Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2018 | |
Document And Entity Information [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2018 |
Trading Symbol | G |
Entity Registrant Name | GENPACT LTD |
Entity Central Index Key | 1,398,659 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets | |||||||
Cash and cash equivalents | $ 424,226 | $ 504,468 | $ 388,186 | $ 422,623 | $ 450,907 | $ 461,788 | |
Accounts receivable, net | 703,066 | 693,085 | 602,871 | 615,265 | |||
Prepaid expenses and other current assets | 199,208 | [1],[2] | 236,342 | 227,635 | 189,149 | ||
Total current assets | 1,326,500 | 1,433,895 | 1,218,692 | 1,227,037 | |||
Property, plant and equipment, net | 205,035 | 207,030 | 212,562 | 193,218 | |||
Deferred tax assets | 81,734 | 76,929 | 61,029 | 70,143 | |||
Investment in equity affiliates | 919 | 886 | 769 | 4,800 | |||
Intangible assets, net | 125,781 | 131,590 | 69,070 | 78,946 | |||
Goodwill | 1,337,051 | 1,337,122 | 1,097,329 | 1,069,408 | $ 1,038,346 | ||
Contract cost assets | 162,435 | ||||||
Other assets | 157,672 | [1],[2] | 262,169 | 252,279 | 242,328 | ||
Total assets | 3,397,127 | 3,449,621 | 2,911,730 | 2,885,880 | |||
Current liabilities | |||||||
Short-term borrowings | 275,000 | 170,000 | 15,000 | 160,000 | |||
Current portion of long-term debt | 39,237 | 39,226 | 39,192 | 39,181 | |||
Accounts payable | 13,811 | 15,050 | 9,086 | 9,768 | |||
Income taxes payable | 40,026 | 30,026 | 33,091 | 24,159 | |||
Accrued expenses and other current liabilities | 503,116 | [1] | 584,482 | 426,953 | 498,247 | ||
Total current liabilities | 871,190 | 838,784 | 523,322 | 731,355 | |||
Long-term debt, less current portion | 996,999 | 1,006,687 | 1,035,778 | 698,152 | |||
Deferred tax liabilities | 7,083 | [3] | 6,747 | 1,815 | 2,415 | ||
Other liabilities | 155,858 | [1] | 168,609 | 165,561 | 162,790 | ||
Total liabilities | 2,031,130 | 2,020,827 | 1,726,476 | 1,594,712 | |||
Redeemable non-controlling interest | 4,750 | 3,610 | 4,520 | ||||
Shareholders' equity | |||||||
Preferred shares, value | |||||||
Common shares, value | 1,903 | 1,924 | 1,924 | 1,984 | |||
Additional paid-in capital | 1,422,897 | 1,421,368 | 1,347,265 | 1,384,468 | |||
Retained earnings | 321,916 | [3] | 355,982 | 219,776 | 358,121 | ||
Accumulated other comprehensive income (loss) | (380,719) | (355,230) | (387,321) | (457,925) | |||
Total equity | 1,365,997 | 1,424,044 | 1,181,644 | 1,286,648 | |||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | $ 3,397,127 | $ 3,449,621 | $ 2,911,730 | $ 2,885,880 | |||
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | ||||||
[2] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. | ||||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in an increase of $23,227 in the contract cost asset related to sales incentive programs (excluding the effect of the current period – refer to note d to the table below) as of January 1, 2018 with a corresponding impact of $17,924 on retained earnings (excluding the effect of the current period – refer to note d to the table below) and on deferred tax liability of $5,303. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | |||
Preferred shares, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 250,000,000 | 250,000,000 | 250,000,000 |
Preferred shares, issued | 0 | 0 | 0 |
Common shares, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Common shares, issued | 190,613,135 | 192,825,207 | 198,794,052 |
Common shares, outstanding | 190,613,135 | 192,825,207 | 198,794,052 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Statement [Abstract] | |||||||||||||
Net revenues | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 2,736,929 | $ 2,570,756 | $ 2,461,044 | |
Cost of revenue | 444,324 | 383,337 | 1,683,704 | 1,554,707 | 1,493,547 | ||||||||
Gross profit | 244,588 | 278,530 | 279,633 | 255,404 | 239,658 | 276,075 | 256,351 | 246,768 | 236,855 | 1,053,225 | 1,016,049 | 967,497 | |
Operating expenses: | |||||||||||||
Selling, general and administrative expenses | 171,109 | [1] | 160,858 | 689,847 | 653,029 | 608,114 | |||||||
Amortization of acquired intangible assets | 9,936 | 7,242 | 36,412 | 27,183 | 28,513 | ||||||||
Other operating (income) expense, net | (218) | (7,538) | (1,661) | (4,940) | (3,322) | ||||||||
Income from operations | 63,761 | 72,049 | 97,451 | 80,031 | 79,096 | 98,092 | 87,124 | 79,940 | 75,622 | 328,627 | 340,777 | 334,192 | |
Foreign exchange gains (losses), net | 4,798 | (4,913) | 1,996 | 2,630 | 5,269 | ||||||||
Interest income (expense), net | (8,100) | (5,493) | (31,735) | (16,184) | (31,267) | ||||||||
Other income (expense), net | 15,550 | 553 | 26,238 | 10,120 | 4,360 | ||||||||
Income before equity-method investment activity, net and income tax expense | 76,009 | 81,559 | 89,742 | 84,582 | 69,243 | 95,502 | 87,360 | 81,818 | 72,664 | 325,126 | 337,343 | 312,554 | |
Equity-method investment activity, net | (4,558) | (4,543) | (7,698) | (10,800) | |||||||||
Income before income tax expense | 76,009 | 64,685 | 320,583 | 329,645 | 301,754 | ||||||||
Income tax expense | 12,075 | 12,245 | 59,742 | 62,098 | 61,937 | ||||||||
Net income | 63,934 | [2] | 66,138 | 73,161 | 69,102 | 52,440 | 76,066 | 68,188 | 64,788 | 58,505 | 260,841 | 267,547 | 239,817 |
Net loss attributable to redeemable non-controlling interest | 761 | 944 | 584 | (156) | 898 | 232 | 734 | 882 | 289 | 2,270 | 2,137 | ||
Net income attributable to Genpact Limited shareholders | 64,695 | [2] | $ 67,082 | $ 73,745 | $ 68,946 | 53,338 | $ 76,298 | $ 68,922 | $ 65,670 | $ 58,794 | 263,111 | 269,684 | 239,817 |
Net income available to Genpact Limited common shareholders | $ 64,695 | $ 53,338 | $ 263,111 | $ 269,684 | $ 239,817 | ||||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||
Basic | $ 0.34 | $ 0.35 | $ 0.38 | $ 0.36 | $ 0.27 | $ 0.38 | $ 0.33 | $ 0.31 | $ 0.28 | $ 1.36 | $ 1.30 | $ 1.11 | |
Diluted | $ 0.33 | $ 0.34 | $ 0.38 | $ 0.36 | $ 0.26 | $ 0.38 | $ 0.33 | $ 0.31 | $ 0.27 | $ 1.34 | $ 1.28 | $ 1.09 | |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||
Basic | 192,816,626 | 192,795,534 | 192,124,366 | 191,469,593 | 199,069,528 | 200,341,922 | 206,146,007 | 210,178,050 | 210,780,165 | 193,864,755 | 206,861,536 | 216,606,542 | |
Diluted | 196,288,569 | 196,862,168 | 194,947,699 | 193,732,406 | 202,655,937 | 203,431,310 | 209,376,683 | 213,803,134 | 213,892,964 | 197,049,552 | 210,126,023 | 219,145,044 | |
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. | ||||||||||||
[2] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net income (loss) | $ 63,934 | [1] | $ 66,138 | $ 73,161 | $ 69,102 | $ 52,440 | $ 76,066 | $ 68,188 | $ 64,788 | $ 58,505 | $ 260,841 | $ 267,547 | $ 239,817 |
Other comprehensive income (loss): | |||||||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (18,932) | 18,858 | 12,611 | 43,742 | 22,880 | ||||||||
Retirement benefits, net of taxes | 3,787 | ||||||||||||
Other comprehensive income (loss) | (38,801) | ||||||||||||
Genpact Limited Shareholders | |||||||||||||
Net income (loss) | 64,695 | 53,338 | 263,111 | 269,684 | 239,817 | ||||||||
Other comprehensive income (loss): | |||||||||||||
Currency translation adjustments | (9,335) | 51,627 | 93,871 | (46,340) | (64,504) | ||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (18,932) | 18,858 | 12,611 | 43,742 | 22,880 | ||||||||
Retirement benefits, net of taxes | 513 | 119 | (3,787) | (4,042) | 2,823 | ||||||||
Other comprehensive income (loss) | (27,754) | 70,604 | 102,695 | (6,640) | (38,801) | ||||||||
Comprehensive income (loss) | 36,941 | 123,942 | 365,806 | 263,044 | $ 201,016 | ||||||||
Redeemable Non-controlling interest | |||||||||||||
Net income (loss) | (761) | (898) | (2,270) | (2,137) | |||||||||
Other comprehensive income (loss): | |||||||||||||
Currency translation adjustments | (424) | (12) | (341) | 104 | |||||||||
Other comprehensive income (loss) | (424) | (12) | (341) | 104 | |||||||||
Comprehensive income (loss) | $ (1,185) | $ (910) | $ (2,611) | $ (2,033) | |||||||||
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Consolidated Statements of Equi
Consolidated Statements of Equity and Redeemable Non-controlling Interest - USD ($) $ in Thousands | Total | Common shares | Additional Paid- in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Redeemable non-controlling interest | Total Equity | |
Beginning balance, value at Dec. 31, 2014 | $ 1,285,136 | $ 2,184 | $ 1,296,730 | $ 398,706 | $ (412,484) | |||
Beginning balance, value (in shares) at Dec. 31, 2014 | 218,684,205 | |||||||
Issuance of common shares on exercise of options | $ 13,564 | $ 14 | 13,550 | |||||
Issuance of common shares on exercise of options (in shares) | 1,428,605 | 1,428,605 | ||||||
Issuance of common shares under the employee stock purchase plan | $ 2,524 | $ 1 | 2,523 | |||||
Issuance of common shares under the employee stock purchase plan (in shares) | 121,485 | |||||||
Net settlement on vesting of restricted share units | $ (2,306) | $ 3 | (2,309) | |||||
Net settlement on vesting of restricted share units, shares | 259,776 | |||||||
Net settlement on vesting of performance units | $ 8 | (8) | ||||||
Net settlement on vesting of performance units, shares | 590 | 846,114 | ||||||
Stock repurchased and retired | $ (226,917) | $ (99) | (226,818) | |||||
Stock repurchased and retired, shares | (9,867,873) | |||||||
Expenses related to stock purchase | (197) | (197) | ||||||
Excess tax benefit on stock-based Compensation | 6,560 | 6,560 | ||||||
Stock-based compensation expense | 24,976 | 24,976 | ||||||
Comprehensive income: | ||||||||
Net income (loss) | 239,817 | 239,817 | $ 239,817 | |||||
Other comprehensive income (loss) | (38,801) | (38,801) | (38,801) | |||||
End balance, value at Dec. 31, 2015 | $ 1,304,356 | $ 2,111 | 1,342,022 | 411,508 | (451,285) | 1,304,356 | ||
End balance, value (in shares) at Dec. 31, 2015 | 211,472,312 | |||||||
Issuance of common shares on exercise of options | $ 10 | 14,886 | 14,896 | |||||
Issuance of common shares on exercise of options (in shares) | 994,155 | 994,155 | ||||||
Issuance of common shares under the employee stock purchase plan | $ 1 | 3,331 | 3,332 | |||||
Issuance of common shares under the employee stock purchase plan (in shares) | 146,685 | |||||||
Net settlement on vesting of restricted share units | $ 1 | (884) | (883) | |||||
Net settlement on vesting of restricted share units, shares | 121,682 | |||||||
Stock repurchased and retired | $ (139) | (345,061) | (345,200) | |||||
Stock repurchased and retired, shares | (13,940,782) | (13,940,782) | ||||||
Expenses related to stock purchase | $ (279) | (279) | (279) | |||||
Excess tax benefit on stock-based Compensation | 0 | |||||||
Deferred tax assets recognized on early adoption of ASU 2016-09 | 24,912 | 24,912 | ||||||
Stock-based compensation expense | 25,113 | 25,113 | ||||||
Acquisition of redeemable non controlling interest | $ 3,910 | |||||||
Change in fair value of redeemable non-controlling interest | (2,643) | 2,643 | (2,643) | |||||
Comprehensive income: | ||||||||
Net income (loss) | $ 267,547 | 269,684 | (2,137) | 269,684 | ||||
Other comprehensive income (loss) | (6,640) | 104 | (6,640) | |||||
End balance, value at Dec. 31, 2016 | $ 1,984 | 1,384,468 | 358,121 | (457,925) | 4,520 | 1,286,648 | ||
End balance, value (in shares) at Dec. 31, 2016 | 198,794,052 | 198,794,052 | ||||||
Issuance of common shares on exercise of options | $ 5 | 6,540 | 6,545 | |||||
Issuance of common shares on exercise of options (in shares) | 455,835 | |||||||
Issuance of common shares under the employee stock purchase plan | $ 1 | 1,217 | 1,218 | |||||
Issuance of common shares under the employee stock purchase plan (in shares) | 55,788 | |||||||
Net settlement on vesting of restricted share units | $ 1 | (1) | ||||||
Net settlement on vesting of restricted share units, shares | 76,865 | |||||||
Net settlement on vesting of performance units | $ 7 | (9,946) | (9,939) | |||||
Net settlement on vesting of performance units, shares | 731,701 | |||||||
Stock repurchased and retired | $ (74) | (40,000) | (179,710) | (219,784) | ||||
Stock repurchased and retired, shares | (808,293) | (7,387,240) | ||||||
Expenses related to stock purchase | $ (16) | (16) | (16) | |||||
Stock-based compensation expense | 4,986 | 4,986 | ||||||
Comprehensive income: | ||||||||
Net income (loss) | $ 52,440 | 53,338 | (898) | 53,338 | ||||
Other comprehensive income (loss) | 70,604 | (12) | 70,604 | |||||
Dividend | (11,957) | (11,957) | ||||||
End balance, value at Mar. 31, 2017 | $ 1,924 | 1,347,265 | 219,776 | (387,321) | 3,610 | 1,181,644 | ||
End balance, value (in shares) at Mar. 31, 2017 | 192,727,001 | |||||||
Beginning balance, value at Dec. 31, 2016 | $ 1,984 | 1,384,468 | 358,121 | (457,925) | 4,520 | 1,286,648 | ||
Beginning balance, value (in shares) at Dec. 31, 2016 | 198,794,052 | 198,794,052 | ||||||
Issuance of common shares on exercise of options | $ 7 | 10,765 | 10,772 | |||||
Issuance of common shares on exercise of options (in shares) | 743,045 | 743,045 | ||||||
Issuance of common shares under the employee stock purchase plan | $ 2 | 4,754 | 4,756 | |||||
Issuance of common shares under the employee stock purchase plan (in shares) | 190,435 | |||||||
Net settlement on vesting of restricted share units | $ 1 | (358) | (357) | |||||
Net settlement on vesting of restricted share units, shares | 103,220 | |||||||
Net settlement on vesting of performance units | $ 7 | (9,946) | (9,939) | |||||
Net settlement on vesting of performance units, shares | 731,701 | 731,701 | ||||||
Stock repurchased and retired | $ (77) | (4,000) | (215,707) | (219,784) | ||||
Stock repurchased and retired, shares | (808,293) | (7,737,246) | ||||||
Expenses related to stock purchase | $ (16) | (16) | (16) | |||||
Excess tax benefit on stock-based Compensation | 0 | |||||||
Stock-based compensation expense | 35,685 | 35,685 | ||||||
Change in fair value of redeemable non-controlling interest | (2,841) | 2,841 | (2,841) | |||||
Comprehensive income: | ||||||||
Net income (loss) | $ 260,841 | 263,111 | (2,270) | 263,111 | ||||
Other comprehensive income (loss) | 102,695 | (341) | 102,695 | |||||
Dividend | (46,686) | (46,686) | ||||||
End balance, value at Dec. 31, 2017 | $ 1,924 | 1,421,368 | 355,982 | (355,230) | 4,750 | 1,424,044 | ||
End balance, value (in shares) at Dec. 31, 2017 | 192,825,207 | 192,825,207 | ||||||
Cumulative Effect Of New Accounting Principle In Period Of Adoption (ASU 2014-09) at Dec. 31, 2017 | 17,924 | 17,924 | ||||||
Cumulative Effect Of New Accounting Principle In Period Of Adoption (ASU 2018-02) at Dec. 31, 2017 | (2,265) | 2,265 | ||||||
Stockholders Equity Including Portion Attributable To Noncontrolling Interest Adjusted Balance1 at Dec. 31, 2017 | $ 1,924 | 1,421,368 | 373,906 | (355,230) | 4,750 | 1,441,968 | ||
Issuance of common shares on exercise of options | $ 2 | 2,549 | 2,551 | |||||
Issuance of common shares on exercise of options (in shares) | 161,837 | 161,837 | ||||||
Issuance of common shares under the employee stock purchase plan | $ 1 | 1,650 | 1,651 | |||||
Issuance of common shares under the employee stock purchase plan (in shares) | 58,476 | |||||||
Net settlement on vesting of restricted share units | $ 1 | (1) | ||||||
Net settlement on vesting of restricted share units, shares | 55,631 | |||||||
Net settlement on vesting of performance units | $ 7 | (13,291) | (13,284) | |||||
Net settlement on vesting of performance units, shares | 691,958 | 691,958 | ||||||
Stock repurchased and retired | $ (32) | 4,000 | (99,952) | (95,984) | ||||
Stock repurchased and retired, shares | (3,015,999) | (3,179,974) | ||||||
Expenses related to stock purchase | $ (60) | (60) | (60) | |||||
Stock-based compensation expense | 7,787 | 7,787 | ||||||
Payment for purchase of redeemable non-controlling interest | (1,165) | (3,565) | (1,165) | |||||
Comprehensive income: | ||||||||
Net income (loss) | $ 63,934 | [1] | 64,695 | (761) | 64,695 | |||
Other comprehensive income (loss) | (27,754) | $ (424) | (27,754) | |||||
Dividend | (14,408) | (14,408) | ||||||
End balance, value at Mar. 31, 2018 | $ 1,903 | $ 1,422,897 | $ 321,916 | $ (380,719) | $ 1,365,997 | |||
End balance, value (in shares) at Mar. 31, 2018 | 190,613,135 | 190,613,135 | ||||||
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Operating activities | ||||||
Net income attributable to Genpact Limited shareholders | $ 64,695 | [1] | $ 53,338 | $ 263,111 | $ 269,684 | $ 239,817 |
Net loss attributable to redeemable non-controlling interest | (761) | (898) | (2,270) | (2,137) | ||
Net income | 63,934 | [1] | 52,440 | 260,841 | 267,547 | 239,817 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||
Depreciation and amortization | 15,836 | 14,139 | 58,503 | 54,553 | 54,286 | |
Amortization of debt issuance costs (including loss on extinguishment of debt) | 488 | 375 | 1,884 | 1,531 | 13,546 | |
Amortization of acquired intangible assets | 9,936 | 7,242 | 36,412 | 27,183 | 28,513 | |
Write-down of intangible assets and property, plant and equipment | 9,311 | 11,195 | 10,714 | |||
Reserve for doubtful receivables | (103) | 9,819 | 7,282 | 2,449 | ||
Unrealized (gain) loss on revaluation of foreign currency asset/liability | (8,525) | 8,757 | (11,830) | 1,717 | (4,999) | |
Equity-method investment activity, net | 4,558 | 4,543 | 7,698 | 10,800 | ||
Excess tax benefit on stock-based compensation | (6,560) | |||||
Stock-based compensation expense | 7,787 | 4,986 | 35,685 | 25,113 | 24,976 | |
Deferred income taxes | (4,625) | (2,890) | (10,391) | 30,454 | (18,713) | |
Loss (gain) on divestiture | 5,668 | (5,214) | ||||
Others, net | (28) | (4,301) | (4,785) | (41) | (238) | |
Change in operating assets and liabilities: | ||||||
Decrease (increase) in accounts receivable | (6,025) | 19,649 | (57,267) | (48,612) | (78,923) | |
Increase in prepaid expenses, other current assets, contract cost assets and other assets | (37,008) | (12,025) | (28,381) | (62,852) | (32,602) | |
Decrease in accounts payable | (1,224) | (928) | (2,155) | (463) | (3,988) | |
Increase (decrease) in accrued expenses, other current liabilities and other liabilities | (77,734) | [2] | (69,131) | 46,581 | 27,977 | 69,606 |
Increase in income taxes payable | 9,969 | 8,157 | 4,640 | 704 | 18,757 | |
Net cash provided by/(used for) operating activities | (27,322) | 31,028 | 359,078 | 345,772 | 327,441 | |
Investing activities | ||||||
Purchase of property, plant and equipment | (18,706) | (17,084) | (57,231) | (81,926) | (62,173) | |
Payment for internally generated intangible assets | (4,365) | (2,614) | (16,441) | (6,846) | ||
Proceeds from sale of property, plant and equipment | 144 | 389 | 1,738 | 547 | 1,486 | |
Investment in equity affiliates | (467) | (496) | (9,620) | (18,423) | ||
Payment for business acquisitions, net of cash acquired | (9,237) | (284,822) | (45,162) | (21,363) | ||
Proceeds from divestiture of business, net of cash divested | (4,738) | 17,242 | ||||
Payment for purchase of redeemable non-controlling interest | (4,730) | |||||
Net cash used for investing activities | (27,657) | (29,013) | (361,990) | (125,765) | (100,473) | |
Financing activities | ||||||
Repayment of capital lease obligations | (537) | (494) | (2,708) | (1,793) | (2,035) | |
Payment of debt issuance cost | (1,481) | (2,630) | (6,584) | |||
Proceeds from long-term debt | 350,000 | 350,000 | 800,000 | |||
Repayment of long-term debt | (10,000) | (10,000) | (40,000) | (40,000) | (684,875) | |
Proceeds from short-term borrowings | 105,000 | 40,000 | 295,000 | 200,000 | 1,451,500 | |
Repayment of short-term borrowings | (185,000) | (285,000) | (61,500) | (1,565,000) | ||
Proceeds from issuance of common shares under stock-based compensation plans | 4,202 | 7,761 | 15,528 | 18,228 | 16,088 | |
Payment for net settlement of stock-based awards | (13,284) | (9,939) | (10,296) | (769) | (7,194) | |
Payment of earn-out/deferred consideration | (1,476) | (1,097) | (6,219) | (1,485) | (230) | |
Dividend paid | (14,408) | (11,957) | (46,686) | |||
Payment for stock purchased and retired | (95,984) | (219,784) | (219,784) | (345,200) | (226,917) | |
Payment for expenses related to stock purchase | (60) | (16) | (16) | (279) | (197) | |
Excess tax benefit on stock-based compensation | 6,560 | |||||
Net cash (used for) provided by financing activities | (26,547) | (42,007) | 47,189 | (232,798) | (218,884) | |
Effect of exchange rate changes | 1,284 | 5,555 | 37,568 | (15,493) | (18,965) | |
Net increase (decrease) in cash and cash equivalents | (81,526) | (39,992) | 44,277 | (12,791) | 8,084 | |
Cash and cash equivalents at the beginning of the period | 504,468 | 422,623 | 422,623 | 450,907 | 461,788 | |
Cash and cash equivalents at the end of the period | 424,226 | 388,186 | 504,468 | 422,623 | 450,907 | |
Supplementary information | ||||||
Cash paid during the period for interest | 13,194 | 5,324 | 27,853 | 17,860 | 20,950 | |
Cash paid during the period for income taxes | 24,157 | 16,426 | 66,238 | 46,731 | 72,102 | |
Property, plant and equipment acquired under capital lease obligations | $ 297 | $ 576 | $ 2,318 | $ 2,206 | $ 1,656 | |
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. | |||||
[2] | Upon the adoption of ASC 606 the Company offset certain contract assets against contract liabilities related to the same contract in an amount of $3,079. |
Organization
Organization | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Organization | 1. Organization The Company is a global professional services firm that drives digitally-led innovation and runs digitally-enabled intelligent operations for its clients, guided by its experience running thousands of processes for hundreds of Fortune Global 500 clients. The Company has over 78,000 employees serving clients in key industry verticals from more than 20 countries. The business of the Company was initially conducted through various entities and divisions of GE. The Company began operating independently in 2004 when GE spun off the Company’s operations. In August 2007, the Company completed an initial public offering of its common shares. In 2012, affiliates of Bain Capital Investors, LLC, or Bain Capital, and their co-investors acquired the majority of the remaining interests held by the Company’s initial investors. | 1. Organization The Company is a global professional services firm that drives digitally-led innovation and runs digitally-enabled intelligent operations for its clients, guided by its experience running thousands of processes for hundreds of Fortune Global 500 clients. The Company has over 78,000 employees serving clients in key industry verticals from more than 20 countries. |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of preparation and principles of consolidation The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year. The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding changes to additional paid in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income. (b) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, variable consideration, and other obligations for revenue recognition 2. Summary of significant accounting policies (Continued) and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. (c) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Other intangible assets 2-9 years 2. Summary of significant accounting policies (Continued) Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Other intangible assets 2-9 years Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the consolidated statements of income. (d) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 11% and 10% of receivables as of December 31, 2017 and March 31, 2018, respectively. GE accounted for 11% and 8% of total revenue for the three months ended March 31, 2017 and 2018, respectively. (e) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and clients’ financial condition, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. (f) Changes in accounting policies Except as described below, the Company has applied accounting policies consistently to all periods presented in these consolidated financial statements. The Company adopted Topic 606, Revenue from Contracts with Customers, effective January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied Topic 606 using the modified retrospective method, which involves recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the Company’s opening equity balance as of January 1, 2018. Therefore, comparative information has not been adjusted and continues to be reported under Topic 605. As a result of the Company’s adoption of this new standard, certain sales incentive programs meet the requirements for capitalization. Such costs are amortized over the period of expected benefit rather than expensed as incurred per the Company’s prior practice. The cumulative impact of the adoption of this standard resulted in an increase in retained earnings of $17,924 as of January 1, 2018 with a corresponding impact on contract cost assets of $23,227 and deferred tax liability of $5,303 2. Summary of significant accounting policies (Continued) Revenue Recognition The Company derives its revenue primarily from business process outsourcing and information technology services, which primarily are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when the promised services are delivered to customers for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those services. Revenues from services rendered under time-and materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. Customer contracts can also include incentive payments received for discrete benefits delivered or promised to be delivered to clients or service level agreements that could result in credits or refunds to the customer. Revenues relating to such arrangements are accounted for as variable consideration when the amount of revenue to be recognized can be estimated to the extent that it is probable that a significant reversal of any incremental revenue will not occur The Company has deferred revenue attributable to certain process transition activities, with respect to its customers where such activities do not represent separate performance obligation. Revenues relating to such transition activities are classified under contract liabilities and subsequently recognized ratably over the period in which the related services are performed. Costs relating to such transition activities are fulfillment costs which are directly related to the contract and result in generation or enhancement of resources and are expected to be recoverable under the contract and thereby classified as contract cost assets and are recognized ratably over the estimated expected period of benefit, under Cost of Revenue. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues. Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company enters into multiple-element revenue arrangements in which a client may purchase a combination of products or services. Revenue from multiple-element arrangements is recognized, for each element, based on allocation of the transaction price to each performance obligation on a relative standalone basis. Certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription based. Revenue from distinct perpetual licenses is recognized upfront at the point in time when the software is made available to the customer. Revenue from subscription based licenses is recognized as ratably over the subscription term. All incremental and direct costs incurred for acquiring contracts, such as certain sales commission, are classified as contract cost asset. Such costs are amortized over the expected period of benefit and recorded under Selling, General and Administrative Expenses. Other upfront fees paid to customers are classified as contract asset. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and reduced from revenue. Timing of revenue recognition may differ from the timing of invoicing to customers. If payment is received in respect of services prior to the delivery of services, the payment is recognized as an advance from customers and classified as contract liabilities. Contract assets and contract liabilities relating to the same customer contract have been offset and presented on a net basis in the consolidated financial statements. See note 19 for information and related disclosures regarding contract balances. 2. Summary of significant accounting policies (Continued) For a description of the Company’s revenue recognition accounting policy in effect before the Company’s adoption of ASC 606, see Note 3—“Summary of significant accounting policies” under Item 1 —“Financial Statements” and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations”—“Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Significant judgements The Company has contracts with customers which often include promises to transfer multiple products and services to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation. In instances where the standalone selling price is not directly observable, it is determined using information that may include market conditions and other observable inputs. Customer contracts can include incentive payments received for discrete benefits delivered to clients or service level agreements that could result in credits or refunds to the customer. Such amounts are estimated at contract inception and are adjusted at the end of each reporting period as additional information becomes available only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Impacts on consolidated financial statements The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for the three months ended March 31, 2018. Consolidated Balance sheet As of March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 424,226 $ 424,226 Accounts receivable, net 703,066 703,066 Prepaid expenses and other current assets (a, c) 199,208 74,092 273,300 Total current assets $ 1,326,500 74,092 $ 1,400,592 Property, plant and equipment, net 205,035 205,035 Deferred tax assets 81,734 81,734 Investment in equity affiliates 919 919 Intangible assets, net 125,781 125,781 Goodwill 1,337,051 1,337,051 Contract cost assets (a, b) 162,435 (162,435) — Other assets (a, c) 157,672 89,499 247,171 Total assets $ 3,397,127 1,156 $ 3,398,283 Liabilities and equity Current liabilities Short-term borrowings $ 275,000 $ 275,000 Current portion of long-term debt 39,237 39,237 Accounts payable 13,811 13,811 Income taxes payable 40,026 40,026 Accrued expenses and other current liabilities (c) 503,116 8,429 511,545 Total current liabilities $ 871,190 8,429.00 $ 879,619 Long-term debt, less current portion 996,999 996,999 Deferred tax liabilities (b) 7,083 (5,303) 1,780 Other liabilities (c) 155,858 15,998 171,856 Total liabilities $ 2,031,130 19,124 $ 2,050,254 Redeemable non-controlling interest - - Shareholders' equity Preferred shares, $0.01 par value, 250,000,000 authorized, none issued Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and 190,613,135 issued and outstanding as of December 31, 2017 and March 31, 2018, respectively 1,903 1,903 Additional paid-in capital 1,422,897 1,422,897 Retained earnings (b) 321,916 (17,968) 303,948 Accumulated other comprehensive income (loss) (380,719) (380,719) Total equity $ 1,365,997 (17,968) $ 1,348,029 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,397,127 1,156 $ 3,398,283 (a) The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. (b) Consolidated Statement of Income Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 688,912 $ 688,912 Cost of revenue 444,324 444,324 Gross profit $ — $ Operating expenses: Selling, general and administrative expenses (d) 171,109 44 171,153 Amortization of acquired intangible assets 9,936 9,936 Other operating (income) expense, net (218) (218) Income from operations $ (44) $ Foreign exchange gains (losses), net 4,798 4,798 Interest income (expense), net (8,100) (8,100) Other income (expense), net 15,550 15,550 Income before equity-method investment activity, net and income tax expense $ 76,009 (44) $ 75,965 Equity-method investment activity, net — — — Income before income tax expense $ 76,009 (44) $ 75,965 Income tax expense 12,075 — 12,075 Net income $ (44) $ Net loss attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ (44) $ (d) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. Consolidated Statement of Cash flow Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (e) $ 64,695 (44) $ 64,651 Net loss attributable to redeemable non-controlling interest (761) (761) Net income (e) $ 63,934 (44) $ 63,890 Adjustments to reconcile net income to net cash used for operating activities: Depreciation and amortization 15,836 15,836 Amortization of debt issuance costs 488 488 Amortization of acquired intangible assets 9,936 9,936 Reserve for doubtful receivables (103) (103) Unrealized gain on revaluation of foreign currency asset/liability (8,525) (8,525) Stock-based compensation expense 7,787 7,787 Deferred income taxes (4,625) (4,625) Other net (28) (28) Change in operating assets and liabilities: Increase in accounts receivable (6,025) (6,025) Increase in prepaid expenses, other current assets, contract cost assets and other assets (e, f) (37,008) (3,035) (40,043) Decrease in accounts payable (1,224) (1,224) Decrease in accrued expenses, other current liabilities and other liabilities (f) (77,734) 3,079 (74,655) Decrease in income taxes payable 9,969 9,969 Net cash provided used for operating activities $ — $ Investing activities Purchase of property, plant and equipment (18,706) (18,706) Payment for internally generated intangible assets (4,365) (4,365) Proceeds from sale of property, plant and equipment 144 144 Payment for redeemable non-controlling interest (4,730) (4,730) Net cash used for investing activities $ — $ Financing activities Repayment of capital lease obligations (537) (537) Repayment of long-term debt (10,000) (10,000) Proceeds from short-term borrowings 105,000 105,000 Proceeds from issuance of common shares under stock-based compensation plans 4,202 4,202 Payment for net settlement of stock-based awards (13,284) (13,284) Payment of earn-out/deferred consideration (1,476) (1,476) Dividend paid (14,408) (14,408) Payment for stock purchased and retired (95,984) (95,984) Payment for expenses related to stock purchase (60) (60) Net cash used for financing activities $ — $ Effect of exchange rate changes 1,284 1,284 Net increase (decrease) in cash and cash equivalents (81,526) (81,526) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ — $ (e) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. 2. Summary of significant accounting policies (Continued) (g) Recently issued and adopted accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for impact on the Company’s consolidated financial statements. The Company has adopted the following recently released accounting standards: The Company adopted Topic 606, Revenue from Contracts with Customers, . In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The new standard provides guidance to “allow a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.” The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and the guidance may be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal income tax rate in the Tax Cuts and Jobs Act is recognized. Early adoption is permitted. On January 1, 2018, the Company elected the early adoption of ASU 2018-02, which was adopted at the beginning of the period and no prior periods have been adjusted. In addition, the Company has adopted the following recently released accounting Effective January 1, 2017, the Company adopted FASB ASU 2016-06, Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence. Effective January 1, 2018, the Company adopted FASB ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The new guidance revises the definition of a business. The definition of a business affects many areas of accounting (e.g., acquisitions, disposals, goodwill impairment, consolidation). Effective January 1, 2018, the Company adopted FASB ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” The new guidance eliminates the exception for deferment of tax recognition until the transferred asset is sold to a third party or otherwise recovered through use for all intra-entity sales of assets other than inventory. Effective January 1, 2018, the Company adopted FASB ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the 2. Summary of significant accounting policies (Continued) ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. Effective January 1, 2017, the Company early adopted FASB ASU 2016-15, "Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments." The new guidance is intended to reduce diversity in how certain transactions are classified in the statement of cash flows. The following recently released accounting standards have not yet been adopted by the Company: In February 2016, the FASB issued ASU No. 2016-02, “Leases.” The core principle of the ASU is that a lessee should recognize the assets and liabilities that arise from its leases other than those that meet the definition of a short-term lease. The ASU requires extensive qualitative and quantitative disclosures, including with respect to significant judgments made by management. Subsequently, the FASB issued ASU No. 2017-13, in September 2017, which amends and clarifies ASU 2016-02. The ASU will be effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company expects to complete its assessment of adopting ASU No. 2016-02 in the third quarter of 2018. The Company continues to evaluate the impact of its pending adoption of ASU 2016-02 on its consolidated results of operations, cash flows, financial position and disclosures, and the Company’s preliminary assessments are subject to change. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging.” The amendment expands an entity’s ability to hedge accounting to non-financial and financial risk components and requires changes in fair value of hedging instruments to be presented in the same income statement line as the hedged item. The ASU also amends the presentation and disclosure requirements for the effect of hedge accounting. The ASU must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date. The ASU is effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures. (h) Reclassification Certain reclassifications have been made in the consolidated financial statements of prior periods to conform to the classification used in the current period. The impact of such reclassifications on the consolidated financial statements is not material. | 2. Summary of significant accounting policies (a) Basis of preparation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income. (b) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. 2. Summary of significant accounting policies (Continued) Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. (c) Revenue recognition The Company derives its revenue primarily from business process outsourcing and information technology services, which are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been rendered and collectability is reasonably assured. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. Customer contracts can also include incentive payments received for discrete benefits delivered to clients. Revenues relating to such incentive payments are recorded when the contingency is satisfied and the Company concludes the amounts are earned. Revenue from fixed-price contracts for the development of software and related services is recognized in accordance with the percentage-of-completion method. Guidance has been drawn from Financial Accounting Standards Board (“FASB”) guidance on Software—Revenue Recognition to account for revenue from fixed-price arrangements for software development and related services in conformity with FASB guidance on Revenue Recognition—Construction—Type and Production-Type Contracts. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues. The Company enters into multiple-element revenue arrangements in which a client may purchase a combination of its services. Revenue from multiple-element arrangements is recognized, for each element, based on (1) the attainment of the delivery criterion; (2) its fair value, which is determined using the selling price hierarchy of vendor-specific objective evidence (“VSOE”) of fair value, third-party evidence or best estimated selling price, as applicable, and (3) its allocated selling price, which is based on the relative sales price method. 2. Summary of significant accounting policies (Continued) (d) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and clients’ financial conditions, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. (e) Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances and all highly liquid investments purchased with an original maturity of three months or less. (f) Short-term investments All liquid investments with an original maturity greater than 90 days but less than one year are considered to be short-term investments. Marketable short-term investments are classified and accounted for as available-for-sale investments. Available-for-sale investments are reported at fair value with changes in unrealized gains and losses recorded as a separate component of other comprehensive income (loss) until realized. Realized gains and losses on investments are determined based on the specific identification method and are included in “Other income (expense), net.” The Company does not hold these investments for speculative or trading purposes. (g) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are charged to earnings as incurred. The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Computer software 4-7 Leasehold improvements Lesser of lease period or 10 Years Vehicles 3-4 The Company capitalizes certain computer software incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs incurred while developing internal-use computer software. 2. Summary of significant accounting policies (Continued) Capitalized software costs are included in property, plant and equipment on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software. Advances paid towards the acquisition of property, plant and equipment outstanding as of each balance sheet date and the cost of property, plant and equipment not put to use before such date are disclosed under “Capital work in progress. (h) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. Intangible assets including technology acquired / developed individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Technology-related intangible assets 2-8 years Other intangible assets 3-5 years Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. In business combinations, where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income. 2. Summary of significant accounting policies (Continued) The Company also capitalizes certain software and technology development costs incurred in connection with developing or obtaining software or technology for sale/lease to customers when the initial design phase is completed and commercial and technological feasibility has been established. Any development cost incurred before technological feasibility is established is expensed as incurred as research and development costs. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Capitalized software and technology costs include only (i) external direct costs of materials and services utilized in developing or obtaining software and technology and (ii) compensation and related benefits for employees who are directly associated with the project. Costs incurred in connection with developing or obtaining software or technology for sale/lease to customers which are under development and not put to use are disclosed under “intangible under development.” Capitalized software and technology costs are included in intangible assets under technology-related intangible assets on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software and technology. (i) Impairment of long-lived assets Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. (j) Foreign currency The Company’s consolidated financial statements are reported in U.S. dollars, the Company’s functional currency. The functional currency for the Company’s subsidiaries organized in Europe, other than the United Kingdom, the Czech Republic, Luxembourg and one subsidiary in Poland, is the euro, and the functional currencies of the Company’s subsidiaries organized in Brazil, China, Colombia, Guatemala, India, Israel, Japan, Morocco, South Africa, the Philippines, the United Kingdom, Poland, the Czech Republic, Hong Kong, Singapore, Australia, Canada and United Arab Emirates are their respective local currencies. The functional currency of all other Company subsidiaries is the U.S. dollar. The translation of the functional currencies of the Company’s subsidiaries into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. Monetary assets and liabilities of each subsidiary denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of each subsidiary in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. 2. Summary of significant accounting policies (Continued) (k) Derivative instruments and hedging activities In the normal course of business, the Company uses derivative financial instruments to manage fluctuations in foreign currency exchange rates and interest rate fluctuation. The Company purchases forward foreign exchange contracts to mitigate the risk of changes in foreign exchange rates on intercompany transactions and forecasted transactions denominated in foreign currencies and interest rate swaps to mitigate interest rate fluctuation risk on its indebtedness. The Company recognizes derivative instruments and hedging activities as either assets or liabilities in its consolidated balance sheets and measures them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Changes in the fair values of derivatives designated as cash flow hedges are deferred and recorded as a component of other comprehensive income (loss) reported under accumulated other comprehensive income (loss) until the hedged transactions occur and are then recognized in the consolidated statements of income along with the underlying hedged item and disclosed as part of “Total net revenues,” “Cost of revenue,” “Selling, general and administrative expenses,” and “Interest expense,” as applicable. Changes in the fair value of derivatives not designated as hedging instruments and the ineffective portion of derivatives designated as cash flow hedges are recognized in the consolidated statements of income and are included in foreign exchange gains (losses), net, and other income (expense), net, respectively. With respect to derivatives designated as hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the inception of the hedge and on a quarterly basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative or portion thereof is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, the Company will prospectively discontinue hedge accounting with respect to that derivative. In all situations in which hedge accounting is discontinued and the derivative is retained, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent change in its fair value in the consolidated statements of income. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately, in foreign exchange gains (losses), net in the consolidated statements of income, the gains and losses attributable to such derivative that were accumulated in other comprehensive income (loss). (l) Income taxes The Company accounts for income taxes using the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases and all operating loss and tax credit carry forwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period that includes the enactment date or the filing or approval date of the tax status change. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. 2. Summary of significant accounting policies (Continued) The Company applies a two-step approach for recognizing and measuring the benefit of tax positions. The first step is to evaluate the tax position for recognition by determining, based on the technical merits, that the position will more likely than not be sustained upon examination. The second step is to measure the tax benefit as the largest amount of the tax benefit that is greater than 50 percent likely of being realized upon settlement. The Company includes interest and penalties related to unrecognized tax benefits within income tax expense. (m) Employee benefit plans Contributions to defined contribution plans are charged to consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on an annual basis or quarterly basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. (n) Stock-based compensation The Company recognizes and measures compensation expense for all stock-based awards based on the grant date fair value. For option awards, grant date fair value is determined under the option-pricing model (Black-Scholes-Merton) and for awards other than option awards, grant date fair value is determined on the basis of the fair market value of a Company common share on the date of grant of such awards. The Company recognizes compensation expense for stock-based awards net of estimated forfeitures. Stock-based compensation recognized in the consolidated statements of income for the years ended December 31, 2015, 2016 and 2017 is based on awards ultimately expected to vest. As a result, the expense has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from such estimates. (o) Accelerated Share Repurchase The Company entered into an accelerated share repurchase (“ASR”) agreement with a third-party financial institution to repurchase shares of the Company’s common stock. Under the ASR agreement, the Company paid a specified amount to the financial institution and received an initial delivery of shares. Upon an interim delivery and settlement of the ASR agreement, the financial institution delivered additional shares, with the final number of shares delivered determined with reference to the volume-weighted average price of the Company’s common stock over the term of the agreement, less an agreed-upon discount. The transactions are accounted for as equity transactions. All repurchased shares are retired. When the shares are received, there is an immediate reduction in the weighted-average common shares calculation for basic and diluted earnings per share. 2. Summary of significant accounting policies (Continued) (p) Government incentives The Company recognizes incentives in the consolidated statement of income to match them with the expenditures for which they are intended to compensate. Incentives are recognized in the income statement when there is reasonable assurance that the Company will comply with the conditions for their receipt and a reasonable expectation that the funds will be received. In certain circumstances, the receipt of an incentive may not be subject to any condition or requirement to incur further costs, in which case the incentive is recognized in the income statement for the period in which it becomes receivable. In the event that it becomes likely that the Company will be required to repay an incentive that has already been recognized, the Company makes a provision for the estimated liability. (q) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 15% and 11% of the Company’s receivables as of December 31, 2016 and 2017, respectively. GE accounted for 19%, 14% and 10% of the Company’s revenues in the years ended December 31, 2015, 2016 and 2017, respectively. (r) Earnings (loss) per share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. (s) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. (t) Recently issued accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for impact on the company’s consolidated financial statements. The following recently released accounting standard has been adopted by the Company: In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the requirement for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in income tax expense or in additional paid-in capital. In the quarter ended December 31, 2016, the Company elected to early adopt ASU 2016-09 effective January 1, 2016 and applied ASU 2016-09 using a modified retrospective approach. The treatment of forfeitures has not changed as the Company is electing to continue its current process of estimating the number of forfeitures. With the early adoption of ASU 2016-09, the Company has elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. 2. Summary of significant accounting policies (Continued) In addition, the following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures: Effective January 1, 2016, the Company adopted FASB ASU 2015-01 (Topic 225): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the consolidated financial statements. Effective January 1, 2016, the Company adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Effective January 1, 2016, the Company adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. Effective January 1, 2017, the Company adopted FASB ASU 2016-06, Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence. 2. Summary of significant accounting policies (Continued) The following recently released accounting standards have not yet been adopted by the Company: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgm |
Business acquisitions
Business acquisitions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Business acquisitions | 3. Business acquisitions A. Certain acquisitions (a) Strategic Sourcing Excellence Limited On January 8, 2016, the Company acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company. The total consideration paid by the Company to the selling equity holders for the acquired interest in SSE was $14,541. This amount includes the fair value of earn-out consideration, cash consideration of $2,550, and an adjustment for working capital, transaction expenses and indebtedness. During the quarter ended December 31, 2016, the Company recorded certain measurement period adjustments. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows in any period. The equity purchase agreement between the Company and the selling equity holders of SSE also provided for contingent earn-out consideration of up to $20,000, payable by the Company to the selling equity holders based on the future performance of the acquired business relative to the thresholds specified in the earn-out calculation. Up to $9,800 of the total potential earn-out consideration, representing the selling equity holders’ 49% interest in SSE, was payable only if either the put or call option, each as described below, was exercised. This acquisition enhances the Company’s sourcing and procurement consulting domain expertise. The equity purchase agreement granted the Company a call option to purchase the remaining 49% equity interest in SSE, which option the Company had the right to exercise between January 1, 2018 and January 31, 2018. Since the Company did not exercise its call option during such period, the selling equity holders exercised their put option on March 1, 2018 in accordance with the terms of the equity purchase agreement to require the Company to purchase their 49% interest in SSE for $2,950. The Company also paid $1,780 in earn-out consideration to the selling equity shareholders during the three months ended March 31, 2018. The amount paid in excess of carrying amount has been recorded in additional paid-in capital. Acquisition-related costs of $164 have been included in selling, general and administrative expenses as incurred. Through this transaction, the Company acquired assets with a value of $412 and assumed liabilities amounting to $617. The results of operations of the acquired business, the fair value of the acquired assets and assumed liabilities, and redeemable non-controlling interest are included in the Company’s Consolidated Financial Statements with effect from the date of the acquisition. In connection with the transaction, the Company recorded $300 in customer-related intangible assets with an amortization period of five years. Goodwill arising from the acquisition amounted to $14,445, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The goodwill represents future economic benefits the Company expects to derive from its expanded presence in the sourcing and procurement consulting domains, operating synergies and other anticipated benefits of combining the acquired operations with those of the Company. (b) TandemSeven, Inc. On September 5, 2017, the Company acquired 100% of the outstanding equity interest in TandemSeven, Inc. (“TandemSeven”), a Massachusetts corporation, for total purchase consideration of $35,637. This amount includes cash consideration of $31,784, net of cash acquired of $3,853, and an adjustment for working capital and indebtedness. During the quarter ended March 31, 2018, the Company recorded certain measurement period adjustments. These adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. TandemSeven’s focus on improving the design of customer experiences complements the Company’s existing capabilities aimed at transforming clients’ processes end-to-end. In connection with the acquisition of TandemSeven, the Company recorded $2,000 in customer-related intangibles, $1,700 in marketing-related intangibles and $800 in technology-related intangible assets, which have a weighted average amortization period of two years. Goodwill arising from the acquisition amounted to $25,227, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The goodwill represents primarily the acquired design expertise, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. 3. Business acquisitions (Continued) Acquisition-related costs of $932 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $7,378, assumed certain liabilities amounting to $1,207 and recognized a net deferred tax liability of $260. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. (c) BrightClaim LLC and associated companies On May 3, 2017, the Company acquired 100% of the outstanding equity interest in each of BrightClaim LLC, a Delaware limited liability company, BrightServe LLC, a Georgia limited liability company, National Vendor LLC, a Delaware limited liability company, and BrightClaim Blocker, Inc., a Delaware corporation (collectively referred to as “BrightClaim”) for total purchase consideration of $56,461, subject to adjustment for certain transaction expenses incurred by BrightClaim in connection with closing. This amount includes cash consideration of $52,395, net of cash acquired of $4,002, and an adjustment for working capital and net debt. The Company paid the sellers total consideration of$56,496. During the quarter ended September 30, 2017, the Company recorded certain measurement period adjustments resulting in a receivable of $35, which had been collected as of March 31, 2018. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. This acquisition enhances the Company’s breadth and depth of service offerings for clients in the insurance industry. In connection with the acquisition of BrightClaim, the Company recorded $8,000 in customer-related intangibles, $3,200 in marketing related intangibles, $2,200 in technology-related intangibles and $200 in other intangibles, which have a weighted average amortization period of four years. Goodwill arising from the acquisition amounted to $42,638, which has been allocated to the Company’s India reporting unit and is partially deductible for tax purposes. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. Acquisition-related costs of $1,563 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $10,367, assumed certain liabilities amounting to $7,415, and recognized a net deferred tax liability of $2,728. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. (d) RAGE Frameworks, Inc. On April 13, 2017, the Company acquired 100% of the outstanding equity interest in RAGE Frameworks, Inc. (“RAGE”), a Delaware corporation, for total consideration of $125,089. This amount includes cash consideration of $124,149, net of cash acquired of $1,605, and an adjustment for working capital and indebtedness. During the quarter ended December 31, 2017, the Company recorded certain measurement period adjustments. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. This acquisition enhances the Company’s digital and artificial intelligence capabilities by adding knowledge-based automation technology and services. In connection with the acquisition of RAGE, the Company recorded $1,600 in customer-related intangibles, $600 in marketing-related intangibles, $12,400 in technology-related intangible assets and $100 in other intangible assets, which have a weighted average amortization period of seven years. Goodwill arising from the acquisition amounted to $105,114, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. The goodwill represents primarily the acquired digital and artificial intelligence capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. 3. Business acquisitions (Continued) Acquisition-related costs of $881 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $13,836 and assumed certain liabilities amounting to $9,654. The Company also recognized a net deferred tax asset of $1,094. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. (e) Other acquisitions in 2017 In 2017, the Company also completed five individually immaterial business acquisition transactions, namely the acquisition of a supply chain management delivery center in the U.S. from Kraft Foods Group Brands LLC (“U.S. Delivery Center”), the purchase of all of the outstanding equity interest in OnSource, LLC (“OnSource”), the purchase of the IT business of Birlasoft (“Birlasoft”), the purchase of the image processing business of Fiserv Solutions of Australia Pty Ltd. (“Fiserv”) and the purchase of all of the outstanding equity interest in Lease Dimensions, Inc. (“Lease Dimensions”). The aggregate total estimated consideration the Company paid to consummate these acquisitions was $87,586. This aggregate amount includes the estimated fair value of contingent earn-out consideration, cash consideration of $76,612, net of cash acquired of $254, and preliminary adjustments for closing date working capital, indebtedness, value transfer, seller transaction expenses and certain employee-related liabilities. The U.S. Delivery Center acquisition enhances the Company’s supply chain management capabilities for its clients in the consumer packaged goods industry. The OnSource acquisition brings incremental digital capabilities to the Company’s insurance service offerings. The Birlasoft transaction expands the Company’s end-to-end capabilities for its clients in the healthcare and aviation industries. The Fiserv transaction strengthens the Company’s financial services portfolio and expands its Australia footprint. The Lease Dimensions acquisition enhances the Company’s capabilities in commercial lending and leasing. During the quarter ended December 31, 2017, the Company recorded certain measurement period adjustments with respect to the Birlasoft and Fiserv transactions. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. The purchase agreement for the acquisition of the U.S. Delivery Center provides for contingent earn-out consideration ranging from $0 to $10,000, payable by the Company to the seller based on the achievement of certain milestones relative to the thresholds specified in the earn-out calculation. The purchase agreement for the Lease Dimensions acquisition provides for contingent earn-out consideration ranging from $0 to $3,000, payable by the Company to the sellers based on the future performance of the business relative to the thresholds specified in the earn-out calculation. In connection with these transactions, the Company recorded $33,494 in customer-related intangibles, $1,936 in marketing-related intangibles, $2,956 in technology-related intangibles and $100 in other intangibles, which have a weighted average amortization period of five years. Goodwill arising from these acquisitions amounted to $56,521. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. 3. Business acquisitions (Continued) The following table sets forth, with respect to each of the five acquisitions, the acquisition date, goodwill reporting unit and the tax deductibility of the goodwill: Acquisition Acquisition date Goodwill reporting unit Tax deductibility - goodwill U.S. Delivery Center October 16, 2017 India Deductible OnSource July 18, 2017 India Deductible Birlasoft July 18, 2017 IT Services Deductible Fiserv May 11, 2017 India Non-deductible Lease Dimensions February 15, 2017 Americas Non-deductible Acquisition-related costs for these acquisitions, amounting to $2,369 in the aggregate, have been included in selling, general and administrative expenses as incurred. Through these transactions, the Company acquired assets with a value of $10,387, assumed liabilities amounting to $11,239, and recognized a net deferred tax liability of $6,570. The results of operations of the acquired businesses and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the respective dates of the acquisitions. B. Divestiture (a) A portion of IT support business in Europe In November 2017, the Company completed the sale of a portion of its legacy IT support business in Europe (the “Business”). Sale proceeds were $0. During the year ended December 31, 2017, the Business recorded net revenues of $4,546 and a net loss of $9,706. The Company recorded a loss of $5,668 in its consolidated statement of income in connection with the sale of the Business, calculated as follows: Net sale proceeds $ — Net assets of the business, including the translation impact thereof 5,569 Selling expenses 99 Loss on divestiture included in other income (expense), net $ 5,668 | 3. Business acquisitions A. Certain acquisitions (a) TandemSeven, Inc. On September 5, 2017, the Company acquired 100% of the outstanding equity interest in TandemSeven, Inc. (“TandemSeven”), a Massachusetts corporation, for estimated total purchase consideration of $35,720, subject to adjustment for closing date working capital and indebtedness. This amount includes cash consideration of $31,866, net of cash acquired of $3,854, and a preliminary adjustment for working capital and indebtedness. In addition, the Company is evaluating certain tax positions, which, when determined, may result in the recognition of additional assets and liabilities as of the acquisition date. The measurement period will not exceed one year from the acquisition date. 3. Business acquisitions (Continued) In connection with the acquisition of TandemSeven, the Company recorded $2,000 in customer-related intangibles, $1,700 in marketing-related intangibles and $800 in technology-related intangible assets, which have a weighted average amortization period of two years. Goodwill arising from the acquisition amounted to $25,298, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The goodwill represents primarily the acquired design expertise, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. Acquisition-related costs of $932 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $7,388 and assumed certain liabilities amounting to $1,206 and recognized a net deferred tax liability of $260. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. (b) BrightClaim LLC and associated companies On May 3, 2017, the Company acquired 100% of the outstanding equity interest in each of BrightClaim LLC, a Delaware limited liability company, BrightServe LLC, a Georgia limited liability company, National Vendor LLC, a Delaware limited liability company, and BrightClaim Blocker, Inc., a Delaware corporation (collectively referred to as “BrightClaim”) for total purchase consideration of $56,461, subject to adjustment for closing date working capital, indebtedness and In connection with the acquisition of BrightClaim, the Company recorded $8,000 in customer-related intangibles, $3,200 in marketing-related intangibles, $2,200 in technology-related intangibles and $200 in other intangibles, which have a weighted average amortization period of four years. Goodwill arising from the acquisition amounted to $42,638, which has been allocated to the Company’s India reporting unit and is partially deductible for tax purposes. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. Acquisition-related costs of $1,563 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $10,367, assumed certain liabilities amounting to $7,415, and recognized a net deferred tax liability of $2,728. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. 3. Business acquisitions (Continued) (c) RAGE Frameworks, Inc. On April 13, 2017, the Company acquired 100% of the outstanding equity interest in RAGE Frameworks, Inc. (“RAGE”), a Delaware corporation, for estimated total consideration of $125,089, subject to adjustment for closing date working capital and indebtedness. This amount includes cash consideration of $124,149, net of cash acquired of $1,605, and a preliminary adjustment for working capital and indebtedness. During the quarter ending December 31, 2017, the Company recorded certain measurement period adjustments. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. In connection with the acquisition of RAGE, the Company recorded $1,600 in customer-related intangibles, $600 in marketing-related intangibles, $12,400 in technology-related intangible assets and $100 in other intangible assets, which have a weighted average amortization period of seven years. Goodwill arising from the acquisition amounted to $105,114, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. The goodwill represents primarily the acquired digital and artificial intelligence capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. Acquisition-related costs of $881 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $13,836 and assumed certain liabilities amounting to $9,654. The Company also recognized a net deferred tax asset of $1,094. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. (d) Other acquisitions in 2017 In 2017, the Company also completed five individually immaterial business acquisition transactions, namely the acquisition of a supply chain management delivery center in the U.S. from Kraft Foods Group Brands LLC (“U.S. Delivery Center”), the purchase of all of the outstanding equity interest in OnSource, LLC (“OnSource”), the purchase of the IT business of Birlasoft (“Birlasoft”), the purchase of the image processing business of Fiserv Solutions of Australia Pty Ltd. (“Fiserv”) and the purchase of all of the outstanding equity interest in Lease Dimensions, Inc. (“Lease Dimensions”). The aggregate total estimated consideration the Company paid to consummate these acquisitions was $87,586, subject to certain adjustments. This aggregate amount includes the estimated fair value of contingent earn-out consideration, cash consideration of $76,612, net of cash acquired of $254, and preliminary adjustments for closing date working capital, indebtedness, value transfer, seller transaction expenses and certain employee-related liabilities. The U.S. Delivery Center acquisition enhances the Company’s supply chain management capabilities for its clients in the consumer packaged goods industry. The OnSource acquisition brings incremental digital capabilities to the Company’s insurance service offerings. The Birlasoft transaction 3. Business acquisitions (Continued) expands the Company’s end-to-end capabilities for its clients in the healthcare and aviation industries. The Fiserv transaction strengthens the Company’s financial services portfolio and expands its Australia footprint. The Lease Dimensions acquisition enhances the Company’s capabilities in commercial lending and leasing. During the quarter ending December 31, 2017, the Company recorded certain measurement period adjustments with respect to the Birlasoft and Fiserv transactions. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. The purchase agreement for the acquisition of the U.S. Delivery Center provides for contingent earn-out consideration ranging from $0 to $10,000, payable by the Company to the seller based on the achievement of certain milestones relative to the thresholds specified in the earn-out calculation. The purchase agreement for the Lease Dimensions acquisition provides for contingent earn-out consideration ranging from $0 to $3,000, payable by the Company to the sellers based on the future performance of the business relative to the thresholds specified in the earn-out calculation. In connection with these transactions, the Company recorded $33,494 in customer-related intangibles, $1,936 in marketing-related intangibles, $2,956 in technology-related intangibles and $100 in other intangibles, which have a weighted average amortization period of five years. Goodwill arising from these acquisitions amounted to $56,521. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. The following table sets forth, with respect to each of the five acquisitions, the acquisition date, goodwill reporting unit and the tax deductibility of the goodwill: Acquisition Acquisition date Goodwill reporting unit Tax deductibility of goodwill U.S. Delivery Center October 16, 2017 India Deductible OnSource July 18, 2017 India Deductible Birlasoft July 18, 2017 IT Services Deductible Fiserv May 11, 2017 India Non-deductible Lease Dimensions February 15, 2017 Americas Non-deductible Acquisition-related costs for these acquisitions, amounting to $2,369 in the aggregate, have been included in selling, general and administrative expenses as incurred. Through these transactions, the Company acquired assets with a value of $10,387, assumed liabilities amounting to $11,239, and recognized a net deferred tax liability of $6,570. The results of operations of the acquired businesses and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the respective dates of the acquisitions. (e) Endeavour Software Technologies Private Limited On April 13, 2016, the Company acquired 100% of the outstanding equity interest in Endeavour Software Technologies Private Limited (“Endeavour”), an Indian private limited company, for total consideration of $14,788. This amount includes the estimated fair value of the contingent earn-out consideration, cash consideration of $10,345, net of cash acquired of $2,373, and an adjustment for working capital and net debt. During the quarter ending March 31, 2017, the Company recorded certain measurement period adjustments. 3. Business acquisitions (Continued) performance relative to the thresholds specified in the earn-out calculation. This acquisition enhances the Company’s digital capabilities by adding critical end-to-end mobility services. In connection with the transaction, the Company recorded $800 in customer-related intangibles, $900 in marketing-related intangibles and $950 in other intangible assets, which have a weighted average amortization period of three years. Goodwill arising from the acquisition amounted to $8,936, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. The goodwill represents primarily the capabilities in end-to-end mobility services, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. In connection with the transaction, the Company also acquired certain assets with a value of $5,854 and assumed certain liabilities amounting to $1,735. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. (f) On January 8, 2016, the Company acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company. The total consideration paid by the Company to the selling equity holders for the acquired interest in SSE was $14,541. This amount includes the fair value of earn-out consideration, cash consideration of $2,550, and an adjustment for working capital, transaction expenses and indebtedness. During the quarter ending December 31, 2016, the Company recorded certain measurement period adjustments. The equity purchase agreement grants the Company a call option to purchase the remaining 49% equity interest in SSE, which option the Company had the right to exercise between January 1, 2018 and January 31, 2018. Since the Company did not exercise its call option during such period, the selling equity holders have the right to exercise a put option between March 1, 2018 and April 30, 2018 to require the Company to purchase their 49% interest in SSE at a price ranging from $2,450 to $2,950. This acquisition enhances the Company’s sourcing and procurement consulting domain expertise. Acquisition-related costs of $164 have been included in selling, general and administrative expenses as incurred. Through this transaction, the Company acquired assets with a value of $412 and assumed liabilities amounting to $617. The results of operations of the acquired business, the fair value of the acquired assets and assumed liabilities, and redeemable non-controlling interest are included in the Company’s Consolidated Financial Statements with effect from the date of the acquisition. In connection with the transaction, the Company recorded $300 in customer-related intangible assets with an amortization period of five years. Goodwill arising from the acquisition amounted to $14,445, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The goodwill represents future economic benefits the Company expects to derive from its expanded presence in the sourcing and procurement consulting domains, operating synergies and other anticipated benefits of combining the acquired operations with those of the Company. 3. Business acquisitions (Continued) (g) PNMSoft Ltd. On August 4, 2016, the Company acquired 100% of the outstanding equity interest in PNMSoft Limited (“PNMSoft”), a company incorporated under the laws of Israel. The total purchase consideration paid by the Company to acquire PNMSoft is $35,341. This amount includes the estimated fair value of contingent earn-out consideration, cash consideration of $28,128, net of cash acquired of $2,853, and an adjustment for working capital, transaction expenses and net debt. During the quarter ending December 31, 2016, the Company recorded certain measurement period adjustments. In connection with this acquisition, the Company recorded $1,700 in customer-related intangibles, $1,630 in marketing-related intangibles and $5,110 in other intangible assets, which have a weighted average amortization period of two years. Goodwill arising from the acquisition amounted to $25,101, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. Acquisition-related costs of $1,273 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company acquired assets with a value of $7,110, assumed liabilities amounting to $4,366 and recognized a net deferred tax liability of $944. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. B. Divestiture (a) A portion of IT support business in Europe In November 2017, the Company completed the sale of a portion of its legacy IT support business in Europe (the “Business”). Sale proceeds were $0. During the year ended December 31, 2017, the Business recorded net revenues of $4,546 and a net loss of $9,706. The Company recorded a loss of $5,668 in its consolidated statement of income in connection with the sale of the Business, calculated as follows: Net sale proceeds $ — Net assets of the business, including the translation impact thereof 5,569 Selling expenses 99 Loss on divestiture included in other income (expense), net $ 5,668 (b) Atyati Technologies Private Limited In September 2016, the Company completed the sale of its cloud-hosted technology platform for the Indian rural banking sector (“Atyati”), which the Company acquired in 2012. Net sale proceeds from the sale of Atyati were $17,155, net of selling expenses of $427 and cash divested of $854. During the year ended December 31, 2016, Atyati recorded net revenues of $14,958 and a net profit of $64. 3. Business acquisitions (Continued) The Company recorded a gain of $5,214 in its consolidated statement of income in connection with the sale of Atyati, calculated as follows: Net sale proceeds $ 17,155 Net assets of the business, including intangible assets, allocated goodwill and the translation impact thereof 11,941 Gain on divestiture included in other income (expense), net $ 5,214 |
Cash and cash equivalents
Cash and cash equivalents | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 4. Cash and cash equivalents Cash and cash equivalents as of December 31, 2017 and March 31, 2018 are set out in the table below: As of December 31, As of March 31, 2017 2018 Cash and other bank balances 504,468 424,226 Total $ 504,468 $ 424,226 | 4. Cash and cash equivalents As of December 31, 2016 2017 Cash and other bank balances $ 422,623 $ 504,468 Total $ 422,623 $ 504,468 |
Accounts receivable, net of res
Accounts receivable, net of reserve for doubtful receivables | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Accounts receivable, net of reserve for doubtful receivables | 5. Accounts receivable, net of reserve for doubtful receivables The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, 2017 Three months ended March 31, 2018 Opening balance as of January 1 $ 15,519 $ 23,660 Additions due to acquisitions 235 - Additions charged/reversal released to cost and expense 9,819 (103 ) Deductions/effect of exchange rate fluctuations (1,913 ) 1 Closing balance $ 23,660 $ 23,558 Accounts receivable were $716,745 and $726,624, and the reserves for doubtful receivables were $23,660 and $23,558, resulting in net accounts receivable balances of $693,085 and $703,066 as of December 31, 2017 and March 31, 2018, respectively. In addition, accounts receivable due after one year amounting to $1,624 and $1,407 as of December 31, 2017 and March 31, 2018, respectively, are included under other assets in the consolidated balance sheets. Accounts receivable from related parties were $36 and $239 as of December 31, 2017 and March 31, 2018, respectively. | 5. Accounts receivable, net of reserve for doubtful receivables The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, 2015 2016 2017 Opening balance as of January 1 $15,192 $ 11,530 $ 15,519 Additions due to acquisitions — — 235 Additions charged to cost and expense 2449 7,282 9,819 Deductions/effect of exchange rate fluctuations (6,111 ) (3,293 ) (1,913 ) Closing balance $ 11,530 $ 15,519 $ 23,660 Accounts receivable were $630,784 and $716,745, and reserves for doubtful receivables were $15,519 and $23,660, resulting in net accounts receivable balances of $615,265 and $693,085 as of December 31, 2016 and 2017, respectively. In addition, accounts receivable due after one year amounting to $3,272 and $1,624 as of December 31, 2016 and 2017, respectively, are included under other assets in the consolidated balance sheets. Accounts receivable from related parties were $2,490 and $36 as of December 31, 2016 and 2017, respectively. There are no doubtful receivables in amounts due from related parties. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair value measurements | 6. Fair value measurements The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these financial assets and liabilities were determined using the following inputs as of December 31, 2017 and March 31, 2018: As of December 31, 2017 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a,c) $ 73,098 $ — $ 73,098 $ — Total $ 73,098 $ — $ 73,098 $ — Liabilities Earnout consideration (Note b, d) $ 24,732 $ — $ — $ 24,732 Derivative instruments (Note b,c) $ 18,188 $ — $ 18,188 $ — Total $ 42,920 $ — $ 18,188 $ 24,732 Redeemable non-controlling interest (Note e) $ 4,750 $ — $ — $ 4,750 6. Fair value measurements (Continued) As of March 31, 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a, c) $ 53,587 $ — $ 53,587 $ — Total $ 53,587 $ — $ 53,587 $ — Liabilities Earnout consideration (Note b, d) $ 23,900 — — $ 23,900 Derivative instruments (Note b, c) $ 28,243 $ — $ 28,243 $ — Total $ 52,143 $ — $ 28,243 $ 23,900 (a) (b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. (c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. (d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. (e) The Company’s estimate of the fair value of redeemable non-controlling interest is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation is classified in level 3 of the fair value hierarchy. See Note 3—Business Acquisitions. The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the three months ended March 31, 2017 and 2018: Three months ended March 31, 2017 2018 Opening balance $ 22,435 $ 24,732 Earn-out consideration payable in connection with Acquisitions 2,320 — Payments made on earn-out consideration (1,206 ) (1,476 ) Change in fair value of earn-out consideration (Note a) (3,138 ) 17 Others (Note b) 852 627 Ending balance $ 21,263 $ 23,900 (a) Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income. (b) Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss). | 6. Fair Value Measurements The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these financial assets and liabilities were determined using the following inputs as of December 31, 2016 and 2017: As of December 31, 2016 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Notes a, c) $ 55,386 $ — $ 55,386 $ — Total $ 55,386 $ — $ 55,386 $ — Liabilities Earn-out consideration (Notes b, d) $ 22,435 $ — $ — $ 22,435 Derivative instruments (Notes b, c) 17,353 — 17,353 — Total $ 39,788 $ — $ 17,353 $ 22,435 Redeemable non-controlling interest (Note e) $ 4,520 $ — $ — $ 4,520 As of December 31, 2017 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Notes a, c) $ 73,098 $ — $ 73,098 $ — Total $ 73,098 $ — $ 73,098 $ — Liabilities Earn-out consideration (Notes b, d) $ 24,732 $ — $ — $ 24,732 Derivative instruments (Notes b, c) 18,188 — 18,188 — Total $ 42,920 $ — $ 18,188 $ 24,732 Redeemable non-controlling interest (Note e) $ 4,750 $ — $ — $ 4,750 (a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. (b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. (c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. (d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. 6. Fair Value Measurements (continued) (e) The Company’s estimate of the fair value of redeemable non-controlling interest as of December 31, 2017 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions. The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the years ended December 31, 2016 and 2017: As of December 31 2016 2017 Opening balance $ 22,820 $ 22,435 Earn-out consideration payable in connection with acquisitions 14,550 10,720 Payments made of earn-out consideration (1,611 ) (7,239 ) Change in fair value (note a) (14,869 ) (3,695 ) Other (note b) 1,545 2,511 Ending balance $ 22,435 $ 24,732 (a) Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income. (b) Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss). |
Derivative financial instrument
Derivative financial instruments | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Derivative financial instruments | 7. Derivative financial instruments The Company is exposed to the risk of rate fluctuations on its foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities, foreign currency denominated forecasted cash flows and interest rate risk. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature during a period of up to 57 months and the forecasted transactions are expected to occur during the same period. The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,289,400 $ 1,376,800 $ 54,398 $ 30,002 United States Dollars (sell) Mexican Peso (buy) 9,000 9,000 (441 ) 417 United States Dollars (sell) Philippines Peso (buy) 76,650 66,300 69 (2,858 ) Euro (sell) United States Dollars (buy) 170,542 153,516 (2,069 ) (5,810 ) Pound Sterling (buy) United States Dollars (sell) 24,041 22,150 253 479 Euro (sell) Romanian Leu (buy) 35,826 33,296 (892 ) (448 ) Japanese Yen (sell) Chinese Renminbi (buy) 60,768 54,781 1,918 491 Pound Sterling (sell) United States Dollars (buy) 80,871 67,532 (2,478 ) (5,317 ) Australian Dollars (sell) United States Dollars (buy) 136,092 114,932 (5,180 ) (3,180 ) Interest rate swaps (floating to fixed) 432,117 425,945 9,332 11,568 54,910 25,344 (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. (b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. FASB guidance on derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. In accordance with the FASB guidance on derivatives and hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenues and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items, such as receivables and intercompany borrowings, that are denominated in currencies other than the Company’s underlying functional currency. 7. Derivative financial instruments (Continued) The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 Assets Prepaid expenses and other current assets $ 43,557 $ 32,750 $ 4,635 $ 973 Other assets $ 24,906 $ 19,864 $ — $ — Liabilities Accrued expenses and other current liabilities $ 10,092 $ 13,326 $ 254 $ 1,986 Other liabilities $ 7,842 $ 12,931 $ — $ — Cash flow hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred. In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Three months ended March 31, 2017 2018 Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 Adoption of ASU 2018-02 (note 24) — — — — 2,265 2,265 Net gains (losses) reclassified into statement of income on completion of hedged transactions 9,295 (3,432 ) 5,863 8,279 (1,616 ) 6,663 Changes in fair value of effective portion of outstanding derivatives, net 39,508 (14,787 ) 24,721 (15,893 ) 3,625 (12,269 ) Gain (loss) on cash flow hedging derivatives, net 30,213 (11,355 ) 18,858 (24,172 ) 5,240 (18,932 ) Closing balance $ 67,674 $ (25,334 ) $ 42,340 $ 26,357 $ (6,931 ) $ 19,426 7. Derivative financial instruments (Continued) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Amount of Gain (Loss) reclassified from OCI into recognized in OCI on Location of Gain (Loss) Statement of Income Derivatives in Derivatives (Effective Portion) reclassified (Effective Portion) Cash Flow Three months ended from OCI into Three months ended Hedging March 31, Statement of Income March 31, Relationships 2017 2018 (Effective Portion) 2017 2018 Forward foreign exchange contracts $ 39,296 $ (18,679 ) Revenue $ 3,760 $ (1,474 ) Interest rate swaps 212 2,786 Cost of revenue 4,570 7,270 Selling, general and administrative expenses 1,248 1,934 Interest expense (283 ) 549 $ 39,508 $ (15,893 ) $ 9,295 $ 8,279 Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 for the three months ended March 31, 2017 and 2018, respectively. Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Three months ended March 31, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2017 2018 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 8,910 $ (4,288 ) $ 8,910 $ (4,288 ) (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. | 7. Derivative financial instruments The Company is exposed to the risk of rate fluctuations on foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities and foreign currency denominated forecasted cash flows and interest rate risks. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature over periods of up to 60 months and the forecasted transactions are expected to occur during the same periods. 7. Derivative financial instruments (Continued) The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2016 As of December 31, 2017 As of December 31, 2016 As of December 31, 2017 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,108,400 $ 1,289,400 $ 6,669 $ 54,398 United States Dollars (sell) Mexican Peso (buy) 9,120 9,000 (187 ) (441 ) United States Dollars (sell) Philippines Peso (buy) 70,050 76,650 (1,036 ) 69 Euro (sell) United States Dollars (buy) 138,613 170,542 9,180 (2,069 ) Pound Sterling (buy) United States Dollars (sell) — 24,041 — 253 Euro (sell) Romanian Leu (buy) 29,805 35,826 (152 ) (892 ) Japanese Yen (sell) Chinese Renminbi (buy) 77,267 60,768 (742 ) 1,918 Pound Sterling (sell) United States Dollars (buy) 104,142 80,871 14,228 (2,478 ) Australian Dollars (sell) United States Dollars (buy) 114,412 136,092 2,328 (5,180 ) Interest rate swaps (floating to fixed) 456,810 432,117 7,746 9,332 $ 38,034 $ 54,910 (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or other market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. (b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. FASB guidance on derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the Balance Sheet. In accordance with the FASB guidance on derivatives and hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenue and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items, such as receivables and intercompany borrowings, that are denominated in currencies other than the Company’s underlying functional currency. 7. Derivative financial instruments (Continued) The fair values of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of December 31, 2016 As of December 31, 2017 As of December 31, 2016 As of December 31, 2017 Assets Prepaid expenses and other current assets $ 33,921 $ 43,557 $ 809 $ 4,635 Other assets $ 20,657 $ 24,906 $ — $ — Liabilities Accrued expenses and other current liabilities $ 4,540 $ 10,092 $ 237 $ 254 Other liabilities $ 12,576 $ 7,842 $ — $ — Cash flow hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred. In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Year ended December 31, 2015 2016 2017 Before- Tax amount Tax (Expense) or Benefit Net of tax Amount Before- Tax amount Tax (Expense) or Benefit Net of tax Amount Before- Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ (66,786 ) $ 23,646 $ (43,140 ) $ (30,090 ) $ 9,830 $ (20,260 ) $ 37,461 $ (13,979 ) $ 23,482 Net gains (losses) reclassified into statement of income on completion of hedged transactions (42,106 ) 15,346 (26,760 ) (6,799 ) 409 (6,390 ) 54,494 (17,725 ) 36,769 Changes in fair value of effective portion of outstanding derivatives, net (5,410 ) 1,530 (3,880 ) 60,752 (23,400 ) 37,352 67,562 (18,182 ) 49,380 Gain (loss) on cash flow hedging derivatives, net 36,696 (13,816 ) 22,880 67,551 (23,809 ) 43,742 13,068 (457 ) 12,611 Closing balance $ (30,090 ) $ 9,830 $ (20,260 ) $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 7. Derivative financial instruments (Continued) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Derivatives in Cash Flow Hedging Relationships Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) Location of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) Year ended December 31, Year ended December 31, 2015 2016 2017 2015 2016 2017 Forward foreign exchange contracts $ (5,410 ) $ 54,664 $ 66,037 Revenue $ 13,667 $ 12,859 $ 5,858 Interest rate swaps $ — $ 6,088 $ 1,525 Cost of revenue $ (44,634 ) $ (14,223 ) $ 37,849 Selling, general and administrative expenses $ (11,139 ) $ (3,765 ) $ 10,849 Interest expense $ — $ (1,670 ) $ (62 ) $ (5,410 ) $ 60,752 $ 67,562 $ (42,106 ) $ (6,799 ) $ 54,494 Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 as of December 31, 2015, 2016 and 2017. Non-designated Hedges Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives Amount of Gain (Loss) recognized in Statement of Income on Derivatives Year ended December 31, 2015 2016 2017 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 6,566 $ 2,921 $ 16,696 $ 6,566 $ 2,921 $ 16,696 (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items, such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid expenses and other current assets | 8. Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: As of December 31, As of March 31, 2017 2018 Advance income and non-income taxes $ 51,832 $ 65,493 Deferred transition costs (Note 19) 62,029 - Contract asset (Note 19) — 15,886 Customer acquisition cost (Note 19) 19,327 — Prepaid expenses 16,944 19,638 Derivative instruments 48,192 33,723 Employee advances 5,014 3,764 Deposits 4,719 7,331 Advances to suppliers 2,705 5,502 Others 25,580 47,871 $ 236,342 $ 199,208 | 8. Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: As of December 31, 2016 2017 Advance income and non-income taxes $ 50,676 $ 51,832 Deferred transition costs 45,252 62,029 Derivative instruments 34,730 48,192 Prepaid expenses 22,222 16,944 Customer acquisition cost 11,126 19,327 Employee advances 6,880 5,014 Deposits 2,688 4,719 Advances to suppliers 10,059 2,705 Others 5,516 25,580 $ 189,149 $ 236,342 |
Property, plant and equipment,
Property, plant and equipment, net | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Property, plant and equipment, net | 9. Property, plant and equipment, net The following table provides the gross and net amount of property, plant and equipment: As of December 31, As of March 31, 2017 2018 Property, plant and equipment, gross $ 666,031 $ 673,901 Less: accumulated depreciation and amortization (459,001 ) (468,866 ) Property, plant and equipment, net $ 207,030 $ 205,035 Depreciation expense on property, plant and equipment for the three months ended March 31, 2017 and 2018 was $11,230 and $12,275, respectively. Computer software amortization for the three months ended March 31, 2017 and 2018 amounted to $2,679 and $3,212, respectively. The depreciation and amortization expenses set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to | 9. Property, plant and equipment, net Property, plant and equipment, net consist of the following: As of December 31, 2016 2017 Land $ 9,635 $ 10,209 Buildings 44,487 46,007 Furniture and fixtures 37,421 43,091 Computer equipment and servers 187,119 210,725 Plant, machinery and equipment 84,677 92,981 Computer software 119,648 137,459 Leasehold improvements 92,313 102,072 Vehicles 6,753 6,418 Capital work in progress 18,501 17,069 Property, plant and equipment, gross $ 600,554 $ 666,031 Less: accumulated depreciation, amortization and impairment (407,336 ) (459,001 ) Property, plant and equipment, net $ 193,218 $ 207,030 Depreciation expense on property, plant and equipment for the years ended December 31, 2015, 2016 and 2017 was $47,673, $45,826 and $44,909, respectively. Software amortization for the years ended December 31, 2015, 2016 and 2017 amounted to $9,114, $9,471 and $11,400, respectively. The depreciation and amortization expenses set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $2,501, $744 and $(1,727) for the years ended December 31, 2015, 2016 and 2017, respectively. Property, plant and equipment, net include assets held under capital lease arrangements amounting to $3,183 and $3,302 as of December 31, 2016 and December 31, 2017, respectively. Depreciation expense in respect of these assets was $1,594, $1,564 and $1,682 for the years ended December 31, 2015, 2016 and 2017, respectively. During the year ended December 31, 2017, the Company tested for recoverability a group of assets, comprised of computer software and a technology-related intangible asset, as a result of a downward revision to the forecasted cash flows to be generated by this group of assets. Based on the results of its testing, the Company determined that the carrying value of the group of assets exceeded the estimated undiscounted cash flows and the Company recorded an $8,000 write-down to reduce the carrying value to its fair value. The Company used the income approach to determine the fair value of the group of assets for the purpose of calculating the charge. This write-down has been recorded in other operating (income) expenses, net in the consolidated statement of income and has been allocated to computer software and technology-related intangible assets, amounting to $5,760 and $2,240, respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill and intangible assets | 10. Goodwill and intangible assets The following table presents the changes in goodwill for the year ended December 31, 2017 and three months ended March 31, 2018: As of December 31, As of March 31, 2017 2018 Opening balance $ 1,069,408 $ 1,337,122 Goodwill relating to acquisitions consummated during the period 229,745 — Impact of measurement period adjustments (106 ) (83 ) Effect of exchange rate fluctuations 38,075 12 Closing balance $ 1,337,122 $ 1,337,051 The total amount of goodwill deductible for tax purposes was $120,617 and $121,774 as of December 31, 2017 and March 31, 2018, respectively. The Company’s intangible assets are as follows: As of December 31, 2017 As of March 31, 2018 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 369,173 $ 293,029 $ 76,144 $ 367,640 $ 298,048 $ 69,592 Marketing-related intangible assets 52,443 $ 39,212 13,231 52,165 39,538 12,627 Technology-related intangible assets 54,189 28,278 25,911 55,101 32,135 22,966 Other intangible assets 3,081 2,314 $ 767 2,460 1,710 750 Intangible assets under development 15,537 — $ 15,537 19,846 — 19,846 494,423 362,833 $ 131,590 $ 497,212 $ 371,431 $ 125,781 Amortization expenses for intangible assets disclosed in the Consolidated Statements of Income under amortization of intangible assets for the three months ended March 31, 2017 and 2018 were $7,242 and $9,936, respectively. Amortization expenses for technology-related, internally-developed intangible assets disclosed in the Consolidated Statements of Income under cost of revenue and selling, general and administrative expense for the three months ended March 31, 2017, and 2018 were $0, and $400 respectively. | 10. Goodwill and intangible assets The following table presents the changes in goodwill for the years ended December 31, 2016 and 2017: As of December 31, 2016 2017 Opening balance $ 1,038,346 $ 1,069,408 Goodwill relating to acquisitions consummated during the period 51,535 229,745 Goodwill relating to divestitures during the period (2,226 ) — Impact of measurement period adjustments (59 ) (106 ) Effect of exchange rate fluctuations (18,188 ) 38,075 Closing balance $ 1,069,408 $ 1,337,122 Goodwill has been allocated to the following reporting units, which represent different business units of the Company, as follows: As of December 31, 2016 2017 India $ 493,084 $ 735,596 China 58,139 60,171 Europe 36,584 41,775 Americas 48,713 57,021 IT services 432,888 442,559 $ 1,069,408 $ 1,337,122 In the year ended December 31, 2017, in accordance with ASU 2011-08, the Company performed an assessment of qualitative factors to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on such assessment, as at December 31, 2017, the Company concluded that it is not more likely than not that the fair values of all of the Company’s reporting units are less than their carrying amounts. In the year ended December 31, 2016, in accordance with ASU 2011-08, the Company performed an assessment of qualitative factors to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on its assessment, the Company concluded that it is not more likely than not that the fair value of any of the Company’s reporting units is less than its carrying amount other than its IT services reporting unit, primarily due to a decline in planned revenues. Accordingly, the Company performed a quantitative assessment of goodwill impairment for its IT services reporting unit. Based on such quantitative assessment, the Company concluded that no impairment is warranted for the year ended December 31, 2016 and that the fair value of its IT services reporting unit substantially exceeded its carrying value as of December 31, 2016. 10. Goodwill and intangible assets (Continued) The total amount of the Company’s goodwill deductible for tax purposes is $39,032 and $120,617 as of December 31, 2016 and 2017, respectively. The Company’s intangible assets acquired either individually or with a group of other assets or in a business combination are as follows: As of December 31, 2016 As of December 31, 2017 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 312,041 $ 260,018 $ 52,023 $ 369,173 $ 293,029 $ 76,144 Marketing-related intangible assets 45,098 30,571 14,527 52,443 39,212 13,231 Technology-related intangible assets 26,116 21,026 5,090 54,189 28,278 25,911 Other intangible assets 2,875 2,466 409 3,081 2,314 767 Intangible assets under development 6,897 — 6,897 15,537 — 15,537 $ 393,027 $ 314,081 $ 78,946 $ 494,423 $ 362,833 $ 131,590 Amortization expenses for intangible assets disclosed in the Consolidated Statements of Income under amortization of acquired intangible assets for the years ended December 31, 2015, 2016 and 2017 were $28,513, $27,183 and $36,412, respectively. Amortization expenses for technology-related internally developed intangible assets disclosed in the consolidated statements of income under cost of revenue and selling, general and administrative expense for the years ended December 31, 2015, 2016 and 2017 were $0, $0 and $467, respectively. During the year ended December 31, 2017, the Company tested a customer-related intangible asset for recoverability as a result of the termination of a client contract. Based on the results of such testing, the Company recorded a $1,311 write-down to reduce the amount of the asset’s total carrying value. The Company used the income approach to determine the fair value of the intangible asset for the purpose of calculating the resulting charge. This write-down has been recorded in other operating (income) expenses, net in the consolidated statement of income. During the year ended December 31, 2017, the Company also recorded a write-down to a technology-related intangible asset as described in note 9. During the year ended December 31, 2016, the Company tested an intangible software asset for recoverability as a result of a downward revision to the forecasted cash flows to be generated by the intangible asset. The Company previously recorded a charge to this asset in the third quarter of 2015. Based on the results of its testing, the Company determined that the carrying value of the intangible asset exceeded its estimated undiscounted cash flows by $10,324 and recorded an additional write-down to further reduce the carrying value by this amount. The Company used the income approach to determine the fair value of the intangible asset for the purpose of calculating the charge. This write-down had been recorded in other operating (income) expenses, net in the consolidated statement of income. During the year ended December 31, 2016, the Company also tested a customer-related intangible asset for recoverability as a result of the termination of a client contract. Based on results of such testing, the Company recorded an $871 write-down in the amount of the asset’s total carrying value. The Company used the income approach to determine the fair value of the intangible asset for the purpose of calculating the resulting charge. This write-down had been recorded in other operating (income) expenses, net in the consolidated statement of income. 10. Goodwill and intangible assets (Continued) The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: For the year ending December 31: 2018 $ 38,569 2019 27,518 2020 26,831 2021 13,080 2022 and beyond 25,592 $ 131,590 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other assets | 11. Other assets Other assets consist of the following: As of December 31, 2016 2017 Customer acquisition cost $ 30,996 $ 37,017 Advance income and non-income taxes 60,203 63,474 Deferred transition costs 74,462 77,255 Deposits 29,853 32,174 Derivative instruments 20,657 24,906 Prepaid expenses 3,179 2,849 Accounts receivable due after one year 3,272 1,624 Others 19,706 22,870 $ 242,328 $ 262,169 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | 12. Leases The Company has leased vehicles, furniture and fixtures, computer equipment and servers, and plants, machinery and equipment from various lessors under capital lease arrangements which are not material to the consolidated financial statements. The Company conducts its operations using facilities under non-cancellable operating lease agreements that expire at various dates. Future minimum lease payments under these agreements are as follows: As of December 31: 2018 $ 59,269 2019 54,844 2020 47,788 2021 43,692 2022 38,275 2023 and beyond 122,150 Total minimum lease payments $ 366,018 Rental expenses in agreements with rent holidays and scheduled rent increases are recorded on a straight-line basis over the applicable lease term. Rent expenses under cancellable and non-cancellable operating leases were $50,342, $50,827 and $59,484 for the years ended December 31, 2015, 2016 and 2017, respectively. The rental expenses set out above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts amounting to $2,037, $598 and $(1,533) for the years ended December 31, 2015, 2016 and 2017, respectively. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Payables And Accruals [Abstract] | ||
Accrued expenses and other current liabilities | 13. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: As of December 31, As of March 31, 2017 2018 Accrued expenses $ 204,997 $ 183,777 Accrued employee cost 204,506 123,076 Earn-out consideration 14,928 18,161 Statutory liabilities 36,283 48,371 Retirement benefits 21,074 21,455 Derivative instruments 10,346 15,312 Advance from customers (note 19) 25,476 — Contract liabilities (note 19) — 81,515 Deferred transition revenue (note 19) 52,233 — Other liabilities 13,093 9,953 Capital lease obligations 1,546 1,496 $ 584,482 $ 503,116 | 13. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: As of December 31, 2016 2017 Accrued expenses $ 163,400 $ 204,997 Accrued employee cost 179,360 204,506 Deferred transition revenue 50,552 52,233 Statutory liabilities 36,878 36,283 Retirement benefits 17,616 21,074 Derivative instruments 4,777 10,346 Advance from customers 21,969 25,476 Earn-out consideration 6,885 14,928 Other liabilities 15,461 13,093 Capital lease obligations 1,349 1,546 $ 498,247 $ 584,482 |
Long-term debt
Long-term debt | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Long-term debt | 12. Long-term debt In June 2015, the Company refinanced its 2012 credit facility through a new credit facility comprised of an $800,000 term loan and a $350,000 revolving credit facility. Borrowings under the new facility bear interest at a rate equal to, at the election of the Company, either LIBOR plus an applicable margin equal to 1.50% per annum or a base rate plus an applicable margin equal to 0.50% per annum, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and then current credit rating, the applicable interest rate is equal to LIBOR plus 1.50% per annum. The credit agreement contains certain customary covenants, and during the three months ended March 31, 2018, the Company was in compliance with the financial covenants of the credit agreement. As of December 31, 2017 and March 31, 2018, the amount outstanding under the term loan, net of debt amortization expense of $1,848 and $1,654, was $698,152 and $688,346, respectively. As of December 31, 2017 and March 31, 2018, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum based on the Company’s election and current credit rating. Indebtedness under the refinanced facility is unsecured. The amount outstanding on the term loan as of March 31, 2018 will be repaid through quarterly payments of $10,000, and the balance will be repaid upon the maturity of the term loan on June 30, 2020. The maturity profile of the term loan outstanding as of March 31, 2018, net of debt amortization expense, is as follows: Year ended Amount 2018 29,421 2019 39,272 2020 619,653 Total $ 688,346 12. Long-term debt (Continued) In March 2017, the Company issued $350,000 aggregate principal amount of 3.70% senior notes in a private offering, resulting in cash proceeds of approximately $348,519, net of an underwriting fee of $1,481. In connection with the offering, the Company incurred other debt issuance costs of $1,161. The total debt issuance cost of $2,642 is being amortized over the life of the notes as additional interest expense. As of December 31, 2017 and March 31, 2018, the amount outstanding under the notes, net of debt amortization expense of $2,239 and $2,110, was $347,761 and $347,890 respectively, which is payable on April 1, 2022. The Company will pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date of April 1, 2022. The Company, at its option, may redeem the notes at any time in whole or in part, at a redemption price equal to (i) 100% of the principal amount of the notes redeemed, together with accrued and unpaid interest on the redeemed amount, and (ii) if the notes are redeemed prior to March 1, 2022, a specified “make-whole” premium. The notes are subject to certain customary covenants, including limitations on the ability of the Company and certain of its subsidiaries to incur debt secured by liens, engage in certain sale and leaseback transactions and consolidate, merge, convey or transfer their assets and during the three months ended March 31, 2018, the Company was in compliance with the covenants. Upon certain change of control transactions, the Company will be required to make an offer to repurchase the notes at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest. The interest rate payable on the notes is subject to adjustment if the credit rating of the notes is downgraded up to a maximum increase of 2.0%. The Company is required to offer to exchange the notes for registered notes or have one or more shelf registration statements declared effective within 455 days after the issue date of the notes and, if such exchange offer fails to be consummated or such registration statement fails to be effective by June 25, 2018, then the interest payable on the notes will increase by 0.25% per annum during the 90-day period immediately following such date and will further increase by 0.25% per annum at the end of each subsequent 90-day period up to a maximum increase of 0.50%. | 14. Long-term debt In June 2015, the Company refinanced its 2012 facility through a new credit facility comprised of an $800,000 term loan and a $350,000 revolving credit facility. Borrowings under the new facility bear interest at a rate equal to, at the election of the Company, either LIBOR plus a margin of 1.50% per annum or a base rate plus a margin of 0.50% per annum, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and current credit rating, the applicable interest rate is equal to LIBOR plus 1.50% per annum. As a result of the June 2015 refinancing, the gross outstanding term loan under the previous facility, which amounted to $663,188 as of June 30, 2015, was extinguished, and the Company expensed $10,050, representing accelerated amortization of the existing unamortized debt issuance costs related to the prior facility. Additionally, the refinancing of the revolving facility resulted in the accelerated amortization of $65 relating to the existing unamortized debt issuance cost. The remaining unamortized costs for the revolving facility, together with the fees paid to the Company’s lenders and third parties in connection with the new term loan and revolving facility, will be amortized over the term of the refinanced facility, which ends on June 30, 2020. For the year ended 2017, the Company was in compliance with the financial covenants. As of December 31, 2016 and December 31, 2017, the amount outstanding under the Company’s term loan, net of debt amortization expense of $2,667 and $1,848, was $737,333 and $698,152, respectively. As of December 31, 2016 and December 31, 2017, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum based on the Company’s election and then current credit rating. Indebtedness under the refinanced facility is unsecured. The amount outstanding on the term loan as of December 31, 2017 will be repaid through quarterly payments of $10,000, and the balance will be repaid upon the maturity of the term loan on June 30, 2020. The maturity profile of the term loan, net of debt amortization expense, is as follows: Year ended Amount 2018 $ 39,226 2019 39,272 2020 619,654 Total $ 698,152 14. Long-term debt (Continued) In March 2017, the Company issued $350,000 aggregate principal amount of 3.70% senior notes in a private offering, resulting in cash proceeds of approximately $348,519, net of an underwriting fee of $1,481. In connection with the offering, the Company incurred other debt issuance costs of $1,161. The total debt issuance cost of $2,642 is being amortized over the life of the notes as additional interest expense. As of December 31, 2017, the amount outstanding under the notes, net of debt amortization expense of $2,239, was $347,761, which is payable on April 1, 2022. The Company will pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date of April 1, 2022. The Company, at its option, may redeem the notes at any time in whole or in part, at a redemption price equal to (i) 100% of the principal amount of the notes redeemed, together with accrued and unpaid interest on the redeemed amount, and (ii) if the notes are redeemed prior to March 1, 2022, a specified “make-whole” premium. The notes are subject to certain customary covenants, including limitations on the ability of the Company and certain of its subsidiaries to incur debt secured by liens, engage in certain sale and leaseback transactions and consolidate, merge, convey or transfer their assets. Upon certain change of control transactions, the Company will be required to make an offer to repurchase the notes at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest. The interest rate payable on the notes is subject to adjustment if the credit rating of the notes is downgraded up to a maximum increase of 2.0%. The Company is required to offer to exchange the notes for registered notes or have one or more shelf registration statements declared effective within 455 days after the issue date of the notes and, if such exchange offer fails to be consummated or such registration statement fails to be effective by June 25, 2018, then the interest payable on the notes will increase by 0.25% per annum during the 90-day period immediately following such date and will further increase by 0.25% per annum at the end of each subsequent 90-day period up to a maximum increase of 0.50%. |
Short-term borrowings
Short-term borrowings | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Short-term borrowings | 11. Short-term borrowings The Company has the following borrowing facilities: (a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2017 and March 31, 2018, the limits available were $15,064 and $14,311, respectively, of which $7,900 and $7,312 was utilized, constituting non-funded drawdown. (b) A fund-based and non-fund based revolving credit facility of $350,000, which the Company obtained in June 2015 as described in note 12. As of December 31, 2017 and March 31, 2018, a total of $170,978 and $276,073 respectively, was utilized, of which $170,000 and $275,000 respectively, constituted funded drawdown and $978 and $1,073, respectively, constituted non-funded drawdown. The revolving facility expires in June 2020. The funded drawdown amount bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum as of December 31, 2017 and March 31, 2018. The unutilized amount on the revolving facility bore a commitment fee of 0.25% as of December 31, 2017 and March 31, 2018. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. During the three months ended March 31, 2018, the Company was in compliance with the financial covenants. | 15. Short-term borrowings The Company has the following borrowing facilities: (a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2016 and December 31, 2017, the limits available were $15,382 and $15,064, respectively, of which $10,980 and $7,900 was utilized, constituting non-funded drawdown. (b) A fund-based and non-fund based revolving credit facility of $350,000, which the Company obtained in June 2015 as described in note 14. This facility replaces the Company’s $250,000 facility initially entered into in August 2012 and subsequently amended in June 2013. As of December 31, 2016 and December 31, 2017, a total of $160,978 and $170,978 respectively, was utilized, of which $160,000 and $170,000, respectively, constituted funded drawdown and $978 and $978, respectively, constituted non-funded drawdown. The revolving facility expires in June 2020. The funded drawdown amount bore interest at a rate equal to LIBOR plus a margin of 1.50% as of December 31, 2016. As of December 31, 2017, the revolving facility bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum. The unutilized amount on the revolving facility bore a commitment fee of 0.25% and 0.25% as of December 31, 2016 and December 31, 2017, respectively. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. During the year ended December 31, 2017, the Company was in compliance with the financial covenants. |
Other liabilities
Other liabilities | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | ||
Other liabilities | 14. Other liabilities Other liabilities consist of the following: As of December 31, As of March 31, 2017 2018 Accrued employee cost $ 14,020 $ 14,877 Earn-out consideration 9,804 5,739 Retirement benefits 40,520 43,235 Derivative instruments 7,842 12,931 Advance from customers (note 19) 790 — Contract liabilities (note 19) — 55,484 Deferred transition revenue (note 19) 70,900 — Others 22,069 21,187 Capital lease obligations 2,664 2,405 $ 168,609 $ 155,858 | 16. Other liabilities Other liabilities consist of the following: As of December 31, 2016 2017 Accrued employee cost $ 3,976 $ 14,020 Deferred transition revenue 72,560 70,900 Retirement benefits 39,020 40,520 Derivative instruments 12,576 7,842 Amount received from GE under indemnification arrangement, pending adjustment 3,159 3,359 Advance from customers 2,371 790 Earn-out consideration 15,550 9,804 Others 11,078 18,710 Capital lease obligations 2,500 2,664 $ 162,790 $ 168,609 |
Employee benefit plans
Employee benefit plans | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | ||
Employee benefit plans | 15. Employee benefit plans The Company has employee benefit plans in the form of certain statutory and other schemes covering its employees. Defined benefit plans In accordance with Indian law, the Company maintains a defined benefit retirement plan covering substantially all of its Indian employees. In accordance with Mexican law, the Company provides termination benefits to all of its Mexican employees. In addition, certain of the Company’s subsidiaries in the Philippines and Japan sponsor defined benefit retirement programs. Net defined benefit plan costs for the three months ended March 31, 2017 and 2018 include the following components: Three months ended March 31, 2017 2018 Service costs $ 1,720 $ 1,995 Interest costs 734 995 Amortization of actuarial loss 205 320 Expected return on plan assets (492 ) (736 ) Net defined benefit plan costs $ 2,167 $ 2,574 For the three months ended March 31, 2017 and 2018, all of the components of net defined benefit plan costs other than service costs were recorded in “cost of revenue” and “selling, general and administrative expenses” in the Consolidated Statement of Income. Defined contribution plans During the three months ended March 31, 2017 and 2018, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended March 31, 2017 2018 India $ 5,217 $ 5,944 U.S. 4,280 4,599 U.K. 1,720 2,137 China 3,828 4,394 Other regions 1,130 1,160 Total $ 16,175 $ 18,234 | 17. Employee benefit plans The Company has employee benefit plans in the form of certain statutory and other schemes covering its employees. Defined benefit plans In accordance with Indian law, the Company provides a defined benefit retirement plan (the “Gratuity Plan”) covering substantially all of its Indian employees. The Gratuity Plan provides a lump-sum payment to vested employees upon retirement or termination of employment in an amount based on each employee’s salary and duration of employment with the Company. The Gratuity Plan benefit cost for the year is calculated on an actuarial basis. The Company contributes the required funding for all ascertained liabilities to the Gratuity Plan. Trustees administer contributions made to the trust, and contributions are invested in specific designated instruments as permitted by Indian law. The Company’s overall investment strategy is to invest predominantly in fixed income funds managed by asset management companies. These funds further invest in debt securities such as money market instruments, government securities and public and private bonds. During the years ended December 31, 2015, 2016 and 2017, all of the plan assets were primarily invested in debt securities. In addition, in accordance with Mexican law, the Company provides certain termination benefits (the “Mexican Plan”) to all of its Mexican employees based on the age, duration of service and salary of each eligible employee. The full-year benefit cost of the Mexican Plan is calculated on an actuarial basis. In addition, certain of the Company’s subsidiaries organized or operating in the Philippines and Japan have sponsored defined benefit retirement programs (respectively, the “Philippines Plan” and the “Japan Plan”). The full-year benefit costs of the Japan Plan and the Philippines Plan are calculated on an actuarial basis. Company contributions in respect of these plans are made to insurer-managed funds or to a trust. The trust contributions are further invested in government bonds. In addition, in accordance with Israeli law, the Company provides certain termination benefits (the “Israeli Plan”) to all of its Israeli employees based on the age, duration of service and salary of each eligible employee. The full-year benefit cost of the Israeli Plan is calculated on an actuarial basis. Current service costs for defined benefit plans are accrued in the year to which they relate on a monthly basis. Actuarial gains or losses, or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees or over the average remaining life expectancies for inactive employees if most of the plan obligations are payable to inactive employees. 17. Employee benefit plans (Continued) The following table sets forth the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s financial statements based on actuarial valuations carried out as of December 31, 2016 and 2017. As of December 31, 2016 2017 Change in benefit obligation Projected benefit obligation at the beginning of the year $ 35,617 $ 45,283 Service cost 5,661 7,735 Actuarial loss 6,749 4,493 Interest cost 2,585 3,252 Liabilities assumed on acquisition 693 Benefits paid (4,967 ) (5,367 ) Special termination benefit - 57 Effect of exchange rate changes (1,055 ) 2,641 Projected benefit obligation at the end of the year $ 45,283 $ 58,094 Change in fair value of plan assets Fair value of plan assets at the beginning of the year $ 28,549 $ 30,871 Employer contributions 5,776 15,176 Actual gain on plan assets 1,777 2,746 Assets assumed on acquisition 170 0 Actuarial gain — 11 Benefits paid (4,897 ) (5,301 ) Effect of exchange rate changes (504 ) 2,057 Fair value of plan assets at the end of the year $ 30,871 $ 45,560 Amounts included in other comprehensive income (loss) as of December 31, 2016 and 2017 were as follows: As of December 31, 2016 2017 Net actuarial loss (8,979 ) (12,228 ) Deferred tax assets 2,759 2,221 Other comprehensive income, net (6,220 ) (10,007 ) Changes in other comprehensive income (loss) during the year ended December 31, 2017 were as follows: 2017 Net actuarial loss $ (4,182 ) Amortization of net actuarial loss 1,177 Deferred income taxes (670 ) One-time cost 211 Effect of exchange rate changes (323 ) Other comprehensive income (loss), net $ (3,787 ) 17. Employee benefit plans (Continued) Net defined benefit plan costs for the years ended December 31, 2015, 2016 and 2017 include the following components: Year ended December 31, 2015 2016 2017 Service costs $ 5,578 $ 5,661 $ 7,735 Interest costs 2,629 2,585 3,252 Amortization of actuarial loss 330 (113 ) 1,177 Expected return on plan assets (2,154 ) (2,043 ) (2,412 ) One-time cost — — 209 Special termination benefits — — 426 Net defined benefit plan costs $ 6,383 $ 6,090 $ 10,387 The amount in other comprehensive loss that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $1,353. The weighted average assumptions used to determine the benefit obligations of the Gratuity Plan as of December 31, 2016 and 2017 are presented below: As of December 31, 2016 2017 Discount rate 7.10% - 7.5% 7.40% - 7.60% Rate of increase in compensation per annum 5.20%-11.00% 5.20%-11.00% The weighted average assumptions used to determine the Gratuity Plan costs for the years ended December 31, 2015, 2016 and 2017 are presented below: Year ended December 31, 2015 2016 2017 Discount rate 8.50% - 8.55% 8.30% - 8.45% 7.10% - 7.5% Rate of increase in compensation per annum 5.20% - 11.00% 5.20% - 11.00% 5.20% - 11.00% Expected long-term rate of return on plan assets per annum 8.50% 7.50% 7.50% The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2016 and 2017 are presented below: Year ended December 31, 2016 2017 Discount rate 6.80 % 7.60 % Rate of increase in compensation per annum 5.50 % 5.50 % The weighted average assumptions used to determine the costs of the Mexican Plan for the years ended December 31, 2015, 2016 and 2017 are presented below: Year ended December 31, 2015 2016 2017 Discount rate 6.50 % 6.50 % 6.80 % Rate of increase in compensation per annum 5.50 % 5.50 % 5.50 % Expected long-term rate of return on plan assets per annum 0.00 % 0.00 % 0.00 % 17. Employee benefit plans (Continued) The weighted average assumptions used to determine the benefit obligation of the Japan Plan as of December 31, 2016 and 2017 are presented below: Year ended December 31, 2016 2017 Discount rate 0.08% - 1.30% 0.113%-0.789% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% - 3.55% The weighted average assumptions used to determine the costs of the Japan Plan for the years ended December 31, 2015, 2016 and 2017 are presented below: Year ended December 31, 2015 2016 2017 Discount rate 0.20% - 1.30% 0.24% - 1.30% 0.08% - 1.30% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% - 3.55% 0.00% - 3.55% Expected long-term rate of return on plan assets per annum 2.69% - 3.44% 0.00% - 3.77% 0.00% - 3.09% The expected returns on plan assets set forth above are based on the Company’s expectation of the average long-term rate of return expected to prevail over the next 15 to 20 years on the types of investments prescribed by applicable statute. The Company evaluates these assumptions based on projections of the Company’s long-term growth and prevalent industry standards. Unrecognized actuarial loss is amortized over the average remaining service period of the active employees expected to receive benefits under the plan. The fair values of the Company’s plan assets as of December 31, 2016 and 2017 by asset category are as follows: Total As of December 31, 2017 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset Category Cash $ 472 $ 472 $ — $ — Fixed income securities (Note a) 42,328 3,419 38,909 — Other securities (Note b) 2,760 2,437 323 — Total $ 45,560 $ 6,328 $ 39,232 $ — 17. Employee benefit plans (Continued) Total As of December 31, 2016 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset Category Cash $ 4,809 $ 4,809 $ — $ — Fixed income securities (Note a) 23,659 3,001 20,658 — Other securities (Note b) 2,403 2,191 212 — Total $ 30,871 $ 10,001 $ 20,870 $ — (a) Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. (b) Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. The expected benefit plan payments set forth below reflect expected future service: Year ending December 31, 2018 $ 8,469 2019 8,823 2020 9,330 2021 9,946 2022 10,118 2023 - 2027 48,107 $ 94,793 The Company’s expected benefit plan payments are based on the same assumptions that were used to measure the Company’s benefit obligations as of December 31, 2017. Defined contribution plans During the years ended December 31, 2015, 2016 and 2017, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Year ended December 31, 2015 2016 2017 India $ 15,915 $ 19,074 $ 22,242 U.S. 8,148 10,379 11,147 U.K. 4,453 6,593 7,823 China 14,511 15,512 15,950 Other regions 4,690 4,684 4,059 Total $ 47,717 $ 56,242 $ 61,221 |
Stock-based compensation
Stock-based compensation | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock-based compensation | 16. Stock-based compensation The Company has issued options under the Genpact Limited 2007 Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”) and the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Omnibus Plan”) to eligible persons, including employees, directors and certain other persons associated with the Company. Under the 2007 Omnibus Plan, shares underlying options forfeited, expired, terminated or cancelled under any of the Company’s predecessor plans were added to the number of shares otherwise available for grant under the 2007 Omnibus Plan. The 2007 Omnibus Plan was amended and restated on April 11, 2012 to increase the number of common shares authorized for issuance by 5,593,200 shares to 15,000,000 shares. On May 9, 2017, the Company’s shareholders approved the adoption of the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Omnibus Plan”), pursuant to which 15,000,000 Company common shares are available for issuance. No grants may be made under the 2007 Omnibus Plan after the date of adoption of the 2017 Omnibus Plan. Grants that were outstanding under the 2007 Omnibus Plan as of the Company’s adoption of the 2017 Omnibus Plan remain subject to the terms of the 2007 Omnibus Plan. Stock-based compensation costs relating to the foregoing plans during the three months ended March 31, 2017 and 2018 were $4,845 and $7,597, respectively. These costs have been allocated to cost of revenue and selling, general, and administrative expenses. Stock options All options granted under the 2007 and 2017 Omnibus Plans are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes compensation cost over the vesting period of the option. Compensation cost is determined at the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model. The following table shows the significant assumptions used in determining the fair value of options granted in the three months ended March 31, 2017. No options were granted in the three months ended March 31, 2018. Three months ended March 31, 2017 Dividend yield 0.97% Expected life (in months) 84 Risk-free rate of interest 2.25% Volatility 24.28% 16. Stock-based compensation (Continued) A summary of stock option activity during the three months ended March 31, 2018 is set out below: Three months ended March 31, 2018 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2018 5,134,645 $ 19.52 5.6 $ — Granted — — — — Forfeited — — — — Expired — — — — Exercised (161,837 ) 15.76 — 2,626 Outstanding as of March 31, 2018 4,972,808 $ 19.64 5.4 $ 61,401 Vested as of March 31, 2018 and expected to vest thereafter (Note a) 4,843,888 $ 19.49 5.4 $ 60,526 Vested and exercisable as of March 31, 2018 3,592,809 $ 17.63 4.4 $ 51,599 Weighted average grant date fair value of grants during the period $ — (a) Options expected to vest reflect an estimated forfeiture rate. As of March 31, 2018, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $5,708, which will be recognized over the weighted average remaining requisite vesting period of 2.7 years. Restricted share units The Company has granted restricted share units, or RSUs, under the 2007 and 2017 Omnibus Plans. Each RSU represents the right to receive one common share. The fair value of each RSU is the market price of one common share of the Company on the date of the grant. The RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSUs granted during the three months ended March 31, 2018 is set out below: Three months ended March 31, 2018 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2018 1,605,251 $ 26.17 Granted — — Vested (Note a) (58,875 ) 23.99 Forfeited (4,500) 24.59 Outstanding as of March 31, 2018 1,541,876 $ 26.26 Expected to vest (Note b) 1,337,172 (a) 6,000 RSUs that vested during the period were net settled upon vesting by issuing 3,576 shares (net of minimum statutory tax withholding). 52,875 RSUs vested in the year ended December 31, 2017, shares in respect of which will be issuable on December 31, 2018 after withholding shares to the extent of minimum statutory withholding taxes. (b) The number of RSUs expected to vest reflects an estimated forfeiture rate. 52,482 RSUs vested in the year ended December 31, 2016, in respect of which 52,055 shares were issued during the three months ended March 31, 2018 after withholding shares to the extent of minimum statutory withholding taxes. 16. Stock-based compensation (Continued) As of March 31, 2018, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $23,703, which will be recognized over the weighted average remaining requisite vesting period of 2.7 years. Performance units The Company also grants stock awards in the form of performance units, or PUs, and has granted PUs under both the 2007 and 2017 Omnibus Plans. Each PU represents the right to receive one common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plans are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. During the performance period, the Company’s estimate of the number of shares to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. A summary of PU activity during the three months ended March 31, 2018 is set out below: Three months ended March 31, 2018 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2018 2,900,940 $ 24.40 2,900,940 Granted — — — Vested (Note a) (1,087,751) 22.73 (1,087,751) Forfeited (78,304 ) 24.92 (78,304 ) Adjustment upon final determination of level of performance goal achievement (Note b) (4,597 ) 25.22 Adjustment upon final determination of level of performance goal achievement (Note b) (4,597 ) Outstanding as of March 31, 2018 1,730,288 $ 25.43 1,730,288 Expected to vest (Note c) 1,524,101 (a) PUs that vested during the period were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). (b) Represents an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. (c) The number of PUs expected to vest has been adjusted by an estimated forfeiture rate. As of March 31, 2018, the total remaining unrecognized stock-based compensation cost related to PUs amounted to $25,194, which will be recognized over the weighted average remaining requisite vesting period of 1.8 years. 16. Stock-based compensation (Continued) Employee Stock Purchase Plan (ESPP) On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). In April 2018, these plans were amended and restated, and their terms were extended to August 31, 2018. The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day of the subsequent May, August, November and February. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP. During the three months ended March 31, 2017 and 2018, 55,788 and 58,476 common shares, respectively, were issued under the ESPP. The ESPP is considered compensatory under the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP during the three months ended March 31, 2017 and 2018 was $141 and $190, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. | 18. Stock-based compensation The Company has issued options under the Genpact Limited 2007 Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”) and the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Omnibus Plan”) to eligible persons, including employees, directors and certain other persons associated with the Company. 18. Stock-based compensation (Continued) Under the 2007 Omnibus Plan, shares underlying options forfeited, expired, terminated or cancelled under any of the Company’s predecessor plans were added to the number of shares otherwise available for grant under the 2007 Omnibus Plan. The 2007 Omnibus Plan was amended and restated on April 11, 2012 to increase the number of common shares authorized for issuance by 5,593,200 shares to 15,000,000 shares. During the year ended December 31, 2012, the number of common shares authorized for issuance under the 2007 Omnibus Plan was increased by 8,858,823 shares as a result of a one-time adjustment to outstanding unvested share awards in connection with a special dividend payment. A brief summary of each plan is provided below: 2007 Omnibus Plan The Company adopted the 2007 Omnibus Plan on July 13, 2007 and amended and restated it on April 11, 2012. The 2007 Omnibus Plan provided for the grant of awards intended to qualify as incentive stock options, non-qualified stock options, share appreciation rights, restricted share awards, restricted share units, performance units, cash incentive awards and other equity-based or equity-related awards. Under the 2007 Omnibus Plan, the Company was authorized to grant awards for the issuance of up to a total of 23,858,823 common shares. 2017 Omnibus Plan On May 9, 2017, the Company’s shareholders approved the adoption of the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Omnibus Plan”), pursuant to which 15,000,000 Company common shares are available for issuance. No grants may be made under the 2007 Omnibus Plan after the date of adoption of the 2017 Omnibus Plan. Grants that were outstanding under the 2007 Omnibus Plan as of the Company’s adoption of the 2017 Omnibus Plan remain subject to the terms of the 2007 Omnibus Plan. Stock-based compensation costs relating to the foregoing plans during the years ended December 31, 2015, 2016 and 2017, were $24,684, $24,686 and $35,112, respectively, and have been allocated to cost of revenue and selling, general, and administrative expenses. Income tax benefits recognized in relation to stock-based compensation charges, excluding excess tax benefits, during the years ended December 31, 2015, 2016 and 2017 were $6,125, $6,446 and $9,600, respectively. Stock options All options granted under the 2007 and 2017 Omnibus Plans are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes compensation cost over the vesting period of the option. 18. Stock-based compensation (Continued) Compensation cost is determined at the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model. The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in 2015, 2016 and 2017: 2015 2016 2017 Dividend yield — — 0.97% Expected life (in months) 84 84 84 Risk-free rate of interest for expected life 1.99% 1.42% - 1.56% 2.25 % Volatility 34.97% 25.60% - 27.22% 24.28% Volatility was calculated based on the historical volatility of the Company’s share price during a period equivalent to the estimated term of the option. The Company estimates the expected term of an option using the “simplified method,” which is based on the average of its contractual vesting term. The risk-free interest rate that the Company uses in the option valuation model is based on U.S. Treasury bonds with a term similar to the expected term of the options. The Company did not pay any regular cash dividends in fiscal 2016. The Company paid a cash dividend of $0.06 per share in each quarter of fiscal 2017. The Company has issued, and intends to continue to issue, new common shares upon stock option exercises and the vesting of share awards under its equity-based incentive compensation plans. A summary of stock option activity during the years ended December 31, 2015, 2016 and 2017 is set out below: Year ended December 31, 2015 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2015 7,371,727 $ 15.44 5.9 $ — Granted 170,000 22.77 — — Forfeited (125,000 ) 19.35 — — Expired (1,277 ) 14.32 — — Exercised (1,428,605 ) 9.49 — 22,122 Outstanding as of December 31, 2015 5,986,845 $ 16.99 5.8 $ 48,661 Vested as of December 31, 2015 and expected to vest thereafter (Note a) 5,754,969 $ 16.76 5.8 $ 47,325 Vested and exercisable as of December 31, 2015 2,183,846 $ 12.67 2.7 $ 26,892 Weighted average grant-date fair value of options granted during the period $ 9.15 18. Stock-based compensation (Continued) Year ended December 31, 2016 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2016 5,986,845 $ 16.99 5.8 $ — Granted 860,000 26.80 — — Forfeited (145,000 ) 17.77 — — Expired — — — — Exercised (994,155 ) 14.98 — 9,301 Outstanding as of December 31, 2016 5,707,690 $ 18.65 5.8 $ 34,641 Vested as of December 31, 2016 and expected to vest thereafter (Note a) 5,457,701 $ 18.42 5.8 $ 34,150 Vested and exercisable as of December 31, 2016 2,746,191 $ 15.62 4.0 $ 23,960 Weighted average grant-date fair value of options granted during the period $ 8.50 Year ended December 31, 2017 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2017 5,707,690 $ 18.65 5.8 $ — Granted 250,000 24.74 — — Forfeited (80,000 ) 20.63 — — Expired — — — — Exercised (743,045 ) 14.50 — 12,636 Outstanding as of December 31, 2017 5,134,645 $ 19.52 5.6 $ 62,743 Vested as of December 31, 2017 and expected to vest thereafter (Note a) 4,988,875 $ 19.36 5.6 $ 61,779 Vested and exercisable as of December 31, 2017 2,203,146 $ 16.17 4.1 $ 34,303 Weighted average grant-date fair value of options granted during the period $ 6.62 (a) Options expected to vest reflect an estimated forfeiture rate. Cash received by the Company upon the exercise of stock options amounted to $13,564, $14,896 and $10,772. Cash tax benefits realized by the Company upon the exercise of stock options during the year ended December 31, 2015 and tax benefits from the exercise of stock options during the years ended December 31, 2016 and 2017 were $6,982, $1,548 and $2,016 (including excess tax benefits of $6,560, $1,004, $1,723), respectively. As of December 31, 2017, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $6,479, which will be recognized over the weighted average remaining requisite vesting period of 2.9 years. Restricted Share Units The Company has granted restricted share units, or RSUs, under the 2007 and 2017 Omnibus Plans. Each RSU represents the right to receive one common share. The fair value of each RSU is the market price of one common share of the Company on the date of grant. The RSUs granted to date have graded 18. Stock-based compensation (Continued) vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSUs granted during the years ended December 31, 2015, 2016 and 2017 is set out below: Year ended December 31, 2015 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2015 488,418 $ 15.36 Granted 53,546 20.88 Vested (Note b) (351,338 ) 15.29 Forfeited (33,236 ) 14.00 Outstanding as of December 31, 2015 157,390 $ 17.67 Expected to vest (Note a) 147,226 Year ended December 31, 2016 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2016 157,390 $ 17.67 Granted 95,553 25.49 Vested (Note c) (133,903 ) 20.66 Forfeited (1,135 ) 14.18 Outstanding as of December 31, 2016 117,905 $ 20.65 Expected to vest (Note a) 107,366 Year ended December 31, 2017 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2017 117,905 $ 20.65 Granted 1,533,836 26.36 Vested (Note d) (45,248 ) 18.31 Forfeited (1,242 ) 25.53 Outstanding as of December 31, 2017 1,605,251 $ 26.17 Expected to vest (Note a) 1,371,567 (a) RSUs expected to vest reflect an estimated forfeiture rate. (b) Vested RSUs were net settled by issuing 199,949 shares (net of minimum statutory tax withholding). 53,546 RSUs vested in the year ended December 31, 2015, 53,023 shares in respect of which were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. (c) Vested RSUs were net settled by issuing 29,719 shares (net of minimum statutory tax withholding). 86,517 RSUs vested in the year ended December 31, 2016. 17,802 common shares underlying 34,035 of such RSUs were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. Shares underlying the remaining 52,482 of such RSUs will be issued in 2018 after withholding shares to the extent of minimum statutory withholding taxes. (d) Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). 18. Stock-based compensation (Continued) 92,692 RSUs vested in the year ended December 31, 2014, in respect of which 91,963 shares were issued in 2016 after withholding shares to the extent of minimum statutory withholding taxes. 61,057 RSUs vested in the year ended December 31, 2013, in respect of which 59,827 shares were issued in January 2015 after withholding shares to the extent of minimum statutory withholding taxes. As of December 31, 2017, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $26,543, which will be recognized over the weighted average remaining requisite vesting period of 2.9 years. Performance Units The Company also grants stock awards in the form of performance units, or PUs, and has granted PU’s under both the 2007 and 2017 Omnibus Plans. Each PU represents the right to receive one common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. During the performance period, the Company’s estimate of the number of shares to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. A summary of PU activity during the years ended December 31, 2015, 2016 and 2017 is set out below: Year ended December 31, 2015 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2015 1,292,750 $ 16.78 2,648,626 Granted 1,375,650 22.72 2,965,475 Vested (Note b) (855 ) 16.78 (855 ) Forfeited (136,216 ) 17.82 (156,194 ) Adjustment due to achievement of lower-than-target performance (Note c) (32,007 ) 20.45 Adjustment due to achievement of lower-than-maximum performance (Note d) (2,957,730 ) Outstanding as of December 31, 2015 2,499,322 $ 19.95 2,499,322 Expected to vest (Note a) 2,184,906 18. Stock-based compensation (Continued) Year ended December 31, 2016 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2016 2,499,322 $ 19.95 2,499,322 Granted 1,518,374 27.93 3,343,335 Vested — — — Forfeited (252,842 ) 21.88 (325,817 ) Adjustment upon final determination of level of performance goal achievement (Note e) 7,274 22.72 Adjustment upon final determination of level of performance goal achievement (Note e) 7,274 Outstanding as of December 31, 2016 3,772,128 $ 23.04 5,524,114 Expected to vest (Note a) 2,226,489 Year ended December 31, 2017 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2017 3,772,128 $ 23.04 5,524,114 Granted 1,811,292 25.22 3,622,584 Vested (Note f) (1,136,047) 16.78 (1,136,047) Forfeited (Note g) (1,583,913 ) 27.57 (1,627,313 ) Adjustment upon final determination of level of performance goal achievement (Note h) 37,480 25.22 Adjustment upon final determination of level of performance goal achievement (Note i) (3,482,398) Outstanding as of December 31, 2017 2,900,940 $ 24.40 2,900,940 Expected to vest (Note a) 2,657,685 (a) PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. (b) Vested PUs were net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). 18. Stock-based compensation (Continued) (c) Represents a 5.2% to 6.7% reduction, depending on the targets under the PU award granted, in the number of target shares as a result of achievement of lower-than-target performance for the PUs granted in 2015, partially offset by a 0.8% to 6.6% increase in the number of target shares as a result of achievement of higher-than-target performance for the PUs granted in 2014. (d) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2015. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2014 based on the certified level of achievement of the performance goals. (e) Represents an adjustment made in March 2016 to the number of shares underlying the PUs granted in 2015 upon certification of the level of achievement of the performance targets for such awards. (f) Vested PUs were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). (g) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. (h) Represents a 2.7% increase in the number of target shares as a result of achievement of higher-than-target performance for certain PUs granted in 2017, partially offset by a 12.5% reduction as a result of achievement of lower-than-target performance for certain PUs granted in 2017. (i) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2017 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. 1,329,270 shares vested in the year ended December 31, 2014 in respect of PUs granted in March 2012. 845,524 shares (net of minimum statutory tax withholding) in respect of such PUs were issued in January 2015. As of December 31, 2017, the total remaining unrecognized stock-based compensation cost related to PUs amounted to $28,992, which will be recognized over the weighted average remaining requisite vesting period of 2.0 years. Employee Stock Purchase Plan (ESPP) On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day of the subsequent May, August, November and February. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP. 18. Stock-based compensation (Continued) During the years ended December 31, 2015, 2016 and 2017, 121,485, 146,685 and 190,435 common shares, respectively, were issued under the ESPP. The ESPP is considered compensatory under FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation—Stock Compensation. The compensation expense for the ESPP during the years ended December 31, 2015, 2016 and 2017 was $292, $428 and $573, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital stock
Capital stock | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Capital stock | 17. Capital stock Share repurchases As of December 31, 2016, the Company’s board of directors (the “Board”) had authorized the Company to repurchase up to $750,000 in value of the Company’s common shares under its share repurchase program first announced in February 2015. On February 10, 2017 the Board approved up to an additional $500,000 in share repurchases, bringing the total authorization under the Company’s existing program to $1,250,000. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be purchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. On March 29, 2017, the Company entered into an accelerated share repurchase (“ASR”) agreement with Morgan Stanley & Co. LLC (the “Dealer”) to repurchase Company common shares for an aggregate purchase price of $200,000. Pursuant to the ASR agreement, as amended in November, 2017, the Company paid the aggregate purchase price to the Dealer upfront and received an initial delivery of 6,578,947 common shares on March 30, 2017, an additional delivery of 350,006 common shares on December 29, 2017 and a final delivery of 163,975 common shares on January 17, 2018 upon final settlement of the transaction. The weighted average price per share of the common shares delivered was $28.20. The Company’s purchase of its common shares under the ASR has been recorded as a reduction in retained earnings. All repurchased shares have been retired. The final number of common shares repurchased by the Company under the ASR agreement was based on the volume-weighted average share price of the Company’s common shares during the term of the transaction, less a discount and subject to adjustments pursuant to the terms of the ASR agreement. The ASR agreement contained customary provisions, including, among other things, with respect to mechanisms to determine the number of shares or the amount of cash that will be delivered at settlement, the required timing of delivery upon settlement, specific circumstances under which adjustments may be made to the repurchase transaction, and specific circumstances under which the repurchase transaction may be canceled prior to the scheduled maturity. During the three months ended March 31, 2017 and March 31, 2018, the Company also purchased 808,293 and 3,015,999 The Company records repurchases of its common shares on the settlement date of each transaction. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares purchased. For the three months ended March 31, 2017 and March 31, 2018, $16 and $60, respectively, was deducted from retained earnings in direct costs related to share repurchases. Dividend In February 2017, the Company’s board of directors approved a dividend program under which the Company paid a regular quarterly cash dividend of $0.06 per share to holders of its common shares, representing an annual dividend of $0.24 per share. On March 28, 2017, the Company paid a dividend of $0.06 per share, amounting to $11,957 in the aggregate, to shareholders of record as of March 10, 2017. On February 12, 2018, the Company announced that its Board of Directors had approved a 25% increase in its quarterly cash dividend to $0.075 per share, up from $0.06 per share in 2017, representing a planned annual dividend of $0.30 per common share, up from $0.24 per share in 2017, payable to holders of the Company’s common shares. On March 21, 2018, the Company paid a dividend of $0.075 per share, amounting to $14,408 in the aggregate, to shareholders of record as of March 9, 2018. | 19. Capital stock The Company’s authorized capital stock as of December 31, 2016 and 2017 consisted of 500 million common shares with a par value of $0.01 per share, and 250 million preferred shares with a par value of $0.01 per share. There were 198,794,052 and 192,825,207 common shares, and no preferred shares, issued and outstanding as of December 31, 2016 and 2017, respectively. Holders of common shares are entitled to one vote per share. Upon the liquidation, dissolution or winding up of the Company, common shareholders are entitled to receive a ratable share of the available net assets of the Company after payment of all debts and other liabilities. The common shares have no preemptive, subscription, redemption or conversion rights. The Company’s board of directors by resolution can establish one or more series of preferred shares having such par value, designations, dividend rates, relative voting rights, conversion or exchange rights, redemption rights, liquidation rights and other relative participation, optional or other rights, qualifications, limitations or restrictions as may be fixed by the board of directors without shareholder approval. Such rights, preferences, powers and limitations as may be established could also have the effect of discouraging an attempt to obtain control of the Company. These preferred shares are of the type commonly known as “blank-check” preferred shares. Under Bermuda law, the Company may declare and pay dividends from time to time unless there are reasonable grounds for believing that the Company is or would, after the payment, be unable to pay its liabilities as they become due or that the realizable value of its assets would thereby be less than the aggregate of its liabilities, its issued share capital, and its share premium accounts. Under the Company’s bye-laws, each common share is entitled to dividends if, as and when dividends are declared by the Company’s board of directors. There are no restrictions in Bermuda on the Company’s ability to transfer funds (other than funds denominated in Bermuda dollars) in or out of Bermuda or to pay dividends to U.S. residents who are holders of common shares. The Company’s ability to declare and pay cash dividends is restricted by its debt covenants. 19. Capital stock (Continued) Share Repurchases As of December 31, 2016, the Company’s board of directors (the “Board”) had authorized the Company to repurchase up to $750,000 in value of the Company’s common shares under its share repurchase program first announced in February 2015. On February 10, 2017 the Board approved up to an additional $500,000 in share repurchases, bringing the total authorization under the Company’s existing program to $1,250,000. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be purchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. On March 29, 2017, the Company entered into an accelerated share repurchase (“ASR”) agreement with Morgan Stanley & Co. LLC (the “Dealer”) to repurchase Company common shares for an aggregate purchase price of $200,000. Pursuant to the ASR agreement, as amended in November 2017, the Company paid the aggregate purchase price to the Dealer upfront and received an initial delivery of 6,578,947 common shares on March 30, 2017 and an additional delivery of 350,006 common shares on December 29, 2017. The total value of the 6,928,953 common shares delivered to the Company through December 29, 2017 was $196,000, and the weighted average price per share of the common shares delivered was $28.29. The Company’s purchase of its common shares under the ASR has been recorded as a reduction in retained earnings. The value of the common shares to be purchased under the ASR but not yet delivered to the Company as of December 31, 2017, amounting to $4,000, was recorded in additional paid-in-capital. All repurchased shares have been retired. The final settlement of the shares repurchased under the ASR was completed in January 2018. The final number of common shares repurchased by the Company under the ASR agreement was based on the volume-weighted average share price of the Company’s common shares during the term of the transaction, less a discount and subject to adjustments pursuant to the terms of the ASR agreement. The ASR agreement contains customary provisions, including, among other things, with respect to mechanisms to determine the number of shares or the amount of cash that will be delivered at settlement, the required timing of delivery upon settlement, specific circumstances under which adjustments may be made to the repurchase transaction, and specific circumstances under which the repurchase transaction may be canceled prior to the scheduled maturity. During the years ended December 31, 2017 and December 31, 2016, the Company also purchased 808,293 and 13,940,782 The Company records repurchases of its common shares on the settlement date of each transaction. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares purchased. For the year ended December 31, 2015, December 31, 2016 and December 31, 2017, $197, $279 and $16, respectively, was deducted from retained earnings in direct costs related to share repurchases. Dividend In February 2017, the Company’s board of directors approved a dividend program under which the Company paid a regular quarterly cash dividend of $0.06 per share to holders of its common shares, representing an annual dividend of $0.24 per share in 2017. On March 28, 2017, June 28, 2017, September 21, 2017, and December |
Earnings per share
Earnings per share | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Earnings per share | 18. Earnings per share The Company calculates earnings per share in accordance with FASB guidance on earnings per share. Basic and diluted earnings per common share give effect to the change in the number of Company common shares outstanding. The calculation of basic earnings per common share is determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the respective periods. Potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, performance units and common shares to be issued under the employee stock purchase plan, have been included in the computation of diluted net earnings per share and the weighted average shares outstanding, except where the result would be anti-dilutive. The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 1,003,048 and 660,000 for the three months ended March 31, 2017 and 2018, respectively. Three months ended March 31, 2017 2018 Net income available to Genpact Limited common shareholders $ 53,338 $ 64,695 Weighted average number of common shares used in computing basic earnings per common share 199,069,528 192,816,626 Dilutive effect of stock-based awards 3,586,409 3,471,943 Weighted average number of common shares used in computing dilutive earnings per common share 202,655,937 196,288,569 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.27 $ 0.34 Diluted $ 0.26 $ 0.33 | 20. Earnings per share The Company calculates earnings per share in accordance with FASB guidance on Earnings per Share. Basic and diluted earnings per common share give effect to the change in the number of common shares outstanding. The calculation of basic earnings per common share was determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding. The potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, common shares to be issued under the ESPP and performance units, have been included in the computation of diluted net earnings per share and number of weighted average shares outstanding, except where the result would be anti-dilutive. The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 2,821,000, 781,215 and 1,007,480 for the years ended December 31, 2015, 2016 and 2017, respectively. Year ended December 31, 2015 2016 2017 Net income available to Genpact Limited common shareholders $ 239,817 $ 269,684 $ 263,111 Weighted average number of common shares used in computing basic earnings per common share 216,606,542 206,861,536 193,864,755 Dilutive effect of stock-based awards 2,538,502 3,264,487 3,184,797 Weighted average number of common shares used in computing dilutive earnings per common share 219,145,044 210,126,023 197,049,552 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 1.11 $ 1.30 $ 1.36 Diluted $ 1.09 $ 1.28 $ 1.34 |
Cost of revenue
Cost of revenue | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Cost of revenue | 20. Cost of revenue Cost of revenue consists of the following: Three months ended March 31, 2017 2018 Personnel expenses $ 269,189 $ 310,132 Operational expenses 102,716 121,357 Depreciation and amortization 11,432 12,835 $ 383,337 $ 444,324 | 21. Cost of revenue Cost of revenue consists of the following: Year ended December 31, 2015 2016 2017 Personnel expenses $ 1,013,209 $ 1,061,501 $ 1,155,745 Operational expenses 432,535 446,922 481,012 Depreciation and amortization 47,803 46,284 46,947 $ 1,493,547 $ 1,554,707 $ 1,683,704 |
Selling, general and administra
Selling, general and administrative expenses | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Selling General And Administrative Expenses [Abstract] | ||
Selling, general and administrative expenses | 21. Selling, general and administrative expenses Selling, general and administrative expenses consist of the following: Three months ended March 31, 2017 2018 Personnel expenses $ 122,569 $ 128,068 Operational expenses 35,813 40,389 Depreciation and amortization 2,476 2,652 $ 160,858 $ 171,109 | 22. Selling, general and administrative expenses Selling, general and administrative expenses consist of the following: Year ended December 31, 2015 2016 2017 Personnel expenses $ 430,088 $ 469,956 $ 501,445 Operational expenses 169,042 174,060 178,573 Depreciation and amortization 8,984 9,013 9,829 $ 608,114 $ 653,029 $ 689,847 |
Other operating (income) expens
Other operating (income) expense, net | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Other operating (income) expense, net | 22. Other operating (income) expense, net Three months ended March 31, 2017 2018 Other operating (income) expense $ (4,400 ) $ (235 ) Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) $ (3,138 ) $ 17 Other operating (income) expense, net $ (7,538 ) $ (218 ) | 23. Other operating (income) expense, net Year ended December 31, 2015 2016 2017 Other operating (income) expense $ (2,515 ) $ (1,266 ) $ (7,277 ) Provision for impairment of intangible assets and property, plant and equipment 10,714 11,195 9,311 Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) (11,521 ) (14,869 ) (3,695 ) Other operating (income) expense, net $ (3,322 ) $ (4,940 ) $ (1,661 ) |
Interest income (expense), net
Interest income (expense), net | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Banking And Thrift Interest [Abstract] | ||
Interest income (expense), net | 23. Interest income (expense), net Three months ended March 31, 2017 2018 Interest income $ 1,131 $ 3,370 Interest expense (6,624 ) (11,470 ) Interest income (expense), net $ (5,493 ) $ (8,100 ) | 24. Interest income (expense), net Interest income (expense), net consists of the following: Year ended December 31, 2015 2016 2017 Interest income $ 8,676 $ 7,247 $ 8,182 Interest expense (29,828 ) (23,431 ) (39,917 ) Loss on extinguishment of debt (10,115 ) - - Interest income (expense), net $ (31,267 ) $ (16,184 ) $ (31,735 ) |
Income taxes
Income taxes | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income taxes | 24. Income taxes The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. The Company’s effective tax rate, or ETR, is 15.7% in the first quarter of 2018. The quarterly tax expense includes certain discrete items recorded in the first quarter amounting to $2,746, resulting in lower tax expense. The Company recognized tax benefits, including deductions for equity-based compensation expenses recorded upon vesting of equity awards (“excess tax benefits”) and employment-related tax deductions in India. The tax benefits were partly offset by the partial expiry of tax holidays in India and changes in jurisdictional mix of income. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code. The Tax Act also establishes new tax laws that will affect 2018 and subsequent years, including a reduction in the U.S. federal corporate income tax rate from 35% to 21%. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. The Company’s estimate of transition tax on mandatory repatriation introduced under the Tax Act was provisional as of December 31, 2017 and remains provisional as of March 31, 2018 based on information available as of March 31, 2018. The Company has not recorded any tax liability for transition tax as of December 31, 2017 and March 31, 2018 pending the calculation of the earnings and profit pool of its controlled foreign corporations. The Company will recognize any changes to provisional amounts as it refines its estimates and interpretations of the application of the Tax Act. The Company expects to complete its analysis of the provisional items during the second half of 2018. The effects of other provisions of the Tax Act are not expected to have a material impact on the Company’s consolidated financial statements for the quarter ended March 31, 2018. 24. Income taxes (continued) The Company reports its gain/loss on derivatives designated as cash flow hedges, actuarial gain/loss on retirement benefits and currency translation adjustment, net of taxes to the extent applicable, in accumulated other comprehensive income. The Company follows the specific identification approach for releasing stranded tax effects from accumulated other comprehensive income (loss) (“AOCI”) upon recognition of these AOCI items in the statement of income. As of December 31, 2017, due to a reduction in the U.S. federal corporate income tax rate under the Tax Act, the Company revalued its net deferred tax assets, including deferred tax liabilities recorded through AOCI. Based on this revaluation, the Company recorded a tax gain of $2,265 relating to derivatives, reducing its net deferred tax liability balance, which was recorded as an income tax benefit in the continuing operations for the year ended December 31, 2017. In the quarter ended March 31, 2018, the Company elected to early adopt ASU 2018-02, effective January 1, 2018, and made an election to reclassify the stranded income tax effects of the Tax Act from AOCI to retained earnings for all items of AOCI. The Company has elected to adopt the new guidance at the beginning of the period, and no prior periods have been adjusted. Accordingly, a stranded tax effect in AOCI of $2,265 resulting from the Tax Act has been adjusted through retained earnings. As of December 31, 2017, the Company had unrecognized tax benefits amounting to $26,060, including an amount of $24,877, which, if recognized, would impact the effective tax rate. The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2018 to March 31, 2018: 2018 Opening balance at January 1 $ 26,060 Increase related to prior year tax positions, including recorded in acquisition accounting 229 Decrease related to prior year tax positions (8 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (384 ) Effect of exchange rate changes (108) Closing balance at March 31 $ 25,789 The Company’s unrecognized tax benefits as of March 31, 2018 include an amount of $24,604, which, if recognized, would impact the effective tax rate. As of March 31, 2018 and December 31, 2017, the Company had accrued approximately $4,806 and $4,614, respectively, in interest relating to unrecognized tax benefits. During the year ended December 31, 2017 and the three months ended March 31, 2018, the company recognized approximately $(224) and $285, respectively, excluding the impact of exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2017 and March 31, 2018, the Company had accrued approximately $1,033 and $1,024, respectively, for penalties. | 25. Income taxes Income tax expense (benefit) for the years ended December 31, 2015, 2016 and 2017 is allocated as follows: Year ended December 31, 2015 2016 2017 Income from continuing operations $ 61,937 $ 62,098 $ 59,742 Other comprehensive Income: Unrealized gains (losses) on cash flow hedges 13,816 23,809 457 Retirement benefits 1,304 (1,885 ) 670 Additional paid in capital: Excess tax benefit on stock-based compensation (6,560 ) — — Retained earnings: Deferred tax assets recognized on early adoption of ASU 2016-09 — (24,912 ) — The components of income before income tax expense from continuing operations are as follows: Year ended December 31, 2015 2016 2017 Domestic (U.S.) $ 23,122 $ 44,110 $ 8,440 Foreign (Non-U.S.) 278,632 285,535 312,143 Income before income taxes $ 301,754 $ 329,645 $ 320,583 25. Income taxes (Continued) Income tax expense (benefit) attributable to income from continuing operations consists of: Year ended December 31, 2015 2016 2017 Current taxes: Domestic (U.S. federal taxes) $ 12,142 $ 78 $ 3,380 Domestic (U.S. state taxes) 301 1,069 1,268 Foreign (Non-U.S.) 68,207 30,497 65,485 $ 80,650 $ 31,644 $ 70,133 Deferred taxes: Domestic (U.S. federal taxes) $ (5,396 ) $ 11,379 $ 3,549 Domestic (U.S. state taxes) 344 (459 ) (2,809 ) Foreign (Non-U.S.) (13,661 ) 19,534 (11,131 ) $ (18,713 ) $ 30,454 $ (10,391 ) Total income tax expense (benefit) $ 61,937 $ 62,098 $ 59,742 Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes, as a result of the following: Year ended December 31, 2015 2016 2017 Income before income tax expense $ 301,754 $ 329,645 $ 320,583 Statutory tax rates 35 % 35 % 35 % Computed expected income tax expense 105,614 115,376 112,204 Increase (decrease) in income taxes resulting from: Foreign tax rate differential (16,550 ) (18,574 ) (25,224 ) Tax benefit from tax holiday (38,039 ) (32,893 ) (35,814 ) Non-deductible expenses 1,884 2,295 1,146 Effect of change in tax rates 1,436 353 2,778 Change in valuation allowance (33 ) (4,830 ) 9,041 Unrecognized tax benefits 6,272 (627 ) 1,611 Other* 1,353 998 (6,000 ) Reported income tax expense (benefit) $ 61,937 $ 62,098 $ 59,742 *During 2017, following the transfer/closure of certain affiliated entities, deferred tax liabilities recorded against the outside basis difference amounting to $9,600 were reversed. It was not more likely than not that the resulting net deferred tax asset would be realized. Therefore, a full valuation allowance was established to offset the reduction in deferred tax liabilities. A portion of the profits of the Company’s operations is exempt from income tax in India. One of the Company’s Indian subsidiaries has sixteen units eligible for a tax holiday as a special economic zone unit in respect of 100% of the export profits it generates for a period of 5 years from commencement, 50% of such profits for the next 5 years (year 6 to year 10 from commencement) and 50% of the profits for an additional period of 5 years (year 11 to year 15 from commencement), subject to the satisfaction of certain capital investment requirements. The tax holidays for the Company’s existing special economic zone units will begin to expire on March 31, 2022 and will have fully expired on March 31, 2029, assuming the Company satisfies the capital investment requirements. The effect of the Indian tax holiday on basic earnings per share was $0.18, $0.19 and $0.18, respectively, for the years ended December 31, 2015, 2016 and 2017. The effect of the tax holiday on diluted earnings per share was $0.17, $0.18 and $0.18, respectively, for the years ended December 31, 2015, 2016 and 2017. 25. Income taxes (Continued) The components of the Company’s deferred tax balances as of December 31, 2016 and 2017 are as follows: As of December 31, 2016 2017 Deferred tax assets Net operating loss carryforwards $ 52,997 $ 55,500 Accrued liabilities and other expenses 19,840 41,177 Provision for doubtful debts 6,419 10,509 Property, plant and equipment 3,445 1,270 Unrealized losses on cash flow hedges, Net 558 275 Share-based compensation 19,054 19,789 Retirement benefits 5,067 5,817 Deferred revenue 44,892 22,948 Tax credit carryforwards 34,509 35,322 Other 8,876 11,571 Gross deferred tax assets $ 195,657 $ 204,178 Less: valuation allowance (14,746 ) (24,549 ) Total deferred tax assets $ 180,911 $ 179,629 Deferred tax liabilities Intangible assets $ 13,519 $ 15,954 Property, plant and equipment 2,745 1,131 Deferred cost 41,950 33,816 Investments in foreign subsidiaries not indefinitely reinvested 29,546 18,949 Unrealized gains on cash flow hedges, net 14,350 14,711 Other 11,073 24,886 Total deferred tax liabilities $ 113,183 $ 109,447 Net deferred tax asset $ 67,728 $ 70,182 As of December 31, Classified as 2016 2017 Deferred tax assets Non-current $ 70,143 $ 76,929 Deferred tax liabilities Non-current 2,415 6,747 $ 67,728 $ 70,182 The change in the total valuation allowance for deferred tax assets as of December 31, 2015, 2016 and 2017 is as follows: Year ended December 31, 2015 2016 2017 Opening valuation allowance $ 21,094 $ 20,091 $ 14,746 Reduction during the year (3,499 ) (7,299 ) (3,957 ) Addition during the year 2,496 1,954 13,760 Closing valuation allowance $ 20,091 $ 14,746 $ 24,549 25. Income taxes (Continued) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences are deductible. Management considers the scheduled reversal of deferred tax liabilities and projected taxable income in making this assessment. In order to fully realize a deferred tax asset, the Company must generate future taxable income prior to the expiration of the deferred tax asset under applicable law. Based on the level of historical taxable income and projections for future taxable income over the periods during which the Company’s deferred tax assets are deductible, management believes that it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances as of December 31, 2017. The amount of the Company’s deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. In 2016, one of the Company’s subsidiaries filed amended tax returns with respect to prior years, resulting in revised assessments, higher taxable income and the utilization of operating loss carryforwards. The use of operating loss carryforwards resulted in the complete reversal of the subsidiary’s remaining valuation allowance of $3,377. On January 1, 2016, the Company elected the early adoption of ASU 2016-09, which was applied using a modified retrospective approach. Accordingly, excess tax benefits relating to the exercise of stock options prior to December 31, 2015 amounting to $24,912 were recorded through retained earnings. For the year ended December 31, 2016 and 2017, the Company has recognized net excess tax benefits of $1,004 and $1,723 in income tax expense attributable to continuing operations. The Company recorded excess tax benefits of $6,560, $0, and $0 through additional paid-in capital during the years ended December 31, 2015, 2016 and 2017, respectively. As of December 31, 2017, the Company’s deferred tax assets related to net operating loss carryforwards of $223,415 amounted to $50,495 (excluding state net operating losses). Net operating losses of subsidiaries in the United Kingdom, Singapore, Malaysia, Australia, Brazil, Israel, South Africa, Hong Kong and Luxembourg amounted to $126,612 and can be carried forward for an indefinite period. 25. Income taxes (Continued) The Company’s remaining tax loss carryforwards expire as set forth in the table below: US – Federal Europe Others Year ending December 31, 2018 $ — $ — $ 20 2019 — — 72 2020 — 1,872 62 2021 — 581 2,084 2022 — 5,253 60 2023 — 8,500 953 2024 — 1,213 7,941 2025 — 28,222 9,647 2026 9,511 2,263 3,072 2027 9,913 — 2,053 2028 — 33 2,451 2034 — — 1,027 $ 19,424 $ 47,937 $ 29,442 In the table above, “Europe” includes net operating losses of subsidiaries in Hungary, Poland, the Netherlands, the Czech Republic, Slovakia, and Portugal, while “Others” includes net operating losses of subsidiaries in Mexico, Japan, China, India and Canada. As of December 31, 2017, the Company had additional deferred tax assets for U.S. state and local tax loss carryforwards amounting to $5,005 with varying expiration periods between 2018 and 2036. As of December 31, 2017, the company had a total foreign tax credit carryforward of $33,220, which will expire as set forth in the table below: Year ending December 31, Amount 2023 $ 893 2024 1,202 2025 15,552 2026 8,481 2027 5,362 2028 1,730 $ 33,220 Undistributed earnings of the Company’s foreign (non-Bermuda) subsidiaries which cannot be repatriated in a tax-free manner and for which a deferred tax liability has not been recognized amounted to $36,029 as of December 31, 2017. The Company has not accrued any income, distribution or withholding taxes that would arise if such earnings were repatriated. Due to the Company’s changing corporate structure, the various methods that are available to repatriate earnings, and uncertainty relative to the applicable taxes at the time of repatriation, it is not practicable to determine the amount of tax that would be imposed upon repatriation. If undistributed earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, the company will accrue the applicable amount of taxes associated with such earnings at that time. 25. Income taxes (Continued) As of December 31, 2017, $499,532 of the Company’s $504,468, in cash and cash equivalents was held by the Company’s foreign (non-Bermuda) subsidiaries. $243,813 of this cash is held by foreign subsidiaries for which the Company expects to incur and has accrued a deferred tax liability on the repatriation of $17,343 of retained earnings. $122,674 of the Company’s cash and cash equivalents is held by foreign subsidiaries in jurisdictions where no tax is expected to be imposed upon repatriation. The remaining $133,045 in cash and cash equivalents held by certain foreign subsidiaries of the Company is being indefinitely reinvested. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that affect 2017. The Tax Act also establishes new tax laws that will affect 2018 and subsequent years, including a reduction in the U.S. federal corporate income tax rate from 35% to 21%. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. As a result of the reduction in the federal corporate income tax rate, the Company has revalued its net deferred tax assets, excluding tax credits to the extent affected by changes in the law as of December 31, 2017. Based on this revaluation, the Company has recorded a net tax expense of $3,182 to reduce its net deferred tax asset balance, which was recorded as additional income tax expense for the year ended December 31, 2017. Additionally, the Company has claimed 100% depreciation on $7,685 of the investments it made in depreciable property after September 27, 2017. The estimation of transition tax on mandatory repatriation introduced under the Tax Act is provisional, which is currently estimated based on information available as of December 31, 2017. The Company has not recorded any tax liability for transition tax as of December 31, 2017 pending detailed workings for the earnings and profit pool of its controlled foreign corporations. The Company will recognize any changes to the provisional amounts as it refines its estimates and interpretations of the application of the Tax Act. The Company expects to complete its analysis of the provisional items during the second half of 2018. The effects of other provisions of the Tax Act are not expected to have a material impact on the Company’s consolidated financial statements for the year ended December 31, 2017. 25. Income taxes (Continued) The following table summarizes activities related to our unrecognized tax benefits from January 1 to December 31 for each of 2015, 2016 and 2017: Year Ended December 31, 2015 2016 2017 Opening balance at January 1 $ 22,718 $ 26,357 $ 23,467 Increase related to prior year tax positions, including recorded in acquisition accounting 2,000 370 2,582 Decrease related to prior year tax positions — (1,506 ) (1,398 ) Decrease related to divestiture of business — (345 ) — Decrease related to prior year tax position due to lapse of applicable statute of limitation (820 ) (2,122 ) (1,019 ) Increase related to current year tax positions, including recorded in acquisition accounting 3,544 3,225 1,661 Decrease related to settlements with tax Authorities — (2,000 ) — Effect of exchange rate changes (1,085 ) (512 ) 767 Closing balance at December 31 $ 26,357 $ 23,467 $ 26,060 As of December 31, 2015, 2016 and 2017, the Company had unrecognized tax benefits amounting to $24,935, $22,469 and $24,877, respectively, which, if recognized, would impact the effective tax rate. As of December 31, 2015, 2016 and 2017, the Company had accrued $4,223, $3,856 and $4,614, respectively, in interest relating to unrecognized tax benefits. During the years ended December 31, 2015, 2016 and 2017, the Company recognized $1,152, $(206) and $(224), respectively, excluding exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2015, 2016 and 2017, the company had accrued $958, $977 and $1,033, respectively, for penalties. In the next twelve months and for all tax years that remain open to examinations by U.S. federal and various state, local, and non-U.S. tax authorities, the Company estimates that it is reasonably possible that the total amount of its unrecognized tax benefits will vary. However, the Company does not expect significant changes within the next twelve months other than depending on the progress of tax matters or examinations with various tax authorities, which are difficult to predict. With exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax audits by taxing authorities for years prior to 2013. The Company’s subsidiaries in India and China are open to examination by relevant taxing authorities for tax years beginning on or after April 1, 2009, and January 1, 2007, respectively. The Company regularly reviews the likelihood of additional tax assessments and adjusts its reserves as additional information or events require. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment reporting | 26. Segment reporting The Company manages various types of business process and information technology services in an integrated manner for clients in various industries and geographic locations. The Company’s Chief Executive Officer, who has been identified as the Chief Operation Decision Maker (CODM), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenue and adjusted operating income by identified business units. The identified business units are organized for operational reasons and represent either services-based, customer-based, industry-based or geography-based units. There is significant overlap between the manner in which the business units are organized. Additionally, the composition and organization of the business units is fluid and the structure changes regularly in response to growth of the overall business, acquisitions and changes in the reporting structure, clients, services, industries served, and delivery centers. Based on an overall evaluation of all facts and circumstances, and after combining operating segments with similar economic characteristics that comply with other aggregation criteria specified in the FASB guidance on segment reporting, the Company has determined that it operates as a single reportable segment. Net revenues by service type are as follows: Year ended December 31, 2015 2016 2017 Business process outsourcing $ 1,933,095 $ 2,083,450 $ 2,264,335 Information technology services 527,949 487,306 472,594 Total net revenues $ 2,461,044 $ 2,570,756 $ 2,736,929 Revenues from clients based on the industry serviced are as follows: Year ended December 31, 2015 2016 2017 Banking, financial services and insurance $ 1,030,584 $ 1,055,704 $ 1,105,731 Manufacturing, including pharmaceuticals and medical equipment manufacturing 878,570 958,779 1,002,973 Technology, healthcare and other services 551,890 556,273 628,225 Total net revenues $ 2,461,044 $ 2,570,756 $ 2,736,929 Net revenues from geographic areas based on the location of the Company’s service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. Year ended December 31, 2015 2016 2017 India $ 1,687,699 $ 1,804,113 $ 1,712,783 Asia, other than India 238,529 249,839 286,338 North and Latin America 304,879 282,434 455,059 Europe 229,937 234,370 282,749 Total net revenues $ 2,461,044 $ 2,570,756 $ 2,736,929 Revenues from GE comprised 19%, 14% and 10% of the Company’s consolidated total net revenues in 2015, 2016 and 2017, respectively. No other customer accounted for 10% or more of the Company’s consolidated total net revenues during these periods. 26. Segment reporting (Continued) Property, plant and equipment, net by geographic region are as follows: As of December 31, 2016 2017 India $ 116,417 $ 125,490 Asia, other than India 13,549 15,899 North and Latin America 44,633 38,438 Europe 18,619 27,203 Total $ 193,218 $ 207,030 |
Related party transactions
Related party transactions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||
Related party transactions | 25. Related party transactions The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates. The Company’s related party transactions can be categorized as follows: Revenue from services During the three months ended March 31, 2017 and 2018, the Company recognized net revenues of $83 and $304, respectively During the three months ended March 31, 2017, the Company recognized net revenues of $3,211 Cost of revenue from services The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, which are included in cost of revenue. For the three months ended March 31, 2017 and 2018, cost of revenue includes an amount of $575 and $191, respectively, Selling, general and administrative expenses The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the three months ended March 31, 2017 and 2018, selling, general and administrative expenses include an amount of $94 and $49, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates. During the three months ended March 31, 2018, the Company engaged a significant shareholder to provide certain services Investment in equity affiliates During the three months ended March 31, 2017, the Company invested $467 in its non-consolidating affiliates. During the three months ended March 31, 2017, the Company recorded a charge of $2,821 related to an investment in one of its non-consolidating affiliates. This charge was included in equity-method investment activity, net in the Company’s consolidated statement of income. As of December 31, 2017 and March 31, 2018, the Company’s investments in its non-consolidating affiliates amounted to $886 and $919, respectively. Others During the three months ended March 31, 2017, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $238. 25. Related party transactions (Continued) During the three months ended March 31, 2017, the Company made payments of $1,307 to one of its non-consolidating affiliates under a tax-sharing arrangement in the U.K. This amount represents a portion of the non-consolidated affiliate’s net operating losses surrendered to the Company under the tax sharing arrangement for the years 2015 and 2016. On June 30, 2017, this non-consolidating affiliate ceased to be a related party. | 27. Related party transactions The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates. The Company’s related party transactions can be categorized as follows: Revenue from services In the years ended December 31, 2015, 2016, and 2017, the Company recognized net revenues of $326, $335 and $398, respectively, from a client that is also a significant shareholder of the Company. In the years ended December 31, 2015, 2016 and 2017, the Company recognized net revenues of $7,826, $8,077 and $5,400, respectively, from a client that was a non-consolidating affiliate of the Company. As of June 30, 2017 this non-consolidating affiliate ceased to be a related party. Cost of revenue from services The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in cost of revenue. For the years ended December 31, 2015, 2016 and 2017, cost of revenue includes an amount of $2,173, $2,067 and $2,043, respectively, attributable to the cost of such services provided by the Company’s non-consolidating affiliates. Selling, general and administrative expenses The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the years ended December 31, 2015, 2016 and 2017, selling, general and administrative expenses include an amount of $384, $291 During the years ended December 31, 2015, 2016 and 2017, the Company engaged a significant shareholder of the Company to provide services to the Company at a cost of $421, $58 and $57, respectively. Investment in equity affiliates During the years ended December 31, 2016 and 2017, the Company made investments of $5,884 and $496, respectively, in its non-consolidating affiliates. During the year ended December 31, 2017, the Company recorded a charge of $ 2,849 related to an investment in one of its non-consolidating affiliates. This charge has been included in equity-method investment activity, net in the Company’s consolidated statement of income. 27. Related party transactions (Continued) As of December 31, 2016 and 2017, the Company’s investments in its non-consolidating affiliates amounted to $4,800 and $886, respectively. Others During the years ended December 31, 2015, 2016 and 2017, the Company entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $2,077, $1,162 and $477, respectively. During the year ended December 31, 2017, the Company entered into transactions with a client that is a significant shareholder of the Company for certain cost reimbursements amounting to $127, of which $127 is receivable as of December 31, 2017. During the year ended December 31, 2016, the Company claimed a portion of an equity affiliate’s net operating losses under consortium relief in the United Kingdom amounting to $3,291, which was outstanding and had been included in other liabilities in the company’s consolidated balance sheet as of December 31, 2016. During the year ended December 31, 2017, the Company made a payment of $3,847 to one of its non-consolidating affiliates under a tax-sharing arrangement in the U.K. This amount represents a portion of the non-consolidated affiliate’s net operating losses surrendered to the Company under the tax sharing arrangement for the years 2015 and 2016. As of June 30, 2017 this non-consolidating affiliate ceased to be a related party. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments and contingencies | 27. Commitments and contingencies Capital commitments As of December 31, 2017 and March 31, 2018, the Company has committed to spend $8,314 and $7,221, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases. Bank guarantees The Company has outstanding bank guarantees amounting to $8,879 and $8,385 as of December 31, 2017 and March 31, 2018, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purpose of maintaining a bonded warehouse. These guarantees may be revoked if the government agencies suffer any losses or damages through the breach of any of the covenants contained in the agreements governing such guarantees. Other commitments The Company’s business process delivery centers in India are 100% export oriented units or Software Technology Parks of India (“STPI”) units under the STPI guidelines issued by the Government of India. These units are exempt from customs, central excise duties and levies on imported and indigenous capital goods, stores and spares. The Company has undertaken to pay custom duties, service taxes, levies and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty-free, in the event that certain terms and conditions are not fulfilled. | 28. Commitments and contingencies Capital commitments As of December 31, 2016 and 2017, the Company has committed to spend $5,185 and $8,314, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of such purchases. Bank guarantees The Company has outstanding bank guarantees amounting to $11,958 and $8,879 as of December 31, 2016 and 2017, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purposes of maintaining a bonded warehouse. These guarantees may be revoked by the government agencies if they suffer any losses or damages through the breach of any of the covenants contained in the agreements governing such guarantees. Other commitments The Company’s business process delivery centers in India are 100% export-oriented units or Software Technology Parks of India (“STPI”) units under the STPI guidelines issued by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores, and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. |
Quarterly financial data (unaud
Quarterly financial data (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial data (unaudited) | 29. Quarterly financial data (unaudited) Three months ended Year ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 December 31, 2017 Total net revenues $ 622,995 $ 670,697 $ 708,824 $ 734,413 $ 2,736,929 Gross profit $ 239,658 $ 255,404 $ 279,633 $ 278,530 $ 1,053,225 Income from operations $ 79,096 $ 80,031 $ 97,451 $ 72,049 $ 328,627 Income before equity method investment activity, net and income tax expense $ 69,243 $ 84,582 $ 89,742 $ 81,559 $ 325,126 Net Income $ 52,440 $ 69,102 $ 73,161 $ 66,138 $ 260,841 Net (income) loss attributable to redeemable non-controlling interest $ 898 $ (156 ) $ 584 $ 944 $ 2,270 Net income attributable to Genpact Limited common shareholders $ 53,338 $ 68,946 $ 73,745 $ 67,082 $ 263,111 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.27 $ 0.36 $ 0.38 $ 0.35 $ 1.36 Diluted $ 0.26 $ 0.36 $ 0.38 $ 0.34 $ 1.34 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 199,069,528 191,469,593 192,124,366 192,795,534 193,864,755 Diluted 202,655,937 193,732,406 194,947,699 196,862,168 197,049,552 29. Quarterly financial data (unaudited) (Continued) Three months ended Year ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 December 31, 2016 Total net revenues $ 609,703 $ 630,523 $ 648,783 $ 681,747 $ 2,570,756 Gross profit $ 236,855 $ 246,768 $ 256,351 $ 276,075 $ 1,016,049 Income from operations $ 75,622 $ 79,940 $ 87,124 $ 98,092 $ 340,777 Income before equity method investment activity, net and income tax expense $ 72,664 $ 81,818 $ 87,360 $ 95,502 $ 337,343 Net income $ 58,505 $ 64,788 $ 68,188 $ 76,066 $ 267,547 Net (income) loss attributable to redeemable non-controlling interest $ 289 $ 882 $ 734 $ 232 $ 2,137 Net income attributable to Genpact Limited common shareholders $ 58,794 $ 65,670 $ 68,922 $ 76,298 $ 269,684 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.28 $ 0.31 $ 0.33 $ 0.38 $ 1.30 Diluted $ 0.27 $ 0.31 $ 0.33 $ 0.38 $ 1.28 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 210,780,165 210,178,050 206,146,007 200,341,922 206,861,536 Diluted 213,892,964 213,803,134 209,376,683 203,431,310 210,126,023 |
Subsequent Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Subsequent Events [Abstract] | ||
Subsequent Events | 28. Subsequent Events Share Repurchase Pursuant to its share repurchase program, the Company repurchased 505,520 of its common shares on the open market between April 1, 2018 and May 10, 2018 at a weighted average price of $31.31 per share for an aggregate cash amount of $15,827. | 30. Subsequent Events Share Repurchase Pursuant to its share repurchase program, the Company repurchased 757,526 of its common shares between January 1, 2018 and March 1, 2018 on the open market at a weighted average price of $31.67 per share for an aggregate cash amount of $23,993. The Company repurchased 163,975 of its common shares at a weighted average price of $28.20 per share on January 17, 2018 upon final settlement of the transaction under the Company’s ASR agreement. The Company repurchased 7,092,928 of its common shares in the aggregate under the ASR agreement for an aggregate purchase price of $200,000. Dividend On February 12, 2018, the Company announced that its Board of Directors has approved a 25% increase in its quarterly cash dividend, representing a planned annual dividend of $0.30 per common share, increased from $0.24 per common share in 2017. The Board of Directors also declared a dividend for the first quarter of 2018 of $0.075 per common share, which will be paid on or about March 21, 2018 to shareholders of record as of the close of business on March 9, 2018. The declaration of any future dividends will be at the discretion of the Board of Directors. |
Guarantor financial information
Guarantor financial information | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Guarantor Financial Information [Abstract] | ||
Guarantor financial information | 29. Guarantor financial information In March 2017, Genpact Luxembourg S.à r.l. (hereinafter referred to as the “Issuer”), a wholly-owned subsidiary of the Company, issued $350,000 aggregate principal amount of 3.70% senior notes in a private offering. See Note 12 for additional information. 29. Guarantor financial information (Continued) Condensed Consolidating Balance Sheet As of March 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 8,562 $ 11,206 $ 404,458 $ — $ 424,226 Accounts receivable intercompany, net 76,871 — — (76,871 ) — Accounts receivable, net — — 703,066 — 703,066 Intercompany loans 219,199 — 1,715,536 (1,934,735 ) — Intercompany other receivable 8,675 79,296 103,293 (191,264 ) — Prepaid expenses and other current assets 355 2,609 196,244 - 199,208 Total current assets $ 313,662 $ 93,111 $ 3,122,597 $ (2,202,870 ) $ 1,326,500 Property, plant and equipment, net 352 — 204,683 — 205,035 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 81,734 — 81,734 Investment in subsidiaries 445,319 2,923,598 559,078 (3,927,995 ) — Investment in equity affiliates — — 919 — 919 Investment in debentures, intercompany 704,549 — — (704,549 ) — Intercompany other receivable — 61,503 — (61,503 ) — Intangible assets, net — — 125,781 — 125,781 Goodwill — — 1,337,051 — 1,337,051 Contract cost assets — — 162,435 — 162,435 Other assets — — 157,672 — 157,672 Total assets $ 1,463,882 $ 3,078,212 $ 6,251,950 $ (7,396,917 ) $ 3,397,127 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 275,000 $ — $ 275,000 Intercompany loans 22,000 1,716,537 196,199 (1,934,736 ) — Current portion of long-term debt — — 39,237 — 39,237 Accounts payable 166 — 13,645 — 13,811 Intercompany accounts payable — — 76,871 (76,871 ) — Income taxes payable (972 ) (377 ) 41,375 - 40,026 Intercompany other payable 31,433 75,492 84,339 (191,264 ) — Accrued expenses and other current liabilities 3,011 2,655 497,450 - 503,116 Total current liabilities $ 55,638 $ 1,794,307 $ 1,224,116 $ (2,202,871 ) $ 871,190 Long-term debt, less current portion 347,890 — 649,109 — 996,999 Deferred tax liabilities — — 7,083 — 7,083 Intercompany other payable — — 61,503 (61,503 ) — Non-current intercompany loans payable 500,000 — 704,549 (1,204,549 ) — Other liabilities 1,276 — 154,582 — 155,858 Total liabilities $ 904,804 $ 1,794,307 $ 2,800,942 $ (3,468,923 ) $ 2,031,130 Redeemable non-controlling interest — — — — — Shareholders' equity Common stock 28 1,903 189,649 (189,677 ) 1,903 Additional paid-in capital 575,863 1,424,048 1,108,053 (1,685,067 ) 1,422,897 Retained earnings 37,439 238,673 2,501,881 (2,456,077 ) 321,916 Accumulated other comprehensive income (loss) (54,252 ) (380,719 ) (348,575 ) 402,827 (380,719 ) Total equity 559,078 1,283,905 3,451,008 (3,927,994 ) 1,365,997 Commitments and contingencies — — — — — Total liabilities, redeemable non-controlling interest and equity $ 1,463,882 $ 3,078,212 $ 6,251,950 $ (7,396,917 ) $ 3,397,127 29. Guarantor financial information (Continued) Condensed Consolidating Balance Sheet As of March 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 5,839 $ 5,494 $ 376,853 $ — $ 388,186 Accounts receivable intercompany, net 47,230 — — (47,230 ) — Accounts receivable, net — — 602,871 — 602,871 Intercompany loans 773,171 — 1,449,535 (2,222,706 ) — Intercompany other receivable 12,208 86,632 66,828 (165,668 ) — Prepaid expenses and other current assets 189 514 226,932 — 227,635 Total current assets $ 838,637 $ 92,640 $ 2,723,019 $ (2,435,604 ) $ 1,218,692 Property, plant and equipment, net 508 — 212,054 — 212,562 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 61,029 — 61,029 Investment in subsidiaries 457,607 2,600,712 1,100,784 (4,159,103 ) — Investment in equity affiliates — — 769 — 769 Investment in debentures, intercompany 707,910 — — (707,910 ) — Intercompany other receivable — 36,030 — (36,030 ) — Intangible assets, net — — 69,070 — 69,070 Goodwill — — 1,097,329 — 1,097,329 Other assets — — 252,279 — 252,279 Total assets $ 2,004,662 $ 2,729,382 $ 6,016,333 $ (7,838,647 ) $ 2,911,730 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 15,000 $ — $ 15,000 Intercompany loans 43,385 1,556,150 623,171 (2,222,706 ) — Current portion of long-term debt — — 39,192 — 39,192 Accounts payable 60 31 8,995 — 9,086 Intercompany accounts payable — — 47,230 (47,230 ) — Income taxes payable (210 ) — 33,301 — 33,091 Intercompany other payable 2,622 71,762 91,284 (165,668 ) — Accrued expenses and other current liabilities 7,356 2,749 416,848 — 426,953 Total current liabilities $ 53,213 $ 1,630,692 $ 1,275,021 $ (2,435,604 ) $ 523,322 Long-term debt, less current portion 347,432 — 688,346 — 1,035,778 Deferred tax liabilities 231 — 1,584 — 1,815 Intercompany other payable — — 36,030 (36,030 ) — Non-current intercompany loans payable 500,000 — 707,910 (1,207,910 ) — Other liabilities 3,002 292 162,267 — 165,561 Total liabilities $ 903,878 $ 1,630,984 $ 2,871,158 $ (3,679,544 ) $ 1,726,476 Redeemable non-controlling interest — — 3,610 — 3,610 Shareholders' equity Common stock 28 1,924 189,649 (189,677 ) 1,924 Additional paid-in capital 1,211,108 1,347,262 1,109,207 (2,320,312 ) 1,347,265 Retained earnings (53,239 ) 136,533 2,201,248 (2,064,766 ) 219,776 Accumulated other comprehensive income (loss) (57,113 ) (387,321 ) (358,539 ) 415,652 (387,321 ) Total equity 1,100,784 1,098,398 3,141,565 (4,159,103 ) 1,181,644 Commitments and contingencies — — — — — Total liabilities, redeemable non-controlling interest and equity $ 2,004,662 $ 2,729,382 $ 6,016,333 $ (7,838,647 ) $ 2,911,730 29. Guarantor financial information (Continued) Condensed Consolidating Statement of Income (Loss) Three months ended March 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 11,939 $ — $ 686,449 $ (9,476 ) $ 688,912 Cost of revenue — — 444,324 — 444,324 Gross profit $ 11,939 $ — $ 242,125 $ (9,476 ) $ 244,588 Operating expenses: Selling, general and administrative expenses 1,623 1,492 177,536 (9,542 ) 171,109 Amortization of acquired intangible assets — — 9,936 — 9,936 Other operating (income) expense, net 17 — (235 ) — (218 ) Income (loss) from operations $ 10,299 $ (1,492 ) $ 54,888 $ 66 $ 63,761 Foreign exchange gains (losses), net 953 221 3,624 — 4,798 Interest income (expense), net (3,489 ) — (4,611 ) — (8,100 ) Intercompany interest income (expense), net 20,543 (3,235 ) (17,308 ) — — Other income (expense), net — — 15,550 — 15,550 Income (loss) before equity-method investment activity, net and income tax expense $ 28,306 $ (4,506 ) $ 52,143 $ 66 $ 76,009 Gain (loss) on equity-method investment activity, net 7,443 69,201 34,058 (110,702 ) — Income before income tax expense $ 35,749 $ 64,695 $ 86,201 $ (110,636 ) $ 76,009 Income tax expense 1,691 — 10,384 — 12,075 Net income $ 34,058 $ 64,695 $ 75,817 $ (110,636 ) $ 63,934 Net loss attributable to redeemable non-controlling interest — — (761 ) — (761 ) Net income attributable to Genpact Limited shareholders $ 34,058 $ 64,695 $ 76,578 $ (110,636 ) $ 64,695 29. Guarantor financial information (Continued) Condensed Consolidating Statement of Income (Loss) Three months ended March 31 , 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 7,562 $ — $ 622,995 $ (7,562 ) $ 622,995 Cost of revenue — — 383,337 — 383,337 Gross profit $ 7,562 $ — $ 239,658 $ (7,562 ) $ 239,658 Operating expenses: Selling, general and administrative expenses 1,141 3,789 163,494 (7,566 ) 160,858 Amortization of acquired intangible assets — — 7,242 — 7,242 Other operating (income) expense, net (3,138 ) — (4,400 ) — (7,538 ) Income (loss) from operations $ 9,559 $ (3,789 ) $ 73,322 $ 4 $ 79,096 Foreign exchange gains (losses), net 1,616 (5 ) (6,524 ) — (4,913 ) Interest income (expense), net 17,937 — (23,430 ) — (5,493 ) Intercompany interest income (expense), net 2,246 (2,296 ) 50 — - Other income (expense), net — — 553 — 553 Income (loss) before equity-method investment activity, net and income tax expense $ 31,358 $ (6,090 ) $ 43,971 $ 4 $ 69,243 Gain (loss) on equity-method investment activity, net 1,979 59,428 31,854 (97,819 ) (4,558 ) Income before income tax expense $ 33,337 $ 53,338 $ 75,825 $ (97,815 ) $ 64,685 Income tax expense 1,483 - 10,762 — 12,245 Net income $ 31,854 $ 53,338 $ 65,063 $ (97,815 ) $ 52,440 Net loss attributable to redeemable non-controlling interest — — (898 ) — (898 ) Net income attributable to Genpact Limited shareholders $ 31,854 $ 53,338 $ 65,961 $ (97,815 ) $ 53,338 29. Guarantor financial information (Continued) Condensed Consolidating Statement of Comprehensive Income (Loss) Three months ended March 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 34,058 $ 64,695 $ 76,578 $ (110,636 ) $ 64,695 $ (761 ) Other comprehensive income: — — — — — — Currency translation adjustments (6,353 ) (9,335 ) (9,335 ) 15,688 (9,335 ) (424 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (15,681 ) (18,932 ) (18,932 ) 34,613 (18,932 ) — Retirement benefits, net of taxes 80 513 513 (593 ) 513 — Other comprehensive income (loss) $ (21,954 ) $ (27,754 ) $ (27,754 ) $ 49,708 $ (27,754 ) $ (424 ) Comprehensive income (loss) $ 12,104 $ 36,941 $ 48,824 $ (60,928 ) $ 36,941 $ (1,185 ) Three months ended March 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 31,854 $ 53,338 $ 65,961 $ (97,815 ) $ 53,338 $ (898 ) Other comprehensive income: — — — — — — Currency translation adjustments 43,546 51,627 51,627 (95,173 ) 51,627 (12 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 20,407 18,858 18,858 (39,265 ) 18,858 — Retirement benefits, net of taxes 70 119 119 (189 ) 119 — Other comprehensive income (loss) $ 64,023 $ 70,604 $ 70,604 $ (134,627 ) $ 70,604 $ (12 ) Comprehensive income (loss) $ 95,877 $ 123,942 $ 136,565 $ (232,442 ) $ 123,942 $ (910 ) 29. Guarantor financial information (Continued) Condensed Consolidating Statement of Cash Flows Three months ended March 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ 22,190 $ 9,604 $ (162,656 ) $ 103,540 $ (27,322 ) Investing activities Purchase of property, plant and equipment — — (18,706 ) — (18,706 ) Payment for internally generated intangible assets — — (4,365 ) — (4,365 ) Proceeds from sale of property, plant and equipment — — 144 — 144 Investment in subsidiaries (2,000 ) — 2,066 (66 ) — Payment for business acquisitions, net of cash acquired — — (4,730 ) - (4,730 ) Net cash (used for) provided by investing activities $ (2,000 ) $ — $ (25,591 ) $ (66 ) $ (27,657 ) Financing activities Repayment of capital lease obligations — — (537 ) — (537 ) Proceeds from long-term debt — — — — — Repayment of long-term debt — — (10,000 ) — (10,000 ) Proceeds from short-term borrowings 130 — 105,000 (130 ) 105,000 Proceeds from intercompany loans — 119,000 344 (119,344 ) — Repayment of intercompany loans (16,000 ) — — 16,000 — Proceeds from issuance of common shares under stock-based compensation plans — 4,202 — — 4,202 Payment for net settlement of stock-based awards — (13,284 ) — — (13,284 ) Payment of earn-out/deferred consideration — — (1,476 ) — (1,476 ) Dividend paid — (14,408 ) — — (14,408 ) Payment for stock purchased and retired — (95,984 ) — — (95,984 ) Payment for expenses related to stock purchase — (60 ) — — (60 ) Net cash (used for) provided by financing activities $ (15,870 ) $ (534 ) $ 93,331 $ (103,474 ) $ (26,547 ) Effect of exchange rate changes (265 ) — 1,549 — 1,284 Net increase (decrease) in cash and cash equivalents 4,320 9,070 (94,916 ) — (81,526 ) Cash and cash equivalents at the beginning of the period 4,507 2,136 497,825 — 504,468 Cash and cash equivalents at the end of the period $ 8,562 $ 11,206 $ 404,458 $ — $ 424,226 29. Guarantor financial information (Continued) Condensed Consolidating Statement of Cash Flows Three months ended March 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (314,439 ) $ 9,080 $ (222,607 ) $ 558,994 $ 31,028 Investing activities Purchase of property, plant and equipment — — (17,084 ) — (17,084 ) Payment for internally generated intangible assets — — (2,614 ) — (2,614 ) Proceeds from sale of property, plant and equipment — — 389 — 389 Investment in equity affiliates (9,841 ) — 9,374 — (467 ) Investment in subsidiaries — — 4 (4 ) — Payment for business acquisitions, net of cash acquired — — (9,237 ) — (9,237 ) Net cash (used for) provided by investing activities $ (9,841 ) $ — $ (19,168 ) $ (4 ) $ (29,013 ) Financing activities Repayment of capital lease obligations — — (494 ) — (494 ) Payment of debt issuance costs (1,481 ) — — — (1,481 ) Proceeds from long- term debt 350,000 — — — 350,000 Repayment of long-term debt — — (10,000 ) — (10,000 ) Proceeds from short-term borrowings — — 40,000 — 40,000 Repayment of short-term borrowings — — (185,000 ) — (185,000 ) Proceeds from intercompany loan — 222,500 366,105 (588,605 ) — Repayment of intercompany loans (29,615 ) — — 29,615 — Proceeds from issuance of common shares under stock-based compensation plans — 7,761 — — 7,761 Payment for net settlement of stock-based awards — (9,939 ) — — (9,939 ) Payment of earn-out/deferred consideration — — (1,097 ) — (1,097 ) Dividend paid — (11,957 ) — — (11,957 ) Payment for stock purchased and retired — (219,784 ) — — (219,784 ) Payment for expenses related to stock purchase — (16 ) — — (16 ) Net cash (used for)provided by financing activities $ 318,904 $ (11,435 ) $ 209,514 $ (558,990 ) $ (42,007 ) Effect of exchange rate changes — — 5,555 — 5,555 Net increase (decrease) in cash and cash equivalents (5,376 ) (2,355 ) (32,261 ) — (39,992 ) Cash and cash equivalents at the beginning of the period 11,215 7,849 403,559 — 422,623 Cash and cash equivalents at the end of the period $ 5,839 $ 5,494 $ 376,853 $ — $ 388,186 | 31. Guarantor financial information In March 2017, Genpact Luxembourg S.à r.l. (hereinafter referred to as the “Issuer”), a wholly-owned subsidiary of the Company, issued $350,000 aggregate principal amount of 3.70% senior notes in a private offering. See Note 14 for additional information. 31. Guarantor financial information (continued) Condensed Consolidating Balance Sheet As of December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 4,507 $ 2,136 $ 497,825 — $ 504,468 Accounts receivable intercompany, net 82,935 — — (82,935 ) — Accounts receivable, net — — 693,085 — 693,085 Intercompany loans 194,854 — 1,620,537 (1,815,391 ) — Intercompany other receivable 25,343 82,631 89,189 (197,163 ) — Prepaid expenses and other current assets 311 1,276 234,755 — 236,342 Total current assets $ 307,950 $ 86,043 $ 3,135,391 $ (2,095,489 ) $ 1,433,895 Property, plant and equipment, net 391 — 206,639 — 207,030 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 76,929 — 76,929 Investment in subsidiaries 426,410 2,864,386 529,179 (3,819,975 ) — Investment in equity affiliates — — 886 — 886 Investment in debentures, intercompany 717,909 — — (717,909 ) — Intercompany other receivable — 49,761 — (49,761 ) — Intangible assets, net — — 131,590 — 131,590 Goodwill — — 1,337,122 — 1,337,122 Other assets — — 262,169 — 262,169 Total assets $ 1,452,660 $ 3,000,190 $ 6,179,905 $ (7,183,134 ) $ 3,449,621 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 170,000 $ — $ 170,000 Intercompany loans 38,000 1,597,537 179,854 (1,815,391 ) — Current portion of long-term debt — — 39,226 — 39,226 Accounts payable 103 58 14,889 — 15,050 Intercompany accounts payable — — 82,935 (82,935 ) — Income taxes payable 885 — 29,141 — 30,026 Intercompany other payable 29,526 59,266 108,371 (197,163 ) — Accrued expenses and other current liabilities 5,995 2,390 576,097 — 584,482 Total current liabilities $ 74,509 $ 1,659,251 $ 1,200,513 $ (2,095,489 ) $ 838,784 Long-term debt, less current portion 347,761 — 658,926 — 1,006,687 Deferred tax liabilities — — 6,747 — 6,747 Intercompany other payable — — 49,761 (49,761 ) — Non-current intercompany loans payable 500,000 — 717,909 (1,217,909 ) — Other liabilities 1,211 153 167,245 — 168,609 Total liabilities $ 923,481 $ 1,659,404 $ 2,801,101 $ (3,363,159 ) $ 2,020,827 Redeemable non-controlling interest — — 4,750 — 4,750 Shareholders' equity Common stock 28 1,924 189,649 (189,677 ) 1,924 Additional paid-in capital 575,862 1,421,354 1,107,383 (1,683,231 ) 1,421,368 Retained earnings (12,277 ) 272,738 2,504,580 (2,409,059 ) 355,982 Accumulated other comprehensive income (loss) (34,434 ) (355,230 ) (427,558 ) 461,992 (355,230 ) Total equity 529,179 1,340,786 3,374,054 (3,819,975 ) 1,424,044 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 1,452,660 $ 3,000,190 $ 6,179,905 $ (7,183,134 ) $ 3,449,621 31. Guarantor financial information (continued) Condensed Consolidating Balance Sheet As of December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 11,215 $ 7,849 $ 403,559 $ — $ 422,623 Accounts receivable intercompany, net 55,618 — — (55,618 ) — Accounts receivable, net — — 615,265 — 615,265 Intercompany loans 396,682 — 1,270,150 (1,666,832 ) — Intercompany other receivable 26,985 72,883 57,475 (157,343 ) — Prepaid expenses and other current assets 151 131 188,867 — 189,149 Total current assets $ 490,651 $ 80,863 $ 2,535,316 $ (1,879,793 ) $ 1,227,037 Property, plant and equipment, net 547 — 192,671 — 193,218 Intangible assets, net — — 78,946 — 78,946 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 70,143 — 70,143 Investment in subsidiaries 423,530 2,470,680 1,005,396 (3,899,606 ) — Investment in equity affiliates 4,121 — 679 — 4,800 Investment in debentures, intercompany 675,180 — — (675,180 ) — Intercompany other receivable — 47,954 — (47,954 ) — Goodwill — — 1,069,408 — 1,069,408 Other assets — — 242,328 — 242,328 Total assets $ 1,594,029 $ 2,599,497 $ 5,694,887 $ (7,002,533 ) $ 2,885,880 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 160,000 $ — $ 160,000 Current portion of long-term debt — — 39,181 — 39,181 Intercompany loan 73,000 1,333,650 260,182 (1,666,832 ) — Accounts payable 168 1 9,599 — 9,768 Intercompany accounts payable — — 55,618 (55,618 ) — Income taxes payable 777 — 23,382 — 24,159 Intercompany other payable 2,612 58,440 96,291 (157,343 ) — Accrued expenses and other current liabilities 7,148 3,695 487,404 — 498,247 Total current liabilities $ 83,705 $ 1,395,786 $ 1,131,657 $ (1,879,793 ) $ 731,355 Long-term debt, less current portion — — 698,152 — 698,152 Intercompany other payable — — 47,954 (47,954 ) — Deferred tax liabilities 231 — 2,184 — 2,415 Non-current intercompany loans payable 500,000 — 675,180 (1,175,180 ) — Other liabilities 4,697 307 157,786 — 162,790 Total liabilities $ 588,633 $ 1,396,093 $ 2,712,913 $ (3,102,927 ) $ 1,594,712 Redeemable non-controlling interest — — 4,520 — 4,520 Shareholders’ equity Common stock 28 1,984 189,649 (189,677 ) 1,984 Additional paid-in capital 1,211,108 1,384,468 1,107,348 (2,318,456 ) 1,384,468 Retained earnings (85,093 ) 274,877 2,076,761 (1,908,424 ) 358,121 Accumulated other comprehensive income (loss) (120,647 ) (457,925 ) (396,304 ) 516,951 (457,925 ) Total equity $ 1,005,396 $ 1,203,404 $ 2,977,454 $ (3,899,606 ) $ 1,286,648 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 1,594,029 $ 2,599,497 $ 5,694,887 $ (7,002,533 ) $ 2,885,880 31. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 46,722 $ — $ 2,736,929 $ (46,722 ) $ 2,736,929 Cost of revenue — — 1,683,704 — 1,683,704 Gross profit $ 46,722 $ — $ 1,053,225 $ (46,722 ) $ 1,053,225 Operating expenses: Selling, general and administrative expenses 9,859 21,076 728,531 (69,619 ) 689,847 Amortization of acquired intangible assets — — 36,412 — 36,412 Other operating (income) expense, net (3,412 ) — 1,751 — (1,661 ) Income (loss) from operations $ 40,275 $ (21,076 ) $ 286,531 $ 22,897 $ 328,627 Foreign exchange gains (losses), net 3,312 2 (1,318 ) — 1,996 Interest income (expense), net (11,375 ) — (20,360 ) — (31,735 ) Intercompany interest income (expense), net 47,547 (10,148 ) (37,399 ) — — Other income (expense), net 18,391 — 7,847 — 26,238 Income (loss) before equity-method investment activity, net and income tax expense $ 98,150 $ (31,222 ) $ 235,301 $ 22,897 $ 325,126 Gain (loss) on equity-method investment activity, net (15,058 ) 294,333 75,657 (359,475 ) (4,543 ) Income before income tax expense $ 83,092 $ 263,111 $ 310,958 $ (336,578 ) $ 320,583 Income tax expense 7,435 — 52,307 — 59,742 Net income $ 75,657 $ 263,111 $ 258,651 $ (336,578 ) $ 260,841 Net loss attributable to redeemable non-controlling interest — — (2,270 ) — (2,270 ) Net income attributable to Genpact Limited shareholders $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 31. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 39,518 $ — $ 2,570,756 $ (39,518 ) $ 2,570,756 Cost of revenue — — 1,554,707 — 1,554,707 Gross profit $ 39,518 $ — $ 1,016,049 $ (39,518 ) $ 1,016,049 Operating expenses: Selling, general and administrative expenses 9,499 12,772 672,742 (41,984 ) 653,029 Amortization of acquired intangible assets — — 27,183 — 27,183 Other operating (income) expense, net (4,043 ) (500 ) (397 ) — (4,940 ) Income (loss) from operations $ 34,062 $ (12,272 ) $ 316,521 $ 2,466 $ 340,777 Foreign exchange gains (losses), net (1,633 ) 57 4,206 — 2,630 Interest income (expense), net (1,358 ) — (14,826 ) — (16,184 ) Intercompany interest income (expense), net 81,359 — (81,359 ) — — Other income (expense), net (829 ) (3,390 ) 14,339 — 10,120 Income (loss) before equity-method investment activity, net and income tax expense $ 111,601 $ (15,605 ) $ 238,881 $ 2,466 $ 337,343 Gain (loss) on equity-method investment activity, net 29,969 285,289 133,186 (456,142 ) (7,698 ) Income before income tax expense $ 141,570 $ 269,684 $ 372,067 $ (453,676 ) $ 329,645 Income tax expense 8,384 — 53,714 — 62,098 Net income $ 133,186 $ 269,684 $ 318,353 $ (453,676 ) $ 267,547 Net loss attributable to redeemable non-controlling interest — — (2,137 ) — (2,137 ) Net income attributable to Genpact Limited shareholders $ 133,186 $ 269,684 $ 320,490 $ (453,676 ) $ 269,684 31. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2015 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 34,250 $ — $ 2,461,044 $ (34,250 ) $ 2,461,044 Cost of revenue — — 1,493,547 — 1,493,547 Gross profit $ 34,250 $ — $ 967,497 $ (34,250 ) $ 967,497 Operating expenses: Selling, general and administrative expenses 4,594 21,298 616,472 (34,250 ) 608,114 Amortization of acquired intangible assets — — 28,513 — 28,513 Other operating (income) expense, net 22,149 — (3,203 ) (22,268 ) (3,322 ) Income (loss) from operations $ 7,507 $ (21,298 ) $ 325,715 $ 22,268 $ 334,192 Foreign exchange gains (losses), net (3,574 ) (219 ) 9,062 — 5,269 Interest income (expense), net, intercompany 42,417 2,027 (44,444 ) — — Interest income (expense), net (531 ) — (30,736 ) — (31,267 ) Other income (expense), net — — 4,360 — 4,360 Income (loss) before equity-method investment activity, net and income tax expense $ 45,819 $ (19,490 ) $ 263,957 $ 22,268 $ 312,554 Gain (loss) on equity-method investment activity, net 17,757 237,040 56,416 (322,013 ) (10,800 ) Income before income tax expense $ 63,576 $ 217,550 $ 320,373 $ (299,745 ) $ 301,754 Income tax expense 7,160 — 54,777 — 61,937 Net income $ 56,416 $ 217,550 $ 265,596 $ (299,745 ) $ 239,817 Net loss (income) attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 56,416 $ 217,550 $ 265,596 $ (299,745 ) $ 239,817 31. Guarantor financial information (continued) Condensed Consolidating Statement of Comprehensive Income (Loss) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 $ (2,270 ) Other comprehensive income: Currency translation adjustments 74,716 93,871 93,871 (168,587 ) 93,871 (341 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 9,788 12,611 12,611 (22,399 ) 12,611 — Retirement benefits, net of taxes 475 (3,787 ) (3,787 ) 3,312 (3,787 ) — Other comprehensive income (loss) $ 84,979 $ 102,695 $ 102,695 $ (187,674 ) $ 102,695 $ (341 ) Comprehensive income (loss) $ 160,636 $ 365,806 $ 363,616 $ (524,252 ) $ 365,806 $ (2,611 ) Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 133,186 $ 269,684 $ 320,490 $ (453,676 ) $ 269,684 $ (2,137 ) Other comprehensive income: Currency translation adjustments (31,679 ) (46,340 ) (46,340 ) 78,019 (46,340 ) 104 Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 42,016 43,742 43,742 (85,758 ) 43,742 — Retirement benefits, net of taxes (717 ) (4,042 ) (4,042 ) 4,759 (4,042 ) — Other comprehensive income (loss) $ 9,620 $ (6,640 ) $ (6,640 ) $ (2,980 ) $ (6,640 ) $ 104 Comprehensive income (loss) $ 142,806 $ 263,044 $ 313,850 $ (456,656 ) $ 263,044 $ (2,033 ) Year ended December 31, 2015 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 56,416 $ 217,550 $ 265,596 $ (299,745 ) $ 239,817 $ — Other comprehensive income: Currency translation adjustments (67,173 ) (64,504 ) (64,504 ) 131,677 (64,504 ) — Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 27,247 22,880 22,880 (50,127 ) 22,880 — Retirement benefits, net of taxes 554 2,823 2,823 (3,377 ) 2,823 — Other comprehensive income (loss) $ (39,372 ) $ (38,801 ) $ (38,801 ) $ 78,173 $ (38,801 ) $ — Comprehensive income (loss) $ 17,044 $ 178,749 $ 226,795 $ (221,572 ) $ 201,016 $ — 31. Guarantor financial information (continued) Condensed Consolidating Statement of Cash Flows Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (315,877 ) $ (8,345 ) $ 511,847 $ 171,453 $ 359,078 Investing activities Purchase of property, plant and equipment — — (57,231 ) — (57,231 ) Payment for internally generated intangible assets — — (16,441 ) — (16,441 ) Proceeds from sale of property, plant and equipment — — 1,738 — 1,738 Investment in equity affiliates (523 ) — 27 — (496 ) Investment in subsidiaries (3,638 ) — 51,127 (47,489 ) — Payment for business acquisitions, net of cash acquired — — (284,822 ) — (284,822 ) Proceeds from divestiture of business, net of cash divested — — (4,738 ) — (4,738 ) Net cash (used for) provided by investing activities $ (4,161 ) $ — $ (310,340 ) $ (47,489 ) $ (361,990 ) Financing activities Repayment of capital lease obligations — — (2,708 ) — (2,708 ) Payment of debt issuance costs (2,630 ) — — — (2,630 ) Proceeds from long-term debt 350,000 — — — 350,000 Repayment of long-term debt — — (40,000 ) — (40,000 ) Proceeds from short-term borrowings — — 295,000 — 295,000 Repayment of short-term borrowings — — (285,000 ) — (285,000 ) Proceeds from intercompany loans — 263,886 — (263,886 ) — Repayment of intercompany loans (35,000 ) — (80,328 ) 115,328 — Proceeds from issuance of common shares under stock-based compensation plans — 15,528 — — 15,528 Payment for net settlement of stock-based awards — (10,296 ) — — (10,296 ) Payment of earn-out/deferred consideration — — (6,219 ) — (6,219 ) Dividend paid — (46,686 ) — — (46,686 ) Payment for stock purchased and retired — (219,784 ) — — (219,784 ) Payment for expenses related to stock purchase — (16 ) — — (16 ) Change in amounts due from/to consolidated affiliates — — (24,594 ) 24,594 — Excess tax benefit on stock-based compensation — — — — — Net cash (used for) provided by financing activities $ 312,370 $ 2,632 $ (143,849 ) $ (123,964 ) $ 47,189 Effect of exchange rate changes 960 — 36,608 — 37,568 Net increase (decrease) in cash and cash equivalents (7,668 ) (5,713 ) 57,658 — 44,277 Cash and cash equivalents at the beginning of the period 11,215 7,849 403,559 — 422,623 Cash and cash equivalents at the end of the period $ 4,507 $ 2,136 $ 497,825 $ — $ 504,468 31. Guarantor financial information (continued) Condensed Consolidating Statement of Cash Flows Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (42,212 ) $ 25,592 $ (66,519 ) $ 428,911 $ 345,772 Investing activities Purchase of property, plant and equipment (625 ) — (81,301 ) — (81,926 ) Payment for internally generated intangible assets — — (6,846 ) — (6,846 ) Proceeds from sale of property, plant and equipment — — 547 — 547 Investment in equity affiliates (5,884 ) — (3,736 ) — (9,620 ) Investment in subsidiaries (53,619 ) — (8,101 ) 61,720 - Payment for business acquisitions, net of cash acquired — — (45,162 ) — (45,162 ) Proceeds from divestiture of business, net of cash divested — — 17,242 — 17,242 Net cash (used for) provided by investing activities $ (60,128 ) $ — $ (127,357 ) $ 61,720 $ (125,765 ) Financing activities Repayment of capital lease obligations — — (1,793 ) — (1,793 ) Repayment of long-term debt — — (40,000 ) — (40,000 ) Proceeds from short-term borrowings — — 200,000 — 200,000 Repayment of short-term borrowings — — (61,500 ) — (61,500 ) Proceeds from intercompany loans 73,000 303,000 50,445 (426,445 ) — Repayment of intercompany loans — — — — — Proceeds from issuance of common shares under stock-based compensation plans — 18,228 — — 18,228 Proceeds from issuance of common shares 40,000 — — (40,000 ) — Payment for net settlement of stock-based awards — (769 ) — — (769 ) Payment of earn-out/deferred consideration — — (1,485 ) — (1,485 ) Payment for stock purchased and retired — (345,200 ) 24,186 (24,186 ) (345,200 ) Payment for expenses related to stock purchase — (279 ) — — (279 ) Net cash (used for) provided by financing activities $ 113,000 $ (25,020 ) $ 169,853 $ (490,631 ) $ (232,798 ) Effect of exchange rate changes (361 ) — (15,132 ) — (15,493 ) Net increase (decrease) in cash and cash equivalents 10,660 572 (24,023 ) — (12,791 ) Cash and cash equivalents at the beginning of the period 916 7,277 442,714 — 450,907 Cash and cash equivalents at the end of the period $ 11,215 $ 7,849 $ 403,559 $ — $ 422,623 31. Guarantor financial information (continued) Condensed Consolidating Statement of Cash Flows Year ended December 31, 2015 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (9,868 ) $ 183,510 $ 347,114 $ (193,315 ) $ 327,441 Investing activities Purchase of property, plant and equipment — — (62,173 ) — (62,173 ) Proceeds from sale of property, plant and equipment — — 1,486 — 1,486 Investment in equity affiliates (6,084 ) — (12,339 ) — (18,423 ) Investment in subsidiaries (21,670 ) — (687,455 ) 709,125 — Payment for business acquisitions, net of cash acquired — — (21,363 ) — (21,363 ) Payment for investment in debentures, intercompany (736,692 ) — — 736,692 — Net cash (used for) provided by investing activities $ (764,446 ) $ — $ (781,844 ) $ 1,445,817 $ (100,473 ) Financing activities Repayment of capital lease obligations — — (2,035 ) — (2,035 ) Payment of debt issuance and refinancing costs — — (6,584 ) — (6,584 ) Proceeds from long-term debt — — 800,000 — 800,000 Repayment of long-term debt — — (684,875 ) — (684,875 ) Proceeds from short-term borrowings — — 1,451,500 — 1,451,500 Repayment of short-term borrowings — — (1,565,000 ) — (1,565,000 ) Proceeds from intercompany loans — 28,500 - (28,500 ) — Repayment of intercompany loans — — (228,375 ) 228,375 — Proceeds from issuance of common shares under stock-based compensation plans — 16,088 — — 16,088 Proceeds from issuance of common shares 747,656 — (6,556 ) (741,100 ) — Payment for net settlement of stock-based awards — (7,194 ) — — (7,194 ) Payment of earn-out/deferred consideration — — (230 ) — (230 ) Proceeds from issuance of debentures, intercompany — — 736,692 (736,692 ) — Payment for stock purchased and retired — (226,917 ) — — (226,917 ) Payment for expenses related to stock purchase — (197 ) (31,975 ) 31,975 (197 ) Excess tax benefit on stock-based compensation — 6,560 6,560 (6,560 ) 6,560 Net cash (used for) provided by financing activities $ 747,656 $ (183,160 ) $ 469,122 $ (1,252,502 ) $ (218,884 ) Effect of exchange rate changes (159 ) — (18,806 ) — (18,965 ) Net increase (decrease) in cash and cash equivalents (26,658 ) 350 34,392 — 8,084 Cash and cash equivalents at the beginning of the period 27,733 6,927 427,128 — 461,788 Cash and cash equivalents at the end of the period $ 916 $ 7,277 $ 442,714 $ — $ 450,907 |
Net revenues
Net revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenues [Abstract] | |
Net revenues | 19. Disaggregation of revenue In the following tables, revenue is disaggregated by customer classification, service type, major industries serviced and location of service delivery centers. Three months ended March 31, 2017 2018 GE $ 69,254 $ 58,049 Global Clients 553,741 630,863 Total net revenues $ 622,995 $ 688,912 Three months ended March 31, 2017 2018 Business process outsourcing $ 511,283 $ 574,061 Information technology services 111,712 114,851 Total net revenues $ 622,995 $ 688,912 19. Three months ended March 31, 2017 2018 Banking, financial services and insurance $ 247,012 $ 275,627 Manufacturing, including pharmaceuticals and medical equipment manufacturing 229,214 247,125 Technology, healthcare and other services 146,769 166,160 Total net revenues $ 622,995 $ 688,912 Three months ended March 31, 2017 2018 India $ 411,055 $ 389,134 Asia, other than India 66,662 79,461 North and Latin America 85,042 152,280 Europe 60,236 68,037 Total net revenues $ 622,995 $ 688,912 Contract balances Accounts receivable include amounts for services that the Company has performed but for which payment has not been received. The Company typically follows a 30-day billing cycle and, as such, at any point in time may have accrued up to 30 days of revenues that have not been billed. The Company has determined in instances where the timing of revenue recognition differs from the timing of invoicing, the contracts generally do not include a significant financing component. Refer to note 4 for details on the Company’s accounts receivable and reserve for doubtful receivables. The following table provides details of the Company’s contract liabilities: Description Three months ended March 31, 2018 Advances from customers Deferred transition revenue Opening balance as of January 1, 2018 $ 26,266 $ 101,785 Additions 11,248 11,083 Revenue recognized (2,944) (10,430) Currency translation adjustments — (10) Closing balance as of March 31, 2018 $ 34,570 $ 102,428 19. The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of March 31, 2018: Description Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 102,428 $ 47,714 $ 47,818 $ 6,676 $ 220 The following table provides details of the Company’s contract assets: Description Three months ended March 31, 2018 Opening balance as of January 1, 2018 $ 43,366 Additions 10,839 Reduction in revenue recognized (5,902) Closing balance as of March 31, 2018 $ 48,303 The following table provides details of the Company’s contract cost assets: Description Three months ended March 31, 2018 Sales incentive programs Transition activities Opening balance as of January 1, 2018 $ 23,227 $ 139,284 Closing balance as of March 31, 2018 23,271 139,164 Amortization during three months ended March 31, 2018 3,239 11,579 |
Other Income (expense), net
Other Income (expense), net | 3 Months Ended |
Mar. 31, 2018 | |
Other Nonoperating Income Expense [Abstract] | |
Other Income (expense), net | 26. Other Income (expense), net Three months ended March 31, 2017 2018 Government incentives $ — $ 15,500 Other income/(expense) 553 50 Other income (expense), net $ 553 $ 15,550 |
Summary of significant accoun41
Summary of significant accounting policies (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Basis of preparation and principles of consolidation | (a) Basis of preparation and principles of consolidation The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year. The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding changes to additional paid in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income. | (a) Basis of preparation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income. |
Use of estimates | (b) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, variable consideration, and other obligations for revenue recognition 2. Summary of significant accounting policies (Continued) and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. | (b) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. 2. Summary of significant accounting policies (Continued) Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. |
Revenue recognition | 2. Summary of significant accounting policies (Continued) Revenue Recognition The Company derives its revenue primarily from business process outsourcing and information technology services, which primarily are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when the promised services are delivered to customers for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those services. Revenues from services rendered under time-and materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. Customer contracts can also include incentive payments received for discrete benefits delivered or promised to be delivered to clients or service level agreements that could result in credits or refunds to the customer. Revenues relating to such arrangements are accounted for as variable consideration when the amount of revenue to be recognized can be estimated to the extent that it is probable that a significant reversal of any incremental revenue will not occur The Company has deferred revenue attributable to certain process transition activities, with respect to its customers where such activities do not represent separate performance obligation. Revenues relating to such transition activities are classified under contract liabilities and subsequently recognized ratably over the period in which the related services are performed. Costs relating to such transition activities are fulfillment costs which are directly related to the contract and result in generation or enhancement of resources and are expected to be recoverable under the contract and thereby classified as contract cost assets and are recognized ratably over the estimated expected period of benefit, under Cost of Revenue. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues. Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company enters into multiple-element revenue arrangements in which a client may purchase a combination of products or services. Revenue from multiple-element arrangements is recognized, for each element, based on allocation of the transaction price to each performance obligation on a relative standalone basis. Certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription based. Revenue from distinct perpetual licenses is recognized upfront at the point in time when the software is made available to the customer. Revenue from subscription based licenses is recognized as ratably over the subscription term. All incremental and direct costs incurred for acquiring contracts, such as certain sales commission, are classified as contract cost asset. Such costs are amortized over the expected period of benefit and recorded under Selling, General and Administrative Expenses. Other upfront fees paid to customers are classified as contract asset. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and reduced from revenue. Timing of revenue recognition may differ from the timing of invoicing to customers. If payment is received in respect of services prior to the delivery of services, the payment is recognized as an advance from customers and classified as contract liabilities. Contract assets and contract liabilities relating to the same customer contract have been offset and presented on a net basis in the consolidated financial statements. See note 19 for information and related disclosures regarding contract balances. 2. Summary of significant accounting policies (Continued) For a description of the Company’s revenue recognition accounting policy in effect before the Company’s adoption of ASC 606, see Note 3—“Summary of significant accounting policies” under Item 1 —“Financial Statements” and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations”—“Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Significant judgements The Company has contracts with customers which often include promises to transfer multiple products and services to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation. In instances where the standalone selling price is not directly observable, it is determined using information that may include market conditions and other observable inputs. Customer contracts can include incentive payments received for discrete benefits delivered to clients or service level agreements that could result in credits or refunds to the customer. Such amounts are estimated at contract inception and are adjusted at the end of each reporting period as additional information becomes available only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Impacts on consolidated financial statements The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for the three months ended March 31, 2018. Consolidated Balance sheet As of March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 424,226 $ 424,226 Accounts receivable, net 703,066 703,066 Prepaid expenses and other current assets (a, c) 199,208 74,092 273,300 Total current assets $ 1,326,500 74,092 $ 1,400,592 Property, plant and equipment, net 205,035 205,035 Deferred tax assets 81,734 81,734 Investment in equity affiliates 919 919 Intangible assets, net 125,781 125,781 Goodwill 1,337,051 1,337,051 Contract cost assets (a, b) 162,435 (162,435) — Other assets (a, c) 157,672 89,499 247,171 Total assets $ 3,397,127 1,156 $ 3,398,283 Liabilities and equity Current liabilities Short-term borrowings $ 275,000 $ 275,000 Current portion of long-term debt 39,237 39,237 Accounts payable 13,811 13,811 Income taxes payable 40,026 40,026 Accrued expenses and other current liabilities (c) 503,116 8,429 511,545 Total current liabilities $ 871,190 8,429.00 $ 879,619 Long-term debt, less current portion 996,999 996,999 Deferred tax liabilities (b) 7,083 (5,303) 1,780 Other liabilities (c) 155,858 15,998 171,856 Total liabilities $ 2,031,130 19,124 $ 2,050,254 Redeemable non-controlling interest - - Shareholders' equity Preferred shares, $0.01 par value, 250,000,000 authorized, none issued Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and 190,613,135 issued and outstanding as of December 31, 2017 and March 31, 2018, respectively 1,903 1,903 Additional paid-in capital 1,422,897 1,422,897 Retained earnings (b) 321,916 (17,968) 303,948 Accumulated other comprehensive income (loss) (380,719) (380,719) Total equity $ 1,365,997 (17,968) $ 1,348,029 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,397,127 1,156 $ 3,398,283 (a) The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. (b) Consolidated Statement of Income Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 688,912 $ 688,912 Cost of revenue 444,324 444,324 Gross profit $ — $ Operating expenses: Selling, general and administrative expenses (d) 171,109 44 171,153 Amortization of acquired intangible assets 9,936 9,936 Other operating (income) expense, net (218) (218) Income from operations $ (44) $ Foreign exchange gains (losses), net 4,798 4,798 Interest income (expense), net (8,100) (8,100) Other income (expense), net 15,550 15,550 Income before equity-method investment activity, net and income tax expense $ 76,009 (44) $ 75,965 Equity-method investment activity, net — — — Income before income tax expense $ 76,009 (44) $ 75,965 Income tax expense 12,075 — 12,075 Net income $ (44) $ Net loss attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ (44) $ (d) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. Consolidated Statement of Cash flow Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (e) $ 64,695 (44) $ 64,651 Net loss attributable to redeemable non-controlling interest (761) (761) Net income (e) $ 63,934 (44) $ 63,890 Adjustments to reconcile net income to net cash used for operating activities: Depreciation and amortization 15,836 15,836 Amortization of debt issuance costs 488 488 Amortization of acquired intangible assets 9,936 9,936 Reserve for doubtful receivables (103) (103) Unrealized gain on revaluation of foreign currency asset/liability (8,525) (8,525) Stock-based compensation expense 7,787 7,787 Deferred income taxes (4,625) (4,625) Other net (28) (28) Change in operating assets and liabilities: Increase in accounts receivable (6,025) (6,025) Increase in prepaid expenses, other current assets, contract cost assets and other assets (e, f) (37,008) (3,035) (40,043) Decrease in accounts payable (1,224) (1,224) Decrease in accrued expenses, other current liabilities and other liabilities (f) (77,734) 3,079 (74,655) Decrease in income taxes payable 9,969 9,969 Net cash provided used for operating activities $ — $ Investing activities Purchase of property, plant and equipment (18,706) (18,706) Payment for internally generated intangible assets (4,365) (4,365) Proceeds from sale of property, plant and equipment 144 144 Payment for redeemable non-controlling interest (4,730) (4,730) Net cash used for investing activities $ — $ Financing activities Repayment of capital lease obligations (537) (537) Repayment of long-term debt (10,000) (10,000) Proceeds from short-term borrowings 105,000 105,000 Proceeds from issuance of common shares under stock-based compensation plans 4,202 4,202 Payment for net settlement of stock-based awards (13,284) (13,284) Payment of earn-out/deferred consideration (1,476) (1,476) Dividend paid (14,408) (14,408) Payment for stock purchased and retired (95,984) (95,984) Payment for expenses related to stock purchase (60) (60) Net cash used for financing activities $ — $ Effect of exchange rate changes 1,284 1,284 Net increase (decrease) in cash and cash equivalents (81,526) (81,526) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ — $ (e) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. | (c) Revenue recognition The Company derives its revenue primarily from business process outsourcing and information technology services, which are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been rendered and collectability is reasonably assured. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. Customer contracts can also include incentive payments received for discrete benefits delivered to clients. Revenues relating to such incentive payments are recorded when the contingency is satisfied and the Company concludes the amounts are earned. Revenue from fixed-price contracts for the development of software and related services is recognized in accordance with the percentage-of-completion method. Guidance has been drawn from Financial Accounting Standards Board (“FASB”) guidance on Software—Revenue Recognition to account for revenue from fixed-price arrangements for software development and related services in conformity with FASB guidance on Revenue Recognition—Construction—Type and Production-Type Contracts. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues. The Company enters into multiple-element revenue arrangements in which a client may purchase a combination of its services. Revenue from multiple-element arrangements is recognized, for each element, based on (1) the attainment of the delivery criterion; (2) its fair value, which is determined using the selling price hierarchy of vendor-specific objective evidence (“VSOE”) of fair value, third-party evidence or best estimated selling price, as applicable, and (3) its allocated selling price, which is based on the relative sales price method. |
Accounts receivable | (e) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and clients’ financial condition, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. | 2. Summary of significant accounting policies (Continued) (d) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and clients’ financial conditions, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. |
Cash and cash equivalents | (e) Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances and all highly liquid investments purchased with an original maturity of three months or less. | |
Short- term investments | (f) Short-term investments All liquid investments with an original maturity greater than 90 days but less than one year are considered to be short-term investments. Marketable short-term investments are classified and accounted for as available-for-sale investments. Available-for-sale investments are reported at fair value with changes in unrealized gains and losses recorded as a separate component of other comprehensive income (loss) until realized. Realized gains and losses on investments are determined based on the specific identification method and are included in “Other income (expense), net.” The Company does not hold these investments for speculative or trading purposes. | |
Property, plant and equipment, net | (g) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are charged to earnings as incurred. The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Computer software 4-7 Leasehold improvements Lesser of lease period or 10 Years Vehicles 3-4 The Company capitalizes certain computer software incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs incurred while developing internal-use computer software. 2. Summary of significant accounting policies (Continued) Capitalized software costs are included in property, plant and equipment on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software. Advances paid towards the acquisition of property, plant and equipment outstanding as of each balance sheet date and the cost of property, plant and equipment not put to use before such date are disclosed under “Capital work in progress. | |
Business combinations | (c) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the consolidated statements of income. | (h) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. In business combinations, where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income. |
Goodwill | Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. | Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. |
Other Intangible Assets | Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Other intangible assets 2-9 years Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Other intangible assets 2-9 years Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. | Intangible assets including technology acquired / developed individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Technology-related intangible assets 2-8 years Other intangible assets 3-5 years Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. 2. Summary of significant accounting policies (Continued) The Company also capitalizes certain software and technology development costs incurred in connection with developing or obtaining software or technology for sale/lease to customers when the initial design phase is completed and commercial and technological feasibility has been established. Any development cost incurred before technological feasibility is established is expensed as incurred as research and development costs. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Capitalized software and technology costs include only (i) external direct costs of materials and services utilized in developing or obtaining software and technology and (ii) compensation and related benefits for employees who are directly associated with the project. Costs incurred in connection with developing or obtaining software or technology for sale/lease to customers which are under development and not put to use are disclosed under “intangible under development.” Capitalized software and technology costs are included in intangible assets under technology-related intangible assets on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software and technology. |
Impairment of long-lived assets | (i) Impairment of long-lived assets Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. | |
Foreign currency | (j) Foreign currency The Company’s consolidated financial statements are reported in U.S. dollars, the Company’s functional currency. The functional currency for the Company’s subsidiaries organized in Europe, other than the United Kingdom, the Czech Republic, Luxembourg and one subsidiary in Poland, is the euro, and the functional currencies of the Company’s subsidiaries organized in Brazil, China, Colombia, Guatemala, India, Israel, Japan, Morocco, South Africa, the Philippines, the United Kingdom, Poland, the Czech Republic, Hong Kong, Singapore, Australia, Canada and United Arab Emirates are their respective local currencies. The functional currency of all other Company subsidiaries is the U.S. dollar. The translation of the functional currencies of the Company’s subsidiaries into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. Monetary assets and liabilities of each subsidiary denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of each subsidiary in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. | |
Derivative instruments and hedging activities | 2. Summary of significant accounting policies (Continued) (k) Derivative instruments and hedging activities In the normal course of business, the Company uses derivative financial instruments to manage fluctuations in foreign currency exchange rates and interest rate fluctuation. The Company purchases forward foreign exchange contracts to mitigate the risk of changes in foreign exchange rates on intercompany transactions and forecasted transactions denominated in foreign currencies and interest rate swaps to mitigate interest rate fluctuation risk on its indebtedness. The Company recognizes derivative instruments and hedging activities as either assets or liabilities in its consolidated balance sheets and measures them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Changes in the fair values of derivatives designated as cash flow hedges are deferred and recorded as a component of other comprehensive income (loss) reported under accumulated other comprehensive income (loss) until the hedged transactions occur and are then recognized in the consolidated statements of income along with the underlying hedged item and disclosed as part of “Total net revenues,” “Cost of revenue,” “Selling, general and administrative expenses,” and “Interest expense,” as applicable. Changes in the fair value of derivatives not designated as hedging instruments and the ineffective portion of derivatives designated as cash flow hedges are recognized in the consolidated statements of income and are included in foreign exchange gains (losses), net, and other income (expense), net, respectively. With respect to derivatives designated as hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the inception of the hedge and on a quarterly basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative or portion thereof is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, the Company will prospectively discontinue hedge accounting with respect to that derivative. In all situations in which hedge accounting is discontinued and the derivative is retained, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent change in its fair value in the consolidated statements of income. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately, in foreign exchange gains (losses), net in the consolidated statements of income, the gains and losses attributable to such derivative that were accumulated in other comprehensive income (loss). | |
Income taxes | (l) Income taxes The Company accounts for income taxes using the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases and all operating loss and tax credit carry forwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period that includes the enactment date or the filing or approval date of the tax status change. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. 2. Summary of significant accounting policies (Continued) The Company applies a two-step approach for recognizing and measuring the benefit of tax positions. The first step is to evaluate the tax position for recognition by determining, based on the technical merits, that the position will more likely than not be sustained upon examination. The second step is to measure the tax benefit as the largest amount of the tax benefit that is greater than 50 percent likely of being realized upon settlement. The Company includes interest and penalties related to unrecognized tax benefits within income tax expense. | |
Employee benefit plans | (m) Employee benefit plans Contributions to defined contribution plans are charged to consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on an annual basis or quarterly basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. | |
Stock-based compensation | (n) Stock-based compensation The Company recognizes and measures compensation expense for all stock-based awards based on the grant date fair value. For option awards, grant date fair value is determined under the option-pricing model (Black-Scholes-Merton) and for awards other than option awards, grant date fair value is determined on the basis of the fair market value of a Company common share on the date of grant of such awards. The Company recognizes compensation expense for stock-based awards net of estimated forfeitures. Stock-based compensation recognized in the consolidated statements of income for the years ended December 31, 2015, 2016 and 2017 is based on awards ultimately expected to vest. As a result, the expense has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from such estimates. | |
Accelerated Share Repurchase | (o) Accelerated Share Repurchase The Company entered into an accelerated share repurchase (“ASR”) agreement with a third-party financial institution to repurchase shares of the Company’s common stock. Under the ASR agreement, the Company paid a specified amount to the financial institution and received an initial delivery of shares. Upon an interim delivery and settlement of the ASR agreement, the financial institution delivered additional shares, with the final number of shares delivered determined with reference to the volume-weighted average price of the Company’s common stock over the term of the agreement, less an agreed-upon discount. The transactions are accounted for as equity transactions. All repurchased shares are retired. When the shares are received, there is an immediate reduction in the weighted-average common shares calculation for basic and diluted earnings per share. | |
Government incentives | 2. Summary of significant accounting policies (Continued) (p) Government incentives The Company recognizes incentives in the consolidated statement of income to match them with the expenditures for which they are intended to compensate. Incentives are recognized in the income statement when there is reasonable assurance that the Company will comply with the conditions for their receipt and a reasonable expectation that the funds will be received. In certain circumstances, the receipt of an incentive may not be subject to any condition or requirement to incur further costs, in which case the incentive is recognized in the income statement for the period in which it becomes receivable. In the event that it becomes likely that the Company will be required to repay an incentive that has already been recognized, the Company makes a provision for the estimated liability. | |
Financial instruments and concentration of credit risk | (d) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 11% and 10% of receivables as of December 31, 2017 and March 31, 2018, respectively. GE accounted for 11% and 8% of total revenue for the three months ended March 31, 2017 and 2018, respectively. | (q) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 15% and 11% of the Company’s receivables as of December 31, 2016 and 2017, respectively. GE accounted for 19%, 14% and 10% of the Company’s revenues in the years ended December 31, 2015, 2016 and 2017, respectively. |
Earnings (loss) per share | (r) Earnings (loss) per share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. | |
Commitments and contingencies | (s) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. | |
Recently issued accounting pronouncements | (g) Recently issued and adopted accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for impact on the Company’s consolidated financial statements. The Company has adopted the following recently released accounting standards: The Company adopted Topic 606, Revenue from Contracts with Customers, . In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The new standard provides guidance to “allow a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.” The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and the guidance may be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal income tax rate in the Tax Cuts and Jobs Act is recognized. Early adoption is permitted. On January 1, 2018, the Company elected the early adoption of ASU 2018-02, which was adopted at the beginning of the period and no prior periods have been adjusted. In addition, the Company has adopted the following recently released accounting Effective January 1, 2017, the Company adopted FASB ASU 2016-06, Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence. Effective January 1, 2018, the Company adopted FASB ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The new guidance revises the definition of a business. The definition of a business affects many areas of accounting (e.g., acquisitions, disposals, goodwill impairment, consolidation). Effective January 1, 2018, the Company adopted FASB ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” The new guidance eliminates the exception for deferment of tax recognition until the transferred asset is sold to a third party or otherwise recovered through use for all intra-entity sales of assets other than inventory. Effective January 1, 2018, the Company adopted FASB ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the 2. Summary of significant accounting policies (Continued) ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. Effective January 1, 2017, the Company early adopted FASB ASU 2016-15, "Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments." The new guidance is intended to reduce diversity in how certain transactions are classified in the statement of cash flows. The following recently released accounting standards have not yet been adopted by the Company: In February 2016, the FASB issued ASU No. 2016-02, “Leases.” The core principle of the ASU is that a lessee should recognize the assets and liabilities that arise from its leases other than those that meet the definition of a short-term lease. The ASU requires extensive qualitative and quantitative disclosures, including with respect to significant judgments made by management. Subsequently, the FASB issued ASU No. 2017-13, in September 2017, which amends and clarifies ASU 2016-02. The ASU will be effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company expects to complete its assessment of adopting ASU No. 2016-02 in the third quarter of 2018. The Company continues to evaluate the impact of its pending adoption of ASU 2016-02 on its consolidated results of operations, cash flows, financial position and disclosures, and the Company’s preliminary assessments are subject to change. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging.” The amendment expands an entity’s ability to hedge accounting to non-financial and financial risk components and requires changes in fair value of hedging instruments to be presented in the same income statement line as the hedged item. The ASU also amends the presentation and disclosure requirements for the effect of hedge accounting. The ASU must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date. The ASU is effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures. | (t) Recently issued accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for impact on the company’s consolidated financial statements. The following recently released accounting standard has been adopted by the Company: In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the requirement for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in income tax expense or in additional paid-in capital. In the quarter ended December 31, 2016, the Company elected to early adopt ASU 2016-09 effective January 1, 2016 and applied ASU 2016-09 using a modified retrospective approach. The treatment of forfeitures has not changed as the Company is electing to continue its current process of estimating the number of forfeitures. With the early adoption of ASU 2016-09, the Company has elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. 2. Summary of significant accounting policies (Continued) In addition, the following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures: Effective January 1, 2016, the Company adopted FASB ASU 2015-01 (Topic 225): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the consolidated financial statements. Effective January 1, 2016, the Company adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Effective January 1, 2016, the Company adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. Effective January 1, 2017, the Company adopted FASB ASU 2016-06, Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence. 2. Summary of significant accounting policies (Continued) The following recently released accounting standards have not yet been adopted by the Company: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. Subsequently, the FASB issued ASU No. 2017-13, in September 2017, ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Gross versus Net),” in March 2016, ASU No. 2016-10, “Identifying performance obligations and licensing,” in April 2016, and ASU 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” in December 2016, which amend and clarify ASU 2014-09. These ASUs will be effective for the Company beginning January 1, 2018, including interim periods in the fiscal year 2018, and allow for both retrospective and prospective adoption. The Company has performed an assessment of the impact of the ASU and developed a transition plan, including necessary changes to policies, processes, and internal controls as well as system enhancements to generate the information necessary for the new disclosures. The implementation plan is on schedule for adoption on January 1, 2018 and the Company will apply the cumulative effect method as its transition approach. The Company expects revenue recognition across the portfolio of services to remain largely unchanged, however there will be an impact on the timing of recognition of certain contract costs, which will now be amortized over the contract period rather than expensed as incurred. Based on the analysis completed to date, the Company does not currently expect that the ASU will have a material impact on consolidated revenue in its Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” The core principle of the ASU is that a lessee should recognize the assets and liabilities that arise from its leases other than those that meet the definition of a short-term lease. The ASU requires extensive qualitative and quantitative disclosures, including with respect to significant judgments made by management. Subsequently, the FASB issued ASU No. 2017-13, in September 2017 and ASU No. 2018-01, in January 2018, which amends and clarifies ASU 2016-02. The ASU will be effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company is in the process of determining the method of adoption and assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures. In October 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” The new guidance eliminates the exception for deferment of tax recognition until the transferred asset is sold to a third party or otherwise recovered through use for all intra-entity sales of assets other than inventory. The ASU is effective for the Company beginning January 1, 2018, including interim periods in the fiscal year 2018. Early adoption is permitted. The Company does not expect the adoption of this update to have a material impact on its consolidated results of operations, cash flows, financial position or disclosures. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The new guidance revises the definition of a business. The definition of a business affects many areas of accounting (e.g., acquisitions, disposals, goodwill impairment, consolidation). The ASU is effective for the Company beginning January 1, 2018, including interim periods in the fiscal year 2018. Early adoption is permitted. The Company adopted this ASU on the effective date and will apply the guidance prospectively. The Company does not expect the adoption of this update to have a material impact on its consolidated results of operations, cash flows, financial position or disclosures. 2. Summary of significant accounting policies (Continued) In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The ASU is effective for the Company beginning January 1, 2018, including interim periods in the fiscal year 2018. The Company adopted this ASU on the effective date and does not expect the adoption of this update to have a material impact on its consolidated results of operations, cash flows, financial position or disclosures. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging.” The amendment expands an entity’s ability to hedge accounting to nonfinancial and financial risk components and requires changes in fair value of hedging instruments to be presented in the same income statement line as the hedged item. The ASU also amends the presentation and disclosure requirements for the effect of hedge accounting. The ASU must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date. The ASU is effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures. In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income.” The amendments allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this Update also require certain disclosures about stranded tax effects. The ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act was recognized. The ASU is effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures. There was no adoption of the provision of ASU 2018-02 in the Financial Statements for the year ended December 31, 2017. |
Reclassification | (h) Reclassification Certain reclassifications have been made in the consolidated financial statements of prior periods to conform to the classification used in the current period. The impact of such reclassifications on the consolidated financial statements is not material. | (v) Reclassification Certain reclassifications have been made in the consolidated financial statements of prior periods to conform to the classification used in the current period. The impact of such reclassifications on the consolidated financial statements is not material. |
Changes in Accounting Policies | (f) Changes in accounting policies Except as described below, the Company has applied accounting policies consistently to all periods presented in these consolidated financial statements. The Company adopted Topic 606, Revenue from Contracts with Customers, effective January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied Topic 606 using the modified retrospective method, which involves recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the Company’s opening equity balance as of January 1, 2018. Therefore, comparative information has not been adjusted and continues to be reported under Topic 605. As a result of the Company’s adoption of this new standard, certain sales incentive programs meet the requirements for capitalization. Such costs are amortized over the period of expected benefit rather than expensed as incurred per the Company’s prior practice. The cumulative impact of the adoption of this standard resulted in an increase in retained earnings of $17,924 as of January 1, 2018 with a corresponding impact on contract cost assets of $23,227 and deferred tax liability of $5,303 |
Summary of significant accoun42
Summary of significant accounting policies (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Estimated Economic Useful Lives of Property Plant and Equipment | The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Computer software 4-7 Leasehold improvements Lesser of lease period or 10 Years Vehicles 3-4 | |
Estimated Useful Lives of Intangible Assets Acquired/Developed | Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Other intangible assets 2-9 years | Intangible assets including technology acquired / developed individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Technology-related intangible assets 2-8 years Other intangible assets 3-5 years |
Topic 606 | ||
Summary Impacts of Adopting Topic 606 on Consolidated Financial Statements | Impacts on consolidated financial statements The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for the three months ended March 31, 2018. Consolidated Balance sheet As of March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 424,226 $ 424,226 Accounts receivable, net 703,066 703,066 Prepaid expenses and other current assets (a, c) 199,208 74,092 273,300 Total current assets $ 1,326,500 74,092 $ 1,400,592 Property, plant and equipment, net 205,035 205,035 Deferred tax assets 81,734 81,734 Investment in equity affiliates 919 919 Intangible assets, net 125,781 125,781 Goodwill 1,337,051 1,337,051 Contract cost assets (a, b) 162,435 (162,435) — Other assets (a, c) 157,672 89,499 247,171 Total assets $ 3,397,127 1,156 $ 3,398,283 Liabilities and equity Current liabilities Short-term borrowings $ 275,000 $ 275,000 Current portion of long-term debt 39,237 39,237 Accounts payable 13,811 13,811 Income taxes payable 40,026 40,026 Accrued expenses and other current liabilities (c) 503,116 8,429 511,545 Total current liabilities $ 871,190 8,429.00 $ 879,619 Long-term debt, less current portion 996,999 996,999 Deferred tax liabilities (b) 7,083 (5,303) 1,780 Other liabilities (c) 155,858 15,998 171,856 Total liabilities $ 2,031,130 19,124 $ 2,050,254 Redeemable non-controlling interest - - Shareholders' equity Preferred shares, $0.01 par value, 250,000,000 authorized, none issued Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and 190,613,135 issued and outstanding as of December 31, 2017 and March 31, 2018, respectively 1,903 1,903 Additional paid-in capital 1,422,897 1,422,897 Retained earnings (b) 321,916 (17,968) 303,948 Accumulated other comprehensive income (loss) (380,719) (380,719) Total equity $ 1,365,997 (17,968) $ 1,348,029 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,397,127 1,156 $ 3,398,283 (a) The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. (b) Consolidated Statement of Income Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 688,912 $ 688,912 Cost of revenue 444,324 444,324 Gross profit $ — $ Operating expenses: Selling, general and administrative expenses (d) 171,109 44 171,153 Amortization of acquired intangible assets 9,936 9,936 Other operating (income) expense, net (218) (218) Income from operations $ (44) $ Foreign exchange gains (losses), net 4,798 4,798 Interest income (expense), net (8,100) (8,100) Other income (expense), net 15,550 15,550 Income before equity-method investment activity, net and income tax expense $ 76,009 (44) $ 75,965 Equity-method investment activity, net — — — Income before income tax expense $ 76,009 (44) $ 75,965 Income tax expense 12,075 — 12,075 Net income $ (44) $ Net loss attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ (44) $ (d) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. Consolidated Statement of Cash flow Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (e) $ 64,695 (44) $ 64,651 Net loss attributable to redeemable non-controlling interest (761) (761) Net income (e) $ 63,934 (44) $ 63,890 Adjustments to reconcile net income to net cash used for operating activities: Depreciation and amortization 15,836 15,836 Amortization of debt issuance costs 488 488 Amortization of acquired intangible assets 9,936 9,936 Reserve for doubtful receivables (103) (103) Unrealized gain on revaluation of foreign currency asset/liability (8,525) (8,525) Stock-based compensation expense 7,787 7,787 Deferred income taxes (4,625) (4,625) Other net (28) (28) Change in operating assets and liabilities: Increase in accounts receivable (6,025) (6,025) Increase in prepaid expenses, other current assets, contract cost assets and other assets (e, f) (37,008) (3,035) (40,043) Decrease in accounts payable (1,224) (1,224) Decrease in accrued expenses, other current liabilities and other liabilities (f) (77,734) 3,079 (74,655) Decrease in income taxes payable 9,969 9,969 Net cash provided used for operating activities $ — $ Investing activities Purchase of property, plant and equipment (18,706) (18,706) Payment for internally generated intangible assets (4,365) (4,365) Proceeds from sale of property, plant and equipment 144 144 Payment for redeemable non-controlling interest (4,730) (4,730) Net cash used for investing activities $ — $ Financing activities Repayment of capital lease obligations (537) (537) Repayment of long-term debt (10,000) (10,000) Proceeds from short-term borrowings 105,000 105,000 Proceeds from issuance of common shares under stock-based compensation plans 4,202 4,202 Payment for net settlement of stock-based awards (13,284) (13,284) Payment of earn-out/deferred consideration (1,476) (1,476) Dividend paid (14,408) (14,408) Payment for stock purchased and retired (95,984) (95,984) Payment for expenses related to stock purchase (60) (60) Net cash used for financing activities $ — $ Effect of exchange rate changes 1,284 1,284 Net increase (decrease) in cash and cash equivalents (81,526) (81,526) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ — $ (e) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Business acquisitions (Tables)
Business acquisitions (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Atyati Technologies Private Limited | ||
Summary of Calculation of Gain (Loss) on Sale of Business | 3. Business acquisitions (Continued) The Company recorded a gain of $5,214 in its consolidated statement of income in connection with the sale of Atyati, calculated as follows: Net sale proceeds $ 17,155 Net assets of the business, including intangible assets, allocated goodwill and the translation impact thereof 11,941 Gain on divestiture included in other income (expense), net $ 5,214 | |
Europe | IT Support Business | ||
Summary of Calculation of Gain (Loss) on Sale of Business | The Company recorded a loss of $5,668 in its consolidated statement of income in connection with the sale of the Business, calculated as follows: Net sale proceeds $ — Net assets of the business, including the translation impact thereof 5,569 Selling expenses 99 Loss on divestiture included in other income (expense), net $ 5,668 | The Company recorded a loss of $5,668 in its consolidated statement of income in connection with the sale of the Business, calculated as follows: Net sale proceeds $ — Net assets of the business, including the translation impact thereof 5,569 Selling expenses 99 Loss on divestiture included in other income (expense), net $ 5,668 |
Other Acquisitions | ||
Summary of Acquisition Date, Goodwill Reporting Unit and Tax Deductibility of Goodwill of Each Acquisition | 3. Business acquisitions (Continued) The following table sets forth, with respect to each of the five acquisitions, the acquisition date, goodwill reporting unit and the tax deductibility of the goodwill: Acquisition Acquisition date Goodwill reporting unit Tax deductibility - goodwill U.S. Delivery Center October 16, 2017 India Deductible OnSource July 18, 2017 India Deductible Birlasoft July 18, 2017 IT Services Deductible Fiserv May 11, 2017 India Non-deductible Lease Dimensions February 15, 2017 Americas Non-deductible | The following table sets forth, with respect to each of the five acquisitions, the acquisition date, goodwill reporting unit and the tax deductibility of the goodwill: Acquisition Acquisition date Goodwill reporting unit Tax deductibility of goodwill U.S. Delivery Center October 16, 2017 India Deductible OnSource July 18, 2017 India Deductible Birlasoft July 18, 2017 IT Services Deductible Fiserv May 11, 2017 India Non-deductible Lease Dimensions February 15, 2017 Americas Non-deductible |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | ||
Cash And Cash Equivalents | Cash and cash equivalents as of December 31, 2017 and March 31, 2018 are set out in the table below: As of December 31, As of March 31, 2017 2018 Cash and other bank balances 504,468 424,226 Total $ 504,468 $ 424,226 | As of December 31, 2016 2017 Cash and other bank balances $ 422,623 $ 504,468 Total $ 422,623 $ 504,468 |
Accounts receivable, net of r45
Accounts receivable, net of reserve for doubtful receivables (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Reserve for Doubtful Receivables | The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, 2017 Three months ended March 31, 2018 Opening balance as of January 1 $ 15,519 $ 23,660 Additions due to acquisitions 235 - Additions charged/reversal released to cost and expense 9,819 (103 ) Deductions/effect of exchange rate fluctuations (1,913 ) 1 Closing balance $ 23,660 $ 23,558 | The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, 2015 2016 2017 Opening balance as of January 1 $15,192 $ 11,530 $ 15,519 Additions due to acquisitions — — 235 Additions charged to cost and expense 2449 7,282 9,819 Deductions/effect of exchange rate fluctuations (6,111 ) (3,293 ) (1,913 ) Closing balance $ 11,530 $ 15,519 $ 23,660 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value of Assets and Liabilities Measured on Recurring Basis | The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these financial assets and liabilities were determined using the following inputs as of December 31, 2017 and March 31, 2018: As of December 31, 2017 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a,c) $ 73,098 $ — $ 73,098 $ — Total $ 73,098 $ — $ 73,098 $ — Liabilities Earnout consideration (Note b, d) $ 24,732 $ — $ — $ 24,732 Derivative instruments (Note b,c) $ 18,188 $ — $ 18,188 $ — Total $ 42,920 $ — $ 18,188 $ 24,732 Redeemable non-controlling interest (Note e) $ 4,750 $ — $ — $ 4,750 6. Fair value measurements (Continued) As of March 31, 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a, c) $ 53,587 $ — $ 53,587 $ — Total $ 53,587 $ — $ 53,587 $ — Liabilities Earnout consideration (Note b, d) $ 23,900 — — $ 23,900 Derivative instruments (Note b, c) $ 28,243 $ — $ 28,243 $ — Total $ 52,143 $ — $ 28,243 $ 23,900 (a) (b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. (c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. (d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. (e) The Company’s estimate of the fair value of redeemable non-controlling interest is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation is classified in level 3 of the fair value hierarchy. See Note 3—Business Acquisitions. | The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these financial assets and liabilities were determined using the following inputs as of December 31, 2016 and 2017: As of December 31, 2016 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Notes a, c) $ 55,386 $ — $ 55,386 $ — Total $ 55,386 $ — $ 55,386 $ — Liabilities Earn-out consideration (Notes b, d) $ 22,435 $ — $ — $ 22,435 Derivative instruments (Notes b, c) 17,353 — 17,353 — Total $ 39,788 $ — $ 17,353 $ 22,435 Redeemable non-controlling interest (Note e) $ 4,520 $ — $ — $ 4,520 As of December 31, 2017 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Notes a, c) $ 73,098 $ — $ 73,098 $ — Total $ 73,098 $ — $ 73,098 $ — Liabilities Earn-out consideration (Notes b, d) $ 24,732 $ — $ — $ 24,732 Derivative instruments (Notes b, c) 18,188 — 18,188 — Total $ 42,920 $ — $ 18,188 $ 24,732 Redeemable non-controlling interest (Note e) $ 4,750 $ — $ — $ 4,750 (a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. (b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. (c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. (d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. 6. Fair Value Measurements (continued) (e) The Company’s estimate of the fair value of redeemable non-controlling interest as of December 31, 2017 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions. |
Fair Value of Earn-out Consideration | The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the three months ended March 31, 2017 and 2018: Three months ended March 31, 2017 2018 Opening balance $ 22,435 $ 24,732 Earn-out consideration payable in connection with Acquisitions 2,320 — Payments made on earn-out consideration (1,206 ) (1,476 ) Change in fair value of earn-out consideration (Note a) (3,138 ) 17 Others (Note b) 852 627 Ending balance $ 21,263 $ 23,900 (a) Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income. (b) Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss). | The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the years ended December 31, 2016 and 2017: As of December 31 2016 2017 Opening balance $ 22,820 $ 22,435 Earn-out consideration payable in connection with acquisitions 14,550 10,720 Payments made of earn-out consideration (1,611 ) (7,239 ) Change in fair value (note a) (14,869 ) (3,695 ) Other (note b) 1,545 2,511 Ending balance $ 22,435 $ 24,732 (a) Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income. (b) Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss). |
Derivative financial instrume47
Derivative financial instruments (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure | The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,289,400 $ 1,376,800 $ 54,398 $ 30,002 United States Dollars (sell) Mexican Peso (buy) 9,000 9,000 (441 ) 417 United States Dollars (sell) Philippines Peso (buy) 76,650 66,300 69 (2,858 ) Euro (sell) United States Dollars (buy) 170,542 153,516 (2,069 ) (5,810 ) Pound Sterling (buy) United States Dollars (sell) 24,041 22,150 253 479 Euro (sell) Romanian Leu (buy) 35,826 33,296 (892 ) (448 ) Japanese Yen (sell) Chinese Renminbi (buy) 60,768 54,781 1,918 491 Pound Sterling (sell) United States Dollars (buy) 80,871 67,532 (2,478 ) (5,317 ) Australian Dollars (sell) United States Dollars (buy) 136,092 114,932 (5,180 ) (3,180 ) Interest rate swaps (floating to fixed) 432,117 425,945 9,332 11,568 54,910 25,344 (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. (b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. | The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2016 As of December 31, 2017 As of December 31, 2016 As of December 31, 2017 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,108,400 $ 1,289,400 $ 6,669 $ 54,398 United States Dollars (sell) Mexican Peso (buy) 9,120 9,000 (187 ) (441 ) United States Dollars (sell) Philippines Peso (buy) 70,050 76,650 (1,036 ) 69 Euro (sell) United States Dollars (buy) 138,613 170,542 9,180 (2,069 ) Pound Sterling (buy) United States Dollars (sell) — 24,041 — 253 Euro (sell) Romanian Leu (buy) 29,805 35,826 (152 ) (892 ) Japanese Yen (sell) Chinese Renminbi (buy) 77,267 60,768 (742 ) 1,918 Pound Sterling (sell) United States Dollars (buy) 104,142 80,871 14,228 (2,478 ) Australian Dollars (sell) United States Dollars (buy) 114,412 136,092 2,328 (5,180 ) Interest rate swaps (floating to fixed) 456,810 432,117 7,746 9,332 $ 38,034 $ 54,910 (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or other market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. (b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. |
Fair Values of Derivative Instruments and Location in Financial Statements | 7. Derivative financial instruments (Continued) The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 Assets Prepaid expenses and other current assets $ 43,557 $ 32,750 $ 4,635 $ 973 Other assets $ 24,906 $ 19,864 $ — $ — Liabilities Accrued expenses and other current liabilities $ 10,092 $ 13,326 $ 254 $ 1,986 Other liabilities $ 7,842 $ 12,931 $ — $ — | 7. Derivative financial instruments (Continued) The fair values of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of December 31, 2016 As of December 31, 2017 As of December 31, 2016 As of December 31, 2017 Assets Prepaid expenses and other current assets $ 33,921 $ 43,557 $ 809 $ 4,635 Other assets $ 20,657 $ 24,906 $ — $ — Liabilities Accrued expenses and other current liabilities $ 4,540 $ 10,092 $ 237 $ 254 Other liabilities $ 12,576 $ 7,842 $ — $ — |
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Three months ended March 31, 2017 2018 Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 Adoption of ASU 2018-02 (note 24) — — — — 2,265 2,265 Net gains (losses) reclassified into statement of income on completion of hedged transactions 9,295 (3,432 ) 5,863 8,279 (1,616 ) 6,663 Changes in fair value of effective portion of outstanding derivatives, net 39,508 (14,787 ) 24,721 (15,893 ) 3,625 (12,269 ) Gain (loss) on cash flow hedging derivatives, net 30,213 (11,355 ) 18,858 (24,172 ) 5,240 (18,932 ) Closing balance $ 67,674 $ (25,334 ) $ 42,340 $ 26,357 $ (6,931 ) $ 19,426 | In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Year ended December 31, 2015 2016 2017 Before- Tax amount Tax (Expense) or Benefit Net of tax Amount Before- Tax amount Tax (Expense) or Benefit Net of tax Amount Before- Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ (66,786 ) $ 23,646 $ (43,140 ) $ (30,090 ) $ 9,830 $ (20,260 ) $ 37,461 $ (13,979 ) $ 23,482 Net gains (losses) reclassified into statement of income on completion of hedged transactions (42,106 ) 15,346 (26,760 ) (6,799 ) 409 (6,390 ) 54,494 (17,725 ) 36,769 Changes in fair value of effective portion of outstanding derivatives, net (5,410 ) 1,530 (3,880 ) 60,752 (23,400 ) 37,352 67,562 (18,182 ) 49,380 Gain (loss) on cash flow hedging derivatives, net 36,696 (13,816 ) 22,880 67,551 (23,809 ) 43,742 13,068 (457 ) 12,611 Closing balance $ (30,090 ) $ 9,830 $ (20,260 ) $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 |
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | 7. Derivative financial instruments (Continued) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Amount of Gain (Loss) reclassified from OCI into recognized in OCI on Location of Gain (Loss) Statement of Income Derivatives in Derivatives (Effective Portion) reclassified (Effective Portion) Cash Flow Three months ended from OCI into Three months ended Hedging March 31, Statement of Income March 31, Relationships 2017 2018 (Effective Portion) 2017 2018 Forward foreign exchange contracts $ 39,296 $ (18,679 ) Revenue $ 3,760 $ (1,474 ) Interest rate swaps 212 2,786 Cost of revenue 4,570 7,270 Selling, general and administrative expenses 1,248 1,934 Interest expense (283 ) 549 $ 39,508 $ (15,893 ) $ 9,295 $ 8,279 Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 for the three months ended March 31, 2017 and 2018, respectively. Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Three months ended March 31, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2017 2018 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 8,910 $ (4,288 ) $ 8,910 $ (4,288 ) (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. | 7. Derivative financial instruments (Continued) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Derivatives in Cash Flow Hedging Relationships Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) Location of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) Year ended December 31, Year ended December 31, 2015 2016 2017 2015 2016 2017 Forward foreign exchange contracts $ (5,410 ) $ 54,664 $ 66,037 Revenue $ 13,667 $ 12,859 $ 5,858 Interest rate swaps $ — $ 6,088 $ 1,525 Cost of revenue $ (44,634 ) $ (14,223 ) $ 37,849 Selling, general and administrative expenses $ (11,139 ) $ (3,765 ) $ 10,849 Interest expense $ — $ (1,670 ) $ (62 ) $ (5,410 ) $ 60,752 $ 67,562 $ (42,106 ) $ (6,799 ) $ 54,494 Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 as of December 31, 2015, 2016 and 2017. Non-designated Hedges Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives Amount of Gain (Loss) recognized in Statement of Income on Derivatives Year ended December 31, 2015 2016 2017 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 6,566 $ 2,921 $ 16,696 $ 6,566 $ 2,921 $ 16,696 (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items, such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid expenses and other cu48
Prepaid expenses and other current assets (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: As of December 31, As of March 31, 2017 2018 Advance income and non-income taxes $ 51,832 $ 65,493 Deferred transition costs (Note 19) 62,029 - Contract asset (Note 19) — 15,886 Customer acquisition cost (Note 19) 19,327 — Prepaid expenses 16,944 19,638 Derivative instruments 48,192 33,723 Employee advances 5,014 3,764 Deposits 4,719 7,331 Advances to suppliers 2,705 5,502 Others 25,580 47,871 $ 236,342 $ 199,208 | Prepaid expenses and other current assets consist of the following: As of December 31, 2016 2017 Advance income and non-income taxes $ 50,676 $ 51,832 Deferred transition costs 45,252 62,029 Derivative instruments 34,730 48,192 Prepaid expenses 22,222 16,944 Customer acquisition cost 11,126 19,327 Employee advances 6,880 5,014 Deposits 2,688 4,719 Advances to suppliers 10,059 2,705 Others 5,516 25,580 $ 189,149 $ 236,342 |
Property, plant and equipment49
Property, plant and equipment, net (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Property, plant and equipment, net | The following table provides the gross and net amount of property, plant and equipment: As of December 31, As of March 31, 2017 2018 Property, plant and equipment, gross $ 666,031 $ 673,901 Less: accumulated depreciation and amortization (459,001 ) (468,866 ) Property, plant and equipment, net $ 207,030 $ 205,035 | Property, plant and equipment, net consist of the following: As of December 31, 2016 2017 Land $ 9,635 $ 10,209 Buildings 44,487 46,007 Furniture and fixtures 37,421 43,091 Computer equipment and servers 187,119 210,725 Plant, machinery and equipment 84,677 92,981 Computer software 119,648 137,459 Leasehold improvements 92,313 102,072 Vehicles 6,753 6,418 Capital work in progress 18,501 17,069 Property, plant and equipment, gross $ 600,554 $ 666,031 Less: accumulated depreciation, amortization and impairment (407,336 ) (459,001 ) Property, plant and equipment, net $ 193,218 $ 207,030 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Changes in Goodwill | The following table presents the changes in goodwill for the year ended December 31, 2017 and three months ended March 31, 2018: As of December 31, As of March 31, 2017 2018 Opening balance $ 1,069,408 $ 1,337,122 Goodwill relating to acquisitions consummated during the period 229,745 — Impact of measurement period adjustments (106 ) (83 ) Effect of exchange rate fluctuations 38,075 12 Closing balance $ 1,337,122 $ 1,337,051 | The following table presents the changes in goodwill for the years ended December 31, 2016 and 2017: As of December 31, 2016 2017 Opening balance $ 1,038,346 $ 1,069,408 Goodwill relating to acquisitions consummated during the period 51,535 229,745 Goodwill relating to divestitures during the period (2,226 ) — Impact of measurement period adjustments (59 ) (106 ) Effect of exchange rate fluctuations (18,188 ) 38,075 Closing balance $ 1,069,408 $ 1,337,122 |
Goodwill Allocated to Reporting Units | Goodwill has been allocated to the following reporting units, which represent different business units of the Company, as follows: As of December 31, 2016 2017 India $ 493,084 $ 735,596 China 58,139 60,171 Europe 36,584 41,775 Americas 48,713 57,021 IT services 432,888 442,559 $ 1,069,408 $ 1,337,122 | |
Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination | The Company’s intangible assets are as follows: As of December 31, 2017 As of March 31, 2018 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 369,173 $ 293,029 $ 76,144 $ 367,640 $ 298,048 $ 69,592 Marketing-related intangible assets 52,443 $ 39,212 13,231 52,165 39,538 12,627 Technology-related intangible assets 54,189 28,278 25,911 55,101 32,135 22,966 Other intangible assets 3,081 2,314 $ 767 2,460 1,710 750 Intangible assets under development 15,537 — $ 15,537 19,846 — 19,846 494,423 362,833 $ 131,590 $ 497,212 $ 371,431 $ 125,781 | The Company’s intangible assets acquired either individually or with a group of other assets or in a business combination are as follows: As of December 31, 2016 As of December 31, 2017 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 312,041 $ 260,018 $ 52,023 $ 369,173 $ 293,029 $ 76,144 Marketing-related intangible assets 45,098 30,571 14,527 52,443 39,212 13,231 Technology-related intangible assets 26,116 21,026 5,090 54,189 28,278 25,911 Other intangible assets 2,875 2,466 409 3,081 2,314 767 Intangible assets under development 6,897 — 6,897 15,537 — 15,537 $ 393,027 $ 314,081 $ 78,946 $ 494,423 $ 362,833 $ 131,590 |
Estimated Amortization Schedule of Intangible Assets for Future Periods | 10. Goodwill and intangible assets (Continued) The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: For the year ending December 31: 2018 $ 38,569 2019 27,518 2020 26,831 2021 13,080 2022 and beyond 25,592 $ 131,590 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other assets | Other assets consist of the following: As of December 31, 2016 2017 Customer acquisition cost $ 30,996 $ 37,017 Advance income and non-income taxes 60,203 63,474 Deferred transition costs 74,462 77,255 Deposits 29,853 32,174 Derivative instruments 20,657 24,906 Prepaid expenses 3,179 2,849 Accounts receivable due after one year 3,272 1,624 Others 19,706 22,870 $ 242,328 $ 262,169 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Lease Payments under Operating Lease Arrangements | operating lease agreements that expire at various dates. Future minimum lease payments under these agreements are as follows As of December 31: 2018 $ 59,269 2019 54,844 2020 47,788 2021 43,692 2022 38,275 2023 and beyond 122,150 Total minimum lease payments $ 366,018 |
Accrued expenses and other cu53
Accrued expenses and other current liabilities (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Payables And Accruals [Abstract] | ||
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of December 31, As of March 31, 2017 2018 Accrued expenses $ 204,997 $ 183,777 Accrued employee cost 204,506 123,076 Earn-out consideration 14,928 18,161 Statutory liabilities 36,283 48,371 Retirement benefits 21,074 21,455 Derivative instruments 10,346 15,312 Advance from customers (note 19) 25,476 — Contract liabilities (note 19) — 81,515 Deferred transition revenue (note 19) 52,233 — Other liabilities 13,093 9,953 Capital lease obligations 1,546 1,496 $ 584,482 $ 503,116 | Accrued expenses and other current liabilities consist of the following: As of December 31, 2016 2017 Accrued expenses $ 163,400 $ 204,997 Accrued employee cost 179,360 204,506 Deferred transition revenue 50,552 52,233 Statutory liabilities 36,878 36,283 Retirement benefits 17,616 21,074 Derivative instruments 4,777 10,346 Advance from customers 21,969 25,476 Earn-out consideration 6,885 14,928 Other liabilities 15,461 13,093 Capital lease obligations 1,349 1,546 $ 498,247 $ 584,482 |
Long-term debt (Tables)
Long-term debt (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Maturity Profile of Term Loan, Net of Debt Amortization Expense | The maturity profile of the term loan outstanding as of March 31, 2018, net of debt amortization expense, is as follows: Year ended Amount 2018 29,421 2019 39,272 2020 619,653 Total $ 688,346 | The maturity profile of the term loan, net of debt amortization expense, is as follows: Year ended Amount 2018 $ 39,226 2019 39,272 2020 619,654 Total $ 698,152 |
Other liabilities (Tables)
Other liabilities (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | ||
Other liabilities | Other liabilities consist of the following: As of December 31, As of March 31, 2017 2018 Accrued employee cost $ 14,020 $ 14,877 Earn-out consideration 9,804 5,739 Retirement benefits 40,520 43,235 Derivative instruments 7,842 12,931 Advance from customers (note 19) 790 — Contract liabilities (note 19) — 55,484 Deferred transition revenue (note 19) 70,900 — Others 22,069 21,187 Capital lease obligations 2,664 2,405 $ 168,609 $ 155,858 | Other liabilities consist of the following: As of December 31, 2016 2017 Accrued employee cost $ 3,976 $ 14,020 Deferred transition revenue 72,560 70,900 Retirement benefits 39,020 40,520 Derivative instruments 12,576 7,842 Amount received from GE under indemnification arrangement, pending adjustment 3,159 3,359 Advance from customers 2,371 790 Earn-out consideration 15,550 9,804 Others 11,078 18,710 Capital lease obligations 2,500 2,664 $ 162,790 $ 168,609 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Funded Status of Defined Benefit Plans and Amount Recognized | The following table sets forth the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s financial statements based on actuarial valuations carried out as of December 31, 2016 and 2017. As of December 31, 2016 2017 Change in benefit obligation Projected benefit obligation at the beginning of the year $ 35,617 $ 45,283 Service cost 5,661 7,735 Actuarial loss 6,749 4,493 Interest cost 2,585 3,252 Liabilities assumed on acquisition 693 Benefits paid (4,967 ) (5,367 ) Special termination benefit - 57 Effect of exchange rate changes (1,055 ) 2,641 Projected benefit obligation at the end of the year $ 45,283 $ 58,094 Change in fair value of plan assets Fair value of plan assets at the beginning of the year $ 28,549 $ 30,871 Employer contributions 5,776 15,176 Actual gain on plan assets 1,777 2,746 Assets assumed on acquisition 170 0 Actuarial gain — 11 Benefits paid (4,897 ) (5,301 ) Effect of exchange rate changes (504 ) 2,057 Fair value of plan assets at the end of the year $ 30,871 $ 45,560 | |
Amounts Included in Other Comprehensive Income (Loss) | Amounts included in other comprehensive income (loss) as of December 31, 2016 and 2017 were as follows: As of December 31, 2016 2017 Net actuarial loss (8,979 ) (12,228 ) Deferred tax assets 2,759 2,221 Other comprehensive income, net (6,220 ) (10,007 ) | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in other comprehensive income (loss) during the year ended December 31, 2017 were as follows: 2017 Net actuarial loss $ (4,182 ) Amortization of net actuarial loss 1,177 Deferred income taxes (670 ) One-time cost 211 Effect of exchange rate changes (323 ) Other comprehensive income (loss), net $ (3,787 ) | |
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the three months ended March 31, 2017 and 2018 include the following components: Three months ended March 31, 2017 2018 Service costs $ 1,720 $ 1,995 Interest costs 734 995 Amortization of actuarial loss 205 320 Expected return on plan assets (492 ) (736 ) Net defined benefit plan costs $ 2,167 $ 2,574 | Net defined benefit plan costs for the years ended December 31, 2015, 2016 and 2017 include the following components: Year ended December 31, 2015 2016 2017 Service costs $ 5,578 $ 5,661 $ 7,735 Interest costs 2,629 2,585 3,252 Amortization of actuarial loss 330 (113 ) 1,177 Expected return on plan assets (2,154 ) (2,043 ) (2,412 ) One-time cost — — 209 Special termination benefits — — 426 Net defined benefit plan costs $ 6,383 $ 6,090 $ 10,387 |
Fair Values of Plan Assets | The fair values of the Company’s plan assets as of December 31, 2016 and 2017 by asset category are as follows: Total As of December 31, 2017 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset Category Cash $ 472 $ 472 $ — $ — Fixed income securities (Note a) 42,328 3,419 38,909 — Other securities (Note b) 2,760 2,437 323 — Total $ 45,560 $ 6,328 $ 39,232 $ — Total As of December 31, 2016 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset Category Cash $ 4,809 $ 4,809 $ — $ — Fixed income securities (Note a) 23,659 3,001 20,658 — Other securities (Note b) 2,403 2,191 212 — Total $ 30,871 $ 10,001 $ 20,870 $ — (a) Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. (b) Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. | |
Benefit Plan Payments Reflect Expected Future Service | The expected benefit plan payments set forth below reflect expected future service: Year ending December 31, 2018 $ 8,469 2019 8,823 2020 9,330 2021 9,946 2022 10,118 2023 - 2027 48,107 $ 94,793 | |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the three months ended March 31, 2017 and 2018, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended March 31, 2017 2018 India $ 5,217 $ 5,944 U.S. 4,280 4,599 U.K. 1,720 2,137 China 3,828 4,394 Other regions 1,130 1,160 Total $ 16,175 $ 18,234 | During the years ended December 31, 2015, 2016 and 2017, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Year ended December 31, 2015 2016 2017 India $ 15,915 $ 19,074 $ 22,242 U.S. 8,148 10,379 11,147 U.K. 4,453 6,593 7,823 China 14,511 15,512 15,950 Other regions 4,690 4,684 4,059 Total $ 47,717 $ 56,242 $ 61,221 |
Benefit Obligations Of Gratuity Plan | ||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Gratuity Plan as of December 31, 2016 and 2017 are presented below: As of December 31, 2016 2017 Discount rate 7.10% - 7.5% 7.40% - 7.60% Rate of increase in compensation per annum 5.20%-11.00% 5.20%-11.00% | |
Gratuity Plan Costs | ||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the Gratuity Plan costs for the years ended December 31, 2015, 2016 and 2017 are presented below: Year ended December 31, 2015 2016 2017 Discount rate 8.50% - 8.55% 8.30% - 8.45% 7.10% - 7.5% Rate of increase in compensation per annum 5.20% - 11.00% 5.20% - 11.00% 5.20% - 11.00% Expected long-term rate of return on plan assets per annum 8.50% 7.50% 7.50% | |
Benefit Obligations Of Mexican Plan | ||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2016 and 2017 are presented below: Year ended December 31, 2016 2017 Discount rate 6.80 % 7.60 % Rate of increase in compensation per annum 5.50 % 5.50 % | |
Mexican Plan Costs | ||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the costs of the Mexican Plan for the years ended December 31, 2015, 2016 and 2017 are presented below: Year ended December 31, 2015 2016 2017 Discount rate 6.50 % 6.50 % 6.80 % Rate of increase in compensation per annum 5.50 % 5.50 % 5.50 % Expected long-term rate of return on plan assets per annum 0.00 % 0.00 % 0.00 % | |
Benefit Obligations Of Japan Plan | ||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | 17. Employee benefit plans (Continued) The weighted average assumptions used to determine the benefit obligation of the Japan Plan as of December 31, 2016 and 2017 are presented below: Year ended December 31, 2016 2017 Discount rate 0.08% - 1.30% 0.113%-0.789% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% - 3.55% | |
Japan Plan Costs | ||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the costs of the Japan Plan for the years ended December 31, 2015, 2016 and 2017 are presented below: Year ended December 31, 2015 2016 2017 Discount rate 0.20% - 1.30% 0.24% - 1.30% 0.08% - 1.30% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% - 3.55% 0.00% - 3.55% Expected long-term rate of return on plan assets per annum 2.69% - 3.44% 0.00% - 3.77% 0.00% - 3.09% |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Share-based Payment Award, Stock Options Granted, Valuation Assumptions | The following table shows the significant assumptions used in determining the fair value of options granted in the three months ended March 31, 2017. No options were granted in the three months ended March 31, 2018. Three months ended March 31, 2017 Dividend yield 0.97% Expected life (in months) 84 Risk-free rate of interest 2.25% Volatility 24.28% | The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in 2015, 2016 and 2017: 2015 2016 2017 Dividend yield — — 0.97% Expected life (in months) 84 84 84 Risk-free rate of interest for expected life 1.99% 1.42% - 1.56% 2.25 % Volatility 34.97% 25.60% - 27.22% 24.28% |
Summary of Stock Option Activity | A summary of stock option activity during the three months ended March 31, 2018 is set out below: Three months ended March 31, 2018 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2018 5,134,645 $ 19.52 5.6 $ — Granted — — — — Forfeited — — — — Expired — — — — Exercised (161,837 ) 15.76 — 2,626 Outstanding as of March 31, 2018 4,972,808 $ 19.64 5.4 $ 61,401 Vested as of March 31, 2018 and expected to vest thereafter (Note a) 4,843,888 $ 19.49 5.4 $ 60,526 Vested and exercisable as of March 31, 2018 3,592,809 $ 17.63 4.4 $ 51,599 Weighted average grant date fair value of grants during the period $ — (a) Options expected to vest reflect an estimated forfeiture rate. | A summary of stock option activity during the years ended December 31, 2015, 2016 and 2017 is set out below: Year ended December 31, 2015 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2015 7,371,727 $ 15.44 5.9 $ — Granted 170,000 22.77 — — Forfeited (125,000 ) 19.35 — — Expired (1,277 ) 14.32 — — Exercised (1,428,605 ) 9.49 — 22,122 Outstanding as of December 31, 2015 5,986,845 $ 16.99 5.8 $ 48,661 Vested as of December 31, 2015 and expected to vest thereafter (Note a) 5,754,969 $ 16.76 5.8 $ 47,325 Vested and exercisable as of December 31, 2015 2,183,846 $ 12.67 2.7 $ 26,892 Weighted average grant-date fair value of options granted during the period $ 9.15 18. Stock-based compensation (Continued) Year ended December 31, 2016 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2016 5,986,845 $ 16.99 5.8 $ — Granted 860,000 26.80 — — Forfeited (145,000 ) 17.77 — — Expired — — — — Exercised (994,155 ) 14.98 — 9,301 Outstanding as of December 31, 2016 5,707,690 $ 18.65 5.8 $ 34,641 Vested as of December 31, 2016 and expected to vest thereafter (Note a) 5,457,701 $ 18.42 5.8 $ 34,150 Vested and exercisable as of December 31, 2016 2,746,191 $ 15.62 4.0 $ 23,960 Weighted average grant-date fair value of options granted during the period $ 8.50 Year ended December 31, 2017 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2017 5,707,690 $ 18.65 5.8 $ — Granted 250,000 24.74 — — Forfeited (80,000 ) 20.63 — — Expired — — — — Exercised (743,045 ) 14.50 — 12,636 Outstanding as of December 31, 2017 5,134,645 $ 19.52 5.6 $ 62,743 Vested as of December 31, 2017 and expected to vest thereafter (Note a) 4,988,875 $ 19.36 5.6 $ 61,779 Vested and exercisable as of December 31, 2017 2,203,146 $ 16.17 4.1 $ 34,303 Weighted average grant-date fair value of options granted during the period $ 6.62 (a) Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Units Granted | A summary of RSUs granted during the three months ended March 31, 2018 is set out below: Three months ended March 31, 2018 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2018 1,605,251 $ 26.17 Granted — — Vested (Note a) (58,875 ) 23.99 Forfeited (4,500) 24.59 Outstanding as of March 31, 2018 1,541,876 $ 26.26 Expected to vest (Note b) 1,337,172 (a) 6,000 RSUs that vested during the period were net settled upon vesting by issuing 3,576 shares (net of minimum statutory tax withholding). 52,875 RSUs vested in the year ended December 31, 2017, shares in respect of which will be issuable on December 31, 2018 after withholding shares to the extent of minimum statutory withholding taxes. (b) The number of RSUs expected to vest reflects an estimated forfeiture rate. | A summary of RSUs granted during the years ended December 31, 2015, 2016 and 2017 is set out below: Year ended December 31, 2015 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2015 488,418 $ 15.36 Granted 53,546 20.88 Vested (Note b) (351,338 ) 15.29 Forfeited (33,236 ) 14.00 Outstanding as of December 31, 2015 157,390 $ 17.67 Expected to vest (Note a) 147,226 Year ended December 31, 2016 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2016 157,390 $ 17.67 Granted 95,553 25.49 Vested (Note c) (133,903 ) 20.66 Forfeited (1,135 ) 14.18 Outstanding as of December 31, 2016 117,905 $ 20.65 Expected to vest (Note a) 107,366 Year ended December 31, 2017 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2017 117,905 $ 20.65 Granted 1,533,836 26.36 Vested (Note d) (45,248 ) 18.31 Forfeited (1,242 ) 25.53 Outstanding as of December 31, 2017 1,605,251 $ 26.17 Expected to vest (Note a) 1,371,567 (a) RSUs expected to vest reflect an estimated forfeiture rate. (b) Vested RSUs were net settled by issuing 199,949 shares (net of minimum statutory tax withholding). 53,546 RSUs vested in the year ended December 31, 2015, 53,023 shares in respect of which were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. (c) Vested RSUs were net settled by issuing 29,719 shares (net of minimum statutory tax withholding). 86,517 RSUs vested in the year ended December 31, 2016. 17,802 common shares underlying 34,035 of such RSUs were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. Shares underlying the remaining 52,482 of such RSUs will be issued in 2018 after withholding shares to the extent of minimum statutory withholding taxes. (d) Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). |
Summary of Performance Units Activity | A summary of PU activity during the three months ended March 31, 2018 is set out below: Three months ended March 31, 2018 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2018 2,900,940 $ 24.40 2,900,940 Granted — — — Vested (Note a) (1,087,751) 22.73 (1,087,751) Forfeited (78,304 ) 24.92 (78,304 ) Adjustment upon final determination of level of performance goal achievement (Note b) (4,597 ) 25.22 Adjustment upon final determination of level of performance goal achievement (Note b) (4,597 ) Outstanding as of March 31, 2018 1,730,288 $ 25.43 1,730,288 Expected to vest (Note c) 1,524,101 (a) PUs that vested during the period were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). (b) Represents an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. (c) The number of PUs expected to vest has been adjusted by an estimated forfeiture rate. | A summary of PU activity during the years ended December 31, 2015, 2016 and 2017 is set out below: Year ended December 31, 2015 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2015 1,292,750 $ 16.78 2,648,626 Granted 1,375,650 22.72 2,965,475 Vested (Note b) (855 ) 16.78 (855 ) Forfeited (136,216 ) 17.82 (156,194 ) Adjustment due to achievement of lower-than-target performance (Note c) (32,007 ) 20.45 Adjustment due to achievement of lower-than-maximum performance (Note d) (2,957,730 ) Outstanding as of December 31, 2015 2,499,322 $ 19.95 2,499,322 Expected to vest (Note a) 2,184,906 18. Stock-based compensation (Continued) Year ended December 31, 2016 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2016 2,499,322 $ 19.95 2,499,322 Granted 1,518,374 27.93 3,343,335 Vested — — — Forfeited (252,842 ) 21.88 (325,817 ) Adjustment upon final determination of level of performance goal achievement (Note e) 7,274 22.72 Adjustment upon final determination of level of performance goal achievement (Note e) 7,274 Outstanding as of December 31, 2016 3,772,128 $ 23.04 5,524,114 Expected to vest (Note a) 2,226,489 Year ended December 31, 2017 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2017 3,772,128 $ 23.04 5,524,114 Granted 1,811,292 25.22 3,622,584 Vested (Note f) (1,136,047) 16.78 (1,136,047) Forfeited (Note g) (1,583,913 ) 27.57 (1,627,313 ) Adjustment upon final determination of level of performance goal achievement (Note h) 37,480 25.22 Adjustment upon final determination of level of performance goal achievement (Note i) (3,482,398) Outstanding as of December 31, 2017 2,900,940 $ 24.40 2,900,940 Expected to vest (Note a) 2,657,685 (a) PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. (b) Vested PUs were net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). 18. Stock-based compensation (Continued) (c) Represents a 5.2% to 6.7% reduction, depending on the targets under the PU award granted, in the number of target shares as a result of achievement of lower-than-target performance for the PUs granted in 2015, partially offset by a 0.8% to 6.6% increase in the number of target shares as a result of achievement of higher-than-target performance for the PUs granted in 2014. (d) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2015. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2014 based on the certified level of achievement of the performance goals. (e) Represents an adjustment made in March 2016 to the number of shares underlying the PUs granted in 2015 upon certification of the level of achievement of the performance targets for such awards. (f) Vested PUs were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). (g) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. (h) Represents a 2.7% increase in the number of target shares as a result of achievement of higher-than-target performance for certain PUs granted in 2017, partially offset by a 12.5% reduction as a result of achievement of lower-than-target performance for certain PUs granted in 2017. (i) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2017 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Earnings Per share | Three months ended March 31, 2017 2018 Net income available to Genpact Limited common shareholders $ 53,338 $ 64,695 Weighted average number of common shares used in computing basic earnings per common share 199,069,528 192,816,626 Dilutive effect of stock-based awards 3,586,409 3,471,943 Weighted average number of common shares used in computing dilutive earnings per common share 202,655,937 196,288,569 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.27 $ 0.34 Diluted $ 0.26 $ 0.33 | Year ended December 31, 2015 2016 2017 Net income available to Genpact Limited common shareholders $ 239,817 $ 269,684 $ 263,111 Weighted average number of common shares used in computing basic earnings per common share 216,606,542 206,861,536 193,864,755 Dilutive effect of stock-based awards 2,538,502 3,264,487 3,184,797 Weighted average number of common shares used in computing dilutive earnings per common share 219,145,044 210,126,023 197,049,552 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 1.11 $ 1.30 $ 1.36 Diluted $ 1.09 $ 1.28 $ 1.34 |
Cost of revenue (Tables)
Cost of revenue (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Cost of revenue | Cost of revenue consists of the following: Three months ended March 31, 2017 2018 Personnel expenses $ 269,189 $ 310,132 Operational expenses 102,716 121,357 Depreciation and amortization 11,432 12,835 $ 383,337 $ 444,324 | Cost of revenue consists of the following: Year ended December 31, 2015 2016 2017 Personnel expenses $ 1,013,209 $ 1,061,501 $ 1,155,745 Operational expenses 432,535 446,922 481,012 Depreciation and amortization 47,803 46,284 46,947 $ 1,493,547 $ 1,554,707 $ 1,683,704 |
Selling, general and administ60
Selling, general and administrative expenses (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Selling General And Administrative Expenses [Abstract] | ||
Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: Three months ended March 31, 2017 2018 Personnel expenses $ 122,569 $ 128,068 Operational expenses 35,813 40,389 Depreciation and amortization 2,476 2,652 $ 160,858 $ 171,109 | Selling, general and administrative expenses consist of the following: Year ended December 31, 2015 2016 2017 Personnel expenses $ 430,088 $ 469,956 $ 501,445 Operational expenses 169,042 174,060 178,573 Depreciation and amortization 8,984 9,013 9,829 $ 608,114 $ 653,029 $ 689,847 |
Other operating (income) expe61
Other operating (income) expense, net (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Other Operating (Income) Expense, Net | Three months ended March 31, 2017 2018 Other operating (income) expense $ (4,400 ) $ (235 ) Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) $ (3,138 ) $ 17 Other operating (income) expense, net $ (7,538 ) $ (218 ) | Year ended December 31, 2015 2016 2017 Other operating (income) expense $ (2,515 ) $ (1,266 ) $ (7,277 ) Provision for impairment of intangible assets and property, plant and equipment 10,714 11,195 9,311 Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) (11,521 ) (14,869 ) (3,695 ) Other operating (income) expense, net $ (3,322 ) $ (4,940 ) $ (1,661 ) |
Interest income (expense), net
Interest income (expense), net (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Banking And Thrift Interest [Abstract] | ||
Interest Income (Expense), Net | Three months ended March 31, 2017 2018 Interest income $ 1,131 $ 3,370 Interest expense (6,624 ) (11,470 ) Interest income (expense), net $ (5,493 ) $ (8,100 ) | Interest income (expense), net consists of the following: Year ended December 31, 2015 2016 2017 Interest income $ 8,676 $ 7,247 $ 8,182 Interest expense (29,828 ) (23,431 ) (39,917 ) Loss on extinguishment of debt (10,115 ) - - Interest income (expense), net $ (31,267 ) $ (16,184 ) $ (31,735 ) |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit) | Income tax expense (benefit) for the years ended December 31, 2015, 2016 and 2017 is allocated as follows: Year ended December 31, 2015 2016 2017 Income from continuing operations $ 61,937 $ 62,098 $ 59,742 Other comprehensive Income: Unrealized gains (losses) on cash flow hedges 13,816 23,809 457 Retirement benefits 1,304 (1,885 ) 670 Additional paid in capital: Excess tax benefit on stock-based compensation (6,560 ) — — Retained earnings: Deferred tax assets recognized on early adoption of ASU 2016-09 — (24,912 ) — | |
Components of Income before Income Tax Expense from Continuing Operations | The components of income before income tax expense from continuing operations are as follows: Year ended December 31, 2015 2016 2017 Domestic (U.S.) $ 23,122 $ 44,110 $ 8,440 Foreign (Non-U.S.) 278,632 285,535 312,143 Income before income taxes $ 301,754 $ 329,645 $ 320,583 | |
Income Tax Expense (Benefit) Attributable to Income from Continuing Operations | Income tax expense (benefit) attributable to income from continuing operations consists of: Year ended December 31, 2015 2016 2017 Current taxes: Domestic (U.S. federal taxes) $ 12,142 $ 78 $ 3,380 Domestic (U.S. state taxes) 301 1,069 1,268 Foreign (Non-U.S.) 68,207 30,497 65,485 $ 80,650 $ 31,644 $ 70,133 Deferred taxes: Domestic (U.S. federal taxes) $ (5,396 ) $ 11,379 $ 3,549 Domestic (U.S. state taxes) 344 (459 ) (2,809 ) Foreign (Non-U.S.) (13,661 ) 19,534 (11,131 ) $ (18,713 ) $ 30,454 $ (10,391 ) Total income tax expense (benefit) $ 61,937 $ 62,098 $ 59,742 | |
Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes | Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes, as a result of the following: Year ended December 31, 2015 2016 2017 Income before income tax expense $ 301,754 $ 329,645 $ 320,583 Statutory tax rates 35 % 35 % 35 % Computed expected income tax expense 105,614 115,376 112,204 Increase (decrease) in income taxes resulting from: Foreign tax rate differential (16,550 ) (18,574 ) (25,224 ) Tax benefit from tax holiday (38,039 ) (32,893 ) (35,814 ) Non-deductible expenses 1,884 2,295 1,146 Effect of change in tax rates 1,436 353 2,778 Change in valuation allowance (33 ) (4,830 ) 9,041 Unrecognized tax benefits 6,272 (627 ) 1,611 Other* 1,353 998 (6,000 ) Reported income tax expense (benefit) $ 61,937 $ 62,098 $ 59,742 *During 2017, following the transfer/closure of certain affiliated entities, deferred tax liabilities recorded against the outside basis difference amounting to $9,600 were reversed. It was not more likely than not that the resulting net deferred tax asset would be realized. Therefore, a full valuation allowance was established to offset the reduction in deferred tax liabilities. | |
Components of Deferred Tax Balances | The components of the Company’s deferred tax balances as of December 31, 2016 and 2017 are as follows: As of December 31, 2016 2017 Deferred tax assets Net operating loss carryforwards $ 52,997 $ 55,500 Accrued liabilities and other expenses 19,840 41,177 Provision for doubtful debts 6,419 10,509 Property, plant and equipment 3,445 1,270 Unrealized losses on cash flow hedges, Net 558 275 Share-based compensation 19,054 19,789 Retirement benefits 5,067 5,817 Deferred revenue 44,892 22,948 Tax credit carryforwards 34,509 35,322 Other 8,876 11,571 Gross deferred tax assets $ 195,657 $ 204,178 Less: valuation allowance (14,746 ) (24,549 ) Total deferred tax assets $ 180,911 $ 179,629 Deferred tax liabilities Intangible assets $ 13,519 $ 15,954 Property, plant and equipment 2,745 1,131 Deferred cost 41,950 33,816 Investments in foreign subsidiaries not indefinitely reinvested 29,546 18,949 Unrealized gains on cash flow hedges, net 14,350 14,711 Other 11,073 24,886 Total deferred tax liabilities $ 113,183 $ 109,447 Net deferred tax asset $ 67,728 $ 70,182 As of December 31, Classified as 2016 2017 Deferred tax assets Non-current $ 70,143 $ 76,929 Deferred tax liabilities Non-current 2,415 6,747 $ 67,728 $ 70,182 | |
Change in Total Valuation Allowance for Deferred Tax Assets | The change in the total valuation allowance for deferred tax assets as of December 31, 2015, 2016 and 2017 is as follows: Year ended December 31, 2015 2016 2017 Opening valuation allowance $ 21,094 $ 20,091 $ 14,746 Reduction during the year (3,499 ) (7,299 ) (3,957 ) Addition during the year 2,496 1,954 13,760 Closing valuation allowance $ 20,091 $ 14,746 $ 24,549 | |
Remaining Tax Loss Carry Forwards Expiration | The Company’s remaining tax loss carryforwards expire as set forth in the table below: US – Federal Europe Others Year ending December 31, 2018 $ — $ — $ 20 2019 — — 72 2020 — 1,872 62 2021 — 581 2,084 2022 — 5,253 60 2023 — 8,500 953 2024 — 1,213 7,941 2025 — 28,222 9,647 2026 9,511 2,263 3,072 2027 9,913 — 2,053 2028 — 33 2,451 2034 — — 1,027 $ 19,424 $ 47,937 $ 29,442 | |
Foreign Tax Credit Expiry Period | As of December 31, 2017, the company had a total foreign tax credit carryforward of $33,220, which will expire as set forth in the table below: Year ending December 31, Amount 2023 $ 893 2024 1,202 2025 15,552 2026 8,481 2027 5,362 2028 1,730 $ 33,220 | |
Activities Related to Unrecognized Tax Benefits | The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2018 to March 31, 2018: 2018 Opening balance at January 1 $ 26,060 Increase related to prior year tax positions, including recorded in acquisition accounting 229 Decrease related to prior year tax positions (8 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (384 ) Effect of exchange rate changes (108) Closing balance at March 31 $ 25,789 | 25. Income taxes (Continued) The following table summarizes activities related to our unrecognized tax benefits from January 1 to December 31 for each of 2015, 2016 and 2017: Year Ended December 31, 2015 2016 2017 Opening balance at January 1 $ 22,718 $ 26,357 $ 23,467 Increase related to prior year tax positions, including recorded in acquisition accounting 2,000 370 2,582 Decrease related to prior year tax positions — (1,506 ) (1,398 ) Decrease related to divestiture of business — (345 ) — Decrease related to prior year tax position due to lapse of applicable statute of limitation (820 ) (2,122 ) (1,019 ) Increase related to current year tax positions, including recorded in acquisition accounting 3,544 3,225 1,661 Decrease related to settlements with tax Authorities — (2,000 ) — Effect of exchange rate changes (1,085 ) (512 ) 767 Closing balance at December 31 $ 26,357 $ 23,467 $ 26,060 |
Segment reporting (Tables)
Segment reporting (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | ||
Net Revenues for Service Type | Three months ended March 31, 2017 2018 Business process outsourcing $ 511,283 $ 574,061 Information technology services 111,712 114,851 Total net revenues $ 622,995 $ 688,912 | Net revenues by service type are as follows: Year ended December 31, 2015 2016 2017 Business process outsourcing $ 1,933,095 $ 2,083,450 $ 2,264,335 Information technology services 527,949 487,306 472,594 Total net revenues $ 2,461,044 $ 2,570,756 $ 2,736,929 |
Revenues from Clients Based on Industry Serviced | Three months ended March 31, 2017 2018 Banking, financial services and insurance $ 247,012 $ 275,627 Manufacturing, including pharmaceuticals and medical equipment manufacturing 229,214 247,125 Technology, healthcare and other services 146,769 166,160 Total net revenues $ 622,995 $ 688,912 | Revenues from clients based on the industry serviced are as follows: Year ended December 31, 2015 2016 2017 Banking, financial services and insurance $ 1,030,584 $ 1,055,704 $ 1,105,731 Manufacturing, including pharmaceuticals and medical equipment manufacturing 878,570 958,779 1,002,973 Technology, healthcare and other services 551,890 556,273 628,225 Total net revenues $ 2,461,044 $ 2,570,756 $ 2,736,929 |
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers | Three months ended March 31, 2017 2018 India $ 411,055 $ 389,134 Asia, other than India 66,662 79,461 North and Latin America 85,042 152,280 Europe 60,236 68,037 Total net revenues $ 622,995 $ 688,912 | Net revenues from geographic areas based on the location of the Company’s service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. Year ended December 31, 2015 2016 2017 India $ 1,687,699 $ 1,804,113 $ 1,712,783 Asia, other than India 238,529 249,839 286,338 North and Latin America 304,879 282,434 455,059 Europe 229,937 234,370 282,749 Total net revenues $ 2,461,044 $ 2,570,756 $ 2,736,929 |
Property, Plant and Equipment, Net by Geographic Areas | 26. Segment reporting (Continued) Property, plant and equipment, net by geographic region are as follows: As of December 31, 2016 2017 India $ 116,417 $ 125,490 Asia, other than India 13,549 15,899 North and Latin America 44,633 38,438 Europe 18,619 27,203 Total $ 193,218 $ 207,030 |
Quarterly financial data (una65
Quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Three months ended Year ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 December 31, 2017 Total net revenues $ 622,995 $ 670,697 $ 708,824 $ 734,413 $ 2,736,929 Gross profit $ 239,658 $ 255,404 $ 279,633 $ 278,530 $ 1,053,225 Income from operations $ 79,096 $ 80,031 $ 97,451 $ 72,049 $ 328,627 Income before equity method investment activity, net and income tax expense $ 69,243 $ 84,582 $ 89,742 $ 81,559 $ 325,126 Net Income $ 52,440 $ 69,102 $ 73,161 $ 66,138 $ 260,841 Net (income) loss attributable to redeemable non-controlling interest $ 898 $ (156 ) $ 584 $ 944 $ 2,270 Net income attributable to Genpact Limited common shareholders $ 53,338 $ 68,946 $ 73,745 $ 67,082 $ 263,111 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.27 $ 0.36 $ 0.38 $ 0.35 $ 1.36 Diluted $ 0.26 $ 0.36 $ 0.38 $ 0.34 $ 1.34 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 199,069,528 191,469,593 192,124,366 192,795,534 193,864,755 Diluted 202,655,937 193,732,406 194,947,699 196,862,168 197,049,552 29. Quarterly financial data (unaudited) (Continued) Three months ended Year ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 December 31, 2016 Total net revenues $ 609,703 $ 630,523 $ 648,783 $ 681,747 $ 2,570,756 Gross profit $ 236,855 $ 246,768 $ 256,351 $ 276,075 $ 1,016,049 Income from operations $ 75,622 $ 79,940 $ 87,124 $ 98,092 $ 340,777 Income before equity method investment activity, net and income tax expense $ 72,664 $ 81,818 $ 87,360 $ 95,502 $ 337,343 Net income $ 58,505 $ 64,788 $ 68,188 $ 76,066 $ 267,547 Net (income) loss attributable to redeemable non-controlling interest $ 289 $ 882 $ 734 $ 232 $ 2,137 Net income attributable to Genpact Limited common shareholders $ 58,794 $ 65,670 $ 68,922 $ 76,298 $ 269,684 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.28 $ 0.31 $ 0.33 $ 0.38 $ 1.30 Diluted $ 0.27 $ 0.31 $ 0.33 $ 0.38 $ 1.28 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 210,780,165 210,178,050 206,146,007 200,341,922 206,861,536 Diluted 213,892,964 213,803,134 209,376,683 203,431,310 210,126,023 |
Guarantor financial informati66
Guarantor financial information (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Guarantor Financial Information [Abstract] | ||
Condensed Consolidating Balance Sheet | 29. Guarantor financial information (Continued) Condensed Consolidating Balance Sheet As of March 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 8,562 $ 11,206 $ 404,458 $ — $ 424,226 Accounts receivable intercompany, net 76,871 — — (76,871 ) — Accounts receivable, net — — 703,066 — 703,066 Intercompany loans 219,199 — 1,715,536 (1,934,735 ) — Intercompany other receivable 8,675 79,296 103,293 (191,264 ) — Prepaid expenses and other current assets 355 2,609 196,244 - 199,208 Total current assets $ 313,662 $ 93,111 $ 3,122,597 $ (2,202,870 ) $ 1,326,500 Property, plant and equipment, net 352 — 204,683 — 205,035 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 81,734 — 81,734 Investment in subsidiaries 445,319 2,923,598 559,078 (3,927,995 ) — Investment in equity affiliates — — 919 — 919 Investment in debentures, intercompany 704,549 — — (704,549 ) — Intercompany other receivable — 61,503 — (61,503 ) — Intangible assets, net — — 125,781 — 125,781 Goodwill — — 1,337,051 — 1,337,051 Contract cost assets — — 162,435 — 162,435 Other assets — — 157,672 — 157,672 Total assets $ 1,463,882 $ 3,078,212 $ 6,251,950 $ (7,396,917 ) $ 3,397,127 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 275,000 $ — $ 275,000 Intercompany loans 22,000 1,716,537 196,199 (1,934,736 ) — Current portion of long-term debt — — 39,237 — 39,237 Accounts payable 166 — 13,645 — 13,811 Intercompany accounts payable — — 76,871 (76,871 ) — Income taxes payable (972 ) (377 ) 41,375 - 40,026 Intercompany other payable 31,433 75,492 84,339 (191,264 ) — Accrued expenses and other current liabilities 3,011 2,655 497,450 - 503,116 Total current liabilities $ 55,638 $ 1,794,307 $ 1,224,116 $ (2,202,871 ) $ 871,190 Long-term debt, less current portion 347,890 — 649,109 — 996,999 Deferred tax liabilities — — 7,083 — 7,083 Intercompany other payable — — 61,503 (61,503 ) — Non-current intercompany loans payable 500,000 — 704,549 (1,204,549 ) — Other liabilities 1,276 — 154,582 — 155,858 Total liabilities $ 904,804 $ 1,794,307 $ 2,800,942 $ (3,468,923 ) $ 2,031,130 Redeemable non-controlling interest — — — — — Shareholders' equity Common stock 28 1,903 189,649 (189,677 ) 1,903 Additional paid-in capital 575,863 1,424,048 1,108,053 (1,685,067 ) 1,422,897 Retained earnings 37,439 238,673 2,501,881 (2,456,077 ) 321,916 Accumulated other comprehensive income (loss) (54,252 ) (380,719 ) (348,575 ) 402,827 (380,719 ) Total equity 559,078 1,283,905 3,451,008 (3,927,994 ) 1,365,997 Commitments and contingencies — — — — — Total liabilities, redeemable non-controlling interest and equity $ 1,463,882 $ 3,078,212 $ 6,251,950 $ (7,396,917 ) $ 3,397,127 29. Guarantor financial information (Continued) Condensed Consolidating Balance Sheet As of March 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 5,839 $ 5,494 $ 376,853 $ — $ 388,186 Accounts receivable intercompany, net 47,230 — — (47,230 ) — Accounts receivable, net — — 602,871 — 602,871 Intercompany loans 773,171 — 1,449,535 (2,222,706 ) — Intercompany other receivable 12,208 86,632 66,828 (165,668 ) — Prepaid expenses and other current assets 189 514 226,932 — 227,635 Total current assets $ 838,637 $ 92,640 $ 2,723,019 $ (2,435,604 ) $ 1,218,692 Property, plant and equipment, net 508 — 212,054 — 212,562 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 61,029 — 61,029 Investment in subsidiaries 457,607 2,600,712 1,100,784 (4,159,103 ) — Investment in equity affiliates — — 769 — 769 Investment in debentures, intercompany 707,910 — — (707,910 ) — Intercompany other receivable — 36,030 — (36,030 ) — Intangible assets, net — — 69,070 — 69,070 Goodwill — — 1,097,329 — 1,097,329 Other assets — — 252,279 — 252,279 Total assets $ 2,004,662 $ 2,729,382 $ 6,016,333 $ (7,838,647 ) $ 2,911,730 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 15,000 $ — $ 15,000 Intercompany loans 43,385 1,556,150 623,171 (2,222,706 ) — Current portion of long-term debt — — 39,192 — 39,192 Accounts payable 60 31 8,995 — 9,086 Intercompany accounts payable — — 47,230 (47,230 ) — Income taxes payable (210 ) — 33,301 — 33,091 Intercompany other payable 2,622 71,762 91,284 (165,668 ) — Accrued expenses and other current liabilities 7,356 2,749 416,848 — 426,953 Total current liabilities $ 53,213 $ 1,630,692 $ 1,275,021 $ (2,435,604 ) $ 523,322 Long-term debt, less current portion 347,432 — 688,346 — 1,035,778 Deferred tax liabilities 231 — 1,584 — 1,815 Intercompany other payable — — 36,030 (36,030 ) — Non-current intercompany loans payable 500,000 — 707,910 (1,207,910 ) — Other liabilities 3,002 292 162,267 — 165,561 Total liabilities $ 903,878 $ 1,630,984 $ 2,871,158 $ (3,679,544 ) $ 1,726,476 Redeemable non-controlling interest — — 3,610 — 3,610 Shareholders' equity Common stock 28 1,924 189,649 (189,677 ) 1,924 Additional paid-in capital 1,211,108 1,347,262 1,109,207 (2,320,312 ) 1,347,265 Retained earnings (53,239 ) 136,533 2,201,248 (2,064,766 ) 219,776 Accumulated other comprehensive income (loss) (57,113 ) (387,321 ) (358,539 ) 415,652 (387,321 ) Total equity 1,100,784 1,098,398 3,141,565 (4,159,103 ) 1,181,644 Commitments and contingencies — — — — — Total liabilities, redeemable non-controlling interest and equity $ 2,004,662 $ 2,729,382 $ 6,016,333 $ (7,838,647 ) $ 2,911,730 | 31. Guarantor financial information (continued) Condensed Consolidating Balance Sheet As of December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 4,507 $ 2,136 $ 497,825 — $ 504,468 Accounts receivable intercompany, net 82,935 — — (82,935 ) — Accounts receivable, net — — 693,085 — 693,085 Intercompany loans 194,854 — 1,620,537 (1,815,391 ) — Intercompany other receivable 25,343 82,631 89,189 (197,163 ) — Prepaid expenses and other current assets 311 1,276 234,755 — 236,342 Total current assets $ 307,950 $ 86,043 $ 3,135,391 $ (2,095,489 ) $ 1,433,895 Property, plant and equipment, net 391 — 206,639 — 207,030 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 76,929 — 76,929 Investment in subsidiaries 426,410 2,864,386 529,179 (3,819,975 ) — Investment in equity affiliates — — 886 — 886 Investment in debentures, intercompany 717,909 — — (717,909 ) — Intercompany other receivable — 49,761 — (49,761 ) — Intangible assets, net — — 131,590 — 131,590 Goodwill — — 1,337,122 — 1,337,122 Other assets — — 262,169 — 262,169 Total assets $ 1,452,660 $ 3,000,190 $ 6,179,905 $ (7,183,134 ) $ 3,449,621 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 170,000 $ — $ 170,000 Intercompany loans 38,000 1,597,537 179,854 (1,815,391 ) — Current portion of long-term debt — — 39,226 — 39,226 Accounts payable 103 58 14,889 — 15,050 Intercompany accounts payable — — 82,935 (82,935 ) — Income taxes payable 885 — 29,141 — 30,026 Intercompany other payable 29,526 59,266 108,371 (197,163 ) — Accrued expenses and other current liabilities 5,995 2,390 576,097 — 584,482 Total current liabilities $ 74,509 $ 1,659,251 $ 1,200,513 $ (2,095,489 ) $ 838,784 Long-term debt, less current portion 347,761 — 658,926 — 1,006,687 Deferred tax liabilities — — 6,747 — 6,747 Intercompany other payable — — 49,761 (49,761 ) — Non-current intercompany loans payable 500,000 — 717,909 (1,217,909 ) — Other liabilities 1,211 153 167,245 — 168,609 Total liabilities $ 923,481 $ 1,659,404 $ 2,801,101 $ (3,363,159 ) $ 2,020,827 Redeemable non-controlling interest — — 4,750 — 4,750 Shareholders' equity Common stock 28 1,924 189,649 (189,677 ) 1,924 Additional paid-in capital 575,862 1,421,354 1,107,383 (1,683,231 ) 1,421,368 Retained earnings (12,277 ) 272,738 2,504,580 (2,409,059 ) 355,982 Accumulated other comprehensive income (loss) (34,434 ) (355,230 ) (427,558 ) 461,992 (355,230 ) Total equity 529,179 1,340,786 3,374,054 (3,819,975 ) 1,424,044 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 1,452,660 $ 3,000,190 $ 6,179,905 $ (7,183,134 ) $ 3,449,621 31. Guarantor financial information (continued) Condensed Consolidating Balance Sheet As of December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 11,215 $ 7,849 $ 403,559 $ — $ 422,623 Accounts receivable intercompany, net 55,618 — — (55,618 ) — Accounts receivable, net — — 615,265 — 615,265 Intercompany loans 396,682 — 1,270,150 (1,666,832 ) — Intercompany other receivable 26,985 72,883 57,475 (157,343 ) — Prepaid expenses and other current assets 151 131 188,867 — 189,149 Total current assets $ 490,651 $ 80,863 $ 2,535,316 $ (1,879,793 ) $ 1,227,037 Property, plant and equipment, net 547 — 192,671 — 193,218 Intangible assets, net — — 78,946 — 78,946 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 70,143 — 70,143 Investment in subsidiaries 423,530 2,470,680 1,005,396 (3,899,606 ) — Investment in equity affiliates 4,121 — 679 — 4,800 Investment in debentures, intercompany 675,180 — — (675,180 ) — Intercompany other receivable — 47,954 — (47,954 ) — Goodwill — — 1,069,408 — 1,069,408 Other assets — — 242,328 — 242,328 Total assets $ 1,594,029 $ 2,599,497 $ 5,694,887 $ (7,002,533 ) $ 2,885,880 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 160,000 $ — $ 160,000 Current portion of long-term debt — — 39,181 — 39,181 Intercompany loan 73,000 1,333,650 260,182 (1,666,832 ) — Accounts payable 168 1 9,599 — 9,768 Intercompany accounts payable — — 55,618 (55,618 ) — Income taxes payable 777 — 23,382 — 24,159 Intercompany other payable 2,612 58,440 96,291 (157,343 ) — Accrued expenses and other current liabilities 7,148 3,695 487,404 — 498,247 Total current liabilities $ 83,705 $ 1,395,786 $ 1,131,657 $ (1,879,793 ) $ 731,355 Long-term debt, less current portion — — 698,152 — 698,152 Intercompany other payable — — 47,954 (47,954 ) — Deferred tax liabilities 231 — 2,184 — 2,415 Non-current intercompany loans payable 500,000 — 675,180 (1,175,180 ) — Other liabilities 4,697 307 157,786 — 162,790 Total liabilities $ 588,633 $ 1,396,093 $ 2,712,913 $ (3,102,927 ) $ 1,594,712 Redeemable non-controlling interest — — 4,520 — 4,520 Shareholders’ equity Common stock 28 1,984 189,649 (189,677 ) 1,984 Additional paid-in capital 1,211,108 1,384,468 1,107,348 (2,318,456 ) 1,384,468 Retained earnings (85,093 ) 274,877 2,076,761 (1,908,424 ) 358,121 Accumulated other comprehensive income (loss) (120,647 ) (457,925 ) (396,304 ) 516,951 (457,925 ) Total equity $ 1,005,396 $ 1,203,404 $ 2,977,454 $ (3,899,606 ) $ 1,286,648 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 1,594,029 $ 2,599,497 $ 5,694,887 $ (7,002,533 ) $ 2,885,880 |
Condensed Consolidating Statement of Income (Loss) | 29. Guarantor financial information (Continued) Condensed Consolidating Statement of Income (Loss) Three months ended March 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 11,939 $ — $ 686,449 $ (9,476 ) $ 688,912 Cost of revenue — — 444,324 — 444,324 Gross profit $ 11,939 $ — $ 242,125 $ (9,476 ) $ 244,588 Operating expenses: Selling, general and administrative expenses 1,623 1,492 177,536 (9,542 ) 171,109 Amortization of acquired intangible assets — — 9,936 — 9,936 Other operating (income) expense, net 17 — (235 ) — (218 ) Income (loss) from operations $ 10,299 $ (1,492 ) $ 54,888 $ 66 $ 63,761 Foreign exchange gains (losses), net 953 221 3,624 — 4,798 Interest income (expense), net (3,489 ) — (4,611 ) — (8,100 ) Intercompany interest income (expense), net 20,543 (3,235 ) (17,308 ) — — Other income (expense), net — — 15,550 — 15,550 Income (loss) before equity-method investment activity, net and income tax expense $ 28,306 $ (4,506 ) $ 52,143 $ 66 $ 76,009 Gain (loss) on equity-method investment activity, net 7,443 69,201 34,058 (110,702 ) — Income before income tax expense $ 35,749 $ 64,695 $ 86,201 $ (110,636 ) $ 76,009 Income tax expense 1,691 — 10,384 — 12,075 Net income $ 34,058 $ 64,695 $ 75,817 $ (110,636 ) $ 63,934 Net loss attributable to redeemable non-controlling interest — — (761 ) — (761 ) Net income attributable to Genpact Limited shareholders $ 34,058 $ 64,695 $ 76,578 $ (110,636 ) $ 64,695 29. Guarantor financial information (Continued) Condensed Consolidating Statement of Income (Loss) Three months ended March 31 , 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 7,562 $ — $ 622,995 $ (7,562 ) $ 622,995 Cost of revenue — — 383,337 — 383,337 Gross profit $ 7,562 $ — $ 239,658 $ (7,562 ) $ 239,658 Operating expenses: Selling, general and administrative expenses 1,141 3,789 163,494 (7,566 ) 160,858 Amortization of acquired intangible assets — — 7,242 — 7,242 Other operating (income) expense, net (3,138 ) — (4,400 ) — (7,538 ) Income (loss) from operations $ 9,559 $ (3,789 ) $ 73,322 $ 4 $ 79,096 Foreign exchange gains (losses), net 1,616 (5 ) (6,524 ) — (4,913 ) Interest income (expense), net 17,937 — (23,430 ) — (5,493 ) Intercompany interest income (expense), net 2,246 (2,296 ) 50 — - Other income (expense), net — — 553 — 553 Income (loss) before equity-method investment activity, net and income tax expense $ 31,358 $ (6,090 ) $ 43,971 $ 4 $ 69,243 Gain (loss) on equity-method investment activity, net 1,979 59,428 31,854 (97,819 ) (4,558 ) Income before income tax expense $ 33,337 $ 53,338 $ 75,825 $ (97,815 ) $ 64,685 Income tax expense 1,483 - 10,762 — 12,245 Net income $ 31,854 $ 53,338 $ 65,063 $ (97,815 ) $ 52,440 Net loss attributable to redeemable non-controlling interest — — (898 ) — (898 ) Net income attributable to Genpact Limited shareholders $ 31,854 $ 53,338 $ 65,961 $ (97,815 ) $ 53,338 | 31. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 46,722 $ — $ 2,736,929 $ (46,722 ) $ 2,736,929 Cost of revenue — — 1,683,704 — 1,683,704 Gross profit $ 46,722 $ — $ 1,053,225 $ (46,722 ) $ 1,053,225 Operating expenses: Selling, general and administrative expenses 9,859 21,076 728,531 (69,619 ) 689,847 Amortization of acquired intangible assets — — 36,412 — 36,412 Other operating (income) expense, net (3,412 ) — 1,751 — (1,661 ) Income (loss) from operations $ 40,275 $ (21,076 ) $ 286,531 $ 22,897 $ 328,627 Foreign exchange gains (losses), net 3,312 2 (1,318 ) — 1,996 Interest income (expense), net (11,375 ) — (20,360 ) — (31,735 ) Intercompany interest income (expense), net 47,547 (10,148 ) (37,399 ) — — Other income (expense), net 18,391 — 7,847 — 26,238 Income (loss) before equity-method investment activity, net and income tax expense $ 98,150 $ (31,222 ) $ 235,301 $ 22,897 $ 325,126 Gain (loss) on equity-method investment activity, net (15,058 ) 294,333 75,657 (359,475 ) (4,543 ) Income before income tax expense $ 83,092 $ 263,111 $ 310,958 $ (336,578 ) $ 320,583 Income tax expense 7,435 — 52,307 — 59,742 Net income $ 75,657 $ 263,111 $ 258,651 $ (336,578 ) $ 260,841 Net loss attributable to redeemable non-controlling interest — — (2,270 ) — (2,270 ) Net income attributable to Genpact Limited shareholders $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 31. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 39,518 $ — $ 2,570,756 $ (39,518 ) $ 2,570,756 Cost of revenue — — 1,554,707 — 1,554,707 Gross profit $ 39,518 $ — $ 1,016,049 $ (39,518 ) $ 1,016,049 Operating expenses: Selling, general and administrative expenses 9,499 12,772 672,742 (41,984 ) 653,029 Amortization of acquired intangible assets — — 27,183 — 27,183 Other operating (income) expense, net (4,043 ) (500 ) (397 ) — (4,940 ) Income (loss) from operations $ 34,062 $ (12,272 ) $ 316,521 $ 2,466 $ 340,777 Foreign exchange gains (losses), net (1,633 ) 57 4,206 — 2,630 Interest income (expense), net (1,358 ) — (14,826 ) — (16,184 ) Intercompany interest income (expense), net 81,359 — (81,359 ) — — Other income (expense), net (829 ) (3,390 ) 14,339 — 10,120 Income (loss) before equity-method investment activity, net and income tax expense $ 111,601 $ (15,605 ) $ 238,881 $ 2,466 $ 337,343 Gain (loss) on equity-method investment activity, net 29,969 285,289 133,186 (456,142 ) (7,698 ) Income before income tax expense $ 141,570 $ 269,684 $ 372,067 $ (453,676 ) $ 329,645 Income tax expense 8,384 — 53,714 — 62,098 Net income $ 133,186 $ 269,684 $ 318,353 $ (453,676 ) $ 267,547 Net loss attributable to redeemable non-controlling interest — — (2,137 ) — (2,137 ) Net income attributable to Genpact Limited shareholders $ 133,186 $ 269,684 $ 320,490 $ (453,676 ) $ 269,684 31. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2015 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 34,250 $ — $ 2,461,044 $ (34,250 ) $ 2,461,044 Cost of revenue — — 1,493,547 — 1,493,547 Gross profit $ 34,250 $ — $ 967,497 $ (34,250 ) $ 967,497 Operating expenses: Selling, general and administrative expenses 4,594 21,298 616,472 (34,250 ) 608,114 Amortization of acquired intangible assets — — 28,513 — 28,513 Other operating (income) expense, net 22,149 — (3,203 ) (22,268 ) (3,322 ) Income (loss) from operations $ 7,507 $ (21,298 ) $ 325,715 $ 22,268 $ 334,192 Foreign exchange gains (losses), net (3,574 ) (219 ) 9,062 — 5,269 Interest income (expense), net, intercompany 42,417 2,027 (44,444 ) — — Interest income (expense), net (531 ) — (30,736 ) — (31,267 ) Other income (expense), net — — 4,360 — 4,360 Income (loss) before equity-method investment activity, net and income tax expense $ 45,819 $ (19,490 ) $ 263,957 $ 22,268 $ 312,554 Gain (loss) on equity-method investment activity, net 17,757 237,040 56,416 (322,013 ) (10,800 ) Income before income tax expense $ 63,576 $ 217,550 $ 320,373 $ (299,745 ) $ 301,754 Income tax expense 7,160 — 54,777 — 61,937 Net income $ 56,416 $ 217,550 $ 265,596 $ (299,745 ) $ 239,817 Net loss (income) attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 56,416 $ 217,550 $ 265,596 $ (299,745 ) $ 239,817 |
Condensed Consolidating Statement of Comprehensive Income (Loss) | Condensed Consolidating Statement of Comprehensive Income (Loss) Three months ended March 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 34,058 $ 64,695 $ 76,578 $ (110,636 ) $ 64,695 $ (761 ) Other comprehensive income: — — — — — — Currency translation adjustments (6,353 ) (9,335 ) (9,335 ) 15,688 (9,335 ) (424 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (15,681 ) (18,932 ) (18,932 ) 34,613 (18,932 ) — Retirement benefits, net of taxes 80 513 513 (593 ) 513 — Other comprehensive income (loss) $ (21,954 ) $ (27,754 ) $ (27,754 ) $ 49,708 $ (27,754 ) $ (424 ) Comprehensive income (loss) $ 12,104 $ 36,941 $ 48,824 $ (60,928 ) $ 36,941 $ (1,185 ) Three months ended March 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 31,854 $ 53,338 $ 65,961 $ (97,815 ) $ 53,338 $ (898 ) Other comprehensive income: — — — — — — Currency translation adjustments 43,546 51,627 51,627 (95,173 ) 51,627 (12 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 20,407 18,858 18,858 (39,265 ) 18,858 — Retirement benefits, net of taxes 70 119 119 (189 ) 119 — Other comprehensive income (loss) $ 64,023 $ 70,604 $ 70,604 $ (134,627 ) $ 70,604 $ (12 ) Comprehensive income (loss) $ 95,877 $ 123,942 $ 136,565 $ (232,442 ) $ 123,942 $ (910 ) | 31. Guarantor financial information (continued) Condensed Consolidating Statement of Comprehensive Income (Loss) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 $ (2,270 ) Other comprehensive income: Currency translation adjustments 74,716 93,871 93,871 (168,587 ) 93,871 (341 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 9,788 12,611 12,611 (22,399 ) 12,611 — Retirement benefits, net of taxes 475 (3,787 ) (3,787 ) 3,312 (3,787 ) — Other comprehensive income (loss) $ 84,979 $ 102,695 $ 102,695 $ (187,674 ) $ 102,695 $ (341 ) Comprehensive income (loss) $ 160,636 $ 365,806 $ 363,616 $ (524,252 ) $ 365,806 $ (2,611 ) Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 133,186 $ 269,684 $ 320,490 $ (453,676 ) $ 269,684 $ (2,137 ) Other comprehensive income: Currency translation adjustments (31,679 ) (46,340 ) (46,340 ) 78,019 (46,340 ) 104 Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 42,016 43,742 43,742 (85,758 ) 43,742 — Retirement benefits, net of taxes (717 ) (4,042 ) (4,042 ) 4,759 (4,042 ) — Other comprehensive income (loss) $ 9,620 $ (6,640 ) $ (6,640 ) $ (2,980 ) $ (6,640 ) $ 104 Comprehensive income (loss) $ 142,806 $ 263,044 $ 313,850 $ (456,656 ) $ 263,044 $ (2,033 ) Year ended December 31, 2015 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 56,416 $ 217,550 $ 265,596 $ (299,745 ) $ 239,817 $ — Other comprehensive income: Currency translation adjustments (67,173 ) (64,504 ) (64,504 ) 131,677 (64,504 ) — Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 27,247 22,880 22,880 (50,127 ) 22,880 — Retirement benefits, net of taxes 554 2,823 2,823 (3,377 ) 2,823 — Other comprehensive income (loss) $ (39,372 ) $ (38,801 ) $ (38,801 ) $ 78,173 $ (38,801 ) $ — Comprehensive income (loss) $ 17,044 $ 178,749 $ 226,795 $ (221,572 ) $ 201,016 $ — |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Three months ended March 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ 22,190 $ 9,604 $ (162,656 ) $ 103,540 $ (27,322 ) Investing activities Purchase of property, plant and equipment — — (18,706 ) — (18,706 ) Payment for internally generated intangible assets — — (4,365 ) — (4,365 ) Proceeds from sale of property, plant and equipment — — 144 — 144 Investment in subsidiaries (2,000 ) — 2,066 (66 ) — Payment for business acquisitions, net of cash acquired — — (4,730 ) - (4,730 ) Net cash (used for) provided by investing activities $ (2,000 ) $ — $ (25,591 ) $ (66 ) $ (27,657 ) Financing activities Repayment of capital lease obligations — — (537 ) — (537 ) Proceeds from long-term debt — — — — — Repayment of long-term debt — — (10,000 ) — (10,000 ) Proceeds from short-term borrowings 130 — 105,000 (130 ) 105,000 Proceeds from intercompany loans — 119,000 344 (119,344 ) — Repayment of intercompany loans (16,000 ) — — 16,000 — Proceeds from issuance of common shares under stock-based compensation plans — 4,202 — — 4,202 Payment for net settlement of stock-based awards — (13,284 ) — — (13,284 ) Payment of earn-out/deferred consideration — — (1,476 ) — (1,476 ) Dividend paid — (14,408 ) — — (14,408 ) Payment for stock purchased and retired — (95,984 ) — — (95,984 ) Payment for expenses related to stock purchase — (60 ) — — (60 ) Net cash (used for) provided by financing activities $ (15,870 ) $ (534 ) $ 93,331 $ (103,474 ) $ (26,547 ) Effect of exchange rate changes (265 ) — 1,549 — 1,284 Net increase (decrease) in cash and cash equivalents 4,320 9,070 (94,916 ) — (81,526 ) Cash and cash equivalents at the beginning of the period 4,507 2,136 497,825 — 504,468 Cash and cash equivalents at the end of the period $ 8,562 $ 11,206 $ 404,458 $ — $ 424,226 29. Guarantor financial information (Continued) Condensed Consolidating Statement of Cash Flows Three months ended March 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (314,439 ) $ 9,080 $ (222,607 ) $ 558,994 $ 31,028 Investing activities Purchase of property, plant and equipment — — (17,084 ) — (17,084 ) Payment for internally generated intangible assets — — (2,614 ) — (2,614 ) Proceeds from sale of property, plant and equipment — — 389 — 389 Investment in equity affiliates (9,841 ) — 9,374 — (467 ) Investment in subsidiaries — — 4 (4 ) — Payment for business acquisitions, net of cash acquired — — (9,237 ) — (9,237 ) Net cash (used for) provided by investing activities $ (9,841 ) $ — $ (19,168 ) $ (4 ) $ (29,013 ) Financing activities Repayment of capital lease obligations — — (494 ) — (494 ) Payment of debt issuance costs (1,481 ) — — — (1,481 ) Proceeds from long- term debt 350,000 — — — 350,000 Repayment of long-term debt — — (10,000 ) — (10,000 ) Proceeds from short-term borrowings — — 40,000 — 40,000 Repayment of short-term borrowings — — (185,000 ) — (185,000 ) Proceeds from intercompany loan — 222,500 366,105 (588,605 ) — Repayment of intercompany loans (29,615 ) — — 29,615 — Proceeds from issuance of common shares under stock-based compensation plans — 7,761 — — 7,761 Payment for net settlement of stock-based awards — (9,939 ) — — (9,939 ) Payment of earn-out/deferred consideration — — (1,097 ) — (1,097 ) Dividend paid — (11,957 ) — — (11,957 ) Payment for stock purchased and retired — (219,784 ) — — (219,784 ) Payment for expenses related to stock purchase — (16 ) — — (16 ) Net cash (used for)provided by financing activities $ 318,904 $ (11,435 ) $ 209,514 $ (558,990 ) $ (42,007 ) Effect of exchange rate changes — — 5,555 — 5,555 Net increase (decrease) in cash and cash equivalents (5,376 ) (2,355 ) (32,261 ) — (39,992 ) Cash and cash equivalents at the beginning of the period 11,215 7,849 403,559 — 422,623 Cash and cash equivalents at the end of the period $ 5,839 $ 5,494 $ 376,853 $ — $ 388,186 | 31. Guarantor financial information (continued) Condensed Consolidating Statement of Cash Flows Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (315,877 ) $ (8,345 ) $ 511,847 $ 171,453 $ 359,078 Investing activities Purchase of property, plant and equipment — — (57,231 ) — (57,231 ) Payment for internally generated intangible assets — — (16,441 ) — (16,441 ) Proceeds from sale of property, plant and equipment — — 1,738 — 1,738 Investment in equity affiliates (523 ) — 27 — (496 ) Investment in subsidiaries (3,638 ) — 51,127 (47,489 ) — Payment for business acquisitions, net of cash acquired — — (284,822 ) — (284,822 ) Proceeds from divestiture of business, net of cash divested — — (4,738 ) — (4,738 ) Net cash (used for) provided by investing activities $ (4,161 ) $ — $ (310,340 ) $ (47,489 ) $ (361,990 ) Financing activities Repayment of capital lease obligations — — (2,708 ) — (2,708 ) Payment of debt issuance costs (2,630 ) — — — (2,630 ) Proceeds from long-term debt 350,000 — — — 350,000 Repayment of long-term debt — — (40,000 ) — (40,000 ) Proceeds from short-term borrowings — — 295,000 — 295,000 Repayment of short-term borrowings — — (285,000 ) — (285,000 ) Proceeds from intercompany loans — 263,886 — (263,886 ) — Repayment of intercompany loans (35,000 ) — (80,328 ) 115,328 — Proceeds from issuance of common shares under stock-based compensation plans — 15,528 — — 15,528 Payment for net settlement of stock-based awards — (10,296 ) — — (10,296 ) Payment of earn-out/deferred consideration — — (6,219 ) — (6,219 ) Dividend paid — (46,686 ) — — (46,686 ) Payment for stock purchased and retired — (219,784 ) — — (219,784 ) Payment for expenses related to stock purchase — (16 ) — — (16 ) Change in amounts due from/to consolidated affiliates — — (24,594 ) 24,594 — Excess tax benefit on stock-based compensation — — — — — Net cash (used for) provided by financing activities $ 312,370 $ 2,632 $ (143,849 ) $ (123,964 ) $ 47,189 Effect of exchange rate changes 960 — 36,608 — 37,568 Net increase (decrease) in cash and cash equivalents (7,668 ) (5,713 ) 57,658 — 44,277 Cash and cash equivalents at the beginning of the period 11,215 7,849 403,559 — 422,623 Cash and cash equivalents at the end of the period $ 4,507 $ 2,136 $ 497,825 $ — $ 504,468 31. Guarantor financial information (continued) Condensed Consolidating Statement of Cash Flows Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (42,212 ) $ 25,592 $ (66,519 ) $ 428,911 $ 345,772 Investing activities Purchase of property, plant and equipment (625 ) — (81,301 ) — (81,926 ) Payment for internally generated intangible assets — — (6,846 ) — (6,846 ) Proceeds from sale of property, plant and equipment — — 547 — 547 Investment in equity affiliates (5,884 ) — (3,736 ) — (9,620 ) Investment in subsidiaries (53,619 ) — (8,101 ) 61,720 - Payment for business acquisitions, net of cash acquired — — (45,162 ) — (45,162 ) Proceeds from divestiture of business, net of cash divested — — 17,242 — 17,242 Net cash (used for) provided by investing activities $ (60,128 ) $ — $ (127,357 ) $ 61,720 $ (125,765 ) Financing activities Repayment of capital lease obligations — — (1,793 ) — (1,793 ) Repayment of long-term debt — — (40,000 ) — (40,000 ) Proceeds from short-term borrowings — — 200,000 — 200,000 Repayment of short-term borrowings — — (61,500 ) — (61,500 ) Proceeds from intercompany loans 73,000 303,000 50,445 (426,445 ) — Repayment of intercompany loans — — — — — Proceeds from issuance of common shares under stock-based compensation plans — 18,228 — — 18,228 Proceeds from issuance of common shares 40,000 — — (40,000 ) — Payment for net settlement of stock-based awards — (769 ) — — (769 ) Payment of earn-out/deferred consideration — — (1,485 ) — (1,485 ) Payment for stock purchased and retired — (345,200 ) 24,186 (24,186 ) (345,200 ) Payment for expenses related to stock purchase — (279 ) — — (279 ) Net cash (used for) provided by financing activities $ 113,000 $ (25,020 ) $ 169,853 $ (490,631 ) $ (232,798 ) Effect of exchange rate changes (361 ) — (15,132 ) — (15,493 ) Net increase (decrease) in cash and cash equivalents 10,660 572 (24,023 ) — (12,791 ) Cash and cash equivalents at the beginning of the period 916 7,277 442,714 — 450,907 Cash and cash equivalents at the end of the period $ 11,215 $ 7,849 $ 403,559 $ — $ 422,623 31. Guarantor financial information (continued) Condensed Consolidating Statement of Cash Flows Year ended December 31, 2015 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (9,868 ) $ 183,510 $ 347,114 $ (193,315 ) $ 327,441 Investing activities Purchase of property, plant and equipment — — (62,173 ) — (62,173 ) Proceeds from sale of property, plant and equipment — — 1,486 — 1,486 Investment in equity affiliates (6,084 ) — (12,339 ) — (18,423 ) Investment in subsidiaries (21,670 ) — (687,455 ) 709,125 — Payment for business acquisitions, net of cash acquired — — (21,363 ) — (21,363 ) Payment for investment in debentures, intercompany (736,692 ) — — 736,692 — Net cash (used for) provided by investing activities $ (764,446 ) $ — $ (781,844 ) $ 1,445,817 $ (100,473 ) Financing activities Repayment of capital lease obligations — — (2,035 ) — (2,035 ) Payment of debt issuance and refinancing costs — — (6,584 ) — (6,584 ) Proceeds from long-term debt — — 800,000 — 800,000 Repayment of long-term debt — — (684,875 ) — (684,875 ) Proceeds from short-term borrowings — — 1,451,500 — 1,451,500 Repayment of short-term borrowings — — (1,565,000 ) — (1,565,000 ) Proceeds from intercompany loans — 28,500 - (28,500 ) — Repayment of intercompany loans — — (228,375 ) 228,375 — Proceeds from issuance of common shares under stock-based compensation plans — 16,088 — — 16,088 Proceeds from issuance of common shares 747,656 — (6,556 ) (741,100 ) — Payment for net settlement of stock-based awards — (7,194 ) — — (7,194 ) Payment of earn-out/deferred consideration — — (230 ) — (230 ) Proceeds from issuance of debentures, intercompany — — 736,692 (736,692 ) — Payment for stock purchased and retired — (226,917 ) — — (226,917 ) Payment for expenses related to stock purchase — (197 ) (31,975 ) 31,975 (197 ) Excess tax benefit on stock-based compensation — 6,560 6,560 (6,560 ) 6,560 Net cash (used for) provided by financing activities $ 747,656 $ (183,160 ) $ 469,122 $ (1,252,502 ) $ (218,884 ) Effect of exchange rate changes (159 ) — (18,806 ) — (18,965 ) Net increase (decrease) in cash and cash equivalents (26,658 ) 350 34,392 — 8,084 Cash and cash equivalents at the beginning of the period 27,733 6,927 427,128 — 461,788 Cash and cash equivalents at the end of the period $ 916 $ 7,277 $ 442,714 $ — $ 450,907 |
Net revenues (Tables)
Net revenues (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Revenues [Abstract] | ||
Net Revenues Disaggregated by Customers | In the following tables, revenue is disaggregated by customer classification, service type, major industries serviced and location of service delivery centers. Three months ended March 31, 2017 2018 GE $ 69,254 $ 58,049 Global Clients 553,741 630,863 Total net revenues $ 622,995 $ 688,912 | |
Net Revenues for Service Type | Three months ended March 31, 2017 2018 Business process outsourcing $ 511,283 $ 574,061 Information technology services 111,712 114,851 Total net revenues $ 622,995 $ 688,912 | Net revenues by service type are as follows: Year ended December 31, 2015 2016 2017 Business process outsourcing $ 1,933,095 $ 2,083,450 $ 2,264,335 Information technology services 527,949 487,306 472,594 Total net revenues $ 2,461,044 $ 2,570,756 $ 2,736,929 |
Revenues from Clients Based on Industry Serviced | Three months ended March 31, 2017 2018 Banking, financial services and insurance $ 247,012 $ 275,627 Manufacturing, including pharmaceuticals and medical equipment manufacturing 229,214 247,125 Technology, healthcare and other services 146,769 166,160 Total net revenues $ 622,995 $ 688,912 | Revenues from clients based on the industry serviced are as follows: Year ended December 31, 2015 2016 2017 Banking, financial services and insurance $ 1,030,584 $ 1,055,704 $ 1,105,731 Manufacturing, including pharmaceuticals and medical equipment manufacturing 878,570 958,779 1,002,973 Technology, healthcare and other services 551,890 556,273 628,225 Total net revenues $ 2,461,044 $ 2,570,756 $ 2,736,929 |
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers | Three months ended March 31, 2017 2018 India $ 411,055 $ 389,134 Asia, other than India 66,662 79,461 North and Latin America 85,042 152,280 Europe 60,236 68,037 Total net revenues $ 622,995 $ 688,912 | Net revenues from geographic areas based on the location of the Company’s service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. Year ended December 31, 2015 2016 2017 India $ 1,687,699 $ 1,804,113 $ 1,712,783 Asia, other than India 238,529 249,839 286,338 North and Latin America 304,879 282,434 455,059 Europe 229,937 234,370 282,749 Total net revenues $ 2,461,044 $ 2,570,756 $ 2,736,929 |
Net Revenues of Contract Liabilities | The following table provides details of the Company’s contract liabilities: Description Three months ended March 31, 2018 Advances from customers Deferred transition revenue Opening balance as of January 1, 2018 $ 26,266 $ 101,785 Additions 11,248 11,083 Revenue recognized (2,944) (10,430) Currency translation adjustments — (10) Closing balance as of March 31, 2018 $ 34,570 $ 102,428 | |
Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation | The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of March 31, 2018: Description Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 102,428 $ 47,714 $ 47,818 $ 6,676 $ 220 | |
Net Revenues of Contract Assets | The following table provides details of the Company’s contract assets: Description Three months ended March 31, 2018 Opening balance as of January 1, 2018 $ 43,366 Additions 10,839 Reduction in revenue recognized (5,902) Closing balance as of March 31, 2018 $ 48,303 | |
Net Revenues of Contract Cost Assets | The following table provides details of the Company’s contract cost assets: Description Three months ended March 31, 2018 Sales incentive programs Transition activities Opening balance as of January 1, 2018 $ 23,227 $ 139,284 Closing balance as of March 31, 2018 23,271 139,164 Amortization during three months ended March 31, 2018 3,239 11,579 |
Other Income (expense), net (Ta
Other Income (expense), net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Nonoperating Income Expense [Abstract] | |
Other Income (expense), net | Three months ended March 31, 2017 2018 Government incentives $ — $ 15,500 Other income/(expense) 553 50 Other income (expense), net $ 553 $ 15,550 |
Organization - Additional Infor
Organization - Additional Information (Detail) $ in Thousands | Nov. 20, 2017USD ($)shares | Aug. 18, 2017USD ($)shares | Mar. 31, 2018EmployeeCountry | Dec. 31, 2017EmployeeCountry |
Organization [Line Items] | ||||
Number of employees around the globe, minimum | Employee | 78,000 | 78,000 | ||
Number of countries in which entity operates | Country | 20 | 20 | ||
Underwritten Public Offering | ||||
Organization [Line Items] | ||||
Common shares sold in underwritten public offering, shares | shares | 10,000,000 | 10,000,000 | ||
Common shares sold in underwritten public offering, value | $ | $ 0 | $ 0 |
Summary of Significant Accoun70
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | |||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Cumulative effect of adoption resulted increase in retained earning | $ 321,916 | [1] | $ 219,776 | $ 355,982 | $ 358,121 | |||
Impact on contract cost asset | [1],[2] | 162,435 | ||||||
Impact on deferred tax liabilities | 7,083 | [1] | $ 1,815 | $ 6,747 | $ 2,415 | |||
Adjustments | Topic 606 | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Cumulative effect of adoption resulted increase in retained earning | (17,968) | [1] | $ 17,924 | |||||
Impact on contract cost asset | (162,435) | [1],[2] | 23,227 | |||||
Impact on deferred tax liabilities | (5,303) | [1] | 5,303 | |||||
Contract assets and contract liabilities netted off | $ 3,079 | $ 21,348 | ||||||
General Electric Company | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Percentage of accounts receivables | 10.00% | 11.00% | 15.00% | |||||
Percentage of revenues | 8.00% | 11.00% | 10.00% | 14.00% | 19.00% | |||
Minimum | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Short term investment, maturity period | 90 days | |||||||
Maximum | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Short term investment, maturity period | 1 year | |||||||
[1] | The cumulative impact of the adoption of ASC 606 resulted in an increase of $23,227 in the contract cost asset related to sales incentive programs (excluding the effect of the current period – refer to note d to the table below) as of January 1, 2018 with a corresponding impact of $17,924 on retained earnings (excluding the effect of the current period – refer to note d to the table below) and on deferred tax liability of $5,303. | |||||||
[2] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. |
Estimated Economic Useful Lives
Estimated Economic Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 40 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer Equipment and Servers | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Plant, Machinery and Equipment | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer software | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer software | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 7 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Property, plant and equipment, estimated useful lives description | Lesser of lease period or 10 Years |
Vehicles | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Vehicles | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Estimated Useful Lives of Intan
Estimated Useful Lives of Intangible Assets Acquired/Developed (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Customer-Related Intangible Assets | Minimum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year | 1 year |
Customer-Related Intangible Assets | Maximum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 14 years | 14 years |
Marketing-Related Intangible Assets | Minimum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year | 1 year |
Marketing-Related Intangible Assets | Maximum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 10 years | 10 years |
Technology-related intangible assets | Minimum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 2 years | |
Technology-related intangible assets | Maximum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 8 years | |
Other Intangible Assets | Minimum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 2 years | 3 years |
Other Intangible Assets | Maximum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 9 years | 5 years |
Business Acquisitions - TandemS
Business Acquisitions - TandemSeven, Inc. - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 05, 2017 | Jan. 08, 2016 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Acquisition related cost | $ 164 | ||||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | $ 284,822 | $ 45,162 | $ 21,363 | |||
Goodwill | $ 1,097,329 | $ 1,337,122 | $ 1,069,408 | $ 1,038,346 | $ 1,337,051 | ||
Acquired assets | 412 | ||||||
Liabilities assumed | $ 617 | ||||||
TandemSeven, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Date of acquisition | Sep. 5, 2017 | ||||||
Ownership percentage acquired | 100.00% | ||||||
Business combination estimated purchase consideration | $ 35,720 | ||||||
Payment for business acquisitions, net of cash acquired | 31,866 | ||||||
Cash and cash equivalents | $ 3,854 | ||||||
Maximum measurement period for tax position evaluation | 1 year | ||||||
Acquired intangible assets, weighted average amortization period | 2 years | ||||||
Goodwill | $ 25,298 | ||||||
Acquisition related cost | 932 | ||||||
Acquired assets | 7,388 | ||||||
Liabilities assumed | 1,206 | ||||||
Recognized net deferred tax asset | 260 | ||||||
Purchase consideration | 35,637 | ||||||
Payment for business acquisitions, net of cash acquired | 31,784 | ||||||
Cash and cash equivalents | 3,853 | ||||||
Goodwill | 25,227 | ||||||
Acquired assets | 7,378 | ||||||
Liabilities assumed | 1,207 | ||||||
TandemSeven, Inc. | Customer-Related Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 2,000 | ||||||
TandemSeven, Inc. | Marketing-Related Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 1,700 | ||||||
TandemSeven, Inc. | Technology-related intangible assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 800 |
Business Acquisitions - BrightC
Business Acquisitions - BrightClaim LLC and Associated Companies - Additional Information (Detail) - USD ($) $ in Thousands | May 03, 2017 | Jan. 08, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | $ 284,822 | $ 45,162 | $ 21,363 | |||
Goodwill | $ 1,337,051 | $ 1,097,329 | 1,337,122 | $ 1,069,408 | $ 1,038,346 | ||
Acquisition related cost | $ 164 | ||||||
Acquired assets | 412 | ||||||
Liabilities assumed | $ 617 | ||||||
Bright Claim LLC And Associated Companies | |||||||
Business Acquisition [Line Items] | |||||||
Date of acquisition | May 3, 2017 | ||||||
Ownership percentage acquired | 100.00% | ||||||
Payment for business acquisitions, net of cash acquired | $ 52,395 | ||||||
Cash and cash equivalents | 4,002 | ||||||
Purchase consideration | $ 56,461 | 56,496 | 56,496 | ||||
Business combination change in contingent consideration receivable | $ 35 | $ 35 | |||||
Acquired intangible assets, weighted average amortization period | 4 years | ||||||
Goodwill | $ 42,638 | ||||||
Acquisition related cost | 1,563 | ||||||
Acquired assets | 10,367 | ||||||
Liabilities assumed | 7,415 | ||||||
Recognized net deferred tax asset | 2,728 | ||||||
Bright Claim LLC And Associated Companies | Customer-Related Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 8,000 | ||||||
Bright Claim LLC And Associated Companies | Marketing-Related Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 3,200 | ||||||
Bright Claim LLC And Associated Companies | Technology-related intangible assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 2,200 | ||||||
Bright Claim LLC And Associated Companies | Other Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 200 |
Business Acquisitions - RAGE Fr
Business Acquisitions - RAGE Frameworks, Inc. - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 13, 2017 | Jan. 08, 2016 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | $ 284,822 | $ 45,162 | $ 21,363 | |||
Goodwill | $ 1,097,329 | $ 1,337,122 | $ 1,069,408 | $ 1,038,346 | $ 1,337,051 | ||
Acquisition related cost | $ 164 | ||||||
Acquired assets | 412 | ||||||
Liabilities assumed | $ 617 | ||||||
Rage Frameworks, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Date of acquisition | Apr. 13, 2017 | ||||||
Ownership percentage acquired | 100.00% | ||||||
Business combination estimated purchase consideration | $ 125,089 | ||||||
Payment for business acquisitions, net of cash acquired | 124,149 | ||||||
Cash and cash equivalents | $ 1,605 | ||||||
Acquired intangible assets, weighted average amortization period | 7 years | ||||||
Goodwill | $ 105,114 | ||||||
Acquisition related cost | 881 | ||||||
Acquired assets | 13,836 | ||||||
Liabilities assumed | 9,654 | ||||||
Recognized net deferred tax asset | 1,094 | ||||||
Rage Frameworks, Inc. | Customer-Related Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 1,600 | ||||||
Rage Frameworks, Inc. | Marketing-Related Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 600 | ||||||
Rage Frameworks, Inc. | Technology-related intangible assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 12,400 | ||||||
Rage Frameworks, Inc. | Other Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 100 |
Business Acquisitions - Other A
Business Acquisitions - Other Acquisitions in 2017 - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 08, 2016 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | $ 284,822 | $ 45,162 | $ 21,363 | ||
Goodwill | $ 1,097,329 | 1,337,122 | $ 1,069,408 | $ 1,038,346 | $ 1,337,051 | |
Acquisition related cost | $ 164 | |||||
Acquired assets | 412 | |||||
Liabilities assumed | $ 617 | |||||
Other Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Business combination estimated purchase consideration | 87,586 | |||||
Payment for business acquisitions, net of cash acquired | 76,612 | |||||
Cash and cash equivalents | $ 254 | |||||
Acquired intangible assets, weighted average amortization period | 5 years | |||||
Goodwill | $ 56,521 | |||||
Acquisition related cost | 2,369 | |||||
Acquired assets | 10,387 | |||||
Liabilities assumed | 11,239 | |||||
Recognized net deferred tax asset | 6,570 | |||||
Other Acquisitions | Customer-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 33,494 | |||||
Other Acquisitions | Marketing-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 1,936 | |||||
Other Acquisitions | Technology-related intangible assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 2,956 | |||||
Other Acquisitions | Other Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 100 | |||||
Kraft Foods Group Brands LLC | ||||||
Business Acquisition [Line Items] | ||||||
Contingent earn-out consideration-Low end | 0 | |||||
Contingent earn-out consideration-High end | 10,000 | |||||
LeaseDimensions Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Contingent earn-out consideration-Low end | 0 | |||||
Contingent earn-out consideration-High end | $ 3,000 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Acquisition Date, Goodwill Reporting Unit and Tax Deductibility of Goodwill of Each Acquisition (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Kraft Foods Group Brands LLC | |
Business Acquisition [Line Items] | |
Acquisition date | Oct. 16, 2017 |
Goodwill reporting unit | India |
Tax deductibility of goodwill | Deductible |
Onsource L L C | |
Business Acquisition [Line Items] | |
Acquisition date | Jul. 18, 2017 |
Goodwill reporting unit | India |
Tax deductibility of goodwill | Deductible |
I T Business Of Birlasoft | |
Business Acquisition [Line Items] | |
Acquisition date | Jul. 18, 2017 |
Goodwill reporting unit | IT Services |
Tax deductibility of goodwill | Deductible |
Image Processing Business Of Fiserv Solutions Of Australia Pty Ltd | |
Business Acquisition [Line Items] | |
Acquisition date | May 11, 2017 |
Goodwill reporting unit | India |
Tax deductibility of goodwill | Non-deductible |
LeaseDimensions Inc. | |
Business Acquisition [Line Items] | |
Acquisition date | Feb. 15, 2017 |
Goodwill reporting unit | Americas |
Tax deductibility of goodwill | Non-deductible |
Business Acquisitions - Endeavo
Business Acquisitions - Endeavour Software Technologies Private Limited - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 13, 2016 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2018 | Jan. 08, 2016 |
Business Acquisition [Line Items] | |||||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | $ 284,822 | $ 45,162 | $ 21,363 | |||
Goodwill | $ 1,097,329 | $ 1,337,122 | $ 1,069,408 | $ 1,038,346 | $ 1,337,051 | ||
Acquired assets | $ 412 | ||||||
Liabilities assumed | $ 617 | ||||||
Endeavour Software Technologies Private Limited | |||||||
Business Acquisition [Line Items] | |||||||
Date of acquisition | Apr. 13, 2016 | ||||||
Ownership percentage acquired | 100.00% | ||||||
Purchase consideration | $ 14,788 | ||||||
Payment for business acquisitions, net of cash acquired | 10,345 | ||||||
Cash and cash equivalents | 2,373 | ||||||
Contingent earn-out consideration-Low end | 0 | ||||||
Contingent earn-out consideration-High end | $ 3,500 | ||||||
Acquired intangible assets, weighted average amortization period | 3 years | ||||||
Goodwill | $ 8,936 | ||||||
Acquired assets | 5,854 | ||||||
Liabilities assumed | 1,735 | ||||||
Endeavour Software Technologies Private Limited | Customer-Related Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 800 | ||||||
Endeavour Software Technologies Private Limited | Marketing-Related Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 900 | ||||||
Endeavour Software Technologies Private Limited | Other Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 950 |
Business Acquisitions - Strateg
Business Acquisitions - Strategic Sourcing Excellence Limited - Additional Information (Detail) - USD ($) | Mar. 01, 2018 | Jan. 08, 2016 | Mar. 31, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||||
Acquisition related cost | $ 164,000 | |||||||
Acquired assets | 412,000 | |||||||
Liabilities assumed | $ 617,000 | |||||||
Goodwill | $ 1,337,051,000 | $ 1,337,122,000 | $ 1,097,329,000 | $ 1,069,408,000 | $ 1,038,346,000 | |||
Strategic Sourcing Excellence LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Date of acquisition | Jan. 8, 2016 | |||||||
Ownership percentage acquired | 51.00% | |||||||
Preliminary estimated purchase consideration | $ 14,541,000 | |||||||
Cash consideration to acquired certain assets and assumed certain liabilities | 2,550,000 | |||||||
Contingent earn-out consideration-High end | $ 20,000,000 | |||||||
Equity method investment ownership percentage | 49.00% | |||||||
Goodwill | $ 14,445,000 | |||||||
Earn-out consideration to selling equity shareholders | $ 1,780,000 | |||||||
Strategic Sourcing Excellence LLC | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 300,000 | |||||||
Acquired intangible assets, weighted average amortization period | 5 years | |||||||
Put Or Call Option | Strategic Sourcing Excellence LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent earn-out consideration-High end | $ 9,800,000 | |||||||
Call Option | Strategic Sourcing Excellence LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity method investment ownership percentage | 49.00% | |||||||
Put Option | Strategic Sourcing Excellence LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity method investment ownership percentage | 49.00% | |||||||
Selling equity holders put option exercise price | $ 2,950,000 | |||||||
Put Option | Strategic Sourcing Excellence LLC | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Selling equity holders put option exercise price | 2,450,000 | |||||||
Put Option | Strategic Sourcing Excellence LLC | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Selling equity holders put option exercise price | $ 2,950,000 |
Business Acquisitions - PNMSoft
Business Acquisitions - PNMSoft Ltd. - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 04, 2016 | Jan. 08, 2016 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | $ 284,822 | $ 45,162 | $ 21,363 | |||
Goodwill | $ 1,097,329 | $ 1,337,122 | $ 1,069,408 | $ 1,038,346 | $ 1,337,051 | ||
Acquisition related cost | $ 164 | ||||||
Acquired assets | 412 | ||||||
Liabilities assumed | $ 617 | ||||||
PNMSoft Ltd | |||||||
Business Acquisition [Line Items] | |||||||
Date of acquisition | Aug. 4, 2016 | ||||||
Percentage of equity interest acquired | 100.00% | ||||||
Purchase consideration | $ 35,341 | ||||||
Payment for business acquisitions, net of cash acquired | 28,128 | ||||||
Cash and cash equivalents | 2,853 | ||||||
Contingent earn-out consideration-Low end | 0 | ||||||
Contingent earn-out consideration-High end | $ 9,000 | ||||||
Acquired intangible assets, weighted average amortization period | 2 years | ||||||
Goodwill | $ 25,101 | ||||||
Acquisition related cost | 1,273 | ||||||
Acquired assets | 7,110 | ||||||
Liabilities assumed | 4,366 | ||||||
Recognized net deferred tax liability | 944 | ||||||
PNMSoft Ltd | Customer-Related Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 1,700 | ||||||
PNMSoft Ltd | Marketing-Related Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 1,630 | ||||||
PNMSoft Ltd | Other Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 5,110 |
Business Acquisitions - IT Supp
Business Acquisitions - IT Support Business - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 20, 2017 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Gain (loss) on divestiture | $ (5,668) | $ 5,214 | ||
IT Support Business | Europe | ||||
Business Acquisition [Line Items] | ||||
Sale proceeds | $ 0 | $ 0 | ||
Net revenues | 4,546 | |||
Net profit (loss) | (9,706) | |||
Gain (loss) on divestiture | $ (5,668) | $ (5,668) |
Summary of Calculation of Gain
Summary of Calculation of Gain (Loss) on Sale of Business (Detail) - USD ($) $ in Thousands | Nov. 20, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net sale proceeds | $ (4,738) | $ 17,242 | ||
(Loss) Gain on divestiture included in other income (expense), net | (5,668) | $ 5,214 | ||
IT Support Business | Europe | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net assets of the business, including intangible assets, allocated goodwill and the translation impact thereof | $ 5,569 | |||
Selling expenses | 99 | |||
(Loss) Gain on divestiture included in other income (expense), net | $ (5,668) | $ (5,668) | ||
Atyati Technologies Private Limited | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net sale proceeds | $ 17,155 | |||
Net assets of the business, including intangible assets, allocated goodwill and the translation impact thereof | 11,941 | |||
Selling expenses | 427 | |||
(Loss) Gain on divestiture included in other income (expense), net | $ 5,214 |
Business Acquisitions - Atyati
Business Acquisitions - Atyati Technologies Private Limited - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Proceeds from divestiture of business, net of cash divested | $ (4,738) | $ 17,242 | |
Gain (loss) on divestiture | $ (5,668) | 5,214 | |
Atyati Technologies Private Limited | |||
Business Acquisition [Line Items] | |||
Proceeds from divestiture of business, net of cash divested | $ 17,155 | ||
Net of selling expenses | 427 | ||
Cash divested | 854 | ||
Net revenues | 14,958 | ||
Net profit (loss) | $ 64 | ||
Gain (loss) on divestiture | $ 5,214 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash And Cash Equivalents [Abstract] | ||||||
Cash and other bank balances | $ 424,226 | $ 504,468 | $ 422,623 | |||
Total | $ 424,226 | $ 504,468 | $ 388,186 | $ 422,623 | $ 450,907 | $ 461,788 |
Reserve for Doubtful Receivable
Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | ||||
Opening Balance | $ 23,660 | $ 15,519 | $ 11,530 | $ 15,192 |
Additions due to acquisitions | 235 | |||
Additions charged/reversal released to cost and expense | (103) | 9,819 | 7,282 | 2,449 |
Deductions/effect of exchange rate fluctuations | 1 | (1,913) | (3,293) | (6,111) |
Closing balance | $ 23,558 | $ 23,660 | $ 15,519 | $ 11,530 |
Accounts Receivable, Net of R86
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||||||
Gross accounts receivable | $ 726,624,000 | $ 716,745,000 | $ 630,784,000 | |||
Reserve for doubtful receivables | 23,558,000 | 23,660,000 | 15,519,000 | $ 11,530,000 | $ 15,192,000 | |
Net accounts receivable | 703,066,000 | 693,085,000 | $ 602,871,000 | 615,265,000 | ||
Accounts receivable due after one year | 1,407,000 | 1,624,000 | 3,272,000 | |||
Accounts receivable from related parties | 239,000 | 36,000 | 2,490,000 | |||
Reserve for doubtful receivables from related parties | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities Measured on Recurring Basis, Including Derivative Instruments (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative instruments, assets | [1],[2] | $ 53,587 | $ 73,098 | $ 55,386 | |
Total, assets | 53,587 | 73,098 | 55,386 | ||
Earn-out consideration | [3],[4] | 23,900 | 24,732 | 22,435 | |
Derivative instruments, liabilities | [2],[3] | 28,243 | 18,188 | 17,353 | |
Total, liabilities | 52,143 | 42,920 | 39,788 | ||
Redeemable non-controlling interest | [5] | 4,750 | [6] | 4,520 | |
Fair Value, Inputs, Level 2 | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Derivative instruments, assets | [1],[2] | 53,587 | 73,098 | 55,386 | |
Total, assets | 53,587 | 73,098 | 55,386 | ||
Derivative instruments, liabilities | [2],[3] | 28,243 | 18,188 | 17,353 | |
Total, liabilities | 28,243 | 18,188 | 17,353 | ||
Fair Value, Inputs, Level 3 | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Earn-out consideration | [3],[4] | 23,900 | 24,732 | 22,435 | |
Total, liabilities | $ 23,900 | 24,732 | 22,435 | ||
Redeemable non-controlling interest | [5] | $ 4,750 | [6] | $ 4,520 | |
[1] | Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. | ||||
[2] | The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. | ||||
[3] | Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. | ||||
[4] | The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. | ||||
[5] | The Company’s estimate of the fair value of redeemable non-controlling interest as of December 31, 2017 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions. | ||||
[6] | The Company’s estimate of the fair value of redeemable non-controlling interest is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation is classified in level 3 of the fair value hierarchy. See Note 3—Business Acquisitions. |
Fair Value of Earn-out Consider
Fair Value of Earn-out Consideration (Detail) - Fair Value, Inputs, Level 3 - Business Acquisition Contingent Consideration - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | $ 24,732 | $ 22,435 | $ 22,435 | $ 22,820 | |
Earn-out consideration payable in connection with acquisitions | 2,320 | 10,720 | 14,550 | ||
Payments made of earn-out consideration | (1,476) | (1,206) | (7,239) | (1,611) | |
Change in fair value | [1] | 17 | (3,138) | (3,695) | (14,869) |
Other | [2] | 627 | 852 | 2,511 | 1,545 |
Ending balance | $ 23,900 | $ 21,263 | $ 24,732 | $ 22,435 | |
[1] | Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income. | ||||
[2] | Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss). |
Derivative Financial Instrume89
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||||
Amount of gain (loss) recognized in income on ineffective portion of derivatives and amount excluded from effectiveness testing | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Forward Foreign Exchange Contracts | Maximum | |||||
Derivative [Line Items] | |||||
Derivative financial instrument contracts, maturity period | 57 months | 60 months | |||
Interest Rate Swaps | Maximum | |||||
Derivative [Line Items] | |||||
Derivative financial instrument contracts, maturity period | 57 months | 60 months |
Aggregate Notional Principal Am
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Derivative [Line Items] | |||||||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 25,344,000 | $ 54,910,000 | $ 38,034,000 | |||
United States Dollars (sell) Indian Rupees (buy) | |||||||
Derivative [Line Items] | |||||||
Derivative instrument notional principal amount | 1,376,800,000 | [2] | 1,289,400,000 | [2],[3] | 1,108,400,000 | [3] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 30,002,000 | 54,398,000 | 6,669,000 | |||
United States Dollars (sell) Mexican Peso (buy) | |||||||
Derivative [Line Items] | |||||||
Derivative instrument notional principal amount | 9,000,000 | [2] | 9,000,000 | [2],[3] | 9,120,000 | [3] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 417,000 | (441,000) | (187,000) | |||
United States Dollars (sell) Philippines Peso (buy) | |||||||
Derivative [Line Items] | |||||||
Derivative instrument notional principal amount | 66,300,000 | [2] | 76,650,000 | [2],[3] | 70,050,000 | [3] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (2,858,000) | 69,000 | (1,036,000) | |||
Euro (sell) United States Dollars (buy) | |||||||
Derivative [Line Items] | |||||||
Derivative instrument notional principal amount | 153,516,000 | [2] | 170,542,000 | [2],[3] | 138,613,000 | [3] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (5,810,000) | (2,069,000) | 9,180,000 | |||
Pound Sterling (buy) United States Dollars (sell) | |||||||
Derivative [Line Items] | |||||||
Derivative instrument notional principal amount | [2] | 22,150,000 | 24,041,000 | [3] | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 479,000 | 253,000 | ||||
Euro (sell) Romanian Leu (buy) | |||||||
Derivative [Line Items] | |||||||
Derivative instrument notional principal amount | 33,296,000 | [2] | 35,826,000 | [2],[3] | 29,805,000 | [3] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (448,000) | (892,000) | (152,000) | |||
Japanese Yen (sell) Chinese Renminbi (buy) | |||||||
Derivative [Line Items] | |||||||
Derivative instrument notional principal amount | 54,781,000 | [2] | 60,768,000 | [2],[3] | 77,267,000 | [3] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 491,000 | 1,918,000 | (742,000) | |||
Pound Sterling (sell) United States Dollars (buy) | |||||||
Derivative [Line Items] | |||||||
Derivative instrument notional principal amount | 67,532,000 | [2] | 80,871,000 | [2],[3] | 104,142,000 | [3] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (5,317,000) | (2,478,000) | 14,228,000 | |||
Australian Dollars (sell) United States Dollars (buy) | |||||||
Derivative [Line Items] | |||||||
Derivative instrument notional principal amount | 114,932,000 | [2] | 136,092,000 | [2],[3] | 114,412,000 | [3] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (3,180,000) | (5,180,000) | 2,328,000 | |||
Interest Rate Swap Floating To Fixed [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative instrument notional principal amount | 425,945,000 | [2] | 432,117,000 | [2],[3] | 456,810,000 | [3] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 11,568,000 | $ 9,332,000 | $ 7,746,000 | |||
[1] | Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. | ||||||
[2] | Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. | ||||||
[3] | Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or other market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. |
Fair Values of Derivative Instr
Fair Values of Derivative Instruments and Location in Financial Statements (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | |||
Derivatives Fair Value [Line Items] | |||
Fair value of assets | $ 973 | $ 4,635 | $ 809 |
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument | |||
Derivatives Fair Value [Line Items] | |||
Fair value of liabilities | 1,986 | 254 | 237 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | |||
Derivatives Fair Value [Line Items] | |||
Fair value of assets | 32,750 | 43,557 | 33,921 |
Cash Flow Hedges | Other Assets | |||
Derivatives Fair Value [Line Items] | |||
Fair value of assets | 19,864 | 24,906 | 20,657 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | |||
Derivatives Fair Value [Line Items] | |||
Fair value of liabilities | 13,326 | 10,092 | 4,540 |
Cash Flow Hedges | Other Liabilities | |||
Derivatives Fair Value [Line Items] | |||
Fair value of liabilities | $ 12,931 | $ 7,842 | $ 12,576 |
Cash Flow Hedges, Gains (Losses
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss) [Line Items] | |||||
Opening balance, before-tax amount | $ 50,529 | $ 37,461 | $ 37,461 | $ (30,090) | $ (66,786) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount | 8,279 | 9,295 | 54,494 | (6,799) | (42,106) |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | (15,893) | 39,508 | 67,562 | 60,752 | (5,410) |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | (24,172) | 30,213 | 13,068 | 67,551 | 36,696 |
Closing balance, before-tax amount | 26,357 | 67,674 | 50,529 | 37,461 | (30,090) |
Opening balance, tax (expense) or benefit | (14,436) | (13,979) | (13,979) | 9,830 | 23,646 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit | (1,616) | (3,432) | (17,725) | 409 | 15,346 |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | 3,625 | (14,787) | (18,182) | (23,400) | 1,530 |
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit | 5,240 | (11,355) | (457) | (23,809) | (13,816) |
Closing balance, tax (expense) or benefit | (6,931) | (25,334) | (14,436) | (13,979) | 9,830 |
Opening balance, net of tax amount | 36,093 | 23,482 | 23,482 | (20,260) | (43,140) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount | 6,663 | 5,863 | 36,769 | (6,390) | (26,760) |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | (12,269) | 24,721 | 49,380 | 37,352 | (3,880) |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | (18,932) | 18,858 | 12,611 | 43,742 | 22,880 |
Closing balance, net of tax amount | 19,426 | $ 42,340 | $ 36,093 | $ 23,482 | $ (20,260) |
ASU 2018-02 | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of ASU 2018-02, tax (expense) or benefit | 2,265 | ||||
Adoption of ASU 2018-02, net of tax amount | $ 2,265 |
Gains or Losses Recorded as Com
Gains or Losses Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ (15,893) | $ 39,508 | $ 67,562 | $ 60,752 | $ (5,410) | |||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 8,279 | 9,295 | 54,494 | (6,799) | (42,106) | |||||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | (4,288) | 8,910 | 16,696 | 2,921 | 6,566 | |||||
Net revenues | ||||||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | (1,474) | 3,760 | 5,858 | 12,859 | 13,667 | |||||
Cost of Revenue | ||||||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 7,270 | 4,570 | 37,849 | (14,223) | (44,634) | |||||
Selling, General and Administrative Expenses | ||||||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 1,934 | 1,248 | 10,849 | (3,765) | (11,139) | |||||
Interest Expense | ||||||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 549 | (283) | (62) | (1,670) | ||||||
Forward Foreign Exchange Contracts | ||||||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | (18,679) | 39,296 | 66,037 | 54,664 | (5,410) | |||||
Forward Foreign Exchange Contracts | Foreign Exchange (Gains) Losses, Net | ||||||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | (4,288) | [1] | 8,910 | [1] | 16,696 | [2] | 2,921 | [2] | $ 6,566 | [2] |
Interest Rate Swaps | ||||||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ 2,786 | $ 212 | $ 1,525 | $ 6,088 | ||||||
[1] | These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. | |||||||||
[2] | These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items, such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid Expenses and Other Cu94
Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Prepaid Expense And Other Assets Current [Abstract] | |||||
Advance income and non-income taxes | $ 65,493 | $ 51,832 | $ 50,676 | ||
Deferred transition costs | 62,029 | 45,252 | |||
Contract asset | 15,886 | ||||
Derivative instruments | 33,723 | 48,192 | 34,730 | ||
Prepaid expenses | 19,638 | 16,944 | 22,222 | ||
Customer acquisition cost | 19,327 | 11,126 | |||
Employee advances | 3,764 | 5,014 | 6,880 | ||
Deposits | 7,331 | 4,719 | 2,688 | ||
Advances to suppliers | 5,502 | 2,705 | 10,059 | ||
Others | 47,871 | 25,580 | 5,516 | ||
Prepaid expenses and other current assets, net | $ 199,208 | [1],[2] | $ 236,342 | $ 227,635 | $ 189,149 |
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | ||||
[2] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. |
Property, Plant and Equipment95
Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 673,901 | $ 666,031 | $ 600,554 | |
Less: accumulated depreciation, amortization and impairment | (468,866) | (459,001) | (407,336) | |
Property, plant and equipment, net | $ 205,035 | 207,030 | $ 212,562 | 193,218 |
Land | ||||
Property Plant And Equipment [Line Items] | ||||
Property, plant and equipment, gross | 10,209 | 9,635 | ||
Buildings | ||||
Property Plant And Equipment [Line Items] | ||||
Property, plant and equipment, gross | 46,007 | 44,487 | ||
Furniture and Fixtures | ||||
Property Plant And Equipment [Line Items] | ||||
Property, plant and equipment, gross | 43,091 | 37,421 | ||
Computer Equipment and Servers | ||||
Property Plant And Equipment [Line Items] | ||||
Property, plant and equipment, gross | 210,725 | 187,119 | ||
Plant, Machinery and Equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Property, plant and equipment, gross | 92,981 | 84,677 | ||
Computer Software | ||||
Property Plant And Equipment [Line Items] | ||||
Property, plant and equipment, gross | 137,459 | 119,648 | ||
Leasehold Improvements | ||||
Property Plant And Equipment [Line Items] | ||||
Property, plant and equipment, gross | 102,072 | 92,313 | ||
Vehicles | ||||
Property Plant And Equipment [Line Items] | ||||
Property, plant and equipment, gross | 6,418 | 6,753 | ||
Capital Work in Progress | ||||
Property Plant And Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 17,069 | $ 18,501 |
Property, Plant and Equipment96
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | $ 15,836 | $ 14,139 | $ 58,503 | $ 54,553 | $ 54,286 |
Property, plant and equipment held under capital lease arrangements, gross | 3,302 | 3,183 | |||
Tangible assets write-down | 8,000 | ||||
Technology Related Intangible Assets | |||||
Property Plant And Equipment [Line Items] | |||||
Tangible assets write-down | 2,240 | ||||
Computer Software Amortization | |||||
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | 11,400 | 9,471 | 9,114 | ||
Effect of Reclassification of Foreign Exchange (Gains) Losses | |||||
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | (349) | (228) | (1,727) | 744 | 2,501 |
Assets Held Under Capital Leases | |||||
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | 1,682 | 1,564 | 1,594 | ||
Depreciation Expense on Property, Plant And Equipment | |||||
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | 12,275 | 11,230 | 44,909 | $ 45,826 | $ 47,673 |
Computer Software | |||||
Property Plant And Equipment [Line Items] | |||||
Tangible assets write-down | $ 5,760 | ||||
Computer Software Amortization | |||||
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | $ 3,212 | $ 2,679 |
Changes in Goodwill (Detail)
Changes in Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Opening balance | $ 1,337,122 | $ 1,069,408 | $ 1,038,346 |
Goodwill relating to acquisitions consummated during the period | 229,745 | 51,535 | |
Goodwill relating to divestitures during the period | (2,226) | ||
Impact of measurement period adjustments | (83) | (106) | (59) |
Effect of exchange rate fluctuations | 12 | 38,075 | (18,188) |
Closing balance | $ 1,337,051 | $ 1,337,122 | $ 1,069,408 |
Goodwill Allocated to Reporting
Goodwill Allocated to Reporting Units (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | |||||
Goodwill | $ 1,337,051 | $ 1,337,122 | $ 1,097,329 | $ 1,069,408 | $ 1,038,346 |
India | |||||
Goodwill [Line Items] | |||||
Goodwill | 735,596 | 493,084 | |||
China | |||||
Goodwill [Line Items] | |||||
Goodwill | 60,171 | 58,139 | |||
Europe | |||||
Goodwill [Line Items] | |||||
Goodwill | 41,775 | 36,584 | |||
Americas | |||||
Goodwill [Line Items] | |||||
Goodwill | 57,021 | 48,713 | |||
IT Services | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 442,559 | $ 432,888 |
Goodwill and Intangible Asset99
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill deductible for tax purposes | $ 121,774,000 | $ 120,617,000 | $ 39,032,000 | ||
Amortization of acquired intangible assets | 9,936,000 | $ 7,242,000 | 36,412,000 | 27,183,000 | $ 28,513,000 |
Technology-related intangible assets | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Amortization of acquired intangible assets | 467,000 | 0 | $ 0 | ||
Customer-Related Intangible Assets | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible assets write-down | $ 1,311,000 | 871,000 | |||
Intangible Software Asset | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible assets write-down | 10,324,000 | ||||
Technology related internally developed intangibles | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Amortization of acquired intangible assets | $ 400,000 | $ 0 | |||
IT Services | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill impairment | $ 0 |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | $ 497,212 | $ 494,423 | $ 393,027 | |
Accumulated amortization & Impairment | 371,431 | 362,833 | 314,081 | |
Net | 125,781 | 131,590 | $ 69,070 | 78,946 |
Customer-Related Intangible Assets | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 367,640 | 369,173 | 312,041 | |
Accumulated amortization & Impairment | 298,048 | 293,029 | 260,018 | |
Net | 69,592 | 76,144 | 52,023 | |
Marketing-Related Intangible Assets | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 52,165 | 52,443 | 45,098 | |
Accumulated amortization & Impairment | 39,538 | 39,212 | 30,571 | |
Net | 12,627 | 13,231 | 14,527 | |
Technology-related intangible assets | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 55,101 | 54,189 | 26,116 | |
Accumulated amortization & Impairment | 32,135 | 28,278 | 21,026 | |
Net | 22,966 | 25,911 | 5,090 | |
Other Intangible Assets | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 2,460 | 3,081 | 2,875 | |
Accumulated amortization & Impairment | 1,710 | 2,314 | 2,466 | |
Net | 750 | 767 | 409 | |
Intangible Assets Under Development [Member] | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 19,846 | 15,537 | 6,897 | |
Net | $ 19,846 | $ 15,537 | $ 6,897 |
Estimated Amortization Schedule
Estimated Amortization Schedule of Intangible Assets for Future Periods (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
2,018 | $ 38,569 | |||
2,019 | 27,518 | |||
2,020 | 26,831 | |||
2,021 | 13,080 | |||
2022 and beyond | 25,592 | |||
Net | $ 125,781 | $ 131,590 | $ 69,070 | $ 78,946 |
Other Assets (Detail)
Other Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | [1],[2] | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Other Assets Noncurrent Disclosure [Abstract] | |||||
Customer acquisition cost | $ 37,017 | $ 30,996 | |||
Advance income and non-income taxes | 63,474 | 60,203 | |||
Deferred transition costs | 77,255 | 74,462 | |||
Deposits | 32,174 | 29,853 | |||
Derivative instruments | 24,906 | 20,657 | |||
Prepaid expenses | 2,849 | 3,179 | |||
Accounts receivable due after one year | 1,624 | 3,272 | |||
Others | 22,870 | 19,706 | |||
Other assets | $ 157,672 | $ 262,169 | $ 252,279 | $ 242,328 | |
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | ||||
[2] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. |
Future Minimum Lease Payments u
Future Minimum Lease Payments under Operating Lease Arrangements (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 59,269 |
2,019 | 54,844 |
2,020 | 47,788 |
2,021 | 43,692 |
2,022 | 38,275 |
2023 and beyond | 122,150 |
Total minimum lease payments | $ 366,018 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Rent expenses | $ 59,484 | $ 50,827 | $ 50,342 |
Rental expense including effect of reclassification of foreign exchange (gains) losses | $ (1,533) | $ 598 | $ 2,037 |
Accrued Expenses and Other C105
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Accrued Liabilities And Other Liabilities [Abstract] | |||||
Accrued expenses | $ 183,777 | $ 204,997 | $ 163,400 | ||
Accrued employee cost | 123,076 | 204,506 | 179,360 | ||
Deferred transition revenue | 52,233 | 50,552 | |||
Statutory liabilities | 48,371 | 36,283 | 36,878 | ||
Retirement benefits | 21,455 | 21,074 | 17,616 | ||
Derivative instruments | 15,312 | 10,346 | 4,777 | ||
Advance from customers | 25,476 | 21,969 | |||
Contract liabilities | 81,515 | ||||
Earn-out consideration | 18,161 | 14,928 | 6,885 | ||
Other liabilities | 9,953 | 13,093 | 15,461 | ||
Capital lease obligations | 1,496 | 1,546 | 1,349 | ||
Accrued expenses and other current liabilities, net | $ 503,116 | [1] | $ 584,482 | $ 426,953 | $ 498,247 |
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017USD ($)Day | Jun. 30, 2015USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Aug. 30, 2012USD ($) | |
Debt Instrument [Line Items] | ||||||||
Extinguishment of outstanding term loan | $ 663,188,000 | |||||||
Acceleration amortization of debt issuance cost | $ 10,050,000 | |||||||
Margin over LIBOR | 1.50% | 1.50% | 1.50% | 1.50% | ||||
Debt discount and underwriting fee | $ 1,481,000 | $ 2,630,000 | $ 6,584,000 | |||||
New Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin over LIBOR | 1.50% | |||||||
Credit facility, base rate | 0.50% | |||||||
3.70% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt amount outstanding | $ 347,890,000 | 347,761,000 | ||||||
Debt amortization expense | $ 2,110,000 | $ 2,239,000 | ||||||
Principal amount of senior notes issued | $ 350,000,000 | $ 350,000,000 | ||||||
Interest rate on senior notes | 3.70% | 3.70% | ||||||
Net proceeds from issue of senior notes | $ 348,519,000 | |||||||
Debt discount and underwriting fee | 1,481,000 | |||||||
Other debt issuance costs | 1,161,000 | $ 1,161,000 | ||||||
Total debt issuance cost | $ 2,642,000 | $ 2,642,000 | ||||||
Debt instrument, maturity date | Apr. 1, 2022 | Apr. 1, 2022 | ||||||
Debt instrument description | The Company will pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date of April 1, 2022. | The Company will pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date of April 1, 2022. | ||||||
Debt instrument redemption price percentage | 100.00% | |||||||
Debt instrument redemption date | Mar. 1, 2022 | Mar. 1, 2022 | ||||||
Debt repurchase price as percentage of aggregate principal value upon certain change of controls | 101.00% | |||||||
Maximum increase in downgrade of credit rating of notes to adjust interest rate payable | 2.00% | |||||||
Debt instrument, percentage increase in interest payable on notes if exchange offer fails during first 90 days | 0.25% | |||||||
Debt instrument, number of days to provide offer to exchange notes for registered notes | Day | 455 | |||||||
Debt instrument, percentage increase in interest payable on notes if exchange offer fails, after first 90 days | 0.25% | |||||||
Debt instrument, percentage increase in interest payable on notes if exchange offer fails, maximum | 0.50% | |||||||
Term Loan Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt amount outstanding | $ 688,346,000 | $ 698,152,000 | $ 737,333,000 | |||||
Debt amortization expense | 1,654,000 | 1,848,000 | $ 2,667,000 | |||||
Principal amount of term loan | $ 10,000,000 | $ 10,000,000 | ||||||
Credit facility, frequency of payments | Quarterly | Quarterly | ||||||
Maturity date of term loan agreement | Jun. 30, 2020 | Jun. 30, 2020 | ||||||
Term Loan Credit Facility | New Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, maximum borrowing capacity | $ 800,000,000 | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, maximum borrowing capacity | $ 350,000,000 | $ 350,000,000 | $ 250,000,000 | |||||
Acceleration amortization of debt issuance cost | 65,000 | |||||||
Revolving Credit Facility | New Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, maximum borrowing capacity | $ 350,000,000 |
Maturity Profile of Term Loan O
Maturity Profile of Term Loan Outstanding Net of Debt Amortization Expense (Detail) - Term Loan Credit Facility - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
2,018 | $ 39,226 | ||
2,018 | $ 29,421 | ||
2,019 | 39,272 | 39,272 | |
2,020 | 619,653 | 619,654 | |
Total | $ 688,346 | $ 698,152 | $ 737,333 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Aug. 30, 2012 | |
Line Of Credit Facility [Line Items] | ||||||
Fund-based and non-fund-based credit facilities limits available | $ 14,311,000 | $ 15,064,000 | $ 15,382,000 | |||
Utilization of credit facility for non fund-based usage | 7,312,000 | 7,900,000 | 10,980,000 | |||
Credit facility, amount utilized | 276,073,000 | 170,978,000 | 160,978,000 | |||
Short-term borrowings | $ 275,000,000 | $ 170,000,000 | $ 160,000,000 | $ 15,000,000 | ||
Revolving credit facility, expiration month and year | 2020-06 | 2020-06 | ||||
Margin over LIBOR | 1.50% | 1.50% | 1.50% | 1.50% | ||
Percentage of commitment fee | 0.25% | 0.25% | 0.25% | |||
Line of credit covenant condition | The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. | The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. | ||||
Revolving Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 350,000,000 | $ 350,000,000 | $ 250,000,000 | |||
Non-Fund-Based Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Credit facility, amount utilized | $ 1,073,000 | $ 978,000 | $ 978,000 | |||
Fund-Based Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Margin over LIBOR | 1.50% | 1.50% | 1.50% |
Other Liabilities (Detail)
Other Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |||||
Accrued employee cost | $ 14,877 | $ 14,020 | $ 3,976 | ||
Deferred transition revenue | 70,900 | 72,560 | |||
Retirement benefits | 43,235 | 40,520 | 39,020 | ||
Derivative instruments | 12,931 | 7,842 | 12,576 | ||
Amount received from GE under indemnification arrangement, pending adjustment | 3,359 | 3,159 | |||
Advance from customers | 790 | 2,371 | |||
Contract liabilities | 55,484 | ||||
Earn-out consideration | 5,739 | 9,804 | 15,550 | ||
Others | 18,710 | 11,078 | |||
Others | 21,187 | 22,069 | |||
Capital lease obligations | 2,405 | 2,664 | 2,500 | ||
Other Liabilities | $ 155,858 | [1] | $ 168,609 | $ 165,561 | $ 162,790 |
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. |
Funded Status of Defined Benefi
Funded Status of Defined Benefit Plans and Amount Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||||
Projected benefit obligation at the beginning of the year | $ 58,094 | $ 45,283 | $ 45,283 | $ 35,617 | |
Service cost | 1,995 | 1,720 | 7,735 | 5,661 | $ 5,578 |
Actuarial loss | 4,493 | 6,749 | |||
Interest cost | 995 | 734 | 3,252 | 2,585 | 2,629 |
Liabilities assumed on acquisition | 693 | ||||
Benefits paid | (5,367) | (4,967) | |||
Special termination benefit | 57 | ||||
Effect of exchange rate changes | 2,641 | (1,055) | |||
Projected benefit obligation at the end of the year | 58,094 | 45,283 | 35,617 | ||
Fair value of plan assets at the beginning of the year | $ 45,560 | $ 30,871 | 30,871 | 28,549 | |
Employer contributions | 15,176 | 5,776 | |||
Actual gain on plan assets | 2,746 | 1,777 | |||
Assets assumed on acquisition | 0 | 170 | |||
Actuarial gain | 11 | ||||
Benefits paid | (5,301) | (4,897) | |||
Effect of exchange rate changes | 2,057 | (504) | |||
Fair value of plan assets at the end of the year | $ 45,560 | $ 30,871 | $ 28,549 |
Amounts Included in Other Compr
Amounts Included in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Compensation And Retirement Disclosure [Abstract] | ||
Net actuarial loss | $ (12,228) | $ (8,979) |
Deferred tax assets | 2,221 | 2,759 |
Other comprehensive income, net | $ (10,007) | $ (6,220) |
Changes in Other Comprehensive
Changes in Other Comprehensive Income (Loss) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Net actuarial loss | $ (4,182) |
Amortization of net actuarial loss | 1,177 |
Deferred income taxes | (670) |
One-time cost | 211 |
Effect of exchange rate changes | (323) |
Other comprehensive income (loss), net | $ (3,787) |
Net Defined Benefit Plan Costs
Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||||
Service costs | $ 1,995 | $ 1,720 | $ 7,735 | $ 5,661 | $ 5,578 |
Interest costs | 995 | 734 | 3,252 | 2,585 | 2,629 |
Amortization of actuarial loss | 320 | 205 | 1,177 | (113) | 330 |
Expected return on plan assets | (736) | (492) | (2,412) | (2,043) | (2,154) |
One-time cost | 209 | ||||
Special termination benefits | 426 | ||||
Net defined benefit plan costs | $ 2,574 | $ 2,167 | $ 10,387 | $ 6,090 | $ 6,383 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Amount in other comprehensive loss expected to be recognized as component of net periodic benefit cost over next fiscal year | $ 1,353 |
Benefit Obligations Of Philippines Plan | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Expectation of the average long term rate of return expected, years | 15 years |
Benefit Obligations Of Philippines Plan | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Expectation of the average long term rate of return expected, years | 20 years |
Weighted Average Assumptions us
Weighted Average Assumptions used to Determine Benefit Obligations, Gratuity Plan (Detail) - Benefit Obligations Of Gratuity Plan | Dec. 31, 2017 | Dec. 31, 2016 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 7.40% | 7.10% |
Rate of increase in compensation per annum | 5.20% | 5.20% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 7.60% | 7.50% |
Rate of increase in compensation per annum | 11.00% | 11.00% |
Weighted Average Assumptions116
Weighted Average Assumptions used to Determine Plan Costs, Gratuity Plan (Detail) - Gratuity Plan Costs | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on plan assets per annum | 7.50% | 7.50% | 8.50% |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 7.10% | 8.30% | 8.50% |
Rate of increase in compensation per annum | 5.20% | 5.20% | 5.20% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 7.50% | 8.45% | 8.55% |
Rate of increase in compensation per annum | 11.00% | 11.00% | 11.00% |
Weighted Average Assumptions117
Weighted Average Assumptions used to Determine Benefit Obligations, Mexican Plan (Detail) - Benefit Obligations Of Mexican Plan | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 7.60% | 6.80% |
Rate of increase in compensation per annum | 5.50% | 5.50% |
Weighted Average Assumptions118
Weighted Average Assumptions used to Determine Plan Costs, Mexican Plan (Detail) - Mexican Plan Costs | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 6.80% | 6.50% | 6.50% |
Rate of increase in compensation per annum | 5.50% | 5.50% | 5.50% |
Expected long-term rate of return on plan assets per annum | 0.00% | 0.00% | 0.00% |
Weighted Average Assumptions119
Weighted Average Assumptions used to Determine Benefit Obligations, Japan Plan (Detail) - Benefit Obligations Of Japan Plan | Dec. 31, 2017 | Dec. 31, 2016 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.113% | 0.08% |
Rate of increase in compensation per annum | 0.00% | 0.00% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.789% | 1.30% |
Rate of increase in compensation per annum | 3.55% | 3.55% |
Weighted Average Assumptions120
Weighted Average Assumptions used to Determine Plan Costs, Japan Plan (Detail) - Japan Plan Costs | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.08% | 0.24% | 0.20% |
Rate of increase in compensation per annum | 0.00% | 0.00% | 0.00% |
Expected long-term rate of return on plan assets per annum | 0.00% | 0.00% | 2.69% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.30% | 1.30% | 1.30% |
Rate of increase in compensation per annum | 3.55% | 3.55% | 3.55% |
Expected long-term rate of return on plan assets per annum | 3.09% | 3.77% | 3.44% |
Fair Value of Plan Assets (Deta
Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | $ 45,560 | $ 30,871 | $ 28,549 | |
Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 6,328 | 10,001 | ||
Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 39,232 | 20,870 | ||
Cash | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 472 | 4,809 | ||
Cash | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 472 | 4,809 | ||
Fixed Income Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 42,328 | 23,659 | |
Fixed Income Securities | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 3,419 | 3,001 | |
Fixed Income Securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 38,909 | 20,658 | |
Other Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | 2,760 | 2,403 | |
Other Securities | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | 2,437 | 2,191 | |
Other Securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | $ 323 | $ 212 | |
[1] | Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds | |||
[2] | Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. |
Fair Value of Plan Assets (Pare
Fair Value of Plan Assets (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of investment in funds | 100.00% | 100.00% |
Expected Benefit Plan Payments
Expected Benefit Plan Payments Reflecting Expected Future Service (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Compensation And Retirement Disclosure [Abstract] | |
2,018 | $ 8,469 |
2,019 | 8,823 |
2,020 | 9,330 |
2,021 | 9,946 |
2,022 | 10,118 |
2023 - 2027 | 48,107 |
Defined benefit plan expected future benefit payments | $ 94,793 |
Amounts Contributed to Defined
Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined contribution plans, contributed amount | $ 18,234 | $ 16,175 | $ 61,221 | $ 56,242 | $ 47,717 |
India | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined contribution plans, contributed amount | 5,944 | 5,217 | 22,242 | 19,074 | 15,915 |
U.S. | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined contribution plans, contributed amount | 4,599 | 4,280 | 11,147 | 10,379 | 8,148 |
U.K. | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined contribution plans, contributed amount | 2,137 | 1,720 | 7,823 | 6,593 | 4,453 |
China | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined contribution plans, contributed amount | 4,394 | 3,828 | 15,950 | 15,512 | 14,511 |
Other Regions | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined contribution plans, contributed amount | $ 1,160 | $ 1,130 | $ 4,059 | $ 4,684 | $ 4,690 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Mar. 21, 2018 | Dec. 20, 2017 | Sep. 21, 2017 | Jun. 28, 2017 | Mar. 28, 2017 | Apr. 11, 2012 | Jan. 31, 2015 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | May 09, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Stock based compensation cost | $ 7,597,000 | $ 4,845,000 | $ 35,112,000 | $ 24,686,000 | $ 24,684,000 | ||||||||||||||
Tax benefit recognized in relation to stock based compensation | $ 9,600,000 | $ 6,446,000 | 6,125,000 | ||||||||||||||||
Options granted, contractual period, years | 10 years | 10 years | |||||||||||||||||
Cash dividend paid per share | $ 0.075 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0 | |||||||||
Cash received from the exercise of stock option | $ 10,772,000 | $ 14,896,000 | 13,564,000 | ||||||||||||||||
Cash tax benefit realized from the exercise of stock option | 2,016,000 | $ 1,548,000 | 6,982,000 | ||||||||||||||||
Excess tax benefit on stock-based compensation | $ 6,560,000 | ||||||||||||||||||
Unrecognized stock-based compensation cost for options | $ 5,708,000 | $ 6,479,000 | $ 6,479,000 | ||||||||||||||||
Options granted | 0 | 250,000 | 860,000 | 170,000 | |||||||||||||||
Employee Stock Option | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Excess tax benefit on stock-based compensation | $ 1,723,000 | $ 1,004,000 | $ 6,560,000 | ||||||||||||||||
Weighted average remaining requisite vesting period | 2 years 8 months 12 days | 2 years 10 months 24 days | |||||||||||||||||
Restricted Share Units (RSUs) | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Weighted average remaining requisite vesting period | 2 years 8 months 12 days | 2 years 10 months 24 days | |||||||||||||||||
Unrecognized stock-based compensation cost | $ 23,703,000 | 26,543,000 | $ 26,543,000 | ||||||||||||||||
Shares to be issued on vested awards other than options | 52,875 | 86,517 | 53,546 | 92,692 | 61,057 | ||||||||||||||
Performance Units | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Weighted average remaining requisite vesting period | 1 year 9 months 18 days | 2 years | |||||||||||||||||
Unrecognized stock-based compensation cost | $ 25,194,000 | $ 28,992,000 | $ 28,992,000 | ||||||||||||||||
Performance Units | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Minimum statutory withholding taxes, Shares | 845,524 | ||||||||||||||||||
Performance Units | January, 2015 | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Shares to be issued on vested awards other than options | 1,329,270 | ||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Percentage of fair value per share allowed to eligible employees to purchase through payroll deductions | 90.00% | 90.00% | |||||||||||||||||
Maximum percentage of employee's base salary allowed to be purchased | 15.00% | 15.00% | 15.00% | ||||||||||||||||
Maximum dollar amount of common shares allowed to be purchased | $ 25,000 | $ 25,000 | |||||||||||||||||
Common shares reserved for issuance | 4,200,000 | 4,200,000 | 4,200,000 | ||||||||||||||||
Issuance of common shares under the employee stock purchase plan (in shares) | 58,476 | 55,788 | 190,435 | 146,685 | 121,485 | ||||||||||||||
Compensation expense for ESPP | $ 190,000 | $ 141,000 | $ 573,000 | $ 428,000 | $ 292,000 | ||||||||||||||
Minimum | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Award, vesting period, years | 4 years | 4 years | |||||||||||||||||
Minimum | Restricted Share Units (RSUs) | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Award, vesting period, years | 3 months | 3 months | |||||||||||||||||
Minimum | Performance Units | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Award, vesting period, years | 6 months | 6 months | |||||||||||||||||
Maximum | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Award, vesting period, years | 5 years | 5 years | |||||||||||||||||
Maximum | Restricted Share Units (RSUs) | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Award, vesting period, years | 4 years | 4 years | |||||||||||||||||
Maximum | Performance Units | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Award, vesting period, years | 3 years | 3 years | |||||||||||||||||
2007 Omnibus Plan | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Amended Omnibus Plan, increase in number of common shares authorized for issuance | 5,593,200 | 8,858,823 | |||||||||||||||||
Number of common shares authorized for issuance | 15,000,000 | 23,858,823 | 23,858,823 | ||||||||||||||||
Genpact Limited 2017 Omnibus Incentive Compensation Plan | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||
Number of common shares authorized for issuance | 15,000,000 |
Significant Assumptions used in
Significant Assumptions used in Determination of Fair Value of Options Granted (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Dividend yield | 0.97% | 0.97% | ||
Expected life (in months) | 84 months | 84 months | 84 months | 84 months |
Risk-free rate of interest for expected life | 2.25% | 2.25% | 1.99% | |
Risk-free rate of interest for expected life, minimum | 1.42% | |||
Risk-free rate of interest for expected life, maximum | 1.56% | |||
Volatility | 24.28% | 24.28% | 34.97% | |
Volatility, minimum | 25.60% | |||
Volatility, maximum | 27.22% |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Shares arising out of options | ||||||
Outstanding, shares arising out of options, beginning balance | 5,134,645 | 5,707,690 | 5,986,845 | 7,371,727 | ||
Granted, shares arising out of options | 0 | 250,000 | 860,000 | 170,000 | ||
Forfeited, shares arising out of options | (80,000) | (145,000) | (125,000) | |||
Expired, shares arising out of options | (1,277) | |||||
Exercised, shares arising out of options | (161,837) | (743,045) | (994,155) | (1,428,605) | ||
Outstanding, shares arising out of options, ending balance | 4,972,808 | 5,134,645 | 5,707,690 | 5,986,845 | 7,371,727 | |
Vested and expected to vest thereafter, shares arising out of options | [1] | 4,843,888 | 4,988,875 | 5,457,701 | 5,754,969 | |
Vested and exercisable, shares arising out of options | 3,592,809 | 2,203,146 | 2,746,191 | 2,183,846 | ||
Weighted average grant-date fair value of options granted during the period | $ 6.62 | $ 8.50 | $ 9.15 | |||
Weighted average exercise price | ||||||
Outstanding weighted average exercise price, beginning balance | $ 19.52 | 18.65 | 16.99 | 15.44 | ||
Granted, weighted average exercise price | 24.74 | 26.80 | 22.77 | |||
Forfeited, weighted average exercise price | 20.63 | 17.77 | 19.35 | |||
Expired, weighted average exercise price | 14.32 | |||||
Exercised, weighted average exercise price | 15.76 | 14.50 | 14.98 | 9.49 | ||
Outstanding weighted average exercise price, ending balance | 19.64 | 19.52 | 18.65 | 16.99 | $ 15.44 | |
Vested and expected to vest thereafter, weighted average exercise price | [1] | 19.49 | 19.36 | 18.42 | 16.76 | |
Vested and exercisable, weighted average exercise price | $ 17.63 | $ 16.17 | $ 15.62 | $ 12.67 | ||
Weighted average remaining contractual life (years) | ||||||
Outstanding weighted average remaining contractual life (years) | 5 years 4 months 24 days | 5 years 7 months 6 days | 5 years 9 months 18 days | 5 years 9 months 18 days | 5 years 10 months 24 days | |
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | [1] | 5 years 4 months 24 days | 5 years 7 months 6 days | 5 years 9 months 18 days | 5 years 9 months 18 days | |
Vested and exercisable, weighted average remaining contractual life (years) | 4 years 4 months 24 days | 4 years 1 month 6 days | 4 years | 2 years 8 months 12 days | ||
Aggregate intrinsic value | ||||||
Exercised, aggregate intrinsic value | $ 2,626 | $ 12,636 | $ 9,301 | $ 22,122 | ||
Outstanding aggregate intrinsic value, ending balance | 61,401 | 62,743 | 34,641 | 48,661 | ||
Vested and expected to vest thereafter, aggregate intrinsic value | [1] | 60,526 | 61,779 | 34,150 | 47,325 | |
Vested and exercisable, aggregate intrinsic value | $ 51,599 | $ 34,303 | $ 23,960 | $ 26,892 | ||
[1] | Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Uni
Summary of Restricted Share Units Granted (Detail) - Restricted Share Units (RSUs) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2015 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Number of Restricted Share Units | ||||||||||||
Outstanding number of shares (Units), beginning balance | 488,418 | 1,605,251 | 1,605,251 | 117,905 | 157,390 | 488,418 | ||||||
Granted, number of shares (Units) | 1,533,836 | 95,553 | 53,546 | |||||||||
Vested, number of shares (Units) | (58,875) | [1] | (45,248) | [2] | (133,903) | [3] | (351,338) | [4] | ||||
Forfeited, number of shares (Units) | (4,500) | (1,242) | (1,135) | (33,236) | ||||||||
Outstanding number of shares (Units), ending balance | 1,541,876 | 1,605,251 | 117,905 | 157,390 | 488,418 | |||||||
Expected to vest, number of shares (Units) | 1,337,172 | [5] | 1,371,567 | [6] | 107,366 | [6] | 147,226 | [6] | ||||
Weighted Average Grant Date Fair Value | ||||||||||||
Outstanding weighted average grant date fair value, beginning balance | $ 15.36 | $ 26.17 | $ 26.17 | $ 20.65 | $ 17.67 | $ 15.36 | ||||||
Granted, weighted average grant date fair value | 26.36 | 25.49 | 20.88 | |||||||||
Vested, weighted average grant date fair value | 23.99 | [1] | 18.31 | [2] | 20.66 | [3] | 15.29 | [4] | ||||
Forfeited, weighted average grant date fair value | 24.59 | 25.53 | 14.18 | 14 | ||||||||
Outstanding weighted average grant date fair value, ending balance | $ 26.26 | $ 26.17 | $ 20.65 | $ 17.67 | $ 15.36 | |||||||
Shares to be issued on vested awards other than options | 52,875 | 86,517 | 53,546 | 92,692 | 61,057 | |||||||
Vested RSU issued during the period | 6,000 | |||||||||||
Vested in December 31, 2014 | ||||||||||||
Weighted Average Grant Date Fair Value | ||||||||||||
Vested RSU issued during the period | 91,963 | |||||||||||
Vested in December 31, 2013 | ||||||||||||
Weighted Average Grant Date Fair Value | ||||||||||||
Vested RSU issued during the period | 59,827 | |||||||||||
Vested in December 31, 2016 | ||||||||||||
Weighted Average Grant Date Fair Value | ||||||||||||
Vested RSU issued during the period | 52,055 | 53,023 | ||||||||||
Vested in December 31, 2016 | Scenario, Forecast | ||||||||||||
Weighted Average Grant Date Fair Value | ||||||||||||
Vested RSU issued during the period | 52,482 | |||||||||||
[1] | 6,000 RSUs that vested during the period were net settled upon vesting by issuing 3,576 shares (net of minimum statutory tax withholding). 52,875 RSUs vested in the year ended December 31, 2017, shares in respect of which will be issuable on December 31, 2018 after withholding shares to the extent of minimum statutory withholding taxes. | |||||||||||
[2] | Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). | |||||||||||
[3] | Vested RSUs were net settled by issuing 29,719 shares (net of minimum statutory tax withholding). 86,517 RSUs vested in the year ended December 31, 2016. 17,802 common shares underlying 34,035 of such RSUs were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. Shares underlying the remaining 52,482 of such RSUs will be issued in 2018 after withholding shares to the extent of minimum statutory withholding taxes. | |||||||||||
[4] | Vested RSUs were net settled by issuing 199,949 shares (net of minimum statutory tax withholding). 53,546 RSUs vested in the year ended December 31, 2015, 53,023 shares in respect of which were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. | |||||||||||
[5] | The number of RSUs expected to vest reflects an estimated forfeiture rate. | |||||||||||
[6] | RSUs expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share 129
Summary of Restricted Share Units Granted (Parenthetical) (Detail) - Restricted Share Units (RSUs) - shares | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 3,576 | 32,395 | 29,719 | 199,949 | |||
Shares to be issued on vested awards other than options | 52,875 | 86,517 | 53,546 | 92,692 | 61,057 | ||
Vested RSU issued during the period | 6,000 | ||||||
Vesting Period Three | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vested RSU issued during the period | 52,055 | 53,023 | |||||
Vesting Period Three | Scenario, Forecast | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vested RSU issued during the period | 52,482 | ||||||
Vested in December 31, 2016 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 17,802 | ||||||
Vested RSU issued during the period | 34,035 | ||||||
Vested in December 31, 2016 | Scenario, Forecast | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vested RSU issued during the period | 52,482 |
Summary of Performance Units Ac
Summary of Performance Units Activity (Detail) - Performance Units - $ / shares | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||
Number of Performance Units | |||||||||
Outstanding number of shares (Units), beginning balance | 2,900,940 | 3,772,128 | 2,499,322 | 1,292,750 | |||||
Granted, number of shares (Units) | 1,811,292 | 1,518,374 | 1,375,650 | ||||||
Vested, number of shares (Units) | (1,087,751) | [1] | (1,136,047) | [2] | (855) | [3] | |||
Forfeited, number of shares (Units) | (78,304) | (1,583,913) | [4] | (252,842) | (136,216) | ||||
Adjustment upon final determination of level of performance goal achievement | (4,597) | [5] | 37,480 | [6] | 7,274 | [7] | |||
Adjustment due to achievement of lower than target performance | [8] | (32,007) | |||||||
Outstanding number of shares (Units), ending balance | 1,730,288 | 2,900,940 | 3,772,128 | 2,499,322 | |||||
Expected to vest, number of shares (Units) | 1,524,101 | [9] | 2,657,685 | [10] | 2,226,489 | [10] | 2,184,906 | [10] | |
Weighted Average Grant Date Fair Value | |||||||||
Outstanding weighted average grant date fair value, beginning balance | $ 24.40 | $ 23.04 | $ 19.95 | $ 16.78 | |||||
Granted, weighted average grant date fair value | 25.22 | 27.93 | 22.72 | ||||||
Vested, weighted average grant date fair value | 22.73 | [1] | 16.78 | [2] | 16.78 | [3] | |||
Forfeited, weighted average grant date fair value | 24.92 | 27.57 | [4] | 21.88 | 17.82 | ||||
Adjustment upon final determination of level of performance goal achievement | 25.22 | [5] | 25.22 | [6] | 22.72 | [7] | |||
Adjustment due to achievement of lower than maximum performance goals | [8] | 20.45 | |||||||
Outstanding weighted average grant date fair value, ending balance | $ 25.43 | $ 24.40 | $ 23.04 | $ 19.95 | |||||
Maximum shares eligible to receive | |||||||||
Outstanding maximum shares eligible to receive, beginning balance | 2,900,940 | ||||||||
Vested, maximum shares eligible to receive | [1] | (1,087,751) | |||||||
Forfeited, maximum shares eligible to receive | (78,304) | ||||||||
Adjustment upon final determination of level of performance goal achievement | [5] | 4,597 | |||||||
Adjustment due to achievement of lower than maximum performance | [5] | (4,597) | |||||||
Outstanding maximum shares eligible to receive, ending balance | 1,730,288 | 2,900,940 | |||||||
Forfeited, number of shares (Units) | (1,443,624) | ||||||||
Outstanding maximum shares eligible to receive, beginning balance | 2,900,940 | 5,524,114 | 2,499,322 | 2,648,626 | |||||
Granted, maximum shares eligible to receive | 3,622,584 | 3,343,335 | 2,965,475 | ||||||
Vested, maximum shares eligible to receive | (1,136,047) | [2] | (855) | [3] | |||||
Forfeited, maximum shares eligible to receive | (1,627,313) | [4] | (325,817) | (156,194) | |||||
Adjustment upon final determination of level of performance goal achievement | (3,482,398) | [11] | 7,274 | [7] | 2,957,730 | [12] | |||
Adjustment due to achievement of lower than maximum performance | 3,482,398 | [11] | (7,274) | [7] | (2,957,730) | [12] | |||
Outstanding maximum shares eligible to receive, ending balance | 2,900,940 | 5,524,114 | 2,499,322 | ||||||
[1] | PUs that vested during the period were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). | ||||||||
[2] | Vested PUs were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). | ||||||||
[3] | Vested PUs were net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). | ||||||||
[4] | Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. | ||||||||
[5] | Represents an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. | ||||||||
[6] | Represents a 2.7% increase in the number of target shares as a result of achievement of higher-than-target performance for certain PUs granted in 2017, partially offset by a 12.5% reduction as a result of achievement of lower-than-target performance for certain PUs granted in 2017. | ||||||||
[7] | Represents an adjustment made in March 2016 to the number of shares underlying the PUs granted in 2015 upon certification of the level of achievement of the performance targets for such awards. | ||||||||
[8] | Represents a 5.2% to 6.7% reduction, depending on the targets under the PU award granted, in the number of target shares as a result of achievement of lower-than-target performance for the PUs granted in 2015, partially offset by a 0.8% to 6.6% increase in the number of target shares as a result of achievement of higher-than-target performance for the PUs granted in 2014. | ||||||||
[9] | The number of PUs expected to vest has been adjusted by an estimated forfeiture rate. | ||||||||
[10] | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||||||||
[11] | Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2017 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. | ||||||||
[12] | Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2015. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2014 based on the certified level of achievement of the performance goals. |
Summary of Performance Units131
Summary of Performance Units Activity (Parenthetical) (Detail) - shares | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Net settlement on vesting of performance units, shares | 691,958 | 731,701 | 590 | ||
Performance Units | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Forfeited, number of shares (Units) | 1,443,624 | ||||
Increase due to achievement of higher-than-target performance for grants in 2017, percentage | 2.70% | ||||
Decrease due to achievement of lower-than-target performance for grants in 2017, percentage | 12.50% | ||||
Performance Units | Minimum | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Addition due to achievement of higher than target performance, percentage | 0.80% | ||||
Reduction due to achievement of lower than target performance, percentage | 5.20% | ||||
Performance Units | Maximum | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Addition due to achievement of higher than target performance, percentage | 6.60% | ||||
Reduction due to achievement of lower than target performance, percentage | 6.70% |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Mar. 21, 2018 | Feb. 12, 2018 | Jan. 17, 2018 | Jan. 12, 2018 | Dec. 29, 2017 | Dec. 20, 2017 | Sep. 21, 2017 | Jun. 28, 2017 | Mar. 30, 2017 | Mar. 28, 2017 | Feb. 28, 2017 | Mar. 01, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jan. 12, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 29, 2017 | Feb. 10, 2017 |
Class Of Stock [Line Items] | |||||||||||||||||||||||
Common shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||||||||||
Common shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||
Preferred shares, authorized | 250,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | |||||||||||||||||||
Preferred shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||
Common shares, issued | 190,613,135 | 192,825,207 | 192,825,207 | 198,794,052 | |||||||||||||||||||
Common shares, outstanding | 190,613,135 | 192,825,207 | 192,825,207 | 198,794,052 | |||||||||||||||||||
Preferred shares, issued | 0 | 0 | 0 | 0 | |||||||||||||||||||
Preferred shares, outstanding | 0 | 0 | 0 | ||||||||||||||||||||
Common stock voting right | Holders of common shares are entitled to one vote per share | ||||||||||||||||||||||
Stock repurchase authorized amount | $ 750,000,000 | $ 1,250,000,000 | |||||||||||||||||||||
Additional stock repurchase authorized amount | $ 500,000,000 | ||||||||||||||||||||||
Shares repurchased and retired (in shares) | 757,526 | 3,015,999 | 808,293 | 808,293 | 13,940,782 | ||||||||||||||||||
Common stock shares repurchased price per share | $ 31.67 | $ 31.82 | $ 24.48 | $ 24.48 | $ 24.76 | ||||||||||||||||||
Aggregate amount of common stock shares repurchased | $ 95,984,000 | $ 219,784,000 | $ 219,784,000 | $ 345,200,000 | $ 226,917,000 | ||||||||||||||||||
Expenses related to stock purchases | $ 60,000 | $ 16,000 | $ 16,000 | $ 279,000 | $ 197,000 | ||||||||||||||||||
Quarterly dividend declared | $ 0.075 | $ 0.06 | |||||||||||||||||||||
Annual dividend | $ 0.24 | $ 0.24 | |||||||||||||||||||||
Dividend | $ 14,408,000 | $ 11,590,000 | $ 11,581,000 | $ 11,558,000 | $ 11,957,000 | ||||||||||||||||||
Dividend payment date | Mar. 21, 2018 | ||||||||||||||||||||||
Dividends payable, date of record | Mar. 9, 2018 | ||||||||||||||||||||||
Dividends payable, date declared | 2018-02 | 2017-02 | |||||||||||||||||||||
Dividends paid per share | $ 0.075 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0 | |||||||||||||
Percentage Increase In Quarterly Cash Dividend | 25.00% | ||||||||||||||||||||||
Planned annual dividend | $ 0.30 | $ 0.24 | $ 0.30 | ||||||||||||||||||||
First Quarter Dividend | |||||||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||||||
Dividend payment date | Mar. 21, 2018 | Mar. 28, 2017 | |||||||||||||||||||||
Dividends payable, date of record | Mar. 9, 2018 | Mar. 10, 2017 | |||||||||||||||||||||
Second Quarter Dividend | |||||||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||||||
Dividend payment date | Jun. 28, 2017 | ||||||||||||||||||||||
Dividends payable, date of record | Jun. 12, 2017 | ||||||||||||||||||||||
Third Quarter Dividend | |||||||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||||||
Dividend payment date | Sep. 21, 2017 | ||||||||||||||||||||||
Dividends payable, date of record | Sep. 8, 2017 | ||||||||||||||||||||||
Fourth Quarter Dividend | |||||||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||||||
Dividend payment date | Dec. 20, 2017 | ||||||||||||||||||||||
Dividends payable, date of record | Dec. 8, 2017 | ||||||||||||||||||||||
Accelerated Share Repurchase Agreement | |||||||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||||||
Aggregate purchase price of common shares | $ 200,000,000 | ||||||||||||||||||||||
Initial delivery of common shares received | 6,578,947 | ||||||||||||||||||||||
Additional delivery of common shares received | 350,006 | ||||||||||||||||||||||
Delivery of common shares received, shares | 6,928,953 | ||||||||||||||||||||||
Delivery of common shares received, amount | $ 196,000,000 | ||||||||||||||||||||||
Delivery of weighted average price per share of common shares | $ 28.20 | $ 28.29 | |||||||||||||||||||||
Shares repurchased and retired (in shares) | 163,975 | 7,092,928 | |||||||||||||||||||||
Common stock shares repurchased price per share | $ 28.20 | ||||||||||||||||||||||
Aggregate amount of common stock shares repurchased | $ 200,000,000 | ||||||||||||||||||||||
Final delivery of common shares received | 163,975 | ||||||||||||||||||||||
Accelerated Share Repurchase Agreement | Additional Paid- in Capital | |||||||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||||||
Reduction to shareowners' equity | $ 4,000,000 | ||||||||||||||||||||||
Share Repurchase Open Market | |||||||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||||||
Aggregate amount of common stock shares repurchased | $ 23,993,000 | $ 95,984,000 | $ 19,784,000 | $ 19,784,000 | $ 345,200,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||
Number of stock awards outstanding but not included in the computation of diluted earnings per common share | 660,000 | 1,003,048 | 1,007,480 | 781,215 | 2,821,000 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share (Abstract) | ||||||||||||
Net income available to Genpact Limited common shareholders | $ 64,695 | $ 53,338 | $ 263,111 | $ 269,684 | $ 239,817 | |||||||
Weighted average number of common shares used in computing basic earnings per common share | 192,816,626 | 192,795,534 | 192,124,366 | 191,469,593 | 199,069,528 | 200,341,922 | 206,146,007 | 210,178,050 | 210,780,165 | 193,864,755 | 206,861,536 | 216,606,542 |
Dilutive effect of stock-based awards | 3,471,943 | 3,586,409 | 3,184,797 | 3,264,487 | 2,538,502 | |||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 196,288,569 | 196,862,168 | 194,947,699 | 193,732,406 | 202,655,937 | 203,431,310 | 209,376,683 | 213,803,134 | 213,892,964 | 197,049,552 | 210,126,023 | 219,145,044 |
Basic | $ 0.34 | $ 0.35 | $ 0.38 | $ 0.36 | $ 0.27 | $ 0.38 | $ 0.33 | $ 0.31 | $ 0.28 | $ 1.36 | $ 1.30 | $ 1.11 |
Diluted | $ 0.33 | $ 0.34 | $ 0.38 | $ 0.36 | $ 0.26 | $ 0.38 | $ 0.33 | $ 0.31 | $ 0.27 | $ 1.34 | $ 1.28 | $ 1.09 |
Cost of Revenue (Detail)
Cost of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | $ 444,324 | $ 383,337 | $ 1,683,704 | $ 1,554,707 | $ 1,493,547 |
Personnel expenses | |||||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | 310,132 | 269,189 | 1,155,745 | 1,061,501 | 1,013,209 |
Operational expenses | |||||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | 121,357 | 102,716 | 481,012 | 446,922 | 432,535 |
Depreciation and amortization | |||||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | $ 12,835 | $ 11,432 | $ 46,947 | $ 46,284 | $ 47,803 |
Selling, General and Adminis136
Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Component Of Operating Other Cost And Expense [Line Items] | ||||||
Selling, general and administrative expenses | $ 171,109 | [1] | $ 160,858 | $ 689,847 | $ 653,029 | $ 608,114 |
Personnel expenses | ||||||
Component Of Operating Other Cost And Expense [Line Items] | ||||||
Selling, general and administrative expenses | 128,068 | 122,569 | 501,445 | 469,956 | 430,088 | |
Operational expenses | ||||||
Component Of Operating Other Cost And Expense [Line Items] | ||||||
Selling, general and administrative expenses | 40,389 | 35,813 | 178,573 | 174,060 | 169,042 | |
Depreciation and amortization | ||||||
Component Of Operating Other Cost And Expense [Line Items] | ||||||
Selling, general and administrative expenses | $ 2,652 | $ 2,476 | $ 9,829 | $ 9,013 | $ 8,984 | |
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. |
Other Operating Income (Expense
Other Operating Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income And Expenses [Abstract] | |||||
Other operating (income) expense | $ (235) | $ (4,400) | $ (7,277) | $ (1,266) | $ (2,515) |
Provision for impairment of intangible assets and property, plant and equipment | 9,311 | 11,195 | 10,714 | ||
Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) | 17 | (3,138) | (3,695) | (14,869) | (11,521) |
Other operating (income) expense, net | $ (218) | $ (7,538) | $ (1,661) | $ (4,940) | $ (3,322) |
Interest Income (Expense), N138
Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income And Expenses [Abstract] | |||||
Interest income | $ 3,370 | $ 1,131 | $ 8,182 | $ 7,247 | $ 8,676 |
Interest expense | (11,470) | (6,624) | (39,917) | (23,431) | (29,828) |
Loss on extinguishment of debt | (10,115) | ||||
Interest income (expense), net | $ (8,100) | $ (5,493) | $ (31,735) | $ (16,184) | $ (31,267) |
Income Tax Expense (Benefit) (D
Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 12,075 | $ 12,245 | $ 59,742 | $ 62,098 | $ 61,937 |
Other comprehensive Income: | |||||
Unrealized gains (losses) on cash flow hedges | (5,240) | $ 11,355 | 457 | 23,809 | 13,816 |
Retirement benefits | 670 | (1,885) | 1,304 | ||
Excess tax benefit on stock-based compensation | $ 0 | 0 | $ (6,560) | ||
Deferred tax assets recognized on early adoption of ASU 2016-09 | $ (2,265) | $ (24,912) |
Components of Income before Inc
Components of Income before Income Tax Expense from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Domestic (U.S.) | $ 8,440 | $ 44,110 | $ 23,122 | ||
Foreign (Non-U.S.) | 312,143 | 285,535 | 278,632 | ||
Income before income tax expense | $ 76,009 | $ 64,685 | $ 320,583 | $ 329,645 | $ 301,754 |
Income Tax Expense (Benefit) At
Income Tax Expense (Benefit) Attributable to Income from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current taxes: | |||||
Domestic (U.S. federal taxes) | $ 3,380 | $ 78 | $ 12,142 | ||
Domestic (U.S. state taxes) | 1,268 | 1,069 | 301 | ||
Foreign (Non-U.S.) | 65,485 | 30,497 | 68,207 | ||
Current Income Tax Expense (Benefit), Total | 70,133 | 31,644 | 80,650 | ||
Deferred taxes: | |||||
Domestic (U.S. federal taxes) | 3,549 | 11,379 | (5,396) | ||
Domestic (U.S. state taxes) | (2,809) | (459) | 344 | ||
Foreign (Non-U.S.) | (11,131) | 19,534 | (13,661) | ||
Deferred Income Tax Expense (Benefit), Total | $ (4,625) | $ (2,890) | (10,391) | 30,454 | (18,713) |
Total income tax expense (benefit) | $ 12,075 | $ 12,245 | $ 59,742 | $ 62,098 | $ 61,937 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018USD ($) | Dec. 31, 2018 | Dec. 31, 2017USD ($)Unit$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($) | Mar. 31, 2017USD ($) | |
Income Tax Disclosure [Line Items] | |||||||
U.S. federal corporate income tax rate | 21.00% | 35.00% | 35.00% | 35.00% | |||
Number of Special Economic Zone units held by Indian subsidiary eligible for tax holiday | Unit | 16 | ||||||
Excess tax benefits relating to exercise of stock awards recorded through retained earnings | $ 2,265,000 | $ 24,912,000 | |||||
Excess tax benefit on stock-based Compensation | $ 0 | 0 | $ 6,560,000 | ||||
Net operating loss carryforwards | 223,415,000 | ||||||
Deferred tax assets related to net operating loss carryforwards, excluding state | 50,495,000 | ||||||
Net operating loss of subsidiary, carried forward | 126,612,000 | ||||||
Additional deferred tax assets for U.S. state and local tax loss carry-forwards | $ 5,005,000 | ||||||
Operating loss carry-forwards, expiration date, range start | 2,018 | ||||||
Operating loss carry-forwards, expiration date, range end | 2,036 | ||||||
Tax credit carry forward | 33,220,000 | ||||||
Undistributed earnings of foreign subsidiaries (non-Bermuda) | $ 36,029,000 | ||||||
Deferred tax liability has not been recognized for undistributed earnings of foreign subsidiaries (non-Bermuda) | 0 | ||||||
Cash and cash equivalents held by foreign (non-Bermuda) subsidiaries | 499,532,000 | ||||||
Cash and cash equivalents | 424,226,000 | 504,468,000 | 422,623,000 | 450,907,000 | $ 461,788,000 | $ 388,186,000 | |
Cash held by foreign subsidiary | 243,813,000 | ||||||
Cash and cash equivalents held by foreign (non-Bermuda) subsidiaries for which no tax will accrue on repatriation of retained earnings | 122,674,000 | ||||||
Cash and cash equivalents held by foreign subsidiaries | 133,045,000 | ||||||
Net tax expense in net deferred tax asset | $ 3,182,000 | ||||||
Percentage of claim on depreciation | 100.00% | ||||||
Investments in depreciable property | $ 7,685,000 | ||||||
Tax liability for transition tax | 0 | ||||||
Unrecognized tax benefits that would impact effective tax rate | 24,604,000 | 24,877,000 | 22,469,000 | 24,935,000 | |||
Unrecognized tax benefits, interest on income taxes accrued | 4,806,000 | 4,614,000 | 3,856,000 | 4,223,000 | |||
Unrecognized tax benefits, excluding exchange rate differences for interest recognized | 285,000 | (224,000) | (224,000) | (206,000) | 1,152,000 | ||
Accrued penalties | $ 1,024,000 | 1,033,000 | 977,000 | 958,000 | |||
Effective tax rate | 15.70% | ||||||
Reduction in tax expense due to certain periodic discrete items, including excess tax benefit recognized on settlement of stock awards | $ 2,746,000 | ||||||
Tax gain relating to derivatives | 2,265,000 | ||||||
Unrecognized tax benefits | $ 25,789,000 | 26,060,000 | 23,467,000 | $ 26,357,000 | $ 22,718,000 | ||
Scenario, Forecast | |||||||
Income Tax Disclosure [Line Items] | |||||||
U.S. federal corporate income tax rate | 21.00% | ||||||
Retained Earnings | |||||||
Income Tax Disclosure [Line Items] | |||||||
Repatriation of retained earnings | 17,343,000 | ||||||
Foreign Tax Authority | |||||||
Income Tax Disclosure [Line Items] | |||||||
Tax credit carry forward | 33,220,000 | ||||||
Early Adoption of ASU 2016-09 | |||||||
Income Tax Disclosure [Line Items] | |||||||
Excess tax benefits relating to exercise of stock awards recorded through retained earnings | 24,912,000 | ||||||
Income tax expense attributable to continuing operations | $ 1,723,000 | 1,004,000 | |||||
Foreign Subsidiary | |||||||
Income Tax Disclosure [Line Items] | |||||||
Operating loss carryforwards reversal of remaining valuation allowance | $ 3,377,000 | ||||||
Minimum | |||||||
Income Tax Disclosure [Line Items] | |||||||
Tax holiday, expiring date | March 31, 2022 | ||||||
Maximum | |||||||
Income Tax Disclosure [Line Items] | |||||||
Tax holiday, expiring date | March 31, 2029 | ||||||
Tax Holiday For First 5 Years | |||||||
Income Tax Disclosure [Line Items] | |||||||
Tax holiday, period, in years | 5 years | ||||||
Percentage of tax holiday in respect to export profits | 100.00% | ||||||
Tax Holiday from year 6 to year 10 | |||||||
Income Tax Disclosure [Line Items] | |||||||
Tax holiday, period, in years | 5 years | ||||||
Percentage of tax holiday in respect to export profits | 50.00% | ||||||
Tax Holiday from year 11 to year 15 | |||||||
Income Tax Disclosure [Line Items] | |||||||
Tax holiday, period, in years | 5 years | ||||||
Percentage of tax holiday in respect to export profits | 50.00% | ||||||
Basic Earnings Per Share | |||||||
Income Tax Disclosure [Line Items] | |||||||
Earnings per share effect of tax holiday | $ / shares | $ 0.18 | $ 0.19 | $ 0.18 | ||||
Diluted Earnings Per Share | |||||||
Income Tax Disclosure [Line Items] | |||||||
Earnings per share effect of tax holiday | $ / shares | $ 0.18 | $ 0.18 | $ 0.17 |
Income Tax Expense (Benefit) Co
Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Tax Disclosure [Abstract] | ||||||
Income before income tax expense | $ 76,009 | $ 64,685 | $ 320,583 | $ 329,645 | $ 301,754 | |
Statutory tax rates | 21.00% | 35.00% | 35.00% | 35.00% | ||
Computed expected income tax expense | $ 112,204 | $ 115,376 | $ 105,614 | |||
Increase (decrease) in income taxes resulting from: | ||||||
Foreign tax rate differential | (25,224) | (18,574) | (16,550) | |||
Tax benefit from tax holiday | (35,814) | (32,893) | (38,039) | |||
Non-deductible expenses | 1,146 | 2,295 | 1,884 | |||
Effect of change in tax rates | 2,778 | 353 | 1,436 | |||
Change in valuation allowance | 9,041 | (4,830) | (33) | |||
Unrecognized tax benefits | 1,611 | (627) | 6,272 | |||
Other | [1] | (6,000) | 998 | 1,353 | ||
Total income tax expense (benefit) | $ 12,075 | $ 12,245 | $ 59,742 | $ 62,098 | $ 61,937 | |
[1] | During 2017, following the transfer/closure of certain affiliated entities, deferred tax liabilities recorded against the outside basis difference amounting to $9,600 were reversed. It was not more likely than not that the resulting net deferred tax asset would be realized. Therefore, a full valuation allowance was established to offset the reduction in deferred tax liabilities. |
Income Tax Expense (Benefit)144
Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Reversal of deferred tax liabilities due to transfer/closure of certain affiliated entities | $ 9,600 |
Components of Deferred Tax Bala
Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax assets | |||||||
Net operating loss carryforwards | $ 55,500 | $ 52,997 | |||||
Accrued liabilities and other expenses | 41,177 | 19,840 | |||||
Provision for doubtful debts | 10,509 | 6,419 | |||||
Property, plant and equipment | 1,270 | 3,445 | |||||
Unrealized losses on cash flow hedges, Net | 275 | 558 | |||||
Share-based compensation | 19,789 | 19,054 | |||||
Retirement benefits | 5,817 | 5,067 | |||||
Deferred revenue | 22,948 | 44,892 | |||||
Tax credit carryforwards | 35,322 | 34,509 | |||||
Other | 11,571 | 8,876 | |||||
Gross deferred tax assets | 204,178 | 195,657 | |||||
Less: valuation allowance | (24,549) | (14,746) | $ (20,091) | $ (21,094) | |||
Total deferred tax assets | 179,629 | 180,911 | |||||
Deferred tax assets | $ 81,734 | 76,929 | $ 61,029 | 70,143 | |||
Deferred tax liabilities | |||||||
Intangible assets | 15,954 | 13,519 | |||||
Property, plant and equipment | 1,131 | 2,745 | |||||
Deferred cost | 33,816 | 41,950 | |||||
Investments in foreign subsidiaries not indefinitely reinvested | 18,949 | 29,546 | |||||
Unrealized gains on cash flow hedges, net | 14,711 | 14,350 | |||||
Other | 24,886 | 11,073 | |||||
Total deferred tax liabilities | 109,447 | 113,183 | |||||
Deferred tax liabilities | $ 7,083 | [1] | 6,747 | $ 1,815 | 2,415 | ||
Net deferred tax asset | $ 70,182 | $ 67,728 | |||||
[1] | The cumulative impact of the adoption of ASC 606 resulted in an increase of $23,227 in the contract cost asset related to sales incentive programs (excluding the effect of the current period – refer to note d to the table below) as of January 1, 2018 with a corresponding impact of $17,924 on retained earnings (excluding the effect of the current period – refer to note d to the table below) and on deferred tax liability of $5,303. |
Change in Total Valuation Allow
Change in Total Valuation Allowance for Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Opening valuation allowance | $ 14,746 | $ 20,091 | $ 21,094 |
Reduction during the year | (3,957) | (7,299) | (3,499) |
Addition during the year | 13,760 | 1,954 | 2,496 |
Closing valuation allowance | $ 24,549 | $ 14,746 | $ 20,091 |
Remaining Tax Loss Carry Forwar
Remaining Tax Loss Carry Forwards Expiration (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
US - Federal | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | $ 19,424 |
US - Federal | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 9,511 |
US - Federal | 2027 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 9,913 |
Europe | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 47,937 |
Europe | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,872 |
Europe | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 581 |
Europe | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 5,253 |
Europe | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 8,500 |
Europe | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,213 |
Europe | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 28,222 |
Europe | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,263 |
Europe | 2028 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 33 |
Others | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 29,442 |
Others | 2018 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 20 |
Others | 2019 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 72 |
Others | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 62 |
Others | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,084 |
Others | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 60 |
Others | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 953 |
Others | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 7,941 |
Others | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 9,647 |
Others | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 3,072 |
Others | 2027 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,053 |
Others | 2028 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,451 |
Others | 2034 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | $ 1,027 |
Foreign Tax Credit Expiry Perio
Foreign Tax Credit Expiry Period (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | $ 33,220 |
2,023 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 893 |
2,024 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 1,202 |
2,025 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 15,552 |
2,026 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 8,481 |
2,027 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 5,362 |
2,028 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | $ 1,730 |
Activities Related to Unrecogni
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Uncertainties [Abstract] | ||||
Beginning balance | $ 26,060 | $ 23,467 | $ 26,357 | $ 22,718 |
Increase related to prior year tax positions, including recorded in acquisition accounting | 229 | 2,582 | 370 | 2,000 |
Decrease related to prior year tax positions | (8) | (1,398) | (1,506) | |
Decrease related to divestiture of business | (345) | |||
Decrease related to prior year tax position due to lapse of applicable statute of limitation | (384) | (1,019) | (2,122) | (820) |
Increase related to current year tax positions, including recorded in acquisition accounting | 1,661 | 3,225 | 3,544 | |
Decrease related to settlements with tax Authorities | (2,000) | |||
Effect of exchange rate changes | (108) | 767 | (512) | (1,085) |
Ending balance | $ 25,789 | $ 26,060 | $ 23,467 | $ 26,357 |
Net Revenues for Service Type (
Net Revenues for Service Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 2,736,929 | $ 2,570,756 | $ 2,461,044 |
Business process outsourcing | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 574,061 | 511,283 | 2,264,335 | 2,083,450 | 1,933,095 | |||||||
IT Services | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 114,851 | $ 111,712 | $ 472,594 | $ 487,306 | $ 527,949 |
Revenues from Clients Based on
Revenues from Clients Based on Industry Serviced (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 2,736,929 | $ 2,570,756 | $ 2,461,044 |
Banking, financial services and insurance | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 275,627 | 247,012 | 1,105,731 | 1,055,704 | 1,030,584 | |||||||
Manufacturing including pharmaceuticals and medical equipment manufacturing | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 247,125 | 229,214 | 1,002,973 | 958,779 | 878,570 | |||||||
Technology, healthcare and other services | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 166,160 | $ 146,769 | $ 628,225 | $ 556,273 | $ 551,890 |
Net Revenues from Geographic Ar
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 2,736,929 | $ 2,570,756 | $ 2,461,044 |
India | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 389,134 | 411,055 | 1,712,783 | 1,804,113 | 1,687,699 | |||||||
Asia, other than India | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 79,461 | 66,662 | 286,338 | 249,839 | 238,529 | |||||||
Americas | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 152,280 | 85,042 | 455,059 | 282,434 | 304,879 | |||||||
Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 68,037 | $ 60,236 | $ 282,749 | $ 234,370 | $ 229,937 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Disclosure [Line Items] | |||||
Percentage of consolidated revenue not exceeded by any customer | 10.00% | 10.00% | 10.00% | ||
General Electric Company | |||||
Segment Reporting Disclosure [Line Items] | |||||
Percentage of revenues | 8.00% | 11.00% | 10.00% | 14.00% | 19.00% |
Property, Plant and Equipmen154
Property, Plant and Equipment, Net by Geographic Areas (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Property, plant and equipment, net | $ 205,035 | $ 207,030 | $ 212,562 | $ 193,218 |
India | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Property, plant and equipment, net | 125,490 | 116,417 | ||
Asia, other than India | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Property, plant and equipment, net | 15,899 | 13,549 | ||
Americas | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Property, plant and equipment, net | 38,438 | 44,633 | ||
Europe | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Property, plant and equipment, net | $ 27,203 | $ 18,619 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Investment in equity affiliates | $ 919 | $ 769 | $ 886 | $ 4,800 | |
Affiliate of Significant Shareholder | |||||
Related Party Transaction [Line Items] | |||||
Recognized net revenues | 304 | 83 | 398 | 335 | $ 326 |
Non-Consolidating Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Recognized net revenues | 3,211 | 5,400 | 8,077 | 7,826 | |
Cost of revenue | 191 | 575 | 2,043 | 2,067 | 2,173 |
Selling, general and administrative expenses, net of recovery | 49 | 94 | 315 | 291 | 384 |
Investment in equity affiliates | 467 | 496 | 5,884 | ||
Charges to equity-method investment | 2,821 | 2,849 | |||
Investment in equity affiliates | 919 | 886 | 4,800 | ||
Cost reimbursements from non-consolidating affiliates | 238 | 477 | 1,162 | 2,077 | |
Reimbursements receivable | 127 | ||||
Non-Consolidating Affiliates | U.K. | |||||
Related Party Transaction [Line Items] | |||||
Payment for affiliate under tax sharing arrangement | $ 1,307 | 3,847 | |||
Significant Shareholder of Company | |||||
Related Party Transaction [Line Items] | |||||
Selling, general and administrative expenses, net of recovery | $ 10 | 57 | $ 58 | $ 421 | |
Cost reimbursements from non-consolidating affiliates | 127 | ||||
Claim on Net Operating Losses under Consortium Relief | U.K. | Other Liabilities | |||||
Related Party Transaction [Line Items] | |||||
Claimed portion of net operating losses, outstanding | $ 3,291 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies [Line Items] | |||
Bank guarantees, outstanding | $ 8,385 | $ 8,879 | $ 11,958 |
Capital Addition Purchase Commitments | |||
Commitments And Contingencies [Line Items] | |||
Commitments and contingencies | $ 7,221 | $ 8,314 | $ 5,185 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Total net revenues | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 2,736,929 | $ 2,570,756 | $ 2,461,044 | |
Gross profit | 244,588 | 278,530 | 279,633 | 255,404 | 239,658 | 276,075 | 256,351 | 246,768 | 236,855 | 1,053,225 | 1,016,049 | 967,497 | |
Income from operations | 63,761 | 72,049 | 97,451 | 80,031 | 79,096 | 98,092 | 87,124 | 79,940 | 75,622 | 328,627 | 340,777 | 334,192 | |
Income before equity method investment activity, net and income tax expense | 76,009 | 81,559 | 89,742 | 84,582 | 69,243 | 95,502 | 87,360 | 81,818 | 72,664 | 325,126 | 337,343 | 312,554 | |
Net Income | 63,934 | [1] | 66,138 | 73,161 | 69,102 | 52,440 | 76,066 | 68,188 | 64,788 | 58,505 | 260,841 | 267,547 | 239,817 |
Net loss attributable to redeemable non-controlling interest | 761 | 944 | 584 | (156) | 898 | 232 | 734 | 882 | 289 | 2,270 | 2,137 | ||
Net income attributable to Genpact Limited shareholders | $ 64,695 | [1] | $ 67,082 | $ 73,745 | $ 68,946 | $ 53,338 | $ 76,298 | $ 68,922 | $ 65,670 | $ 58,794 | $ 263,111 | $ 269,684 | $ 239,817 |
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||
Basic | $ 0.34 | $ 0.35 | $ 0.38 | $ 0.36 | $ 0.27 | $ 0.38 | $ 0.33 | $ 0.31 | $ 0.28 | $ 1.36 | $ 1.30 | $ 1.11 | |
Diluted | $ 0.33 | $ 0.34 | $ 0.38 | $ 0.36 | $ 0.26 | $ 0.38 | $ 0.33 | $ 0.31 | $ 0.27 | $ 1.34 | $ 1.28 | $ 1.09 | |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||
Basic | 192,816,626 | 192,795,534 | 192,124,366 | 191,469,593 | 199,069,528 | 200,341,922 | 206,146,007 | 210,178,050 | 210,780,165 | 193,864,755 | 206,861,536 | 216,606,542 | |
Diluted | 196,288,569 | 196,862,168 | 194,947,699 | 193,732,406 | 202,655,937 | 203,431,310 | 209,376,683 | 213,803,134 | 213,892,964 | 197,049,552 | 210,126,023 | 219,145,044 | |
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 12, 2018 | Jan. 12, 2018 | May 10, 2018 | Feb. 28, 2017 | Mar. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Jan. 12, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||||||||||
Shares repurchased and retired (in shares) | 757,526 | 3,015,999 | 808,293 | 808,293 | 13,940,782 | ||||||
Common stock shares repurchased price per share | $ 31.67 | $ 31.82 | $ 24.48 | $ 24.48 | $ 24.76 | ||||||
Aggregate amount of common stock shares repurchased | $ 95,984 | $ 219,784 | $ 219,784 | $ 345,200 | $ 226,917 | ||||||
Quarterly dividend declared, date | Feb. 12, 2018 | ||||||||||
Dividends declared per common share, percentage | 25.00% | ||||||||||
Planned annual dividend | $ 0.30 | $ 0.24 | $ 0.30 | ||||||||
Quarterly dividend declared | $ 0.075 | $ 0.06 | |||||||||
Dividend payment date | Mar. 21, 2018 | ||||||||||
Dividends payable, date of record | Mar. 9, 2018 | ||||||||||
Share Repurchase Open Market | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate amount of common stock shares repurchased | $ 23,993 | $ 95,984 | $ 19,784 | $ 19,784 | $ 345,200 | ||||||
Share Repurchase Open Market | Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate amount of common stock shares repurchased | $ 15,827 | ||||||||||
Number of common shares repurchased | 505,520 | ||||||||||
Weighted average price of share | $ 31.31 | ||||||||||
Accelerated Share Repurchase Agreement | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Shares repurchased and retired (in shares) | 163,975 | 7,092,928 | |||||||||
Common stock shares repurchased price per share | $ 28.20 | ||||||||||
Aggregate amount of common stock shares repurchased | $ 200,000 |
Guarantor Financial Informat159
Guarantor Financial Information - Additional Information (Detail) - 3.70% Senior Notes | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
Principal amount of senior notes issued | $ 350,000,000 |
Interest rate on senior notes | 3.70% |
Guarantor Financial Informat160
Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets | |||||||
Cash and cash equivalents | $ 424,226 | $ 504,468 | $ 388,186 | $ 422,623 | $ 450,907 | $ 461,788 | |
Accounts receivable, net | 703,066 | 693,085 | 602,871 | 615,265 | |||
Prepaid expenses and other current assets | 199,208 | [1],[2] | 236,342 | 227,635 | 189,149 | ||
Total current assets | 1,326,500 | 1,433,895 | 1,218,692 | 1,227,037 | |||
Property, plant and equipment, net | 205,035 | 207,030 | 212,562 | 193,218 | |||
Deferred tax assets | 81,734 | 76,929 | 61,029 | 70,143 | |||
Investment in equity affiliates | 919 | 886 | 769 | 4,800 | |||
Intangible assets, net | 125,781 | 131,590 | 69,070 | 78,946 | |||
Goodwill | 1,337,051 | 1,337,122 | 1,097,329 | 1,069,408 | 1,038,346 | ||
Contract cost assets | 162,435 | ||||||
Other assets | 157,672 | [1],[2] | 262,169 | 252,279 | 242,328 | ||
Total assets | 3,397,127 | 3,449,621 | 2,911,730 | 2,885,880 | |||
Current liabilities | |||||||
Short-term borrowings | 275,000 | 170,000 | 15,000 | 160,000 | |||
Current portion of long-term debt | 39,237 | 39,226 | 39,192 | 39,181 | |||
Accounts payable | 13,811 | 15,050 | 9,086 | 9,768 | |||
Income taxes payable | 40,026 | 30,026 | 33,091 | 24,159 | |||
Accrued expenses and other current liabilities | 503,116 | [1] | 584,482 | 426,953 | 498,247 | ||
Total current liabilities | 871,190 | 838,784 | 523,322 | 731,355 | |||
Long-term debt, less current portion | 996,999 | 1,006,687 | 1,035,778 | 698,152 | |||
Deferred tax liabilities | 7,083 | [3] | 6,747 | 1,815 | 2,415 | ||
Other liabilities | 155,858 | [1] | 168,609 | 165,561 | 162,790 | ||
Total liabilities | 2,031,130 | 2,020,827 | 1,726,476 | 1,594,712 | |||
Redeemable non-controlling interest | 4,750 | 3,610 | 4,520 | ||||
Shareholders' equity | |||||||
Common stock | 1,903 | 1,924 | 1,924 | 1,984 | |||
Additional paid-in capital | 1,422,897 | 1,421,368 | 1,347,265 | 1,384,468 | |||
Retained earnings | 321,916 | [3] | 355,982 | 219,776 | 358,121 | ||
Accumulated other comprehensive income (loss) | (380,719) | (355,230) | (387,321) | (457,925) | |||
Total equity | 1,365,997 | 1,424,044 | 1,181,644 | 1,286,648 | |||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | 3,397,127 | 3,449,621 | 2,911,730 | 2,885,880 | |||
Eliminations | |||||||
Current assets | |||||||
Accounts receivable intercompany, net | (76,871) | (82,935) | (47,230) | (55,618) | |||
Intercompany loans | (1,934,735) | (1,815,391) | (2,222,706) | (1,666,832) | |||
Intercompany other receivable | (191,264) | (197,163) | (165,668) | (157,343) | |||
Total current assets | (2,202,870) | (2,095,489) | (2,435,604) | (1,879,793) | |||
Intercompany loans | (500,000) | (500,000) | (500,000) | (500,000) | |||
Investment in subsidiaries | (3,927,995) | (3,819,975) | (4,159,103) | (3,899,606) | |||
Investment in debentures, intercompany | (704,549) | (717,909) | (707,910) | (675,180) | |||
Intercompany other receivable | (61,503) | (49,761) | (36,030) | (47,954) | |||
Total assets | (7,396,917) | (7,183,134) | (7,838,647) | (7,002,533) | |||
Current liabilities | |||||||
Intercompany loans | (1,934,736) | (1,815,391) | (2,222,706) | (1,666,832) | |||
Intercompany accounts payable | (76,871) | (82,935) | (47,230) | (55,618) | |||
Intercompany other payable | (191,264) | (197,163) | (165,668) | (157,343) | |||
Total current liabilities | (2,202,871) | (2,095,489) | (2,435,604) | (1,879,793) | |||
Intercompany other payable | (61,503) | (49,761) | (36,030) | (47,954) | |||
Non-current intercompany loans payable | (1,204,549) | (1,217,909) | (1,207,910) | (1,175,180) | |||
Total liabilities | (3,468,923) | (3,363,159) | (3,679,544) | (3,102,927) | |||
Shareholders' equity | |||||||
Common stock | (189,677) | (189,677) | (189,677) | (189,677) | |||
Additional paid-in capital | (1,685,067) | (1,683,231) | (2,320,312) | (2,318,456) | |||
Retained earnings | (2,456,077) | (2,409,059) | (2,064,766) | (1,908,424) | |||
Accumulated other comprehensive income (loss) | 402,827 | 461,992 | 415,652 | 516,951 | |||
Total equity | (3,927,994) | (3,819,975) | (4,159,103) | (3,899,606) | |||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | (7,396,917) | (7,183,134) | (7,838,647) | (7,002,533) | |||
Issuer/Subsidiary | |||||||
Current assets | |||||||
Cash and cash equivalents | 8,562 | 4,507 | 5,839 | 11,215 | 916 | 27,733 | |
Accounts receivable intercompany, net | 76,871 | 82,935 | 47,230 | 55,618 | |||
Intercompany loans | 219,199 | 194,854 | 773,171 | 396,682 | |||
Intercompany other receivable | 8,675 | 25,343 | 12,208 | 26,985 | |||
Prepaid expenses and other current assets | 355 | 311 | 189 | 151 | |||
Total current assets | 313,662 | 307,950 | 838,637 | 490,651 | |||
Property, plant and equipment, net | 352 | 391 | 508 | 547 | |||
Investment in subsidiaries | 445,319 | 426,410 | 457,607 | 423,530 | |||
Investment in equity affiliates | 4,121 | ||||||
Investment in debentures, intercompany | 704,549 | 717,909 | 707,910 | 675,180 | |||
Total assets | 1,463,882 | 1,452,660 | 2,004,662 | 1,594,029 | |||
Current liabilities | |||||||
Intercompany loans | 22,000 | 38,000 | 43,385 | 73,000 | |||
Accounts payable | 166 | 103 | 60 | 168 | |||
Income taxes payable | (972) | 885 | (210) | 777 | |||
Intercompany other payable | 31,433 | 29,526 | 2,622 | 2,612 | |||
Accrued expenses and other current liabilities | 3,011 | 5,995 | 7,356 | 7,148 | |||
Total current liabilities | 55,638 | 74,509 | 53,213 | 83,705 | |||
Long-term debt, less current portion | 347,890 | 347,761 | 347,432 | ||||
Deferred tax liabilities | 231 | 231 | |||||
Non-current intercompany loans payable | 500,000 | 500,000 | 500,000 | 500,000 | |||
Other liabilities | 1,276 | 1,211 | 3,002 | 4,697 | |||
Total liabilities | 904,804 | 923,481 | 903,878 | 588,633 | |||
Shareholders' equity | |||||||
Common stock | 28 | 28 | 28 | 28 | |||
Additional paid-in capital | 575,863 | 575,862 | 1,211,108 | 1,211,108 | |||
Retained earnings | 37,439 | (12,277) | (53,239) | (85,093) | |||
Accumulated other comprehensive income (loss) | (54,252) | (34,434) | (57,113) | (120,647) | |||
Total equity | 559,078 | 529,179 | 1,100,784 | 1,005,396 | |||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | 1,463,882 | 1,452,660 | 2,004,662 | 1,594,029 | |||
Parent/Guarantor | |||||||
Current assets | |||||||
Cash and cash equivalents | 11,206 | 2,136 | 5,494 | 7,849 | 7,277 | 6,927 | |
Intercompany other receivable | 79,296 | 82,631 | 86,632 | 72,883 | |||
Prepaid expenses and other current assets | 2,609 | 1,276 | 514 | 131 | |||
Total current assets | 93,111 | 86,043 | 92,640 | 80,863 | |||
Investment in subsidiaries | 2,923,598 | 2,864,386 | 2,600,712 | 2,470,680 | |||
Intercompany other receivable | 61,503 | 49,761 | 36,030 | 47,954 | |||
Total assets | 3,078,212 | 3,000,190 | 2,729,382 | 2,599,497 | |||
Current liabilities | |||||||
Intercompany loans | 1,716,537 | 1,597,537 | 1,556,150 | 1,333,650 | |||
Accounts payable | 58 | 31 | 1 | ||||
Income taxes payable | (377) | ||||||
Intercompany other payable | 75,492 | 59,266 | 71,762 | 58,440 | |||
Accrued expenses and other current liabilities | 2,655 | 2,390 | 2,749 | 3,695 | |||
Total current liabilities | 1,794,307 | 1,659,251 | 1,630,692 | 1,395,786 | |||
Other liabilities | 153 | 292 | 307 | ||||
Total liabilities | 1,794,307 | 1,659,404 | 1,630,984 | 1,396,093 | |||
Shareholders' equity | |||||||
Common stock | 1,903 | 1,924 | 1,924 | 1,984 | |||
Additional paid-in capital | 1,424,048 | 1,421,354 | 1,347,262 | 1,384,468 | |||
Retained earnings | 238,673 | 272,738 | 136,533 | 274,877 | |||
Accumulated other comprehensive income (loss) | (380,719) | (355,230) | (387,321) | (457,925) | |||
Total equity | 1,283,905 | 1,340,786 | 1,098,398 | 1,203,404 | |||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | 3,078,212 | 3,000,190 | 2,729,382 | 2,599,497 | |||
Non-Guarantor Subsidiaries | |||||||
Current assets | |||||||
Cash and cash equivalents | 404,458 | 497,825 | 376,853 | 403,559 | $ 442,714 | $ 427,128 | |
Accounts receivable, net | 703,066 | 693,085 | 602,871 | 615,265 | |||
Intercompany loans | 1,715,536 | 1,620,537 | 1,449,535 | 1,270,150 | |||
Intercompany other receivable | 103,293 | 89,189 | 66,828 | 57,475 | |||
Prepaid expenses and other current assets | 196,244 | 234,755 | 226,932 | 188,867 | |||
Total current assets | 3,122,597 | 3,135,391 | 2,723,019 | 2,535,316 | |||
Property, plant and equipment, net | 204,683 | 206,639 | 212,054 | 192,671 | |||
Intercompany loans | 500,000 | 500,000 | 500,000 | 500,000 | |||
Deferred tax assets | 81,734 | 76,929 | 61,029 | 70,143 | |||
Investment in subsidiaries | 559,078 | 529,179 | 1,100,784 | 1,005,396 | |||
Investment in equity affiliates | 919 | 886 | 769 | 679 | |||
Intangible assets, net | 125,781 | 131,590 | 69,070 | 78,946 | |||
Goodwill | 1,337,051 | 1,337,122 | 1,097,329 | 1,069,408 | |||
Contract cost assets | 162,435 | ||||||
Other assets | 157,672 | 262,169 | 252,279 | 242,328 | |||
Total assets | 6,251,950 | 6,179,905 | 6,016,333 | 5,694,887 | |||
Current liabilities | |||||||
Short-term borrowings | 275,000 | 170,000 | 15,000 | 160,000 | |||
Intercompany loans | 196,199 | 179,854 | 623,171 | 260,182 | |||
Current portion of long-term debt | 39,237 | 39,226 | 39,192 | 39,181 | |||
Accounts payable | 13,645 | 14,889 | 8,995 | 9,599 | |||
Intercompany accounts payable | 76,871 | 82,935 | 47,230 | 55,618 | |||
Income taxes payable | 41,375 | 29,141 | 33,301 | 23,382 | |||
Intercompany other payable | 84,339 | 108,371 | 91,284 | 96,291 | |||
Accrued expenses and other current liabilities | 497,450 | 576,097 | 416,848 | 487,404 | |||
Total current liabilities | 1,224,116 | 1,200,513 | 1,275,021 | 1,131,657 | |||
Long-term debt, less current portion | 649,109 | 658,926 | 688,346 | 698,152 | |||
Deferred tax liabilities | 7,083 | 6,747 | 1,584 | 2,184 | |||
Intercompany other payable | 61,503 | 49,761 | 36,030 | 47,954 | |||
Non-current intercompany loans payable | 704,549 | 717,909 | 707,910 | 675,180 | |||
Other liabilities | 154,582 | 167,245 | 162,267 | 157,786 | |||
Total liabilities | 2,800,942 | 2,801,101 | 2,871,158 | 2,712,913 | |||
Redeemable non-controlling interest | 4,750 | 3,610 | 4,520 | ||||
Shareholders' equity | |||||||
Common stock | 189,649 | 189,649 | 189,649 | 189,649 | |||
Additional paid-in capital | 1,108,053 | 1,107,383 | 1,109,207 | 1,107,348 | |||
Retained earnings | 2,501,881 | 2,504,580 | 2,201,248 | 2,076,761 | |||
Accumulated other comprehensive income (loss) | (348,575) | (427,558) | (358,539) | (396,304) | |||
Total equity | 3,451,008 | 3,374,054 | 3,141,565 | 2,977,454 | |||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | $ 6,251,950 | $ 6,179,905 | $ 6,016,333 | $ 5,694,887 | |||
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | ||||||
[2] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. | ||||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in an increase of $23,227 in the contract cost asset related to sales incentive programs (excluding the effect of the current period – refer to note d to the table below) as of January 1, 2018 with a corresponding impact of $17,924 on retained earnings (excluding the effect of the current period – refer to note d to the table below) and on deferred tax liability of $5,303. |
Guarantor Financial Informat161
Guarantor Financial Information - Condensed Consolidating Statement of Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net revenues | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 2,736,929 | $ 2,570,756 | $ 2,461,044 | |
Cost of revenue | 444,324 | 383,337 | 1,683,704 | 1,554,707 | 1,493,547 | ||||||||
Gross profit | 244,588 | 278,530 | 279,633 | 255,404 | 239,658 | 276,075 | 256,351 | 246,768 | 236,855 | 1,053,225 | 1,016,049 | 967,497 | |
Operating expenses: | |||||||||||||
Selling, general and administrative expenses | 171,109 | [1] | 160,858 | 689,847 | 653,029 | 608,114 | |||||||
Amortization of acquired intangible assets | 9,936 | 7,242 | 36,412 | 27,183 | 28,513 | ||||||||
Other operating (income) expense, net | (218) | (7,538) | (1,661) | (4,940) | (3,322) | ||||||||
Income from operations | 63,761 | 72,049 | 97,451 | 80,031 | 79,096 | 98,092 | 87,124 | 79,940 | 75,622 | 328,627 | 340,777 | 334,192 | |
Foreign exchange gains (losses), net | 4,798 | (4,913) | 1,996 | 2,630 | 5,269 | ||||||||
Interest income (expense), net | (8,100) | (5,493) | (31,735) | (16,184) | (31,267) | ||||||||
Other income (expense), net | 15,550 | 553 | 26,238 | 10,120 | 4,360 | ||||||||
Income before equity-method investment activity, net and income tax expense | 76,009 | 81,559 | 89,742 | 84,582 | 69,243 | 95,502 | 87,360 | 81,818 | 72,664 | 325,126 | 337,343 | 312,554 | |
Gain (loss) on equity-method investment activity, net | (4,558) | (4,543) | (7,698) | (10,800) | |||||||||
Income before income tax expense | 76,009 | 64,685 | 320,583 | 329,645 | 301,754 | ||||||||
Income tax expense | 12,075 | 12,245 | 59,742 | 62,098 | 61,937 | ||||||||
Net income | 63,934 | [2] | 66,138 | 73,161 | 69,102 | 52,440 | 76,066 | 68,188 | 64,788 | 58,505 | 260,841 | 267,547 | 239,817 |
Net loss attributable to redeemable non-controlling interest | (761) | (944) | (584) | 156 | (898) | (232) | (734) | (882) | (289) | (2,270) | (2,137) | ||
Net income attributable to Genpact Limited shareholders | 64,695 | [2] | $ 67,082 | $ 73,745 | $ 68,946 | 53,338 | $ 76,298 | $ 68,922 | $ 65,670 | $ 58,794 | 263,111 | 269,684 | 239,817 |
Eliminations | |||||||||||||
Net revenues | (9,476) | (7,562) | (46,722) | (39,518) | (34,250) | ||||||||
Gross profit | (9,476) | (7,562) | (46,722) | (39,518) | (34,250) | ||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative expenses | (9,542) | (7,566) | (69,619) | (41,984) | (34,250) | ||||||||
Other operating (income) expense, net | (22,268) | ||||||||||||
Income from operations | 66 | 4 | 22,897 | 2,466 | 22,268 | ||||||||
Income before equity-method investment activity, net and income tax expense | 66 | 4 | 22,897 | 2,466 | 22,268 | ||||||||
Gain (loss) on equity-method investment activity, net | (110,702) | (97,819) | (359,475) | (456,142) | (322,013) | ||||||||
Income before income tax expense | (110,636) | (97,815) | (336,578) | (453,676) | (299,745) | ||||||||
Net income | (110,636) | (97,815) | (336,578) | (453,676) | (299,745) | ||||||||
Net income attributable to Genpact Limited shareholders | (110,636) | (97,815) | (336,578) | (453,676) | (299,745) | ||||||||
Issuer/Subsidiary | |||||||||||||
Net revenues | 11,939 | 7,562 | 46,722 | 39,518 | 34,250 | ||||||||
Gross profit | 11,939 | 7,562 | 46,722 | 39,518 | 34,250 | ||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative expenses | 1,623 | 1,141 | 9,859 | 9,499 | 4,594 | ||||||||
Other operating (income) expense, net | 17 | (3,138) | (3,412) | (4,043) | 22,149 | ||||||||
Income from operations | 10,299 | 9,559 | 40,275 | 34,062 | 7,507 | ||||||||
Foreign exchange gains (losses), net | 953 | 1,616 | 3,312 | (1,633) | (3,574) | ||||||||
Interest income (expense), net | (3,489) | 17,937 | (11,375) | (1,358) | (531) | ||||||||
Intercompany interest income (expense), net | 20,543 | 2,246 | 47,547 | 81,359 | 42,417 | ||||||||
Other income (expense), net | 18,391 | (829) | |||||||||||
Income before equity-method investment activity, net and income tax expense | 28,306 | 31,358 | 98,150 | 111,601 | 45,819 | ||||||||
Gain (loss) on equity-method investment activity, net | 7,443 | 1,979 | (15,058) | 29,969 | 17,757 | ||||||||
Income before income tax expense | 35,749 | 33,337 | 83,092 | 141,570 | 63,576 | ||||||||
Income tax expense | 1,691 | 1,483 | 7,435 | 8,384 | 7,160 | ||||||||
Net income | 34,058 | 31,854 | 75,657 | 133,186 | 56,416 | ||||||||
Net income attributable to Genpact Limited shareholders | 34,058 | 31,854 | 75,657 | 133,186 | 56,416 | ||||||||
Parent/Guarantor | |||||||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative expenses | 1,492 | 3,789 | 21,076 | 12,772 | 21,298 | ||||||||
Other operating (income) expense, net | (500) | ||||||||||||
Income from operations | (1,492) | (3,789) | (21,076) | (12,272) | (21,298) | ||||||||
Foreign exchange gains (losses), net | 221 | (5) | 2 | 57 | (219) | ||||||||
Intercompany interest income (expense), net | (3,235) | (2,296) | (10,148) | 2,027 | |||||||||
Other income (expense), net | (3,390) | ||||||||||||
Income before equity-method investment activity, net and income tax expense | (4,506) | (6,090) | (31,222) | (15,605) | (19,490) | ||||||||
Gain (loss) on equity-method investment activity, net | 69,201 | 59,428 | 294,333 | 285,289 | 237,040 | ||||||||
Income before income tax expense | 64,695 | 53,338 | 263,111 | 269,684 | 217,550 | ||||||||
Net income | 64,695 | 53,338 | 263,111 | 269,684 | 217,550 | ||||||||
Net income attributable to Genpact Limited shareholders | 64,695 | 53,338 | 263,111 | 269,684 | 217,550 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||||
Net revenues | 686,449 | 622,995 | 2,736,929 | 2,570,756 | 2,461,044 | ||||||||
Cost of revenue | 444,324 | 383,337 | 1,683,704 | 1,554,707 | 1,493,547 | ||||||||
Gross profit | 242,125 | 239,658 | 1,053,225 | 1,016,049 | 967,497 | ||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative expenses | 177,536 | 163,494 | 728,531 | 672,742 | 616,472 | ||||||||
Amortization of acquired intangible assets | 9,936 | 7,242 | 36,412 | 27,183 | 28,513 | ||||||||
Other operating (income) expense, net | (235) | (4,400) | 1,751 | (397) | (3,203) | ||||||||
Income from operations | 54,888 | 73,322 | 286,531 | 316,521 | 325,715 | ||||||||
Foreign exchange gains (losses), net | 3,624 | (6,524) | (1,318) | 4,206 | 9,062 | ||||||||
Interest income (expense), net | (4,611) | (23,430) | (20,360) | (14,826) | (30,736) | ||||||||
Intercompany interest income (expense), net | (17,308) | 50 | (37,399) | (81,359) | (44,444) | ||||||||
Other income (expense), net | 15,550 | 553 | 7,847 | 14,339 | 4,360 | ||||||||
Income before equity-method investment activity, net and income tax expense | 52,143 | 43,971 | 235,301 | 238,881 | 263,957 | ||||||||
Gain (loss) on equity-method investment activity, net | 34,058 | 31,854 | 75,657 | 133,186 | 56,416 | ||||||||
Income before income tax expense | 86,201 | 75,825 | 310,958 | 372,067 | 320,373 | ||||||||
Income tax expense | 10,384 | 10,762 | 52,307 | 53,714 | 54,777 | ||||||||
Net income | 75,817 | 65,063 | 258,651 | 318,353 | 265,596 | ||||||||
Net loss attributable to redeemable non-controlling interest | (761) | (898) | (2,270) | (2,137) | |||||||||
Net income attributable to Genpact Limited shareholders | $ 76,578 | $ 65,961 | $ 260,921 | $ 320,490 | $ 265,596 | ||||||||
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. | ||||||||||||
[2] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Guarantor Financial Informat162
Guarantor Financial Information - Condensed Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net income (loss) | $ 63,934 | [1] | $ 66,138 | $ 73,161 | $ 69,102 | $ 52,440 | $ 76,066 | $ 68,188 | $ 64,788 | $ 58,505 | $ 260,841 | $ 267,547 | $ 239,817 |
Other comprehensive income (loss): | |||||||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (18,932) | 18,858 | 12,611 | 43,742 | 22,880 | ||||||||
Retirement benefits, net of taxes | 3,787 | ||||||||||||
Other comprehensive income (loss) | (38,801) | ||||||||||||
Genpact Limited Shareholders | |||||||||||||
Net income (loss) | 64,695 | 53,338 | 263,111 | 269,684 | 239,817 | ||||||||
Other comprehensive income (loss): | |||||||||||||
Currency translation adjustments | (9,335) | 51,627 | 93,871 | (46,340) | (64,504) | ||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (18,932) | 18,858 | 12,611 | 43,742 | 22,880 | ||||||||
Retirement benefits, net of taxes | 513 | 119 | (3,787) | (4,042) | 2,823 | ||||||||
Other comprehensive income (loss) | (27,754) | 70,604 | 102,695 | (6,640) | (38,801) | ||||||||
Comprehensive income (loss) | 36,941 | 123,942 | 365,806 | 263,044 | 201,016 | ||||||||
Redeemable non-controlling interest | |||||||||||||
Net income (loss) | (761) | (898) | (2,270) | (2,137) | |||||||||
Other comprehensive income (loss): | |||||||||||||
Currency translation adjustments | (424) | (12) | (341) | 104 | |||||||||
Other comprehensive income (loss) | (424) | (12) | (341) | 104 | |||||||||
Comprehensive income (loss) | (1,185) | (910) | (2,611) | (2,033) | |||||||||
Eliminations | |||||||||||||
Net income (loss) | (110,636) | (97,815) | (336,578) | (453,676) | (299,745) | ||||||||
Eliminations | Genpact Limited Shareholders | |||||||||||||
Net income (loss) | (110,636) | (97,815) | (336,578) | (453,676) | (299,745) | ||||||||
Other comprehensive income (loss): | |||||||||||||
Currency translation adjustments | 15,688 | (95,173) | (168,587) | 78,019 | 131,677 | ||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 34,613 | (39,265) | (22,399) | (85,758) | (50,127) | ||||||||
Retirement benefits, net of taxes | (593) | (189) | 3,312 | 4,759 | (3,377) | ||||||||
Other comprehensive income (loss) | 49,708 | (134,627) | (187,674) | (2,980) | 78,173 | ||||||||
Comprehensive income (loss) | (60,928) | (232,442) | (524,252) | (456,656) | (221,572) | ||||||||
Issuer/Subsidiary | |||||||||||||
Net income (loss) | 34,058 | 31,854 | 75,657 | 133,186 | 56,416 | ||||||||
Issuer/Subsidiary | Genpact Limited Shareholders | |||||||||||||
Net income (loss) | 34,058 | 31,854 | 75,657 | 133,186 | 56,416 | ||||||||
Other comprehensive income (loss): | |||||||||||||
Currency translation adjustments | (6,353) | 43,546 | 74,716 | (31,679) | (67,173) | ||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (15,681) | 20,407 | 9,788 | 42,016 | 27,247 | ||||||||
Retirement benefits, net of taxes | 80 | 70 | 475 | (717) | 554 | ||||||||
Other comprehensive income (loss) | (21,954) | 64,023 | 84,979 | 9,620 | (39,372) | ||||||||
Comprehensive income (loss) | 12,104 | 95,877 | 160,636 | 142,806 | 17,044 | ||||||||
Parent/Guarantor | |||||||||||||
Net income (loss) | 64,695 | 53,338 | 263,111 | 269,684 | 217,550 | ||||||||
Parent/Guarantor | Genpact Limited Shareholders | |||||||||||||
Net income (loss) | 64,695 | 53,338 | 263,111 | 269,684 | 217,550 | ||||||||
Other comprehensive income (loss): | |||||||||||||
Currency translation adjustments | (9,335) | 51,627 | 93,871 | (46,340) | (64,504) | ||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (18,932) | 18,858 | 12,611 | 43,742 | 22,880 | ||||||||
Retirement benefits, net of taxes | 513 | 119 | (3,787) | (4,042) | 2,823 | ||||||||
Other comprehensive income (loss) | (27,754) | 70,604 | 102,695 | (6,640) | (38,801) | ||||||||
Comprehensive income (loss) | 36,941 | 123,942 | 365,806 | 263,044 | 178,749 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||||
Net income (loss) | 75,817 | 65,063 | 258,651 | 318,353 | 265,596 | ||||||||
Non-Guarantor Subsidiaries | Genpact Limited Shareholders | |||||||||||||
Net income (loss) | 76,578 | 65,961 | 260,921 | 320,490 | 265,596 | ||||||||
Other comprehensive income (loss): | |||||||||||||
Currency translation adjustments | (9,335) | 51,627 | 93,871 | (46,340) | (64,504) | ||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (18,932) | 18,858 | 12,611 | 43,742 | 22,880 | ||||||||
Retirement benefits, net of taxes | 513 | 119 | (3,787) | (4,042) | 2,823 | ||||||||
Other comprehensive income (loss) | (27,754) | 70,604 | 102,695 | (6,640) | (38,801) | ||||||||
Comprehensive income (loss) | $ 48,824 | $ 136,565 | $ 363,616 | $ 313,850 | $ 226,795 | ||||||||
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Guarantor Financial Informat163
Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||||
Net cash (used for) provided by operating activities | $ (27,322) | $ 31,028 | $ 359,078 | $ 345,772 | $ 327,441 |
Investing activities | |||||
Purchase of property, plant and equipment | (18,706) | (17,084) | (57,231) | (81,926) | (62,173) |
Payment for internally generated intangible assets | (4,365) | (2,614) | (16,441) | (6,846) | |
Proceeds from sale of property, plant and equipment | 144 | 389 | 1,738 | 547 | 1,486 |
Investment in equity affiliates | (467) | (496) | (9,620) | (18,423) | |
Payment for business acquisitions, net of cash acquired | (9,237) | (284,822) | (45,162) | (21,363) | |
Proceeds from divestiture of business, net of cash divested | (4,738) | 17,242 | |||
Payment for purchase of redeemable non-controlling interest | (4,730) | ||||
Net cash used for investing activities | (27,657) | (29,013) | (361,990) | (125,765) | (100,473) |
Financing activities | |||||
Repayment of capital lease obligations | (537) | (494) | (2,708) | (1,793) | (2,035) |
Payment of debt issuance and refinancing costs | (1,481) | (2,630) | (6,584) | ||
Proceeds from long-term debt | 350,000 | 350,000 | 800,000 | ||
Repayment of long-term debt | (10,000) | (10,000) | (40,000) | (40,000) | (684,875) |
Proceeds from short-term borrowings | 105,000 | 40,000 | 295,000 | 200,000 | 1,451,500 |
Repayment of short-term borrowings | (185,000) | (285,000) | (61,500) | (1,565,000) | |
Proceeds from issuance of common shares under stock-based compensation plans | 4,202 | 7,761 | 15,528 | 18,228 | 16,088 |
Payment for net settlement of stock-based awards | (13,284) | (9,939) | (10,296) | (769) | (7,194) |
Payment of earn-out/deferred consideration | (1,476) | (1,097) | (6,219) | (1,485) | (230) |
Dividend paid | (14,408) | (11,957) | (46,686) | ||
Payment for stock purchased and retired | (95,984) | (219,784) | (219,784) | (345,200) | (226,917) |
Payment for expenses related to stock purchase | (60) | (16) | (16) | (279) | (197) |
Excess tax benefit on stock-based compensation | 6,560 | ||||
Net cash (used for) provided by financing activities | (26,547) | (42,007) | 47,189 | (232,798) | (218,884) |
Effect of exchange rate changes | 1,284 | 5,555 | 37,568 | (15,493) | (18,965) |
Net increase (decrease) in cash and cash equivalents | (81,526) | (39,992) | 44,277 | (12,791) | 8,084 |
Cash and cash equivalents at the beginning of the period | 504,468 | 422,623 | 422,623 | 450,907 | 461,788 |
Cash and cash equivalents at the end of the period | 424,226 | 388,186 | 504,468 | 422,623 | 450,907 |
Issuer/Subsidiary | |||||
Operating activities | |||||
Net cash (used for) provided by operating activities | 22,190 | (314,439) | (315,877) | (42,212) | (9,868) |
Investing activities | |||||
Purchase of property, plant and equipment | (625) | ||||
Investment in equity affiliates | (9,841) | (523) | (5,884) | (6,084) | |
Investment in subsidiaries | (2,000) | (3,638) | (53,619) | (21,670) | |
Payment for investment in debentures, intercompany | (736,692) | ||||
Net cash used for investing activities | (2,000) | (9,841) | (4,161) | (60,128) | (764,446) |
Financing activities | |||||
Payment of debt issuance and refinancing costs | (1,481) | (2,630) | |||
Proceeds from long-term debt | 350,000 | 350,000 | |||
Proceeds from short-term borrowings | 130 | ||||
Proceeds from intercompany loans | 73,000 | ||||
Repayment of intercompany loans | (16,000) | (29,615) | (35,000) | ||
Proceeds from Issuance of Common Stock | 40,000 | 747,656 | |||
Net cash (used for) provided by financing activities | (15,870) | 318,904 | 312,370 | 113,000 | 747,656 |
Effect of exchange rate changes | (265) | 960 | (361) | (159) | |
Net increase (decrease) in cash and cash equivalents | 4,320 | (5,376) | (7,668) | 10,660 | (26,658) |
Cash and cash equivalents at the beginning of the period | 4,507 | 11,215 | 11,215 | 916 | 27,733 |
Cash and cash equivalents at the end of the period | 8,562 | 5,839 | 4,507 | 11,215 | 916 |
Parent/Guarantor | |||||
Operating activities | |||||
Net cash (used for) provided by operating activities | 9,604 | 9,080 | (8,345) | 25,592 | 183,510 |
Financing activities | |||||
Proceeds from intercompany loans | 119,000 | 222,500 | 263,886 | 303,000 | 28,500 |
Proceeds from issuance of common shares under stock-based compensation plans | 4,202 | 7,761 | 15,528 | 18,228 | 16,088 |
Payment for net settlement of stock-based awards | (13,284) | (9,939) | (10,296) | (769) | (7,194) |
Dividend paid | (14,408) | (11,957) | (46,686) | ||
Payment for stock purchased and retired | (95,984) | (219,784) | (219,784) | (345,200) | (226,917) |
Payment for expenses related to stock purchase | (60) | (16) | (16) | (279) | (197) |
Excess tax benefit on stock-based compensation | 6,560 | ||||
Net cash (used for) provided by financing activities | (534) | (11,435) | 2,632 | (25,020) | (183,160) |
Net increase (decrease) in cash and cash equivalents | 9,070 | (2,355) | (5,713) | 572 | 350 |
Cash and cash equivalents at the beginning of the period | 2,136 | 7,849 | 7,849 | 7,277 | 6,927 |
Cash and cash equivalents at the end of the period | 11,206 | 5,494 | 2,136 | 7,849 | 7,277 |
Non-Guarantor Subsidiaries | |||||
Operating activities | |||||
Net cash (used for) provided by operating activities | (162,656) | (222,607) | 511,847 | (66,519) | 347,114 |
Investing activities | |||||
Purchase of property, plant and equipment | (18,706) | (17,084) | (57,231) | (81,301) | (62,173) |
Payment for internally generated intangible assets | (4,365) | (2,614) | (16,441) | (6,846) | |
Proceeds from sale of property, plant and equipment | 144 | 389 | 1,738 | 547 | 1,486 |
Investment in equity affiliates | 9,374 | 27 | (3,736) | (12,339) | |
Investment in subsidiaries | 2,066 | 4 | 51,127 | (8,101) | (687,455) |
Payment for business acquisitions, net of cash acquired | (9,237) | (284,822) | (45,162) | (21,363) | |
Proceeds from divestiture of business, net of cash divested | (4,738) | 17,242 | |||
Payment for purchase of redeemable non-controlling interest | (4,730) | ||||
Net cash used for investing activities | (25,591) | (19,168) | (310,340) | (127,357) | (781,844) |
Financing activities | |||||
Repayment of capital lease obligations | (537) | (494) | (2,708) | (1,793) | (2,035) |
Payment of debt issuance and refinancing costs | (6,584) | ||||
Proceeds from long-term debt | 800,000 | ||||
Repayment of long-term debt | (10,000) | (10,000) | (40,000) | (40,000) | (684,875) |
Proceeds from short-term borrowings | 105,000 | 40,000 | 295,000 | 200,000 | 1,451,500 |
Repayment of short-term borrowings | (185,000) | (285,000) | (61,500) | (1,565,000) | |
Proceeds from intercompany loans | 344 | 366,105 | 50,445 | ||
Repayment of intercompany loans | (80,328) | (228,375) | |||
Proceeds from Issuance of Common Stock | (6,556) | ||||
Payment of earn-out/deferred consideration | (1,476) | (1,097) | (6,219) | (1,485) | (230) |
Proceeds from issuance of debentures, intercompany | 736,692 | ||||
Payment for stock purchased and retired | 24,186 | ||||
Payment for expenses related to stock purchase | (31,975) | ||||
Change in amounts due from/to consolidated affiliates | (24,594) | ||||
Excess tax benefit on stock-based compensation | 6,560 | ||||
Net cash (used for) provided by financing activities | 93,331 | 209,514 | (143,849) | 169,853 | 469,122 |
Effect of exchange rate changes | 1,549 | 5,555 | 36,608 | (15,132) | (18,806) |
Net increase (decrease) in cash and cash equivalents | (94,916) | (32,261) | 57,658 | (24,023) | 34,392 |
Cash and cash equivalents at the beginning of the period | 497,825 | 403,559 | 403,559 | 442,714 | 427,128 |
Cash and cash equivalents at the end of the period | 404,458 | 376,853 | 497,825 | 403,559 | 442,714 |
Eliminations | |||||
Operating activities | |||||
Net cash (used for) provided by operating activities | 103,540 | 558,994 | 171,453 | 428,911 | (193,315) |
Investing activities | |||||
Investment in subsidiaries | (66) | (4) | (47,489) | 61,720 | 709,125 |
Payment for investment in debentures, intercompany | 736,692 | ||||
Net cash used for investing activities | (66) | (4) | (47,489) | 61,720 | 1,445,817 |
Financing activities | |||||
Proceeds from short-term borrowings | (130) | ||||
Proceeds from intercompany loans | (119,344) | (588,605) | (263,886) | (426,445) | (28,500) |
Repayment of intercompany loans | 16,000 | 29,615 | 115,328 | 228,375 | |
Proceeds from Issuance of Common Stock | (40,000) | (741,100) | |||
Proceeds from issuance of debentures, intercompany | (736,692) | ||||
Payment for stock purchased and retired | (24,186) | ||||
Payment for expenses related to stock purchase | 31,975 | ||||
Change in amounts due from/to consolidated affiliates | 24,594 | ||||
Excess tax benefit on stock-based compensation | (6,560) | ||||
Net cash (used for) provided by financing activities | $ (103,474) | $ (558,990) | $ (123,964) | $ (490,631) | $ (1,252,502) |
Summary of Significant Accou164
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 on Consolidated Balance Sheet (Detail) - USD ($) | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Current assets | |||||||||
Cash and cash equivalents | $ 424,226,000 | $ 504,468,000 | $ 388,186,000 | $ 422,623,000 | $ 450,907,000 | $ 461,788,000 | |||
Accounts receivable, net | 703,066,000 | 693,085,000 | 602,871,000 | 615,265,000 | |||||
Prepaid expenses and other current assets | 199,208,000 | [1],[2] | 236,342,000 | 227,635,000 | 189,149,000 | ||||
Total current assets | 1,326,500,000 | 1,433,895,000 | 1,218,692,000 | 1,227,037,000 | |||||
Property, plant and equipment, net | 205,035,000 | 207,030,000 | 212,562,000 | 193,218,000 | |||||
Deferred tax assets | 81,734,000 | 76,929,000 | 61,029,000 | 70,143,000 | |||||
Investment in equity affiliates | 919,000 | 886,000 | 769,000 | 4,800,000 | |||||
Intangible assets, net | 125,781,000 | 131,590,000 | 69,070,000 | 78,946,000 | |||||
Goodwill | 1,337,051,000 | 1,337,122,000 | 1,097,329,000 | 1,069,408,000 | $ 1,038,346,000 | ||||
Contract cost assets | [2],[3] | 162,435,000 | |||||||
Other assets | 157,672,000 | [1],[2] | 262,169,000 | 252,279,000 | 242,328,000 | ||||
Total assets | 3,397,127,000 | 3,449,621,000 | 2,911,730,000 | 2,885,880,000 | |||||
Current liabilities | |||||||||
Short-term borrowings | 275,000,000 | 170,000,000 | 15,000,000 | 160,000,000 | |||||
Current portion of long-term debt | 39,237,000 | 39,226,000 | 39,192,000 | 39,181,000 | |||||
Accounts payable | 13,811,000 | 15,050,000 | 9,086,000 | 9,768,000 | |||||
Income taxes payable | 40,026,000 | 30,026,000 | 33,091,000 | 24,159,000 | |||||
Accrued expenses and other current liabilities | 503,116,000 | [1] | 584,482,000 | 426,953,000 | 498,247,000 | ||||
Total current liabilities | 871,190,000 | 838,784,000 | 523,322,000 | 731,355,000 | |||||
Long-term debt, less current portion | 996,999,000 | 1,006,687,000 | 1,035,778,000 | 698,152,000 | |||||
Deferred tax liabilities | 7,083,000 | [3] | 6,747,000 | 1,815,000 | 2,415,000 | ||||
Other liabilities | 155,858,000 | [1] | 168,609,000 | 165,561,000 | 162,790,000 | ||||
Total liabilities | 2,031,130,000 | 2,020,827,000 | 1,726,476,000 | 1,594,712,000 | |||||
Redeemable non-controlling interest | 4,750,000 | 3,610,000 | 4,520,000 | ||||||
Shareholders' equity | |||||||||
Preferred shares, value | |||||||||
Common shares, value | 1,903,000 | 1,924,000 | 1,924,000 | 1,984,000 | |||||
Additional paid-in capital | 1,422,897,000 | 1,421,368,000 | 1,347,265,000 | 1,384,468,000 | |||||
Retained earnings | 321,916,000 | [3] | 355,982,000 | 219,776,000 | 358,121,000 | ||||
Accumulated other comprehensive income (loss) | (380,719,000) | (355,230,000) | (387,321,000) | (457,925,000) | |||||
Total equity | 1,365,997,000 | 1,424,044,000 | 1,181,644,000 | 1,286,648,000 | |||||
Commitments and contingencies | |||||||||
Total liabilities, redeemable non-controlling interest and equity | 3,397,127,000 | 3,449,621,000 | $ 2,911,730,000 | $ 2,885,880,000 | |||||
ASU 2014-09 | Adjustments | |||||||||
Current assets | |||||||||
Prepaid expenses and other current assets | [1],[2] | 74,092,000 | |||||||
Total current assets | 74,092,000 | ||||||||
Contract cost assets | (162,435,000) | [2],[3] | $ 23,227,000 | ||||||
Other assets | [1],[2] | 89,499,000 | |||||||
Total assets | 1,156,000 | ||||||||
Current liabilities | |||||||||
Accrued expenses and other current liabilities | [1] | 8,429,000 | |||||||
Total current liabilities | 8,429,000 | ||||||||
Deferred tax liabilities | (5,303,000) | [3] | 5,303,000 | ||||||
Other liabilities | [1] | 15,998,000 | |||||||
Total liabilities | 19,124,000 | ||||||||
Shareholders' equity | |||||||||
Preferred shares, value | |||||||||
Retained earnings | (17,968,000) | [3] | $ 17,924,000 | ||||||
Total equity | (17,968,000) | ||||||||
Commitments and contingencies | |||||||||
Total liabilities, redeemable non-controlling interest and equity | 1,156,000 | ||||||||
ASU 2014-09 | Balances without adoption of Topic 606 | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 424,226,000 | $ 504,468,000 | |||||||
Accounts receivable, net | 703,066,000 | ||||||||
Prepaid expenses and other current assets | [1],[2] | 273,300,000 | |||||||
Total current assets | 1,400,592,000 | ||||||||
Property, plant and equipment, net | 205,035,000 | ||||||||
Deferred tax assets | 81,734,000 | ||||||||
Investment in equity affiliates | 919,000 | ||||||||
Intangible assets, net | 125,781,000 | ||||||||
Goodwill | 1,337,051,000 | ||||||||
Other assets | [1],[2] | 247,171,000 | |||||||
Total assets | 3,398,283,000 | ||||||||
Current liabilities | |||||||||
Short-term borrowings | 275,000,000 | ||||||||
Current portion of long-term debt | 39,237,000 | ||||||||
Accounts payable | 13,811,000 | ||||||||
Income taxes payable | 40,026,000 | ||||||||
Accrued expenses and other current liabilities | [1] | 511,545,000 | |||||||
Total current liabilities | 879,619,000 | ||||||||
Long-term debt, less current portion | 996,999,000 | ||||||||
Deferred tax liabilities | [3] | 1,780,000 | |||||||
Other liabilities | [1] | 171,856,000 | |||||||
Total liabilities | 2,050,254,000 | ||||||||
Shareholders' equity | |||||||||
Preferred shares, value | |||||||||
Common shares, value | 1,903,000 | ||||||||
Additional paid-in capital | 1,422,897,000 | ||||||||
Retained earnings | [3] | 303,948,000 | |||||||
Accumulated other comprehensive income (loss) | (380,719,000) | ||||||||
Total equity | 1,348,029,000 | ||||||||
Commitments and contingencies | |||||||||
Total liabilities, redeemable non-controlling interest and equity | $ 3,398,283,000 | ||||||||
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | ||||||||
[2] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. | ||||||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in an increase of $23,227 in the contract cost asset related to sales incentive programs (excluding the effect of the current period – refer to note d to the table below) as of January 1, 2018 with a corresponding impact of $17,924 on retained earnings (excluding the effect of the current period – refer to note d to the table below) and on deferred tax liability of $5,303. |
Summary of Significant Accou165
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 of Consolidated Balance Sheet (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Revenue Recognition [Line Items] | |||||||
Preferred shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred shares, authorized | 250,000,000 | 250,000,000 | 250,000,000 | ||||
Preferred shares, issued | 0 | 0 | 0 | ||||
Common shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Common shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Common shares, issued | 190,613,135 | 192,825,207 | 198,794,052 | ||||
Common shares, outstanding | 190,613,135 | 192,825,207 | 198,794,052 | ||||
Impact on contract cost asset | [1],[2] | $ 162,435 | |||||
Prepaid expenses and other current assets | 199,208 | [1],[3] | $ 236,342 | $ 227,635 | $ 189,149 | ||
Other assets | 157,672 | [1],[3] | 262,169 | 252,279 | 242,328 | ||
Cumulative effect of adoption resulted increase in retained earning | 321,916 | [2] | 355,982 | 219,776 | 358,121 | ||
Impact on deferred tax liabilities | 7,083 | [2] | 6,747 | 1,815 | 2,415 | ||
Accrued expenses and other current liabilities | 503,116 | [3] | 584,482 | 426,953 | 498,247 | ||
Other liabilities | 155,858 | [3] | $ 168,609 | $ 165,561 | $ 162,790 | ||
Adjustments | ASU 2014-09 | |||||||
Revenue Recognition [Line Items] | |||||||
Impact on contract cost asset | (162,435) | [1],[2] | $ 23,227 | ||||
Prepaid expenses and other current assets | [1],[3] | 74,092 | |||||
Other assets | [1],[3] | 89,499 | |||||
Cumulative effect of adoption resulted increase in retained earning | (17,968) | [2] | 17,924 | ||||
Impact on deferred tax liabilities | (5,303) | [2] | 5,303 | ||||
Accrued expenses and other current liabilities | [3] | 8,429 | |||||
Other liabilities | [3] | 15,998 | |||||
Adjustments | ASU 2014-09 | Contract Assets | |||||||
Revenue Recognition [Line Items] | |||||||
Prepaid expenses and other current assets | (8,429) | ||||||
Other assets | (15,998) | ||||||
Adjustments | ASU 2014-09 | Contract Liabilities | |||||||
Revenue Recognition [Line Items] | |||||||
Accrued expenses and other current liabilities | (8,429) | ||||||
Other liabilities | (15,998) | ||||||
Adjustments | ASU 2014-09 | Process Transition Activities | |||||||
Revenue Recognition [Line Items] | |||||||
Impact on contract cost asset | 139,164 | ||||||
Prepaid expenses and other current assets | (65,663) | ||||||
Other assets | $ (73,501) | ||||||
Adjustments | ASU 2014-09 | Sales Incentive Programs | |||||||
Revenue Recognition [Line Items] | |||||||
Impact on contract cost asset | 23,227 | ||||||
Cumulative effect of adoption resulted increase in retained earning | 17,924 | ||||||
Impact on deferred tax liabilities | $ 5,303 | ||||||
[1] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. | ||||||
[2] | The cumulative impact of the adoption of ASC 606 resulted in an increase of $23,227 in the contract cost asset related to sales incentive programs (excluding the effect of the current period – refer to note d to the table below) as of January 1, 2018 with a corresponding impact of $17,924 on retained earnings (excluding the effect of the current period – refer to note d to the table below) and on deferred tax liability of $5,303. | ||||||
[3] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. |
Summary of Significant Accou166
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 on Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Revenue Recognition [Line Items] | ||||||||||||||
Net revenues | $ 688,912 | |||||||||||||
Cost of revenue | 444,324 | $ 383,337 | $ 1,683,704 | $ 1,554,707 | $ 1,493,547 | |||||||||
Gross profit | 244,588 | $ 278,530 | $ 279,633 | $ 255,404 | 239,658 | $ 276,075 | $ 256,351 | $ 246,768 | $ 236,855 | 1,053,225 | 1,016,049 | 967,497 | ||
Operating expenses: | ||||||||||||||
Selling, general and administrative expenses | 171,109 | [1] | 160,858 | 689,847 | 653,029 | 608,114 | ||||||||
Amortization of acquired intangible assets | 9,936 | 7,242 | 36,412 | 27,183 | 28,513 | |||||||||
Other operating (income) expense, net | (218) | (7,538) | (1,661) | (4,940) | (3,322) | |||||||||
Income from operations | 63,761 | 72,049 | 97,451 | 80,031 | 79,096 | 98,092 | 87,124 | 79,940 | 75,622 | 328,627 | 340,777 | 334,192 | ||
Foreign exchange gains (losses), net | 4,798 | (4,913) | 1,996 | 2,630 | 5,269 | |||||||||
Interest income (expense), net | (8,100) | (5,493) | (31,735) | (16,184) | (31,267) | |||||||||
Other income (expense), net | 15,550 | 553 | 26,238 | 10,120 | 4,360 | |||||||||
Income before equity-method investment activity, net and income tax expense | 76,009 | 81,559 | 89,742 | 84,582 | 69,243 | 95,502 | 87,360 | 81,818 | 72,664 | 325,126 | 337,343 | 312,554 | ||
Equity-method investment activity, net | (4,558) | (4,543) | (7,698) | (10,800) | ||||||||||
Income before income tax expense | 76,009 | 64,685 | 320,583 | 329,645 | 301,754 | |||||||||
Income tax expense | 12,075 | 12,245 | 59,742 | 62,098 | 61,937 | |||||||||
Net income | 63,934 | [2] | 66,138 | 73,161 | 69,102 | 52,440 | 76,066 | 68,188 | 64,788 | 58,505 | 260,841 | 267,547 | 239,817 | |
Net loss attributable to redeemable non-controlling interest | 761 | 944 | 584 | (156) | 898 | 232 | 734 | 882 | 289 | 2,270 | 2,137 | |||
Net income attributable to Genpact Limited shareholders | 64,695 | [2] | $ 67,082 | $ 73,745 | $ 68,946 | $ 53,338 | $ 76,298 | $ 68,922 | $ 65,670 | $ 58,794 | $ 263,111 | $ 269,684 | $ 239,817 | |
ASU 2014-09 | Adjustments | ||||||||||||||
Operating expenses: | ||||||||||||||
Selling, general and administrative expenses | [1] | 44 | ||||||||||||
Income from operations | (44) | |||||||||||||
Income before equity-method investment activity, net and income tax expense | (44) | |||||||||||||
Income before income tax expense | (44) | |||||||||||||
Net income | [2] | (44) | ||||||||||||
Net income attributable to Genpact Limited shareholders | [2] | (44) | ||||||||||||
ASU 2014-09 | Balances without adoption of Topic 606 | ||||||||||||||
Revenue Recognition [Line Items] | ||||||||||||||
Net revenues | 688,912 | |||||||||||||
Cost of revenue | 444,324 | |||||||||||||
Gross profit | 244,588 | |||||||||||||
Operating expenses: | ||||||||||||||
Selling, general and administrative expenses | [1] | 171,153 | ||||||||||||
Amortization of acquired intangible assets | 9,936 | |||||||||||||
Other operating (income) expense, net | (218) | |||||||||||||
Income from operations | 63,717 | |||||||||||||
Foreign exchange gains (losses), net | 4,798 | |||||||||||||
Interest income (expense), net | (8,100) | |||||||||||||
Other income (expense), net | 15,550 | |||||||||||||
Income before equity-method investment activity, net and income tax expense | 75,965 | |||||||||||||
Income before income tax expense | 75,965 | |||||||||||||
Income tax expense | 12,075 | |||||||||||||
Net income | [2] | 63,890 | ||||||||||||
Net loss attributable to redeemable non-controlling interest | 761 | |||||||||||||
Net income attributable to Genpact Limited shareholders | [2] | $ 64,651 | ||||||||||||
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. | |||||||||||||
[2] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Summary of Significant Accou167
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 on Consolidated Statement of Income (Parenthetical) (Detail) - ASU 2014-09 $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue Recognition [Line Items] | |
Amortized contract cost asset amount | $ 3,239 |
Balances without adoption of Topic 606 | |
Revenue Recognition [Line Items] | |
Amortized contract cost asset amount | 3,283 |
Adjustments | |
Revenue Recognition [Line Items] | |
Amortized contract cost asset amount | $ 44 |
Summary of Significant Accou168
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 on Consolidated Statement of Cash Flow (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Operating activities | ||||||||||||||
Net income attributable to Genpact Limited shareholders | $ 64,695 | [1] | $ 67,082 | $ 73,745 | $ 68,946 | $ 53,338 | $ 76,298 | $ 68,922 | $ 65,670 | $ 58,794 | $ 263,111 | $ 269,684 | $ 239,817 | |
Net loss attributable to redeemable non-controlling interest | (761) | (944) | (584) | 156 | (898) | (232) | (734) | (882) | (289) | (2,270) | (2,137) | |||
Net income | 63,934 | [1] | 66,138 | $ 73,161 | 69,102 | 52,440 | 76,066 | $ 68,188 | $ 64,788 | 58,505 | 260,841 | 267,547 | 239,817 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
Depreciation and amortization | 15,836 | 14,139 | 58,503 | 54,553 | 54,286 | |||||||||
Amortization of debt issuance costs (including loss on extinguishment of debt) | 488 | 375 | 1,884 | 1,531 | 13,546 | |||||||||
Amortization of acquired intangible assets | 9,936 | 7,242 | 36,412 | 27,183 | 28,513 | |||||||||
Reserve for doubtful receivables | (103) | 9,819 | 7,282 | 2,449 | ||||||||||
Unrealized gain on revaluation of foreign currency asset/liability | (8,525) | 8,757 | (11,830) | 1,717 | (4,999) | |||||||||
Stock-based compensation expense | 7,787 | 4,986 | 35,685 | 25,113 | 24,976 | |||||||||
Deferred income taxes | (4,625) | (2,890) | (10,391) | 30,454 | (18,713) | |||||||||
Others, net | (28) | (4,301) | (4,785) | (41) | (238) | |||||||||
Change in operating assets and liabilities: | ||||||||||||||
Decrease (increase) in accounts receivable | (6,025) | 19,649 | (57,267) | (48,612) | (78,923) | |||||||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [1],[2] | (37,008) | ||||||||||||
Decrease in accounts payable | (1,224) | (928) | (2,155) | (463) | (3,988) | |||||||||
Increase (decrease) in accrued expenses, other current liabilities and other liabilities | (77,734) | [2] | (69,131) | 46,581 | 27,977 | 69,606 | ||||||||
Decrease in income taxes payable | 9,969 | 8,157 | 4,640 | 704 | 18,757 | |||||||||
Net cash provided by/(used for) operating activities | (27,322) | 31,028 | 359,078 | 345,772 | 327,441 | |||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | (18,706) | (17,084) | (57,231) | (81,926) | (62,173) | |||||||||
Payment for internally generated intangible assets | (4,365) | (2,614) | (16,441) | (6,846) | ||||||||||
Proceeds from sale of property, plant and equipment | 144 | 389 | 1,738 | 547 | 1,486 | |||||||||
Payment for redeemable non-controlling interest | (4,730) | |||||||||||||
Net cash used for investing activities | (27,657) | (29,013) | (361,990) | (125,765) | (100,473) | |||||||||
Financing activities | ||||||||||||||
Repayment of capital lease obligations | (537) | (494) | (2,708) | (1,793) | (2,035) | |||||||||
Repayment of long-term debt | (10,000) | (10,000) | (40,000) | (40,000) | (684,875) | |||||||||
Proceeds from short-term borrowings | 105,000 | 40,000 | 295,000 | 200,000 | 1,451,500 | |||||||||
Proceeds from issuance of common shares under stock-based compensation plans | 4,202 | 7,761 | 15,528 | 18,228 | 16,088 | |||||||||
Payment for net settlement of stock-based awards | (13,284) | (9,939) | (10,296) | (769) | (7,194) | |||||||||
Payment of earn-out/deferred consideration | (1,476) | (1,097) | (6,219) | (1,485) | (230) | |||||||||
Dividend paid | (14,408) | (11,957) | (46,686) | |||||||||||
Payment for stock purchased and retired | (95,984) | (219,784) | (219,784) | (345,200) | (226,917) | |||||||||
Payment for expenses related to stock purchase | (60) | (16) | (16) | (279) | (197) | |||||||||
Net cash (used for) provided by financing activities | (26,547) | (42,007) | 47,189 | (232,798) | (218,884) | |||||||||
Effect of exchange rate changes | 1,284 | 5,555 | 37,568 | (15,493) | (18,965) | |||||||||
Net increase (decrease) in cash and cash equivalents | (81,526) | (39,992) | 44,277 | (12,791) | 8,084 | |||||||||
Cash and cash equivalents at the beginning of the period | 504,468 | $ 388,186 | 422,623 | $ 450,907 | 422,623 | 450,907 | 461,788 | |||||||
Cash and cash equivalents at the end of the period | 424,226 | 504,468 | $ 388,186 | $ 422,623 | 504,468 | $ 422,623 | $ 450,907 | |||||||
ASU 2014-09 | Adjustments | ||||||||||||||
Operating activities | ||||||||||||||
Net income attributable to Genpact Limited shareholders | [1] | (44) | ||||||||||||
Net income | [1] | (44) | ||||||||||||
Change in operating assets and liabilities: | ||||||||||||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [1],[2] | (3,035) | ||||||||||||
Increase (decrease) in accrued expenses, other current liabilities and other liabilities | [2] | 3,079 | ||||||||||||
ASU 2014-09 | Balances without adoption of Topic 606 | ||||||||||||||
Operating activities | ||||||||||||||
Net income attributable to Genpact Limited shareholders | [1] | 64,651 | ||||||||||||
Net loss attributable to redeemable non-controlling interest | (761) | |||||||||||||
Net income | [1] | 63,890 | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
Depreciation and amortization | 15,836 | |||||||||||||
Amortization of debt issuance costs (including loss on extinguishment of debt) | 488 | |||||||||||||
Amortization of acquired intangible assets | 9,936 | |||||||||||||
Reserve for doubtful receivables | (103) | |||||||||||||
Unrealized gain on revaluation of foreign currency asset/liability | (8,525) | |||||||||||||
Stock-based compensation expense | 7,787 | |||||||||||||
Deferred income taxes | (4,625) | |||||||||||||
Others, net | (28) | |||||||||||||
Change in operating assets and liabilities: | ||||||||||||||
Decrease (increase) in accounts receivable | (6,025) | |||||||||||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [1],[2] | (40,043) | ||||||||||||
Decrease in accounts payable | (1,224) | |||||||||||||
Increase (decrease) in accrued expenses, other current liabilities and other liabilities | [2] | (74,655) | ||||||||||||
Decrease in income taxes payable | 9,969 | |||||||||||||
Net cash provided by/(used for) operating activities | (27,322) | |||||||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | (18,706) | |||||||||||||
Payment for internally generated intangible assets | (4,365) | |||||||||||||
Proceeds from sale of property, plant and equipment | 144 | |||||||||||||
Payment for redeemable non-controlling interest | (4,730) | |||||||||||||
Net cash used for investing activities | (27,657) | |||||||||||||
Financing activities | ||||||||||||||
Repayment of capital lease obligations | (537) | |||||||||||||
Repayment of long-term debt | (10,000) | |||||||||||||
Proceeds from short-term borrowings | 105,000 | |||||||||||||
Proceeds from issuance of common shares under stock-based compensation plans | 4,202 | |||||||||||||
Payment for net settlement of stock-based awards | (13,284) | |||||||||||||
Payment of earn-out/deferred consideration | (1,476) | |||||||||||||
Dividend paid | (14,408) | |||||||||||||
Payment for stock purchased and retired | (95,984) | |||||||||||||
Payment for expenses related to stock purchase | (60) | |||||||||||||
Net cash (used for) provided by financing activities | (26,547) | |||||||||||||
Effect of exchange rate changes | 1,284 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (81,526) | |||||||||||||
Cash and cash equivalents at the beginning of the period | 504,468 | |||||||||||||
Cash and cash equivalents at the end of the period | $ 424,226 | $ 504,468 | $ 504,468 | |||||||||||
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. | |||||||||||||
[2] | Upon the adoption of ASC 606 the Company offset certain contract assets against contract liabilities related to the same contract in an amount of $3,079. |
Summary of Significant Accou169
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 on Consolidated Statement of Cash Flow (Parenthetical) (Detail) - ASU 2014-09 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Jan. 01, 2018 | |
Revenue Recognition [Line Items] | ||
Amortized contract cost asset amount | $ 3,239 | |
Balances without adoption of Topic 606 | ||
Revenue Recognition [Line Items] | ||
Amortized contract cost asset amount | 3,283 | |
Adjustments | ||
Revenue Recognition [Line Items] | ||
Amortized contract cost asset amount | 44 | |
Contract assets and contract liabilities netted off | $ 3,079 | $ 21,348 |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments and Location in Financial Statements (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | |||
Derivatives Fair Value [Line Items] | |||
Fair value of assets | $ 973 | $ 4,635 | $ 809 |
Prepaid Expenses and Other Current Assets | Cash Flow Hedges | |||
Derivatives Fair Value [Line Items] | |||
Fair value of assets | 32,750 | 43,557 | 33,921 |
Other Assets | Cash Flow Hedges | |||
Derivatives Fair Value [Line Items] | |||
Fair value of assets | 19,864 | 24,906 | 20,657 |
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument | |||
Derivatives Fair Value [Line Items] | |||
Fair value of liabilities | 1,986 | 254 | 237 |
Accrued Expenses and Other Current Liabilities | Cash Flow Hedges | |||
Derivatives Fair Value [Line Items] | |||
Fair value of liabilities | 13,326 | 10,092 | 4,540 |
Other Liabilities | Cash Flow Hedges | |||
Derivatives Fair Value [Line Items] | |||
Fair value of liabilities | $ 12,931 | $ 7,842 | $ 12,576 |
Net Revenues by Type of Custome
Net Revenues by Type of Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 2,736,929 | $ 2,570,756 | $ 2,461,044 |
General Electric Company | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 58,049 | 69,254 | ||||||||||
Global Clients | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 630,863 | $ 553,741 |
Net Revenues - Additional Infor
Net Revenues - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Revenues [Abstract] | |
Billing cycle period | 30 days |
Net Revenues of Company's Contr
Net Revenues of Company's Contract Liabilities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenues [Abstract] | |
Advance from customers, Opening balance | $ 26,266 |
Advance from customers, Additions | 11,248 |
Advance from customers, Revenue recognized | (2,944) |
Advance from customers, Closing balance | 34,570 |
Deferred transition revenue, Opening balance | 101,785 |
Deferred transition revenue, Additions | 11,083 |
Deferred transition revenue, Revenue recognized | (10,430) |
Deferred transition revenue, Currency translation adjustments | (10) |
Deferred transition revenue, Closing balance | $ 102,428 |
Estimated Revenue Expected to R
Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 47,714 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 47,818 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 6,676 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 220 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: (nil) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 102,428 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Net Revenues of Company's Co175
Net Revenues of Company's Contract Assets (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenues [Abstract] | |
Opening balance | $ 43,366 |
Additions | 10,839 |
Reduction in revenue recognized | (5,902) |
Closing balance | $ 48,303 |
Net Revenues of Company's Co176
Net Revenues of Company's Contract Costs (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenues [Line Items] | |
Closing balance | $ 162,435 |
Sales Incentive Programs | |
Revenues [Line Items] | |
Opening balance | 23,227 |
Amortized contract cost asset amount | 3,239 |
Closing balance | 23,271 |
Process Transition Activities | |
Revenues [Line Items] | |
Opening balance | 139,284 |
Amortized contract cost asset amount | 11,579 |
Closing balance | $ 139,164 |
Other Income (Expense), net (De
Other Income (Expense), net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Nonoperating Income Expense [Abstract] | ||
Government incentives | $ 15,500 | |
Other income/(expense) | 50 | $ 553 |
Other income (expense), net | $ 15,550 | $ 553 |