors that are assigned to customer projects. Salaries and other compensation expenses of the Company’s delivery professionals are reported as cost of revenues regardless of whether the employees are actually performing customer services during a given period. Selling, General and Administrative Expenses — Consists of expenses associated with promoting and selling the Company’s services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation, severance, bad debt, travel, legal and accounting services, insurance, facilities including operating leases, advertising and other promotional activities, and certain non-income taxes. Stock-Based Compensation — The Company recognizes the cost of its equity settled stock-based incentive awards based on the fair value of the award at the date of grant, net of estimated forfeitures. The grant date fair value for stock options and stock purchase rights under the Employee Stock Purchase Plan (”ESPP”) is estimated using the Black-Scholes option-pricing valuation model. The cost is generally expensed evenly over the service period, unless otherwise specified by the award agreement. The service period is the period over which the employee performs the related services, which is normally the same as the vesting period. Equity-based awards that do not require future service are expensed immediately. For awards with performance conditions, the amount of compensation cost we recognize over the requisite service period is based on the actual or expected achievement of the performance condition. Quarterly, the forfeiture assumption is adjusted to reflect actual forfeitures and such adjustment may affect the timing of recognition of the total amount of expense recognized over the vesting period. Stock-based awards that do not meet the criteria for equity classification are recorded as liabilities and adjusted to fair value at the end of each reporting period. Income Taxes — The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes. The realizability of deferred tax assets is primarily dependent on future earnings. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. A reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings. The United States subjects corporations to taxes on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The Company elected to provide for the tax expense related to GILTI in the year the tax is incurred. Earnings per Share (“EPS”) — Basic EPS is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period, increased by the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock, unvested restricted stock units (“RSUs”) and the stock to be issued under the ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Foreign Currency Translation — Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income/(loss). For consolidated foreign subsidiaries whose functional currency is not the local currency, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur. Risks and Uncertainties — As a result of its global operations, the Company may be subject to certain inherent risks. Concentration of Credit — Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, short-term investments and trade receivables. The Company maintains cash, cash equivalents and short-term investments with financial institutions. The Company believes its credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. The Company has cash in countries, including Russia, Belarus and Ukraine, where the banking sector remains subject to periodic instability, banking and other financial systems generally do not meet the banking standards of more developed markets, and bank deposits made by corporate entities are not insured. As of December 31, 2021, the Company had $232.6 million of cash and cash equivalents in banks in Russia, Belarus and Ukraine, representing 16.1% of the Company’s total cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions considered stable in the region, limits the amount of credit exposure with any one financial institution and conducts ongoing evaluations of the credit worthiness of the financial institutions with which it does business. A banking crisis, bankruptcy or insolvency of banks that process or hold the Company’s funds, or sanctions may result in the loss of deposits or adversely affect the Company’s ability to complete banking transactions, which could adversely affect the Company’s business and financial condition. Cash in these countries is used for the operational needs of the local entities and cash balances change with the expected operating needs of these entities. The Company regularly monitors cash held in these countries and, to the extent the cash held exceeds amounts required to support its operations in these countries, the Company distributes the excess funds into markets with more developed banking sectors. Trade receivables are generally dispersed across many customers operating in different industries; therefore, concentration of credit risk is limited. Historically, credit losses and write-offs of trade receivables have not been material to the consolidated financial statements. If any of our customers enter bankruptcy protection or otherwise take steps to alleviate their financial distress, the Company’s credit losses and write-offs of trade receivables could increase, which would negatively impact its results of operations. Foreign currency risk — The Company’s global operations are conducted predominantly in U.S. dollars. Other than U.S. dollars, the Company generates revenues in various currencies, principally, euros, British pounds, Russian rubles, Swiss francs, and Canadian dollars and incurs expenditures principally in Russian rubles, Polish zlotys, euros, Swiss francs, Hungarian forints, British pounds, Indian rupees, Chinese yuan renminbi and Mexican pesos. The Company’s international operations expose it to foreign currency exchange rate changes that could impact translations of foreign denominated assets and liabilities into U.S. dollars and future earnings and cash flows from transactions denominated in different currencies. The Company is exposed to fluctuations in foreign currency exchange rates primarily related to trade receivables from sales in foreign currencies and cash outflows for expenditures in foreign currencies. The Company’s results of operations, primarily revenues and expenses denominated in foreign currencies, can be affected if any of the currencies, which are used materially in the Company’s business, appreciate or depreciate against the U.S. dollar. The Company has a hedging program whereby it entered into a series of foreign exchange forward contracts with durations of twelve months or less that are designated as cash flow hedges of forecasted Russian ruble, Polish zloty, Indian rupee and Hungarian forint transactions. Interest rate risk — The Company’s exposure to market risk is influenced by the changes in interest rates received on cash and cash equivalent deposits and short-term investments and paid on any outstanding balance on the Company’s borrowings, mainly under the 2021 Credit Facility, which is subject to a variety of rates depending on the type and timing of funds borrowed (See Note 9 “Debt”). The Company does not believe it is exposed to material direct risks associated with changes in interest rates related to these deposits and borrowings. Adoption of New Accounting Standards Unless otherwise discussed below, the adoption of new accounting standards did not have a material impact on the Company’s consolidated financial position, results of operations, and cash flows. Business Combinations - In October 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with ASC Topic 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted, including adoption in an interim period. An entity that adopts in an interim period should apply the amendments retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application. The Company early adopted this guidance in the fourth quarter of 2021, retrospectively to January 1, 2021. The adoption did not have a material impact on the previously reported unaudited interim condensed consolidated financial statements. Measurement of Credit Losses on Financial Instruments — In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update changed how companies measure and recognize credit impairment for many financial assets. The new credit loss model requires companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets, including trade receivables, that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. The Company adopted Topic 326, effective January 1, 2020, using a modified-retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. As a result of the adoption of Topic 326, the Company recorded an immaterial reduction to its allowance for doubtful accounts for trade receivables and contract assets . Pending Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that the Company will adopt according to the various timetables the FASB specifies. The Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS test IO — On April 30, 2019, the Company acquired 100% of the equity interests of a crowdtesting company, test IO GmbH, and its subsidiary (“test IO”). In connection with the test IO acquisition, the Company paid $17.3 million of cash. PolSource — On April 2, 2021, the Company acquired 100% of PolSource S.A. and its subsidiaries (“PolSource”), a Salesforce Platinum Consulting Partner with more than 350 experienced Salesforce specialists for a purchase price of $148.2 million including contingent consideration with an acquisition-date fair value of $35.4 million. At the time of the acquisition, the Company committed to paying up to $45.0 million in contingent consideration, subject to attainment of certain revenue, earnings and operational targets. CORE — On July 23, 2021, the Company acquired 100% of CORE SE and its subsidiaries (“CORE”), a professional service provider specializing in IT strategy and technology-driven transformations with office locations in Europe and the Middle East for a purchase price of $50.2 million including contingent consideration with an acquisition-date fair value of $4.0 million and deferred consideration of $7.8 million. The Company could pay up to $8.1 million in contingent consideration and the actual future payout is subject to attainment of certain revenue, earnings and operational targets. Emakina — On November 3, 2021, the Company completed the acquisition of 98.69% of Emakina Group SA and its subsidiaries (“Emakina”), a group of independent digital agencies, for a purchase price of $143.4 million in cash. On November 30, 2021, the Company completed the acquisition of the remaining 1.31% of Emakina Group SA’s outstanding shares for a purchase price of $1.7 million in cash. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of each respective acquisition and updated for any changes as of December 31, 2021: test IO PolSource CORE Emakina Cash and cash equivalents $ 663 $ 2,565 $ 11,283 $ 5,142 Trade receivables and contract assets 621 12,734 10,266 34,389 Prepaid and other current assets 150 814 5,562 3,109 Goodwill 11,926 125,339 23,234 136,614 Intangible assets 6,219 15,790 8,368 30,488 Property and equipment and other noncurrent assets 305 461 4,585 17,059 Total assets acquired $ 19,884 $ 157,703 $ 63,298 $ 226,801 Accounts payable, accrued expenses and other current liabilities $ 993 $ 5,337 $ 8,508 $ 36,042 Short-term debt — — — 13,657 Long-term debt — — — 8,874 Operating lease liability, noncurrent — 157 2,056 5,411 Other noncurrent liabilities 1,568 4,037 2,525 8,337 Total liabilities assumed $ 2,561 $ 9,531 $ 13,089 $ 72,321 Noncontrolling interest in consolidated subsidiaries — — — 10,469 Net assets acquired $ 17,323 $ 148,172 $ 50,209 $ 144,011 For the test IO acquisition, during 2019, the Company recorded purchase price adjustments, which increased the original purchase price and adjusted related working capital accounts increasing the original amount of the net assets acquired by $0.1 million. In addition, for the test IO acquisition, the Company reduced the value of acquired intangible assets by $0.1 million with a corresponding increase to goodwill. During the second quarter of 2020, the Company finalized the fair value of the assets acquired and liabilities assumed in the acquisition of test IO and recorded insignificant purchase price adjustments to various accounts with corresponding net decreases to goodwill of $0.2 million. During the year ended December 31, 2021, the Company updated the valuation of the acquired assets and liabilities of PolSource resulting in a corresponding increase in the value of acquired goodwill of $11.8 million, primarily attributable to a $10.4 million increase in the fair value of contingent consideration. The effect of adjustments recorded during the three months ended December 31, 2021 that would have been recognized in a prior period if the adjustment to the preliminary amounts had been recognized as of the acquisition date of PolSource was not material. For the acquisition of PolSource, the estimated fair values of the assets acquired and liabilities assumed are provisional and based on the information that was available as of the acquisition date. The Company expects to complete the purchase price allocations as soon as practicable but no later than one year from the acquisition date. During the year ended December 31, 2021, the Company adjusted working capital accounts and recorded a purchase price adjustment for CORE, which increased the net assets acquired by $2.2 million. The effect of adjustments recorded during the three months ended December 31, 2021 that would have been recognized in a prior period if the adjustment to the preliminary amounts had been recognized as of the acquisition date of CORE was not material. For the acquisition of CORE, he estimated fair values of the assets acquired and liabilities assumed are provisional and based on the information that was available as of the acquisition date. The Company expects to complete the purchase price allocations as soon as practicable but no later than one year from the acquisition date. For the acquisition of Emakina, the estimated fair values of the assets acquired, liabilities assumed and noncontrolling interest are provisional and based on the information that was available as of the acquisition date. The Company expects to complete the purchase price allocations as soon as practicable but no later than one year from the acquisition date. The following table presents the estimated fair values and useful lives of intangible assets acquired from test IO, PolSource, CORE and Emakina as of the date of each respective acquisition and updated for any changes as of December 31, 2021: test IO PolSource CORE Emakina Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 7 $ 2,456 6 $ 14,790 6 $ 7,779 7 $ 27,822 Software 6 3,461 — — — — — — Trade names 4 302 3 1,000 5 589 3 2,666 Total $ 6,219 $ 15,790 $ 8,368 $ 30,488 The goodwill recognized as a result of the test IO acquisition is attributable primarily to strategic and synergistic opportunities related to the consulting and design businesses, the assembled workforces acquired and other factors. The goodwill recognized as a result of the PolSource acquisition is attributable to synergies expected to be achieved by combining the businesses of EPAM and PolSource, expected future contracts, the assembled workforce acquired and other factors. The goodwill recognized as a result of the CORE acquisition is attributable to synergies expected to be achieved by expanding the Company’s ability to support customers as a strategic consultant in Europe and the Middle East, expected future contracts, the assembled workforce acquired and other factors. The goodwill recognized as a result of the Emakina acquisition is attributable to synergies expected to be achieved by enhancing EPAM’s digital experience practice as well as augmenting offerings in digital design and engineering capabilities, expected future contracts, the assembled workforce and other factors. The goodwill acquired as a result of the test IO, PolSource, CORE and Emakina acquisitions is not expected to be deductible for income tax purposes. The Company recognized acquisition-related costs associated with the PolSource, CORE and Emakina acquisitions during the year ended December 31, 2021 totaling $1.4 million, $1.2 million and $1.0 million, respectively. These costs are included in Selling, general and administrative expenses in the accompanying consolidated statement of income. Revenues generated by PolSource, CORE and Emakina included in the Company’s consolidated statement of income totaled $55.0 million, $14.1 million and $24.7 million during the year ended December 31, 2021, respectively. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. Other 2019 Acquisitions — During the year ended December 31, 2019, the Company completed four additional acquisitions with an aggregate cash purchase price of $24.8 million and committed to making cash earnout payments with a maximum amount payable of $3.0 million subject to attainment of specified performance targets ranging from 12 months to 24 months after the respective acquisition dates. These acquisitions increased EPAM’s educational service and platform offerings and expanded the Company’s geographical reach, as well as added $7.5 million in intangible assets, consisting mainly of customer relationships. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. 2020 Acquisitions — During the year ended December 31, 2020, the Company completed two acquisitions with an aggregate purchase price of $22.5 million including contingent consideration with an aggregate acquisition-date fair value of $5.3 million. The Company committed to making contingent consideration payments with a maximum aggregate amount payable of $18.6 million subject to attainment of specified performance targets in the first and second calendar years after the respective acquisition dates. These acquisitions increased EPAM’s software and service capabilities and expanded EPAM’s offerings in financial services as well as added $7.3 million of intangible assets, consisting mainly of customer relationships. Revenues generated by these acquisitions totaled $6.0 million for the year ended December 31, 2020. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. Other 2021 Acquisitions — During the year ended December 31, 2021, the Company completed four additional acquisitions with an aggregate purchase price of $65.2 million including contingent consideration with an acquisition-date fair value of $17.6 million. The Company could pay up to $30.2 million in contingent consideration and the actual future payouts are subject to attainment of specified performance targets during the periods ranging from 12 months to 48 months after the respective acquisition dates. These acquisitions increased EPAM’s e-platform offerings and expanded the Company’s geographical reach as well as added $14.1 million in intangible assets, consisting mainly of customer relationships. Revenues generated by these Other 2021 Acquisitions totaled $19.5 million during the year ended December 31, 2021. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill by reportable segment was as follows: North America Europe Russia Total Balance as of January 1, 2020 $ 113,426 $ 80,873 $ 744 $ 195,043 2020 Acquisitions 6,042 6,903 — 12,945 test IO purchase accounting adjustments 863 (1,089) — (226) Other 2019 Acquisitions purchase accounting adjustments 219 259 21 499 Effect of net foreign currency exchange rate changes 582 3,160 (47) 3,695 Balance as of December 31, 2020 121,132 90,106 718 211,956 Emakina acquisition — 136,614 — 136,614 PolSource acquisition 75,203 50,136 — 125,339 CORE acquisition — 23,234 — 23,234 Other 2021 Acquisitions 21,875 18,830 — 40,705 2020 Acquisitions purchase accounting adjustments — (24) — (24) Effect of net foreign currency exchange rate changes (616) (6,483) (2) (7,101) Balance as of December 31, 2021 $ 217,594 $ 312,413 $ 716 $ 530,723 The Russia segment had accumulated goodwill impairment losses of $2.2 million as of December 31, 2021, 2020 and 2019. There were no accumulated goodwill impairment losses in the North America or Europe reportable segments as of December 31, 2021, 2020 or 2019. Intangible assets other than goodwill as of December 31, 2021 and 2020 were as follows: As of December 31, 2021 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net Customer relationships 10 $ 156,118 $ (64,441) $ 91,677 Trade names 6 10,933 (6,086) 4,847 Software 6 6,223 (2,639) 3,584 Contract royalties 8 1,900 (910) 990 Assembled workforce 3 161 (116) 45 Total $ 175,335 $ (74,192) $ 101,143 As of December 31, 2020 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net Customer relationships 9 $ 94,169 $ (49,415) $ 44,754 Trade names 5 6,495 (5,273) 1,222 Software 6 6,309 (1,633) 4,676 Contract royalties 8 1,900 (673) 1,227 Assembled workforce 3 157 (61) 96 Total $ 109,030 $ (57,055) $ 51,975 All of the intangible assets other than goodwill have finite lives and as such are subject to amortization. Amortization of the other intangible assets is recognized in depreciation and amortization expense in the consolidated statements of income. The following table presents amortization expense recognized for the periods indicated: For the Years Ended December 31, 2021 2020 2019 Customer relationships $ 15,399 $ 10,478 $ 8,743 Software 1,114 1,068 486 Trade names 842 495 447 Contract royalties 238 238 238 Assembled workforce 53 61 — Total $ 17,646 $ 12,340 $ 9,914 Based on the carrying value of the Company’s existing intangible assets as of December 31, 2021, the estimated amortization expense for the future years is as follows: Year ending December 31, Amount 2022 $ 23,527 2023 22,219 2024 19,472 2025 15,522 2026 11,027 Thereafter 9,376 Total $ 101,143 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021: As of December 31, 2021 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 1,429 $ — $ 1,429 $ — Rights to acquire noncontrolling interest in consolidated subsidiaries 6,093 — — 6,093 Total assets measured at fair value on a recurring basis $ 7,522 $ — $ 1,429 $ 6,093 Foreign exchange derivative liabilities $ 5,849 $ — $ 5,849 $ — Contingent consideration 23,114 — — 23,114 Total liabilities measured at fair value on a recurring basis $ 28,963 $ — $ 5,849 $ 23,114 The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2020. As of December 31, 2020 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 4,955 $ — $ 4,955 $ — Total assets measured at fair value on a recurring basis $ 4,955 $ — $ 4,955 $ — Foreign exchange derivative liabilities $ 243 $ — $ 243 $ — Contingent consideration 7,470 — — 7,470 Total liabilities measured at fair value on a recurring basis $ 7,713 $ — $ 243 $ 7,470 The foreign exchange derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange data at the measurement date. See Note 5 “Derivative Financial Instruments” for additional information regarding derivative financial instruments. As part of the acquisition of Emakina, the Company acquired rights to purchase certain noncontrolling interests in consolidated subsidiaries of Emakina in exchange for future cash payments determined by the future profitability of certain subsidiaries. The Company determines the fair value of these rights by (i) estimating the fair value of the noncontrolling interests in consolidated subsidiaries by applying an EBITDA multiple adjusted for a lack of control and marketability, less (ii) the fair value of expected future payments to settle the related contractual obligations. The Company expects to purchase the majority of the noncontrolling interest in consolidated subsidiaries in the first quarter of 2022. The Company determines the fair value of the contingent consideration liabilities using Monte Carlo simulations or probability-weighted expected return methods. The fair value of the contingent consideration for the PolSource acquisition attributable to future revenues and earnings was measured utilizing a Monte Carlo simulation, based on future revenue and earnings projections of the business, revenue volatility and asset volatility of comparable companies, and a discount rate. The discount rate used to determine the fair value of this contingent consideration was 0.4% as of the acquisition date. The fair value of the contingent consideration for the PolSource acquisition attributable to future operating metrics was measured using a probability-weighted expected return method, based on the expected future payments using the earnout formula and performance targets specified in the purchase agreement and adjusting those estimates to reflect the probability of their achievement. The weighted-average estimated future payments were then discounted to present value using a rate based on EPAM’s cost of debt. The discount rate used to determine the fair value of this contingent consideration was 0.4% as of the acquisition date. The fair value of the contingent consideration for all other acquisitions was determined using a probability-weighted expected return method and is based on the expected future payments to be made to the sellers of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. Although there is significant judgment involved, the Company believes its estimates and assumptions are reasonable. In determining fair value, the Company considered a variety of factors, including future performance of the acquired businesses using financial projections developed by the Company and market risk assumptions that were derived for revenue growth and earnings before interest and taxes. The Company estimated future payments using the earnout formula and performance targets specified in the purchase agreements and adjusted those estimates to reflect the probability of their achievement. Those weighted-average estimated future payments were then discounted to present value using a rate based on the weighted-average cost of capital of guideline companies. The discount rate used to determine the fair value of contingent consideration for the CORE acquisition was 13.0%. The discount rates used to determine the fair value of contingent consideration for the Other 2021 Acquisitions ranged from a minimum of 15.0% to a maximum of 22.0%. The discount rates used to determine the fair value of contingent consideration for the 2020 Acquisitions ranged from a minimum of 15.5% to a maximum of 17.5%. Changes in financial projections, market risk assumptions, discount rates or probability assumptions related to achieving the various earnout criteria would result in a change in the fair value of the recorded contingent liabilities. Such changes, if any, are recorded within Interest and other income, net in the Company’s consolidated statement of income and comprehensive income. A reconciliation of the beginning and ending balances of Level 3 acquisition-related contingent consideration liabilities using significant unobservable inputs for the years ended December 31, 2019, December 31, 2020 and December 31, 2021 are as follows: Amount Contingent consideration liabilities as of January 1, 2019 $ 7,468 Acquisition date fair value of contingent consideration — Other 2019 Acquisitions (Note 2) 2,100 Changes in fair value of contingent consideration included in Interest and other (loss)/income, net 1,776 Payment of contingent consideration for previously acquired businesses (1,104) Effect of net foreign currency exchange rate changes 255 Contingent consideration liabilities as of December 31, 2019 $ 10,495 Acquisition date fair value of contingent consideration — 2020 Acquisitions (Note 2) 5,292 Changes in fair value of contingent consideration included in Interest and other (loss)/income, net 1,827 Payment of contingent consideration for previously acquired businesses (9,619) Effect of net foreign currency exchange rate changes (525) Contingent consideration liabilities as of December 31, 2020 $ 7,470 Acquisition date fair value of contingent consideration — PolSource acquisition (Note 2) 35,400 Acquisition date fair value of contingent consideration — CORE acquisition (Note 2) 4,007 Acquisition date fair value of contingent consideration — Emakina acquisition (Note 2) 213 Acquisition date fair value of contingent consideration — Other 2021 Acquisitions (Note 2) 17,629 Changes in fair value of contingent consideration included in Interest and other (loss)/income, net 8,782 Payment of contingent consideration for previously acquired businesses (50,000) Effect of net foreign currency exchange rate changes (387) Contingent consideration liabilities as of December 31, 2021 $ 23,114 Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis Estimates of fair value of financial instruments not carried at fair value on a recurring basis on the Company’s consolidated balance sheets are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The Company uses the following methods to estimate the fair values of its financial instruments: • for financial instruments that have quoted market prices, those quoted prices are used to estimate fair value; • for financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument; • for financial instruments for which no quoted market prices are available and that have no defined maturity, have a remaining maturity of 360 days or less, or reprice frequently to a market rate, the Company assumes that the fair value of these instruments approximates their reported value, after taking into consideration any applicable credit risk. The generally short maturities of certain assets and liabilities result in a number of assets and liabilities for which fair value equals or closely approximates the amount recorded on the Company’s consolidated balance sheets. Such financial assets and liabilities that are not carried at fair value on a recurring basis on the Company’s consolidated balance sheets are cash equivalents, restricted cash, short-term investments, employee loans and long-term debt (Note 9 “Debt”). The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2021 Financial Assets: Cash equivalents: Money market funds $ 78,302 $ 78,302 $ 78,302 $ — $ — Total cash equivalents $ 78,302 $ 78,302 $ 78,302 $ — $ — Restricted cash $ 2,722 $ 2,722 $ 2,722 $ — $ — Employee loans $ 818 $ 818 $ — $ — $ 818 Financial Liabilities: Short term debt $ 16,018 $ 16,018 $ — $ 16,018 $ — Borrowings under 2021 Credit Agreement $ 25,000 $ 25,000 $ — $ 25,000 $ — Other long term debt $ 5,234 $ 5,234 $ — $ 5,234 $ — Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2020 Financial Assets: Cash equivalents: Money market funds $ 153,783 $ 153,783 $ 153,783 $ — $ — Total cash equivalents $ 153,783 $ 153,783 $ 153,783 $ — $ — Restricted cash $ 1,390 $ 1,390 $ 1,390 $ — $ — Time deposits included in Short-term investments $ 60,007 $ 60,007 $ — $ 60,007 $ — Employee loans $ 794 $ 794 $ — $ — $ 794 Financial Liabilities: Borrowings under 2017 Credit Facility $ 25,007 $ 25,007 $ — $ 25,007 $ — Non-Marketable Securities Without Readily Determinable Fair Values |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, the Company uses derivative financial instruments to manage the risk of fluctuations in foreign currency exchange rates. The Company has a hedging program whereby it enters into a series of foreign exchange forward contracts with durations of twelve months or less that are designated as cash flow hedges of forecasted Russian ruble, Polish zloty, Hungarian forint and Indian rupee transactions. The Company measures derivative instruments and hedging activities at fair value and recognizes them as either assets or liabilities in its consolidated balance sheets. Accounting for the gains and losses resulting from changes in fair value depends on the use of the derivative and whether it is designated and qualifies for hedge accounting. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. As of December 31, 2021, all of the Company’s foreign exchange forward contracts were designated as hedges. Derivatives may give rise to credit risks from the possible non-performance by counterparties. The Company has limited its credit risk by entering into derivative transactions only with highly-rated financial institutions and by conducting an ongoing evaluation of the creditworthiness of the financial institutions with which the Company does business. There is no financial collateral (including cash collateral) required to be posted by the Company related to the foreign exchange forward contracts. The fair value of foreign currency derivative instruments on the Company’s consolidated balance sheets as of December 31, 2021 and December 31, 2020 were as follows: As of December 31, 2021 As of December 31, 2020 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Designated as hedging instruments Prepaid and other current assets $ 1,429 $ 4,955 Accrued expenses and other current liabilities $ 5,849 $ 243 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: Weighted Average Useful Life As of December 31, 2021 As of December 31, 2020 Computer hardware 3 $ 167,546 $ 117,333 Buildings 44 55,388 52,007 Leasehold improvements 8 37,828 39,675 Purchased computer software 3 33,649 31,993 Furniture, fixture and other equipment 7 31,961 31,859 Office equipment 7 22,881 20,971 Land improvements 18 2,137 2,137 Land n/a 1,339 1,339 Construction in progress n/a 50,133 — 402,862 297,314 Less accumulated depreciation and amortization (166,648) (127,781) Total $ 236,214 $ 169,533 Depreciation and amortization expense related to property and equipment was $65.5 million, $50.5 million and $35.4 million during the years ended December 31, 2021, 2020 and 2019, respectively. On November 1, 2019, the Company acquired an office building in Minsk, Belarus for $18.9 million, excluding refundable VAT. The acquired building is intended to be used in the Company’s normal operations as office space for its employees; however, a portion of the building was leased to third parties under operating lease agreements prior to the Company’s purchase and the Company will continue leasing under those agreements (see Note 8 “Leases”). In addition to this building, the Company has other assets which generate lease income. The gross amount of such assets including the leased portion of the Minsk building was $3.3 million and $6.7 million, and the associated accumulated depreciation was $0.2 million and $0.2 million as of December 31, 2021 and 2020, respectively. Depreciation expense associated with these assets held under operating leases was $0.1 million and $0.2 million for the year ended December 31, 2021 and 2020, respectively. On November 17, 2021, the Company acquired an office building in the process of being constructed in Kyiv, Ukraine for $50.1 million. Once completed, the acquired building is intended to be used in the Company’s normal operations as office space for its employees. The office building is classified as construction-in-progress as of December 31, 2021 and the Company expects the office building to be available for its intended use in the second half of 2022. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: As of December 31, 2021 As of December 31, 2020 Value added taxes payable $ 49,924 $ 34,522 Deferred revenue 39,810 17,383 Contingent consideration, current (Note 4) 9,405 1,125 Other current liabilities and accrued expenses 42,875 26,660 Total $ 142,014 $ 79,690 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the RoU Assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 to 9.4 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company leases and subleases a portion of its office space to third parties. Lease income and sublease income were immaterial for the years ended December 31, 2021, 2020 and 2019. During the years ended December 31, 2021, 2020 and 2019, the components of lease expense were as follows: Income Statement Classification Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Operating lease cost Selling, general and administrative expenses $ 67,144 $ 73,740 $ 62,740 Variable lease cost Selling, general and administrative expenses 8,555 6,461 8,730 Short-term lease cost Selling, general and administrative expenses 2,248 1,169 3,870 Total lease cost $ 77,947 $ 81,370 $ 75,340 Supplemental cash flow information related to leases for the years ended December 31, 2021 and 2020 were as follows: Year Ended December 31, 2021 Year Ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 68,986 $ 70,012 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 18,590 $ 50,949 Non-cash net increase due to lease modifications: Operating lease right-of-use assets $ 7,000 $ 7,876 Operating lease liabilities $ 7,062 $ 7,861 Weighted average remaining lease terms and discount rates as of December 31, 2021 and 2020, were as follows: As of December 31, 2021 As of December 31, 2020 Weighted average remaining lease term, in years: Operating leases 5.5 5.9 Weighted average discount rate: Operating leases 2.5 % 2.9 % As of December 31, 2021, operating lease liabilities will mature as follows: Year ending December 31, Lease Payments 2022 $ 53,985 2023 40,385 2024 33,589 2025 24,144 2026 18,576 Thereafter 34,701 Total lease payments 205,380 Less: imputed interest (12,474) Total $ 192,906 There were no lease agreements that contained material restrictive covenants or material residual value guarantees as of December 31, 2021. There were no material lease agreements signed with related parties as of December 31, 2021. As of December 31, 2021, the Company had committed to payments of $28.3 million related to operating lease agreements that had not yet commenced as of December 31, 2021. These operating leases will commence on various dates during 2022 and 2023 with lease terms ranging from 0.5 years to 10 years. The Company does not have any material finance lease agreements that had not yet commenced. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Revolving Line of Credit —On May 24, 2017, the Company entered into an unsecured credit facility (the “2017 Credit Facility”), as was amended from time to time, with PNC Bank, National Association; PNC Capital Markets LLC; Citibank N.A.; Wells Fargo Bank, National Association; Fifth Third Bank and Santander Bank, N.A. (collectively the “Lenders”). The 2017 Credit Facility provided for a borrowing capacity of $300.0 million, with potential to increase the credit facility up to $400.0 million under certain conditions. Borrowings under the 2017 Credit Facility were able to be denominated in U.S. dollars or up to a maximum of $100.0 million in British pounds, Canadian dollars, euros and Swiss francs and other currencies as may be approved by the administrative agent and the Lenders. Borrowings under the 2017 Credit Facility bore interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. The base rate was equal to the highest of (a) the Overnight Bank Funding Rate, plus 0.5%, (b) the Prime Rate, or (c) the Daily LIBOR Rate, plus 1.0%. The 2017 Credit Facility included customary business and financial covenants that could have restricted the Company’s ability to make or pay dividends (other than certain intercompany dividends) in a case of a potential or an actual event or trigger of default. The 2017 Credit Facility had an original maturity date of May 24, 2022 and on October 21, 2021, the Company replaced the 2017 Credit Facility with a new unsecured credit agreement (the “2021 Credit Agreement”) with PNC Bank, National Association; PNC Capital Markets LLC; Citibank N.A.; Wells Fargo Bank, National Association; Santander Bank, N.A.; and Raiffeisen Bank International AG (collectively the “Lenders”). The 2021 Credit Agreement provides for a revolving credit facility (the “2021 Revolving Facility”) with a borrowing capacity of $700.0 million, with potential to increase the borrowing capacity up to $1,000.0 million if certain conditions are met. The 2021 Credit Agreement matures on October 21, 2026. Borrowings under the 2021 Revolving Facility may be denominated in U.S. dollars or up to a maximum of $150.0 million equivalent in British pounds sterling, Canadian dollars, euros or Swiss francs and other currencies as may be approved by the administrative agent and the Lenders. Borrowings under the 2021 Revolving Facility bear interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. The base rate is equal to the highest of (a) the Overnight Bank Funding Rate, plus 0.5%, (b) the Prime Rate, or (c) the Daily LIBOR Rate, plus 1.0%, so long as the Daily LIBOR Rate is offered, ascertainable and not unlawful. As of December 31, 2021, the Company’s outstanding borrowings are subject to a LIBOR-based interest rate, which resets regularly at issuance, based on lending terms. The 2021 Credit Agreement includes customary business and financial covenants that may restrict the Company’s ability to make or pay dividends (other than certain intercompany dividends) if a potential or an actual event of default has occurred or would be triggered. As of December 31, 2021, the Company was in compliance with all covenants contained in the 2021 Credit Agreement. The following table presents the outstanding debt and borrowing capacity of the Company under the 2021 Credit Agreement as of December 31, 2021 and the 2017 Credit Facility as of December 31, 2020: As of December 31, 2021 As of December 31, 2020 Outstanding debt $ 25,000 $ 25,000 Interest rate 1.0 % 1.2 % Available borrowing capacity $ 675,000 $ 275,000 Current maximum borrowing capacity $ 700,000 $ 300,000 |
PENSION AND POSTRETIREMENT BENE
PENSION AND POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
PENSION AND POSTRETIREMENT BENEFITS | PENSION AND POSTRETIREMENT BENEFITS Defined Contribution Pension Plans The Company offers defined contribution plans for its employees in certain countries including a 401(k) retirement plan covering substantially all of the Company’s U.S. employees. Employer contributions charged to expense for defined contribution benefit plans for the years ended December 31, 2021, 2020 and 2019, were $21.3 million, $16.0 million, and $14.8 million, respectively. Defined Benefit Pension Plans |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Revenues are sourced from four geographic markets: Americas, EMEA, CEE and APAC. The Company presents and discusses revenues by customer location based on the location of the specific customer site that we serve, irrespective of the location of the headquarters of the customer or the location of the delivery center where the work is performed. Revenues by customer location is different from revenues by reportable segment as segments are not based on the geographic location of the customers, but instead they are based on the location of the Company’s management responsible for a particular customer or market (see Note 16 “Segment Information”). The Company assigns customers into one of five vertical industries or a group of various industries where the Company is increasing its presence, which are labeled as “Emerging Verticals”. Emerging Verticals include customers in multiple industries such as energy, utilities, manufacturing, automotive, telecommunications and several others. Disaggregation of Revenues The following tables show the disaggregation of the Company’s revenues by major customer location, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 16 “Segment Information”) for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 2,145,163 $ 77,351 $ 4,316 $ 2,226,830 EMEA 87,121 1,172,267 329 1,259,717 CEE 6,740 531 160,767 168,038 APAC 3,224 100,335 — 103,559 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 1,546,093 $ 45,553 $ 3,490 $ 1,595,136 EMEA 45,733 834,033 76 879,842 CEE 7,817 98 106,787 114,702 APAC 2,177 67,621 — 69,798 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 1,344,040 $ 45,859 $ 116 $ 1,390,015 EMEA 27,042 719,548 276 746,866 CEE 8,583 143 91,745 100,471 APAC 1,279 55,167 — 56,446 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 The following tables show the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 16 “Segment Information”) for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Financial Services $ 361,611 $ 372,394 $ 114,365 $ 848,370 Travel & Consumer 359,306 354,041 27,781 741,128 Business Information & Media 389,613 275,502 1,826 666,941 Software & Hi-Tech 559,707 102,270 2,620 664,597 Life Sciences & Healthcare 340,706 49,900 703 391,309 Emerging Verticals 231,305 196,377 18,117 445,799 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Financial Services $ 199,594 $ 278,355 $ 77,286 $ 555,235 Travel & Consumer 221,977 220,448 16,364 458,789 Business Information & Media 334,063 224,922 1,695 560,680 Software & Hi-Tech 419,895 73,288 3,630 496,813 Life Sciences & Healthcare 260,518 35,347 448 296,313 Emerging Verticals 165,773 114,945 10,930 291,648 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Financial Services $ 184,469 $ 244,284 $ 72,119 $ 500,872 Travel & Consumer 198,264 229,523 11,571 439,358 Business Information & Media 262,448 157,844 631 420,923 Software & Hi-Tech 354,023 77,377 1,998 433,398 Life Sciences & Healthcare 224,925 23,444 83 248,452 Emerging Verticals 156,815 88,245 5,735 250,795 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 The Company derives revenues from a variety of customized and integrated service arrangements. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. The following tables show the disaggregation of the Company’s revenues by contract type, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 16 “Segment Information”) for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,981,696 $ 1,145,606 $ 82,445 $ 3,209,747 Fixed-price 244,249 202,436 82,711 529,396 Licensing 14,540 793 219 15,552 Other revenues 1,763 1,649 37 3,449 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,440,635 $ 790,203 $ 60,166 $ 2,291,004 Fixed-price 151,769 151,718 48,525 352,012 Licensing 8,027 1,526 1,586 11,139 Other revenues 1,389 3,858 76 5,323 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,247,979 $ 688,605 $ 54,069 $ 1,990,653 Fixed-price 127,926 128,977 37,747 294,650 Licensing 3,626 1,230 225 5,081 Other revenues 1,413 1,905 96 3,414 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 Timing of Revenue Recognition The following tables show the timing of revenue recognition reconciled with the Company’s reportable segments (Note 16 “Segment Information”) for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 2,232,308 $ 1,349,956 $ 165,301 $ 3,747,565 Transferred at a point of time 9,940 528 111 10,579 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,595,786 $ 946,379 $ 108,826 $ 2,650,991 Transferred at a point of time 6,034 926 1,527 8,487 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,379,256 $ 819,913 $ 92,076 $ 2,291,245 Transferred at a point of time 1,688 804 61 2,553 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 During the years ended December 31, 2021, 2020 and 2019 the Company recognized $18.7 million, $5.0 million and $7.8 million, respectively, of revenues from performance obligations satisfied in previous periods. The following table includes the estimated revenues expected to be recognized in the future related to performance obligations that are partially or fully unsatisfied as of December 31, 2021. The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts that (i) have an original expected duration of one year or less and (ii) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services provided: Less than 1 year 1 Year 2 Years 3 Years Total Contract Type Fixed-price $ 8,214 $ 380 $ — $ — $ 8,594 The Company applies a practical expedient and does not disclose the amount of the transaction price allocated to the remaining performance obligations nor provide an explanation of when the Company expects to recognize that amount as revenue for certain variable consideration. Contract Balances The following table provides information on the classification of contract assets and liabilities in the consolidated balance sheets: As of December 31, 2021 As of December 31, 2020 Contract assets included in Trade receivables and contract assets $ 13,798 $ 7,700 Contract liabilities included in Accrued expenses and other current liabilities $ 39,810 $ 17,383 Contract liabilities included in Other noncurrent liabilities $ 84 $ 94 Contract assets comprise amounts where the Company’s right to bill is contingent on something other than the passage of time. Contract assets have increased from December 31, 2020 primarily due to an increase in fixed-fee contracts resulting from revenue growth during the year and from the acquisitions completed in 2021. Contract liabilities comprise amounts collected from the Company’s customers for revenues not yet earned and such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. Contract liabilities have increased from December 31, 2020 primarily due to an increase in customer advances at the end of the year and advance payments in excess of revenue recognized under percentage-of-completion contracts attributable to businesses acquired in 2021. During the year ended December 31, 2021, the Company recognized $16.2 million of revenues that were included in Accrued expenses and other current liabilities at December 31, 2020. During the year ended December 31, 2020, the Company recognized $8.6 million of revenues that were included in Accrued expenses and other current liabilities at December 31, 2019. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income: For the Years Ended December 31, 2021 2020 2019 Cost of revenues (exclusive of depreciation and amortization) $ 51,580 $ 32,785 $ 37,580 Selling, general and administrative expenses 60,075 42,453 34,456 Total $ 111,655 $ 75,238 $ 72,036 Equity Plans 2015 Long-Term Incentive Plan — On June 11, 2015, the Company’s stockholders approved the 2015 Long-Term Incentive Plan (“2015 Plan”) to be used to issue equity awards to Company personnel. As of December 31, 2021, 4,266 thousand shares of common stock remained available for issuance under the 2015 Plan. All of the awards issued pursuant to the 2015 Plan expire 10 years from the date of grant. 2012 Non-Employee Directors Compensation Plan — On January 11, 2012, the Company approved the 2012 Non-Employee Directors Compensation Plan (“2012 Directors Plan”) to be used to issue equity grants to its non-employee directors. The Company authorized 600 thousand shares of common stock to be reserved for issuance under the 2012 Directors Plan. As of December 31, 2021, 522 thousand shares of common stock remained available for issuance under the 2012 Directors Plan. The 2012 Directors Plan will expire after 10 years and is administered by the Company’s Board of Directors. 2012 Long-Term Incentive Plan — On January 11, 2012, the Company approved the 2012 Long-Term Incentive Plan (“2012 Plan”) to be used to issue equity grants to Company personnel. In June 2015, the 2012 Plan was discontinued; however, outstanding awards remain subject to the terms of the 2012 Plan and any shares that are subject to an award that was previously granted under the 2012 Plan and that expire or terminate for any reason prior to exercise will become available for issuance under the 2015 Plan. All of the awards issued pursuant to the 2012 Plan expire 10 years from the date of grant. 2021 Employee Stock Purchase Plan - Effective April 7, 2021, the Board of Directors of the Company adopted the 2021 Employee Stock Purchase Plan ("ESPP"), and effective June 8, 2021, the Company’s stockholders approved the ESPP . The purpose of the ESPP is to enable eligible employees to purchase shares of EPAM’s common stock at a discount through payroll deductions of up to 10% of their eligible compensation at the end of each designated offering period, which occurs every six months in April and November. The purchase price is equal to 85% of the fair market value of a share of EPAM’s common stock on the first date of an offering or the date of purchase, whichever is lower. There are 900 thousand shares authorized for issuance in connection with the ESPP. Stock Options Stock option activity under the Company’s plans is set forth below: Number of Weighted Average Aggregate Weighted Average Options outstanding as of January 1, 2019 4,083 $ 44.54 $ 291,846 Options granted 132 $ 169.13 Options modified 18 $ 163.55 Options exercised (899) $ 41.21 Options forfeited/cancelled (11) $ 97.83 Options outstanding as of December 31, 2019 3,323 $ 50.85 $ 536,015 Options granted 158 $ 187.76 Options modified — $ — Options exercised (700) $ 37.79 Options forfeited/cancelled (9) $ 119.30 Options outstanding as of December 31, 2020 2,772 $ 61.71 $ 822,152 Options granted 94 $ 410.03 Options exercised (536) $ 49.13 Options forfeited/cancelled (12) $ 248.74 Options outstanding as of December 31, 2021 2,318 $ 77.79 $ 1,369,132 3.7 Options vested and exercisable as of December 31, 2021 2,018 $ 53.27 $ 1,241,261 3.0 Options expected to vest as of December 31, 2021 284 $ 240.03 $ 121,544 8.1 The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The model incorporated the following weighted-average assumptions: For the Years Ended December 31, 2021 2020 2019 Expected volatility 35.3 % 36.9 % 33.5 % Expected term (in years) 6.24 6.25 6.25 Risk-free interest rate 1.2 % 0.5 % 2.3 % Expected dividends — % — % — % Expected volatility is based on the historical volatility of the Company’s stock price. The expected term represents the period of time that options granted are expected to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve for the periods equal to the expected term of the options in effect at the time of grant. The Company has not declared or paid any dividends on its common stock. The Company intends to retain any earnings to fund operations and future growth of its business and, therefore, does not anticipate paying any cash dividends in the foreseeable future. The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2021, 2020 and 2019 was $149.26, $68.53 and $63.12, respectively. The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $251.9 million, $151.3 million and $121.1 million, respectively. The Company recognizes the fair value of each option as compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period. The options are typically scheduled to vest over four years from the time of grant, subject to the terms of the applicable plan and stock option agreement. The Company records share-based compensation expense only for those awards that are expected to vest and as such, the Company applies an estimated forfeiture rate at the time of grant and adjusts the forfeiture rate estimate quarterly to reflect actual forfeiture activity. In general, in the event of a participant’s voluntary termination of service, unvested options are forfeited as of the date of such termination without any payment to the participant and the cumulative amount of previously recognized expense related to the forfeited options is reversed. As of December 31, 2021, $18.7 million of total remaining unrecognized compensation cost related to unvested stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.7 years. Restricted Stock and Restricted Stock Units The Company grants restricted stock units (“RSUs”) to Company personnel and non-employee directors under the Company’s 2015 Plan (and prior to its approval, under the 2012 Plan) and 2012 Directors Plan, respectively. In addition, the Company has issued in the past, and may issue in the future, its equity securities to compensate employees of acquired businesses for future services. Equity-based awards granted in connection with acquisitions of businesses may be issued in the form of service-based awards requiring continuing employment with the Company, restricted stock subject to trading restrictions, and performance-based awards, which would vest only if certain specified performance and service conditions are met. The awards issued in connection with acquisitions of businesses are subject to the terms and conditions contained in the applicable award agreements and acquisition documents. Service-Based Awards The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the years ended December 31, 2021, 2020 and 2019: Equity-Classified Equity-Classified Equity-Settled Restricted Stock Units Liability-Classified Cash-Settled Restricted Stock Units Number of Weighted Average Grant Date Number of Weighted Average Grant Date Number of Weighted Average Grant Date Unvested service-based awards outstanding as of January 1, 2019 1 $ 63.10 798 $ 92.13 303 $ 83.99 Awards granted 9 $ 167.18 284 $ 170.29 56 $ 170.13 Awards modified — $ — 7 $ 170.74 1 $ 168.36 Awards vested — $ — (287) $ 87.79 (111) $ 80.51 Awards forfeited/cancelled — $ — (43) $ 114.45 (7) $ 94.77 Unvested service-based awards outstanding as of December 31, 2019 10 $ 162.96 759 $ 122.48 242 $ 105.40 Awards granted — $ — 294 $ 204.57 60 $ 181.77 Awards modified — $ — (1) $ 122.55 — $ — Awards vested (1) $ 63.10 (317) $ 108.87 (122) $ 91.39 Awards forfeited/cancelled — $ — (49) $ 148.11 (5) $ 113.94 Unvested service-based awards outstanding as of December 31, 2020 9 $ 167.18 686 $ 162.15 175 $ 141.16 Awards granted — $ — 238 $ 429.41 27 $ 394.24 Awards vested — $ — (308) $ 139.83 (86) $ 118.05 Awards forfeited/cancelled — $ — (40) $ 264.48 (4) $ 210.26 Unvested service-based awards outstanding as of December 31, 2021 9 $ 167.18 576 $ 277.38 112 $ 217.28 The fair value of vested service-based awards (measured at the vesting date) for the years ended December 31, 2021, 2020 and 2019 was as follows: For the Years Ended December 31, 2021 2020 2019 Equity-classified equity-settled Restricted stock $ — $ 101 $ 73 Restricted stock units 129,527 60,042 48,111 Liability-classified cash-settled Restricted stock units 33,947 22,014 18,449 Total fair value of vested service-based awards $ 163,474 $ 82,157 $ 66,633 As of December 31, 2021, $0.3 million of total remaining unrecognized stock-based compensation costs related to service-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 0.7 years. As of December 31, 2021, $112.0 million of total remaining unrecognized stock-based compensation costs related to service-based equity-classified RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.7 years. As of December 31, 2021, $38.6 million of total remaining unrecognized stock-based compensation costs related to service-based liability-classified RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.3 years. The liability associated with the Company’s service-based liability-classified RSUs as of December 31, 2021 and 2020 was $31.5 million and $26.8 million, respectively, and is classified as Accrued compensation and benefits expenses in the consolidated balance sheets. Performance-Based Awards The table below summarizes activity related to the Company’s performance-based awards for the years ended December 31, 2021, 2020 and 2019: Equity-Classified Equity-Classified Number of Weighted Average Grant Date Number of Weighted Average Grant Date Unvested performance-based awards outstanding as of January 1, 2019 — $ — 30 $ 121.75 Awards granted 9 $ 165.87 — $ — Awards modified — $ — (30) $ 121.75 Unvested performance-based awards outstanding as of December 31, 2019 9 $ 165.87 — $ — Awards granted — $ — 31 $ 210.44 Awards vested — $ — (10) $ 177.81 Unvested performance-based awards outstanding as of December 31, 2020 9 $ 165.87 21 $ 227.16 Awards granted — $ — 8 $ 574.98 Awards vested — $ — (4) $ 177.81 Awards forfeited — $ — (2) $ 334.78 Unvested performance-based awards outstanding as of December 31, 2021 9 $ 165.87 23 $ 339.69 As of December 31, 2021, $0.6 million of total remaining unrecognized stock-based compensation costs related to performance-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 1.7 years. As of December 31, 2021, $5.0 million of total remaining unrecognized stock-based compensation cost related to performance-based equity-classified RSUs is expected to be recognized over the weighted-average remaining requisite service period of 3.1 years. The fair value of vested performance-based awards (measured at the vesting date) for the years ended December 31, 2021, 2020 and 2019 was as follows: For the Years Ended December 31, 2021 2020 2019 Equity-classified equity-settled Restricted stock units $ 2,215 3,282 $ — Total fair value of vested performance-based awards $ 2,215 $ 3,282 $ — 2021 Employee Stock Purchase Plan On November 1, 2021, the first offering period of the ESPP commenced. The Company recognizes compensation expense related to shares issued pursuant to the ESPP on a straight-line basis over the six-month offering period. The Company uses the Black-Scholes option pricing model to calculate the fair value of shares issued under the ESPP. The Black-Scholes model relies on a number of key assumptions to calculate estimated fair values. The model incorporated the following weighted-average assumptions for the year ended December 31, 2021: Expected volatility 23.1 % Expected term (in years) 0.50 Risk-free interest rate 0.1 % Expected dividends — % Expected volatility is based on the historical volatility of the Company’s stock price. The expected term represents the purchase period for the ESPP. The risk-free rate is based on the U.S. Treasury yield curve for the period equal to the expected term in effect at the time of grant. The Company has not declared or paid any dividends on its common stock. The Company intends to retain any earnings to fund its operations and the future growth of its business and, therefore, does not anticipate paying any cash dividends in the foreseeable future. As of December 31, 2021, the weighted average price per share was $659.65 and the weighted average grant-date fair value per share was $141.86. As of December 31, 2021, no purchases have been made under the ESPP as the first anticipated purchase date will be on April 29, 2022. As of December 31, 2021, total unrecognized stock-based compensation cost related to the ESPP was $2.3 million, which is expected to be recognized over a period of 0.33 years. Commitments for Future Equity Awards In connection with the Company’s acquisitions of businesses as discussed in Note 2 “Acquisitions”, EPAM enters into agreements that contractually commit it to granting equity awards at future dates. The agreements are unique to each acquisition and terms vary to specify the number of future awards to be issued or a monetary value that will be settled with equity awards valued at future stock prices. As of December 31, 2021, the Company has commitments to grant up to $43.6 million of equity awards based on future stock prices. There is a service-based vesting requirement after the grant date associated with these awards and certain of these awards contain performance criteria that will determine the amount of future awards to be issued. These awards are considered granted for accounting purposes. In determining the expense, the Company adjusts the expected settlement based on the probability of achievement of such performance criteria. Related to these awards, the Company recorded $5.5 million, $0.2 million and $0.0 million of stock-based compensation expense in the consolidated statements of income for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, the Company has commitments to grant 8 thousand RSUs and $2.7 million of equity awards based on future stock prices, which are not considered granted for accounting purposes as the grantee has not yet been |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Before Provision for Income Taxes Income before provision for income taxes based on geographic location is disclosed in the table below: For the Years Ended December 31, 2021 2020 2019 Income before provision for income taxes: United States $ 128,498 $ 100,411 $ 65,370 Foreign 404,894 278,068 234,156 Total $ 533,392 $ 378,479 $ 299,526 Provision for Income Taxes The provision for income taxes consists of the following: For the Years Ended December 31, 2021 2020 2019 Current Federal $ 22,742 $ 19,249 $ 16,943 State 6,735 7,022 3,610 Foreign 69,162 45,042 25,680 Deferred Federal (40,421) (16,235) (9,425) State (2,576) (1,682) (358) Foreign (3,902) (2,077) 2,019 Total $ 51,740 $ 51,319 $ 38,469 As part of the U.S. Tax Act, as determined as of December 31, 2017, the Company was required to make annual installment payments for the one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8.0% on the remaining earnings. As of December 31, 2021, the remaining unpaid balance of this one-time transition tax was $37.2 million to be paid in annual installments with the final payment due in 2025. As of December 31, 2021, the Company had approximately $1,239.1 million of accumulated undistributed foreign earnings that are expected to be indefinitely reinvested. Due to the enactment of the U.S. Tax Act and the one-time transition tax on accumulated foreign subsidiary earnings, these accumulated foreign earnings are no longer expected to be subject to U.S. federal income tax if repatriated but could be subject to state and foreign income and withholding taxes. Effective Tax Rate Reconciliation The reconciliation of the provision for income taxes at the federal statutory income tax rate to the Company’s effective income tax rate is as follows: For the Years Ended December 31, 2021 2020 2019 Provision for income taxes at federal statutory rate $ 112,016 $ 79,481 $ 62,898 Increase/(decrease) in taxes resulting from: GILTI and BEAT U.S. taxes 229 191 (926) Excess tax benefits relating to stock-based compensation (71,628) (36,646) (28,385) Foreign tax expense and tax rate differential (206) (387) (1,402) Effect of permanent differences 4,756 3,507 3,264 State taxes, net of federal benefit 9,192 5,323 2,971 Stock-based compensation expense 1,102 44 571 Tax credits (4,100) — — Other 379 (194) (522) Provision for income taxes $ 51,740 $ 51,319 $ 38,469 The Company’s worldwide effective tax rate for the years ended December 31, 2021, 2020 and 2019 was 9.7%, 13.6% and 12.8%, respectively. The provision for income taxes in the year ended December 31, 2021 was favorably impacted by the recognition of $4.1 million of certain tax credits, of which $2.7 million were a one-time benefit resulting from credit claims for previous tax periods. In addition, the Company recorded excess tax benefits upon vesting or exercise of stock-based awards of $71.6 million, $36.6 million and $28.4 million during the years ended December 31, 2021, 2020 and 2019, respectively. In Belarus, member technology companies of High-Technologies Park, including the Company’s local subsidiary, have a full exemption from Belarus income tax on qualifying income through January 2049. However, beginning February 1, 2018, the earnings of the Company’s Belarus local subsidiary became subject to U. S. income taxation due to the Company’s decision to change the tax status of the subsidiary. There was no aggregate dollar benefit derived or impact on diluted net income per share from this tax holiday for the years ended December 31, 2021, 2020 and 2019. Deferred Income Taxes Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2021 As of December 31, 2020 Deferred tax assets: Property and equipment $ 10,561 $ 8,164 Intangible assets 2,220 827 Accrued expenses 90,754 50,639 Net operating loss carryforward 4,988 6,089 Deferred revenue 4,551 9,796 Stock-based compensation 31,959 30,112 Operating lease liabilities 52,806 51,519 Foreign tax credit 7,589 2,168 Foreign currency exchange 11,750 4,890 Other assets 2,235 1,252 Deferred tax assets $ 219,413 $ 165,456 Less: valuation allowance (4,538) (5,485) Total deferred tax assets $ 214,875 $ 159,971 Deferred tax liabilities: Property and equipment $ 1,095 $ 3,818 Intangible assets 26,124 12,018 Operating lease right-of-use assets 51,871 50,149 Accrued revenue and expenses 2,953 991 U.S. taxation of foreign subsidiaries 3,770 1,608 Foreign currency exchange 239 1,153 Other liabilities 3,210 1,095 Total deferred tax liabilities $ 89,262 $ 70,832 Net deferred tax assets $ 125,613 $ 89,139 As of December 31, 2021 and 2020, the Company classified $18.3 million and $3.3 million, respectively, of deferred tax liabilities as Other noncurrent liabilities in the consolidated balance sheets. Included in the stock-based compensation expense deferred tax asset at December 31, 2021 and 2020 is $5.4 million and $6.1 million, respectively, that is related to acquisitions and is amortized for tax purposes over a 10 to 15-year period. As of December 31, 2021, the Company’s domestic and foreign net operating loss (“NOL”) carryforwards for income tax purposes were approximately $2.8 million and $18.9 million, respectively. If not utilized, the domestic NOL carryforwards will begin to expire in 2022. The foreign NOL carryforwards include $9.7 million from jurisdictions with no expiration date, with the remainder expiring as follows: $1.2 million in 2022, $1.3 million in 2023, $2.0 million in 2024, $3.0 million in 2025, and $1.7 million in 2026. The Company maintains a valuation allowance primarily related to the net operating loss carryforwards in certain foreign jurisdictions that the Company believes are not likely to be realized, which totaled $17.5 million as of December 31, 2021. Unrecognized Tax Benefits As of December 31, 2021 and 2020, unrecognized tax benefits of $8.2 million and $3.3 million, respectively, are included in Income taxes payable, noncurrent within the consolidated balance sheets. During the year ended December 31, 2021, uncertain tax positions resulted in an unrecognized tax benefit of $5.3 million related to 2021 and $0.9 million for prior years including interest and penalties, and reversals related to prior year tax positions yielded a tax benefit of $1.3 million including reversal of interest and penalties. During the year ended December 31, 2020, a new uncertain tax position resulted in an unrecognized tax benefit of $0.8 million, and reversals related to prior year tax positions yielded a tax benefit of $0.5 million. There were no significant new tax positions that resulted in unrecognized tax benefits or reversals related to prior year tax positions during the year ended December 31, 2019. There were no tax positions for which it was reasonably possible that unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date. The Company is subject to taxation in the United States and various states and foreign jurisdictions including Russia, Germany, Ukraine, the United Kingdom, Hungary, Switzerland, Netherlands, Poland and India. With few exceptions, as of December 31, 2021, the Company is no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2017. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing basic earnings per share, any nonvested shares of restricted stock that have been issued by the Company and are contingently returnable to the Company are excluded from the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock, unvested equity-settled RSUs and the stock to be issued under the Company’s ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share of common stock as follows: For the Years Ended December 31, 2021 2020 2019 Numerator for basic and diluted earnings per share: Net income $ 481,652 $ 327,160 $ 261,057 Numerator for basic and diluted earnings per share $ 481,652 $ 327,160 $ 261,057 Denominator: Weighted average common shares for basic earnings per share 56,511 55,727 54,719 Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP 2,553 2,719 2,949 Weighted average common shares for diluted earnings per share 59,064 58,446 57,668 Net Income per share: Basic $ 8.52 $ 5.87 $ 4.77 Diluted $ 8.15 $ 5.60 $ 4.53 The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 32 thousand, 40 thousand and 120 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. Net income attributable to noncontrolling interests recognized in connection with the acquisition of Emakina on November 3, 2021 was immaterial for the year ended December 31, 2021. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Indemnification Obligations — In the normal course of business, the Company is a party to a variety of agreements under which it may be obligated to indemnify the other party for certain matters. These obligations typically arise in contracts where the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations or covenants for certain matters, infringement of third party intellectual property rights, data privacy violations, and certain tortious conduct in the course of providing services. The duration of these indemnifications varies, and in certain cases, is indefinite. The Company is unable to reasonably estimate the maximum potential amount of future payments under these or similar agreements due to the unique facts and circumstances of each agreement and the fact that certain indemnifications provide for no limitation to the maximum potential future payments under the indemnification. Management is not aware of any such matters that would have a material effect on the consolidated financial statements of the Company. Litigation — From time to time, the Company is involved in litigation, claims or other contingencies arising in the ordinary course of business. The Company accrues 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, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. In the opinion of management, the outcome of any existing claims and legal or regulatory proceedings, if decided adversely, is not expected to have a material effect on the Company’s business, financial condition, results of operations or cash flows. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company determines its business segments and reports segment information in accordance with how the Company’s chief operating decision maker (“CODM”) organizes the segments to evaluate performance, allocate resources and make business decisions. Segment results are based on the segment’s revenues and operating profit, where 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 an allocation of certain shared services expenses. Certain corporate expenses are not allocated to specific segments as these expenses are not controllable at the segment level. Such expenses include certain types of professional fees, certain taxes included in operating expenses, compensation to non-employee directors and certain other general and administrative expenses, including compensation of specific groups of non-production employees. In addition, the Company does not allocate amortization of intangible assets acquired through business combinations, goodwill and other asset impairment charges, stock-based compensation expenses, acquisition-related costs and certain other one-time charges. These unallocated amounts are combined with total segment operating profit to arrive at consolidated income from operations as reported below in the reconciliation of segment operating profit to consolidated income before provision for income taxes. Additionally, management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably among the segments. The Company manages its business primarily based on the managerial responsibility for its client base and market. As managerial responsibility for a particular customer relationship generally correlates with the customer’s geographic location, there is a high degree of similarity between customer locations and the geographic boundaries of the Company’s reportable segments. In some cases, managerial responsibility for a particular customer is assigned to a management team in another region and is usually based on the strength of the relationship between customer executives and particular members of EPAM’s senior management team. In such cases, the customer’s activity would be reported through the respective management team member’s reportable segment. Revenues from external customers and operating profit, before unallocated expenses, by reportable segments were as follows: For the years ended December 31, 2021 2020 2019 Segment revenues: North America $ 2,242,248 $ 1,601,820 $ 1,380,944 Europe 1,350,484 947,305 820,717 Russia 165,412 110,353 92,137 Total revenues $ 3,758,144 $ 2,659,478 $ 2,293,798 Segment operating profit: North America $ 462,798 $ 345,196 $ 293,757 Europe 233,727 152,902 114,863 Russia 32,547 5,811 17,347 Total segment operating profit $ 729,072 $ 503,909 $ 425,967 Intersegment transactions were excluded from the above on the basis that they are neither included in the measure of a segment’s profit and loss results, nor considered by the CODM during the review of segment results. There were no customers individually exceeding 10% of our total segment revenues for the years ended December 31, 2021, 2020 and 2019. Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below: For the Years Ended December 31, 2021 2020 2019 Total segment operating profit: $ 729,072 $ 503,909 $ 425,967 Unallocated costs: Stock-based compensation expense (111,655) (75,238) (72,036) Amortization of purchased intangibles (17,646) (12,340) (9,914) Other acquisition-related expenses (6,397) (1,868) (3,774) Other unallocated costs (51,058) (35,139) (37,393) Income from operations 542,316 379,324 302,850 Interest and other (loss)/income, net (1,727) 3,822 8,725 Foreign exchange loss (7,197) (4,667) (12,049) Income before provision for income taxes $ 533,392 $ 378,479 $ 299,526 Geographic Area Information Long-lived assets include property and equipment, net of accumulated depreciation and amortization, and management has determined that it is not practical to allocate these assets by segment since such assets are used interchangeably among the segments. Physical locations and values of the Company’s long-lived assets are presented below: As of December 31, 2021 As of December 31, 2020 As of December 31, 2019 Ukraine $ 78,289 $ 30,980 $ 24,652 Belarus 75,422 73,988 75,984 Russia 16,611 15,036 17,980 United States 14,843 15,718 15,637 India 9,459 7,079 7,443 Poland 8,240 5,434 5,029 Hungary 5,339 5,365 5,201 Other 28,011 15,933 13,333 Total $ 236,214 $ 169,533 $ 165,259 The table below presents the Company’s revenues by customer location for the years ended December 31, 2021, 2020 and 2019: For the Years Ended December 31, 2021 2020 2019 United States $ 2,125,301 $ 1,523,731 $ 1,321,662 United Kingdom 474,941 331,217 290,039 Switzerland 271,208 203,391 152,710 Russia 155,186 104,846 89,941 Netherlands 154,816 114,678 88,488 Germany 113,727 84,902 82,441 Canada 96,646 68,416 68,304 Other locations 366,319 228,297 200,213 Revenues $ 3,758,144 $ 2,659,478 $ 2,293,798 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss: For the Years Ended December 31, 2021 2020 2019 Foreign currency translation Beginning balance $ (28,168) $ (32,666) $ (38,961) Foreign currency translation (29,323) 5,802 7,912 Income tax benefit/(expense) 4,744 (1,304) (1,617) Foreign currency translation, net of tax (24,579) 4,498 6,295 Ending balance $ (52,747) $ (28,168) $ (32,666) Cash flow hedging instruments Beginning balance $ 3,642 $ 1,292 $ (2,553) Unrealized (loss)/gain in fair value (13,781) 8,076 2,933 Net gain/(loss) reclassified into Cost of revenues (exclusive of depreciation and amortization) 4,649 (5,031) 2,028 Income tax benefit/(expense) 2,073 (695) (1,116) Cash flow hedging instruments, net of tax (7,059) 2,350 3,845 Ending balance (1) $ (3,417) $ 3,642 $ 1,292 Defined benefit plans Beginning balance $ (986) $ — $ — Net actuarial gain/(loss) and prior service credit/(cost) 3,805 (1,275) — Income tax (expense)/benefit (862) 289 — Defined benefit plans, net of tax 2,943 (986) — Ending balance $ 1,957 $ (986) $ — Accumulated other comprehensive loss $ (54,207) $ (25,512) $ (31,374) (1) As of December 31, 2021, the ending balance of net unrealized loss related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of revenues (exclusive of depreciation and amortization) in the next twelve months. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019 (In thousands) Balance at Additions Deductions/ Balance at End of Year Year Ended December 31, 2021 Allowance for doubtful accounts for trade receivables and contract assets $ 4,886 3,888 (3,253) $ 5,521 Valuation allowance on deferred tax assets $ 5,485 — (948) $ 4,537 Year Ended December 31, 2020 Allowance for doubtful accounts for trade receivables and contract assets $ 3,210 3,282 (1,606) $ 4,886 Valuation allowance on deferred tax assets $ 3,877 1,608 — $ 5,485 Year Ended December 31, 2019 Allowance for doubtful accounts for trade receivables and contract assets $ 1,557 2,072 (419) $ 3,210 Valuation allowance on deferred tax assets $ 3,189 688 — $ 3,877 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On February 24, 2022, Russian forces launched significant military action against Ukraine, and sustained conflict and disruption in the region is likely. Impact to Ukraine as well as actions taken by other countries, including new and stricter sanctions by Canada, the United Kingdom, the European Union, the U.S. and other countries and organizations against officials, individuals, regions, and industries in Russia, Ukraine, and Belarus, and each country’s potential response to such sanctions, tensions, and military actions could have a material effect on the Company’s operations. Any such material effect from the conflict and enhanced sanctions activity may disrupt the Company’s delivery of services, cause the Company to shift all or portions of its work occurring in the region to other countries, and may restrict the Company’s ability to engage in certain projects in the region or involving certain customers in the region. As of February 24, 2022, EPAM has approximately 14,000 personnel in Ukraine (including approximately 13,000 delivery personnel) in addition to personnel in Russia and Belarus. The Company has no way to predict the progress or outcome of the situation, as the conflict and government reactions are rapidly developing and beyond the Company’s control. Prolonged unrest, military activities, or broad-based sanctions, should they be implemented, could have a material adverse effect on the Company’s financial condition, results of operations and cash flows. |
BUSINESS AND SUMMARY OF SIGNI_2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations | EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading global provider of digital platform engineering and software development services to customers located around the world, primarily in North America, Europe, and Asia. The Company’s industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as other emerging industries. The Company is incorporated in Delaware with headquarters in Newtown, Pennsylvania. |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM and its subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash equivalents are short-term, highly liquid investments and deposits that are readily convertible into cash, with maturities of three months or less at the date acquired. Highly liquid investments with maturities greater than three months at the date acquired are reported separately from cash equivalents. |
Trade Receivables and Contract Assets | Trade Receivables and Contract Assets — The Company classifies its right to consideration in exchange for deliverables as either a trade receivable or a contract asset. A trade receivable is a right to consideration that is unconditional (i.e., only the passage of time is required before payment is due) regardless of whether the amounts have been billed. Trade receivables are stated net of allowance for doubtful accounts. Outstanding trade receivables are reviewed periodically and allowances are provided for the estimated amount of receivables that may not be collected. The allowance for doubtful accounts is determined based on historical experience and management’s evaluation of trade receivables. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets primarily relate to unbilled amounts on fixed-price contracts. Contract assets are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. The Company recognizes an impairment loss when the contract carrying amount is greater than the remaining consideration receivable, less directly related costs to be incurred. |
Property and Equipment | Property and Equipment — Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets generally ranging from two |
Business Combinations | Business Combinations — The Company accounts for business combinations using the acquisition method which requires it to estimate the fair value of identifiable assets acquired and liabilities assumed, including any contingent consideration, to properly allocate the purchase price to the individual assets acquired and liabilities assumed in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations . The allocation of the purchase price utilizes significant estimates in determining the fair values of identifiable assets acquired and liabilities assumed, especially with respect to intangible assets. The significant estimates and assumptions used include the timing and amount of forecasted revenues and cash flows, anticipated growth rates, customer attrition rates, the discount rate reflecting the risk inherent in future cash flows and the useful lives for finite-lived assets. There are different valuation models for each component, the selection of which requires considerable judgment. These determinations will affect the amount of amortization expense recognized in future periods. The Company bases its fair value estimates on assumptions it believes are reasonable, but recognizes that the assumptions are inherently uncertain. The acquired assets typically include customer relationships, software, trade names, non-competition agreements, and assembled workforce and as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. |
Long-Lived Assets | Long-Lived Assets — Long-lived assets, such as property and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the carrying value of an asset is more than the sum of the undiscounted expected future cash flows, an impairment is recognized. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill and other intangible assets that have indefinite useful lives are accounted for in accordance with FASB ASC 350, Intangibles — Goodwill and Other . The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31st, and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is an operating segment or one level below. The Company does not have intangible assets other than goodwill that have indefinite useful lives. |
Derivative Financial Instruments | Derivative Financial Instruments — The Company enters into derivative financial instruments to manage exposure to fluctuations in certain foreign currencies. The Company measures these foreign currency derivative contracts at fair value on a recurring basis utilizing Level 2 inputs and recognizes them as either assets or liabilities in its consolidated balance sheets. The Company records changes in the fair value of these hedges in accumulated other comprehensive income/(loss) until the forecasted transaction occurs. When the forecasted transaction occurs, the Company reclassifies the related gain or loss on the cash flow hedge to cost of revenues (exclusive of depreciation and amortization). In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the Company reclassifies the gain or loss on the underlying hedge into income. If the Company does not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in income. The cash flow impact of derivatives identified as hedging instruments is reflected as cash flows from operating activities. The cash flow impact of derivatives not identified as hedging instruments is reflected as cash flows from investing activities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The Company makes assumptions about fair values of its financial assets and liabilities in accordance with FASB ASC Topic 820, Fair Value Measurement , and utilizes the following fair value hierarchy in determining inputs used for valuation: Level 1 — Quoted prices for identical assets or liabilities in active markets. Level 2 — Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. Level 3 — Unobservable inputs reflecting management’s view about the assumptions that market participants would use in pricing the asset or liability. Where the fair values of financial assets and liabilities recorded in the consolidated balance sheets cannot be derived from an active market, they are determined using a variety of valuation techniques. These valuation techniques include a net present value technique, comparison to similar instruments with market observable inputs, option pricing models and other relevant valuation models. To the extent possible, observable market data is used as inputs into these models but when it is not feasible, a degree of judgment is required to establish fair values. Changes in the fair value of liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 4 “Fair Value Measurements.” |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss — Accumulated other comprehensive loss (“AOCI”) consists of changes in the cumulative foreign currency translation adjustments and actuarial gains and losses on defined benefit pension plans. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with FASB ASC Topic 815, Derivatives and Hedging. |
Revenue Recognition | Revenue Recognition — The Company recognizes revenue in accordance with ASC 606 which requires entities to recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services as well as requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company recognizes revenues when control of goods or services is passed to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Such control may be transferred over time or at a point in time depending on satisfaction of obligations stipulated by the contract. Consideration expected to be received may consist of both fixed and variable components and is allocated to each separately identifiable performance obligation based on the performance obligation’s relative standalone selling price. Variable consideration usually takes the form of volume-based discounts, service level credits, price concessions or incentives. Determining the estimated amount of such variable consideration involves assumptions and judgment that can have an impact on the amount of revenues reported. The Company derives revenues from a variety of service arrangements, which have been evolving to provide more customized and integrated solutions to customers by combining software engineering with customer experience design, business consulting and technology innovation services. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. The Company generates the majority of its revenues under time-and-material contracts, which are billed using hourly, daily or monthly rates to determine the amounts to be charged directly to the customer. The Company applies a practical expedient and revenues related to time-and-material contracts are recognized based on the right to invoice for services performed. Fixed-price contracts include maintenance and support arrangements which may exceed one year in duration. Maintenance and support arrangements generally relate to the provision of ongoing services and revenues for such contracts are recognized ratably over the expected service period. Fixed-price contracts also include application development arrangements, where progress towards satisfaction of the performance obligation is measured using input or output methods and input methods are used only when there is a direct correlation between hours incurred and the end product delivered. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. Revenues from licenses which have significant stand-alone functionality are recognized at a point in time when control of the license is transferred to the customer. Revenues from licenses which do not have stand-alone functionality are recognized over time. If there is an uncertainty about the receipt of payment for the services, revenue recognition is deferred until the uncertainty is sufficiently resolved. The Company applies a practical expedient and does not assess the existence of a significant financing component if the period between transfer of the service to a customer and when the customer pays for that service is one year or less. |
Cost of Revenues (Exclusive of Depreciation and Amortization) | Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries, bonuses, fringe benefits, stock-based compensation, project related travel costs and fees for subcontractors that are assigned to customer projects. Salaries and other compensation expenses of the Company’s delivery professionals are reported as cost of revenues regardless of whether the employees are actually performing customer services during a given period. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses — Consists of expenses associated with promoting and selling the Company’s services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation, severance, bad debt, travel, legal and accounting services, insurance, facilities including operating leases, advertising and other promotional activities, and certain non-income taxes. |
Stock-based Compensation | Stock-Based Compensation — The Company recognizes the cost of its equity settled stock-based incentive awards based on the fair value of the award at the date of grant, net of estimated forfeitures. The grant date fair value for stock options and stock purchase rights under the Employee Stock Purchase Plan (”ESPP”) is estimated using the Black-Scholes option-pricing valuation model. The cost is generally expensed evenly over the service period, unless otherwise specified by the award agreement. The service period is the period over which the employee performs the related services, which is normally the same as the vesting period. Equity-based awards that do not require future service are expensed immediately. For awards with performance conditions, the amount of compensation cost we recognize over the requisite service period is based on the actual or expected achievement of the performance condition. Quarterly, the forfeiture assumption is adjusted to reflect actual forfeitures and such adjustment may affect the timing of recognition of the total amount of expense recognized over the vesting period. Stock-based awards that do not meet the criteria for equity classification are recorded as liabilities and adjusted to fair value at the end of each reporting period. |
Income Taxes | Income Taxes — The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes. The realizability of deferred tax assets is primarily dependent on future earnings. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. A reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings. |
Earnings Per Share (EPS) | Earnings per Share (“EPS”) — Basic EPS is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period, increased by the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock, unvested restricted stock units (“RSUs”) and the stock to be issued under the ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. |
Foreign Currency Transaction | Foreign Currency Translation — Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive income/(loss). For consolidated foreign subsidiaries whose functional currency is not the local currency, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur. |
Risks and Uncertainties | Risks and Uncertainties — As a result of its global operations, the Company may be subject to certain inherent risks. Concentration of Credit — Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, short-term investments and trade receivables. The Company maintains cash, cash equivalents and short-term investments with financial institutions. The Company believes its credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. The Company has cash in countries, including Russia, Belarus and Ukraine, where the banking sector remains subject to periodic instability, banking and other financial systems generally do not meet the banking standards of more developed markets, and bank deposits made by corporate entities are not insured. As of December 31, 2021, the Company had $232.6 million of cash and cash equivalents in banks in Russia, Belarus and Ukraine, representing 16.1% of the Company’s total cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions considered stable in the region, limits the amount of credit exposure with any one financial institution and conducts ongoing evaluations of the credit worthiness of the financial institutions with which it does business. A banking crisis, bankruptcy or insolvency of banks that process or hold the Company’s funds, or sanctions may result in the loss of deposits or adversely affect the Company’s ability to complete banking transactions, which could adversely affect the Company’s business and financial condition. Cash in these countries is used for the operational needs of the local entities and cash balances change with the expected operating needs of these entities. The Company regularly monitors cash held in these countries and, to the extent the cash held exceeds amounts required to support its operations in these countries, the Company distributes the excess funds into markets with more developed banking sectors. Trade receivables are generally dispersed across many customers operating in different industries; therefore, concentration of credit risk is limited. Historically, credit losses and write-offs of trade receivables have not been material to the consolidated financial statements. If any of our customers enter bankruptcy protection or otherwise take steps to alleviate their financial distress, the Company’s credit losses and write-offs of trade receivables could increase, which would negatively impact its results of operations. Foreign currency risk — The Company’s global operations are conducted predominantly in U.S. dollars. Other than U.S. dollars, the Company generates revenues in various currencies, principally, euros, British pounds, Russian rubles, Swiss francs, and Canadian dollars and incurs expenditures principally in Russian rubles, Polish zlotys, euros, Swiss francs, Hungarian forints, British pounds, Indian rupees, Chinese yuan renminbi and Mexican pesos. The Company’s international operations expose it to foreign currency exchange rate changes that could impact translations of foreign denominated assets and liabilities into U.S. dollars and future earnings and cash flows from transactions denominated in different currencies. The Company is exposed to fluctuations in foreign currency exchange rates primarily related to trade receivables from sales in foreign currencies and cash outflows for expenditures in foreign currencies. The Company’s results of operations, primarily revenues and expenses denominated in foreign currencies, can be affected if any of the currencies, which are used materially in the Company’s business, appreciate or depreciate against the U.S. dollar. The Company has a hedging program whereby it entered into a series of foreign exchange forward contracts with durations of twelve months or less that are designated as cash flow hedges of forecasted Russian ruble, Polish zloty, Indian rupee and Hungarian forint transactions. |
Adoption of New/ Pending Accounting Standards | Adoption of New Accounting Standards Unless otherwise discussed below, the adoption of new accounting standards did not have a material impact on the Company’s consolidated financial position, results of operations, and cash flows. Business Combinations - In October 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with ASC Topic 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted, including adoption in an interim period. An entity that adopts in an interim period should apply the amendments retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application. The Company early adopted this guidance in the fourth quarter of 2021, retrospectively to January 1, 2021. The adoption did not have a material impact on the previously reported unaudited interim condensed consolidated financial statements. Measurement of Credit Losses on Financial Instruments — In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update changed how companies measure and recognize credit impairment for many financial assets. The new credit loss model requires companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets, including trade receivables, that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. The Company adopted Topic 326, effective January 1, 2020, using a modified-retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. As a result of the adoption of Topic 326, the Company recorded an immaterial reduction to its allowance for doubtful accounts for trade receivables and contract assets . Pending Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that the Company will adopt according to the various timetables the FASB specifies. The Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. |
Non-Marketable Securities Without Readily Determinable Fair Values | Non-Marketable Securities Without Readily Determinable Fair ValuesThe Company holds investments in equity securities that do not have readily determinable fair values. These investments are recorded at cost and are remeasured to fair value based on certain observable price changes or impairment events as they occur. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of each respective acquisition and updated for any changes as of December 31, 2021: test IO PolSource CORE Emakina Cash and cash equivalents $ 663 $ 2,565 $ 11,283 $ 5,142 Trade receivables and contract assets 621 12,734 10,266 34,389 Prepaid and other current assets 150 814 5,562 3,109 Goodwill 11,926 125,339 23,234 136,614 Intangible assets 6,219 15,790 8,368 30,488 Property and equipment and other noncurrent assets 305 461 4,585 17,059 Total assets acquired $ 19,884 $ 157,703 $ 63,298 $ 226,801 Accounts payable, accrued expenses and other current liabilities $ 993 $ 5,337 $ 8,508 $ 36,042 Short-term debt — — — 13,657 Long-term debt — — — 8,874 Operating lease liability, noncurrent — 157 2,056 5,411 Other noncurrent liabilities 1,568 4,037 2,525 8,337 Total liabilities assumed $ 2,561 $ 9,531 $ 13,089 $ 72,321 Noncontrolling interest in consolidated subsidiaries — — — 10,469 Net assets acquired $ 17,323 $ 148,172 $ 50,209 $ 144,011 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following table presents the estimated fair values and useful lives of intangible assets acquired from test IO, PolSource, CORE and Emakina as of the date of each respective acquisition and updated for any changes as of December 31, 2021: test IO PolSource CORE Emakina Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 7 $ 2,456 6 $ 14,790 6 $ 7,779 7 $ 27,822 Software 6 3,461 — — — — — — Trade names 4 302 3 1,000 5 589 3 2,666 Total $ 6,219 $ 15,790 $ 8,368 $ 30,488 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill By Reportable Segment | Goodwill by reportable segment was as follows: North America Europe Russia Total Balance as of January 1, 2020 $ 113,426 $ 80,873 $ 744 $ 195,043 2020 Acquisitions 6,042 6,903 — 12,945 test IO purchase accounting adjustments 863 (1,089) — (226) Other 2019 Acquisitions purchase accounting adjustments 219 259 21 499 Effect of net foreign currency exchange rate changes 582 3,160 (47) 3,695 Balance as of December 31, 2020 121,132 90,106 718 211,956 Emakina acquisition — 136,614 — 136,614 PolSource acquisition 75,203 50,136 — 125,339 CORE acquisition — 23,234 — 23,234 Other 2021 Acquisitions 21,875 18,830 — 40,705 2020 Acquisitions purchase accounting adjustments — (24) — (24) Effect of net foreign currency exchange rate changes (616) (6,483) (2) (7,101) Balance as of December 31, 2021 $ 217,594 $ 312,413 $ 716 $ 530,723 |
Components of Intangible Assets | Intangible assets other than goodwill as of December 31, 2021 and 2020 were as follows: As of December 31, 2021 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net Customer relationships 10 $ 156,118 $ (64,441) $ 91,677 Trade names 6 10,933 (6,086) 4,847 Software 6 6,223 (2,639) 3,584 Contract royalties 8 1,900 (910) 990 Assembled workforce 3 161 (116) 45 Total $ 175,335 $ (74,192) $ 101,143 As of December 31, 2020 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net Customer relationships 9 $ 94,169 $ (49,415) $ 44,754 Trade names 5 6,495 (5,273) 1,222 Software 6 6,309 (1,633) 4,676 Contract royalties 8 1,900 (673) 1,227 Assembled workforce 3 157 (61) 96 Total $ 109,030 $ (57,055) $ 51,975 |
Intangible Assets Amortization Expense Recognized | The following table presents amortization expense recognized for the periods indicated: For the Years Ended December 31, 2021 2020 2019 Customer relationships $ 15,399 $ 10,478 $ 8,743 Software 1,114 1,068 486 Trade names 842 495 447 Contract royalties 238 238 238 Assembled workforce 53 61 — Total $ 17,646 $ 12,340 $ 9,914 |
Estimated Amortization Expense | Based on the carrying value of the Company’s existing intangible assets as of December 31, 2021, the estimated amortization expense for the future years is as follows: Year ending December 31, Amount 2022 $ 23,527 2023 22,219 2024 19,472 2025 15,522 2026 11,027 Thereafter 9,376 Total $ 101,143 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021: As of December 31, 2021 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 1,429 $ — $ 1,429 $ — Rights to acquire noncontrolling interest in consolidated subsidiaries 6,093 — — 6,093 Total assets measured at fair value on a recurring basis $ 7,522 $ — $ 1,429 $ 6,093 Foreign exchange derivative liabilities $ 5,849 $ — $ 5,849 $ — Contingent consideration 23,114 — — 23,114 Total liabilities measured at fair value on a recurring basis $ 28,963 $ — $ 5,849 $ 23,114 The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2020. As of December 31, 2020 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 4,955 $ — $ 4,955 $ — Total assets measured at fair value on a recurring basis $ 4,955 $ — $ 4,955 $ — Foreign exchange derivative liabilities $ 243 $ — $ 243 $ — Contingent consideration 7,470 — — 7,470 Total liabilities measured at fair value on a recurring basis $ 7,713 $ — $ 243 $ 7,470 |
Acquisition-Related Contingent Consideration Roll Forward | A reconciliation of the beginning and ending balances of Level 3 acquisition-related contingent consideration liabilities using significant unobservable inputs for the years ended December 31, 2019, December 31, 2020 and December 31, 2021 are as follows: Amount Contingent consideration liabilities as of January 1, 2019 $ 7,468 Acquisition date fair value of contingent consideration — Other 2019 Acquisitions (Note 2) 2,100 Changes in fair value of contingent consideration included in Interest and other (loss)/income, net 1,776 Payment of contingent consideration for previously acquired businesses (1,104) Effect of net foreign currency exchange rate changes 255 Contingent consideration liabilities as of December 31, 2019 $ 10,495 Acquisition date fair value of contingent consideration — 2020 Acquisitions (Note 2) 5,292 Changes in fair value of contingent consideration included in Interest and other (loss)/income, net 1,827 Payment of contingent consideration for previously acquired businesses (9,619) Effect of net foreign currency exchange rate changes (525) Contingent consideration liabilities as of December 31, 2020 $ 7,470 Acquisition date fair value of contingent consideration — PolSource acquisition (Note 2) 35,400 Acquisition date fair value of contingent consideration — CORE acquisition (Note 2) 4,007 Acquisition date fair value of contingent consideration — Emakina acquisition (Note 2) 213 Acquisition date fair value of contingent consideration — Other 2021 Acquisitions (Note 2) 17,629 Changes in fair value of contingent consideration included in Interest and other (loss)/income, net 8,782 Payment of contingent consideration for previously acquired businesses (50,000) Effect of net foreign currency exchange rate changes (387) Contingent consideration liabilities as of December 31, 2021 $ 23,114 |
Estimated Fair Values of Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis | The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2021 Financial Assets: Cash equivalents: Money market funds $ 78,302 $ 78,302 $ 78,302 $ — $ — Total cash equivalents $ 78,302 $ 78,302 $ 78,302 $ — $ — Restricted cash $ 2,722 $ 2,722 $ 2,722 $ — $ — Employee loans $ 818 $ 818 $ — $ — $ 818 Financial Liabilities: Short term debt $ 16,018 $ 16,018 $ — $ 16,018 $ — Borrowings under 2021 Credit Agreement $ 25,000 $ 25,000 $ — $ 25,000 $ — Other long term debt $ 5,234 $ 5,234 $ — $ 5,234 $ — Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2020 Financial Assets: Cash equivalents: Money market funds $ 153,783 $ 153,783 $ 153,783 $ — $ — Total cash equivalents $ 153,783 $ 153,783 $ 153,783 $ — $ — Restricted cash $ 1,390 $ 1,390 $ 1,390 $ — $ — Time deposits included in Short-term investments $ 60,007 $ 60,007 $ — $ 60,007 $ — Employee loans $ 794 $ 794 $ — $ — $ 794 Financial Liabilities: Borrowings under 2017 Credit Facility $ 25,007 $ 25,007 $ — $ 25,007 $ — |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The fair value of foreign currency derivative instruments on the Company’s consolidated balance sheets as of December 31, 2021 and December 31, 2020 were as follows: As of December 31, 2021 As of December 31, 2020 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Designated as hedging instruments Prepaid and other current assets $ 1,429 $ 4,955 Accrued expenses and other current liabilities $ 5,849 $ 243 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consisted of the following: Weighted Average Useful Life As of December 31, 2021 As of December 31, 2020 Computer hardware 3 $ 167,546 $ 117,333 Buildings 44 55,388 52,007 Leasehold improvements 8 37,828 39,675 Purchased computer software 3 33,649 31,993 Furniture, fixture and other equipment 7 31,961 31,859 Office equipment 7 22,881 20,971 Land improvements 18 2,137 2,137 Land n/a 1,339 1,339 Construction in progress n/a 50,133 — 402,862 297,314 Less accumulated depreciation and amortization (166,648) (127,781) Total $ 236,214 $ 169,533 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of December 31, 2021 As of December 31, 2020 Value added taxes payable $ 49,924 $ 34,522 Deferred revenue 39,810 17,383 Contingent consideration, current (Note 4) 9,405 1,125 Other current liabilities and accrued expenses 42,875 26,660 Total $ 142,014 $ 79,690 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Expenses | During the years ended December 31, 2021, 2020 and 2019, the components of lease expense were as follows: Income Statement Classification Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Operating lease cost Selling, general and administrative expenses $ 67,144 $ 73,740 $ 62,740 Variable lease cost Selling, general and administrative expenses 8,555 6,461 8,730 Short-term lease cost Selling, general and administrative expenses 2,248 1,169 3,870 Total lease cost $ 77,947 $ 81,370 $ 75,340 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases for the years ended December 31, 2021 and 2020 were as follows: Year Ended December 31, 2021 Year Ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 68,986 $ 70,012 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 18,590 $ 50,949 Non-cash net increase due to lease modifications: Operating lease right-of-use assets $ 7,000 $ 7,876 Operating lease liabilities $ 7,062 $ 7,861 |
Weighted Average Lease Term and Discount Rates | Weighted average remaining lease terms and discount rates as of December 31, 2021 and 2020, were as follows: As of December 31, 2021 As of December 31, 2020 Weighted average remaining lease term, in years: Operating leases 5.5 5.9 Weighted average discount rate: Operating leases 2.5 % 2.9 % |
Maturity of Operating Lease Liabilities | As of December 31, 2021, operating lease liabilities will mature as follows: Year ending December 31, Lease Payments 2022 $ 53,985 2023 40,385 2024 33,589 2025 24,144 2026 18,576 Thereafter 34,701 Total lease payments 205,380 Less: imputed interest (12,474) Total $ 192,906 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Outstanding Debt and Borrowing Capacity | The following table presents the outstanding debt and borrowing capacity of the Company under the 2021 Credit Agreement as of December 31, 2021 and the 2017 Credit Facility as of December 31, 2020: As of December 31, 2021 As of December 31, 2020 Outstanding debt $ 25,000 $ 25,000 Interest rate 1.0 % 1.2 % Available borrowing capacity $ 675,000 $ 275,000 Current maximum borrowing capacity $ 700,000 $ 300,000 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following tables show the disaggregation of the Company’s revenues by major customer location, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 16 “Segment Information”) for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 2,145,163 $ 77,351 $ 4,316 $ 2,226,830 EMEA 87,121 1,172,267 329 1,259,717 CEE 6,740 531 160,767 168,038 APAC 3,224 100,335 — 103,559 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 1,546,093 $ 45,553 $ 3,490 $ 1,595,136 EMEA 45,733 834,033 76 879,842 CEE 7,817 98 106,787 114,702 APAC 2,177 67,621 — 69,798 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 1,344,040 $ 45,859 $ 116 $ 1,390,015 EMEA 27,042 719,548 276 746,866 CEE 8,583 143 91,745 100,471 APAC 1,279 55,167 — 56,446 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 The following tables show the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 16 “Segment Information”) for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Financial Services $ 361,611 $ 372,394 $ 114,365 $ 848,370 Travel & Consumer 359,306 354,041 27,781 741,128 Business Information & Media 389,613 275,502 1,826 666,941 Software & Hi-Tech 559,707 102,270 2,620 664,597 Life Sciences & Healthcare 340,706 49,900 703 391,309 Emerging Verticals 231,305 196,377 18,117 445,799 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Financial Services $ 199,594 $ 278,355 $ 77,286 $ 555,235 Travel & Consumer 221,977 220,448 16,364 458,789 Business Information & Media 334,063 224,922 1,695 560,680 Software & Hi-Tech 419,895 73,288 3,630 496,813 Life Sciences & Healthcare 260,518 35,347 448 296,313 Emerging Verticals 165,773 114,945 10,930 291,648 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Financial Services $ 184,469 $ 244,284 $ 72,119 $ 500,872 Travel & Consumer 198,264 229,523 11,571 439,358 Business Information & Media 262,448 157,844 631 420,923 Software & Hi-Tech 354,023 77,377 1,998 433,398 Life Sciences & Healthcare 224,925 23,444 83 248,452 Emerging Verticals 156,815 88,245 5,735 250,795 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 The Company derives revenues from a variety of customized and integrated service arrangements. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. The following tables show the disaggregation of the Company’s revenues by contract type, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 16 “Segment Information”) for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,981,696 $ 1,145,606 $ 82,445 $ 3,209,747 Fixed-price 244,249 202,436 82,711 529,396 Licensing 14,540 793 219 15,552 Other revenues 1,763 1,649 37 3,449 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,440,635 $ 790,203 $ 60,166 $ 2,291,004 Fixed-price 151,769 151,718 48,525 352,012 Licensing 8,027 1,526 1,586 11,139 Other revenues 1,389 3,858 76 5,323 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,247,979 $ 688,605 $ 54,069 $ 1,990,653 Fixed-price 127,926 128,977 37,747 294,650 Licensing 3,626 1,230 225 5,081 Other revenues 1,413 1,905 96 3,414 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 Timing of Revenue Recognition The following tables show the timing of revenue recognition reconciled with the Company’s reportable segments (Note 16 “Segment Information”) for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 2,232,308 $ 1,349,956 $ 165,301 $ 3,747,565 Transferred at a point of time 9,940 528 111 10,579 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,595,786 $ 946,379 $ 108,826 $ 2,650,991 Transferred at a point of time 6,034 926 1,527 8,487 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 Year Ended December 31, 2019 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,379,256 $ 819,913 $ 92,076 $ 2,291,245 Transferred at a point of time 1,688 804 61 2,553 Revenues $ 1,380,944 $ 820,717 $ 92,137 $ 2,293,798 |
Revenue Expected to be Recognized in Future Related to Remaining Performance Obligations | The following table includes the estimated revenues expected to be recognized in the future related to performance obligations that are partially or fully unsatisfied as of December 31, 2021. The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts that (i) have an original expected duration of one year or less and (ii) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services provided: Less than 1 year 1 Year 2 Years 3 Years Total Contract Type Fixed-price $ 8,214 $ 380 $ — $ — $ 8,594 |
Contract Balances | The following table provides information on the classification of contract assets and liabilities in the consolidated balance sheets: As of December 31, 2021 As of December 31, 2020 Contract assets included in Trade receivables and contract assets $ 13,798 $ 7,700 Contract liabilities included in Accrued expenses and other current liabilities $ 39,810 $ 17,383 Contract liabilities included in Other noncurrent liabilities $ 84 $ 94 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Components of Stock-Based Compensation Expenses | The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income: For the Years Ended December 31, 2021 2020 2019 Cost of revenues (exclusive of depreciation and amortization) $ 51,580 $ 32,785 $ 37,580 Selling, general and administrative expenses 60,075 42,453 34,456 Total $ 111,655 $ 75,238 $ 72,036 |
Stock Option Activity | Stock option activity under the Company’s plans is set forth below: Number of Weighted Average Aggregate Weighted Average Options outstanding as of January 1, 2019 4,083 $ 44.54 $ 291,846 Options granted 132 $ 169.13 Options modified 18 $ 163.55 Options exercised (899) $ 41.21 Options forfeited/cancelled (11) $ 97.83 Options outstanding as of December 31, 2019 3,323 $ 50.85 $ 536,015 Options granted 158 $ 187.76 Options modified — $ — Options exercised (700) $ 37.79 Options forfeited/cancelled (9) $ 119.30 Options outstanding as of December 31, 2020 2,772 $ 61.71 $ 822,152 Options granted 94 $ 410.03 Options exercised (536) $ 49.13 Options forfeited/cancelled (12) $ 248.74 Options outstanding as of December 31, 2021 2,318 $ 77.79 $ 1,369,132 3.7 Options vested and exercisable as of December 31, 2021 2,018 $ 53.27 $ 1,241,261 3.0 Options expected to vest as of December 31, 2021 284 $ 240.03 $ 121,544 8.1 |
Black-Scholes Option Valuation Model Assumptions | The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The model incorporated the following weighted-average assumptions: For the Years Ended December 31, 2021 2020 2019 Expected volatility 35.3 % 36.9 % 33.5 % Expected term (in years) 6.24 6.25 6.25 Risk-free interest rate 1.2 % 0.5 % 2.3 % Expected dividends — % — % — % |
Service-Based Awards Activity | The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the years ended December 31, 2021, 2020 and 2019: Equity-Classified Equity-Classified Equity-Settled Restricted Stock Units Liability-Classified Cash-Settled Restricted Stock Units Number of Weighted Average Grant Date Number of Weighted Average Grant Date Number of Weighted Average Grant Date Unvested service-based awards outstanding as of January 1, 2019 1 $ 63.10 798 $ 92.13 303 $ 83.99 Awards granted 9 $ 167.18 284 $ 170.29 56 $ 170.13 Awards modified — $ — 7 $ 170.74 1 $ 168.36 Awards vested — $ — (287) $ 87.79 (111) $ 80.51 Awards forfeited/cancelled — $ — (43) $ 114.45 (7) $ 94.77 Unvested service-based awards outstanding as of December 31, 2019 10 $ 162.96 759 $ 122.48 242 $ 105.40 Awards granted — $ — 294 $ 204.57 60 $ 181.77 Awards modified — $ — (1) $ 122.55 — $ — Awards vested (1) $ 63.10 (317) $ 108.87 (122) $ 91.39 Awards forfeited/cancelled — $ — (49) $ 148.11 (5) $ 113.94 Unvested service-based awards outstanding as of December 31, 2020 9 $ 167.18 686 $ 162.15 175 $ 141.16 Awards granted — $ — 238 $ 429.41 27 $ 394.24 Awards vested — $ — (308) $ 139.83 (86) $ 118.05 Awards forfeited/cancelled — $ — (40) $ 264.48 (4) $ 210.26 Unvested service-based awards outstanding as of December 31, 2021 9 $ 167.18 576 $ 277.38 112 $ 217.28 |
Fair Value of Service-Based Awards Vested | The fair value of vested service-based awards (measured at the vesting date) for the years ended December 31, 2021, 2020 and 2019 was as follows: For the Years Ended December 31, 2021 2020 2019 Equity-classified equity-settled Restricted stock $ — $ 101 $ 73 Restricted stock units 129,527 60,042 48,111 Liability-classified cash-settled Restricted stock units 33,947 22,014 18,449 Total fair value of vested service-based awards $ 163,474 $ 82,157 $ 66,633 |
Performance-Based Awards Activity | The table below summarizes activity related to the Company’s performance-based awards for the years ended December 31, 2021, 2020 and 2019: Equity-Classified Equity-Classified Number of Weighted Average Grant Date Number of Weighted Average Grant Date Unvested performance-based awards outstanding as of January 1, 2019 — $ — 30 $ 121.75 Awards granted 9 $ 165.87 — $ — Awards modified — $ — (30) $ 121.75 Unvested performance-based awards outstanding as of December 31, 2019 9 $ 165.87 — $ — Awards granted — $ — 31 $ 210.44 Awards vested — $ — (10) $ 177.81 Unvested performance-based awards outstanding as of December 31, 2020 9 $ 165.87 21 $ 227.16 Awards granted — $ — 8 $ 574.98 Awards vested — $ — (4) $ 177.81 Awards forfeited — $ — (2) $ 334.78 Unvested performance-based awards outstanding as of December 31, 2021 9 $ 165.87 23 $ 339.69 |
Fair Value of Performance-Based Awards Vested | The fair value of vested performance-based awards (measured at the vesting date) for the years ended December 31, 2021, 2020 and 2019 was as follows: For the Years Ended December 31, 2021 2020 2019 Equity-classified equity-settled Restricted stock units $ 2,215 3,282 $ — Total fair value of vested performance-based awards $ 2,215 $ 3,282 $ — |
Schedule of Assumptions Used | The Black-Scholes model relies on a number of key assumptions to calculate estimated fair values. The model incorporated the following weighted-average assumptions for the year ended December 31, 2021: Expected volatility 23.1 % Expected term (in years) 0.50 Risk-free interest rate 0.1 % Expected dividends — % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Before Provision of Income Taxes | Income before provision for income taxes based on geographic location is disclosed in the table below: For the Years Ended December 31, 2021 2020 2019 Income before provision for income taxes: United States $ 128,498 $ 100,411 $ 65,370 Foreign 404,894 278,068 234,156 Total $ 533,392 $ 378,479 $ 299,526 |
Provision for Income Taxes | The provision for income taxes consists of the following: For the Years Ended December 31, 2021 2020 2019 Current Federal $ 22,742 $ 19,249 $ 16,943 State 6,735 7,022 3,610 Foreign 69,162 45,042 25,680 Deferred Federal (40,421) (16,235) (9,425) State (2,576) (1,682) (358) Foreign (3,902) (2,077) 2,019 Total $ 51,740 $ 51,319 $ 38,469 |
Effective Tax Rate Reconciliation | The reconciliation of the provision for income taxes at the federal statutory income tax rate to the Company’s effective income tax rate is as follows: For the Years Ended December 31, 2021 2020 2019 Provision for income taxes at federal statutory rate $ 112,016 $ 79,481 $ 62,898 Increase/(decrease) in taxes resulting from: GILTI and BEAT U.S. taxes 229 191 (926) Excess tax benefits relating to stock-based compensation (71,628) (36,646) (28,385) Foreign tax expense and tax rate differential (206) (387) (1,402) Effect of permanent differences 4,756 3,507 3,264 State taxes, net of federal benefit 9,192 5,323 2,971 Stock-based compensation expense 1,102 44 571 Tax credits (4,100) — — Other 379 (194) (522) Provision for income taxes $ 51,740 $ 51,319 $ 38,469 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2021 As of December 31, 2020 Deferred tax assets: Property and equipment $ 10,561 $ 8,164 Intangible assets 2,220 827 Accrued expenses 90,754 50,639 Net operating loss carryforward 4,988 6,089 Deferred revenue 4,551 9,796 Stock-based compensation 31,959 30,112 Operating lease liabilities 52,806 51,519 Foreign tax credit 7,589 2,168 Foreign currency exchange 11,750 4,890 Other assets 2,235 1,252 Deferred tax assets $ 219,413 $ 165,456 Less: valuation allowance (4,538) (5,485) Total deferred tax assets $ 214,875 $ 159,971 Deferred tax liabilities: Property and equipment $ 1,095 $ 3,818 Intangible assets 26,124 12,018 Operating lease right-of-use assets 51,871 50,149 Accrued revenue and expenses 2,953 991 U.S. taxation of foreign subsidiaries 3,770 1,608 Foreign currency exchange 239 1,153 Other liabilities 3,210 1,095 Total deferred tax liabilities $ 89,262 $ 70,832 Net deferred tax assets $ 125,613 $ 89,139 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of common stock as follows: For the Years Ended December 31, 2021 2020 2019 Numerator for basic and diluted earnings per share: Net income $ 481,652 $ 327,160 $ 261,057 Numerator for basic and diluted earnings per share $ 481,652 $ 327,160 $ 261,057 Denominator: Weighted average common shares for basic earnings per share 56,511 55,727 54,719 Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP 2,553 2,719 2,949 Weighted average common shares for diluted earnings per share 59,064 58,446 57,668 Net Income per share: Basic $ 8.52 $ 5.87 $ 4.77 Diluted $ 8.15 $ 5.60 $ 4.53 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenues from External Customers and Operating Profit Before Unallocated Expenses | Revenues from external customers and operating profit, before unallocated expenses, by reportable segments were as follows: For the years ended December 31, 2021 2020 2019 Segment revenues: North America $ 2,242,248 $ 1,601,820 $ 1,380,944 Europe 1,350,484 947,305 820,717 Russia 165,412 110,353 92,137 Total revenues $ 3,758,144 $ 2,659,478 $ 2,293,798 Segment operating profit: North America $ 462,798 $ 345,196 $ 293,757 Europe 233,727 152,902 114,863 Russia 32,547 5,811 17,347 Total segment operating profit $ 729,072 $ 503,909 $ 425,967 |
Reconciliation of Segment Operating Profit to Consolidated Income Before Provision for Income Taxes | Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below: For the Years Ended December 31, 2021 2020 2019 Total segment operating profit: $ 729,072 $ 503,909 $ 425,967 Unallocated costs: Stock-based compensation expense (111,655) (75,238) (72,036) Amortization of purchased intangibles (17,646) (12,340) (9,914) Other acquisition-related expenses (6,397) (1,868) (3,774) Other unallocated costs (51,058) (35,139) (37,393) Income from operations 542,316 379,324 302,850 Interest and other (loss)/income, net (1,727) 3,822 8,725 Foreign exchange loss (7,197) (4,667) (12,049) Income before provision for income taxes $ 533,392 $ 378,479 $ 299,526 |
Physical Locations and Values of Long-Lived Assets | Physical locations and values of the Company’s long-lived assets are presented below: As of December 31, 2021 As of December 31, 2020 As of December 31, 2019 Ukraine $ 78,289 $ 30,980 $ 24,652 Belarus 75,422 73,988 75,984 Russia 16,611 15,036 17,980 United States 14,843 15,718 15,637 India 9,459 7,079 7,443 Poland 8,240 5,434 5,029 Hungary 5,339 5,365 5,201 Other 28,011 15,933 13,333 Total $ 236,214 $ 169,533 $ 165,259 |
Revenues by Customer Location | The table below presents the Company’s revenues by customer location for the years ended December 31, 2021, 2020 and 2019: For the Years Ended December 31, 2021 2020 2019 United States $ 2,125,301 $ 1,523,731 $ 1,321,662 United Kingdom 474,941 331,217 290,039 Switzerland 271,208 203,391 152,710 Russia 155,186 104,846 89,941 Netherlands 154,816 114,678 88,488 Germany 113,727 84,902 82,441 Canada 96,646 68,416 68,304 Other locations 366,319 228,297 200,213 Revenues $ 3,758,144 $ 2,659,478 $ 2,293,798 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss: For the Years Ended December 31, 2021 2020 2019 Foreign currency translation Beginning balance $ (28,168) $ (32,666) $ (38,961) Foreign currency translation (29,323) 5,802 7,912 Income tax benefit/(expense) 4,744 (1,304) (1,617) Foreign currency translation, net of tax (24,579) 4,498 6,295 Ending balance $ (52,747) $ (28,168) $ (32,666) Cash flow hedging instruments Beginning balance $ 3,642 $ 1,292 $ (2,553) Unrealized (loss)/gain in fair value (13,781) 8,076 2,933 Net gain/(loss) reclassified into Cost of revenues (exclusive of depreciation and amortization) 4,649 (5,031) 2,028 Income tax benefit/(expense) 2,073 (695) (1,116) Cash flow hedging instruments, net of tax (7,059) 2,350 3,845 Ending balance (1) $ (3,417) $ 3,642 $ 1,292 Defined benefit plans Beginning balance $ (986) $ — $ — Net actuarial gain/(loss) and prior service credit/(cost) 3,805 (1,275) — Income tax (expense)/benefit (862) 289 — Defined benefit plans, net of tax 2,943 (986) — Ending balance $ 1,957 $ (986) $ — Accumulated other comprehensive loss $ (54,207) $ (25,512) $ (31,374) |
BUSINESS AND SUMMARY OF SIGNI_3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 50 years |
BUSINESS AND SUMMARY OF SIGNI_4
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Goodwill and Other Indefinite-Lived Intangible Assets) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Accounting Policies [Abstract] | |
Indefinite-lived intangible assets other than goodwill | $ 0 |
BUSINESS AND SUMMARY OF SIGNI_5
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Risks and Uncertainties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||||
Total cash | $ 1,449,347 | $ 1,323,533 | $ 937,688 | $ 771,711 |
Belarus, Russia, Ukraine, Kazakhstan, Armenia, Georgia and Uzbekistan | Geographic concentration risk | Total cash | ||||
Concentration Risk [Line Items] | ||||
Total cash | $ 232,600 | |||
Concentration percentage | 16.10% |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) $ in Thousands | Nov. 30, 2021USD ($) | Nov. 03, 2021USD ($) | Jul. 23, 2021USD ($) | Apr. 02, 2021USD ($)specialist | Apr. 30, 2019USD ($) | Dec. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($)business | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||||||||
Contingent consideration | $ 57,249 | $ 57,249 | $ 7,119 | $ 3,876 | ||||||
Revenues | 3,758,144 | 2,659,478 | 2,293,798 | |||||||
test IO | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest acquired | 100.00% | |||||||||
Cash consideration | $ 17,300 | |||||||||
Purchase price adjustment | 100 | |||||||||
Intangible assets purchase accounting adjustment | (100) | |||||||||
Goodwill purchase accounting adjustment | $ (200) | (226) | ||||||||
Intangible assets | $ 6,219 | |||||||||
PolSource | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest acquired | 100.00% | |||||||||
Number of specialists in acquired entity (more than) | specialist | 350 | |||||||||
Purchase price including contingent consideration | $ 148,200 | |||||||||
Contingent consideration | 35,400 | |||||||||
Maximum amount of earnout payable | 45,000 | |||||||||
Purchase price adjustment | 10,400 | |||||||||
Goodwill purchase accounting adjustment | 11,800 | |||||||||
Revenue of acquiree | 1,400 | |||||||||
Acquisition related costs | 55,000 | |||||||||
Intangible assets | $ 15,790 | |||||||||
CORE | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest acquired | 100.00% | |||||||||
Purchase price including contingent consideration | $ 50,200 | |||||||||
Contingent consideration | 4,000 | |||||||||
Maximum amount of earnout payable | 8,100 | |||||||||
Deferred consideration | 7,800 | |||||||||
Purchase price adjustment | 2,200 | |||||||||
Revenue of acquiree | 1,200 | |||||||||
Acquisition related costs | 14,100 | |||||||||
Intangible assets | $ 8,368 | |||||||||
Emakina | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest acquired | 1.31% | 98.69% | ||||||||
Cash consideration | $ 1,700 | $ 143,400 | ||||||||
Revenue of acquiree | 1,000 | |||||||||
Acquisition related costs | 24,700 | |||||||||
Intangible assets | $ 30,488 | |||||||||
Other 2019 Acquisitions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | 24,800 | |||||||||
Maximum amount of earnout payable | $ 3,000 | |||||||||
Goodwill purchase accounting adjustment | 499 | |||||||||
Number of completed acquisitions | 4 | |||||||||
Intangible assets | $ 7,500 | |||||||||
Other 2019 Acquisitions | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Estimated future operating results, period | 12 months | |||||||||
Other 2019 Acquisitions | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Estimated future operating results, period | 24 months | |||||||||
2020 Acquisitions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent consideration | 5,300 | |||||||||
Maximum amount of earnout payable | $ 18,600 | |||||||||
Goodwill purchase accounting adjustment | (24) | |||||||||
Number of completed acquisitions | 2 | |||||||||
Intangible assets | $ 7,300 | |||||||||
Aggregate purchase price including contingent consideration at fair value at acquisition date | 22,500 | |||||||||
Revenues | $ 6,000 | |||||||||
Other 2021 Acquisitions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent consideration | 17,600 | 17,600 | ||||||||
Maximum amount of earnout payable | 30,200 | 30,200 | ||||||||
Revenue of acquiree | $ 19,500 | |||||||||
Number of completed acquisitions | business | 4,000 | |||||||||
Intangible assets | 14,100 | $ 14,100 | ||||||||
Purchase price including contingent consideration | $ 65,200 | $ 65,200 | ||||||||
Other 2021 Acquisitions | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Estimated future operating results, period | 12 months | |||||||||
Other 2021 Acquisitions | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Estimated future operating results, period | 48 months |
ACQUISITIONS (Fair Values of Ne
ACQUISITIONS (Fair Values of Net Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Nov. 03, 2021 | Jul. 23, 2021 | Apr. 02, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2019 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 530,723 | $ 211,956 | $ 195,043 | ||||
test IO | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 663 | ||||||
Trade receivables and contract assets | 621 | ||||||
Prepaid and other current assets | 150 | ||||||
Goodwill | 11,926 | ||||||
Intangible assets | 6,219 | ||||||
Property and equipment and other noncurrent assets | 305 | ||||||
Total assets acquired | 19,884 | ||||||
Accounts payable, accrued expenses and other current liabilities | 993 | ||||||
Short-term debt | 0 | ||||||
Long-term debt | 0 | ||||||
Operating lease liability, noncurrent | 0 | ||||||
Other noncurrent liabilities | 1,568 | ||||||
Total liabilities assumed | 2,561 | ||||||
Noncontrolling interest in consolidated subsidiaries | 0 | ||||||
Net assets acquired | $ 17,323 | ||||||
PolSource | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 2,565 | ||||||
Trade receivables and contract assets | 12,734 | ||||||
Prepaid and other current assets | 814 | ||||||
Goodwill | 125,339 | ||||||
Intangible assets | 15,790 | ||||||
Property and equipment and other noncurrent assets | 461 | ||||||
Total assets acquired | 157,703 | ||||||
Accounts payable, accrued expenses and other current liabilities | 5,337 | ||||||
Short-term debt | 0 | ||||||
Long-term debt | 0 | ||||||
Operating lease liability, noncurrent | 157 | ||||||
Other noncurrent liabilities | 4,037 | ||||||
Total liabilities assumed | 9,531 | ||||||
Noncontrolling interest in consolidated subsidiaries | 0 | ||||||
Net assets acquired | $ 148,172 | ||||||
CORE | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 11,283 | ||||||
Trade receivables and contract assets | 10,266 | ||||||
Prepaid and other current assets | 5,562 | ||||||
Goodwill | 23,234 | ||||||
Intangible assets | 8,368 | ||||||
Property and equipment and other noncurrent assets | 4,585 | ||||||
Total assets acquired | 63,298 | ||||||
Accounts payable, accrued expenses and other current liabilities | 8,508 | ||||||
Short-term debt | 0 | ||||||
Long-term debt | 0 | ||||||
Operating lease liability, noncurrent | 2,056 | ||||||
Other noncurrent liabilities | 2,525 | ||||||
Total liabilities assumed | 13,089 | ||||||
Noncontrolling interest in consolidated subsidiaries | 0 | ||||||
Net assets acquired | $ 50,209 | ||||||
Emakina | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 5,142 | ||||||
Trade receivables and contract assets | 34,389 | ||||||
Prepaid and other current assets | 3,109 | ||||||
Goodwill | 136,614 | ||||||
Intangible assets | 30,488 | ||||||
Property and equipment and other noncurrent assets | 17,059 | ||||||
Total assets acquired | 226,801 | ||||||
Accounts payable, accrued expenses and other current liabilities | 36,042 | ||||||
Short-term debt | 16,000 | 13,657 | |||||
Long-term debt | $ 5,200 | 8,874 | |||||
Operating lease liability, noncurrent | 5,411 | ||||||
Other noncurrent liabilities | 8,337 | ||||||
Total liabilities assumed | 72,321 | ||||||
Noncontrolling interest in consolidated subsidiaries | 10,469 | ||||||
Net assets acquired | $ 144,011 |
ACQUISITIONS (Fair Values and U
ACQUISITIONS (Fair Values and Useful Lives of Intangible Assets Acquired) (Details) - USD ($) $ in Thousands | Nov. 03, 2021 | Jul. 23, 2021 | Apr. 02, 2021 | Apr. 30, 2019 |
test IO | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired, amount | $ 6,219 | |||
PolSource | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired, amount | $ 15,790 | |||
CORE | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired, amount | $ 8,368 | |||
Emakina | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired, amount | $ 30,488 | |||
Customer relationships | test IO | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in years) | 7 years | |||
Finite-lived intangible assets acquired, amount | $ 2,456 | |||
Customer relationships | PolSource | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in years) | 6 years | |||
Finite-lived intangible assets acquired, amount | $ 14,790 | |||
Customer relationships | CORE | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in years) | 6 years | |||
Finite-lived intangible assets acquired, amount | $ 7,779 | |||
Customer relationships | Emakina | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in years) | 7 years | |||
Finite-lived intangible assets acquired, amount | $ 27,822 | |||
Software | test IO | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in years) | 6 years | |||
Finite-lived intangible assets acquired, amount | $ 3,461 | |||
Trade names | test IO | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in years) | 4 years | |||
Finite-lived intangible assets acquired, amount | $ 302 | |||
Trade names | PolSource | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in years) | 3 years | |||
Finite-lived intangible assets acquired, amount | $ 1,000 | |||
Trade names | CORE | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in years) | 5 years | |||
Finite-lived intangible assets acquired, amount | $ 589 | |||
Trade names | Emakina | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in years) | 3 years | |||
Finite-lived intangible assets acquired, amount | $ 2,666 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET (Goodwill Roll Forward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||||
Balance beginning of period | $ 211,956 | $ 195,043 | ||
Effect of net foreign currency exchange rate changes | (7,101) | 3,695 | ||
Balance end of period | $ 530,723 | 530,723 | 211,956 | |
North America | ||||
Goodwill [Roll Forward] | ||||
Balance beginning of period | 121,132 | 113,426 | ||
Effect of net foreign currency exchange rate changes | (616) | 582 | ||
Balance end of period | 217,594 | 217,594 | 121,132 | |
Europe | ||||
Goodwill [Roll Forward] | ||||
Balance beginning of period | 90,106 | 80,873 | ||
Effect of net foreign currency exchange rate changes | (6,483) | 3,160 | ||
Balance end of period | 312,413 | 312,413 | 90,106 | |
Russia | ||||
Goodwill [Roll Forward] | ||||
Balance beginning of period | 718 | 744 | ||
Effect of net foreign currency exchange rate changes | (2) | (47) | ||
Balance end of period | 716 | 716 | 718 | |
2020 Acquisitions | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | (24) | |||
Acquisition | 12,945 | |||
2020 Acquisitions | North America | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | 0 | |||
Acquisition | 6,042 | |||
2020 Acquisitions | Europe | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | (24) | |||
Acquisition | 6,903 | |||
2020 Acquisitions | Russia | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | 0 | |||
Acquisition | 0 | |||
test IO | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | $ (200) | (226) | ||
test IO | North America | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | 863 | |||
test IO | Europe | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | (1,089) | |||
test IO | Russia | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | 0 | |||
Other 2019 Acquisitions | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | 499 | |||
Other 2019 Acquisitions | North America | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | 219 | |||
Other 2019 Acquisitions | Europe | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | 259 | |||
Other 2019 Acquisitions | Russia | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | $ 21 | |||
Emakina | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 136,614 | |||
Emakina | North America | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 0 | |||
Emakina | Europe | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 136,614 | |||
Emakina | Russia | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 0 | |||
PolSource | ||||
Goodwill [Roll Forward] | ||||
Purchase accounting adjustments | $ 11,800 | |||
Acquisition | 125,339 | |||
PolSource | North America | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 75,203 | |||
PolSource | Europe | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 50,136 | |||
PolSource | Russia | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 0 | |||
CORE | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 23,234 | |||
CORE | North America | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 0 | |||
CORE | Europe | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 23,234 | |||
CORE | Russia | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 0 | |||
Other 2021 Acquisitions | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 40,705 | |||
Other 2021 Acquisitions | North America | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 21,875 | |||
Other 2021 Acquisitions | Europe | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 18,830 | |||
Other 2021 Acquisitions | Russia | ||||
Goodwill [Roll Forward] | ||||
Acquisition | $ 0 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET (Goodwill Accumulated Impairment Losses) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Russia | |||
Goodwill [Line Items] | |||
Accumulated goodwill impairment losses | $ 2,200,000 | $ 2,200,000 | $ 2,200,000 |
North America | |||
Goodwill [Line Items] | |||
Accumulated goodwill impairment losses | 0 | 0 | 0 |
Europe | |||
Goodwill [Line Items] | |||
Accumulated goodwill impairment losses | $ 0 | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET (Intangible Assets Components and Amortization Expense Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 175,335 | $ 109,030 | |
Accumulated amortization | (74,192) | (57,055) | |
Net carrying amount | 101,143 | 51,975 | |
Amortization of purchased intangibles | $ 17,646 | $ 12,340 | $ 9,914 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 10 years | 9 years | |
Gross carrying amount | $ 156,118 | $ 94,169 | |
Accumulated amortization | (64,441) | (49,415) | |
Net carrying amount | 91,677 | 44,754 | |
Amortization of purchased intangibles | $ 15,399 | $ 10,478 | 8,743 |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 6 years | 5 years | |
Gross carrying amount | $ 10,933 | $ 6,495 | |
Accumulated amortization | (6,086) | (5,273) | |
Net carrying amount | 4,847 | 1,222 | |
Amortization of purchased intangibles | $ 842 | $ 495 | 447 |
Software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 6 years | 6 years | |
Gross carrying amount | $ 6,223 | $ 6,309 | |
Accumulated amortization | (2,639) | (1,633) | |
Net carrying amount | 3,584 | 4,676 | |
Amortization of purchased intangibles | $ 1,114 | $ 1,068 | 486 |
Contract royalties | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 8 years | 8 years | |
Gross carrying amount | $ 1,900 | $ 1,900 | |
Accumulated amortization | (910) | (673) | |
Net carrying amount | 990 | 1,227 | |
Amortization of purchased intangibles | $ 238 | $ 238 | 238 |
Assembled workforce | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 3 years | 3 years | |
Gross carrying amount | $ 161 | $ 157 | |
Accumulated amortization | (116) | (61) | |
Net carrying amount | 45 | 96 | |
Amortization of purchased intangibles | $ 53 | $ 61 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS, NET (Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 23,527 | |
2023 | 22,219 | |
2024 | 19,472 | |
2025 | 15,522 | |
2026 | 11,027 | |
Thereafter | 9,376 | |
Net carrying amount | $ 101,143 | $ 51,975 |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets and Liabilities at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Rights to acquire noncontrolling interest in consolidated subsidiaries | $ 6,093 | |
Total assets measured at fair value on a recurring basis | 7,522 | $ 4,955 |
Financial Liabilities: | ||
Contingent consideration | 23,114 | 7,470 |
Total liabilities measured at fair value on a recurring basis | 28,963 | 7,713 |
Foreign exchange contract | ||
Financial Assets: | ||
Foreign exchange derivative assets | 1,429 | 4,955 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | 5,849 | 243 |
Level 1 | ||
Financial Assets: | ||
Rights to acquire noncontrolling interest in consolidated subsidiaries | 0 | |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Financial Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Level 1 | Foreign exchange contract | ||
Financial Assets: | ||
Foreign exchange derivative assets | 0 | 0 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | 0 | 0 |
Level 2 | ||
Financial Assets: | ||
Rights to acquire noncontrolling interest in consolidated subsidiaries | 0 | |
Total assets measured at fair value on a recurring basis | 1,429 | 4,955 |
Financial Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 5,849 | 243 |
Level 2 | Foreign exchange contract | ||
Financial Assets: | ||
Foreign exchange derivative assets | 1,429 | 4,955 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | 5,849 | 243 |
Level 3 | ||
Financial Assets: | ||
Rights to acquire noncontrolling interest in consolidated subsidiaries | 6,093 | |
Total assets measured at fair value on a recurring basis | 6,093 | 0 |
Financial Liabilities: | ||
Contingent consideration | 23,114 | 7,470 |
Total liabilities measured at fair value on a recurring basis | 23,114 | 7,470 |
Level 3 | Foreign exchange contract | ||
Financial Assets: | ||
Foreign exchange derivative assets | 0 | 0 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - Discount rate | Dec. 31, 2021 | Apr. 02, 2021 |
PolSource | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.004 | |
CORE | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.130 | |
Minimum | Other 2021 Acquisitions | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.150 | |
Minimum | 2020 Acquisitions | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.155 | |
Maximum | Other 2021 Acquisitions | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.220 | |
Maximum | 2020 Acquisitions | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.175 |
FAIR VALUE MEASUREMENTS (Reconc
FAIR VALUE MEASUREMENTS (Reconciliation of Acquisition-Related Contractual Contingent Liabilities Using Significant Unobservable Inputs) (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amount | |||
Contingent consideration liabilities, beginning of period | $ 7,470 | $ 10,495 | $ 7,468 |
Payment of contingent consideration for previously acquired businesses | (50,000) | (9,619) | (1,104) |
Effect of net foreign currency exchange rate changes | (387) | (525) | 255 |
Contingent consideration liabilities, end of period | 23,114 | 7,470 | 10,495 |
Interest and Other Income, net | |||
Amount | |||
Changes in fair value of contingent consideration included in Interest and other (loss)/income, net | 8,782 | 1,827 | 1,776 |
Other 2019 Acquisitions | |||
Amount | |||
Acquisition | $ 2,100 | ||
Other 2020 Acquisitions | |||
Amount | |||
Acquisition | $ 5,292 | ||
PolSource | |||
Amount | |||
Acquisition | 35,400 | ||
CORE | |||
Amount | |||
Acquisition | 4,007 | ||
Emakina | |||
Amount | |||
Acquisition | 213 | ||
Other 2021 Acquisitions | |||
Amount | |||
Acquisition | $ 17,629 |
FAIR VALUE MEASUREMENTS (Report
FAIR VALUE MEASUREMENTS (Reported Amounts and Estimated Fair Values of the Financial Assets and Liabilities for Which Disclosure of Fair Value is Required) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Liabilities: | ||
Short-term debt | $ 16,018 | $ 0 |
Nonrecurring | Balance | ||
Financial Assets: | ||
Cash equivalents: | 78,302 | 153,783 |
Restricted cash | 2,722 | 1,390 |
Employee loans | 818 | 794 |
Financial Liabilities: | ||
Short-term debt | 16,018 | |
Other long term debt | 5,234 | |
Nonrecurring | Balance | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 78,302 | 153,783 |
Nonrecurring | Balance | Time Deposits | ||
Financial Assets: | ||
Time deposits included in Short-term investments | 60,007 | |
Nonrecurring | Balance | Revolving credit facility | 2021 Credit Facility | ||
Financial Liabilities: | ||
Borrowings | 25,000 | |
Nonrecurring | Balance | Revolving credit facility | 2017 Credit Facility | ||
Financial Liabilities: | ||
Borrowings | 25,007 | |
Nonrecurring | Estimated Fair Value | ||
Financial Assets: | ||
Cash equivalents: | 78,302 | 153,783 |
Restricted cash | 2,722 | 1,390 |
Employee loans | 818 | 794 |
Financial Liabilities: | ||
Short-term debt | 16,018 | |
Other long term debt | 5,234 | |
Nonrecurring | Estimated Fair Value | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 78,302 | 153,783 |
Nonrecurring | Estimated Fair Value | Time Deposits | ||
Financial Assets: | ||
Time deposits included in Short-term investments | 60,007 | |
Nonrecurring | Estimated Fair Value | Revolving credit facility | 2021 Credit Facility | ||
Financial Liabilities: | ||
Borrowings | 25,000 | |
Nonrecurring | Estimated Fair Value | Revolving credit facility | 2017 Credit Facility | ||
Financial Liabilities: | ||
Borrowings | 25,007 | |
Nonrecurring | Estimated Fair Value | Level 1 | ||
Financial Assets: | ||
Cash equivalents: | 78,302 | 153,783 |
Restricted cash | 2,722 | 1,390 |
Employee loans | 0 | 0 |
Financial Liabilities: | ||
Short-term debt | 0 | |
Other long term debt | 0 | |
Nonrecurring | Estimated Fair Value | Level 1 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 78,302 | 153,783 |
Nonrecurring | Estimated Fair Value | Level 1 | Time Deposits | ||
Financial Assets: | ||
Time deposits included in Short-term investments | 0 | |
Nonrecurring | Estimated Fair Value | Level 1 | Revolving credit facility | 2021 Credit Facility | ||
Financial Liabilities: | ||
Borrowings | 0 | |
Nonrecurring | Estimated Fair Value | Level 1 | Revolving credit facility | 2017 Credit Facility | ||
Financial Liabilities: | ||
Borrowings | 0 | |
Nonrecurring | Estimated Fair Value | Level 2 | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Restricted cash | 0 | 0 |
Employee loans | 0 | 0 |
Financial Liabilities: | ||
Short-term debt | 16,018 | |
Other long term debt | 5,234 | |
Nonrecurring | Estimated Fair Value | Level 2 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Nonrecurring | Estimated Fair Value | Level 2 | Time Deposits | ||
Financial Assets: | ||
Time deposits included in Short-term investments | 60,007 | |
Nonrecurring | Estimated Fair Value | Level 2 | Revolving credit facility | 2021 Credit Facility | ||
Financial Liabilities: | ||
Borrowings | 25,000 | |
Nonrecurring | Estimated Fair Value | Level 2 | Revolving credit facility | 2017 Credit Facility | ||
Financial Liabilities: | ||
Borrowings | 25,007 | |
Nonrecurring | Estimated Fair Value | Level 3 | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Restricted cash | 0 | 0 |
Employee loans | 818 | 794 |
Financial Liabilities: | ||
Short-term debt | 0 | |
Other long term debt | 0 | |
Nonrecurring | Estimated Fair Value | Level 3 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Nonrecurring | Estimated Fair Value | Level 3 | Time Deposits | ||
Financial Assets: | ||
Time deposits included in Short-term investments | 0 | |
Nonrecurring | Estimated Fair Value | Level 3 | Revolving credit facility | 2021 Credit Facility | ||
Financial Liabilities: | ||
Borrowings | $ 0 | |
Nonrecurring | Estimated Fair Value | Level 3 | Revolving credit facility | 2017 Credit Facility | ||
Financial Liabilities: | ||
Borrowings | $ 0 |
FAIR VALUE MEASUREMENTS (Non-Ma
FAIR VALUE MEASUREMENTS (Non-Marketable Securities Without Readily Determinable Fair Values) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other noncurrent assets | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Carrying amount of investments in equity securities | $ 27.5 | $ 25 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Fair Value of Derivative Instruments) (Details) - Foreign exchange contract - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Financial collateral required to be posted | $ 0 | |
Designated as hedging instrument | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 1,429,000 | $ 4,955,000 |
Designated as hedging instrument | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 5,849,000 | $ 243,000 |
PROPERTY AND EQUIPMENT, NET (Co
PROPERTY AND EQUIPMENT, NET (Components of Property and Equipment and Depreciation) (Details) - USD ($) $ in Thousands | Nov. 17, 2021 | Nov. 01, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 402,862 | $ 297,314 | |||
Less accumulated depreciation and amortization | (166,648) | (127,781) | |||
Total | 236,214 | 169,533 | $ 165,259 | ||
Depreciation and amortization expense | 65,500 | 50,500 | 35,400 | ||
Payments to acquire an office building | $ 111,501 | 68,793 | 99,308 | ||
Computer hardware | |||||
Property, Plant and Equipment [Line Items] | |||||
Weighted average useful life (in years) | 3 years | ||||
Property and equipment, gross | $ 167,546 | 117,333 | |||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Weighted average useful life (in years) | 44 years | ||||
Property and equipment, gross | $ 55,388 | 52,007 | |||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Weighted average useful life (in years) | 8 years | ||||
Property and equipment, gross | $ 37,828 | 39,675 | |||
Purchased computer software | |||||
Property, Plant and Equipment [Line Items] | |||||
Weighted average useful life (in years) | 3 years | ||||
Property and equipment, gross | $ 33,649 | 31,993 | |||
Furniture, fixture and other equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Weighted average useful life (in years) | 7 years | ||||
Property and equipment, gross | $ 31,961 | 31,859 | |||
Office equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Weighted average useful life (in years) | 7 years | ||||
Property and equipment, gross | $ 22,881 | 20,971 | |||
Land improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Weighted average useful life (in years) | 18 years | ||||
Property and equipment, gross | $ 2,137 | 2,137 | |||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,339 | 1,339 | |||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 50,133 | 0 | |||
Belarus | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 75,422 | 73,988 | 75,984 | ||
Ukraine | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 78,289 | 30,980 | $ 24,652 | ||
Ukraine | Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Payments to acquire an office building | $ 50,100 | ||||
Minsk, Belarus | Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Payments to acquire an office building | $ 18,900 | ||||
Leased building, before accumulated depreciation | 3,300 | 6,700 | |||
Leased building, accumulated depreciation | 200 | 200 | |||
Depreciation expense | $ 100 | $ 200 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Components of Accrued expenses and other current liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Value added taxes payable | $ 49,924 | $ 34,522 |
Deferred revenue | 39,810 | 17,383 |
Contingent consideration, current (Note 4) | 9,405 | 1,125 |
Other current liabilities and accrued expenses | 42,875 | 26,660 |
Total | $ 142,014 | $ 79,690 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Lessee, Lease, Description [Line Items] | |
Commitments related to operating lease agreements that have not yet commenced | $ 28.3 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 month 6 days |
Lease term of lease agreements that have not yet commenced | 6 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 9 years 4 months 24 days |
Lease term of lease agreements that have not yet commenced | 10 years |
LEASES (Components of Lease Exp
LEASES (Components of Lease Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease, Cost [Line Items] | |||
Total lease cost | $ 77,947 | $ 81,370 | $ 75,340 |
Selling, general and administrative expenses | |||
Lease, Cost [Line Items] | |||
Operating lease cost | 67,144 | 73,740 | 62,740 |
Variable lease cost | 8,555 | 6,461 | 8,730 |
Short-term lease cost | $ 2,248 | $ 1,169 | $ 3,870 |
LEASES (Supplemental Cash Flow
LEASES (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used for operating leases | $ 68,986 | $ 70,012 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 18,590 | 50,949 |
Non-cash net increase due to lease modifications: | ||
Operating lease right-of-use assets | 7,000 | 7,876 |
Operating lease liabilities | $ 7,062 | $ 7,861 |
LEASES (Weighted Average Remain
LEASES (Weighted Average Remaining Lease Term and Discount Rate) (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted average remaining lease term, in years: | ||
Operating leases | 5 years 6 months | 5 years 10 months 24 days |
Weighted average discount rate: | ||
Operating leases | 2.50% | 2.90% |
LEASES (Maturity of Operating L
LEASES (Maturity of Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 53,985 |
2023 | 40,385 |
2024 | 33,589 |
2025 | 24,144 |
2026 | 18,576 |
Thereafter | 34,701 |
Total lease payments | 205,380 |
Less: imputed interest | (12,474) |
Total | $ 192,906 |
DEBT (Details)
DEBT (Details) | Oct. 21, 2021USD ($) | May 24, 2017USD ($) | Dec. 31, 2021USD ($) | Nov. 03, 2021USD ($) | Oct. 21, 2021GBP (£) | Dec. 31, 2020USD ($) | May 24, 2017GBP (£) |
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 1.30% | ||||||
Emakina | |||||||
Debt Instrument [Line Items] | |||||||
Short-term debt | $ 16,000,000 | $ 13,657,000 | |||||
Long-term debt | $ 5,200,000 | $ 8,874,000 | |||||
Weighted average interest rate | 1.60% | ||||||
Revolving credit facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 700,000,000 | $ 300,000,000 | $ 700,000,000 | £ 150,000,000 | $ 300,000,000 | £ 100,000,000 | |
Additional potential borrowing capacity (up to) | $ 1,000,000,000 | $ 400,000,000 | |||||
Outstanding debt | $ 25,000,000 | $ 25,000,000 | |||||
Interest rate | 1.00% | 1.20% | |||||
Available borrowing capacity | $ 675,000,000 | $ 275,000,000 | |||||
Revolving credit facility | Fed Funds Effective Rate Overnight Index Swap Rate | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate spread | 0.50% | 0.50% | |||||
Revolving credit facility | LIBOR | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate spread | 1.00% | 1.00% |
PENSION AND POSTRETIREMENT BE_2
PENSION AND POSTRETIREMENT BENEFITS (Defined Contribution Pension Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan expenses recognized | $ 21.3 | $ 16 | $ 14.8 |
PENSION AND POSTRETIREMENT BE_3
PENSION AND POSTRETIREMENT BENEFITS (Defined Benefit Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan expenses recognized | $ 5.5 | $ 4.3 | $ 1.4 |
Unfunded status of defined benefit plan | (4.1) | (6.4) | |
Accumulated Other Comprehensive (Loss)/ Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain (loss) | 3.8 | (1.3) | |
Other noncurrent assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded status of defined benefit plan | 1.2 | 0 | |
Accrued compensation and benefits expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded status of defined benefit plan | (0.6) | (1) | |
Other noncurrent liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded status of defined benefit plan | $ (3.5) | $ (5.4) |
REVENUES (Disaggregation of Rev
REVENUES (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 3,758,144 | $ 2,659,478 | $ 2,293,798 |
Revenues from performance obligations satisfied in previous period | 18,700 | 5,000 | 7,800 |
Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,747,565 | 2,650,991 | 2,291,245 |
Transferred at a point of time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 10,579 | 8,487 | 2,553 |
Time-and-material | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,209,747 | 2,291,004 | 1,990,653 |
Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 529,396 | 352,012 | 294,650 |
Licensing | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 15,552 | 11,139 | 5,081 |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,449 | 5,323 | 3,414 |
Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 848,370 | 555,235 | 500,872 |
Travel & Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 741,128 | 458,789 | 439,358 |
Business Information & Media | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 666,941 | 560,680 | 420,923 |
Software & Hi-Tech | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 664,597 | 496,813 | 433,398 |
Life Sciences & Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 391,309 | 296,313 | 248,452 |
Emerging Verticals | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 445,799 | 291,648 | 250,795 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,242,248 | 1,601,820 | 1,380,944 |
North America | Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,232,308 | 1,595,786 | 1,379,256 |
North America | Transferred at a point of time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 9,940 | 6,034 | 1,688 |
North America | Time-and-material | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,981,696 | 1,440,635 | 1,247,979 |
North America | Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 244,249 | 151,769 | 127,926 |
North America | Licensing | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 14,540 | 8,027 | 3,626 |
North America | Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,763 | 1,389 | 1,413 |
North America | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 361,611 | 199,594 | 184,469 |
North America | Travel & Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 359,306 | 221,977 | 198,264 |
North America | Business Information & Media | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 389,613 | 334,063 | 262,448 |
North America | Software & Hi-Tech | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 559,707 | 419,895 | 354,023 |
North America | Life Sciences & Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 340,706 | 260,518 | 224,925 |
North America | Emerging Verticals | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 231,305 | 165,773 | 156,815 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,350,484 | 947,305 | 820,717 |
Europe | Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,349,956 | 946,379 | 819,913 |
Europe | Transferred at a point of time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 528 | 926 | 804 |
Europe | Time-and-material | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,145,606 | 790,203 | 688,605 |
Europe | Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 202,436 | 151,718 | 128,977 |
Europe | Licensing | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 793 | 1,526 | 1,230 |
Europe | Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,649 | 3,858 | 1,905 |
Europe | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 372,394 | 278,355 | 244,284 |
Europe | Travel & Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 354,041 | 220,448 | 229,523 |
Europe | Business Information & Media | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 275,502 | 224,922 | 157,844 |
Europe | Software & Hi-Tech | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 102,270 | 73,288 | 77,377 |
Europe | Life Sciences & Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 49,900 | 35,347 | 23,444 |
Europe | Emerging Verticals | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 196,377 | 114,945 | 88,245 |
Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 165,412 | 110,353 | 92,137 |
Russia | Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 165,301 | 108,826 | 92,076 |
Russia | Transferred at a point of time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 111 | 1,527 | 61 |
Russia | Time-and-material | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 82,445 | 60,166 | 54,069 |
Russia | Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 82,711 | 48,525 | 37,747 |
Russia | Licensing | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 219 | 1,586 | 225 |
Russia | Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 37 | 76 | 96 |
Russia | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 114,365 | 77,286 | 72,119 |
Russia | Travel & Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 27,781 | 16,364 | 11,571 |
Russia | Business Information & Media | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,826 | 1,695 | 631 |
Russia | Software & Hi-Tech | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,620 | 3,630 | 1,998 |
Russia | Life Sciences & Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 703 | 448 | 83 |
Russia | Emerging Verticals | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 18,117 | 10,930 | 5,735 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,226,830 | 1,595,136 | 1,390,015 |
Americas | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,145,163 | 1,546,093 | 1,344,040 |
Americas | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 77,351 | 45,553 | 45,859 |
Americas | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,316 | 3,490 | 116 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,259,717 | 879,842 | 746,866 |
EMEA | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 87,121 | 45,733 | 27,042 |
EMEA | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,172,267 | 834,033 | 719,548 |
EMEA | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 329 | 76 | 276 |
CEE | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 168,038 | 114,702 | 100,471 |
CEE | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 6,740 | 7,817 | 8,583 |
CEE | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 531 | 98 | 143 |
CEE | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 160,767 | 106,787 | 91,745 |
APAC | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 103,559 | 69,798 | 56,446 |
APAC | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,224 | 2,177 | 1,279 |
APAC | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 100,335 | 67,621 | 55,167 |
APAC | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
REVENUES (Timing of Revenue Rec
REVENUES (Timing of Revenue Recognition) (Details) - Fixed-price $ in Thousands | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future related to performance obligations | $ 8,594 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future related to performance obligations | $ 8,214 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future related to performance obligations | $ 380 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future related to performance obligations | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future related to performance obligations | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
REVENUES (Contract Assets and L
REVENUES (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Revenues recognized | $ 16,200 | $ 8,600 |
Trade receivables and contract assets | ||
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Contract assets | 13,798 | 7,700 |
Accrued expenses and other current liabilities | ||
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Contract liabilities | 39,810 | 17,383 |
Other noncurrent liabilities | ||
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Contract liabilities | $ 84 | $ 94 |
STOCK-BASED COMPENSATION (Compo
STOCK-BASED COMPENSATION (Components of Stock-Based Compensation Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 111,655 | $ 75,238 | $ 72,036 |
Cost of revenues (exclusive of depreciation and amortization) | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 51,580 | 32,785 | 37,580 |
Selling, general and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 60,075 | $ 42,453 | $ 34,456 |
STOCK-BASED COMPENSATION (Equit
STOCK-BASED COMPENSATION (Equity Plans) (Details) - shares | Jun. 08, 2021 | Jun. 11, 2015 | Jan. 11, 2012 | Dec. 31, 2021 |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance (in shares) | 900,000 | |||
Maximum salary contribution, percent | 10.00% | |||
Offering period | 6 months | |||
ESPP purchase price of common stock, percent of market price | 85.00% | |||
2015 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for issuance (in shares) | 4,266,000 | |||
Expiration period | 10 years | |||
2012 Directors Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for issuance (in shares) | 522,000 | |||
Expiration period | 10 years | |||
Number of shares authorized for issuance (in shares) | 600,000 | |||
2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options | |||
Beginning balance (in shares) | 2,772 | 3,323 | 4,083 |
Options granted (in shares) | 94 | 158 | 132 |
Options modified (in shares) | 0 | 18 | |
Options exercised (in shares) | (536) | (700) | (899) |
Options forfeited/cancelled (in shares) | (12) | (9) | (11) |
Ending balance (in shares) | 2,318 | 2,772 | 3,323 |
Options vested and exercisable at period end (in shares) | 2,018 | ||
Options expected to vest at period end (in shares) | 284 | ||
Weighted Average Exercise Price | |||
Options outstanding at beginning of period (in dollars per share) | $ 61.71 | $ 50.85 | $ 44.54 |
Options granted (in dollars per share) | 410.03 | 187.76 | 169.13 |
Options modified (in dollars per share) | 0 | 163.55 | |
Options exercised (in dollars per share) | 49.13 | 37.79 | 41.21 |
Options forfeited/cancelled (in dollars per share) | 248.74 | 119.30 | 97.83 |
Options outstanding at end of period (in dollars per share) | 77.79 | $ 61.71 | $ 50.85 |
Options vested and exercisable at period end (in dollars per share) | 53.27 | ||
Options expected to vest at period end (in dollars per share) | $ 240.03 | ||
Aggregate Intrinsic Value | |||
Options outstanding, beginning of period | $ 822,152 | $ 536,015 | $ 291,846 |
Options outstanding, end of period | 1,369,132 | $ 822,152 | $ 536,015 |
Options vested and exercisable as of December 31, 2021 | 1,241,261 | ||
Options expected to vest as of December 31, 2021 | $ 121,544 | ||
Weighted Average Remaining Contractual Term (in years) | |||
Options outstanding as of December 31, 2021 | 3 years 8 months 12 days | ||
Options vested and exercisable as of December 31, 2021 | 3 years | ||
Options expected to vest as of December 31, 2021 | 8 years 1 month 6 days |
STOCK-BASED COMPENSATION (Black
STOCK-BASED COMPENSATION (Black Scholes Valuation Model Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 35.30% | 36.90% | 33.50% |
Expected term (in years) | 6 years 2 months 26 days | 6 years 3 months | 6 years 3 months |
Risk-free interest rate | 1.20% | 0.50% | 2.30% |
Expected dividends | 0.00% | 0.00% | 0.00% |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 23.10% | ||
Expected term (in years) | 6 months | ||
Risk-free interest rate | 0.10% | ||
Expected dividends | 0.00% |
STOCK-BASED COMPENSATION (Sto_2
STOCK-BASED COMPENSATION (Stock Options Additional Information) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value (in dollars per share) | $ 149.26 | $ 68.53 | $ 63.12 |
Total intrinsic value of options exercised | $ 251.9 | $ 151.3 | $ 121.1 |
Vesting period (in years) | 4 years | ||
Unrecognized compensation cost net of estimated forfeitures | $ 18.7 | ||
Unrecognized compensation cost, period for recognition | 2 years 8 months 12 days |
STOCK-BASED COMPENSATION (Restr
STOCK-BASED COMPENSATION (Restricted Stock and Restricted Stock Units Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Service period | Equity classified award | Equity-settled award | Restricted stock | |||
Number of Shares | |||
Unvested awards outstanding at period start (in shares) | 9 | 10 | 1 |
Awards granted (in shares) | 0 | 0 | 9 |
Awards modified (in shares) | 0 | 0 | |
Awards vested (in shares) | 0 | (1) | 0 |
Awards forfeited/cancelled (in shares) | 0 | 0 | 0 |
Unvested awards outstanding at period end (in shares) | 9 | 9 | 10 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested awards outstanding at period start (in dollars per share) | $ 167.18 | $ 162.96 | $ 63.10 |
Awards granted (in dollars per share) | 0 | 0 | 167.18 |
Awards modified (in dollars per share) | 0 | 0 | |
Awards vested (in dollars per share) | 0 | 63.10 | 0 |
Awards forfeited/cancelled (in dollars per share) | 0 | 0 | 0 |
Unvested awards outstanding at period end (in dollars per share) | $ 167.18 | $ 167.18 | $ 162.96 |
Service period | Equity classified award | Equity-settled award | Restricted stock units | |||
Number of Shares | |||
Unvested awards outstanding at period start (in shares) | 686 | 759 | 798 |
Awards granted (in shares) | 238 | 294 | 284 |
Awards modified (in shares) | 1 | (7) | |
Awards vested (in shares) | (308) | (317) | (287) |
Awards forfeited/cancelled (in shares) | (40) | (49) | (43) |
Unvested awards outstanding at period end (in shares) | 576 | 686 | 759 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested awards outstanding at period start (in dollars per share) | $ 162.15 | $ 122.48 | $ 92.13 |
Awards granted (in dollars per share) | 429.41 | 204.57 | 170.29 |
Awards modified (in dollars per share) | 122.55 | 170.74 | |
Awards vested (in dollars per share) | 139.83 | 108.87 | 87.79 |
Awards forfeited/cancelled (in dollars per share) | 264.48 | 148.11 | 114.45 |
Unvested awards outstanding at period end (in dollars per share) | $ 277.38 | $ 162.15 | $ 122.48 |
Service period | Liability classified award | Cash-settled award | Restricted stock units | |||
Number of Shares | |||
Unvested awards outstanding at period start (in shares) | 175 | 242 | 303 |
Awards granted (in shares) | 27 | 60 | 56 |
Awards modified (in shares) | 0 | (1) | |
Awards vested (in shares) | (86) | (122) | (111) |
Awards forfeited/cancelled (in shares) | (4) | (5) | (7) |
Unvested awards outstanding at period end (in shares) | 112 | 175 | 242 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested awards outstanding at period start (in dollars per share) | $ 141.16 | $ 105.40 | $ 83.99 |
Awards granted (in dollars per share) | 394.24 | 181.77 | 170.13 |
Awards modified (in dollars per share) | 0 | 168.36 | |
Awards vested (in dollars per share) | 118.05 | 91.39 | 80.51 |
Awards forfeited/cancelled (in dollars per share) | 210.26 | 113.94 | 94.77 |
Unvested awards outstanding at period end (in dollars per share) | $ 217.28 | $ 141.16 | $ 105.40 |
Performance targets | Equity classified award | Equity-settled award | Restricted stock | |||
Number of Shares | |||
Unvested awards outstanding at period start (in shares) | 9 | 9 | 0 |
Awards granted (in shares) | 0 | 0 | 9 |
Awards modified (in shares) | 0 | ||
Awards vested (in shares) | 0 | 0 | |
Awards forfeited/cancelled (in shares) | 0 | ||
Unvested awards outstanding at period end (in shares) | 9 | 9 | 9 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested awards outstanding at period start (in dollars per share) | $ 165.87 | $ 165.87 | $ 0 |
Awards granted (in dollars per share) | 0 | 0 | 165.87 |
Awards modified (in dollars per share) | 0 | ||
Awards vested (in dollars per share) | 0 | 0 | |
Awards forfeited/cancelled (in dollars per share) | 0 | ||
Unvested awards outstanding at period end (in dollars per share) | $ 165.87 | $ 165.87 | $ 165.87 |
Performance targets | Equity classified award | Equity-settled award | Restricted stock units | |||
Number of Shares | |||
Unvested awards outstanding at period start (in shares) | 21 | 0 | 30 |
Awards granted (in shares) | 8 | 31 | 0 |
Awards modified (in shares) | (30) | ||
Awards vested (in shares) | (4) | (10) | |
Awards forfeited/cancelled (in shares) | (2) | ||
Unvested awards outstanding at period end (in shares) | 23 | 21 | 0 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested awards outstanding at period start (in dollars per share) | $ 227.16 | $ 0 | $ 121.75 |
Awards granted (in dollars per share) | 574.98 | 210.44 | 0 |
Awards modified (in dollars per share) | 121.75 | ||
Awards vested (in dollars per share) | 177.81 | 177.81 | |
Awards forfeited/cancelled (in dollars per share) | 334.78 | ||
Unvested awards outstanding at period end (in dollars per share) | $ 339.69 | $ 227.16 | $ 0 |
STOCK-BASED COMPENSATION (Fair
STOCK-BASED COMPENSATION (Fair Value of Restricted Stock and Restricted Stock Units Vested) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Service period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 163,474 | $ 82,157 | $ 66,633 |
Performance targets | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 2,215 | 3,282 | 0 |
Equity classified award | Service period | Equity-settled award | Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 0 | 101 | 73 |
Equity classified award | Service period | Equity-settled award | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 129,527 | 60,042 | 48,111 |
Equity classified award | Performance targets | Equity-settled award | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 2,215 | 3,282 | 0 |
Liability classified award | Service period | Cash-settled award | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 33,947 | $ 22,014 | $ 18,449 |
STOCK-BASED COMPENSATION (Res_2
STOCK-BASED COMPENSATION (Restricted Stock and Restricted Stock Units Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity classified award | Service period | Equity-settled award | Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 300 | |
Unrecognized compensation cost, period for recognition | 8 months 12 days | |
Equity classified award | Service period | Equity-settled award | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 112,000 | |
Unrecognized compensation cost, period for recognition | 2 years 8 months 12 days | |
Equity classified award | Performance targets | Equity-settled award | Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 600 | |
Unrecognized compensation cost, period for recognition | 1 year 8 months 12 days | |
Equity classified award | Performance targets | Equity-settled award | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 5,000 | |
Unrecognized compensation cost, period for recognition | 3 years 1 month 6 days | |
Liability classified award | Service period | Cash-settled award | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 38,600 | |
Unrecognized compensation cost, period for recognition | 2 years 3 months 18 days | |
Liability classified award | Service period | Cash-settled award | Restricted stock units | Accrued compensation and benefits expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Liability associated with stock-based awards current | $ 31,500 | $ 26,800 |
STOCK-BASED COMPENSATION (Emplo
STOCK-BASED COMPENSATION (Employee Stock Purchase Plan Additional Information) (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share price (in dollars per share) | $ 659.65 |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average grant-date fair value (in dollars per share) | $ 141.86 |
Unrecognized compensation cost | $ | $ 2.3 |
Unrecognized compensation cost, period for recognition | 3 months 29 days |
STOCK-BASED COMPENSATION (Commi
STOCK-BASED COMPENSATION (Commitments for Future Equity Awards Additional Information) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 111,655 | $ 75,238 | $ 72,036 |
Emakina | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity granted | 43,600 | ||
Stock-based compensation expense | $ 5,500 | $ 200 | $ 0 |
Restricted stock units | Emakina | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 8 | ||
Phantom share units | Emakina | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 7 | ||
Restricted Stock, Service-Based Equity-Classified RSUs And Performance-Based Equity-Classified RSUs | Emakina | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity granted | $ 2,700 |
INCOME TAXES (Income before Pro
INCOME TAXES (Income before Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income before provision for income taxes: | |||
United States | $ 128,498 | $ 100,411 | $ 65,370 |
Foreign | 404,894 | 278,068 | 234,156 |
Income before provision for income taxes | $ 533,392 | $ 378,479 | $ 299,526 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Federal | $ 22,742 | $ 19,249 | $ 16,943 |
State | 6,735 | 7,022 | 3,610 |
Foreign | 69,162 | 45,042 | 25,680 |
Deferred | |||
Federal | (40,421) | (16,235) | (9,425) |
State | (2,576) | (1,682) | (358) |
Foreign | (3,902) | (2,077) | 2,019 |
Total | $ 51,740 | $ 51,319 | $ 38,469 |
INCOME TAXES (U.S. Tax Act Effe
INCOME TAXES (U.S. Tax Act Effect) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2017 | |
Effect of Tax Cuts and Jobs Act [Abstract] | ||
Transition tax provisional charge | $ 37.2 | |
Accumulated undistributed foreign earnings indefinitely reinvested | $ 1,239.1 | |
U.S. Tax Cuts and Jobs Act | ||
Effect of Tax Cuts and Jobs Act [Abstract] | ||
Income tax rate on foreign cash and certain other net current assets | 15.50% | |
Income tax rate on remaining earnings | 8.00% |
INCOME TAXES (Effective Tax Rat
INCOME TAXES (Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Provision for income taxes at federal statutory rate | $ 112,016 | $ 79,481 | $ 62,898 |
Increase/(decrease) in taxes resulting from: | |||
GILTI and BEAT U.S. taxes | 229 | 191 | (926) |
Excess tax benefits relating to stock-based compensation | (71,628) | (36,646) | (28,385) |
Foreign tax expense and tax rate differential | (206) | (387) | (1,402) |
Effect of permanent differences | 4,756 | 3,507 | 3,264 |
State taxes, net of federal benefit | 9,192 | 5,323 | 2,971 |
Stock-based compensation expense | 1,102 | 44 | 571 |
Tax credits | (4,100) | 0 | 0 |
Other | 379 | (194) | (522) |
Total | $ 51,740 | $ 51,319 | $ 38,469 |
Effective tax rate | 9.70% | 13.60% | 12.80% |
Earliest Tax Year | |||
Increase/(decrease) in taxes resulting from: | |||
Tax credits | $ (2,700) | ||
ASU 2016-09 | |||
Increase/(decrease) in taxes resulting from: | |||
Excess tax benefit | $ 71,600 | $ 36,600 | $ 28,400 |
INCOME TAXES (Deferred Income T
INCOME TAXES (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred tax assets: | ||
Property and equipment | $ 10,561 | $ 8,164 |
Intangible assets | 2,220 | 827 |
Accrued expenses | 90,754 | 50,639 |
Net operating loss carryforward | 4,988 | 6,089 |
Deferred revenue | 4,551 | 9,796 |
Stock-based compensation | 31,959 | 30,112 |
Operating lease liabilities | 52,806 | 51,519 |
Foreign tax credit | 7,589 | 2,168 |
Foreign currency exchange | 11,750 | 4,890 |
Other assets | 2,235 | 1,252 |
Deferred tax assets | 219,413 | 165,456 |
Less: valuation allowance | (4,538) | (5,485) |
Total deferred tax assets | 214,875 | 159,971 |
Deferred tax liabilities: | ||
Property and equipment | 1,095 | 3,818 |
Intangible assets | 26,124 | 12,018 |
Operating lease right-of-use assets | 51,871 | 50,149 |
Accrued revenue and expenses | 2,953 | 991 |
U.S. taxation of foreign subsidiaries | 3,770 | 1,608 |
Foreign currency exchange | 239 | 1,153 |
Other liabilities | 3,210 | 1,095 |
Total deferred tax liabilities | 89,262 | 70,832 |
Net deferred tax assets | 125,613 | 89,139 |
Other noncurrent liabilities | ||
Deferred tax liabilities: | ||
Deferred income tax liabilities, net | 18,300 | 3,300 |
Business acquisitions | ||
Deferred tax assets: | ||
Stock-based compensation | $ 5,400 | $ 6,100 |
Business acquisitions | Minimum | ||
Deferred tax liabilities: | ||
Amortization period of stock-based compensation for tax | 10 years | |
Business acquisitions | Maximum | ||
Deferred tax liabilities: | ||
Amortization period of stock-based compensation for tax | 15 years |
INCOME TAXES (Operating Loss Ca
INCOME TAXES (Operating Loss Carryforwards) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Domestic | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | $ 2.8 |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 18.9 |
Operating loss carryforward subject to valuation allowance | 17.5 |
Foreign | No expiry | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 9.7 |
Foreign | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 1.2 |
Foreign | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 1.3 |
Foreign | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 2 |
Foreign | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 3 |
Foreign | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | $ 1.7 |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Significant new tax position resulted in increase in current year | $ 5,300,000 | $ 800,000 | $ 0 |
Increase in unrecognized tax benefit resulting from prior year | 900,000 | ||
Significant new tax position resulted in increase in prior year | 1,300,000 | 500,000 | $ 0 |
Tax positions for which significant change in unrecognized tax benefits is reasonably possible | 0 | ||
Income Taxes Payable, Noncurrent | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefit | $ 8,200,000 | $ 3,300,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator for basic and diluted earnings per share: | |||
Net income | $ 481,652 | $ 327,160 | $ 261,057 |
Numerator for basic | 481,652 | 327,160 | 261,057 |
Numerator for diluted | $ 481,652 | $ 327,160 | $ 261,057 |
Denominator: | |||
Weighted average common shares for basic earnings per share (in shares) | 56,511 | 55,727 | 54,719 |
Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP (in shares) | 2,553 | 2,719 | 2,949 |
Weighted average common shares for diluted earnings per share | 59,064 | 58,446 | 57,668 |
Net Income per share: | |||
Basic (in dollars per share) | $ 8.52 | $ 5.87 | $ 4.77 |
Diluted (in dollars per share) | $ 8.15 | $ 5.60 | $ 4.53 |
Anti-dilutive stock excluded from the calculation (in shares) | 32 | 40 | 120 |
SEGMENT INFORMATION (Revenues f
SEGMENT INFORMATION (Revenues from External Customers and Operating Profit Before Unallocated Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 3,758,144 | $ 2,659,478 | $ 2,293,798 |
Total segment operating profit | 542,316 | 379,324 | 302,850 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | 729,072 | 503,909 | 425,967 |
North America | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,242,248 | 1,601,820 | 1,380,944 |
North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | 462,798 | 345,196 | 293,757 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,350,484 | 947,305 | 820,717 |
Europe | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | 233,727 | 152,902 | 114,863 |
Russia | |||
Segment Reporting Information [Line Items] | |||
Revenues | 165,412 | 110,353 | 92,137 |
Russia | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | $ 32,547 | $ 5,811 | $ 17,347 |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation of Segment Operating Profit to Consolidated Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segment operating profit | $ 542,316 | $ 379,324 | $ 302,850 |
Stock-based compensation expense | (111,655) | (75,238) | (72,036) |
Amortization of purchased intangibles | (17,646) | (12,340) | (9,914) |
Interest and other (loss)/income, net | (1,727) | 3,822 | 8,725 |
Foreign exchange loss | (7,197) | (4,667) | (12,049) |
Income before provision for income taxes | 533,392 | 378,479 | 299,526 |
Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segment operating profit | 729,072 | 503,909 | 425,967 |
Unallocated Amounts | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Stock-based compensation expense | (111,655) | (75,238) | (72,036) |
Amortization of purchased intangibles | (17,646) | (12,340) | (9,914) |
Other acquisition-related expenses | (6,397) | (1,868) | (3,774) |
Other unallocated costs | $ (51,058) | $ (35,139) | $ (37,393) |
SEGMENT INFORMATION (Physical L
SEGMENT INFORMATION (Physical Locations and Values of Long-Lived Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 236,214 | $ 169,533 | $ 165,259 |
Ukraine | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 78,289 | 30,980 | 24,652 |
Belarus | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 75,422 | 73,988 | 75,984 |
Russia | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 16,611 | 15,036 | 17,980 |
United States | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 14,843 | 15,718 | 15,637 |
India | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 9,459 | 7,079 | 7,443 |
Poland | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 8,240 | 5,434 | 5,029 |
Hungary | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 5,339 | 5,365 | 5,201 |
Other | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 28,011 | $ 15,933 | $ 13,333 |
SEGMENT INFORMATION (Revenues b
SEGMENT INFORMATION (Revenues by Customer Location) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 3,758,144 | $ 2,659,478 | $ 2,293,798 |
United States | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 2,125,301 | 1,523,731 | 1,321,662 |
United Kingdom | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 474,941 | 331,217 | 290,039 |
Switzerland | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 271,208 | 203,391 | 152,710 |
Russia | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 155,186 | 104,846 | 89,941 |
Netherlands | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 154,816 | 114,678 | 88,488 |
Germany | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 113,727 | 84,902 | 82,441 |
Canada | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 96,646 | 68,416 | 68,304 |
Other locations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 366,319 | $ 228,297 | $ 200,213 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 1,983,018 | $ 1,596,145 | $ 1,262,596 |
Balance, end of period | 2,495,837 | 1,983,018 | 1,596,145 |
Foreign currency translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (28,168) | (32,666) | (38,961) |
Foreign currency translation | (29,323) | 5,802 | 7,912 |
Income tax benefit/(expense) | 4,744 | (1,304) | (1,617) |
Other comprehensive (loss)/income | (24,579) | 4,498 | 6,295 |
Balance, end of period | (52,747) | (28,168) | (32,666) |
Cash flow hedging instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 3,642 | 1,292 | (2,553) |
Unrealized (loss)/gain in fair value | (13,781) | 8,076 | 2,933 |
Net gain/(loss) reclassified into Cost of revenues (exclusive of depreciation and amortization) | 4,649 | (5,031) | 2,028 |
Income tax benefit/(expense) | 2,073 | (695) | (1,116) |
Other comprehensive (loss)/income | (7,059) | 2,350 | 3,845 |
Balance, end of period | (3,417) | 3,642 | 1,292 |
Defined benefit plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (986) | 0 | 0 |
Income tax benefit/(expense) | (862) | 289 | 0 |
Other comprehensive (loss)/income | 2,943 | (986) | 0 |
Balance, end of period | 1,957 | (986) | 0 |
Net actuarial gain/(loss) and prior service credit/(cost) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Net gain/(loss) reclassified into Cost of revenues (exclusive of depreciation and amortization) | 3,805 | (1,275) | 0 |
Accumulated other comprehensive loss | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (25,512) | (31,374) | (41,514) |
Balance, end of period | $ (54,207) | $ (25,512) | $ (31,374) |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts for trade receivables and contract assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 4,886 | $ 3,210 | $ 1,557 |
Additions | 3,888 | 3,282 | 2,072 |
Deductions/ Write offs | (3,253) | (1,606) | (419) |
Balance at End of Year | 5,521 | 4,886 | 3,210 |
Valuation allowance on deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 5,485 | 3,877 | 3,189 |
Additions | 0 | 1,608 | 688 |
Deductions/ Write offs | (948) | 0 | 0 |
Balance at End of Year | $ 4,537 | $ 5,485 | $ 3,877 |
Subsequent Events (Details)
Subsequent Events (Details) - Ukraine - Subsequent Event percent in Thousands | Feb. 24, 2022percent |
Subsequent Event [Line Items] | |
Entity number of employees | 14 |
Delivery | |
Subsequent Event [Line Items] | |
Entity number of employees | 13 |