Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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, Street Name | 41 University Drive | |
Entity Address, Suite No. | 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 $0.001 per share | |
Trading Symbol | EPAM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 57,151,133 | |
Entity Central Index Key | 0001352010 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 1,276,461 | $ 1,446,625 |
Trade receivables and contract assets, net of allowance of $14,229 and $5,521, respectively | 901,260 | 768,928 |
Prepaid and other current assets | 89,032 | 53,927 |
Total current assets | 2,266,753 | 2,269,480 |
Property and equipment, net | 219,639 | 236,214 |
Operating lease right-of-use assets, net | 175,514 | 184,841 |
Intangible assets, net | 97,569 | 101,143 |
Goodwill | 534,136 | 530,723 |
Deferred tax assets | 161,302 | 143,928 |
Other noncurrent assets | 52,657 | 56,898 |
Total assets | 3,507,570 | 3,523,227 |
Current liabilities | ||
Accounts payable | 19,406 | 24,847 |
Accrued compensation and benefits expenses | 408,789 | 502,997 |
Accrued expenses and other current liabilities | 177,872 | 142,014 |
Short-term debt | 9,900 | 16,018 |
Income taxes payable, current | 20,264 | 27,440 |
Operating lease liabilities, current | 47,021 | 50,104 |
Total current liabilities | 683,252 | 763,420 |
Long-term debt | 30,550 | 30,234 |
Income taxes payable, noncurrent | 44,103 | 42,454 |
Operating lease liabilities, noncurrent | 140,814 | 142,802 |
Other noncurrent liabilities | 55,095 | 48,480 |
Total liabilities | 953,814 | 1,027,390 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value; 160,000 shares authorized; 57,153 and 56,868 shares issued, 57,133 and 56,849 shares outstanding at March 31, 2022 and December 31, 2021, respectively | 57 | 57 |
Additional paid-in capital | 719,122 | 711,912 |
Retained earnings | 1,919,251 | 1,829,532 |
Treasury stock | (177) | (177) |
Accumulated other comprehensive loss | (86,150) | (54,207) |
Total EPAM Systems Inc. stockholders’ equity | 2,552,103 | 2,487,117 |
Noncontrolling interest in consolidated subsidiaries | 1,653 | 8,720 |
Total stockholders’ equity | 2,553,756 | 2,495,837 |
Total liabilities and stockholders’ equity | $ 3,507,570 | $ 3,523,227 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Trade receivables and contract assets allowance | $ 14,229 | $ 5,521 |
Stockholders' equity | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 57,153,000 | 56,868,000 |
Common stock, shares outstanding (in shares) | 57,133,000 | 56,849,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenues | $ 1,171,614 | $ 780,775 |
Operating expenses: | ||
Cost of revenues (exclusive of depreciation and amortization) | 780,836 | 519,328 |
Selling, general and administrative expenses | 237,277 | 136,389 |
Depreciation and amortization expense | 24,259 | 17,807 |
Income from operations | 129,242 | 107,251 |
Interest and other (loss)/income, net | (165) | 5,374 |
Foreign exchange (loss)/gain | (22,785) | 2,299 |
Income before provision for income taxes | 106,292 | 114,924 |
Provision for income taxes | 16,573 | 5,878 |
Net income | $ 89,719 | $ 109,046 |
Net income per share: | ||
Basic (in usd per share) | $ 1.58 | $ 1.94 |
Diluted (in usd per share) | $ 1.52 | $ 1.86 |
Shares used in calculation of net income per share: | ||
Basic (in shares) | 56,915 | 56,170 |
Diluted (in shares) | 58,941 | 58,778 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 89,719 | $ 109,046 |
Other comprehensive loss: | ||
Change in foreign currency translation adjustments, net of tax | (30,552) | (10,531) |
Change in unrealized loss on hedging instruments, net of tax | (1,391) | (4,081) |
Defined benefit pension plans - actuarial loss, net of tax | 0 | (626) |
Other comprehensive loss | (31,943) | (15,238) |
Comprehensive income | $ 57,776 | $ 93,808 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Restricted Stock Units | Common Stock | Common StockRestricted Stock Units | Additional Paid-in Capital | Additional Paid-in CapitalRestricted Stock Units | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Non-controlling interest in consolidated subsidiaries |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 56,108 | 20 | ||||||||
Balance, beginning of period at Dec. 31, 2020 | $ 1,983,018 | $ 56 | $ 660,771 | $ 1,347,880 | $ (177) | $ (25,512) | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Restricted stock units vested (in shares) | 248 | |||||||||
Restricted stock units withheld for employee taxes (in shares) | (84) | |||||||||
Units withheld for employee taxes | $ (31,935) | $ (31,935) | ||||||||
Stock-based compensation expense | 14,624 | 14,624 | ||||||||
Proceeds from stock options exercises (in shares) | 109 | |||||||||
Exercise of stock options | 4,424 | $ 0 | 4,424 | |||||||
Other comprehensive loss | (15,238) | (15,238) | ||||||||
Net income | 109,046 | 109,046 | ||||||||
Balance, end of period (in shares) at Mar. 31, 2021 | 56,381 | 20 | ||||||||
Balance, end of period at Mar. 31, 2021 | $ 2,063,939 | $ 56 | 647,884 | 1,456,926 | $ (177) | (40,750) | 0 | |||
Balance, beginning of period (in shares) at Dec. 31, 2021 | 56,849 | 56,849 | 20 | |||||||
Balance, beginning of period at Dec. 31, 2021 | $ 2,495,837 | $ 57 | 711,912 | 1,829,532 | $ (177) | (54,207) | 8,720 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Restricted stock units vested (in shares) | 193 | |||||||||
Restricted stock units withheld for employee taxes (in shares) | (67) | |||||||||
Units withheld for employee taxes | $ (18,376) | $ (18,376) | ||||||||
Stock-based compensation expense | 22,702 | 22,702 | ||||||||
Proceeds from stock options exercises (in shares) | 158 | |||||||||
Exercise of stock options | 2,884 | 2,884 | ||||||||
Other comprehensive loss | (31,943) | (31,943) | ||||||||
Purchase of noncontrolling interest | (7,067) | (7,067) | ||||||||
Net income | $ 89,719 | 89,719 | ||||||||
Balance, end of period (in shares) at Mar. 31, 2022 | 57,133 | 57,133 | 20 | |||||||
Balance, end of period at Mar. 31, 2022 | $ 2,553,756 | $ 57 | $ 719,122 | $ 1,919,251 | $ (177) | $ (86,150) | $ 1,653 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 89,719 | $ 109,046 |
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | ||
Depreciation and amortization expense | 24,259 | 17,807 |
Operating lease right-of-use assets amortization expense | 14,787 | 15,676 |
Bad debt expense | 8,675 | 2,925 |
Deferred taxes | (10,830) | 6,692 |
Stock-based compensation expense | 7,112 | 24,553 |
Unrealized loss on derivative | 41,369 | 0 |
Impairment charges | 20,401 | 0 |
Other | 3,361 | (4,926) |
Changes in assets and liabilities: | ||
Trade receivables and contract assets | (144,783) | (89,395) |
Prepaid and other assets | (9,515) | (8,581) |
Accounts payable | (4,633) | (3,166) |
Accrued expenses and other liabilities | (74,929) | (15,830) |
Operating lease liabilities | (14,171) | (16,065) |
Income taxes payable | (2,670) | (25,909) |
Net cash (used in)/provided by operating activities | (51,848) | 12,827 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (23,274) | (11,186) |
Proceeds from short-term investments | 0 | 60,000 |
Acquisition of business, net of cash acquired | (8,207) | 0 |
Purchases of non-marketable securities | 0 | (1,044) |
Other investing activities, net | (3,082) | 691 |
Net cash (used in)/provided by investing activities | (34,563) | 48,461 |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 3,395 | 4,373 |
Payments of withholding taxes related to net share settlements of restricted stock units | (3,876) | (3,304) |
Proceeds from debt | 1,931 | 0 |
Repayment of debt | (6,836) | 0 |
Payment of contingent consideration for previously acquired business | (207) | 0 |
Purchase of noncontrolling interest | (2,146) | 0 |
Other financing activities, net | (1,865) | 260 |
Net cash (used in)/provided by financing activities | (9,604) | 1,329 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (45,407) | (11,856) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (141,422) | 50,761 |
Cash, cash equivalents and restricted cash, beginning of period | 1,449,347 | 1,323,533 |
Cash, cash equivalents and restricted cash, end of period | $ 1,307,925 | $ 1,374,294 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents | $ 1,276,461 | $ 1,446,625 |
Total restricted cash | 31,464 | 2,722 |
Total cash, cash equivalents and restricted cash | 1,307,925 | 1,449,347 |
Restricted cash in Prepaid and other current assets | ||
Restricted cash in Prepaid and other current assets | 29,416 | 495 |
Restricted cash in Other noncurrent assets | ||
Restricted cash in Other noncurrent assets | $ 2,048 | $ 2,227 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
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 digital transformation services and product engineering company, providing 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 several other industries. The Company is incorporated in Delaware with headquarters in Newtown, Pennsylvania. Basis of Presentation — The accompanying unaudited condensed consolidated financial statements of EPAM have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP” or “U.S. GAAP”) and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended. The unaudited condensed consolidated financial statements include the financial statements of EPAM Systems, Inc. and its subsidiaries with all intercompany balances and transactions eliminated. These unaudited condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2021 included in its Annual Report on Form 10-K. The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire year. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation of the Company’s financial position as of March 31, 2022 and the results of its operations and its cash flows for the periods presented. 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 several countries, including Russia, Ukraine and Belarus, which could be impacted by the invasion of Ukraine (see Note 2, “Impact of the Invasion of Ukraine”) and 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 March 31, 2022, the Company had $59.5 million of cash and cash equivalents in banks in Russia, $51.0 million of cash and cash equivalents in banks in Belarus, and $28.3 million of cash and cash equivalents in banks in Ukraine. Also, as of March 31, 2022, the Company had an additional $28.9 million of cash in a bank in Belarus which could not be accessed due to an administrative review by the bank. Based on the inability to access this $28.9 million of cash on demand, the Company has classified this amount as restricted cash included in Prepaid and other current assets in its condensed consolidated balance sheets as of March 31, 2022. These funds were made available to EPAM in full during April and substantially all of these funds were transferred to another bank in the country. 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. See Note 2 “Impact of the Invasion of Ukraine” for further discussion regarding trade receivables and contract assets from customers located in Russia. 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. See Note 6, “Derivative Financial Instruments ” for further discussion regarding the Company’s termination of the hedging program for the Russian ruble. 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 Agreement, which is subject to a variety of rates depending on the type and timing of funds borrowed (See Note 8 “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 There were no recently adopted accounting standards which had a material impact on the Company’s consolidated financial position, results of operations, changes in stockholders’ equity and cash flows. 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. |
IMPACT OF THE INVASION OF UKRAI
IMPACT OF THE INVASION OF UKRAINE | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
IMPACT OF THE INVASION OF UKRAINE | IMPACT OF THE INVASION OF UKRAINEOn February 24, 2022, Russian forces attacked Ukraine and its people and EPAM has called for an immediate end to this unlawful and unconscionable attack. As of March 31, 2022, the Company had $74.9 million of Property and equipment, net in Ukraine consisting of a building classified as construction-in-progress located in Kyiv with a net book value of $50.4 million, laptops with a net book value of $15.3 million, most of which are in the possession of employees, various office furniture, equipment and supplies with a net book value of $8.5 million, and leasehold improvements located throughout Ukraine with a net book value of $0.7 million. Additionally, the Company had Operating lease right-of-use assets located throughout Ukraine with a net book value of $18.8 million as of March 31, 2022. Through the issuance date of these interim financial statements, the Company is not aware of any damage to its long-lived assets in Ukraine and the Company expects to continue to use these assets as part of its global delivery model. On March 4, 2022, in addition to the Company’s donations, and the work of EPAM volunteers on the ground, the Company announced a $100.0 million humanitarian commitment to support its employees and their families in and displaced from Ukraine. During the three months ended March 31, 2022, the Company expensed $25.7 million related to this commitment including special cash payments to support impacted employees, financial and medical support for impacted families, travel, meals and lodging expenses, and donations to third-party humanitarian organizations. Of this expensed amount, $19.2 million is classified in Cost of revenues (exclusive of depreciation and amortization) and $6.5 million is classified in Selling, general and administrative expense on the condensed consolidated financial statements for the three months ended March 31, 2022. In response to the attacks on Ukraine, EPAM announced on March 4, 2022, it would discontinue services to customers located in Russia. Based on this change in facts and circumstances, the long-term cash flow forecast for the Company’s operations in Russia and its Russia reporting unit were significantly reduced. The reduction in the long-term cash flow forecasts indicated that the carrying amounts of goodwill and long-lived assets associated with the Company’s Russia reporting unit and operations in Russia may not be recoverable, and the carrying value of these assets was tested for impairment. The Company relied on the income approach to estimate the fair values of the Russia reporting unit and long-lived assets and considered multiple scenarios including the continuing operation and exit of operations in Russia. Reflecting the negative long-term cash flow forecasts associated with these assets that each of these scenarios produced, during the three months ended March 31, 2022, the Company recorded impairments of Property and equipment, net of $15.1 million, Operating lease right-of-use assets, net of $3.8 million, and Goodwill of $0.7 million. These asset impairment charges are included in Selling, general and administrative expenses in the interim condensed consolidated financial statements. Additionally, the Company evaluated trade receivables and contract assets for estimated future credit losses from customers located in Russia and recorded a bad debt expense of $8.4 million, reflecting the deterioration of creditworthiness of its customers in Russia during the three months ended March 31, 2022. This expense is included in Selling, general and administrative expenses in the condensed consolidated financial statements. Furthermore, in response to the invasion, the Company began executing its business continuity plans focused on relocating employees residing in Ukraine, Belarus and Russia to other countries as well as assigning delivery personnel in locations outside of the region to serve in unbilled standby or backup capacity to ensure the continuity of delivery for its customers who have substantial delivery exposure to Ukraine or other delivery concerns resulting from the invasion. In addition to costs incurred as part of EPAM’s humanitarian commitment to Ukraine, during the three months ended March 31, 2022, the Company incurred expenses of $18.7 million classified as Selling, general and administrative expenses related to its geographic repositioning efforts and $2.6 million classified as Cost of revenues (exclusive of depreciation and amortization) related to these standby resources. The Company also recorded an impairment charge of $1.3 million classified as Other income/(expense) related to a financial asset in Ukraine which the Company believes is unrealizable due to the events in Ukraine. Cash and cash equivalents $ 59,456 Trade receivables and contract assets, net of allowance of $8.6 million 19,802 Prepaid and other current assets 3,400 Deferred tax assets 647 Other noncurrent assets 30 Total assets in Russia $ 83,335 Accounts payable $ 1,056 Accrued compensation and benefits expenses 48,964 Accrued expenses and other liabilities 4,761 Income taxes payable, current 195 Operating lease liabilities 3,199 Other noncurrent liabilities 994 Total liabilities in Russia $ 59,169 |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS PolSource — On April 2, 2021, the Company acquired 100% of PolSource S.A. and its subsidiaries, 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 March 31, 2022: PolSource CORE Emakina Cash and cash equivalents $ 2,565 $ 11,283 $ 5,142 Trade receivables and contract assets 12,734 10,266 34,389 Prepaid and other current assets 814 5,523 3,109 Goodwill 125,265 23,354 137,037 Intangible assets 15,790 8,368 30,488 Property and equipment and other noncurrent assets 461 4,585 17,024 Total assets acquired $ 157,629 $ 63,379 $ 227,189 Accounts payable, accrued expenses and other current liabilities $ 5,337 $ 8,589 $ 36,411 Short-term debt — — 13,657 Long-term debt — — 8,874 Operating lease liabilities, noncurrent 157 2,056 5,397 Other noncurrent liabilities 3,963 2,525 8,363 Total liabilities assumed $ 9,457 $ 13,170 $ 72,702 Noncontrolling interest in consolidated subsidiaries — — 10,469 Net assets acquired $ 148,172 $ 50,209 $ 144,018 As of March 31, 2022 the Company has substantially completed the purchase price allocation for the acquisition of PolSource and the estimated fair values of the assets acquired and liabilities assumed have been finalized with the exception of the accounting for income taxes. The effect of adjustments recorded during the three months ended March 31, 2022 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. The Company expects to complete the purchase price allocations as soon as practicable but no later than one year from the acquisition date. The effect of adjustments recorded during the three months ended March 31, 2022 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, 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 three months ended March 31, 2022, the Company adjusted working capital accounts of Emakina resulting in a corresponding increase in the value of acquired goodwill of $0.4 million. 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 effect of adjustments recorded during the three months ended March 31, 2022 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 Emakina was not material. 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. As of March 31, 2022, the following table presents the estimated fair values and useful lives of intangible assets acquired from PolSource, CORE and Emakina: PolSource CORE Emakina Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 6 $ 14,790 6 $ 7,779 7 $ 27,822 Trade names 3 1,000 5 589 3 2,666 Total $ 15,790 $ 8,368 $ 30,488 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 PolSource, CORE and Emakina acquisitions is not expected to be deductible for income tax purposes. 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. 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. 2022 Acquisition — During the three months ended March 31, 2022, the Company completed one acquisition with a purchase price of $10.6 million including contingent consideration with an acquisition-date fair value of $1.8 million. This acquisition expanded EPAM’s capabilities to deliver end-to-end solutions for designing and building sophisticated commerce platforms as well as added $2.3 million of intangible assets, consisting of customer relationships. Pro forma results of operations have not been presented because the effect of this acquisition on the Company’s condensed consolidated financial statements was not material. |
GOODWILL
GOODWILL | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Goodwill by reportable segment was as follows: North America Europe Russia Total Balance as of January 1, 2022 $ 217,594 $ 312,413 $ 716 $ 530,723 Emakina acquisition purchase accounting adjustment — 423 — 423 PolSource acquisition purchase accounting adjustment (44) (30) — (74) CORE acquisition purchase accounting adjustment — 120 — 120 Other 2021 acquisitions purchase accounting adjustment (519) 142 — (377) 2022 acquisition — 8,467 — 8,467 Goodwill impairment — — (686) (686) Effect of net foreign currency exchange rate changes (80) (4,350) (30) (4,460) Balance as of March 31, 2022 $ 216,951 $ 317,185 $ — $ 534,136 See Note 2 “Impact of the Invasion of Ukraine” for more information regarding the goodwill impairment recorded in the Russia segment during the three months ended March 31, 2022. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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 condensed consolidated balance sheets. The following tables present the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: As of March 31, 2022 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 145 $ — $ 145 $ — Rights to acquire noncontrolling interest in consolidated subsidiaries 1,066 — — 1,066 Total assets measured at fair value on a recurring basis $ 1,211 $ — $ 145 $ 1,066 Foreign exchange derivative liabilities $ 47,733 $ — $ 47,733 $ — Contingent consideration 27,992 — — 27,992 Total liabilities measured at fair value on a recurring basis $ 75,725 $ — $ 47,733 $ 27,992 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 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 6 “Derivative Financial Instruments” in the condensed consolidated interim financial statements 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 purchased the majority of the noncontrolling interest in consolidated subsidiaries during 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 2022 Acquisition was 13.0%. 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%. 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 condensed consolidated statement of income. A reconciliation of the beginning and ending balances of Level 3 acquisition-related contingent consideration using significant unobservable inputs for the three months ended March 31, 2022 is as follows: Amount Contingent consideration liabilities as of January 1, 2022 $ 23,114 Acquisition date fair value of contractual contingent liabilities - 2022 Acquisition 1,784 Changes in fair value of contingent consideration included in Interest and other (loss)/income, net 3,373 Effect of net foreign currency exchange rate changes (279) Contingent consideration liabilities as of March 31, 2022 $ 27,992 See Note 2, “Impact of the Invasion of Ukraine” for discussion of the nonrecurring level 3 fair value assessment used in the impairment tests of long-lived assets in Russia. 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 condensed 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 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 condensed consolidated balance sheets. 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 March 31, 2022 Financial Assets: Cash equivalents: Money market funds $ 63,817 $ 63,817 $ 63,817 $ — $ — Total cash equivalents $ 63,817 $ 63,817 $ 63,817 $ — $ — Restricted cash $ 31,464 $ 31,464 $ 31,464 $ — $ — Employee loans $ 922 $ 922 $ — $ — $ 922 Financial Liabilities: Short term debt $ 9,900 $ 9,900 $ — $ 9,900 $ — Borrowings under the 2021 Credit Agreement $ 25,000 $ 25,000 $ — $ 25,000 $ — Other long term debt $ 5,550 $ 5,550 $ — $ 5,550 $ — 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 the 2021 Credit Agreement $ 25,000 $ 25,000 $ — $ 25,000 $ — Other long term debt $ 5,234 $ 5,234 $ — $ 5,234 $ — Non-Marketable Securities Without Readily Determinable Fair Values The 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. The carrying amount of these investments was $27.5 million and $27.5 million as of March 31, 2022 and December 31, 2021, respectively, and is classified as Other noncurrent assets in the Company’s condensed consolidated balance sheets. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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. As of March 31, 2022, all of the Company’s foreign exchange forward contracts, except the Russian ruble foreign exchange forward contracts, were designated as hedges and there is no financial collateral (including cash collateral) required to be posted by the Company related to the foreign exchange forward contracts. During the three months ended March 31, 2022, in response to the war in Ukraine, the Company de-designated its Russian ruble foreign exchange forward contracts as hedges and entered into offsetting foreign exchange forward contracts with the same counterparty. The Company determined it was probable the underlying forecasted foreign currency transactions which were hedged would not occur and reclassified the accumulated loss of $43.9 million on the underlying hedges into income which is classified as foreign exchange loss in the condensed consolidated statement of income. The fair value of derivative instruments on the Company’s condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 were as follows: As of March 31, 2022 As of December 31, 2021 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Prepaid expenses and other current assets $ 145 $ 1,429 Accrued expenses and other current liabilities $ 6,364 $ 5,849 Foreign exchange forward contracts - Accrued expenses and other current liabilities $ 41,369 $ — |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
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 right-of-use 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 9.8 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 three months ended March 31, 2022 and 2021. See Note 2, “Impact of the Invasion of Ukraine” for discussion of impairment of right-of-use assets in Russia. During the three months ended March 31, 2022 and 2021, the components of lease expense were as follows: Three Months Ended Income Statement Classification 2022 2021 Operating lease cost Selling, general and administrative expenses $ 15,884 $ 17,256 Variable lease cost Selling, general and administrative expenses 3,187 2,260 Short-term lease cost Selling, general and administrative expenses 1,039 178 Total lease cost $ 20,110 $ 19,694 Supplemental cash flow information related to leases for the three months ended March 31, 2022 and 2021 was as follows: Three Months Ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 14,803 $ 17,645 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 19,484 $ 38 Non-cash net decrease due to lease modifications: Operating lease right-of-use assets $ 7,428 $ 1,066 Operating lease liabilities $ 7,434 $ 1,066 Weighted average remaining lease term and discount rate as of March 31, 2022 and 2021 were as follows: As of March 31, 2022 As of March 31, 2021 Weighted average remaining lease term, in years: Operating leases 5.7 5.8 Weighted average discount rate: Operating leases 2.4 % 3.0 % As of March 31, 2022, operating lease liabilities will mature as follows: Year ending December 31, Lease Payments 2022 (excluding three months ended March 31, 2022) $ 39,877 2023 39,984 2024 33,442 2025 25,346 2026 20,225 Thereafter 41,165 Total lease payments 200,039 Less: imputed interest (12,204) Total $ 187,835 The Company had committed to payments of $12.3 million related to operating lease agreements that had not yet commenced as of March 31, 2022. These operating leases will commence on various dates during 2022 with lease terms ranging from 0.1 to 9.0 years. The Company did not have any material finance lease agreements that had not yet commenced. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Revolving Credit Facility — 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 the 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. 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 March 31, 2022, 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 As of Outstanding debt $ 25,000 $ 25,000 Interest rate 1.3 % 1.0 % Available borrowing capacity $ 675,000 $ 675,000 Maximum borrowing capacity $ 700,000 $ 700,000 Other Debt - On November 3, 2021, in connection with the acquisition of Emakina, the Company assumed the debt obligations of the acquired companies. Debt that matures within one year is classified as Short-term debt on the condensed consolidated balance sheets, consists of multiple bank loans and credit lines totaling $9.9 million that bear a weighted-average interest rate of 1.6%. Debt that matures from 2023 through 2027 is classified as Long-term debt on the condensed consolidated balance sheets and consists of multiple bank loans and credit lines totaling $5.5 million that bear interest at a weighted-average interest rate of 1.3%. Some of this debt is secured by assets of Emakina. Some of the debt agreements contain covenants and as of March 31, 2022, the Company was in compliance with all those covenants. |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Disaggregation of Revenues The following tables present the disaggregation of the Company’s revenues by customer location, including a reconciliation of the disaggregated revenues with the reportable segments (Note 14 “Segment Information”) for the periods indicated: Three Months Ended March 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 659,776 $ 25,960 $ 1,057 $ 686,793 EMEA 25,098 396,753 99 421,950 CEE 2,054 458 30,777 33,289 APAC 783 28,799 — 29,582 Revenues $ 687,711 $ 451,970 $ 31,933 $ 1,171,614 Three Months Ended March 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 454,767 $ 14,663 $ 891 $ 470,321 EMEA 17,755 241,554 63 259,372 CEE 1,856 14 28,264 30,134 APAC 475 20,473 — 20,948 Revenues $ 474,853 $ 276,704 $ 29,218 $ 780,775 The following tables present the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the reportable segments (Note 14 “Segment Information”) for the periods indicated: Three Months Ended March 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Travel & Consumer $ 122,247 $ 136,788 $ 6,284 $ 265,319 Financial Services 120,335 117,330 22,398 260,063 Business Information & Media 110,946 82,901 456 194,303 Software & Hi-Tech 156,282 32,454 747 189,483 Life Sciences & Healthcare 111,371 12,282 150 123,803 Emerging Verticals 66,530 70,215 1,898 138,643 Revenues $ 687,711 $ 451,970 $ 31,933 $ 1,171,614 Three Months Ended March 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Travel & Consumer $ 69,429 $ 64,624 $ 4,958 $ 139,011 Financial Services 69,740 78,040 21,078 168,858 Business Information & Media 87,205 60,157 387 147,749 Software & Hi-Tech 125,586 20,973 505 147,064 Life Sciences & Healthcare 75,589 15,351 175 91,115 Emerging Verticals 47,304 37,559 2,115 86,978 Revenues $ 474,853 $ 276,704 $ 29,218 $ 780,775 The following tables present the disaggregation of the Company’s revenues by contract type including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 14 “Segment Information”) for the periods indicated: Three Months Ended March 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 626,807 $ 377,655 $ 18,691 $ 1,023,153 Fixed-price 56,765 73,608 13,190 143,563 Licensing 3,635 145 52 3,832 Other revenues 504 562 — 1,066 Revenues $ 687,711 $ 451,970 $ 31,933 $ 1,171,614 Three Months Ended March 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 417,887 $ 232,691 $ 14,427 $ 665,005 Fixed-price 53,015 43,566 14,701 111,282 Licensing 3,535 54 81 3,670 Other revenues 416 393 9 818 Revenues $ 474,853 $ 276,704 $ 29,218 $ 780,775 Timing of Revenue Recognition The following tables present the timing of revenue recognition reconciled with the Company’s reportable segments (Note 14 “Segment Information”) for the periods indicated: Three Months Ended March 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 685,109 $ 451,848 $ 31,891 $ 1,168,848 Transferred at a point of time 2,602 122 42 2,766 Revenues $ 687,711 $ 451,970 $ 31,933 $ 1,171,614 Three Months Ended March 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 472,374 $ 276,731 $ 29,190 $ 778,295 Transferred at a point of time 2,479 (27) 28 2,480 Revenues $ 474,853 $ 276,704 $ 29,218 $ 780,775 During the three months ended March 31, 2022, the Company recognized $6.0 million of revenues from performance obligations satisfied in previous periods compared to $15.2 million during the three months ended March 31, 2021. 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 March 31, 2022. The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts (i) that have an original expected duration of one year or less and (ii) 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 $ 8,827 $ 3,406 $ 2,050 $ 1,537 $ 15,820 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 condensed consolidated balance sheets: As of As of Contract assets included in Trade receivables and contract assets, net $ 17,525 $ 13,798 Contract liabilities included in Accrued expenses and other current liabilities $ 37,321 $ 39,810 Contract liabilities included in Other noncurrent liabilities $ 116 $ 84 Contract assets have increased since December 31, 2021 primarily due to contracts where the Company’s right to bill is contingent upon achievement of contractual milestones. 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 decreased since December 31, 2021 due to services performed for customers during the first three months of 2022. During the three months ended March 31, 2022, the Company recognized $26.3 million of revenues that were included in Accrued expenses and other current liabilities at December 31, 2021. During the three months ended March 31, 2021, the Company recognized $11.0 million of revenues that were included in Accrued expenses and other current liabilities at December 31, 2020. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed consolidated statements of income for the periods indicated: Three Months Ended 2022 2021 Cost of revenues (exclusive of depreciation and amortization) $ (424) $ 11,117 Selling, general and administrative expenses 7,536 13,436 Total $ 7,112 $ 24,553 Stock Options Stock option activity under the Company’s plans is set forth below: Number of Weighted Average Aggregate Weighted Average Options outstanding at January 1, 2022 2,318 $ 77.79 Options granted 105 $ 272.17 Options exercised (160) $ 22.72 Options outstanding at March 31, 2022 2,263 $ 90.75 $ 477,283 3.9 Options vested and exercisable as of March 31, 2022 1,976 $ 64.10 $ 461,284 3.2 Options expected to vest as of March 31, 2022 262 $ 273.03 $ 14,872 8.9 As of March 31, 2022, $28.5 million of total remaining unrecognized stock-based compensation cost related to unvested stock options, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 3.1 years. Restricted Stock and Restricted Stock Units Service-Based Awards The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the three months ended March 31, 2022: Equity-Classified Restricted Stock Equity-Classified Equity-Settled Restricted Stock Units Liability-Classified Cash-Settled Restricted Stock Units Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Unvested service-based awards outstanding at January 1, 2022 9 $ 167.18 576 $ 277.38 112 $ 217.28 Awards granted — $ — 366 $ 278.53 42 $ 266.75 Awards modified — $ — (3) $ 387.74 3 $ 220.00 Awards vested — $ — (193) $ 199.32 (52) $ 181.18 Awards forfeited/cancelled — $ — (5) $ 368.35 — $ 253.51 Unvested service-based awards outstanding at March 31, 2022 9 $ 167.18 741 $ 297.23 105 $ 254.85 As of March 31, 2022, $0.2 million of total remaining unrecognized stock-based compensation cost related to service-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 0.4 years. As of March 31, 2022, $183.2 million of total remaining unrecognized stock-based compensation cost related to service-based equity-classified restricted stock units (“RSUs”), net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 3.2 years. As of March 31, 2022, $26.9 million of total remaining unrecognized stock-based compensation cost related to service-based liability-classified cash-settled RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.8 years. The liability associated with the service-based liability-classified RSUs as of March 31, 2022 and December 31, 2021, was $11.2 million and $31.5 million, respectively, and was classified as Accrued compensation and benefits expenses in the condensed consolidated balance sheets. Performance-Based Awards The table below summarizes activity related to the Company’s equity-classified performance-based awards for the three months ended March 31, 2022: Equity-Classified Equity-Settled Restricted Stock Equity-Classified Equity-Settled Restricted Stock Units Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Unvested performance-based awards outstanding at January 1, 2022 9 $ 165.87 23 $ 339.69 Awards granted — $ — 1 $ 556.68 Unvested performance-based awards outstanding at March 31, 2022 9 $ 165.87 24 $ 344.04 As of March 31, 2022, $0.6 million of total remaining unrecognized stock-based compensation cost related to performance-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 1.4 years. As of March 31, 2022, $4.7 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 3.0 years. 2021 Employee Stock Purchase Plan On November 1, 2021, the first offering period of the 2021 Employee Stock Purchase Plan ("ESPP") commenced. As of March 31, 2022, no purchases have been made under the ESPP as the first anticipated purchase date will be on April 29, 2022. The Company recognizes compensation expense related to shares issued pursuant to the ESPP on a straight-line basis over the six-month offering period. For the three months ended March 31, 2022, the Company recognized $1.7 million of stock-based compensation expense related to the ESPP. As of March 31, 2022, total unrecognized stock-based compensation cost related to the ESPP was $0.6 million, which is expected to be recognized over a period of 0.08 years. Commitments for Future Equity Awards In connection with the Company’s acquisitions of businesses as discussed in Note 3 “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 March 31, 2022, the Company has commitments to grant up to $43.1 million of equity awards with the number of awards to be determined 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 $1.1 million and $1.2 million of stock-based compensation expense in the condensed consolidated statements of income for the quarters ended March 31, 2022 and 2021, respectively. As of March 31, 2022, the Company has commitments to grant 7 thousand RSUs in the future as the grantee has not yet been determined. In addition, as of March 31, 2022, the Company has issued 7 thousand performance-based equity-classified RSUs which are not considered granted for accounting purposes as the future vesting conditions have not yet been determined. On April 15, 2022, the Company granted stock-based compensation awards to employees including 22 thousand stock options, 198 thousand equity-classified RSUs and 7 thousand liability-classified cash-settled RSUs, vesting over 4 years from the grant date. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In determining its interim provision for income taxes, the Company historically has used an estimated annual effective tax rate, which is based on expected annual profit before tax, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. During the first quarter of 2022, the Company recorded its interim tax provision using the discrete method rather than using an estimated annual effective tax rate. The discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on that basis. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. In subsequent quarters, the Company will continue to evaluate the practicality of utilizing the annual effective tax rate method. The Company’s worldwide effective tax rates for the three months ended March 31, 2022 and 2021 were 15.6% and 5.1%, respectively. The Company’s effective tax rates benefited from excess tax benefits recorded upon vesting or exercise of stock-based awards of $13.1 million and $21.5 million during the three months ended March 31, 2022 and 2021, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
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: Three Months Ended 2022 2021 Numerator for basic and diluted earnings per share: Net income $ 89,719 $ 109,046 Numerator for basic and diluted earnings per share $ 89,719 $ 109,046 Denominator: Weighted average common shares for basic earnings per share 56,915 56,170 Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP 2,026 2,608 Weighted average common shares for diluted earnings per share 58,941 58,778 Net income per share: Basic $ 1.58 $ 1.94 Diluted $ 1.52 $ 1.86 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 137 thousand and 16 thousand during the three months ended March 31, 2022 and 2021, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
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 condensed 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 | 3 Months Ended |
Mar. 31, 2022 | |
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, non-corporate taxes, 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 management team’s reportable segment. See Note 2 “Impact of the Invasion of Ukraine” for more information regarding the Company’s decisions to no longer serve customers in Russia and the subsequent decision to exit its operations in Russia. Revenues from external customers and operating profit/(loss), before unallocated expenses, by reportable segment for the three months ended March 31, 2022 and 2021, were as follows: Three Months Ended 2022 2021 Segment revenues: North America $ 687,711 $ 474,853 Europe 451,970 276,704 Russia 31,933 29,218 Total segment revenues $ 1,171,614 $ 780,775 Segment operating profit/(loss): North America $ 126,734 $ 94,103 Europe 56,711 51,073 Russia (19,484) 979 Total segment operating profit $ 163,961 $ 146,155 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 that accounted for more than 10% of total segment revenues during the three months ended March 31, 2022 and 2021. Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below: Three Months Ended 2022 2021 Total segment operating profit: $ 163,961 $ 146,155 Unallocated amounts: Stock-based compensation expense (7,112) (24,553) Amortization of intangibles assets (5,244) (3,140) Other acquisition-related expenses (579) (1,933) Other unallocated expenses (21,784) (9,278) Income from operations 129,242 107,251 Interest and other (loss)/income, net (165) 5,374 Foreign exchange (loss)/gain (22,785) 2,299 Income before provision for income taxes $ 106,292 $ 114,924 Geographic Area Information Long-lived assets presented in the table below 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 As of Ukraine $ 74,902 $ 78,289 Belarus 70,700 75,422 United States 17,423 14,843 India 10,997 9,459 Poland 8,025 8,240 Hungary 5,612 5,339 Russia — 16,611 Other 31,980 28,011 Total $ 219,639 $ 236,214 See Note 2 “Impact of the Invasion of Ukraine” for more information regarding the Company’s decisions to no longer serve customers in Russia, impairment of long-lived assets in Russia and the subsequent decision to exit its operations in Russia. The table below presents information about the Company’s revenues by customer location for the three months ended March 31, 2022 and 2021: Three Months Ended 2022 2021 United States $ 657,027 $ 448,021 United Kingdom 153,197 93,464 Switzerland 81,830 67,568 Netherlands 50,179 33,032 Germany 36,389 22,025 Russia 30,692 27,656 Canada 27,029 21,835 Other locations 135,271 67,174 Total $ 1,171,614 $ 780,775 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2022 | |
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: Three Months Ended 2022 2021 Foreign currency translation Beginning balance $ (52,747) $ (28,168) Foreign currency translation (36,115) (13,581) Income tax benefit 5,563 3,050 Foreign currency translation, net of tax (30,552) (10,531) Ending balance $ (83,299) $ (38,699) Cash flow hedging instruments Beginning balance $ (3,417) $ 3,642 Unrealized loss in fair value (46,557) (7,346) Net loss reclassified into Cost of revenues (exclusive of depreciation and amortization) 904 2,066 Net loss reclassified into Foreign exchange loss 43,854 — Income tax benefit 408 1,199 Cash flow hedging instruments, net of tax (1,391) (4,081) Ending balance (1) $ (4,808) $ (439) Defined benefit plans Beginning balance $ 1,957 $ (986) Actuarial losses — (811) Income tax benefit — 185 Defined benefit plans, net of tax — (626) Ending balance $ 1,957 $ (1,612) Accumulated other comprehensive loss $ (86,150) $ (40,750) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSSee Note 2 “Impact of the Invasion of Ukraine” for discussion of the Company’s decision to exit operations in Russia.See Note 10 “Stock-Based Compensation” for discussion of the grant of certain stock-based compensation awards. |
BUSINESS AND SUMMARY OF SIGNI_2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading digital transformation services and product engineering company, providing 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 several other industries. The Company is incorporated in Delaware with headquarters in Newtown, Pennsylvania. |
Basis of Presentation | Basis of Presentation — The accompanying unaudited condensed consolidated financial statements of EPAM have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP” or “U.S. GAAP”) and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended. The unaudited condensed consolidated financial statements include the financial statements of EPAM Systems, Inc. and its subsidiaries with all intercompany balances and transactions eliminated. |
Use of Estimates | The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire year. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation of the Company’s financial position as of March 31, 2022 and the results of its operations and its cash flows for the periods presented. |
Concentration of Credit And Interest Rate Risk | 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. 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 Agreement, which is subject to a variety of rates depending on the type and timing of funds borrowed (See Note 8 “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. |
Foreign currency risk | 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. |
Adoption of New Accounting Standards and Pending Accounting Standards | Adoption of New Accounting Standards There were no recently adopted accounting standards which had a material impact on the Company’s consolidated financial position, results of operations, changes in stockholders’ equity and cash flows. 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. |
Fair Value of Financial Instruments | 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 6 “Derivative Financial Instruments” in the condensed consolidated interim financial statements 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 purchased the majority of the noncontrolling interest in consolidated subsidiaries during 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. |
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. |
Income Taxes | In subsequent quarters, the Company will continue to evaluate the practicality of utilizing the annual effective tax rate method. |
IMPACT OF THE INVASION OF UKR_2
IMPACT OF THE INVASION OF UKRAINE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities in Russia | As of March 31, 2022, the Company has the following assets and liabilities in Russia: Cash and cash equivalents $ 59,456 Trade receivables and contract assets, net of allowance of $8.6 million 19,802 Prepaid and other current assets 3,400 Deferred tax assets 647 Other noncurrent assets 30 Total assets in Russia $ 83,335 Accounts payable $ 1,056 Accrued compensation and benefits expenses 48,964 Accrued expenses and other liabilities 4,761 Income taxes payable, current 195 Operating lease liabilities 3,199 Other noncurrent liabilities 994 Total liabilities in Russia $ 59,169 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Fair Value of the 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 March 31, 2022: PolSource CORE Emakina Cash and cash equivalents $ 2,565 $ 11,283 $ 5,142 Trade receivables and contract assets 12,734 10,266 34,389 Prepaid and other current assets 814 5,523 3,109 Goodwill 125,265 23,354 137,037 Intangible assets 15,790 8,368 30,488 Property and equipment and other noncurrent assets 461 4,585 17,024 Total assets acquired $ 157,629 $ 63,379 $ 227,189 Accounts payable, accrued expenses and other current liabilities $ 5,337 $ 8,589 $ 36,411 Short-term debt — — 13,657 Long-term debt — — 8,874 Operating lease liabilities, noncurrent 157 2,056 5,397 Other noncurrent liabilities 3,963 2,525 8,363 Total liabilities assumed $ 9,457 $ 13,170 $ 72,702 Noncontrolling interest in consolidated subsidiaries — — 10,469 Net assets acquired $ 148,172 $ 50,209 $ 144,018 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | As of March 31, 2022, the following table presents the estimated fair values and useful lives of intangible assets acquired from PolSource, CORE and Emakina: PolSource CORE Emakina Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 6 $ 14,790 6 $ 7,779 7 $ 27,822 Trade names 3 1,000 5 589 3 2,666 Total $ 15,790 $ 8,368 $ 30,488 |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 $ 217,594 $ 312,413 $ 716 $ 530,723 Emakina acquisition purchase accounting adjustment — 423 — 423 PolSource acquisition purchase accounting adjustment (44) (30) — (74) CORE acquisition purchase accounting adjustment — 120 — 120 Other 2021 acquisitions purchase accounting adjustment (519) 142 — (377) 2022 acquisition — 8,467 — 8,467 Goodwill impairment — — (686) (686) Effect of net foreign currency exchange rate changes (80) (4,350) (30) (4,460) Balance as of March 31, 2022 $ 216,951 $ 317,185 $ — $ 534,136 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: As of March 31, 2022 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 145 $ — $ 145 $ — Rights to acquire noncontrolling interest in consolidated subsidiaries 1,066 — — 1,066 Total assets measured at fair value on a recurring basis $ 1,211 $ — $ 145 $ 1,066 Foreign exchange derivative liabilities $ 47,733 $ — $ 47,733 $ — Contingent consideration 27,992 — — 27,992 Total liabilities measured at fair value on a recurring basis $ 75,725 $ — $ 47,733 $ 27,992 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 |
Acquisition-Related Contingent Consideration Roll Forward | A reconciliation of the beginning and ending balances of Level 3 acquisition-related contingent consideration using significant unobservable inputs for the three months ended March 31, 2022 is as follows: Amount Contingent consideration liabilities as of January 1, 2022 $ 23,114 Acquisition date fair value of contractual contingent liabilities - 2022 Acquisition 1,784 Changes in fair value of contingent consideration included in Interest and other (loss)/income, net 3,373 Effect of net foreign currency exchange rate changes (279) Contingent consideration liabilities as of March 31, 2022 $ 27,992 See Note 2, “Impact of the Invasion of Ukraine” for discussion of the nonrecurring level 3 fair value assessment used in the impairment tests of long-lived assets in Russia. |
Estimated Fair Values of Financial Assets and Liabilities not Measured at Fair Value on 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 March 31, 2022 Financial Assets: Cash equivalents: Money market funds $ 63,817 $ 63,817 $ 63,817 $ — $ — Total cash equivalents $ 63,817 $ 63,817 $ 63,817 $ — $ — Restricted cash $ 31,464 $ 31,464 $ 31,464 $ — $ — Employee loans $ 922 $ 922 $ — $ — $ 922 Financial Liabilities: Short term debt $ 9,900 $ 9,900 $ — $ 9,900 $ — Borrowings under the 2021 Credit Agreement $ 25,000 $ 25,000 $ — $ 25,000 $ — Other long term debt $ 5,550 $ 5,550 $ — $ 5,550 $ — 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 the 2021 Credit Agreement $ 25,000 $ 25,000 $ — $ 25,000 $ — Other long term debt $ 5,234 $ 5,234 $ — $ 5,234 $ — |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The fair value of derivative instruments on the Company’s condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 were as follows: As of March 31, 2022 As of December 31, 2021 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Prepaid expenses and other current assets $ 145 $ 1,429 Accrued expenses and other current liabilities $ 6,364 $ 5,849 Foreign exchange forward contracts - Accrued expenses and other current liabilities $ 41,369 $ — |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expenses | During the three months ended March 31, 2022 and 2021, the components of lease expense were as follows: Three Months Ended Income Statement Classification 2022 2021 Operating lease cost Selling, general and administrative expenses $ 15,884 $ 17,256 Variable lease cost Selling, general and administrative expenses 3,187 2,260 Short-term lease cost Selling, general and administrative expenses 1,039 178 Total lease cost $ 20,110 $ 19,694 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases for the three months ended March 31, 2022 and 2021 was as follows: Three Months Ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 14,803 $ 17,645 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 19,484 $ 38 Non-cash net decrease due to lease modifications: Operating lease right-of-use assets $ 7,428 $ 1,066 Operating lease liabilities $ 7,434 $ 1,066 |
Weighted Average Lease Terms and Discount Rates | Weighted average remaining lease term and discount rate as of March 31, 2022 and 2021 were as follows: As of March 31, 2022 As of March 31, 2021 Weighted average remaining lease term, in years: Operating leases 5.7 5.8 Weighted average discount rate: Operating leases 2.4 % 3.0 % |
Maturity of Operating Lease Liabilities | As of March 31, 2022, operating lease liabilities will mature as follows: Year ending December 31, Lease Payments 2022 (excluding three months ended March 31, 2022) $ 39,877 2023 39,984 2024 33,442 2025 25,346 2026 20,225 Thereafter 41,165 Total lease payments 200,039 Less: imputed interest (12,204) Total $ 187,835 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 As of Outstanding debt $ 25,000 $ 25,000 Interest rate 1.3 % 1.0 % Available borrowing capacity $ 675,000 $ 675,000 Maximum borrowing capacity $ 700,000 $ 700,000 |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following tables present the disaggregation of the Company’s revenues by customer location, including a reconciliation of the disaggregated revenues with the reportable segments (Note 14 “Segment Information”) for the periods indicated: Three Months Ended March 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 659,776 $ 25,960 $ 1,057 $ 686,793 EMEA 25,098 396,753 99 421,950 CEE 2,054 458 30,777 33,289 APAC 783 28,799 — 29,582 Revenues $ 687,711 $ 451,970 $ 31,933 $ 1,171,614 Three Months Ended March 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 454,767 $ 14,663 $ 891 $ 470,321 EMEA 17,755 241,554 63 259,372 CEE 1,856 14 28,264 30,134 APAC 475 20,473 — 20,948 Revenues $ 474,853 $ 276,704 $ 29,218 $ 780,775 The following tables present the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the reportable segments (Note 14 “Segment Information”) for the periods indicated: Three Months Ended March 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Travel & Consumer $ 122,247 $ 136,788 $ 6,284 $ 265,319 Financial Services 120,335 117,330 22,398 260,063 Business Information & Media 110,946 82,901 456 194,303 Software & Hi-Tech 156,282 32,454 747 189,483 Life Sciences & Healthcare 111,371 12,282 150 123,803 Emerging Verticals 66,530 70,215 1,898 138,643 Revenues $ 687,711 $ 451,970 $ 31,933 $ 1,171,614 Three Months Ended March 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Travel & Consumer $ 69,429 $ 64,624 $ 4,958 $ 139,011 Financial Services 69,740 78,040 21,078 168,858 Business Information & Media 87,205 60,157 387 147,749 Software & Hi-Tech 125,586 20,973 505 147,064 Life Sciences & Healthcare 75,589 15,351 175 91,115 Emerging Verticals 47,304 37,559 2,115 86,978 Revenues $ 474,853 $ 276,704 $ 29,218 $ 780,775 The following tables present the disaggregation of the Company’s revenues by contract type including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 14 “Segment Information”) for the periods indicated: Three Months Ended March 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 626,807 $ 377,655 $ 18,691 $ 1,023,153 Fixed-price 56,765 73,608 13,190 143,563 Licensing 3,635 145 52 3,832 Other revenues 504 562 — 1,066 Revenues $ 687,711 $ 451,970 $ 31,933 $ 1,171,614 Three Months Ended March 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 417,887 $ 232,691 $ 14,427 $ 665,005 Fixed-price 53,015 43,566 14,701 111,282 Licensing 3,535 54 81 3,670 Other revenues 416 393 9 818 Revenues $ 474,853 $ 276,704 $ 29,218 $ 780,775 Timing of Revenue Recognition The following tables present the timing of revenue recognition reconciled with the Company’s reportable segments (Note 14 “Segment Information”) for the periods indicated: Three Months Ended March 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 685,109 $ 451,848 $ 31,891 $ 1,168,848 Transferred at a point of time 2,602 122 42 2,766 Revenues $ 687,711 $ 451,970 $ 31,933 $ 1,171,614 Three Months Ended March 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 472,374 $ 276,731 $ 29,190 $ 778,295 Transferred at a point of time 2,479 (27) 28 2,480 Revenues $ 474,853 $ 276,704 $ 29,218 $ 780,775 |
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 March 31, 2022. The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts (i) that have an original expected duration of one year or less and (ii) 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 $ 8,827 $ 3,406 $ 2,050 $ 1,537 $ 15,820 |
Contract Balances | The following table provides information on the classification of contract assets and liabilities in the condensed consolidated balance sheets: As of As of Contract assets included in Trade receivables and contract assets, net $ 17,525 $ 13,798 Contract liabilities included in Accrued expenses and other current liabilities $ 37,321 $ 39,810 Contract liabilities included in Other noncurrent liabilities $ 116 $ 84 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Components of Stock-Based Compensation Expenses | The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed consolidated statements of income for the periods indicated: Three Months Ended 2022 2021 Cost of revenues (exclusive of depreciation and amortization) $ (424) $ 11,117 Selling, general and administrative expenses 7,536 13,436 Total $ 7,112 $ 24,553 |
Stock Options Activity | Stock option activity under the Company’s plans is set forth below: Number of Weighted Average Aggregate Weighted Average Options outstanding at January 1, 2022 2,318 $ 77.79 Options granted 105 $ 272.17 Options exercised (160) $ 22.72 Options outstanding at March 31, 2022 2,263 $ 90.75 $ 477,283 3.9 Options vested and exercisable as of March 31, 2022 1,976 $ 64.10 $ 461,284 3.2 Options expected to vest as of March 31, 2022 262 $ 273.03 $ 14,872 8.9 |
Service-Based Awards Activity | The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the three months ended March 31, 2022: Equity-Classified Restricted Stock Equity-Classified Equity-Settled Restricted Stock Units Liability-Classified Cash-Settled Restricted Stock Units Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Unvested service-based awards outstanding at January 1, 2022 9 $ 167.18 576 $ 277.38 112 $ 217.28 Awards granted — $ — 366 $ 278.53 42 $ 266.75 Awards modified — $ — (3) $ 387.74 3 $ 220.00 Awards vested — $ — (193) $ 199.32 (52) $ 181.18 Awards forfeited/cancelled — $ — (5) $ 368.35 — $ 253.51 Unvested service-based awards outstanding at March 31, 2022 9 $ 167.18 741 $ 297.23 105 $ 254.85 |
Performance-Based Awards Activity | The table below summarizes activity related to the Company’s equity-classified performance-based awards for the three months ended March 31, 2022: Equity-Classified Equity-Settled Restricted Stock Equity-Classified Equity-Settled Restricted Stock Units Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Unvested performance-based awards outstanding at January 1, 2022 9 $ 165.87 23 $ 339.69 Awards granted — $ — 1 $ 556.68 Unvested performance-based awards outstanding at March 31, 2022 9 $ 165.87 24 $ 344.04 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: Three Months Ended 2022 2021 Numerator for basic and diluted earnings per share: Net income $ 89,719 $ 109,046 Numerator for basic and diluted earnings per share $ 89,719 $ 109,046 Denominator: Weighted average common shares for basic earnings per share 56,915 56,170 Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP 2,026 2,608 Weighted average common shares for diluted earnings per share 58,941 58,778 Net income per share: Basic $ 1.58 $ 1.94 Diluted $ 1.52 $ 1.86 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Revenues from External Customers and Operating Profit/(Loss), Before Unallocated Expenses | Revenues from external customers and operating profit/(loss), before unallocated expenses, by reportable segment for the three months ended March 31, 2022 and 2021, were as follows: Three Months Ended 2022 2021 Segment revenues: North America $ 687,711 $ 474,853 Europe 451,970 276,704 Russia 31,933 29,218 Total segment revenues $ 1,171,614 $ 780,775 Segment operating profit/(loss): North America $ 126,734 $ 94,103 Europe 56,711 51,073 Russia (19,484) 979 Total segment operating profit $ 163,961 $ 146,155 |
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: Three Months Ended 2022 2021 Total segment operating profit: $ 163,961 $ 146,155 Unallocated amounts: Stock-based compensation expense (7,112) (24,553) Amortization of intangibles assets (5,244) (3,140) Other acquisition-related expenses (579) (1,933) Other unallocated expenses (21,784) (9,278) Income from operations 129,242 107,251 Interest and other (loss)/income, net (165) 5,374 Foreign exchange (loss)/gain (22,785) 2,299 Income before provision for income taxes $ 106,292 $ 114,924 |
Physical Location and Values of Long-Lived Assets | Physical locations and values of the Company’s long-lived assets are presented below: As of As of Ukraine $ 74,902 $ 78,289 Belarus 70,700 75,422 United States 17,423 14,843 India 10,997 9,459 Poland 8,025 8,240 Hungary 5,612 5,339 Russia — 16,611 Other 31,980 28,011 Total $ 219,639 $ 236,214 |
Revenues by Customer Location | The table below presents information about the Company’s revenues by customer location for the three months ended March 31, 2022 and 2021: Three Months Ended 2022 2021 United States $ 657,027 $ 448,021 United Kingdom 153,197 93,464 Switzerland 81,830 67,568 Netherlands 50,179 33,032 Germany 36,389 22,025 Russia 30,692 27,656 Canada 27,029 21,835 Other locations 135,271 67,174 Total $ 1,171,614 $ 780,775 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss: Three Months Ended 2022 2021 Foreign currency translation Beginning balance $ (52,747) $ (28,168) Foreign currency translation (36,115) (13,581) Income tax benefit 5,563 3,050 Foreign currency translation, net of tax (30,552) (10,531) Ending balance $ (83,299) $ (38,699) Cash flow hedging instruments Beginning balance $ (3,417) $ 3,642 Unrealized loss in fair value (46,557) (7,346) Net loss reclassified into Cost of revenues (exclusive of depreciation and amortization) 904 2,066 Net loss reclassified into Foreign exchange loss 43,854 — Income tax benefit 408 1,199 Cash flow hedging instruments, net of tax (1,391) (4,081) Ending balance (1) $ (4,808) $ (439) Defined benefit plans Beginning balance $ 1,957 $ (986) Actuarial losses — (811) Income tax benefit — 185 Defined benefit plans, net of tax — (626) Ending balance $ 1,957 $ (1,612) Accumulated other comprehensive loss $ (86,150) $ (40,750) |
BUSINESS AND SUMMARY OF SIGNI_3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Risks and Uncertainties) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Concentration Risk [Line Items] | ||
Cash and cash equivalents | $ 1,276,461 | $ 1,446,625 |
Russia | ||
Concentration Risk [Line Items] | ||
Cash and cash equivalents | 59,500 | |
Belarus | ||
Concentration Risk [Line Items] | ||
Cash and cash equivalents | 51,000 | |
Restricted cash | 28,900 | |
Ukraine | ||
Concentration Risk [Line Items] | ||
Cash and cash equivalents | $ 28,300 |
IMPACT OF THE INVASION OF UKR_3
IMPACT OF THE INVASION OF UKRAINE - Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 04, 2022 | Dec. 31, 2021 | |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Property and equipment, net | $ 219,639,000 | $ 236,214,000 | ||
Operating lease, right-of-use asset | 175,514,000 | 184,841,000 | ||
Commitments related to operating lease agreements that have not yet commenced | 12,300,000 | |||
Goodwill impairment | 686,000 | |||
Bad debt expense | 8,675,000 | $ 2,925,000 | ||
Impairment charges | 20,401,000 | $ 0 | ||
Humanitarian Commitment | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Nonoperating expense | 25,700,000 | |||
Humanitarian Commitment | Cost of revenues (exclusive of depreciation and amortization) | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Nonoperating expense | 19,200,000 | |||
Humanitarian Commitment | Selling, general and administrative expenses | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Nonoperating expense | 6,500,000 | |||
Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Property and equipment, net | 74,902,000 | 78,289,000 | ||
Operating lease, right-of-use asset | 18,800,000 | |||
Ukraine | Cost of revenues (exclusive of depreciation and amortization) | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Standby resources expense | 2,600,000 | |||
Ukraine | Selling, general and administrative expenses | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Standby resources expense | 18,700,000 | |||
Ukraine | Other Income/(Expense) | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Impairment charges | 1,300,000 | |||
Ukraine | Humanitarian Commitment | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Commitments related to operating lease agreements that have not yet commenced | $ 100,000,000 | |||
Russia | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Property and equipment, net | 0 | $ 16,611,000 | ||
Impairment of property, plant and equipment | 15,100,000 | |||
Operating Lease, Impairment Loss | 3,800,000 | |||
Goodwill impairment | 700,000 | |||
Bad debt expense | 8,400,000 | |||
Building | Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Property and equipment, net | 74,900,000 | |||
Construction in Progress | Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Property and equipment, net | 50,400,000 | |||
Computer Equipment | Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Property and equipment, net | 15,300,000 | |||
Furniture and Fixtures | Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Property and equipment, net | 8,500,000 | |||
Leasehold Improvements | Ukraine | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Property and equipment, net | $ 700,000 |
IMPACT OF THE INVASION OF UKR_4
IMPACT OF THE INVASION OF UKRAINE - Assets and Liabilities (Details) - Russia - Discontinued Operations, Held-for-sale or Disposed of by Sale $ in Thousands | Mar. 31, 2022USD ($) |
Unusual or Infrequent Item, or Both [Line Items] | |
Cash and cash equivalents | $ 59,456 |
Allowance | 8,600 |
Trade receivables and contract assets, net of allowance of $8.4 million | 19,802 |
Prepaid and other current assets | 3,400 |
Deferred tax assets | 647 |
Other noncurrent assets | 30 |
Total assets in Russia | 83,335 |
Accounts payable | 1,056 |
Accrued compensation and benefits expenses | 48,964 |
Accrued expenses and other current liabilities | 4,761 |
Income taxes payable, current | 195 |
Operating lease liabilities | 3,199 |
Other noncurrent liabilities | 994 |
Total liabilities in Russia | $ 59,169 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) $ in Thousands | Nov. 30, 2021USD ($) | Nov. 03, 2021USD ($) | Jul. 23, 2021USD ($) | Apr. 02, 2021USD ($)specialist | Mar. 31, 2022USD ($)business | Dec. 31, 2021USD ($)business |
PolSource S.A. | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of voting interests acquired | 100.00% | |||||
Number of specialists in acquired entity (more than) | specialist | 350 | |||||
Purchase price including contingent consideration | $ 148,200 | |||||
Contingent consideration fair value | 35,400 | |||||
Maximum amount of earnout payable | 45,000 | |||||
Intangible assets | 15,790 | |||||
Finite-lived intangible assets acquired, amount | 15,790 | |||||
PolSource S.A. | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired, amount | $ 14,790 | |||||
CORE SE | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of voting interests acquired | 100.00% | |||||
Purchase price including contingent consideration | $ 50,200 | |||||
Contingent consideration fair value | 4,000 | |||||
Maximum amount of earnout payable | 8,100 | |||||
Deferred consideration | 7,800 | |||||
Intangible assets | 8,368 | |||||
Finite-lived intangible assets acquired, amount | 8,368 | |||||
CORE SE | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired, amount | $ 7,779 | |||||
Emakina Group SA | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of voting interests acquired | 1.31% | 98.69% | ||||
Fair value of contingent consideration | $ 400 | |||||
Cash consideration | $ 1,700 | $ 143,400 | ||||
Intangible assets | 30,488 | |||||
Finite-lived intangible assets acquired, amount | 30,488 | |||||
Emakina Group SA | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired, amount | $ 27,822 | |||||
Other 2021 acquisitions purchase accounting adjustment | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration fair value | $ 17,600 | |||||
Maximum amount of earnout payable | $ 30,200 | |||||
Number of acquisitions | business | 4 | |||||
Purchase price including contingent consideration | $ 65,200 | |||||
Intangible assets | $ 14,100 | |||||
Other 2021 acquisitions purchase accounting adjustment | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated future operating results, period | 12 months | |||||
Other 2021 acquisitions purchase accounting adjustment | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated future operating results, period | 48 months | |||||
2022 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price including contingent consideration | 10,600 | |||||
Contingent consideration fair value | $ 1,800 | |||||
Number of acquisitions | business | 1 | |||||
2022 Acquisitions | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired, amount | $ 2,300 |
ACQUISITIONS (Estimated Fair Va
ACQUISITIONS (Estimated Fair Values of the Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Nov. 03, 2021 | Jul. 23, 2021 | Apr. 02, 2021 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 534,136 | $ 530,723 | |||
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 | 125,265 | ||||
Intangible assets | 15,790 | ||||
Property and equipment and other noncurrent assets | 461 | ||||
Total assets acquired | 157,629 | ||||
Accounts payable, accrued expenses and other current liabilities | 5,337 | ||||
Short-term debt | 0 | ||||
Long-term debt | 0 | ||||
Operating lease liabilities, noncurrent | 157 | ||||
Other noncurrent liabilities | 3,963 | ||||
Total liabilities assumed | 9,457 | ||||
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 | 5,523 | ||||
Goodwill | 23,354 | ||||
Intangible assets | 8,368 | ||||
Property and equipment and other noncurrent assets | 4,585 | ||||
Total assets acquired | 63,379 | ||||
Accounts payable, accrued expenses and other current liabilities | 8,589 | ||||
Short-term debt | 0 | ||||
Long-term debt | 0 | ||||
Operating lease liabilities, noncurrent | 2,056 | ||||
Other noncurrent liabilities | 2,525 | ||||
Total liabilities assumed | 13,170 | ||||
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 | 137,037 | ||||
Intangible assets | 30,488 | ||||
Property and equipment and other noncurrent assets | 17,024 | ||||
Total assets acquired | 227,189 | ||||
Accounts payable, accrued expenses and other current liabilities | 36,411 | ||||
Short-term debt | 13,657 | ||||
Long-term debt | 8,874 | ||||
Operating lease liabilities, noncurrent | 5,397 | ||||
Other noncurrent liabilities | 8,363 | ||||
Total liabilities assumed | 72,702 | ||||
Noncontrolling interest in consolidated subsidiaries | 10,469 | ||||
Net assets acquired | $ 144,018 |
ACQUISITIONS (Estimated Fair _2
ACQUISITIONS (Estimated Fair Values And Useful Lives Of Intangible Assets) (Details) - USD ($) $ in Thousands | Nov. 03, 2021 | Jul. 23, 2021 | Apr. 02, 2021 |
PolSource | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired, amount | $ 15,790 | ||
CORE | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired, amount | $ 8,368 | ||
Emakina | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired, amount | $ 30,488 | ||
Customer relationships | PolSource | |||
Business Acquisition [Line Items] | |||
Weighted Average Useful Life (in years) | 6 years | ||
Finite-lived intangible assets acquired, amount | $ 14,790 | ||
Customer relationships | CORE | |||
Business Acquisition [Line Items] | |||
Weighted Average Useful Life (in years) | 6 years | ||
Finite-lived intangible assets acquired, amount | $ 7,779 | ||
Customer relationships | Emakina | |||
Business Acquisition [Line Items] | |||
Weighted Average Useful Life (in years) | 7 years | ||
Finite-lived intangible assets acquired, amount | $ 27,822 | ||
Trade names | PolSource | |||
Business Acquisition [Line Items] | |||
Weighted Average Useful Life (in years) | 3 years | ||
Finite-lived intangible assets acquired, amount | $ 1,000 | ||
Trade names | CORE | |||
Business Acquisition [Line Items] | |||
Weighted Average Useful Life (in years) | 5 years | ||
Finite-lived intangible assets acquired, amount | $ 589 | ||
Trade names | Emakina | |||
Business Acquisition [Line Items] | |||
Weighted Average Useful Life (in years) | 3 years | ||
Finite-lived intangible assets acquired, amount | $ 2,666 |
GOODWILL (Goodwill Roll Forward
GOODWILL (Goodwill Roll Forward) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2022 | $ 530,723 |
Goodwill impairment | (686) |
Effect of net foreign currency exchange rate changes | (4,460) |
Balance as of March 31, 2022 | 534,136 |
Emakina Group SA | |
Goodwill [Roll Forward] | |
2022 acquisition | 423 |
PolSource S.A. | |
Goodwill [Roll Forward] | |
2022 acquisition | (74) |
CORE SE | |
Goodwill [Roll Forward] | |
2022 acquisition | 120 |
Other 2021 acquisitions purchase accounting adjustment | |
Goodwill [Roll Forward] | |
2022 acquisition | (377) |
2022 Acquisitions | |
Goodwill [Roll Forward] | |
Acquisition | 8,467 |
North America | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2022 | 217,594 |
Goodwill impairment | 0 |
Effect of net foreign currency exchange rate changes | (80) |
Balance as of March 31, 2022 | 216,951 |
North America | Emakina Group SA | |
Goodwill [Roll Forward] | |
2022 acquisition | 0 |
North America | PolSource S.A. | |
Goodwill [Roll Forward] | |
2022 acquisition | (44) |
North America | CORE SE | |
Goodwill [Roll Forward] | |
2022 acquisition | 0 |
North America | Other 2021 acquisitions purchase accounting adjustment | |
Goodwill [Roll Forward] | |
2022 acquisition | (519) |
North America | 2022 Acquisitions | |
Goodwill [Roll Forward] | |
Acquisition | 0 |
Europe | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2022 | 312,413 |
Goodwill impairment | 0 |
Effect of net foreign currency exchange rate changes | (4,350) |
Balance as of March 31, 2022 | 317,185 |
Europe | Emakina Group SA | |
Goodwill [Roll Forward] | |
2022 acquisition | 423 |
Europe | PolSource S.A. | |
Goodwill [Roll Forward] | |
2022 acquisition | (30) |
Europe | CORE SE | |
Goodwill [Roll Forward] | |
2022 acquisition | 120 |
Europe | Other 2021 acquisitions purchase accounting adjustment | |
Goodwill [Roll Forward] | |
2022 acquisition | 142 |
Europe | 2022 Acquisitions | |
Goodwill [Roll Forward] | |
Acquisition | 8,467 |
Russia | |
Goodwill [Roll Forward] | |
Balance as of January 1, 2022 | 716 |
Goodwill impairment | (686) |
Effect of net foreign currency exchange rate changes | (30) |
Balance as of March 31, 2022 | 0 |
Russia | Emakina Group SA | |
Goodwill [Roll Forward] | |
2022 acquisition | 0 |
Russia | PolSource S.A. | |
Goodwill [Roll Forward] | |
2022 acquisition | 0 |
Russia | CORE SE | |
Goodwill [Roll Forward] | |
2022 acquisition | 0 |
Russia | Other 2021 acquisitions purchase accounting adjustment | |
Goodwill [Roll Forward] | |
2022 acquisition | 0 |
Russia | 2022 Acquisitions | |
Goodwill [Roll Forward] | |
Acquisition | $ 0 |
GOODWILL (Goodwill Accumulated
GOODWILL (Goodwill Accumulated Impairment Losses) (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Russia | ||
Goodwill [Line Items] | ||
Accumulated impairment loss | $ 2,900,000 | $ 2,200,000 |
North America | ||
Goodwill [Line Items] | ||
Accumulated impairment loss | 0 | 0 |
Europe | ||
Goodwill [Line Items] | ||
Accumulated impairment loss | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Financ
FAIR VALUE MEASUREMENTS (Financial Assets and Liabilities at Fair Value on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
RightsToAcquireNoncontrollingInterestInConsolidatedSubsidiariesFairValueDisclosure | $ 1,066 | $ 6,093 |
Total assets measured at fair value on a recurring basis | 1,211 | 7,522 |
Financial Liabilities: | ||
Contingent consideration | 27,992 | 23,114 |
Total liabilities measured at fair value on a recurring basis | 75,725 | 28,963 |
Foreign exchange contracts | ||
Financial Assets: | ||
Foreign exchange derivative assets | 145 | 1,429 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | 47,733 | 5,849 |
Level 1 | ||
Financial Assets: | ||
RightsToAcquireNoncontrollingInterestInConsolidatedSubsidiariesFairValueDisclosure | 0 | 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 contracts | ||
Financial Assets: | ||
Foreign exchange derivative assets | 0 | 0 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | 0 | 0 |
Level 2 | ||
Financial Assets: | ||
RightsToAcquireNoncontrollingInterestInConsolidatedSubsidiariesFairValueDisclosure | 0 | 0 |
Total assets measured at fair value on a recurring basis | 145 | 1,429 |
Financial Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 47,733 | 5,849 |
Level 2 | Foreign exchange contracts | ||
Financial Assets: | ||
Foreign exchange derivative assets | 145 | 1,429 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | 47,733 | 5,849 |
Level 3 | ||
Financial Assets: | ||
RightsToAcquireNoncontrollingInterestInConsolidatedSubsidiariesFairValueDisclosure | 1,066 | 6,093 |
Total assets measured at fair value on a recurring basis | 1,066 | 6,093 |
Financial Liabilities: | ||
Contingent consideration | 27,992 | 23,114 |
Total liabilities measured at fair value on a recurring basis | 27,992 | 23,114 |
Level 3 | Foreign exchange contracts | ||
Financial Assets: | ||
Foreign exchange derivative assets | 0 | 0 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Acquis
FAIR VALUE MEASUREMENTS (Acquisition-Related Contingent Consideration Roll Forward) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($) | Apr. 02, 2021 | |
Discount rate | PolSource S.A. | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.004 | |
Discount rate | 2022 Acquisitions | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.130 | |
Discount rate | CORE SE | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.130 | |
Discount rate | Other 2021 acquisitions purchase accounting adjustment | Minimum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.150 | |
Discount rate | Other 2021 acquisitions purchase accounting adjustment | Maximum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.220 | |
Level 3 | ||
Amount | ||
Contingent consideration liabilities as of January 1, 2022 | $ 23,114 | |
Effect of net foreign currency exchange rate changes | (279) | |
Contingent consideration liabilities as of March 31, 2022 | 27,992 | |
Level 3 | Changes in fair value of contingent consideration included in Interest and other (loss)/income, net | ||
Amount | ||
Changes in fair value of contingent consideration included in Interest and other (loss)/income, net | 3,373 | |
Level 3 | 2022 Acquisitions | ||
Amount | ||
Acquisition date fair value of contractual contingent liabilities - 2022 Acquisition | $ 1,784 |
FAIR VALUE MEASUREMENTS (Estima
FAIR VALUE MEASUREMENTS (Estimated Fair Values of the Financial Assets and Liabilities not Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Liabilities: | ||
Short term debt | $ 9,900 | $ 16,018 |
Recurring | Balance | ||
Financial Assets: | ||
Cash equivalents: | 63,817 | 78,302 |
Restricted cash | 31,464 | 2,722 |
Employee loans | 922 | 818 |
Financial Liabilities: | ||
Short term debt | 9,900 | 16,018 |
Other long term debt | 5,550 | 5,234 |
Recurring | Balance | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 63,817 | 78,302 |
Recurring | Balance | Revolving credit facility | Credit Facility 2021 | ||
Financial Liabilities: | ||
Borrowings under the 2021 Credit Agreement | 25,000 | 25,000 |
Recurring | Estimated Fair Value | ||
Financial Assets: | ||
Cash equivalents: | 63,817 | 78,302 |
Restricted cash | 31,464 | 2,722 |
Employee loans | 922 | 818 |
Financial Liabilities: | ||
Short term debt | 9,900 | 16,018 |
Other long term debt | 5,550 | 5,234 |
Recurring | Estimated Fair Value | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 63,817 | 78,302 |
Recurring | Estimated Fair Value | Revolving credit facility | Credit Facility 2021 | ||
Financial Liabilities: | ||
Borrowings under the 2021 Credit Agreement | 25,000 | 25,000 |
Recurring | Estimated Fair Value | Level 1 | ||
Financial Assets: | ||
Cash equivalents: | 63,817 | 78,302 |
Restricted cash | 31,464 | 2,722 |
Employee loans | 0 | 0 |
Financial Liabilities: | ||
Short term debt | 0 | 0 |
Other long term debt | 0 | 0 |
Recurring | Estimated Fair Value | Level 1 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 63,817 | 78,302 |
Recurring | Estimated Fair Value | Level 1 | Revolving credit facility | Credit Facility 2021 | ||
Financial Liabilities: | ||
Borrowings under the 2021 Credit Agreement | 0 | 0 |
Recurring | Estimated Fair Value | Level 2 | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Restricted cash | 0 | 0 |
Employee loans | 0 | 0 |
Financial Liabilities: | ||
Short term debt | 9,900 | 16,018 |
Other long term debt | 5,550 | 5,234 |
Recurring | Estimated Fair Value | Level 2 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Recurring | Estimated Fair Value | Level 2 | Revolving credit facility | Credit Facility 2021 | ||
Financial Liabilities: | ||
Borrowings under the 2021 Credit Agreement | 25,000 | 25,000 |
Recurring | Estimated Fair Value | Level 3 | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Restricted cash | 0 | 0 |
Employee loans | 922 | 818 |
Financial Liabilities: | ||
Short term debt | 0 | 0 |
Other long term debt | 0 | 0 |
Recurring | Estimated Fair Value | Level 3 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Recurring | Estimated Fair Value | Level 3 | Revolving credit facility | Credit Facility 2021 | ||
Financial Liabilities: | ||
Borrowings under the 2021 Credit Agreement | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Equity
FAIR VALUE MEASUREMENTS (Equity Securities Without Readily Determinable Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Restricted cash in Other noncurrent assets | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Carrying amount of equity securities that do not have readily determinable fair values | $ 27.5 | $ 27.5 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Fair Value of Derivative Instruments) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Foreign current loss | $ 22,785,000 | $ (2,299,000) | |
Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Financial collateral (including cash collateral) required to be posted | 0 | ||
Foreign exchange contracts | Designated as hedging instruments | Cash flow hedging | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 145,000 | $ 1,429,000 | |
Foreign exchange contracts | Designated as hedging instruments | Cash flow hedging | Accrued expenses and other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives | 6,364,000 | 5,849,000 | |
Foreign exchange contracts | Not Designated as Hedging Instrument | Cash flow hedging | Accrued expenses and other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives | 41,369,000 | $ 0 | |
Foreign Exchange Forward | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | |||
Derivatives, Fair Value [Line Items] | |||
Foreign current loss | $ 43,900,000 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Millions | Mar. 31, 2022USD ($) |
Lessee, Lease, Description [Line Items] | |
Commitments related to operating lease agreements that have not yet commenced | $ 12.3 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 month 6 days |
Lease term of lease agreements that have not yet commenced | 1 month 6 days |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 9 years 9 months 18 days |
Lease term of lease agreements that have not yet commenced | 9 years |
LEASES (Components of Lease Exp
LEASES (Components of Lease Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Total lease cost | $ 20,110 | $ 19,694 |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 15,884 | 17,256 |
Variable lease cost | 3,187 | 2,260 |
Short-term lease cost | $ 1,039 | $ 178 |
LEASES (Supplemental Cash Flow
LEASES (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used for operating leases | $ 14,803 | $ 17,645 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 19,484 | 38 |
Non-cash net decrease due to lease modifications: | ||
Operating lease right-of-use assets | 7,428 | 1,066 |
Operating lease liabilities | $ 7,434 | $ 1,066 |
LEASES (Weighted Average Lease
LEASES (Weighted Average Lease Terms and Discount Rates) (Details) | Mar. 31, 2022 | Mar. 31, 2021 |
Weighted average remaining lease term, in years: | ||
Operating leases | 5 years 8 months 12 days | 5 years 9 months 18 days |
Weighted average discount rate: | ||
Operating leases | 2.40% | 3.00% |
LEASES (Maturity of Operating L
LEASES (Maturity of Operating Lease Liabilities) (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2022 (excluding three months ended March 31, 2022) | $ 39,877 |
2023 | 39,984 |
2024 | 33,442 |
2025 | 25,346 |
2026 | 20,225 |
Thereafter | 41,165 |
Total lease payments | 200,039 |
Less: imputed interest | (12,204) |
Total | $ 187,835 |
DEBT (Details)
DEBT (Details) | Oct. 21, 2021USD ($) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Oct. 21, 2021GBP (£) |
Debt Instrument [Line Items] | ||||
Short-term debt | $ 9,900,000 | $ 16,018,000 | ||
Long-term debt | $ 30,550,000 | 30,234,000 | ||
Long-term Debt | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 1.30% | |||
Emakina Group SA | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 9,900,000 | |||
Long-term debt | $ 5,500,000 | |||
Emakina Group SA | Short-term Debt | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 1.60% | |||
Revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 700,000,000 | $ 700,000,000 | 700,000,000 | £ 150,000,000 |
Additional potential borrowing capacity | $ 1,000,000,000 | |||
Outstanding debt | $ 25,000,000 | $ 25,000,000 | ||
Interest rate | 1.30% | 1.00% | ||
Available borrowing capacity | $ 675,000,000 | $ 675,000,000 | ||
Revolving credit facility | Fed Funds Effective Rate Overnight Index Swap Rate | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate spread | 0.50% | |||
Revolving credit facility | Daily LIBOR Rate | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate spread | 1.00% |
REVENUES (Disaggregation of Rev
REVENUES (Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1,171,614 | $ 780,775 |
Revenues from performance obligations satisfied in previous period | 6,000 | |
Increase (decrease) in contract with customer, liability | 15,200 | |
Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,168,848 | 778,295 |
Transferred at a point of time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,766 | 2,480 |
Time-and-material | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,023,153 | 665,005 |
Fixed-price | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 143,563 | 111,282 |
Licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,832 | 3,670 |
Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,066 | 818 |
Travel & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 265,319 | 139,011 |
Financial Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 260,063 | 168,858 |
Business Information & Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 194,303 | 147,749 |
Software & Hi-Tech | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 189,483 | 147,064 |
Life Sciences & Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 123,803 | 91,115 |
Emerging Verticals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 138,643 | 86,978 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 686,793 | 470,321 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 421,950 | 259,372 |
CEE | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 33,289 | 30,134 |
APAC | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 29,582 | 20,948 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 687,711 | 474,853 |
North America | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 685,109 | 472,374 |
North America | Transferred at a point of time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,602 | 2,479 |
North America | Time-and-material | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 626,807 | 417,887 |
North America | Fixed-price | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 56,765 | 53,015 |
North America | Licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,635 | 3,535 |
North America | Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 504 | 416 |
North America | Travel & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 122,247 | 69,429 |
North America | Financial Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 120,335 | 69,740 |
North America | Business Information & Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 110,946 | 87,205 |
North America | Software & Hi-Tech | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 156,282 | 125,586 |
North America | Life Sciences & Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 111,371 | 75,589 |
North America | Emerging Verticals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 66,530 | 47,304 |
North America | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 659,776 | 454,767 |
North America | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 25,098 | 17,755 |
North America | CEE | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,054 | 1,856 |
North America | APAC | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 783 | 475 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 451,970 | 276,704 |
Europe | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 451,848 | 276,731 |
Europe | Transferred at a point of time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 122 | (27) |
Europe | Time-and-material | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 377,655 | 232,691 |
Europe | Fixed-price | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 73,608 | 43,566 |
Europe | Licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 145 | 54 |
Europe | Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 562 | 393 |
Europe | Travel & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 136,788 | 64,624 |
Europe | Financial Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 117,330 | 78,040 |
Europe | Business Information & Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 82,901 | 60,157 |
Europe | Software & Hi-Tech | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 32,454 | 20,973 |
Europe | Life Sciences & Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 12,282 | 15,351 |
Europe | Emerging Verticals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 70,215 | 37,559 |
Europe | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 25,960 | 14,663 |
Europe | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 396,753 | 241,554 |
Europe | CEE | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 458 | 14 |
Europe | APAC | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 28,799 | 20,473 |
Russia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 31,933 | 29,218 |
Russia | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 31,891 | 29,190 |
Russia | Transferred at a point of time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 42 | 28 |
Russia | Time-and-material | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 18,691 | 14,427 |
Russia | Fixed-price | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,190 | 14,701 |
Russia | Licensing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 52 | 81 |
Russia | Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 9 |
Russia | Travel & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,284 | 4,958 |
Russia | Financial Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 22,398 | 21,078 |
Russia | Business Information & Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 456 | 387 |
Russia | Software & Hi-Tech | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 747 | 505 |
Russia | Life Sciences & Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 150 | 175 |
Russia | Emerging Verticals | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,898 | 2,115 |
Russia | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,057 | 891 |
Russia | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 99 | 63 |
Russia | CEE | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 30,777 | 28,264 |
Russia | APAC | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 0 | $ 0 |
REVENUES (Revenue Expected to b
REVENUES (Revenue Expected to be Recognized in Future Related to Remaining Performance Obligations) (Details) - Fixed-price $ in Thousands | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future | $ 15,820 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future | $ 8,827 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
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 | $ 3,406 |
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 | $ 2,050 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future | $ 1,537 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
REVENUES (Contract Balances) (D
REVENUES (Contract Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Change in Contract with Customer, Liability [Abstract] | |||
Revenue recognized | $ 26,300 | $ 11,000 | |
Trade receivables and contract assets | |||
Change in Contract with Customer, Liability [Abstract] | |||
Contract assets | 17,525 | $ 13,798 | |
Accrued expenses and other current liabilities | |||
Change in Contract with Customer, Liability [Abstract] | |||
Contract liabilities | 37,321 | 39,810 | |
Other noncurrent liabilities | |||
Change in Contract with Customer, Liability [Abstract] | |||
Contract liabilities | $ 116 | $ 84 |
STOCK-BASED COMPENSATION (Compo
STOCK-BASED COMPENSATION (Components of Stock-Based Compensation Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 7,112 | $ 24,553 |
Cost of revenues (exclusive of depreciation and amortization) | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | (424) | 11,117 |
Selling, general and administrative expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 7,536 | $ 13,436 |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Options Activity) (Details) - Employee Stock Option $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Number of Options | |
Beginning balance (in shares) | shares | 2,318 |
Options granted (in shares) | shares | 105 |
Options exercised (in shares) | shares | (160) |
Ending balance (in shares) | shares | 2,263 |
Options vested and exercisable at period end (in shares) | shares | 1,976 |
Options expected to vest at period end (in shares) | shares | 262 |
Weighted Average Exercise Price | |
Options outstanding at beginning of period (in usd per share) | $ / shares | $ 77.79 |
Options granted (in usd per share) | $ / shares | 272.17 |
Options exercised (in usd per share) | $ / shares | 22.72 |
Options outstanding at end of period (in usd per share) | $ / shares | 90.75 |
Options vested and exercisable at period end (in usd per share) | $ / shares | 64.10 |
Options expected to vest at period end (in usd per share) | $ / shares | $ 273.03 |
Aggregate Intrinsic Value | |
Options outstanding at March 31, 2022 | $ | $ 477,283 |
Options vested and exercisable as of March 31, 2022 | $ | 461,284 |
Options expected to vest as of March 31, 2022 | $ | $ 14,872 |
Weighted Average Remaining Contractual Term (in years) | |
Options outstanding at March 31, 2022 | 3 years 10 months 24 days |
Options vested and exercisable as of March 31, 2022 | 3 years 2 months 12 days |
Options expected to vest as of March 31, 2022 | 8 years 10 months 24 days |
STOCK-BASED COMPENSATION (Sto_2
STOCK-BASED COMPENSATION (Stock Option Additional Information) (Details) - Employee Stock Option $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining unrecognized stock-based compensation cost | $ 28.5 |
Weighted-average remaining requisite service period | 3 years 1 month 6 days |
STOCK-BASED COMPENSATION (Restr
STOCK-BASED COMPENSATION (Restricted Stock and Restricted Stock Units Activity) (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Service Based Awards | Equity Classified Award | Equity-Settled Award | Restricted Stock | |
Number of Shares | |
Unvested awards outstanding at period start (in shares) | shares | 9 |
Awards granted (in shares) | shares | 0 |
Awards modified (in shares) | shares | 0 |
Awards vested (in shares) | shares | 0 |
Awards forfeited/cancelled (in shares) | shares | 0 |
Unvested awards outstanding at period end (in shares) | shares | 9 |
Weighted Average Grant Date Fair Value Per Share | |
Unvested awards outstanding at period start (in usd per share) | $ / shares | $ 167.18 |
Awards granted (in usd per share) | $ / shares | 0 |
Awards modified (in usd per share) | $ / shares | 0 |
Awards vested (in usd per share) | $ / shares | 0 |
Awards forfeited/cancelled (in usd per share) | $ / shares | 0 |
Unvested awards outstanding at period end (in usd per share) | $ / shares | $ 167.18 |
Service Based Awards | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | |
Number of Shares | |
Unvested awards outstanding at period start (in shares) | shares | 576 |
Awards granted (in shares) | shares | 366 |
Awards modified (in shares) | shares | (3) |
Awards vested (in shares) | shares | (193) |
Awards forfeited/cancelled (in shares) | shares | (5) |
Unvested awards outstanding at period end (in shares) | shares | 741 |
Weighted Average Grant Date Fair Value Per Share | |
Unvested awards outstanding at period start (in usd per share) | $ / shares | $ 277.38 |
Awards granted (in usd per share) | $ / shares | 278.53 |
Awards modified (in usd per share) | $ / shares | 387.74 |
Awards vested (in usd per share) | $ / shares | 199.32 |
Awards forfeited/cancelled (in usd per share) | $ / shares | 368.35 |
Unvested awards outstanding at period end (in usd per share) | $ / shares | $ 297.23 |
Service Based Awards | Liability Classified Award | Cash-Settled Award | Restricted Stock Units | |
Number of Shares | |
Unvested awards outstanding at period start (in shares) | shares | 112 |
Awards granted (in shares) | shares | 42 |
Awards modified (in shares) | shares | 3 |
Awards vested (in shares) | shares | (52) |
Awards forfeited/cancelled (in shares) | shares | 0 |
Unvested awards outstanding at period end (in shares) | shares | 105 |
Weighted Average Grant Date Fair Value Per Share | |
Unvested awards outstanding at period start (in usd per share) | $ / shares | $ 217.28 |
Awards granted (in usd per share) | $ / shares | 266.75 |
Awards modified (in usd per share) | $ / shares | 220 |
Awards vested (in usd per share) | $ / shares | 181.18 |
Awards forfeited/cancelled (in usd per share) | $ / shares | 253.51 |
Unvested awards outstanding at period end (in usd per share) | $ / shares | $ 254.85 |
Performance Based Awards | Equity Classified Award | Equity-Settled Award | Restricted Stock | |
Number of Shares | |
Unvested awards outstanding at period start (in shares) | shares | 9 |
Awards granted (in shares) | shares | 0 |
Unvested awards outstanding at period end (in shares) | shares | 9 |
Weighted Average Grant Date Fair Value Per Share | |
Unvested awards outstanding at period start (in usd per share) | $ / shares | $ 165.87 |
Awards granted (in usd per share) | $ / shares | 0 |
Unvested awards outstanding at period end (in usd per share) | $ / shares | $ 165.87 |
Performance Based Awards | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | |
Number of Shares | |
Unvested awards outstanding at period start (in shares) | shares | 23 |
Awards granted (in shares) | shares | 1 |
Unvested awards outstanding at period end (in shares) | shares | 24 |
Weighted Average Grant Date Fair Value Per Share | |
Unvested awards outstanding at period start (in usd per share) | $ / shares | $ 339.69 |
Awards granted (in usd per share) | $ / shares | 556.68 |
Unvested awards outstanding at period end (in usd per share) | $ / shares | $ 344.04 |
STOCK-BASED COMPENSATION (Res_2
STOCK-BASED COMPENSATION (Restricted Stock and Restricted Stock Units Additional Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Apr. 15, 2022 | Mar. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 7,112 | $ 24,553 | |||
Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted (in shares) | 22 | ||||
Emakina Group SA | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity granted | 43,100 | ||||
Stock-based compensation expense | $ 1,100 | $ 1,200 | |||
Restricted Stock Units | Emakina Group SA | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 7 | 7 | |||
Employee Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining unrecognized stock-based compensation cost | $ 600 | $ 600 | |||
Weighted-average remaining requisite service period | 29 days | ||||
Stock based compensation expense | $ 1,700 | ||||
Equity Classified Award | Restricted Stock Units | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted (in shares) | 198 | ||||
Liability Classified Award | Restricted Stock Units | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted (in shares) | 7 | ||||
Liability Classified Award | Cash-Settled Award | Restricted Stock Units | Emakina Group SA | Subsequent Event | Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards vesting period | 4 years | ||||
Service Based Awards | Equity Classified Award | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining unrecognized stock-based compensation cost | 200 | $ 200 | |||
Weighted-average remaining requisite service period | 4 months 24 days | ||||
Service Based Awards | Equity Classified Award | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining unrecognized stock-based compensation cost | 183,200 | $ 183,200 | |||
Weighted-average remaining requisite service period | 3 years 2 months 12 days | ||||
Service Based Awards | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted (in usd per share) | $ 0 | ||||
Awards granted (in shares) | 0 | ||||
Service Based Awards | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted (in usd per share) | $ 278.53 | ||||
Awards granted (in shares) | 366 | ||||
Service Based Awards | Liability Classified Award | Cash-Settled Award | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining unrecognized stock-based compensation cost | 26,900 | $ 26,900 | |||
Weighted-average remaining requisite service period | 2 years 9 months 18 days | ||||
Awards granted (in usd per share) | $ 266.75 | ||||
Awards granted (in shares) | 42 | ||||
Performance Based Awards | Equity Classified Award | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining unrecognized stock-based compensation cost | 600 | $ 600 | |||
Weighted-average remaining requisite service period | 1 year 4 months 24 days | ||||
Performance Based Awards | Equity Classified Award | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining unrecognized stock-based compensation cost | $ 4,700 | $ 4,700 | |||
Weighted-average remaining requisite service period | 3 years | ||||
Performance Based Awards | Equity Classified Award | Restricted Stock Units | Emakina Group SA | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued in period (in shares) | 7 | ||||
Performance Based Awards | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted (in usd per share) | $ 0 | ||||
Awards granted (in shares) | 0 | ||||
Performance Based Awards | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted (in usd per share) | $ 556.68 | ||||
Awards granted (in shares) | 1 | ||||
Accrued compensation and benefits expenses | Service Based Awards | Liability Classified Award | Cash-Settled Award | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Liability associated with RSUs | $ 11,200 | $ 11,200 | $ 31,500 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 15.60% | 5.10% |
Excess tax benefit | $ 13.1 | $ 21.5 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator for basic and diluted earnings per share: | ||
Net income | $ 89,719 | $ 109,046 |
Numerator for basic earnings per share | 89,719 | 109,046 |
Numerator for diluted earnings per share | $ 89,719 | $ 109,046 |
Denominator: | ||
Weighted average common shares for basic earnings per share (in shares) | 56,915 | 56,170 |
Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP (in shares) | 2,026 | 2,608 |
Weighted average common shares for diluted earnings per share (in shares) | 58,941 | 58,778 |
Net income per share: | ||
Basic (in usd per share) | $ 1.58 | $ 1.94 |
Diluted (in usd per share) | $ 1.52 | $ 1.86 |
Anti-dilutive options not included in the calculation (in shares) | 137 | 16 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Building Acquisition Commitments) (Details) - USD ($) | Mar. 31, 2022 | Mar. 04, 2022 |
Other Commitments [Line Items] | ||
Commitment | $ 12,300,000 | |
Ukraine | Humanitarian Commitment | ||
Other Commitments [Line Items] | ||
Commitment | $ 100,000,000 |
SEGMENT INFORMATION (Revenues f
SEGMENT INFORMATION (Revenues from External Customers and Operating Profit Before Unallocated Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,171,614 | $ 780,775 |
Total segment operating profit | 129,242 | 107,251 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating profit | 163,961 | 146,155 |
North America | ||
Segment Reporting Information [Line Items] | ||
Revenues | 687,711 | 474,853 |
North America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating profit | 126,734 | 94,103 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Revenues | 451,970 | 276,704 |
Europe | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating profit | 56,711 | 51,073 |
Russia | ||
Segment Reporting Information [Line Items] | ||
Revenues | 31,933 | 29,218 |
Russia | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating profit | $ (19,484) | $ 979 |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation of Segment Operating Profit to Consolidated Income Before Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segment operating profit: | $ 129,242 | $ 107,251 |
Stock-based compensation expense | (7,112) | (24,553) |
Interest and other (loss)/income, net | (165) | 5,374 |
Foreign exchange (loss)/gain | (22,785) | 2,299 |
Income before provision for income taxes | 106,292 | 114,924 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segment operating profit: | 163,961 | 146,155 |
Unallocated Amounts | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Stock-based compensation expense | (7,112) | (24,553) |
Amortization of intangibles assets | (5,244) | (3,140) |
Other acquisition-related expenses | (579) | (1,933) |
Other unallocated expenses | $ (21,784) | $ (9,278) |
SEGMENT INFORMATION (Physical L
SEGMENT INFORMATION (Physical Location and Values of Long-Lived Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | $ 219,639 | $ 236,214 |
Ukraine | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 74,902 | 78,289 |
Belarus | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 70,700 | 75,422 |
United States | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 17,423 | 14,843 |
India | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 10,997 | 9,459 |
Poland | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 8,025 | 8,240 |
Hungary | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 5,612 | 5,339 |
Russia | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 0 | 16,611 |
Other | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | $ 31,980 | $ 28,011 |
SEGMENT INFORMATION (Revenues b
SEGMENT INFORMATION (Revenues by Customer Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 1,171,614 | $ 780,775 |
United States | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 657,027 | 448,021 |
United Kingdom | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 153,197 | 93,464 |
Switzerland | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 81,830 | 67,568 |
Netherlands | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 50,179 | 33,032 |
Germany | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 36,389 | 22,025 |
Russia | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 30,692 | 27,656 |
Canada | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 27,029 | 21,835 |
Other locations | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 135,271 | $ 67,174 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,487,117 | |
Other comprehensive loss | (31,943) | $ (15,238) |
Ending balance | 2,552,103 | |
Foreign currency translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (52,747) | (28,168) |
Foreign currency translation | (36,115) | (13,581) |
Income tax benefit | 5,563 | 3,050 |
Other comprehensive loss | (30,552) | (10,531) |
Ending balance | (83,299) | (38,699) |
Cash flow hedging instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (3,417) | 3,642 |
Unrealized loss in fair value | (46,557) | (7,346) |
Net loss reclassified into Cost of revenues (exclusive of depreciation and amortization) | 904 | 2,066 |
Net loss reclassified into Foreign exchange loss | 43,854 | 0 |
Income tax benefit | 408 | 1,199 |
Other comprehensive loss | (1,391) | (4,081) |
Ending balance | (4,808) | (439) |
Defined benefit plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 1,957 | (986) |
Income tax benefit | 0 | 185 |
Other comprehensive loss | 0 | (626) |
Ending balance | 1,957 | (1,612) |
Actuarial losses | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Net loss reclassified into Cost of revenues (exclusive of depreciation and amortization) | 0 | (811) |
Accumulated other comprehensive loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Ending balance | $ (86,150) | $ (40,750) |