Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 2-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'G | ' |
Entity Registrant Name | 'GENPACT LTD | ' |
Entity Central Index Key | '0001398659 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 216,078,754 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $567,266 | $571,276 |
Accounts receivable, net | 513,145 | 504,714 |
Accounts receivable from related party, net | 71 | 403 |
Deferred tax assets | 52,564 | 60,638 |
Prepaid expenses and other current assets | 170,434 | 139,113 |
Total current assets | 1,303,480 | 1,276,144 |
Property, plant and equipment, net | 170,308 | 173,204 |
Deferred tax assets | 76,048 | 89,305 |
Investment in equity affiliates | 418 | 384 |
Intangible assets, net | 97,326 | 99,116 |
Goodwill | 964,088 | 953,849 |
Other assets | 91,898 | 97,365 |
Total assets | 2,703,566 | 2,689,367 |
Current liabilities | ' | ' |
Current portion of long-term debt | 4,269 | 4,263 |
Current portion of capital lease obligations | 1,475 | 1,405 |
Accounts payable | 18,447 | 18,412 |
Income taxes payable | 22,267 | 15,007 |
Deferred tax liabilities | 561 | 614 |
Accrued expenses and other current liabilities | 378,416 | 421,992 |
Total current liabilities | 425,435 | 461,693 |
Long-term debt, less current portion | 652,523 | 653,601 |
Capital lease obligations, less current portion | 2,752 | 2,657 |
Deferred tax liabilities | 4,421 | 4,464 |
Other liabilities | 189,343 | 242,884 |
Total liabilities | 1,274,474 | 1,365,299 |
Shareholders' equity | ' | ' |
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | ' | ' |
Common shares, $0.01 par value, 500,000,000 authorized, 231,262,576 and 233,347,651 issued and outstanding as of December 31, 2013 and March 31, 2014, respectively | 2,331 | 2,310 |
Additional paid-in capital | 1,266,733 | 1,268,344 |
Retained earnings | 562,312 | 511,699 |
Accumulated other comprehensive income (loss) | -402,949 | -459,614 |
Genpact Limited shareholders' equity | 1,428,427 | 1,322,739 |
Noncontrolling interest | 665 | 1,329 |
Total equity | 1,429,092 | 1,324,068 |
Commitments and contingencies | ' | ' |
Total liabilities and equity | $2,703,566 | $2,689,367 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Preferred shares, par value | $0.01 | $0.01 |
Preferred shares, authorized | 250,000,000 | 250,000,000 |
Preferred shares, issued | ' | ' |
Common shares, par value | $0.01 | $0.01 |
Common shares, authorized | 500,000,000 | 500,000,000 |
Common shares, issued | 233,347,651 | 231,262,576 |
Common shares, outstanding | 233,347,651 | 231,262,576 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net revenues | ' | ' |
Net revenues from services - others | $528,119 | $503,657 |
Net revenues from services - related party | 71 | 191 |
Total net revenues | 528,190 | 503,848 |
Cost of revenue | ' | ' |
Services | 324,289 | 311,726 |
Total cost of revenue | 324,289 | 311,726 |
Gross profit | 203,901 | 192,122 |
Operating expenses: | ' | ' |
Selling, general and administrative expenses | 122,498 | 113,224 |
Amortization of acquired intangible assets | 6,018 | 5,551 |
Other operating (income) expense, net | -1,862 | -602 |
Income from operations | 77,247 | 73,949 |
Foreign exchange (gains) losses, net | 3,593 | 3,382 |
Other income (expense), net | -6,533 | -5,111 |
Income before equity-method investment activity, net and income tax expense | 67,121 | 65,456 |
Equity-method investment activity, net | -20 | -44 |
Income before income tax expense | 67,141 | 65,500 |
Income tax expense | 16,288 | 17,248 |
Net income | 50,853 | 48,252 |
Net income attributable to noncontrolling interest | 240 | 1,515 |
Net income attributable to Genpact Limited shareholders | 50,613 | 46,737 |
Net income available to Genpact Limited common shareholders | $50,613 | $46,737 |
Earnings per common share attributable to Genpact Limited common shareholders | ' | ' |
Basic | $0.22 | $0.21 |
Diluted | $0.21 | $0.20 |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | ' | ' |
Basic | 232,093,917 | 227,227,226 |
Diluted | 237,275,651 | 233,620,751 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $50,853 | $48,252 |
Other comprehensive income: | ' | ' |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 37,992 | 19,530 |
Other comprehensive income (loss) | 56,660 | 21,350 |
Noncontrolling Interest | ' | ' |
Net income | 240 | 1,515 |
Other comprehensive income: | ' | ' |
Currency translation adjustments | -5 | -13 |
Other comprehensive income (loss) | -5 | -13 |
Comprehensive income (loss) | 235 | 1,502 |
Genpact Limited Shareholders | ' | ' |
Net income | 50,613 | 46,737 |
Other comprehensive income: | ' | ' |
Currency translation adjustments | 18,593 | 1,833 |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 37,992 | 19,530 |
Retirement benefits, net of taxes | 80 | ' |
Other comprehensive income (loss) | 56,665 | 21,363 |
Comprehensive income (loss) | $107,278 | $68,100 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common shares | Additional Paid- in Capital | Retained Earnings | Accumulated Other Comprehensive Income (loss) | Non controlling Interest | |
In Thousands, except Share data, unless otherwise specified | |||||||
Beginning balance, value at Dec. 31, 2012 | $1,171,781 | $2,253 | $1,202,448 | $281,982 | ($318,272) | $3,370 | |
Beginning balance, value (in shares) at Dec. 31, 2012 | ' | 225,480,172 | ' | ' | ' | ' | |
Net settlement on issuance of common shares on exercise of options (Note 13) (in shares) | ' | 1,911,004 | ' | ' | ' | ' | |
Net settlement on issuance of common shares on exercise of options (Note 13) | 15,820 | 19 | 15,801 | ' | ' | ' | |
Issuance of common shares under the employee stock purchase plan (Note 13) (in shares) | ' | 23,575 | ' | ' | ' | ' | |
Issuance of common shares under the employee stock purchase plan (Note 13) | 373 | ' | 373 | ' | ' | ' | |
Net settlement on vesting of restricted share units (Note 13) | -863 | 1 | -864 | ' | ' | ' | |
Net settlement on vesting of restricted share units, shares | ' | 122,413 | ' | ' | ' | ' | |
Net settlement on vesting of performance units (Note 13) | -2,273 | 5 | -2,278 | ' | ' | ' | |
Net settlement on vesting of performance units, shares | ' | 491,433 | ' | ' | ' | ' | |
Disposition of noncontrolling interest | -1,055 | ' | ' | ' | ' | -1,055 | |
Distribution to noncontrolling interest | -1,816 | ' | ' | ' | ' | -1,816 | |
Stock-based compensation expense (Note 13) | 6,526 | ' | 6,526 | ' | ' | ' | |
Comprehensive income: | ' | ' | ' | ' | ' | ' | |
Net income | 48,252 | ' | ' | 46,737 | ' | 1,515 | |
Other comprehensive income (loss) | 21,350 | ' | ' | ' | 21,363 | -13 | |
End balance, value at Mar. 31, 2013 | 1,258,095 | 2,278 | 1,222,006 | 328,719 | -296,909 | 2,001 | |
End balance, value (in shares) at Mar. 31, 2013 | ' | 228,028,597 | ' | ' | ' | ' | |
Beginning balance, value at Dec. 31, 2013 | 1,324,068 | 2,310 | 1,268,344 | 511,699 | -459,614 | 1,329 | |
Beginning balance, value (in shares) at Dec. 31, 2013 | 231,262,576 | 231,262,576 | ' | ' | ' | ' | |
Net settlement on issuance of common shares on exercise of options (Note 13) (in shares) | 1,430,980 | [1] | 1,081,905 | ' | ' | ' | ' |
Net settlement on issuance of common shares on exercise of options (Note 13) | -599 | 11 | -610 | ' | ' | ' | |
Issuance of common shares under the employee stock purchase plan (Note 13) (in shares) | ' | 40,534 | ' | ' | ' | ' | |
Issuance of common shares under the employee stock purchase plan (Note 13) | 608 | ' | 608 | ' | ' | ' | |
Net settlement on vesting of restricted share units (Note 13) | -72 | 1 | -73 | ' | ' | ' | |
Net settlement on vesting of restricted share units, shares | ' | 49,129 | ' | ' | ' | ' | |
Net settlement on vesting of performance units (Note 13) | -6,500 | 9 | -6,509 | ' | ' | ' | |
Net settlement on vesting of performance units, shares | ' | 913,507 | ' | ' | ' | ' | |
Distribution to noncontrolling interest | -899 | ' | ' | ' | ' | -899 | |
Stock-based compensation expense (Note 13) | 4,973 | ' | 4,973 | ' | ' | ' | |
Comprehensive income: | ' | ' | ' | ' | ' | ' | |
Net income | 50,853 | ' | ' | 50,613 | ' | 240 | |
Other comprehensive income (loss) | 56,660 | ' | ' | ' | 56,665 | -5 | |
End balance, value at Mar. 31, 2014 | $1,429,092 | $2,331 | $1,266,733 | $562,312 | ($402,949) | $665 | |
End balance, value (in shares) at Mar. 31, 2014 | 233,347,651 | 233,347,651 | ' | ' | ' | ' | |
[1] | Out of this, 1,000,000 options have been net settled upon exercise by issuing 650,925 shares (net of minimum statutory withholding taxes). |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities | ' | ' |
Net income attributable to Genpact Limited shareholders | $50,613 | $46,737 |
Net income attributable to noncontrolling interest | 240 | 1,515 |
Net income | 50,853 | 48,252 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' |
Depreciation and amortization | 12,341 | 13,579 |
Amortization of debt issue costs (including loss on extinguishment of debt) | 801 | 596 |
Amortization of acquired intangible assets | 6,018 | 5,551 |
Reserve for doubtful receivables | 197 | 3,450 |
Unrealized (gain) loss on revaluation of foreign currency asset/liability | 3,295 | -733 |
Equity-method investment activity, net | -20 | -44 |
Stock-based compensation expense | 4,973 | 6,526 |
Deferred income taxes | 123 | 254 |
Others, net | 741 | 52 |
Change in operating assets and liabilities: | ' | ' |
Increase in accounts receivable | -7,901 | -8,582 |
Increase in other assets | -16,968 | -7,301 |
Increase (Decrease) in accounts payable | 124 | -1,782 |
Decrease in accrued expenses and other current liabilities | -34,779 | -42,953 |
Increase in income taxes payable | 7,194 | 3,426 |
Increase (Decrease) in other liabilities | -12,751 | 11,257 |
Net cash provided by operating activities | 14,241 | 31,548 |
Investing activities | ' | ' |
Purchase of property, plant and equipment | -14,530 | -14,623 |
Proceeds from sale of property, plant and equipment | 103 | 135 |
Short term deposits placed | ' | -18,675 |
Redemption of short term deposits | ' | 18,675 |
Payment for business acquisitions, net of cash acquired | ' | -46,134 |
Proceeds from divestiture of business, net of cash divested | ' | -1,049 |
Net cash used for investing activities | -14,427 | -61,671 |
Financing activities | ' | ' |
Repayment of capital lease obligations | -502 | -461 |
Repayment of long-term debt | -1,687 | -1,687 |
Proceeds from short-term borrowings | ' | 35,000 |
Proceeds from issuance of common shares under stock-based compensation plans | 6,061 | 16,060 |
Payment for net settlement of stock-based awards | -8,099 | -3,136 |
Payment of earn-out consideration | ' | -85 |
Distribution to noncontrolling interest | -899 | -1,816 |
Net cash used for financing activities | -5,126 | 43,875 |
Effect of exchange rate changes | 1,302 | 1,593 |
Net increase (decrease) in cash and cash equivalents | -5,312 | 13,752 |
Cash and cash equivalents at the beginning of the period | 571,276 | 459,228 |
Cash and cash equivalents at the end of the period | 567,266 | 474,573 |
Supplementary information | ' | ' |
Cash paid during the period for interest | 6,143 | 8,016 |
Cash paid during the period for income taxes | 21,907 | 25,363 |
Property, plant and equipment acquired under capital lease obligation | $534 | $787 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2014 | |
Organization | ' |
1. Organization | |
Nature of Operations | |
The Company is a global leader in transforming and running business processes and operations, including those that are complex and industry-specific. The Company’s mission is to help clients become more competitive by making their enterprises more intelligent through becoming more adaptive, innovative, globally effective and connected to their own clients. Genpact stands for Generating Impact – visible in better management of risk, regulations, costs and growth for hundreds of long-term clients, including more than 100 of the Fortune Global 500. The Company’s approach is distinctive – it offers an unbiased, agile combination of smarter processes, crystallized in its Smart Enterprise Processes (SEPSM) proprietary framework, along with analytics and technology, which limits upfront investments and enhances future adaptability. The Company has 64,000+ employees in 24 countries with key management and corporate offices in New York City. Behind the Company’s single-minded passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 15 years. | |
Prior to December 30, 2004, the business of the Company was conducted through various entities and divisions of the General Electric Company (“GE”). On December 30, 2004, in a series of transactions referred to as the “2004 Reorganization”, GE transferred such operations to the Company. In August 2007, the Company completed an initial public offering of its common shares, pursuant to which the Company and certain of its existing shareholders each sold 17,647,059 shares. On March 24, 2010, the Company completed a secondary offering of its common shares pursuant to which GE’s shareholding in the Company decreased to 9.1% and it ceased to be a significant shareholder, although it continued to be a related party. During the year ended December 31, 2012, GE’s shareholding subsequently declined to less than 5.0%, as a result of which GE is no longer considered a related party. | |
On December 14, 2012, a secondary offering of the Company’s common shares by General Atlantic (“GA”) and Oak Hill Capital Partners (“OH”) was completed. Upon the completion of the secondary offering, GA and OH each owned approximately 2.4% of the Company’s common shares outstanding, and they ceased to be significant shareholders and related parties. | |
2012 Recapitalization | |
On August 1, 2012, affiliates of GA and OH entered into an agreement to sell 67,750,678 common shares of the Company to Glory Investments A Limited, formerly known as South Asia Private Investments, an affiliate of Bain Capital Investors, LLC (“Bain Capital”). On October 25, 2012, Bain Capital and its affiliated assignees, along with two additional co-investors (RGIP, LLC, an investor in certain investment funds which are affiliated with Bain Capital, and Twickenham Investment Private Limited, an affiliate of the Government of Singapore Investment Corporation Private Limited), completed the purchase of the Company common shares covered by the share purchase agreement. | |
On August 30, 2012, the Company terminated its previous credit facility of $380,000 and entered into a new credit facility of $925,000. Net proceeds from the credit facility along with cash on hand were partially used to fund the payment of a special cash dividend in the amount of $2.24 per share, or $501,620 in aggregate, which was declared by the Company’s board of directors on August 30, 2012, and paid on September 24, 2012 to holders of record as of September 10, 2012. The share purchase transaction described above, the entry into a new credit facility and the payment of the special cash dividend are referred to collectively as the “2012 Recapitalization.” |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
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, 2013. | |||||
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 the interim periods are not necessarily indicative of the 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 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. | |||||
The noncontrolling interest disclosed in the accompanying unaudited interim consolidated financial statements represents the noncontrolling partners’ interest in the operation of Genpact Netherlands B.V. and the profits or losses associated with the noncontrolling interest in those operations. The noncontrolling partners of Genpact Netherlands B.V. are individually liable for the tax obligations on their shares of profit as it is a partnership and, accordingly, noncontrolling interest relating to Genpact Netherlands B.V. has been computed prior to tax and disclosed accordingly in the unaudited interim 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, the carrying amount of property, plant and equipment, intangibles and goodwill, the reserve for doubtful receivables, the valuation allowance for deferred tax assets, the valuation of derivative financial instruments, the measurements of stock-based compensation, assets and obligations related to employee benefits, 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 consolidated financial statements. | |||||
(c) Business combinations, goodwill and other intangible assets | |||||
The Company accounts for its business combinations by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any noncontrolling 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 the 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 the reporting unit exceeds the fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs the 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 the reporting unit below its carrying amount. See Note 9 for information and related disclosures. | |||||
Intangible assets acquired 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 | ||||
Contract-related intangible assets | 1 year | ||||
Other intangible assets | 3-9 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, short term deposits, 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 28% and 24% of receivables as of December 31, 2013 and March 31, 2014, respectively. GE accounted for 23% and 21% of revenues for the three months ended March 31, 2013 and 2014, respectively. | |||||
(e) Recently 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 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, 2014, the Company adopted FASB ASU 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon De-recognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-05”). This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. | ||||
• | Effective January 1, 2014, the Company adopted FASB ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). This new guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows: to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. | ||||
(f) 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. |
EarnOut_Consideration_and_Defe
Earn-Out Consideration and Deferred Consideration | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earn-Out Consideration and Deferred Consideration | ' | ||||||||
3. Earn-out consideration and deferred consideration | |||||||||
The Company acquired High Performance Partners, LLC (“HPP”), Empower Research, LLC (“Empower”), Triumph Engineering, Corp. and Triumph On-Demand, Inc. (“the Triumph Companies”), and Atyati Technologies Private Limited on August 24, 2011, October 3, 2011, August 17, 2012 and September 4, 2012, respectively. The terms of the acquisition agreements for these business acquisitions provided for payment of additional earn-out consideration if certain future events or conditions are met. These earn-outs were recorded as liabilities based on their fair values as of the acquisition dates. The Company evaluates the fair value of earn-out consideration for the respective acquisitions for changes at each reporting period. As of March 31, 2014, the Company re-measured the fair value of such earn-out consideration with corresponding changes in “Other operating (income) expense, net” in the Consolidated Statements of Income as follows: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Decrease in fair value of earn-out consideration for Triumph Companies | $ | (214 | ) | $ | (877 | ) | |||
Decrease in fair value of earn-out consideration for HPP | — | (765 | ) | ||||||
Increase in fair value of earn-out consideration for Empower | 267 | — | |||||||
$ | 53 | $ | (1,642 | ) |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Cash and Cash Equivalents | ' | ||||||||
4. Cash and cash equivalents | |||||||||
Cash and cash equivalents as of December 31, 2013 and March 31, 2014 comprise: | |||||||||
As of December 31, | As of March 31, | ||||||||
2013 | 2014 | ||||||||
Deposits with banks | $ | 123,545 | $ | 142,179 | |||||
Other cash and bank balances | 447,731 | 425,087 | |||||||
Total | $ | 571,276 | $ | 567,266 | |||||
Cash and cash equivalents as of December 31, 2013 and March 31, 2014 include restricted cash balances of $861 and $777, respectively. Restrictions primarily consist of margin balances against bank guarantees and deposits for foreign currency advances on which the bank has created a lien. |
Accounts_Receivable_Net_of_Res
Accounts Receivable, Net of Reserve for Doubtful Receivables | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounts Receivable, Net of Reserve for Doubtful Receivables | ' | ||||||||
5. Accounts receivable, net of reserve for doubtful receivables | |||||||||
The following table provides details of the reserve for doubtful receivables recorded by the Company: | |||||||||
As of December 31, 2013 | As of March 31, 2014 | ||||||||
Opening Balance as of January 1 | $ | 9,073 | $ | 16,560 | |||||
Additions charged to cost and expense | 11,420 | 197 | |||||||
Deductions | (3,933 | ) | (1,012 | ) | |||||
Closing Balance | $ | 16,560 | $ | 15,745 | |||||
Accounts receivable were $521,677 and $528,961 and the reserves for doubtful receivables were $16,560 and $15,745, resulting in net accounts receivable balances of $505,117 and $513,216 as of December 31, 2013 and March 31, 2014, respectively. In addition, accounts receivable due after one year of $15,844 and $12,802 as of December 31, 2013 and March 31, 2014, respectively, are included under other assets in the Consolidated Balance Sheets. | |||||||||
Accounts receivable from related parties were $403 and $71 as of December 31, 2013 and March 31, 2014, respectively. There are no reserves for doubtful receivables in respect of amounts due from related parties. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 derivative instruments were determined using the following inputs as of December 31, 2013 and March 31, 2014: | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Derivative instruments (Note a) | $ | 7,963 | $ | — | $ | 7,963 | $ | — | |||||||||
Total | $ | 7,963 | $ | — | $ | 7,963 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (Note b) | $ | 213,941 | $ | — | $ | 213,941 | $ | — | |||||||||
Total | $ | 213,941 | $ | — | $ | 213,941 | $ | — | |||||||||
As of March 31, 2014 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Derivative instruments (Note a) | $ | 15,139 | $ | — | $ | 15,139 | $ | — | |||||||||
Total | $ | 15,139 | $ | — | $ | 15,139 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (Note b) | $ | 161,451 | $ | — | $ | 161,451 | $ | — | |||||||||
Total | $ | 161,451 | $ | — | $ | 161,451 | $ | — | |||||||||
(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. | ||||||||||||||||
The Company values its derivative instruments based on market observable inputs including both forward and spot prices for respective currencies. The quotes are taken from an independent market database. |
Derivative_financial_instrumen
Derivative financial instruments | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Derivative financial instruments | ' | ||||||||||||||||||||||||||||
7. Derivative financial instruments | |||||||||||||||||||||||||||||
The Company is exposed to the risk of rate fluctuations on foreign currency assets and liabilities, and 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. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts. The Company enters into these contracts with counterparties which are banks or other financial institutions, and the Company considers the risk of non-performance by the counterparties not to be material. The forward foreign exchange contracts mature between zero and fifty-seven 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 | Balance sheet exposure asset (liability) | ||||||||||||||||||||||||||||
(note a) | (note b) | ||||||||||||||||||||||||||||
As of December 31, | As of March 31, | As of December 31, | As of March 31, | ||||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||
Foreign exchange forward contracts denominated in: | |||||||||||||||||||||||||||||
United States Dollars (sell) Indian Rupees (buy) | $ | 1,143,000 | $ | 1,327,000 | $ | (203,822 | ) | $ | (136,286 | ) | |||||||||||||||||||
United States Dollars (sell) Mexican Peso (buy) | 9,000 | 15,360 | (268 | ) | (148 | ) | |||||||||||||||||||||||
United States Dollars (sell) Philippines Peso (buy) | 52,200 | 83,800 | (2,357 | ) | (2,751 | ) | |||||||||||||||||||||||
Euro (sell) United States Dollars (buy) | 43,779 | 57,313 | (2,434 | ) | (1,765 | ) | |||||||||||||||||||||||
Euro (sell) Hungarian Forints (buy) | 4,121 | 3,102 | 131 | (2 | ) | ||||||||||||||||||||||||
Euro (sell) Romanian Leu (buy) | 61,977 | 58,241 | 1,751 | 1,725 | |||||||||||||||||||||||||
Japanese Yen (sell) Chinese Renminbi (buy) | 30,731 | 64,639 | 1,970 | (1,421 | ) | ||||||||||||||||||||||||
Pound Sterling (sell) United States Dollars (buy) | 94,338 | 126,462 | (4,312 | ) | (4,402 | ) | |||||||||||||||||||||||
Australian Dollars (sell) United States Dollars (buy) | 85,156 | 125,351 | 3,363 | (1,262 | ) | ||||||||||||||||||||||||
$ | (205,978 | ) | $ | (146,312 | ) | ||||||||||||||||||||||||
(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 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 statement of financial position. In accordance with the FASB guidance on Derivatives and Hedging, the Company designates foreign exchange forward contracts as cash flow hedges for forecasted revenues and the purchase of services. In addition to this program, the Company has derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge the foreign exchange risks related to balance sheet items such as receivables and intercompany borrowings denominated in currencies other than the underlying functional currency. | |||||||||||||||||||||||||||||
The fair value of the 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, | As of March 31, | As of December 31, | As of March 31, | ||||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets | $ | 6,098 | $ | 11,080 | $ | — | $ | 2 | |||||||||||||||||||||
Other assets | $ | 1,865 | $ | 4,057 | $ | — | $ | — | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | $ | 83,667 | $ | 70,385 | $ | 26 | $ | — | |||||||||||||||||||||
Other liabilities | $ | 130,248 | $ | 91,066 | $ | — | $ | — | |||||||||||||||||||||
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, | |||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||
Before-Tax | Tax | Net of tax | Before-Tax | Tax | Net of tax | ||||||||||||||||||||||||
amount | (Expense) | Amount | amount | (Expense) | Amount | ||||||||||||||||||||||||
or Benefit | or Benefit | ||||||||||||||||||||||||||||
Opening balance as of January 1 | $ | (163,756 | ) | $ | 59,070 | $ | (104,686 | ) | $ | (205,952 | ) | $ | 72,612 | $ | (133,340 | ) | |||||||||||||
Net gains (losses) reclassified into statement of income on completion of hedged transactions | (7,240 | ) | 2,920 | (4,320 | ) | (12,400 | ) | 4,356 | (8,044 | ) | |||||||||||||||||||
Changes in fair value of effective portion of outstanding derivatives, net | 22,299 | (7,089 | ) | 15,210 | 47,238 | (17,290 | ) | 29,948 | |||||||||||||||||||||
Gain (loss) on cash flow hedging derivatives, net | 29,539 | (10,009 | ) | 19,530 | 59,638 | (21,646 | ) | 37,992 | |||||||||||||||||||||
Closing balance as of March 31 | $ | (134,217 | ) | $ | 49,061 | $ | (85,156 | ) | $ | (146,314 | ) | $ | 50,966 | $ | (95,348 | ) | |||||||||||||
The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: | |||||||||||||||||||||||||||||
Derivatives in | Amount of Gain (Loss) | Location of | Amount of Gain (Loss) | Location of Gain | Amount of Gain (Loss) | ||||||||||||||||||||||||
Cash Flow | recognized in OCI on | Gain (Loss) | reclassified from OCI into | (Loss) recognized | recognized in income on | ||||||||||||||||||||||||
Hedging | Derivatives (Effective | reclassified | Statement of Income | in Income on | Derivatives (Ineffective | ||||||||||||||||||||||||
Relationships | Portion) | from OCI into | (Effective Portion) | Derivatives | Portion and Amount | ||||||||||||||||||||||||
Statement of | (Ineffective | excluded from Effectiveness | |||||||||||||||||||||||||||
Income | Portion and | Testing) | |||||||||||||||||||||||||||
(Effective | Amount excluded | ||||||||||||||||||||||||||||
Portion) | from | ||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||
Three months ended | Three months ended | Testing) | Three months ended | ||||||||||||||||||||||||||
March 31, | March 31, | March 31, | |||||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||
Forward foreign exchange contracts | $ | 22,299 | $ | 47,238 | Revenue | $ | 981 | $ | (670 | ) | Foreign exchange | $ | — | $ | — | ||||||||||||||
(gains) losses, | |||||||||||||||||||||||||||||
net | |||||||||||||||||||||||||||||
Cost of revenue | (6,609 | ) | (9,398 | ) | |||||||||||||||||||||||||
Selling, general and administrative expenses | (1,612 | ) | (2,332 | ) | |||||||||||||||||||||||||
$ | 22,299 | $ | 47,238 | $ | (7,240 | ) | $ | (12,400 | ) | $ | — | $ | — | ||||||||||||||||
Non-designated Hedges | |||||||||||||||||||||||||||||
Derivatives not designated | Location of (Gain) Loss | Amount of (Gain) Loss recognized in | |||||||||||||||||||||||||||
as hedging instruments | recognized in Statement of | Statement of Income on Derivatives | |||||||||||||||||||||||||||
Income on Derivatives | Three months ended March 31, | ||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||
Forward foreign exchange contracts (Note a) | Foreign exchange (gains) losses, net | $ | (4,001 | ) | $ | (27 | ) | ||||||||||||||||||||||
$ | (4,001 | ) | $ | (27 | ) | ||||||||||||||||||||||||
(a) | These forward foreign exchange contracts were entered into to hedge the 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. |
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment, Net | ' | ||||||||
8. Property, plant and equipment, net | |||||||||
Property, plant and equipment, net consist of the following: | |||||||||
As of December 31, | As of March 31, | ||||||||
2013 | 2014 | ||||||||
Property, plant and equipment, gross | $ | 502,893 | $ | 516,913 | |||||
Less: Accumulated depreciation and amortization | (329,689 | ) | (346,605 | ) | |||||
Property, plant and equipment, net | $ | 173,204 | $ | 170,308 | |||||
Depreciation expense on property, plant and equipment for the three months ended March 31, 2013 and 2014 was $11,433 and $10,748, respectively. The amount of computer software amortization for the three months ended March 31, 2013 and 2014 was $2,557 and $2,156, respectively. | |||||||||
The depreciation and amortization expense set forth above includes the effect of reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $411 and $563 for the three months ended March 31, 2013 and 2014, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||
9. Goodwill and intangible assets | |||||||||||||||||||||||||
The following table presents the changes in goodwill for the year ended December 31, 2013 and three months ended March 31, 2014: | |||||||||||||||||||||||||
As of December 31, 2013 | As of March 31, 2014 | ||||||||||||||||||||||||
Opening balance | $ | 956,064 | $ | 953,849 | |||||||||||||||||||||
Goodwill relating to acquisitions consummated during the period | 37,918 | — | |||||||||||||||||||||||
Goodwill relating to divestitures consummated during the period | (3,450 | ) | — | ||||||||||||||||||||||
Impact of measurement period adjustments | (362 | ) | — | ||||||||||||||||||||||
Effect of exchange rate fluctuations | (36,321 | ) | 10,239 | ||||||||||||||||||||||
Closing balance | $ | 953,849 | $ | 964,088 | |||||||||||||||||||||
The total amount of goodwill deductible for tax purposes is $38,512 and $37,763 as of December 31, 2013 and March 31, 2014, 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, 2013 | As of March 31, 2014 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
carrying | amortization | carrying | amortization | ||||||||||||||||||||||
amount | amount | ||||||||||||||||||||||||
Customer-related intangible assets | $ | 288,983 | $ | 213,878 | $ | 75,105 | $ | 288,111 | $ | 217,887 | $ | 70,224 | |||||||||||||
Marketing-related intangible assets | 37,919 | 20,545 | 17,374 | 38,078 | 21,478 | 16,600 | |||||||||||||||||||
Contract-related intangible assets | 1,121 | 1,121 | — | 1,156 | 1,156 | — | |||||||||||||||||||
Other intangible assets | 9,124 | 2,487 | 6,637 | 13,177 | 2,675 | 10,502 | |||||||||||||||||||
$ | 337,147 | $ | 238,031 | $ | 99,116 | $ | 340,522 | $ | 243,196 | $ | 97,326 | ||||||||||||||
Amortization expenses for intangible assets for the three months ended March 31, 2013 and 2014 were $5,551 and $6,018, respectively, and are disclosed in the consolidated statements of income under amortization of acquired intangible assets. |
ShortTerm_Borrowings
Short-Term Borrowings | 3 Months Ended | ||
Mar. 31, 2014 | |||
Short-Term Borrowings | ' | ||
10. 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, 2013 and March 31, 2014, the limits available were $13,906 and $14,322, respectively, out of which $6,689 and $7,202 was utilized, representing a non-funded drawdown. | ||
(b) | A fund-based and non-fund based revolving credit facility of $250,000, which was initially entered into in August 2012 and which was amended in June 2013 as described in note 11 below. A part of this amount was initially used to fund the special cash dividend paid in September 2012 and for the acquisition of Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited in February 2013. As of December 31, 2013 and March 31, 2014, a total of $4,397 and $2,042, respectively, was utilized, representing a non-funded drawdown. This facility expires in August 2017. The funded drawdown amount bears interest at LIBOR plus a margin of 2.50% as of December 31, 2013 and March 31, 2014. The unutilized amount on the facility bears a commitment fee of 0.50%. Indebtedness under these facilities is secured by certain assets of the Company and the credit agreement contains certain covenants, including a maximum leverage covenant that becomes effective only if the revolving facility is drawn for $50,000 or more. For the three months ended March 31, 2014, the Company was in compliance with all of the financial covenants. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Long-Term Debt | ' | ||||
11. Long-term debt | |||||
In August 2012, the Company obtained credit facilities aggregating $925,000 from a consortium of financial institutions to (i) finance the repayment of the balance outstanding under the previous existing credit facility of $380,000, (ii) fund a portion of its special cash dividend, and (iii) for general corporate purposes of the Company and its subsidiaries, including working capital requirements. The credit agreement provides for a term loan of $675,000 and a revolving credit facility of $250,000. | |||||
In June 2013, the Company amended this credit facility. Under the amended facility, the applicable margin on the term loan and the revolving credit facility was reduced from 3.25% p.a. to 2.75% p.a. and 2.50% p.a., respectively. In addition, the LIBOR floor on the term loan was reduced from 1% under the earlier facility to 0.75% under the amended facility. As of the amendment date, the gross outstanding term loan amounted to $671,625. The amendment did not result in a substantial modification of $553,589 of the outstanding term loan under the previous credit facility. Further, as a result of the amendment, the Company extinguished the outstanding term loan under the previous credit facility amounting to $118,036 and obtained additional funding amounting to $121,410, increasing the total term loan outstanding to $675,000. As a result, the Company expensed $3,103 representing partial acceleration of the amortization of the existing unamortized debt issuance costs and an additional fee paid to lenders in respect of the extinguished amount. The overall borrowing capacity under the revolving facility did not change. The amendment of the revolving facility resulted in accelerated amortization of $54 relating to the existing unamortized debt issuance cost. The remaining unamortized costs and an additional third party fee paid in connection with the amendment of the term loan and revolving facility will be amortized over the term of the term loan and revolving facility, which end on August 30, 2019 and August 30, 2017, respectively. | |||||
As of December 31, 2013 and March 31, 2014, the outstanding term loan, net of a debt amortization expense of $13,761 and $13,145, was $657,864 and $656,792, respectively. As of December 31, 2013 and March 31, 2014, the term loan bears interest at LIBOR (LIBOR floor of 0.75%) plus an applicable margin of 2.75% p.a. Indebtedness under the loan agreement is secured by certain assets. The amount outstanding on the term loan as of March 31, 2014 will be repaid through quarterly payments of 0.25% of the principal amount of $675,000, and the balance will be repaid upon the maturity of the term loan on August 30, 2019. | |||||
The maturity profile of the term loan, net of debt amortization expense, is as follows: | |||||
Year ended | Amount | ||||
2014 | $ | 3,191 | |||
2015 | 4,288 | ||||
2016 | 4,306 | ||||
2017 | 4,338 | ||||
2018 | 4,363 | ||||
2019 | 636,306 | ||||
$ | 656,792 | ||||
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Employee Benefit Plans | ' | ||||||||
12. 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. 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 have sponsored defined benefit retirement programs. | |||||||||
Net defined benefit plan costs for the three months ended March 31, 2013 and 2014 include the following components: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Service costs | $ | 936 | $ | 1,190 | |||||
Interest costs | 451 | 619 | |||||||
Amortization of actuarial loss | 167 | 78 | |||||||
Expected return on plan assets | (220 | ) | (447 | ) | |||||
Net Gratuity Plan costs | $ | 1,334 | $ | 1,440 | |||||
Defined contribution plans | |||||||||
During the three months ended March 31, 2013 and 2014, the Company contributed the following amounts to defined contribution plans in various jurisdictions: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
India | $ | 3,705 | $ | 3,575 | |||||
U.S. | 1,247 | 1,591 | |||||||
U.K. | 376 | 545 | |||||||
Hungary | 6 | 4 | |||||||
China | 3,469 | 3,537 | |||||||
Mexico | 14 | 8 | |||||||
Morocco | 30 | 2 | |||||||
South Africa | 69 | 47 | |||||||
Hong Kong | 6 | 5 | |||||||
Netherlands | 356 | 629 | |||||||
Philippines | 4 | 3 | |||||||
Singapore | 3 | 9 | |||||||
Japan | 521 | 479 | |||||||
Total | 9,806 | 10,434 | |||||||
Stockbased_compensation
Stock-based compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Stock-based compensation | ' | ||||||||||||||||
13. Stock-based compensation | |||||||||||||||||
The Company has issued options under the Genpact Global Holdings 2005 Plan (the “2005 Plan”), the Genpact Global Holdings 2006 Plan (the “2006 Plan”), the Genpact Global Holdings 2007 Plan (the “2007 Plan”) and the Genpact Limited 2007 Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”) to eligible persons who are employees, directors and certain other persons associated with the Company. | |||||||||||||||||
With respect to options granted under the 2005, 2006 and 2007 Plans before the date of adoption of the 2007 Omnibus Plan, if an award granted under any of the Plans is forfeited or otherwise expires, terminates, or is cancelled without the delivery of shares, then the shares covered by the forfeited, expired, terminated, or cancelled award will be added to the number of shares otherwise available for grant under the respective Plans. | |||||||||||||||||
From the date of adoption of the 2007 Omnibus Plan on July 13, 2007, the options forfeited, expired, terminated, or cancelled under any of the plans will be 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 August 30, 2012, the Company’s Board of Directors declared a special cash dividend of $2.24 per share. The special cash dividend resulted in an adjustment to stock-based awards under both the 2007 Omnibus Plan and the 2005 Plan. Accordingly, effective September 24, 2012, the payment date of the special cash dividend, the number of common shares authorized for issuance under the 2007 Omnibus Plan was increased by 2,544,327 shares. The number of common shares authorized for issuance under the 2005 Plan was increased by 495,915 shares. | |||||||||||||||||
Further, as of December 31, 2012, the number of common shares authorized for issuance under the 2007 Omnibus Plan had been increased by 6,314,496 shares as a result of the termination, expiration or forfeiture of options granted under the Company’s stock incentive plans other than the 2007 Omnibus Plan. In accordance with the anti-dilutive provisions of the 2005 Plan, 2006 Plan, 2007 Plan and 2007 Omnibus Plan, the Company adjusted both the exercise price and the number of stock-based awards outstanding as of the record date of the special cash dividend. The aggregate fair value, intrinsic value and the ratio of the exercise price to the market price were approximately equal immediately before and after the adjustments. Therefore, in accordance with the equity restructuring guidance under ASC 718, Compensation-Stock Compensation, no incremental compensation expense was recognized for the adjustment to the outstanding stock-based awards as a result of the special cash dividend. | |||||||||||||||||
The stock-based compensation costs relating to the foregoing plans during the three months ended March 31, 2013 and 2014 were $6,481 and $4,902, respectively, and have been allocated to cost of revenue and selling, general, and administrative expenses. | |||||||||||||||||
Stock Options | |||||||||||||||||
A summary of stock option activity during the three months ended March 31, 2014 is set out below: | |||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||
Shares arising | Weighted | Weighted average | Aggregate | ||||||||||||||
out of options | average | remaining | intrinsic | ||||||||||||||
exercise price | contractual life | value | |||||||||||||||
(years) | |||||||||||||||||
Outstanding as of January 1, 2014 | 11,102,163 | $ | 12.4 | 5.2 | — | ||||||||||||
Granted | — | — | — | — | |||||||||||||
Forfeited | (150,673 | ) | 19.1 | — | — | ||||||||||||
Expired | (27,228 | ) | 12.32 | — | — | ||||||||||||
Exercised* | (1,430,980 | ) | 3.81 | — | 19,475 | ||||||||||||
Outstanding as of March 31, 2014 | 9,493,282 | $ | 13.59 | 5.4 | $ | 43,633 | |||||||||||
Vested as of March 31, 2014 and expected to vest thereafter (Note a) | 9,203,532 | $ | 13.32 | 5.4 | $ | 43,620 | |||||||||||
Vested and Exercisable as of March 31, 2014 | 5,874,773 | $ | 10.25 | 3.2 | $ | 42,141 | |||||||||||
Weighted average grant date fair value of grants during the period | $ | — | |||||||||||||||
(a) | Options expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
* | Out of this, 1,000,000 options have been net settled upon exercise by issuing 650,925 shares (net of minimum statutory withholding taxes). | ||||||||||||||||
As of March 31, 2014, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $21,521, which will be recognized over the weighted average remaining requisite vesting period of 3.7 years. | |||||||||||||||||
Restricted Share Units | |||||||||||||||||
The Company has granted restricted share units, or RSUs, under the 2007 Omnibus Plan. Each RSU represents the right to receive one common share at a future date. 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 six 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, 2014 is set out below: | |||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||
Number of Restricted | Weighted Average | ||||||||||||||||
Share Units | Grant Date Fair Value | ||||||||||||||||
Outstanding as of January 1, 2014 | 871,772 | $ | 13.96 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested* | (9,655 | ) | 14.39 | ||||||||||||||
Forfeited | (14,238 | ) | 14 | ||||||||||||||
Outstanding as of March 31, 2014 | 847,879 | $ | 13.95 | ||||||||||||||
Expected to vest (Note a) | 770,866 | ||||||||||||||||
(b) | RSUs expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
* | Vested RSUs have been net settled upon vesting by issuing 5,524 shares (net of minimum statutory withholding taxes). | ||||||||||||||||
44,286 RSUs vested as of December 31, 2012, the shares in respect of which were issuable on December 31, 2013 and 43,605 shares were issued in January 2014 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||||||||||||||
61,057 RSUs vested in the year ended December 31, 2013, the shares in respect of which are issuable on December 31, 2014 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||||||||||||||
As of March 31, 2014, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $8,197, which will be recognized over the weighted average remaining requisite vesting period of 1.6 years. | |||||||||||||||||
Performance Units | |||||||||||||||||
The Company has granted stock awards in the form of Performance Units, or PUs, under the 2007 Omnibus Plan. 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. The PUs granted under the plan are subject to cliff or graded vesting. For awards with cliff vesting, the compensation expense is recognized on a straight-line basis over the vesting terms, and for awards with graded vesting, compensation expense is recognized over the vesting term of each separately vesting portion. Over the performance period, the number of shares that will be issued will be 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 as expense will be 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, 2014 is set out below: | |||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||
Number of Performance | Weighted | Maximum Shares Eligible to | |||||||||||||||
Units | Average Grant | Receive | |||||||||||||||
Date Fair Value | |||||||||||||||||
Outstanding as of January 1, 2014 | 3,913,733 | $ | 16.44 | 6,149,018 | |||||||||||||
Granted | |||||||||||||||||
Vested* | (139,930 | ) | 12.04 | (139,930 | ) | ||||||||||||
Forfeited** | (2,437,549 | ) | 17.78 | (2,437,549 | ) | ||||||||||||
Addition due to achievement of higher than target performance goals* | 139,930 | 12.04 | |||||||||||||||
Reduction due to achievement of lower than maximum performance goals*** | (2,095,355 | ) | |||||||||||||||
Outstanding as of March 31, 2014 | 1,476,184 | $ | 14.22 | 1,476,184 | |||||||||||||
Expected to vest (a) | 1,363,036 | ||||||||||||||||
(a) | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||||||||||||||||
* | Represents an additional award of 122,490 and 17,440 shares for the PUs granted in March 2011 and June 2011, respectively, on account of achievement of higher than target performance as certified by the compensation committee based on the Company’s audited financial statements. | ||||||||||||||||
697,853 and 77,619 shares, including the additional awards, were issued in March 2014 with respect to grants made in March 2011 and June 2011, respectively, after withholding shares to the extent of the minimum statutory withholding taxes. | |||||||||||||||||
** | Includes 251,427 shares underlying PUs granted in May 2011, 1,244,507 shares underlying PUs granted in March 2013 and 630,000 shares underlying PUs granted in May 2013, respectively, which have been forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. | ||||||||||||||||
*** | Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest for PUs granted in March 2011 and June 2011, respectively, as a result of the compensation committee’s certification of the level of achievement of the performance conditions based on the Company’s audited financial statements. Also includes a reduction of 616,568 shares for grants made in March 2013, 985,500 shares for grants made in May 2013 and 121,000 shares for grants made in May 2011, respectively, on account of non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. | ||||||||||||||||
For the PUs granted in August 2010, vesting for the year ended December 31, 2012 took place at 122.2% of the target shares, or 231,029 shares, based on the compensation committee’s certification of achievement of the performance goals for the performance period based on the Company’s audited consolidated financial statements. 138,035 shares in respect of such PUs were issued in January 2014 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||||||||||||||
As of March 31, 2014, the total remaining unrecognized stock-based compensation costs related to PUs amounted to $4,970, which will be recognized over the weighted average remaining requisite vesting period of 0.8 years. | |||||||||||||||||
Under the 2007 Omnibus Plan, the definition of change of control includes the acquisition by any person, corporation or other entity or group other than GA, OH, GE or any of their affiliates of 25% or more of the voting securities of the Company. The purchase by Bain Capital of Company shares from GA and OH would have constituted a change of control under the 2007 Omnibus Plan resulting in (1) accelerated vesting of the PUs granted in August 2010 to the former CEO (who since assumed the role of Non-Executive Vice-Chairman) and the PUs granted to the Company’s Chief Executive Officer in June 2011 and March 2012, (2) “double-trigger” vesting of the outstanding PUs granted in March 2010 and March 2011 based on an abbreviated performance period ending with the close of the Company’s fiscal quarter coincident with or immediately preceding the effective date of the Change of Control in the event of a termination without cause in the twenty-four months following a change of control and (3) “double-trigger” vesting of the outstanding PUs granted in March 2012 based on target performance in the event of a termination without cause in the twenty-four months following a change of control. Because the Board of Directors determined that Bain Capital’s purchase of Company shares from GA and OH was not the type of transaction intended to constitute a change of control, they amended the 2007 Omnibus Plan to provide that the contemplated transaction among Bain Capital, GA and OH would not constitute a change of control thereunder. In addition, the CEO and Non-Executive Vice-Chairman waived any accelerated vesting of their PUs and the affected employees consented to the amendment of the change of control definition. As a result of the foregoing, all PUs will continue to vest in accordance with their original terms. | |||||||||||||||||
The amendment to the 2007 Omnibus Plan was a modification to the PUs effective as of October 25, 2012, as a result of which 123 employees were affected and an incremental compensation cost of $5,500 was determined and will be recognized over a weighted average period of 1.85 years. The incremental compensation cost due to this modification was a result of considering the original performance period for determination of expected vesting as against the abbreviated performance period for 2010 and 2011 grants and vesting at target for 2012 performance grants. | |||||||||||||||||
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 deduction at 90% of the fair value of a Company common share on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP shall not exceed the greater of 15% of the participating employee’s base salary or $25 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 in the subsequent May, August, November and February of each year. 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, 2013 and 2014, 23,575 and 40,534 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 employee stock purchase plan is recognized in accordance with the FASB guidance on Compensation-Stock Compensation. The compensation expense for ESPP during the three months ended March 31, 2013 and 2014 was $45 and $71, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share | ' | ||||||||
14. 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 of the Company 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 during the respective periods. The potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, performance units and common shares to be issued under the ESPP have been included in the computation of diluted net earnings per share and the weighted average number of 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 15,000 and 3,379,764 for the three months ended March 31, 2013 and 2014, respectively. | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Net income available to Genpact Limited common shareholders | $ | 46,737 | $ | 50,613 | |||||
Weighted average number of common shares used in computing basic earnings per common share | 227,227,226 | 232,093,917 | |||||||
Dilutive effect of stock-based awards | 6,393,525 | 5,181,734 | |||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 233,620,751 | 237,275,651 | |||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||
Basic | $ | 0.21 | $ | 0.22 | |||||
Diluted | $ | 0.2 | $ | 0.21 |
Cost_of_Revenue
Cost of Revenue | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Cost of Revenue | ' | ||||||||
15. Cost of revenue | |||||||||
Cost of revenue consists of the following: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Personnel expenses | $ | 218,435 | $ | 227,027 | |||||
Operational expenses | 81,446 | 86,421 | |||||||
Depreciation and amortization | 11,845 | 10,841 | |||||||
$ | 311,726 | $ | 324,289 | ||||||
Selling_General_and_Administra
Selling, General and Administrative Expenses | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Selling, General and Administrative Expenses | ' | ||||||||
16. Selling, general and administrative expenses | |||||||||
Selling, general and administrative expenses consist of the following: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Personnel expenses | $ | 82,128 | $ | 89,506 | |||||
Operational expenses | 28,951 | 30,929 | |||||||
Depreciation and amortization | 2,145 | 2,063 | |||||||
$ | 113,224 | $ | 122,498 | ||||||
Other_Operating_Income_Expense
Other Operating (Income) Expense, Net | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Operating (Income) Expense, Net | ' | ||||||||
17. Other operating (income) expense, net | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Other operating (income) expense | $ | (655 | ) | $ | (220 | ) | |||
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | 53 | (1,642 | ) | ||||||
Other operating (income) expense, net | $ | (602 | ) | $ | (1,862 | ) | |||
Other_Income_Expense_Net
Other Income (Expense), Net | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Income (Expense), Net | ' | ||||||||
18. Other income (expense), net | |||||||||
Other income (expense), net consists of the following: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Interest income | $ | 5,273 | $ | 1,359 | |||||
Interest expense | (9,938 | ) | (7,761 | ) | |||||
Other income (expense) | (446 | ) | (131 | ) | |||||
Other income (expense), net | $ | (5,111 | ) | $ | (6,533 | ) | |||
Income_taxes
Income taxes | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Income taxes | ' | ||||
19. Income taxes | |||||
The Company determines tax provisions for interim periods using an estimate of the 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. | |||||
As of December 31, 2013, the Company had unrecognized tax benefits amounting to $21,832, including an amount of $20,901 that, if recognized, would impact the effective tax rate. | |||||
The following table summarizes the activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2014 to March 31, 2014: | |||||
Opening Balance at January 1 | $ | 21,832 | |||
Increase related to prior year tax positions | 586 | ||||
Decrease related to prior year tax positions | (51 | ) | |||
Effect of exchange rate changes | 553 | ||||
Closing Balance at March 31 | $ | 22,920 | |||
Unrecognized tax benefits as of March 31, 2014 include an amount of $21,989 that, if recognized, would impact the effective tax rate. As of December 31, 2013 and March 31, 2014, the Company has accrued approximately $3,373 and $3,763, respectively, in interest relating to unrecognized tax benefits. During the years ended December 31, 2013 and three months ended March 31, 2014, the company recognized approximately $(50) and $390, respectively, in interest expense. As of December 31, 2013 and March 31, 2014, the Company has accrued approximately $350 and $570, respectively, for penalties. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions | ' |
20. Related party transactions | |
The Company has entered into related party transactions with its non-consolidating affiliates. During the year ended December 31, 2013, the Company acquired the remaining equity interest in one of its non-consolidating affiliates, which is now a wholly-owned subsidiary. 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 | |
For the three months ended March 31, 2013 and March 31, 2014, the Company recognized net revenues of $191 and $0, respectively, from a client who is an affiliate of a significant shareholder of the Company and net revenues of $0 and $71, respectively, from a client who is a significant shareholder of the Company. | |
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, 2013 and 2014, cost of revenue includes an amount of $420 and $533, respectively. | |
Selling, general and administrative expenses | |
The Company purchases certain services from its non-consolidating affiliates mainly relating to training and recruitment, which are included in selling, general and administrative expenses. For the three months ended March 31, 2013 and 2014, selling, general and administrative expenses includes an amount of $91 and $137, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies | ' |
21. Commitments and contingencies | |
Capital commitments | |
As of December 31, 2013 and March 31, 2014, the Company has committed to spend $4,491 and $6,171, 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 $11,086 and $9,244 as of December 31, 2013 and March 31, 2014, 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 damage 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 units (“STPI”) 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. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
22. Subsequent Events | |
Buyback of shares | |
On March 5, 2014, the Company announced its intention to purchase up to $300,000 in value of its common shares through a modified “Dutch auction” tender offer. Pursuant to this offer, shareholders of the Company had the option to tender some or all of their shares at a price per share of not less than $16.50 and not greater than $18.00. Subsequent to the end of the quarter, on April 8, 2014, the Company purchased 17,292,842 of its common shares at a price of $17.50 per share for an aggregate amount of approximately $302,625. | |
Acquisition | |
On April 23, 2014, the Company entered into a definitive agreement to acquire all of the outstanding equity of each of Pharmalink Consulting Limited, a company incorporated under the laws of England and Wales, and Pharmalink Consulting Inc., a company incorporated under the laws of California, USA, (collectively referred to as “Pharmalink”) for cash consideration of $124,320, subject to adjustment for closing date cash, debt and working capital. The agreement also provides for contingent earn-out consideration ranging from $0 to $24,864. The closing of the transaction is subject to certain customary closing conditions. Pharmalink is a leading provider of regulatory affairs services to the life sciences industry. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
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, 2013. | |||||
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 the interim periods are not necessarily indicative of the 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 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. | |||||
The noncontrolling interest disclosed in the accompanying unaudited interim consolidated financial statements represents the noncontrolling partners’ interest in the operation of Genpact Netherlands B.V. and the profits or losses associated with the noncontrolling interest in those operations. The noncontrolling partners of Genpact Netherlands B.V. are individually liable for the tax obligations on their shares of profit as it is a partnership and, accordingly, noncontrolling interest relating to Genpact Netherlands B.V. has been computed prior to tax and disclosed accordingly in the unaudited interim 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, the carrying amount of property, plant and equipment, intangibles and goodwill, the reserve for doubtful receivables, the valuation allowance for deferred tax assets, the valuation of derivative financial instruments, the measurements of stock-based compensation, assets and obligations related to employee benefits, 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 consolidated financial statements. | |||||
Business Combinations | ' | ||||
(c) Business combinations, goodwill and other intangible assets | |||||
The Company accounts for its business combinations by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any noncontrolling 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 the 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 the reporting unit exceeds the fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs the 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 the reporting unit below its carrying amount. See Note 9 for information and related disclosures. | |||||
Intangible Assets | ' | ||||
Intangible assets acquired 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 | ||||
Contract-related intangible assets | 1 year | ||||
Other intangible assets | 3-9 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. | |||||
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, short term deposits, 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 28% and 24% of receivables as of December 31, 2013 and March 31, 2014, respectively. GE accounted for 23% and 21% of revenues for the three months ended March 31, 2013 and 2014, respectively. | |||||
Recently adopted accounting pronouncements | ' | ||||
(e) Recently 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 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, 2014, the Company adopted FASB ASU 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon De-recognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-05”). This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. | ||||
• | Effective January 1, 2014, the Company adopted FASB ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). This new guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows: to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. | ||||
Reclassification | ' | ||||
(f) 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. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Estimated Useful Lives of Intangible Assets Acquired | ' | ||||
Intangible assets acquired 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 | ||||
Contract-related intangible assets | 1 year | ||||
Other intangible assets | 3-9 years |
EarnOut_Consideration_and_Defe1
Earn-Out Consideration and Deferred Consideration (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Re-Measured Fair Value of Earn-Out Consideration with Corresponding Changes in Consolidated Statements of Income | ' | ||||||||
As of March 31, 2014, the Company re-measured the fair value of such earn-out consideration with corresponding changes in “Other operating (income) expense, net” in the Consolidated Statements of Income as follows: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Decrease in fair value of earn-out consideration for Triumph Companies | $ | (214 | ) | $ | (877 | ) | |||
Decrease in fair value of earn-out consideration for HPP | — | (765 | ) | ||||||
Increase in fair value of earn-out consideration for Empower | 267 | — | |||||||
$ | 53 | $ | (1,642 | ) |
Cash_and_Cash_Equivalents_Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and cash equivalents as of December 31, 2013 and March 31, 2014 comprise: | |||||||||
As of December 31, | As of March 31, | ||||||||
2013 | 2014 | ||||||||
Deposits with banks | $ | 123,545 | $ | 142,179 | |||||
Other cash and bank balances | 447,731 | 425,087 | |||||||
Total | $ | 571,276 | $ | 567,266 | |||||
Accounts_Receivable_Net_of_Res1
Accounts Receivable, Net of Reserve for Doubtful Receivables (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Reserve for Doubtful Receivables | ' | ||||||||
The following table provides details of the reserve for doubtful receivables recorded by the Company: | |||||||||
As of December 31, 2013 | As of March 31, 2014 | ||||||||
Opening Balance as of January 1 | $ | 9,073 | $ | 16,560 | |||||
Additions charged to cost and expense | 11,420 | 197 | |||||||
Deductions | (3,933 | ) | (1,012 | ) | |||||
Closing Balance | $ | 16,560 | $ | 15,745 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 derivative instruments were determined using the following inputs as of December 31, 2013 and March 31, 2014: | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Derivative instruments (Note a) | $ | 7,963 | $ | — | $ | 7,963 | $ | — | |||||||||
Total | $ | 7,963 | $ | — | $ | 7,963 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (Note b) | $ | 213,941 | $ | — | $ | 213,941 | $ | — | |||||||||
Total | $ | 213,941 | $ | — | $ | 213,941 | $ | — | |||||||||
As of March 31, 2014 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Derivative instruments (Note a) | $ | 15,139 | $ | — | $ | 15,139 | $ | — | |||||||||
Total | $ | 15,139 | $ | — | $ | 15,139 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (Note b) | $ | 161,451 | $ | — | $ | 161,451 | $ | — | |||||||||
Total | $ | 161,451 | $ | — | $ | 161,451 | $ | — | |||||||||
(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. |
Derivative_financial_instrumen1
Derivative financial instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
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 | Balance sheet exposure asset (liability) | ||||||||||||||||||||||||||||
(note a) | (note b) | ||||||||||||||||||||||||||||
As of December 31, | As of March 31, | As of December 31, | As of March 31, | ||||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||
Foreign exchange forward contracts denominated in: | |||||||||||||||||||||||||||||
United States Dollars (sell) Indian Rupees (buy) | $ | 1,143,000 | $ | 1,327,000 | $ | (203,822 | ) | $ | (136,286 | ) | |||||||||||||||||||
United States Dollars (sell) Mexican Peso (buy) | 9,000 | 15,360 | (268 | ) | (148 | ) | |||||||||||||||||||||||
United States Dollars (sell) Philippines Peso (buy) | 52,200 | 83,800 | (2,357 | ) | (2,751 | ) | |||||||||||||||||||||||
Euro (sell) United States Dollars (buy) | 43,779 | 57,313 | (2,434 | ) | (1,765 | ) | |||||||||||||||||||||||
Euro (sell) Hungarian Forints (buy) | 4,121 | 3,102 | 131 | (2 | ) | ||||||||||||||||||||||||
Euro (sell) Romanian Leu (buy) | 61,977 | 58,241 | 1,751 | 1,725 | |||||||||||||||||||||||||
Japanese Yen (sell) Chinese Renminbi (buy) | 30,731 | 64,639 | 1,970 | (1,421 | ) | ||||||||||||||||||||||||
Pound Sterling (sell) United States Dollars (buy) | 94,338 | 126,462 | (4,312 | ) | (4,402 | ) | |||||||||||||||||||||||
Australian Dollars (sell) United States Dollars (buy) | 85,156 | 125,351 | 3,363 | (1,262 | ) | ||||||||||||||||||||||||
$ | (205,978 | ) | $ | (146,312 | ) | ||||||||||||||||||||||||
(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 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. | ||||||||||||||||||||||||||||
Fair Value of Derivative Instruments and Location in Financial Statements | ' | ||||||||||||||||||||||||||||
The fair value of the 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, | As of March 31, | As of December 31, | As of March 31, | ||||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets | $ | 6,098 | $ | 11,080 | $ | — | $ | 2 | |||||||||||||||||||||
Other assets | $ | 1,865 | $ | 4,057 | $ | — | $ | — | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | $ | 83,667 | $ | 70,385 | $ | 26 | $ | — | |||||||||||||||||||||
Other liabilities | $ | 130,248 | $ | 91,066 | $ | — | $ | — | |||||||||||||||||||||
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, | |||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||
Before-Tax | Tax | Net of tax | Before-Tax | Tax | Net of tax | ||||||||||||||||||||||||
amount | (Expense) | Amount | amount | (Expense) | Amount | ||||||||||||||||||||||||
or Benefit | or Benefit | ||||||||||||||||||||||||||||
Opening balance as of January 1 | $ | (163,756 | ) | $ | 59,070 | $ | (104,686 | ) | $ | (205,952 | ) | $ | 72,612 | $ | (133,340 | ) | |||||||||||||
Net gains (losses) reclassified into statement of income on completion of hedged transactions | (7,240 | ) | 2,920 | (4,320 | ) | (12,400 | ) | 4,356 | (8,044 | ) | |||||||||||||||||||
Changes in fair value of effective portion of outstanding derivatives, net | 22,299 | (7,089 | ) | 15,210 | 47,238 | (17,290 | ) | 29,948 | |||||||||||||||||||||
Gain (loss) on cash flow hedging derivatives, net | 29,539 | (10,009 | ) | 19,530 | 59,638 | (21,646 | ) | 37,992 | |||||||||||||||||||||
Closing balance as of March 31 | $ | (134,217 | ) | $ | 49,061 | $ | (85,156 | ) | $ | (146,314 | ) | $ | 50,966 | $ | (95,348 | ) | |||||||||||||
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | ' | ||||||||||||||||||||||||||||
The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: | |||||||||||||||||||||||||||||
Derivatives in | Amount of Gain (Loss) | Location of | Amount of Gain (Loss) | Location of Gain | Amount of Gain (Loss) | ||||||||||||||||||||||||
Cash Flow | recognized in OCI on | Gain (Loss) | reclassified from OCI into | (Loss) recognized | recognized in income on | ||||||||||||||||||||||||
Hedging | Derivatives (Effective | reclassified | Statement of Income | in Income on | Derivatives (Ineffective | ||||||||||||||||||||||||
Relationships | Portion) | from OCI into | (Effective Portion) | Derivatives | Portion and Amount | ||||||||||||||||||||||||
Statement of | (Ineffective | excluded from Effectiveness | |||||||||||||||||||||||||||
Income | Portion and | Testing) | |||||||||||||||||||||||||||
(Effective | Amount excluded | ||||||||||||||||||||||||||||
Portion) | from | ||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||
Three months ended | Three months ended | Testing) | Three months ended | ||||||||||||||||||||||||||
March 31, | March 31, | March 31, | |||||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||
Forward foreign exchange contracts | $ | 22,299 | $ | 47,238 | Revenue | $ | 981 | $ | (670 | ) | Foreign exchange | $ | — | $ | — | ||||||||||||||
(gains) losses, | |||||||||||||||||||||||||||||
net | |||||||||||||||||||||||||||||
Cost of revenue | (6,609 | ) | (9,398 | ) | |||||||||||||||||||||||||
Selling, general and administrative expenses | (1,612 | ) | (2,332 | ) | |||||||||||||||||||||||||
$ | 22,299 | $ | 47,238 | $ | (7,240 | ) | $ | (12,400 | ) | $ | — | $ | — | ||||||||||||||||
Non-designated Hedges | |||||||||||||||||||||||||||||
Derivatives not designated | Location of (Gain) Loss | Amount of (Gain) Loss recognized in | |||||||||||||||||||||||||||
as hedging instruments | recognized in Statement of | Statement of Income on Derivatives | |||||||||||||||||||||||||||
Income on Derivatives | Three months ended March 31, | ||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||
Forward foreign exchange contracts (Note a) | Foreign exchange (gains) losses, net | $ | (4,001 | ) | $ | (27 | ) | ||||||||||||||||||||||
$ | (4,001 | ) | $ | (27 | ) | ||||||||||||||||||||||||
(a) | These forward foreign exchange contracts were entered into to hedge the 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. |
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment, Net | ' | ||||||||
Property, plant and equipment, net consist of the following: | |||||||||
As of December 31, | As of March 31, | ||||||||
2013 | 2014 | ||||||||
Property, plant and equipment, gross | $ | 502,893 | $ | 516,913 | |||||
Less: Accumulated depreciation and amortization | (329,689 | ) | (346,605 | ) | |||||
Property, plant and equipment, net | $ | 173,204 | $ | 170,308 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Changes in Goodwill | ' | ||||||||||||||||||||||||
The following table presents the changes in goodwill for the year ended December 31, 2013 and three months ended March 31, 2014: | |||||||||||||||||||||||||
As of December 31, 2013 | As of March 31, 2014 | ||||||||||||||||||||||||
Opening balance | $ | 956,064 | $ | 953,849 | |||||||||||||||||||||
Goodwill relating to acquisitions consummated during the period | 37,918 | — | |||||||||||||||||||||||
Goodwill relating to divestitures consummated during the period | (3,450 | ) | — | ||||||||||||||||||||||
Impact of measurement period adjustments | (362 | ) | — | ||||||||||||||||||||||
Effect of exchange rate fluctuations | (36,321 | ) | 10,239 | ||||||||||||||||||||||
Closing balance | $ | 953,849 | $ | 964,088 | |||||||||||||||||||||
Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination | ' | ||||||||||||||||||||||||
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, 2013 | As of March 31, 2014 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
carrying | amortization | carrying | amortization | ||||||||||||||||||||||
amount | amount | ||||||||||||||||||||||||
Customer-related intangible assets | $ | 288,983 | $ | 213,878 | $ | 75,105 | $ | 288,111 | $ | 217,887 | $ | 70,224 | |||||||||||||
Marketing-related intangible assets | 37,919 | 20,545 | 17,374 | 38,078 | 21,478 | 16,600 | |||||||||||||||||||
Contract-related intangible assets | 1,121 | 1,121 | — | 1,156 | 1,156 | — | |||||||||||||||||||
Other intangible assets | 9,124 | 2,487 | 6,637 | 13,177 | 2,675 | 10,502 | |||||||||||||||||||
$ | 337,147 | $ | 238,031 | $ | 99,116 | $ | 340,522 | $ | 243,196 | $ | 97,326 | ||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Maturity Profile of Term Loan, Net of Debt Amortization Expense | ' | ||||
The maturity profile of the term loan, net of debt amortization expense, is as follows: | |||||
Year ended | Amount | ||||
2014 | $ | 3,191 | |||
2015 | 4,288 | ||||
2016 | 4,306 | ||||
2017 | 4,338 | ||||
2018 | 4,363 | ||||
2019 | 636,306 | ||||
$ | 656,792 | ||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Net Defined Benefit Plan Costs | ' | ||||||||
Net defined benefit plan costs for the three months ended March 31, 2013 and 2014 include the following components: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Service costs | $ | 936 | $ | 1,190 | |||||
Interest costs | 451 | 619 | |||||||
Amortization of actuarial loss | 167 | 78 | |||||||
Expected return on plan assets | (220 | ) | (447 | ) | |||||
Net Gratuity Plan costs | $ | 1,334 | $ | 1,440 | |||||
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | ' | ||||||||
During the three months ended March 31, 2013 and 2014, the Company contributed the following amounts to defined contribution plans in various jurisdictions: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
India | $ | 3,705 | $ | 3,575 | |||||
U.S. | 1,247 | 1,591 | |||||||
U.K. | 376 | 545 | |||||||
Hungary | 6 | 4 | |||||||
China | 3,469 | 3,537 | |||||||
Mexico | 14 | 8 | |||||||
Morocco | 30 | 2 | |||||||
South Africa | 69 | 47 | |||||||
Hong Kong | 6 | 5 | |||||||
Netherlands | 356 | 629 | |||||||
Philippines | 4 | 3 | |||||||
Singapore | 3 | 9 | |||||||
Japan | 521 | 479 | |||||||
Total | 9,806 | 10,434 | |||||||
Stockbased_compensation_Tables
Stock-based compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
A summary of stock option activity during the three months ended March 31, 2014 is set out below: | |||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||
Shares arising | Weighted | Weighted average | Aggregate | ||||||||||||||
out of options | average | remaining | intrinsic | ||||||||||||||
exercise price | contractual life | value | |||||||||||||||
(years) | |||||||||||||||||
Outstanding as of January 1, 2014 | 11,102,163 | $ | 12.4 | 5.2 | — | ||||||||||||
Granted | — | — | — | — | |||||||||||||
Forfeited | (150,673 | ) | 19.1 | — | — | ||||||||||||
Expired | (27,228 | ) | 12.32 | — | — | ||||||||||||
Exercised* | (1,430,980 | ) | 3.81 | — | 19,475 | ||||||||||||
Outstanding as of March 31, 2014 | 9,493,282 | $ | 13.59 | 5.4 | $ | 43,633 | |||||||||||
Vested as of March 31, 2014 and expected to vest thereafter (Note a) | 9,203,532 | $ | 13.32 | 5.4 | $ | 43,620 | |||||||||||
Vested and Exercisable as of March 31, 2014 | 5,874,773 | $ | 10.25 | 3.2 | $ | 42,141 | |||||||||||
Weighted average grant date fair value of grants during the period | $ | — | |||||||||||||||
(a) | Options expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
* | Out of this, 1,000,000 options have been net settled upon exercise by issuing 650,925 shares (net of minimum statutory withholding taxes). | ||||||||||||||||
Summary of Restricted Share Units Granted | ' | ||||||||||||||||
A summary of RSUs granted during the three months ended March 31, 2014 is set out below: | |||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||
Number of Restricted | Weighted Average | ||||||||||||||||
Share Units | Grant Date Fair Value | ||||||||||||||||
Outstanding as of January 1, 2014 | 871,772 | $ | 13.96 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested* | (9,655 | ) | 14.39 | ||||||||||||||
Forfeited | (14,238 | ) | 14 | ||||||||||||||
Outstanding as of March 31, 2014 | 847,879 | $ | 13.95 | ||||||||||||||
Expected to vest (Note a) | 770,866 | ||||||||||||||||
(b) | RSUs expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
* | Vested RSUs have been net settled upon vesting by issuing 5,524 shares (net of minimum statutory withholding taxes). | ||||||||||||||||
Summary of Performance Units Activity | ' | ||||||||||||||||
A summary of PU activity during the three months ended March 31, 2014 is set out below: | |||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||
Number of Performance | Weighted | Maximum Shares Eligible to | |||||||||||||||
Units | Average Grant | Receive | |||||||||||||||
Date Fair Value | |||||||||||||||||
Outstanding as of January 1, 2014 | 3,913,733 | $ | 16.44 | 6,149,018 | |||||||||||||
Granted | |||||||||||||||||
Vested* | (139,930 | ) | 12.04 | (139,930 | ) | ||||||||||||
Forfeited** | (2,437,549 | ) | 17.78 | (2,437,549 | ) | ||||||||||||
Addition due to achievement of higher than target performance goals* | 139,930 | 12.04 | |||||||||||||||
Reduction due to achievement of lower than maximum performance goals*** | (2,095,355 | ) | |||||||||||||||
Outstanding as of March 31, 2014 | 1,476,184 | $ | 14.22 | 1,476,184 | |||||||||||||
Expected to vest (a) | 1,363,036 | ||||||||||||||||
(a) | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||||||||||||||||
* | Represents an additional award of 122,490 and 17,440 shares for the PUs granted in March 2011 and June 2011, respectively, on account of achievement of higher than target performance as certified by the compensation committee based on the Company’s audited financial statements. | ||||||||||||||||
697,853 and 77,619 shares, including the additional awards, were issued in March 2014 with respect to grants made in March 2011 and June 2011, respectively, after withholding shares to the extent of the minimum statutory withholding taxes. | |||||||||||||||||
** | Includes 251,427 shares underlying PUs granted in May 2011, 1,244,507 shares underlying PUs granted in March 2013 and 630,000 shares underlying PUs granted in May 2013, respectively, which have been forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. | ||||||||||||||||
*** | Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest for PUs granted in March 2011 and June 2011, respectively, as a result of the compensation committee’s certification of the level of achievement of the performance conditions based on the Company’s audited financial statements. Also includes a reduction of 616,568 shares for grants made in March 2013, 985,500 shares for grants made in May 2013 and 121,000 shares for grants made in May 2011, respectively, on account of non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share | ' | ||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Net income available to Genpact Limited common shareholders | $ | 46,737 | $ | 50,613 | |||||
Weighted average number of common shares used in computing basic earnings per common share | 227,227,226 | 232,093,917 | |||||||
Dilutive effect of stock-based awards | 6,393,525 | 5,181,734 | |||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 233,620,751 | 237,275,651 | |||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||
Basic | $ | 0.21 | $ | 0.22 | |||||
Diluted | $ | 0.2 | $ | 0.21 | |||||
Cost_of_Revenue_Tables
Cost of Revenue (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Cost of Revenue | ' | ||||||||
Cost of revenue consists of the following: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Personnel expenses | $ | 218,435 | $ | 227,027 | |||||
Operational expenses | 81,446 | 86,421 | |||||||
Depreciation and amortization | 11,845 | 10,841 | |||||||
$ | 311,726 | $ | 324,289 | ||||||
Selling_General_and_Administra1
Selling, General and Administrative Expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Selling, General and Administrative Expenses | ' | ||||||||
Selling, general and administrative expenses consist of the following: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Personnel expenses | $ | 82,128 | $ | 89,506 | |||||
Operational expenses | 28,951 | 30,929 | |||||||
Depreciation and amortization | 2,145 | 2,063 | |||||||
$ | 113,224 | $ | 122,498 | ||||||
Other_Operating_Income_Expense1
Other Operating (Income) Expense, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Operating (Income) Expense, Net | ' | ||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Other operating (income) expense | $ | (655 | ) | $ | (220 | ) | |||
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | 53 | (1,642 | ) | ||||||
Other operating (income) expense, net | $ | (602 | ) | $ | (1,862 | ) | |||
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Income (Expense), Net | ' | ||||||||
Other income (expense), net consists of the following: | |||||||||
Three months ended March 31, | |||||||||
2013 | 2014 | ||||||||
Interest income | $ | 5,273 | $ | 1,359 | |||||
Interest expense | (9,938 | ) | (7,761 | ) | |||||
Other income (expense) | (446 | ) | (131 | ) | |||||
Other income (expense), net | $ | (5,111 | ) | $ | (6,533 | ) | |||
Income_taxes_Tables
Income taxes (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions | ' | ||||
The following table summarizes the activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2014 to March 31, 2014: | |||||
Opening Balance at January 1 | $ | 21,832 | |||
Increase related to prior year tax positions | 586 | ||||
Decrease related to prior year tax positions | (51 | ) | |||
Effect of exchange rate changes | 553 | ||||
Closing Balance at March 31 | $ | 22,920 | |||
Organization_Additional_Inform
Organization - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Aug. 30, 2012 | Mar. 31, 2014 | Aug. 01, 2012 | Dec. 14, 2012 | Dec. 14, 2012 | Aug. 31, 2007 | Mar. 24, 2010 | Dec. 31, 2012 | Mar. 31, 2014 |
Employee | General Atlantic | Oak Hill Capital Partners | Existing Shareholders | General Electric Company | Maximum | Fortune Global 500 | |||
Country | General Electric Company | Minimum | |||||||
Customer | |||||||||
Organization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years of service | ' | '15 years | ' | ' | ' | ' | ' | ' | ' |
Number of professionals around the globe, minimum | ' | 64,000 | ' | ' | ' | ' | ' | ' | ' |
Number of countries in which entity operates | ' | 24 | ' | ' | ' | ' | ' | ' | ' |
Number of clients | ' | ' | ' | ' | ' | ' | ' | ' | 100 |
Number of shares sold | ' | ' | ' | ' | ' | 17,647,059 | ' | ' | ' |
Percent of ownership held | ' | ' | ' | 2.40% | 2.40% | ' | 9.10% | 5.00% | ' |
Common stock shares to be purchased by affiliates of Bain Capital Partners | ' | ' | 67,750,678 | ' | ' | ' | ' | ' | ' |
Termination of credit facility | $380,000 | ' | ' | ' | ' | ' | ' | ' | ' |
New credit facility agreement | 925,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share | $2.24 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend paid | $501,620 | ' | ' | ' | ' | ' | ' | ' | ' |
Declaration of special cash dividend, declared date | 30-Aug-12 | ' | ' | ' | ' | ' | ' | ' | ' |
Declaration of special cash dividend, payment date | 24-Sep-12 | ' | ' | ' | ' | ' | ' | ' | ' |
Declaration of special cash dividend, record date | 10-Sep-12 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated_Useful_Lives_of_Inta
Estimated Useful Lives of Intangible Assets Acquired (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Customer-Related Intangible Assets | Minimum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets estimated useful lives | '1 year |
Customer-Related Intangible Assets | Maximum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets estimated useful lives | '14 years |
Marketing-Related Intangible Assets | Minimum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets estimated useful lives | '1 year |
Marketing-Related Intangible Assets | Maximum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets estimated useful lives | '10 years |
Contract-Related Intangible Assets | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets estimated useful lives | '1 year |
Other Intangible Assets | Minimum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets estimated useful lives | '3 years |
Other Intangible Assets | Maximum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets estimated useful lives | '9 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (General Electric Company) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
General Electric Company | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of accounts receivables | 24.00% | ' | 28.00% |
Percentage of revenues | 21.00% | 23.00% | ' |
Recovered_Sheet1
Earn-out Consideration and Deferred Consideration - Additional Information (Detail) | 1 Months Ended | |||
Aug. 24, 2011 | Oct. 03, 2011 | Sep. 04, 2012 | Aug. 17, 2012 | |
High Performance Partners LLC | Empower Research, LLC | Atyati Technologies Private Limited | Triumph Engineering Corporation and Triumph On-Demand Inc | |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Business acquisition, date | 24-Aug-11 | 3-Oct-11 | 4-Sep-12 | 17-Aug-12 |
ReMeasured_Fair_Value_of_EarnO
Re-Measured Fair Value of Earn-Out Consideration with Corresponding Changes in Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of Changes in Fair Value of Contingent Consideration [Line Items] | ' | ' |
Increase (decrease) in fair value of earn-out consideration | ($1,642) | $53 |
Triumph Engineering Corporation and Triumph On-Demand Inc | ' | ' |
Schedule of Changes in Fair Value of Contingent Consideration [Line Items] | ' | ' |
Decrease in fair value of earn-out consideration | -877 | -214 |
High Performance Partners LLC | ' | ' |
Schedule of Changes in Fair Value of Contingent Consideration [Line Items] | ' | ' |
Decrease in fair value of earn-out consideration | -765 | ' |
Empower Research, LLC | ' | ' |
Schedule of Changes in Fair Value of Contingent Consideration [Line Items] | ' | ' |
Increase in fair value of earn-out consideration | ' | $267 |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Deposits with banks | $142,179 | $123,545 | ' | ' |
Other cash and bank balances | 425,087 | 447,731 | ' | ' |
Total | $567,266 | $571,276 | $474,573 | $459,228 |
Cash_and_Cash_Equivalents_Addi
Cash and Cash Equivalents - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Line Items] | ' | ' |
Restricted cash balances | $777 | $861 |
Reserve_for_Doubtful_Receivabl
Reserve for Doubtful Receivables (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Provisions for Doubtful Accounts [Line Items] | ' | ' | ' |
Opening balance | $16,560 | $9,073 | $9,073 |
Additions charged to cost and expense | 197 | 3,450 | 11,420 |
Deductions | -1,012 | ' | -3,933 |
Closing Balance | $15,745 | ' | $16,560 |
Accounts_Receivable_Net_of_Res2
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross accounts receivable | $528,961 | $521,677 | ' |
Reserve for doubtful receivables | 15,745 | 16,560 | 9,073 |
Net accounts receivable | 513,216 | 505,117 | ' |
Accounts receivable due after one year | 12,802 | 15,844 | ' |
Accounts receivable from related parties | 71 | 403 | ' |
Reserve for doubtful receivables from related parties | $0 | $0 | ' |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities Measured on Recurring Basis, Including Derivative Instruments, U.S. Treasury Bills and Notes, and Loans Held for Sale (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative instrument, asset | $15,139 | [1] | $7,963 | [1] |
Total, assets | 15,139 | 7,963 | ||
Derivative instrument, liability | 161,451 | [2] | 213,941 | [2] |
Total, liabilities | 161,451 | 213,941 | ||
Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative instrument, asset | 15,139 | [1] | 7,963 | [1] |
Total, assets | 15,139 | 7,963 | ||
Derivative instrument, liability | 161,451 | [2] | 213,941 | [2] |
Total, liabilities | $161,451 | $213,941 | ||
[1] | Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. | |||
[2] | Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. |
Recovered_Sheet2
Derivative Financial Instruments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Derivative [Line Items] | ' |
Forward foreign exchange contracts, minimum maturity period | '0 months |
Forward foreign exchange contracts, maximum maturity period | '57 months |
Aggregate_Notional_Principal_A
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Derivative [Line Items] | ' | ' | ||
Derivative financial instrument, balance sheet exposure asset (liability) | ($146,312) | [1] | ($205,978) | [1] |
United States Dollars (sell) Indian Rupees (buy) | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative instrument notional principal amount | 1,327,000 | [2] | 1,143,000 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -136,286 | [1] | -203,822 | [1] |
United States Dollars (sell) Mexican Peso (buy) | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative instrument notional principal amount | 15,360 | [2] | 9,000 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -148 | [1] | -268 | [1] |
United States Dollars (sell) Philippines Peso (buy) | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative instrument notional principal amount | 83,800 | [2] | 52,200 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -2,751 | [1] | -2,357 | [1] |
Euro (sell) United States Dollars (buy) | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative instrument notional principal amount | 57,313 | [2] | 43,779 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -1,765 | [1] | -2,434 | [1] |
Euro (sell) Hungarian Forints (buy) | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative instrument notional principal amount | 3,102 | [2] | 4,121 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -2 | [1] | 131 | [1] |
Euro (Sell) Romanian Leu (Buy) | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative instrument notional principal amount | 58,241 | [2] | 61,977 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | 1,725 | [1] | 1,751 | [1] |
Japanese Yen (sell) Chinese Renminbi (buy) | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative instrument notional principal amount | 64,639 | [2] | 30,731 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -1,421 | [1] | 1,970 | [1] |
Pound Sterling (sell) United States Dollars (buy) | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative instrument notional principal amount | 126,462 | [2] | 94,338 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -4,402 | [1] | -4,312 | [1] |
Australian Dollars (sell) United States Dollars (buy) | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative instrument notional principal amount | 125,351 | [2] | 85,156 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | ($1,262) | [1] | $3,363 | [1] |
[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 or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. |
Fair_Value_of_Derivative_Instr
Fair Value of Derivative Instruments and Location in Financial Statements (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash Flow Hedging | Prepaid Expenses and Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of assets | $11,080 | $6,098 |
Cash Flow Hedging | Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of assets | 4,057 | 1,865 |
Cash Flow Hedging | Accrued Expenses and Other Current Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of liabilities | 70,385 | 83,667 |
Cash Flow Hedging | Other Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of liabilities | 91,066 | 130,248 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of assets | 2 | ' |
Not Designated as Hedging Instrument | Accrued Expenses and Other Current Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of liabilities | ' | $26 |
Cash_Flow_Hedges_Gains_Losses_
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Opening balance, before-tax amount | ($205,952) | ($163,756) |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, before-tax amount | -12,400 | -7,240 |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | 47,238 | 22,299 |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | 59,638 | 29,539 |
Closing balance, before-tax amount | -146,314 | -134,217 |
Opening balance, tax (expense) or benefit | 72,612 | 59,070 |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, tax (expense) or benefit | 4,356 | 2,920 |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | -17,290 | -7,089 |
Gain (loss) on cash flow hedging derivatives, net | -21,646 | -10,009 |
Closing balance, tax (expense) or benefit | 50,966 | 49,061 |
Opening balance, net of tax amount | -133,340 | -104,686 |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, net of tax amount | -8,044 | -4,320 |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | 29,948 | 15,210 |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | 37,992 | 19,530 |
Closing balance, net of tax amount | ($95,348) | ($85,156) |
Gains_or_Losses_Recorded_as_Co
Gains or Losses Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $47,238 | $22,299 | ||
Amount of Gain (Loss) recognized in income on Derivative (Ineffective Portion and Amount excluded from Effectiveness Testing) | ' | ' | ||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -12,400 | -7,240 | ||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivative | -27 | -4,001 | ||
Revenue | ' | ' | ||
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -670 | 981 | ||
Cost of Revenue | ' | ' | ||
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -9,398 | -6,609 | ||
Selling, General and Administrative Expenses | ' | ' | ||
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -2,332 | -1,612 | ||
Forward Foreign Exchange Contracts (Note A) | ' | ' | ||
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | 47,238 | 22,299 | ||
Amount of Gain (Loss) recognized in income on Derivative (Ineffective Portion and Amount excluded from Effectiveness Testing) | ' | ' | ||
Forward Foreign Exchange Contracts (Note A) | Foreign Exchange (Gains) Losses, Net | ' | ' | ||
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivative | ($27) | [1] | ($4,001) | [1] |
[1] | These forward foreign exchange contracts were entered into to hedge the 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. |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $516,913 | $502,893 |
Less: Accumulated depreciation and amortization | -346,605 | -329,689 |
Property, plant and equipment, net | $170,308 | $173,204 |
Property_Plant_and_Equipment_N3
Property, Plant and Equipment, Net - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation and amortization | $12,341 | $13,579 |
Depreciation Expense on Property, Plant And Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation and amortization | 10,748 | 11,433 |
Computer Software Amortization | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation and amortization | 2,156 | 2,557 |
Effect of Reclassification of Foreign Exchange (Gains) Losses | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation and amortization | $563 | $411 |
Changes_in_Goodwill_Detail
Changes in Goodwill (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Opening balance | $953,849 | $956,064 |
Goodwill relating to acquisitions consummated during the period | ' | 37,918 |
Goodwill relating to divestitures consummated during the period | ' | -3,450 |
Impact of measurement period adjustments | ' | -362 |
Effect of exchange rate fluctuations | 10,239 | -36,321 |
Closing balance | $964,088 | $953,849 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Goodwill deductible for tax purposes | $37,763 | ' | $38,512 |
Amortization of acquired intangible assets | $6,018 | $5,551 | ' |
Intangible_Assets_Acquired_Eit
Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | $340,522 | $337,147 |
Accumulated amortization | 243,196 | 238,031 |
Net | 97,326 | 99,116 |
Customer-Related Intangible Assets | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 288,111 | 288,983 |
Accumulated amortization | 217,887 | 213,878 |
Net | 70,224 | 75,105 |
Marketing-Related Intangible Assets | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 38,078 | 37,919 |
Accumulated amortization | 21,478 | 20,545 |
Net | 16,600 | 17,374 |
Contract-Related Intangible Assets | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 1,156 | 1,121 |
Accumulated amortization | 1,156 | 1,121 |
Other Intangible Assets | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 13,177 | 9,124 |
Accumulated amortization | 2,675 | 2,487 |
Net | $10,502 | $6,637 |
ShortTerm_Borrowing_Additional
Short-Term Borrowing - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Aug. 30, 2012 | Jun. 30, 2013 | Aug. 30, 2012 | Mar. 31, 2014 | Dec. 31, 2013 |
Revolving Credit Facility | Revolving Credit Facility | Fund-Based Credit Facility | Fund-Based Credit Facility | ||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Fund-based and non-fund-based credit facilities limits available | $14,322 | $13,906 | ' | ' | ' | ' | ' |
Utilization of credit facility for non fund-based usage | 7,202 | 6,689 | ' | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | ' | ' | 925,000 | ' | 250,000 | ' | ' |
Credit facility, amount utilized | $2,042 | $4,397 | ' | ' | ' | ' | ' |
Margin over LIBOR | 2.75% | 2.75% | ' | 2.50% | ' | 2.50% | 2.50% |
Percentage of commitment fee | 0.50% | ' | ' | ' | ' | ' | ' |
Revolving credit facility, expiration month and year | '2017-08 | ' | ' | ' | ' | ' | ' |
Line of credit covenant condition | 'Indebtedness under these facilities is secured by certain assets of the Company and the credit agreement contains certain covenants, including a maximum leverage covenant that becomes effective only if the revolving facility is drawn for $50,000 or more. | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Aug. 30, 2012 | Mar. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | $925,000 | ' | ' | ' |
Credit facility, maximum borrowing capacity, outstanding | 380,000 | ' | ' | ' |
Margin over LIBOR | ' | 2.75% | ' | 2.75% |
LIBOR floor rate | ' | 0.75% | 0.75% | 0.75% |
Term loan amounts outstanding, gross | ' | ' | 671,625 | ' |
Unmodified portion of Term Loan | ' | ' | 553,589 | ' |
Extinguishment of outstanding term loan | ' | ' | 118,036 | ' |
Increase in outstanding term loan | ' | ' | 121,410 | ' |
Term loan amounts outstanding | ' | 656,792 | ' | 657,864 |
Debt amortization expense | ' | 13,145 | ' | 13,761 |
Principal amount of term loan | ' | 675,000 | ' | ' |
Credit facility, frequency of payments | ' | 'Quarterly | ' | ' |
Percentage of Principal amount of existing credit facility to be paid periodically | ' | 0.25% | ' | ' |
Maturity date of term loan agreement | ' | 30-Aug-19 | ' | ' |
Term-Loan Credit Facility | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | 675,000 | ' | 675,000 | ' |
Margin over LIBOR | ' | ' | 2.75% | ' |
Revolving Credit Facility | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | 250,000 | ' | ' | ' |
Margin over LIBOR | ' | ' | 2.50% | ' |
Original Margin | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Margin over LIBOR | ' | ' | 3.25% | ' |
LIBOR floor rate | ' | ' | 1.00% | ' |
Term Loans | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Acceleration amortization of debt issuance cost | ' | ' | 3,103 | ' |
Revolving Credit Facilities | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Acceleration amortization of debt issuance cost | ' | ' | $54 | ' |
Maturity_Profile_of_Term_Loan_
Maturity Profile of Term Loan Net of Debt Amortization Expense (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-Term Debt | ' | ' |
2014 | $3,191 | ' |
2015 | 4,288 | ' |
2016 | 4,306 | ' |
2017 | 4,338 | ' |
2018 | 4,363 | ' |
2019 | 636,306 | ' |
Term loan amounts outstanding | $656,792 | $657,864 |
Net_Defined_Benefit_Plan_Costs
Net Defined Benefit Plan Costs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service costs | $1,190 | $936 |
Interest costs | 619 | 451 |
Amortization of actuarial loss | 78 | 167 |
Expected return on plan assets | -447 | -220 |
Net Gratuity Plan costs | $1,440 | $1,334 |
Amounts_Contributed_to_Defined
Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | $10,434 | $9,806 |
India | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 3,575 | 3,705 |
Americas | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 1,591 | 1,247 |
U.K. | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 545 | 376 |
Hungary | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 4 | 6 |
China | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 3,537 | 3,469 |
Mexico | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 8 | 14 |
Morocco | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 2 | 30 |
South Africa | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 47 | 69 |
Hong Kong | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 5 | 6 |
Netherlands | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 629 | 356 |
Philippines | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 3 | 4 |
Singapore | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | 9 | 3 |
Japan | ' | ' |
Defined Contribution Plans In Various Jurisdictions [Line Items] | ' | ' |
Defined contribution plans, contributed amount | $479 | $521 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Aug. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Apr. 11, 2012 | Sep. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 |
Person | 2007 Omnibus Plan | 2007 Omnibus Plan | 2007 Omnibus Plan | 2005 Omnibus Plan | Restricted Share Units | Stock Options | Restricted Share Units | Restricted Share Units | Restricted Share Units | Restricted Share Units | Performance Units | Performance Units | Performance Units | Employee Stock Purchase Plan | Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amended Omnibus Plan, increase in number of common shares authorized for issuance | ' | ' | ' | 6,314,496 | 2,544,327 | 5,593,200 | 495,915 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common shares authorized for issuance | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share | $2.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation cost | ' | $4,902 | $6,481 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation cost for options | ' | 21,521 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining requisite vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 8 months 12 days | ' | '1 year 7 months 6 days | ' | ' | ' | '9 months 18 days | ' | ' | ' |
Minimum vesting schedules, months | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' |
Maximum vesting schedules, years | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Vested, number of shares (units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,057 | 44,286 | ' | ' | 231,029 | ' | ' |
Common shares issued net of shares for tax withholdings | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,605 | ' | ' | ' | 138,035 | ' | ' | ' | ' |
Unrecognized stock-based compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,197 | ' | ' | ' | 4,970 | ' | ' | ' |
Award vesting rights, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 122.20% | ' | ' |
Transfer of minimum percentage of voting power of company for change of control | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employee affected | ' | 123 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental compensation cost | ' | 5,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period not yet recognized | ' | '1 year 10 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fair value per share allowed to eligible employees to purchase through payroll deductions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' |
Maximum percentage of employee's base salary allowed to be purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' |
Maximum dollar amount of common shares allowed to be purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' |
Common shares reserved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,200,000 | ' |
Number of common shares issued under ESPP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,534 | 23,575 |
Compensation expense for ESPP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $71 | $45 |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | |
Shares arising out of options | ' | ' | |
Outstanding, shares arising out of options, beginning balance | 11,102,163 | ' | |
Granted, shares arising out of options | ' | ' | |
Forfeited, shares arising out of options | -150,673 | ' | |
Expired, shares arising out of options | -27,228 | ' | |
Exercised, shares arising out of options | -1,430,980 | [1] | ' |
Outstanding, shares arising out of options, ending balance | 9,493,282 | 11,102,163 | |
Vested and expected to vest thereafter, shares arising out of options | 9,203,532 | [2] | ' |
Vested and exercisable, shares arising out of options | 5,874,773 | ' | |
Weighted average grant date fair value of grants during the period | ' | ' | |
Weighted average exercise price | ' | ' | |
Outstanding weighted average exercise price, beginning balance | $12.40 | ' | |
Granted, weighted average exercise price | ' | ' | |
Forfeited, weighted average exercise price | $19.10 | ' | |
Expired, weighted average exercise price | $12.32 | ' | |
Exercised, weighted average exercise price | $3.81 | [1] | ' |
Outstanding weighted average exercise price, ending balance | $13.59 | $12.40 | |
Vested and expected to vest thereafter, weighted average exercise price | $13.32 | [2] | ' |
Vested and exercisable, weighted average exercise price | $10.25 | ' | |
Weighted average remaining contractual life (years) | ' | ' | |
Outstanding weighted average remaining contractual life (years) | '5 years 4 months 24 days | '5 years 2 months 12 days | |
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | '5 years 4 months 24 days | ' | |
Vested and exercisable, weighted average remaining contractual life (years) | '3 years 2 months 12 days | ' | |
Aggregate intrinsic value | ' | ' | |
Exercised, aggregate intrinsic value | $19,475 | [1] | ' |
Outstanding aggregate intrinsic value, ending balance | 43,633 | ' | |
Vested and expected to vest thereafter, aggregate intrinsic value | 43,620 | ' | |
Vested and Exercisable, aggregate intrinsic value | $42,141 | ' | |
[1] | Out of this, 1,000,000 options have been net settled upon exercise by issuing 650,925 shares (net of minimum statutory withholding taxes). | ||
[2] | Options expected to vest reflect an estimated forfeiture rate. |
Summary_of_Stock_Option_Activi1
Summary of Stock Option Activity (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of options settled by issuing common shares | 1,000,000 |
Common shares issued upon exercise of option | 650,925 |
Summary_of_Restricted_Share_Un
Summary of Restricted Share Units Granted (Detail) (Restricted Share Units, USD $) | 3 Months Ended | |
Mar. 31, 2014 | ||
Restricted Share Units | ' | |
Number of Restricted Share Units | ' | |
Outstanding number of shares (Units), beginning balance | 871,772 | |
Granted, number of shares (Units) | ' | |
Vested, number of shares (Units) | -9,655 | [1] |
Forfeited, number of shares (Units) | -14,238 | |
Outstanding number of shares (Units), ending balance | 847,879 | |
Expected to vest, number of shares (Units) | 770,866 | [2] |
Weighted Average Grant Date Fair Value | ' | |
Outstanding weighted average grant date fair value, beginning balance | $13.96 | |
Granted, weighted average grant date fair value | ' | |
Vested, weighted average grant date fair value | $14.39 | [1] |
Forfeited, weighted average grant date fair value | $14 | |
Outstanding weighted average grant date fair value, ending balance | $13.95 | |
[1] | Vested RSUs have been net settled upon vesting by issuing 5,524 shares (net of minimum statutory withholding taxes). | |
[2] | RSUs expected to vest reflect an estimated forfeiture rate. |
Summary_of_Restricted_Share_Un1
Summary of Restricted Share Units Granted (Parenthetical) (Detail) (Restricted Share Units) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Share Units | ' |
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | ' |
Common shares issued net of shares for tax withholdings | 5,524 |
Summary_of_Performance_Units_A
Summary of Performance Units Activity (Detail) (Performance Units, USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
31-May-13 | Mar. 31, 2013 | Jun. 30, 2011 | 31-May-11 | Mar. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2011 | Jun. 30, 2011 | ||
Performance Units | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of Share Units | ' | ' | ' | ' | ' | ' | ' | ' | |
Outstanding number of shares (Units), beginning balance | ' | ' | ' | ' | ' | 3,913,733 | ' | ' | |
Granted, number of shares (Units) | ' | ' | ' | ' | ' | ' | 697,853 | 77,619 | |
Vested, number of shares (Units) | ' | ' | ' | ' | ' | -139,930 | [1] | ' | ' |
Forfeited, number of shares (Units) | -630,000 | ' | ' | -251,427 | -1,244,507 | -2,437,549 | [2] | ' | ' |
Addition due to achievement of higher than target performance goals, number of shares (Units) | ' | ' | ' | ' | ' | 139,930 | [1] | 122,490 | 17,440 |
Outstanding number of shares (Units), ending balance | ' | ' | ' | ' | ' | 1,476,184 | ' | ' | |
Expected to vest | ' | ' | ' | ' | ' | 1,363,036 | [3] | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | |
Outstanding weighted average grant date fair value, beginning balance | ' | ' | ' | ' | ' | $16.44 | ' | ' | |
Granted, weighted average grant date fair value | ' | ' | ' | ' | ' | ' | ' | ' | |
Vested, weighted average grant date fair value | ' | ' | ' | ' | ' | $12.04 | [1] | ' | ' |
Forfeited, weighted average grant date fair value | ' | ' | ' | ' | ' | $17.78 | [2] | ' | ' |
Addition due to achievement of higher than target performance goals, weighted average grant date fair value | ' | ' | ' | ' | ' | $12.04 | [1] | ' | ' |
Outstanding weighted average grant date fair value, ending balance | ' | ' | ' | ' | ' | $14.22 | ' | ' | |
Maximum shares eligible to receive | ' | ' | ' | ' | ' | ' | ' | ' | |
Outstanding maximum shares eligible to receive, beginning balance | ' | ' | ' | ' | ' | 6,149,018 | ' | ' | |
Granted, maximum shares eligible to receive | ' | ' | ' | ' | ' | ' | ' | ' | |
Vested, maximum shares eligible to receive | ' | ' | ' | ' | ' | -139,930 | [1] | ' | ' |
Forfeited, maximum shares eligible to receive | ' | ' | ' | ' | ' | -2,437,549 | [2] | ' | ' |
Reduction due to achievement of lower than maximum performance goals, maximum shares eligible to receive | -985,500 | -616,568 | -39,285 | -121,000 | -333,002 | -2,095,355 | [4] | ' | ' |
Outstanding maximum shares eligible to receive, ending balance | ' | ' | ' | ' | ' | 1,476,184 | ' | ' | |
[1] | Represents an additional award of 122,490 and 17,440 shares for the PUs granted in March 2011 and June 2011, respectively, on account of achievement of higher than target performance as certified by the compensation committee based on the Company's audited financial statements. 697,853 and 77,619, shares including the additional awards, were issued in March 2014 with respect to grants made in March 2011 and June 2011, respectively, after withholding shares to the extent of the minimum statutory withholding taxes. | ||||||||
[2] | Includes 251,427 shares underlying PUs granted in May 2011, 1,244,507 shares underlying PUs granted in March 2013 and 630,000 shares underlying PUs granted in May 2013, respectively, which have been forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company's audited financial statements. | ||||||||
[3] | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||||||||
[4] | Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest for PUs granted in March 2011 and June 2011, respectively, as a result of the compensation committee's certification of the level of achievement of the performance conditions based on the Company's audited financial statements. Also includes a reduction of 616,568 shares for grants made in March 2013, 985,500 shares for grants made in May 2013 and 121,000 shares for grants made in May 2011, respectively, on account of non-fulfillment of the performance conditions as certified by the compensation committee based on the Company's audited financial statements |
Summary_of_Performance_Units_A1
Summary of Performance Units Activity (Parenthetical) (Detail) (Performance Units) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
31-May-13 | Mar. 31, 2013 | Jun. 30, 2011 | 31-May-11 | Mar. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2011 | Jun. 30, 2011 | ||
Performance Units | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | |
Addition due to achievement of higher than target performance goals, number of shares (Units) | ' | ' | ' | ' | ' | 139,930 | [1] | 122,490 | 17,440 |
Granted, number of shares (Units) | ' | ' | ' | ' | ' | ' | 697,853 | 77,619 | |
Forfeited, number of shares (Units) | 630,000 | ' | ' | 251,427 | 1,244,507 | 2,437,549 | [2] | ' | ' |
Reduction due to achievement of lower than maximum performance goals, maximum shares eligible to receive | 985,500 | 616,568 | 39,285 | 121,000 | 333,002 | 2,095,355 | [3] | ' | ' |
[1] | Represents an additional award of 122,490 and 17,440 shares for the PUs granted in March 2011 and June 2011, respectively, on account of achievement of higher than target performance as certified by the compensation committee based on the Company's audited financial statements. 697,853 and 77,619, shares including the additional awards, were issued in March 2014 with respect to grants made in March 2011 and June 2011, respectively, after withholding shares to the extent of the minimum statutory withholding taxes. | ||||||||
[2] | Includes 251,427 shares underlying PUs granted in May 2011, 1,244,507 shares underlying PUs granted in March 2013 and 630,000 shares underlying PUs granted in May 2013, respectively, which have been forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company's audited financial statements. | ||||||||
[3] | Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest for PUs granted in March 2011 and June 2011, respectively, as a result of the compensation committee's certification of the level of achievement of the performance conditions based on the Company's audited financial statements. Also includes a reduction of 616,568 shares for grants made in March 2013, 985,500 shares for grants made in May 2013 and 121,000 shares for grants made in May 2011, respectively, on account of non-fulfillment of the performance conditions as certified by the compensation committee based on the Company's audited financial statements |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Number of stock options outstanding but not included in the computation of diluted earnings per common share | 3,379,764 | 15,000 |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share (Abstract) | ' | ' |
Net income available to Genpact Limited common shareholders | $50,613 | $46,737 |
Weighted average number of common shares used in computing basic earnings per common share | 232,093,917 | 227,227,226 |
Dilutive effect of stock-based awards | 5,181,734 | 6,393,525 |
Weighted average number of common shares used in computing dilutive earnings per common share | 237,275,651 | 233,620,751 |
Earnings per common share attributable to Genpact Limited common shareholders, Basic | $0.22 | $0.21 |
Earnings per common share attributable to Genpact Limited common shareholders, Diluted | $0.21 | $0.20 |
Cost_of_Revenue_Detail
Cost of Revenue (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Component of Operating Other Cost and Expense [Abstract] | ' | ' |
Cost of revenue | $324,289 | $311,726 |
Personnel expenses | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' |
Cost of revenue | 227,027 | 218,435 |
Operational expenses | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' |
Cost of revenue | 86,421 | 81,446 |
Depreciation and amortization | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' |
Cost of revenue | $10,841 | $11,845 |
Selling_General_and_Administra2
Selling, General and Administrative Expenses (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Component of Operating Other Cost and Expense [Abstract] | ' | ' |
Selling, general and administrative expenses | $122,498 | $113,224 |
Personnel expenses | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' |
Selling, general and administrative expenses | 89,506 | 82,128 |
Operational expenses | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' |
Selling, general and administrative expenses | 30,929 | 28,951 |
Depreciation and amortization | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' |
Selling, general and administrative expenses | $2,063 | $2,145 |
Other_Operating_Income_Expense2
Other Operating Income (Expense), Net (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Components of Other Operating Income [Line Items] | ' | ' |
Other operating (income) expense | ($220) | ($655) |
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | -1,642 | 53 |
Other operating (income) expense, net | ($1,862) | ($602) |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Income (Expense), Net | ' | ' |
Interest income | $1,359 | $5,273 |
Interest expense | -7,761 | -9,938 |
Other income (expense) | -131 | -446 |
Other income (expense), net | ($6,533) | ($5,111) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Line Items] | ' | ' |
Amount of unrecognized tax benefits | $22,920 | $21,832 |
Unrecognized tax benefits that would impact effective tax rate | 21,989 | 20,901 |
Unrecognized tax benefits, interest on income taxes accrued | 3,763 | 3,373 |
Unrecognized tax benefits, interest expense recognized | 390 | -50 |
Accrued penalties | $570 | $350 |
Activities_Related_to_Unrecogn
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Schedule of Unrecognized Tax Benefits [Line Items] | ' |
Beginning Balance | $21,832 |
Increase related to prior year tax positions | 586 |
Decrease related to prior year tax positions | -51 |
Effect of exchange rate changes | 553 |
Ending Balance | $22,920 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Recognized net revenues | $71 | $191 |
Significant Shareholder | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Recognized net revenues | 71 | 0 |
Non-Consolidating Affiliates | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Cost of revenue | 533 | 420 |
Selling, general and administrative expenses | 137 | 91 |
Affiliate of Significant Shareholder | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Recognized net revenues | $0 | $191 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies [Line Items] | ' | ' |
Commitments and contingencies | ' | ' |
Commitment To Purchase Property, Plant and Equipment | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Commitments and contingencies | 6,171 | 4,491 |
Outstanding Bank Guarantees | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Commitments and contingencies | $9,244 | $11,086 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 1 Months Ended | 1 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Apr. 08, 2014 | Apr. 23, 2014 | Mar. 05, 2014 | Mar. 05, 2014 |
Pharmalink | Maximum | Minimum | ||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Stock repurchase authorized amount | ' | ' | $300,000 | ' |
Common stock average price per share | $17.50 | ' | $18 | $16.50 |
Common stock shares repurchased | 17,292,842 | ' | ' | ' |
Aggregate amount of common stock shares repurchased | 302,625 | ' | ' | ' |
Enterprise value | ' | 124,320 | ' | ' |
Contingent earn-out component-Low end | ' | 0 | ' | ' |
Contingent earn-out component-High end | ' | $24,864 | ' | ' |