Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 19, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | G | ||
Entity Registrant Name | GENPACT LTD | ||
Entity Central Index Key | 1398659 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 220,074,938 | ||
Entity Public Float | $2,777,881,756 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $461,788 | $571,276 |
Accounts receivables, net | 525,754 | 505,117 |
Deferred tax assets | 45,486 | 60,638 |
Prepaid expenses and other current assets | 155,480 | 139,113 |
Total current assets | 1,188,508 | 1,276,144 |
Property, plant and equipment, net | 175,936 | 173,204 |
Deferred tax assets | 59,135 | 89,305 |
Investment in equity affiliates | 494 | 384 |
Intangible assets, net | 114,544 | 99,116 |
Goodwill | 1,057,214 | 953,849 |
Other assets | 146,706 | 97,365 |
Total assets | 2,742,537 | 2,689,367 |
Current liabilities | ||
Short-term borrowings | 135,000 | |
Current portion of long-term debt | 4,288 | 4,263 |
Current portion of capital lease obligations | 1,443 | 1,405 |
Accounts payable | 15,544 | 18,412 |
Income taxes payable | 13,586 | 15,007 |
Deferred tax liabilities | 1,239 | 614 |
Accrued expenses and other current liabilities | 451,014 | 421,992 |
Total current liabilities | 622,114 | 461,693 |
Long-term debt, less current portion | 649,314 | 653,601 |
Capital lease obligations, less current portion | 2,660 | 2,657 |
Deferred tax liabilities | 6,671 | 4,464 |
Other liabilities | 176,642 | 242,884 |
Total liabilities | 1,457,401 | 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 218,684,205 issued and outstanding as of December 31, 2013 and December 31, 2014, respectively | 2,184 | 2,310 |
Additional paid-in capital | 1,296,730 | 1,268,344 |
Retained earnings | 398,706 | 511,699 |
Accumulated other comprehensive income (loss) | -412,484 | -459,614 |
Genpact Limited shareholders' equity | 1,285,136 | 1,322,739 |
Noncontrolling interest | 1,329 | |
Total equity | 1,285,136 | 1,324,068 |
Commitments and contingencies | ||
Total liabilities and equity | $2,742,537 | $2,689,367 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 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 | 0 | 0 |
Common shares, par value | $0.01 | $0.01 |
Common shares, authorized | 500,000,000 | 500,000,000 |
Common shares, issued | 218,684,205 | 231,262,576 |
Common shares, outstanding | 218,684,205 | 231,262,576 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net revenues | |||
Net revenues from services | $2,279,438 | $2,131,997 | $1,901,971 |
Cost of revenue | |||
Services | 1,378,088 | 1,319,571 | 1,157,766 |
Gross profit | 901,350 | 812,426 | 744,205 |
Operating expenses: | |||
Selling, general and administrative expenses | 585,646 | 484,810 | 456,611 |
Amortization of acquired intangible assets | 28,543 | 23,645 | 23,233 |
Other operating (income) expense, net | -6,870 | -5,556 | 16 |
Income from operations | 294,031 | 309,527 | 264,345 |
Foreign exchange (gains) losses, net | 12,363 | -20,763 | -13,146 |
Other income (expense), net | -27,283 | -24,308 | -14,499 |
Income before equity-method investment activity, net and income tax expense | 254,385 | 305,982 | 262,992 |
Loss(gain) on equity-method investment activity, net | 4,795 | -169 | -17 |
Income before income tax expense | 249,590 | 306,151 | 263,009 |
Income tax expense | 57,419 | 71,100 | 78,419 |
Net income | 192,171 | 235,051 | 184,590 |
Net income attributable to noncontrolling interest | 169 | 5,334 | 6,374 |
Net income attributable to Genpact Limited shareholders | 192,002 | 229,717 | 178,216 |
Net income available to Genpact Limited common shareholders | $192,002 | $229,717 | $178,216 |
Earnings per common share attributable to Genpact Limited common shareholders | |||
Basic | $0.87 | $1 | $0.80 |
Diluted | $0.85 | $0.97 | $0.78 |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||
Basic | 220,847,098 | 229,348,411 | 223,696,567 |
Diluted | 225,168,665 | 235,754,267 | 229,532,516 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $192,171 | $235,051 | $184,590 |
Other comprehensive income: | |||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 90,200 | -28,654 | 27,195 |
Retirement benefits, net of taxes | 1,106 | ||
Other comprehensive income (loss) | 47,119 | -141,239 | 2,612 |
Non controlling Interest | |||
Net income | 169 | 5,334 | 6,374 |
Other comprehensive income: | |||
Currency translation adjustments | -11 | 103 | 131 |
Other comprehensive income (loss) | -11 | 103 | 131 |
Comprehensive income (loss) | 158 | 5,437 | 6,505 |
Parent Company | |||
Net income | 192,002 | 229,717 | 178,216 |
Other comprehensive income: | |||
Currency translation adjustments | -41,964 | -114,555 | -21,560 |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 90,200 | -28,654 | 27,195 |
Retirement benefits, net of taxes | -1,106 | 1,867 | -3,154 |
Other comprehensive income (loss) | 47,130 | -141,342 | 2,481 |
Comprehensive income (loss) | $239,132 | $88,375 | $180,697 |
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, 2011 | $1,435,683 | $2,222 | $1,146,203 | $605,386 | ($320,753) | $2,625 | |
Beginning balance, value (in shares) at Dec. 31, 2011 | 222,347,968 | ||||||
Net settlement on issuance of common shares on exercise of options (Note 18) (in shares) | 2,539,517 | 2,539,517 | |||||
Net settlement on issuance of common shares on exercise of options (Note 18) | 24,956 | 25 | 24,931 | ||||
Issuance of common shares under the employee stock purchase plan (Note 18) (in shares) | 86,214 | ||||||
Issuance of common shares under the employee stock purchase plan (Note 18) | 1,271 | 1 | 1,270 | ||||
Net settlement on vesting of restricted share units (Note 18) | -2,103 | 5 | -2,108 | ||||
Net settlement on vesting of restricted share units, shares | 506,473 | ||||||
Distribution to noncontrolling interest | -5,760 | -5,760 | |||||
Stock-based compensation expense (Note 18) | 32,152 | 32,152 | |||||
Comprehensive income: | |||||||
Net income | 184,590 | 178,216 | 6,374 | ||||
Other comprehensive income | 2,612 | 2,481 | 131 | ||||
Dividend (Note 19) | -501,620 | -501,620 | |||||
End balance, value at Dec. 31, 2012 | 1,171,781 | 2,253 | 1,202,448 | 281,982 | -318,272 | 3,370 | |
End balance, value (in shares) at Dec. 31, 2012 | 225,480,172 | ||||||
Net settlement on issuance of common shares on exercise of options (Note 18) (in shares) | 4,635,977 | 4,635,977 | |||||
Net settlement on issuance of common shares on exercise of options (Note 18) | 44,025 | 46 | 43,979 | ||||
Issuance of common shares under the employee stock purchase plan (Note 18) (in shares) | 109,698 | ||||||
Issuance of common shares under the employee stock purchase plan (Note 18) | 1,834 | 1 | 1,833 | ||||
Net settlement on vesting of restricted share units (Note 18) | -4,465 | 5 | -4,470 | ||||
Net settlement on vesting of restricted share units, shares | 540,617 | ||||||
Net settlement on vesting of performance units (Note 18) | -6,570 | 5 | -6,575 | ||||
Net settlement on vesting of performance units, shares | 496,112 | ||||||
Disposition of noncontrolling interest | -1,055 | -1,055 | |||||
Distribution to noncontrolling interest | -6,423 | -6,423 | |||||
Stock-based compensation expense (Note 18) | 31,129 | 31,129 | |||||
Comprehensive income: | |||||||
Net income | 235,051 | 229,717 | 5,334 | ||||
Other comprehensive income | -141,239 | -141,342 | 103 | ||||
End balance, value at Dec. 31, 2013 | 1,324,068 | 2,310 | 1,268,344 | 511,699 | -459,614 | 1,329 | |
End 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 18) (in shares) | 3,972,535 | [1] | 3,319,760 | ||||
Net settlement on issuance of common shares on exercise of options (Note 18) | 16,051 | 33 | 16,018 | ||||
Issuance of common shares under the employee stock purchase plan (Note 18) (in shares) | 151,461 | ||||||
Issuance of common shares under the employee stock purchase plan (Note 18) | 2,347 | 2 | 2,345 | ||||
Net settlement on vesting of restricted share units (Note 18) | -2,358 | 3 | -2,361 | ||||
Net settlement on vesting of restricted share units, shares | 329,311 | ||||||
Net settlement on vesting of performance units (Note 18) | -15,672 | 9 | -15,681 | ||||
Net settlement on vesting of performance units, shares | 913,939 | ||||||
Stock purchased and retired | -302,625 | -173 | -302,452 | ||||
Stock purchased and retired (in shares) | -17,292,842 | ||||||
Expenses related to stock purchase | -2,543 | -2,543 | |||||
Distribution to noncontrolling interest | -1,487 | -1,487 | |||||
Stock-based compensation expense (Note 18) | 28,065 | 28,065 | |||||
Comprehensive income: | |||||||
Net income | 192,171 | 192,002 | 169 | ||||
Other comprehensive income | 47,119 | 47,130 | -11 | ||||
End balance, value at Dec. 31, 2014 | $1,285,136 | $2,184 | $1,296,730 | $398,706 | ($412,484) | ||
End balance, value (in shares) at Dec. 31, 2014 | 218,684,205 | 218,684,205 | |||||
[1] | Of this, 2,138,601 options have been net settled upon exercise by issuing 1,485,826 shares (net of minimum statutory withholding taxes). |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income attributable to Genpact Limited shareholders | $192,002 | $229,717 | $178,216 |
Net income attributable to noncontrolling interest | 169 | 5,334 | 6,374 |
Net income | 192,171 | 235,051 | 184,590 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 51,064 | 52,815 | 56,089 |
Amortization of debt issue costs (including loss on extinguishment of debt) | 3,240 | 6,035 | 8,079 |
Amortization of acquired intangible assets | 28,543 | 23,645 | 23,305 |
Reserve for doubtful receivables | 3,107 | 11,420 | 3,878 |
Unrealized (gain) loss on revaluation of foreign currency asset/liability | 9,419 | -6,251 | -13,700 |
Equity-method investment activity, net | 4,795 | -169 | -17 |
Stock-based compensation expense | 28,065 | 31,129 | 32,152 |
Deferred income taxes | -12,252 | -1,116 | -10,028 |
Others, net | 1,291 | 5,939 | 6,579 |
Change in operating assets and liabilities: | |||
Increase in accounts receivables | -24,088 | -60,817 | -36,171 |
Decrease (Increase) in other assets | -31,657 | 9,377 | -20,525 |
Increase (Decrease) in accounts payable | -7,268 | 1,785 | -4,380 |
Increase in other liabilities | 27,500 | 9,316 | 79,034 |
Increase (Decrease) in income taxes payable | -2,092 | -6,555 | 1,775 |
Net cash provided by operating activities | 271,838 | 311,604 | 310,660 |
Investing activities | |||
Purchase of property, plant and equipment | -62,577 | -48,879 | -83,337 |
Proceeds from sale of property, plant and equipment | 564 | 3,442 | 500 |
Investment in equity affiliates | -205 | ||
Short term deposits placed | -25,000 | -55,001 | -43,978 |
Redemption of short term deposits | 25,000 | 69,249 | 25,638 |
Payment for business acquisitions, net of cash acquired | -130,809 | -49,235 | -55,901 |
Proceeds from divestiture of business, net of cash divested | 1,982 | ||
Net cash used for investing activities | -192,822 | -78,442 | -157,283 |
Financing activities | |||
Repayment of capital lease obligations | -2,095 | -1,803 | -2,279 |
Proceeds from long-term debt | 121,410 | 675,000 | |
Repayment of long-term debt | -6,750 | -123,098 | -106,688 |
Proceeds from Short-term borrowings | 195,000 | 275,000 | 80,000 |
Repayment of Short-term borrowings | -60,000 | -355,000 | -253,004 |
Proceeds from issuance of common shares under stock-based compensation plans | 30,144 | 45,859 | 26,227 |
Payment for net settlement of stock-based awards | -25,975 | -9,315 | -2,103 |
Payment of earn-out and deferred consideration | -1,088 | -3,868 | -587 |
Cost incurred in relation to debt amendment and refinancing | -8,104 | -15,266 | |
Distribution to noncontrolling interest | -1,487 | -6,423 | -5,760 |
Expenses related to stock purchase | -2,543 | ||
Stock purchased and retired | -302,625 | ||
Dividend Paid | -501,620 | ||
Net cash used for financing activities | -177,419 | -65,342 | -106,080 |
Effect of exchange rate changes | -11,085 | -55,772 | 3,911 |
Net increase (decrease) in cash and cash equivalents | -98,403 | 167,820 | 47,297 |
Cash and cash equivalents at the beginning of the period | 571,276 | 459,228 | 408,020 |
Cash and cash equivalents at the end of the period | 461,788 | 571,276 | 459,228 |
Supplementary information | |||
Cash paid during the period for interest | 27,175 | 30,788 | 14,061 |
Cash paid during the period for income taxes | 83,803 | 71,857 | 91,825 |
Property, plant and equipment acquired under capital lease obligations | $2,176 | $2,342 | $2,699 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2014 | |
Organization | 1. Organization |
(a) Nature of Operations | |
The Company designs, transforms, and runs intelligent business operations, including those that are complex and specific to a set of chosen industries. The result is advanced operating models that assist the Company’s clients in becoming more competitive by supporting their growth and managing cost, risk, and compliance across a range of functions, such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. The Company’s Smart Enterprise Processes (SEPSM) proprietary framework helps companies reimagine how they operate by integrating effective Systems of EngagementTM, core IT, and Data-to-Action AnalyticsSM. The Company’s hundreds of long-term clients include more than one-fourth of the Fortune Global 500. The Company has a unique history: behind its 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 16 years. | |
(b) Organization | |
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 common 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 declined to less than 5.0%, as a result of which GE is no longer considered a related party. | |
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’s common shares covered by the share purchase agreement. | |
On December 14, 2012, a secondary offering of the Company’s common shares by affiliates of 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. | |
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 in the third quarter of 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.” In June 2013, the Company amended the new credit facility as described in Note 14. | |
The Company incurred expenses of approximately $23,464 for the 2012 Recapitalization, excluding fees associated with terminating the previous credit facility and entering into the new credit facility. Of the total expenses of $23,464, $6,237 was incurred and recorded as part of “selling, general and administrative expenses” in the Consolidated Statements of Income. The balance of the total expenses of approximately $17,227 relating to the share purchase transaction was incurred and accrued as of December 31, 2012 and reported as a part of “other income (expense), net” in the Consolidated Statements of Income. GA and OH jointly reimbursed the Company for $17,000 of the $17,227 on October 25, 2012 at the closing of the share purchase transaction in accordance with the letter agreement among the Company, GA and OH. This reimbursement was recorded as part of “other income (expense), net” in the Consolidated Statements of Income for the year ended December 31, 2012. |
Summary_of_significant_account
Summary of significant accounting policies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Summary of significant accounting policies | 2. Summary of significant accounting policies | |||
(a) Basis of preparation and principles of consolidation | ||||
The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP). | ||||
The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company and all of its subsidiaries that are more than 50% owned and controlled, including variable interest entities in which the Company is the primary beneficiary. 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 consolidated financial statements represents the noncontrolling partners’ interest in the operation of Genpact Netherlands B.V., the noncontrolling shareholders’ interest in the operation of Hello Communications (Shanghai) Co., Ltd. and the profits or losses associated with the noncontrolling interest in such 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. Accordingly, noncontrolling interest relating to Genpact Netherlands B.V. has been computed prior to tax and disclosed accordingly in the Consolidated Statements of Income. During the year ended December 31, 2013, the Company completed the divestiture of Hello Communications (Shanghai) Co., Ltd as described in Note 3B(a). Further, during the year ended December 31, 2014, the Company purchased the noncontrolling interest in Genpact Netherlands B.V., resulting in the Company’s 100% control of the partnership. | ||||
(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, undistributed foreign earnings planned to be indefinitely reinvested 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) Revenue recognition | ||||
The Company derives its revenue primarily from business process and technology management services, which are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been rendered and collectability is reasonably assured. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues on these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and receivables for the services rendered between the last billing date and the balance sheet date. | ||||
Customer contracts can also include incentive payments received for discrete benefits delivered to clients. Revenues relating to such incentive payments are recorded when the contingency is satisfied and the Company concludes the amounts are earned. | ||||
Revenue with respect to fixed-price contracts for the development of software and related services is recognized in accordance with the percentage of completion method. Guidance has been drawn from Financial Accounting Standards Board (“FASB”) guidance on Software—Revenue Recognition to account for revenue from fixed-price arrangements for software development and related services in conformity with FASB guidance on Revenue Recognition—Construction—Type and Production-Type Contracts. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. | ||||
The Company has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. | ||||
Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from customers have been included as part of revenues. | ||||
The Company enters into multiple-element revenue arrangements in which a customer may purchase a combination of its services. Revenue from multiple-element arrangements is recognized, for each respective element, based on (1) the attainment of the delivery criterion; (2) its fair value, which is determined using the selling price hierarchy of vendor-specific objective evidence (“VSOE”) of fair value, third-party evidence or best estimated selling price, as applicable, and (3) its allocated selling price, which is based on the relative sales price method. | ||||
d) Accounts receivable | ||||
Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the Consolidated Statements of Cash Flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. | ||||
(e) Cash and cash equivalents | ||||
Cash and cash equivalents consist of cash and bank balances and all highly liquid investments purchased with an original maturity of three months or less. | ||||
(f) Short- term investments | ||||
All liquid investments with an original maturity greater than 90 days but less than one year are considered to be short-term investments. Marketable short-term investments are classified and accounted for as available-for-sale investments. Available-for-sale investments are reported at fair value with changes in unrealized gains and losses recorded as a separate component of other comprehensive income (loss) until realized. Realized gains and losses on investments are determined based on the specific identification method and are included in “Other income (expense), net.” The Company does not hold these investments for speculative or trading purposes. | ||||
(g) Property, plant and equipment, net | ||||
Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are charged to earnings as incurred. The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: | ||||
Years | ||||
Buildings | 40 | |||
Furniture and fixtures | 4 | |||
Computer equipment and servers | 4 | |||
Plant, machinery and equipment | 4 | |||
Computer software | 4 | |||
Leasehold improvements | Lesser of lease period | |||
or 10 years | ||||
Vehicles | 4-Mar | |||
The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs incurred while developing internal-use computer software. Capitalized software costs are included in property, plant and equipment on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software. | ||||
Advances paid towards the acquisition of property, plant and equipment outstanding as of each balance sheet date and the cost of property, plant and equipment not put to use before such date are disclosed under “Capital work in progress.” | ||||
(h) Research and development expense | ||||
Development costs incurred for software to be sold, if any, are expensed as incurred as research and development costs until technological feasibility has been established for the product. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Thereafter, all software production costs will be capitalized and amortized over their useful lives and reported at the lower of unamortized cost and net realizable value. | ||||
(i) Business combinations, goodwill and other intangible assets | ||||
The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any 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 10 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 | |||
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. | ||||
(j) Impairment of long-lived assets | ||||
Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. | ||||
(k) Foreign currency | ||||
The consolidated financial statements are reported in U.S. dollars. The functional currency of Genpact Limited is the U.S. dollar. The functional currency for subsidiaries organized in Europe, other than the U.K., the Czech Republic and one subsidiary in Poland, is the Euro, and the functional currencies of subsidiaries organized in Brazil, China, Colombia, Guatemala, India, Japan, Morocco, South Africa, the Philippines, the U.K., Poland, the Czech Republic, Hong Kong, Singapore, Australia, Canada and United Arab Emirates are their respective local currencies. The functional currency of all other Company subsidiaries is the U.S. dollar. The translation of the functional currencies of the respective subsidiaries into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. | ||||
Monetary assets and liabilities of each subsidiary denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing at the balance sheet date. Transactions of each subsidiary in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. | ||||
(l) Derivative instruments and hedging activities | ||||
In the normal course of business, the Company uses derivative financial instruments to manage fluctuations in foreign currency exchange rates. The Company purchases forward foreign exchange contracts to mitigate the risk of changes in foreign exchange rates on intercompany transactions and forecasted transactions denominated in foreign currencies. | ||||
The Company recognizes derivative instruments and hedging activities as either assets or liabilities in its consolidated balance sheets and measures them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Changes in the fair values of derivatives designated as cash flow hedges are deferred and recorded as a component of other comprehensive income (loss) reported under accumulated other comprehensive income (loss) until the hedged transactions occur and are then recognized in the consolidated statements of income along with the underlying hedged item and disclosed as part of “Total net revenues,” “Cost of revenue,” and “Selling, general and administrative expenses,” as applicable. Changes in the fair value of derivatives not designated as hedging instruments, and the ineffective portion of derivatives designated as cash flow hedges are recognized in the consolidated statements of income and are included in foreign exchange (gains) losses, net, and other income (expense), net, respectively. | ||||
With respect to derivatives designated as hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the inception of the hedge and on a quarterly basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative or a portion thereof is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, the Company will prospectively discontinue hedge accounting with respect to that derivative. | ||||
In all situations in which hedge accounting is discontinued and the derivative is retained, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent change in its fair value in the consolidated statements of income. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately, in foreign exchange (gains) losses, net in the consolidated statements of income, the gains and losses attributable to such derivative that were accumulated in other comprehensive income (loss). | ||||
(m) Income taxes | ||||
The Company accounts for income taxes using the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases and all operating loss carry forwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period that includes the enactment date or the filing or approval date of the tax status change. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||||
The Company applies a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining, based on the technical merits, that the position will more likely than not be sustained upon examination. The second step is to measure the tax benefit as the largest amount of the tax benefit that is greater than 50% likely of being realized upon settlement. The Company includes interest and penalties related to unrecognized tax benefits within its provision for income tax expense. | ||||
(n) Employee Benefit Plan | ||||
Contributions to defined contribution plans are charged to consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. | ||||
The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. | ||||
(o) Stock-based compensation | ||||
The Company recognizes and measures compensation expense for all stock-based awards based on the grant date fair value. For option awards, grant date fair value is determined under the option-pricing model (Black-Scholes-Merton) and for awards other than option awards, grant date fair value is determined on the basis of the fair market value of a Company common share on the date of grant of such awards. The Company recognizes compensation expense for stock-based awards net of estimated forfeitures. Stock-based compensation recognized in the consolidated statements of income for the years ended December 31, 2012, 2013 and 2014 is based on awards ultimately expected to vest. As a result, the expense has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from such estimates. | ||||
(p) 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 investments, 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 25% of receivables as of December 31, 2013 and 2014, respectively. GE accounted for 26%, 23% and 20% of revenues for the years ended December 31, 2012, 2013 and 2014, respectively. | ||||
(q) Earnings (loss) per share | ||||
Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. | ||||
(r) Commitments and contingencies | ||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. | ||||
(s) 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. | |||
(t) 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. |
Business_Acquisitions_and_Dive
Business Acquisitions and Divestitures | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Acquisitions and Divestitures | 3. Business acquisitions and divestitures | ||||||
A. Acquisitions | |||||||
(a) Acquisition of delivery center in Japan | |||||||
On November 4, 2014, the Company acquired from Hitachi Management Partner, Corp., a finance and accounting service delivery center in Japan. In connection with the acquisition, the Company entered into a five year business process outsourcing agreement with Hitachi Ltd. The purchase consideration for the acquisition is set forth below: | |||||||
Cash consideration after preliminary adjustment for pension underfunding and closing net assets value | $ | 10,599 | |||||
Fair value of contingent earn-out consideration (ranging from $0 to $15,750) | 11,198 | ||||||
Total preliminary estimated purchase consideration | $ | 21,797 | |||||
The contingent earn-out consideration for this acquisition is based on additional work contracted by the delivery center for the period from November 4, 2014 to November 4, 2021. The total consideration paid by the Company at the closing of the transaction was $7,108, net of cash acquired of $3,491. With this acquisition, the Company expands its presence in Japan and strengthens its finance and accounting service offering. | |||||||
As of the date of these financial statements, the purchase consideration is pending final adjustment for pension underfunding and closing date net assets value, which may result in a corresponding adjustment to goodwill during the measurement period. The Company is also evaluating certain pension assets , pension liabilities and tax positions with respect to this acquisition which, when determined, may result in the recognition of additional assets and liabilities as of the acquisition date. Changes to the preliminary recorded assets and liabilities may result in a corresponding adjustment to goodwill. The measurement period will not exceed one year from the acquisition date. | |||||||
The following table summarizes the allocation of the preliminary estimated purchase price based on the fair value of the assets acquired and the liabilities assumed as of the date of acquisition: | |||||||
Preliminary estimated purchase price | $ | 21,797 | |||||
Acquisition related costs included in selling, general and administrative expenses as incurred | 796 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Net assets acquired | (323 | ) | |||||
Customer related intangible assets | 7,522 | ||||||
Deferred tax asset/(liability), net | (2,496 | ) | |||||
Total identifiable net assets acquired | $ | 4,703 | |||||
Goodwill | 17,094 | ||||||
Total | $ | 21,797 | |||||
Goodwill has been allocated to the China reporting unit and is non-deductible for tax purposes as the Company has not recorded any tax benefit for amortization. The above customer related intangible assets have a weighted average amortization period of 7 years. | |||||||
The results of operations of the delivery center, which was named as Genpact Japan Business Services K.K., and the fair value of its assets and liabilities are included in the Company’s Consolidated Financial Statements with effect from November 4, 2014, the date of the acquisition. | |||||||
(b) Pharmalink Consulting Limited and Pharmalink Consulting Inc. | |||||||
On May 29, 2014, the Company acquired 100% of the outstanding equity interest in each of Pharmalink Consulting Limited, a company incorporated under the laws of England and Wales, and Pharmalink Consulting Inc., a California corporation (collectively referred to as “Pharmalink”). The purchase consideration for the acquisition is set forth below: | |||||||
Cash consideration after preliminary adjustment for net debt and working capital | $ | 125,901 | |||||
Fair value of contingent earn-out consideration (ranging from $0 to $27,405) | 12,730 | ||||||
Total preliminary estimated purchase consideration | $ | 138,631 | |||||
The contingent earn-out consideration is based on gross profits and order bookings of sustainable outsourcing contracts for the period from June 1, 2014 to June 30, 2016. The total consideration paid at closing for the Company’s acquisition of Pharmalink was $123,701, net of cash acquired of $2,200. Pharmalink is a provider of regulatory affairs services to the life sciences industry. With this acquisition, the Company adds regulatory consulting, outsourcing and operations capabilities for clients in the life sciences industry. | |||||||
As of the date of these financial statements, the purchase consideration and the allocation for the acquisition are pending final adjustment for working capital and net debt, which may result in a corresponding adjustment to goodwill during the measurement period. Changes to the preliminary recorded assets and liabilities may result in a corresponding adjustment to goodwill. The measurement period will not exceed one year from the acquisition date. | |||||||
During the quarter ended December 31, 2014, the Company recorded a measurement period adjustment that resulted in a non-current liability of $585 and a corresponding indemnification asset with no impact on goodwill. The measurement period adjustment did not have a significant impact on the Company’s Consolidated Statements of Income, Balance Sheets or Cash Flows in any period and, thus, was recorded during the period ended December 31, 2014. | |||||||
The following table summarizes the preliminary allocation of the estimated purchase price based on the fair value of the assets acquired and the liabilities assumed as of the date of acquisition including measurement period adjustments: | |||||||
Preliminary estimated purchase price | $ | 138,631 | |||||
Acquisition related costs included in selling, general and administrative expenses as incurred | 1,977 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Net assets acquired | 7,174 | ||||||
Intangible assets | 29,923 | ||||||
Deferred tax asset/(liability), net | (8,419 | ) | |||||
Total identifiable net assets acquired | $ | 28,678 | |||||
Goodwill | 109,953 | ||||||
Total | $ | 138,631 | |||||
Goodwill has been allocated to the India reporting unit and is not deductible for tax purposes. The intangible assets consist of customer related and marketing related intangible assets with a weighted average amortization period of 6 years. | |||||||
The results of operations of Pharmalink and the fair value of its assets and liabilities are included in the Company’s Consolidated Financial Statements with effect from May 29, 2014, the date of the acquisition. | |||||||
(c) Third Pillar Systems, Inc. | |||||||
On August 30, 2013, the Company acquired certain assets, including contracts, and assumed certain liabilities of Third Pillar Systems, Inc., a Nevada corporation (“Third Pillar”), a provider of software solutions for the commercial lending and leasing industry, for cash consideration of $2,500. As a part of the transaction, the Company also hired employees of Third Pillar. With this transaction, the Company has acquired an integrated set of processes and assets capable of independently providing returns to the Company. There are no contingent consideration arrangements in connection with the acquisition. Of the cash consideration of $2,500, the Company held back $225 in accordance with the terms of the asset purchase agreement. | |||||||
The following table summarizes the allocation of the purchase price based on the fair value of assets acquired and liabilities assumed as of the acquisition date: | |||||||
Cash Consideration | $ | 2,500 | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Net assets acquired | 199 | ||||||
Intangible assets | 298 | ||||||
Total identifiable net assets acquired | $ | 497 | |||||
Goodwill | 2,003 | ||||||
Total | $ | 2,500 | |||||
Through this transaction, the Company has acquired an end-to-end platform and processes to supplement its commercial lending and leasing portfolio, thereby strengthening the Company’s service offerings in this industry. Goodwill representing the excess of the purchase consideration over the net assets acquired is deductible for tax purposes and has been allocated to the India reporting unit. The intangible assets in the table above include a technology-related intangible asset with an estimated useful life of 8 years. | |||||||
The results of operations of the business acquired from Third Pillar and the fair values of the assets acquired and liabilities assumed have been included in the Company’s Consolidated Financial Statements with effect from August 30, 2013, the date of the acquisition. | |||||||
(d) NGEN Media Services Private Limited | |||||||
On March 28, 2013, the Company acquired the remaining 50% of the outstanding equity interest in NGEN Media Services Private Limited (“NGEN”), a private limited company organized under the laws of India, and thereby increased its interest from 50% to 100%, providing the Company control over NGEN as a wholly-owned subsidiary. NGEN is engaged in the business of media services outsourcing. | |||||||
The Company acquired the remaining 50% equity interest for cash consideration of $158. There are no contingent consideration arrangements in connection with the acquisition. The Company previously accounted for its 50% interest in NGEN as an equity-method investment. | |||||||
The results of operations of NGEN and the fair value of its assets and liabilities have been included in the Company’s Consolidated Financial Statements with effect from March 28, 2013, the date of the acquisition. | |||||||
(e) Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | |||||||
On February 6, 2013, the Company acquired 100% of the outstanding membership interest in Jawood Business Process Solutions, LLC, (“Jawood”) a Michigan limited liability company, for cash consideration of $51,000, subject to adjustment based on closing date net working capital, indebtedness and cash and cash equivalents. There are no contingent consideration arrangements in connection with the acquisition. | |||||||
The transaction also included the acquisition of 100% of the outstanding shares of Felix Software Solutions Private Limited, (“Felix”) a company organized under the laws of India, for cash consideration of $2,295, subject to adjustment based on closing date net working capital. There are no contingent consideration arrangements in connection with the acquisition of Felix. | |||||||
Jawood and Felix (collectively referred to as the “Jawood Business”) are, respectively, U.S. and India based providers of business consulting and information technology services to the healthcare payer industry. Felix is a key subcontractor to Jawood. This transaction strengthened the Company’s solutions and services offerings in the healthcare payer market. | |||||||
Pursuant to the terms of the acquisition agreements, the purchase consideration for the Jawood Business is comprised of the following: | |||||||
Purchase consideration after adjustment for closing date net debt working capital, indebtedness and cash | $ | 48,576 | |||||
Seller expenses | (1,379 | ) | |||||
Total purchase price | $ | 47,197 | |||||
During the third quarter ended September 30, 2013, the Company recorded a measurement period adjustment that resulted in a $1,089 decrease in the purchase consideration with a corresponding change in goodwill. The measurement period adjustment did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows in any period and, thus, were recorded during the period ended September 30, 2013. The total amount paid by the Company to acquire the Jawood Business, net of cash acquired of $1,364 and including seller expenses amounting to $1,379, was $47,212. | |||||||
The following table summarizes the allocation of the purchase price based on the fair value of the assets acquired and liabilities assumed as of the date of the acquisition, including measurement period adjustments: | |||||||
Purchase price | $ | 47,197 | |||||
Acquisition related costs included in selling, general and administrative expenses as incurred | 310 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Net assets acquired | 1,171 | ||||||
Intangible assets | 11,200 | ||||||
Total identifiable net assets acquired | $ | 12,371 | |||||
Goodwill | 34,826 | ||||||
Total | $ | 47,197 | |||||
Goodwill, representing the excess of the purchase price over the net assets acquired, has been allocated to the India reporting unit and is deductible for tax purposes to the extent of $32,656. The values and estimated useful lives of the intangible assets are as follows: | |||||||
Value | Estimated useful | ||||||
life | |||||||
Customer related intangible assets | $ | 10,200 | 1 – 7 years | ||||
Marketing related intangible assets | 1,000 | 1 – 5 years | |||||
The weighted average amortization period in respect of the acquired intangible assets is 6 years. | |||||||
The results of operations of the Jawood business and the fair value of its assets and liabilities have been included in the Company’s Consolidated Financial Statements with effect from February 6, 2013, the date of the acquisition. | |||||||
B. Divestitures | |||||||
(a) Hello Communications (Shanghai) Co., Ltd. | |||||||
On February 22, 2013, the Company completed the divestiture of Hello Communications (Shanghai) Co., Ltd., a provider of offshore tele-sales and other voice-based support services to telecom carriers and IT/telecom equipment manufacturers in Asia, for cash consideration of $998, resulting in loss of $447. The expected loss on the sale was recorded within other income (expense), net in the Consolidated Statements of Income for the year ended December 31, 2012 and did not materially differ from the actual realized loss. The balance of cash and cash equivalents of Hello Communications (Shanghai) Co., Ltd. on the date of sale was $2,047, resulting in a net cash outflow of $1,049. The results of operations of Hello Communications (Shanghai) Co., Ltd. are not material to the Company’s results of operations or financial condition and, therefore, are not reflected as discontinued operations for the periods presented. | |||||||
(b) Clearbizz B.V. | |||||||
On September 13, 2013, the Company completed the divestiture of Clearbizz, B.V., a provider of electronic invoicing services in the Netherlands, for cash consideration of $1, resulting in a loss of $1,184, which has been recorded within other income (expense), net in the Consolidated Statements of Income. The results of operations of Clearbizz B.V. are not material to the Company’s results of operations or financial condition and, therefore, are not reflected as discontinued operations for the periods presented. | |||||||
(c) Gantthead.com, Inc. | |||||||
On December 31, 2013, the Company completed the divestiture of Gantthead.com, Inc., the operator of an online technology portal for project management, for cash consideration of $3,171, resulting in a loss of $2,303, which has been recorded within other income (expense), net in the Consolidated Statements of Income. The results of operations of Gantthead.com, Inc. are not material to the Company’s results of operations or financial condition and, therefore, are not reflected as discontinued operations for the periods presented. |
Cash_and_cash_equivalents
Cash and cash equivalents | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Cash and cash equivalents | 4. Cash and cash equivalents | ||||||||
Cash and cash equivalents as of December 31, 2013 and 2014 comprise: | |||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Deposits with banks | $ | 123,545 | $ | 130,610 | |||||
Other cash and bank balances | 447,731 | 331,178 | |||||||
Total | $ | 571,276 | $ | 461,788 | |||||
Accounts_receivable_net_of_res
Accounts receivable, net of reserve for doubtful receivables | 12 Months Ended | ||||||||||||
Dec. 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, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Opening Balance as of January 1 | $ | 8,704 | $ | 9,073 | $ | 16,560 | |||||||
Additions due to acquisitions | 184 | — | 178 | ||||||||||
Additions charged to expense | 3,878 | 11,420 | 3,107 | ||||||||||
Deductions | (3,693 | ) | (3,933 | ) | (4,653 | ) | |||||||
Closing Balance | $ | 9,073 | $ | 16,560 | $ | 15,192 | |||||||
Accounts receivable were $521,677 and $540,946 and the reserves for doubtful receivables were $16,560 and $15,192, resulting in net accounts receivable balances of $505,117 and $525,754 as of December 31, 2013 and 2014, respectively. In addition, accounts receivable due after one year of $15,844 and $11,635 as of December 31, 2013 and 2014, respectively, are included under other assets in the Consolidated Balance Sheets. | |||||||||||||
Accounts receivable from related parties were $403 and $5,840, and the reserve for doubtful receivables was $0 and $0, resulting in net accounts receivable balances of $403 and $5,840 as of December 31, 2013 and 2014, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Measurements | 6. Fair Value Measurements | ||||||||||||||||
The Company measures certain financial assets and liabilities, including derivative instruments, at their fair values on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2013 and 2014: | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | 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 December 31, 2014 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Derivative instruments (Note a) | $ | 33,967 | $ | — | $ | 33,967 | $ | — | |||||||||
Total | $ | 33,967 | $ | — | $ | 33,967 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (Note b) | $ | 101,516 | $ | — | $ | 101,516 | $ | — | |||||||||
Total | $ | 101,516 | $ | — | $ | 101,516 | $ | — | |||||||||
(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 the respective currencies. The quotes are taken from an independent market database. |
Derivative_financial_instrumen
Derivative financial instruments | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 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. Derivative financial instruments used by the Company are largely deliverable and non-deliverable forward foreign exchange contracts. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by the counterparties not to be material. The forward foreign exchange contracts mature between zero and sixty 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 | ||||||||||||||||||||||||||||||||||||||||
(note a) | (liability) (note b) | ||||||||||||||||||||||||||||||||||||||||
As of | As of | As of | As of | ||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts denominated in: | |||||||||||||||||||||||||||||||||||||||||
United States Dollars (sell) Indian Rupees (buy) | $ | 1,143,000 | $ | 1,282,800 | $ | (203,822 | ) | $ | (86,913 | ) | |||||||||||||||||||||||||||||||
United States Dollars (sell) Mexican Peso (buy) | 9,000 | 5,640 | (268 | ) | (514 | ) | |||||||||||||||||||||||||||||||||||
United States Dollars (sell) Philippines Peso (buy) | 52,200 | 72,900 | (2,357 | ) | (738 | ) | |||||||||||||||||||||||||||||||||||
Euro (sell) United States Dollars (buy) | 43,779 | 98,903 | (2,434 | ) | 5,458 | ||||||||||||||||||||||||||||||||||||
Euro (sell) Hungarian Forints (buy) | 4,121 | — | 131 | — | |||||||||||||||||||||||||||||||||||||
Euro (sell) Romanian Leu (buy) | 61,977 | 81,072 | 1,751 | 562 | |||||||||||||||||||||||||||||||||||||
Japanese Yen (sell) Chinese Renminbi (buy) | 30,731 | 28,586 | 1,970 | 2,766 | |||||||||||||||||||||||||||||||||||||
Pound Sterling (sell) United States Dollars (buy) | 94,338 | 133,435 | (4,312 | ) | 4,278 | ||||||||||||||||||||||||||||||||||||
Australian Dollars (sell) United States Dollars (buy) | 85,156 | 104,362 | 3,363 | 7,552 | |||||||||||||||||||||||||||||||||||||
$ | (205,978 | ) | $ | (67,549 | ) | ||||||||||||||||||||||||||||||||||||
(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 | As of | As of | As of | ||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other current assets | $ | 6,098 | $ | 16,636 | $ | — | $ | 202 | |||||||||||||||||||||||||||||||||
Other assets | $ | 1,865 | $ | 17,129 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | $ | 83,667 | $ | 64,650 | $ | 26 | $ | 965 | |||||||||||||||||||||||||||||||||
Other liabilities | $ | 130,248 | $ | 35,901 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in earnings as incurred. | |||||||||||||||||||||||||||||||||||||||||
In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: | |||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||||||||||||||
Before- | Tax | Net of | Before- | Tax | Net of | Before- | Tax | Net of | |||||||||||||||||||||||||||||||||
Tax | (Expense) | tax | Tax | (Expense) | tax | Tax | (Expense) | tax | |||||||||||||||||||||||||||||||||
amount | or | Amount | amount | or | Amount | amount | or | Amount | |||||||||||||||||||||||||||||||||
Benefit | Benefit | Benefit | |||||||||||||||||||||||||||||||||||||||
Opening balance as of January 1 | $ | (203,006 | ) | $ | 71,125 | $ | (131,881 | ) | $ | (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 | (34,927 | ) | 12,651 | (22,276 | ) | (66,812 | ) | 25,239 | (41,573 | ) | (49,161 | ) | 17,498 | (31,663 | ) | ||||||||||||||||||||||||||
Changes in fair value of effective portion of outstanding derivatives, net | 4,323 | 596 | 4,919 | (109,008 | ) | 38,781 | (70,227 | ) | 90,005 | (31,468 | ) | 58,537 | |||||||||||||||||||||||||||||
Gain (loss) on cash flow hedging derivatives, net | 39,250 | (12,055 | ) | 27,195 | (42,196 | ) | 13,542 | (28,654 | ) | 139,166 | (48,966 | ) | 90,200 | ||||||||||||||||||||||||||||
Closing balance as of December 31 | $ | (163,756 | ) | $ | 59,070 | $ | (104,686 | ) | $ | (205,952 | ) | $ | 72,612 | $ | (133,340 | ) | $ | (66,786 | ) | $ | 23,646 | $ | (43,140 | ) | |||||||||||||||||
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 | Location of Gain | Amount of Gain | ||||||||||||||||||||||||||||||||||||
Cash Flow | recognized in OCI on | Gain (Loss) | (Loss) reclassified from OCI | (Loss) recognized in | (Loss) recognized | ||||||||||||||||||||||||||||||||||||
Hedging | Derivatives | reclassified from | into Statement | Income on Derivatives | in income on | ||||||||||||||||||||||||||||||||||||
Relationships | (Effective Portion) | OCI into | of Income | (Ineffective Portion | Derivatives | ||||||||||||||||||||||||||||||||||||
Statement of | (Effective Portion) | and Amount excluded | (Ineffective Portion | ||||||||||||||||||||||||||||||||||||||
Income (Effective | from Effectiveness | and Amount | |||||||||||||||||||||||||||||||||||||||
Portion) | Testing) | excluded from | |||||||||||||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||||||||||||||
Testing) | |||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | Year ended | |||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | 2012 | 2013 | 2014 | 2012 | 2013 | 2014 | |||||||||||||||||||||||||||||||||
Forward foreign exchange contracts | $ | 4,323 | $ | (109,008 | ) | $ | 90,005 | Revenue | $ | (4,432 | ) | $ | 7,548 | $ | (4,301 | ) | Foreign exchange | $ | — | $ | — | $ | — | ||||||||||||||||||
(gains) losses, net | |||||||||||||||||||||||||||||||||||||||||
Cost of revenue | (24,183 | ) | (59,929 | ) | (35,539 | ) | |||||||||||||||||||||||||||||||||||
Selling, general and | (6,312 | ) | (14,431 | ) | (9,321 | ) | |||||||||||||||||||||||||||||||||||
administrative | |||||||||||||||||||||||||||||||||||||||||
expenses | |||||||||||||||||||||||||||||||||||||||||
$ | 4,323 | $ | (109,008 | ) | $ | 90,005 | $ | (34,927 | ) | $ | (66,812 | ) | $ | (49,161 | ) | $ | — | $ | — | $ | — | ||||||||||||||||||||
Non-designated Hedges | |||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | Location of (Gain) Loss recognized in Statement of | Amount of (Gain) Loss | |||||||||||||||||||||||||||||||||||||||
instruments | Income on Derivatives | recognized in Statement of | |||||||||||||||||||||||||||||||||||||||
Income on Derivatives | |||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||||||||||||||
Forward foreign exchange contracts (Note a) | Foreign exchange (gains) losses, net | $ | (3,884 | ) | $ | 18,353 | $ | (287 | ) | ||||||||||||||||||||||||||||||||
$ | (3,884 | ) | $ | 18,353 | $ | (287 | ) | ||||||||||||||||||||||||||||||||||
(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. |
Prepaid_expenses_and_other_cur
Prepaid expenses and other current assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Prepaid expenses and other current assets | 8. Prepaid expenses and other current assets | ||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Advance taxes | $ | 65,053 | $ | 61,251 | |||||
Deferred transition costs | 37,050 | 40,185 | |||||||
Derivative instruments | 6,098 | 16,838 | |||||||
Employee advances | 5,397 | 5,816 | |||||||
Advances to suppliers | 1,994 | 3,358 | |||||||
Prepaid expenses | 12,569 | 12,949 | |||||||
Customer acquisition cost | 1,904 | 5,557 | |||||||
Deposits | 3,896 | 1,754 | |||||||
Others | 5,152 | 7,772 | |||||||
$ | 139,113 | $ | 155,480 | ||||||
Property_plant_and_equipment_n
Property, plant and equipment, net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, plant and equipment, net | 9. Property, plant and equipment, net | ||||||||
Property, plant and equipment, net consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Land | $ | 10,566 | $ | 10,324 | |||||
Buildings | 48,743 | 46,272 | |||||||
Furniture and fixtures | 30,275 | 33,908 | |||||||
Computer equipment and servers | 163,106 | 176,572 | |||||||
Plant, machinery and equipment | 61,514 | 68,139 | |||||||
Computer software | 87,443 | 93,054 | |||||||
Leasehold improvements | 86,937 | 89,770 | |||||||
Vehicles | 6,506 | 6,607 | |||||||
Capital work in progress | 7,803 | 7,314 | |||||||
Property, plant and equipment, gross | $ | 502,893 | $ | 531,960 | |||||
Less: Accumulated depreciation and amortization | (329,689 | ) | (356,024 | ) | |||||
Property, plant and equipment, net | $ | 173,204 | $ | 175,936 | |||||
Depreciation expense on property, plant and equipment for the years ended December 31, 2012, 2013 and 2014 was $46,046, $46,408 and $44,029, respectively. The amount of computer software amortization for the years ended December 31, 2012, 2013 and 2014 was $11,613, $9,949 and $9,105, respectively. | |||||||||
The depreciation and amortization expense includes the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of the foreign currency derivative contracts, amounting to $1,570, $3,542 and $2,070 for the years ended December 31, 2012, 2013 and 2014, respectively. | |||||||||
Property, plant and equipment, net include assets held under capital lease arrangements amounting to $3,524 and $3,435 as of December 31, 2013 and December 31, 2014, respectively. Depreciation expense in respect of these assets was $1,830, $1,726 and $1,786 for the years ended December 31, 2012, 2013 and 2014, respectively. |
Goodwill_and_intangible_assets
Goodwill and intangible assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and intangible assets | 10. Goodwill and intangible assets | ||||||||||||||||||||||||
The following table presents changes in goodwill for the years ended December 31, 2013 and 2014: | |||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Opening balance | $ | 956,064 | $ | 953,849 | |||||||||||||||||||||
Goodwill relating to acquisitions consummated during the period | 37,918 | 127,047 | |||||||||||||||||||||||
Goodwill relating to divestitures consummated during the period | (3,450 | ) | — | ||||||||||||||||||||||
Impact of measurement period adjustments | (362 | ) | — | ||||||||||||||||||||||
Effect of exchange rate fluctuations | (36,321 | ) | (23,682 | ) | |||||||||||||||||||||
Closing balance | $ | 953,849 | $ | 1,057,214 | |||||||||||||||||||||
Goodwill has been allocated to the following reporting units, which represent different business units of the Company, as follows: | |||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
India | $ | 384,533 | $ | 477,969 | |||||||||||||||||||||
China | 45,699 | 60,585 | |||||||||||||||||||||||
Europe | 44,146 | 39,189 | |||||||||||||||||||||||
Americas | 46,583 | 46,583 | |||||||||||||||||||||||
Headstrong | 432,888 | 432,888 | |||||||||||||||||||||||
$ | 953,849 | $ | 1,057,214 | ||||||||||||||||||||||
In line with the Company’s strategy, during the year ended December 31, 2013, the Company integrated a portion of the IT business within the Company’s India reporting unit with the Headstrong reporting unit. This integration enabled the Company to leverage business experience, knowledge, and resources more effectively and to provide a global service delivery model. Accordingly, goodwill attributable to the IT business included in the India reporting unit prior to and including the year ended December 31, 2012 is being reported as a component of the Headstrong reporting unit beginning with the year ended December 31, 2013. The Company tested goodwill allocated to the transferred IT Business for impairment prior to the integration with the Headstrong reporting unit for events and conditions identified in accordance with the guidance in ASC 350, “Intangibles—Goodwill and Other.” The fair value of this goodwill was calculated using a discounted cash flow model using estimated future cash flows. Further, the Company tested the goodwill of each of the India reporting unit, the transferred IT business and the Headstrong reporting unit before and after such integration and concluded that the fair value of each such reporting unit or portion thereof exceeded its respective book value. | |||||||||||||||||||||||||
In the year ended December 31, 2013, the Company performed an assessment of qualitative factors to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on such assessment, the Company concluded, with respect to all reporting units other than the Americas and Headstrong, ,that it is not more likely than not that the fair value of any such reporting unit is less than its carrying amount. Accordingly, the Company performed the quantitative assessment of goodwill impairment for the Americas and Headstrong reporting units. Based on the quantitative assessment for these two reporting units, the Company concluded that there is no impairment in the year ended December 31, 2013 and the fair value of these two reporting units exceeded their respective carrying values. | |||||||||||||||||||||||||
In the year ended December 31, 2014, in accordance with ASU 2011-08, the Company performed an assessment of qualitative factors to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on its assessment, the Company concluded that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount for all reporting units. | |||||||||||||||||||||||||
The total amount of goodwill deductible for tax purposes is $38,512 and $37,628 as of December 31, 2013 and 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 December 31, 2014 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
carrying | amortization | carrying | amortization | ||||||||||||||||||||||
amount | amount | ||||||||||||||||||||||||
Customer-related intangible assets | $ | 288,983 | $ | 213,878 | $ | 75,105 | $ | 310,069 | $ | 228,095 | $ | 81,974 | |||||||||||||
Marketing-related intangible assets | 37,919 | 20,545 | 17,374 | 43,137 | 23,801 | 19,336 | |||||||||||||||||||
Other intangible assets | 10,245 | 3,608 | 6,637 | 19,002 | 5,768 | 13,234 | |||||||||||||||||||
$ | 337,147 | $ | 238,031 | $ | 99,116 | $ | 372,208 | $ | 257,664 | $ | 114,544 | ||||||||||||||
Amortization expenses for intangible assets disclosed in the consolidated statements of income under amortization of acquired intangible assets for the years ended December 31, 2012, 2013 and 2014 were $23,233, $23,645 and $28,543, respectively. Intangible assets recorded for the 2004 reorganization, when the Company began operating independently from GE, include the incremental value of the minimum volume commitment of GE at the time of the 2004 reorganization over the value of the pre-existing customer relationship with GE. The amortization of this intangible asset for the years ended December 31, 2012, 2013 and 2014 was $72, $0 and $0, respectively, and has been reported as a reduction of revenue. | |||||||||||||||||||||||||
The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: | |||||||||||||||||||||||||
For the year ending December 31: | |||||||||||||||||||||||||
2015 | $ | 27,577 | |||||||||||||||||||||||
2016 | 22,987 | ||||||||||||||||||||||||
2017 | 19,902 | ||||||||||||||||||||||||
2018 | 16,316 | ||||||||||||||||||||||||
2019 and beyond | 27,762 | ||||||||||||||||||||||||
$ | 114,544 | ||||||||||||||||||||||||
Other_assets
Other assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other assets | 11. Other assets | ||||||||
Other assets consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Customer acquisition cost | $ | 6,088 | $ | 15,035 | |||||
Advance taxes | 7,839 | 27,381 | |||||||
Deferred transition costs | 27,818 | 37,230 | |||||||
Deposits | 23,287 | 24,989 | |||||||
Derivative instruments | 1,865 | 17,129 | |||||||
Prepaid expenses | 4,895 | 2,565 | |||||||
Accounts Receivable due after one year | 15,844 | 11,635 | |||||||
Others | 9,729 | 10,742 | |||||||
$ | 97,365 | $ | 146,706 | ||||||
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases | 12. Leases | ||||
The Company has leased vehicles, furniture and fixtures, computer equipment and servers, and plants, machinery and equipment from various lessors under capital lease arrangements which are not material to the consolidated financial statements. | |||||
The Company conducts its operations using facilities under non-cancellable operating lease agreements that expire at various dates. Future minimum lease payments under these agreements are as follows: | |||||
Year ending December 31: | |||||
2015 | $ | 48,191 | |||
2016 | 45,628 | ||||
2017 | 37,894 | ||||
2018 | 28,956 | ||||
2019 | 24,888 | ||||
2020 and beyond | 89,737 | ||||
Total minimum lease payments | $ | 275,294 | |||
Rental expenses in agreements with rent holidays and scheduled rent increases are recorded on a straight-line basis over the applicable lease term. Rent expenses under cancellable and non-cancellable operating leases were $49,912, $55,450 and $57,178 for the years ended December 31, 2012, 2013 and 2014, respectively. | |||||
The rental expenses set out above include the effect of reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts amounting to $1,112, $2,851 and $1,823 for the years ended December 31, 2012, 2013 and 2014, respectively. |
Accrued_expenses_and_other_cur
Accrued expenses and other current liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accrued expenses and other current liabilities | 13. Accrued expenses and other current liabilities | ||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Accrued expenses | $ | 98,988 | $ | 114,770 | |||||
Accrued employee cost | 126,814 | 143,829 | |||||||
Deferred transition revenue | 46,895 | 49,792 | |||||||
Statutory liabilities | 24,466 | 24,713 | |||||||
Retirement benefits | 14,853 | 16,807 | |||||||
Derivative instruments | 83,693 | 65,615 | |||||||
Advance from customers | 18,334 | 19,857 | |||||||
Earn-out and deferred consideration | 3,492 | 3,232 | |||||||
Other liabilities | 4,457 | 12,399 | |||||||
$ | 421,992 | $ | 451,014 | ||||||
Longterm_debt
Long-term debt | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Long-term debt | 14. 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 $380,000 balance outstanding under the previous existing credit facility, (ii) fund a portion of its special cash dividend discussed in Note 19, 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 has been 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 $118,036 of the outstanding term loan under the previous credit facility 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 the 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 December 31, 2014, the outstanding term loan, net of debt amortization expense of $13,761 and $11,274, was $657,864 and $653,602, respectively. As of December 31, 2013 and 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 facility is secured by certain assets of the Company. The amount outstanding on the term loan as of December 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 | ||||
2015 | $ | 4,288 | |||
2016 | 4,306 | ||||
2017 | 4,338 | ||||
2018 | 4,363 | ||||
2019 | 636,307 | ||||
$ | 653,602 | ||||
Shortterm_borrowings
Short-term borrowings | 12 Months Ended | ||
Dec. 31, 2014 | |||
Short-term borrowings | 15. Short-term borrowings | ||
The Company has the following borrowing facilities: | |||
(a) | Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2013 and December 31, 2014, the limits available were $13,906 and $14,282, respectively, out of which $6,689 and $8,138 was utilized, constituting 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 amended in June 2013 as described in note 14. A portion of this facility was initially used to fund the special cash dividend paid in September 2012 and for the acquisition of the Jawood Business in February 2013. Additionally, this facility was utilized to fund in part the Company’s stock purchase pursuant to its March 2014 self-tender offer and its acquisition of Pharmalink, each in the second quarter of 2014. As of December 31, 2013 and December 31, 2014, a total of $4,397 and $137,224, respectively, was utilized, of which $0 and $135,000, respectively, constituted funded drawdown and $4,397 and $2,224, respectively, constituted 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 both December 31, 2013 and December 31, 2014. The unutilized amount on the facility bears a commitment fee of 0.50%. Indebtedness under the facility 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 year ended December 31, 2014, the Company is in compliance with all of the financial covenants. |
Other_liabilities
Other liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other liabilities | 16. Other liabilities | ||||||||
Other liabilities consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Accrued employee cost | $ | 5,103 | $ | 5,121 | |||||
Deferred transition revenue | 47,405 | 52,419 | |||||||
Retirement benefits | 24,330 | 29,652 | |||||||
Derivative instruments | 130,248 | 35,901 | |||||||
Amount received from GE under indemnification arrangement, pending adjustment | 7,839 | 5,129 | |||||||
Advance from customers | 8,000 | 6,000 | |||||||
Earn-out and deferred consideration | 9,857 | 30,758 | |||||||
Others | 10,102 | 11,662 | |||||||
$ | 242,884 | $ | 176,642 | ||||||
Employee_benefit_plans
Employee benefit plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Employee benefit plans | 17. Employee benefit plans | ||||||||||||||||
The Company has employee benefit plans in the form of certain statutory and other schemes covering its employees. | |||||||||||||||||
Defined benefit plans | |||||||||||||||||
In accordance with Indian law, the Company provides a defined benefit retirement plan (the “Gratuity Plan”) covering substantially all of its Indian employees. The Gratuity Plan provides a lump-sum payment to vested employees upon retirement or termination of employment in an amount based on each employee’s salary and duration of employment with the Company. The Gratuity Plan benefit cost for the year is calculated on an actuarial basis. The Company contributes the required funding for all ascertained liabilities to the Genpact India Employees’ Gratuity Fund. Trustees administer contributions made to the trust, and contributions are invested in specific designated instruments as permitted by Indian law. The Company’s overall investment strategy is to invest predominantly in fixed income funds managed by asset management companies. These funds further invest in debt securities such as money market instruments, government securities and public and private bonds. During the years ended December 31, 2012, 2013 and 2014, all of the plan assets were primarily invested in debt securities. | |||||||||||||||||
In addition, in accordance with Mexican law, the Company provides certain termination benefits to its Mexican employees (the “Mexican Plan”) based on the age, duration of service and salary of each eligible employee. The Mexican Plan benefit cost for the year is calculated on an actuarial basis. | |||||||||||||||||
In addition, certain of the Company’s subsidiaries organized or operating in the Philippines and Japan have sponsored defined benefit retirement programs (respectively, the “Philippines Plan” and the “Japan Plan”). The benefit costs of the Japan Plan and the Philippines Plan for the year are calculated on an actuarial basis. The Philippines Plan and the Japan Plan are funded and Company contributions in respect of these benefits are made to insurer-managed funds or to a trust. The trust contributions are further invested in government bonds. | |||||||||||||||||
Current service costs for defined benefit plans are accrued in the year to which they relate on a monthly basis. Actuarial gains or losses, or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees or over the average remaining life expectancies for inactive employees if most of the plan obligations are payable to inactive employees. | |||||||||||||||||
The following table sets forth the funded status of the defined benefit plans and the amounts recognized in the Company’s financial statements based on an actuarial valuation carried out as of December 31, 2013 and 2014. | |||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Change in benefit obligation | |||||||||||||||||
Projected benefit obligation at the beginning of the year | $ | 29,821 | $ | 28,596 | |||||||||||||
Service cost | 4,511 | 4,721 | |||||||||||||||
Actuarial loss (gain) | (1,310 | ) | 1,843 | ||||||||||||||
Interest cost | 2,104 | 2,410 | |||||||||||||||
Liabilities assumed on acquisition | — | 3,967 | |||||||||||||||
Benefits paid | (2,996 | ) | (3,736 | ) | |||||||||||||
Effect of exchange rate changes | (3,534 | ) | (1,356 | ) | |||||||||||||
Projected benefit obligation at the end of the year | $ | 28,596 | $ | 36,445 | |||||||||||||
Change in fair value of plan assets | |||||||||||||||||
Fair value of plan assets at the beginning of the year | $ | 14,957 | $ | 22,798 | |||||||||||||
Employer contributions | 12,325 | 7,139 | |||||||||||||||
Actual gain on plan assets | 1,037 | 1,907 | |||||||||||||||
Assets assumed on acquisition | — | 2,825 | |||||||||||||||
Acturial gain/(loss) | (6 | ) | (6 | ) | |||||||||||||
Benefits paid | (2,996 | ) | (3,736 | ) | |||||||||||||
Effect of exchange rate changes | (2,519 | ) | (1,206 | ) | |||||||||||||
Fair value of plan assets at the end of the year | $ | 22,798 | $ | 29,721 | |||||||||||||
Amounts included in other comprehensive income (loss) as of December 31, 2013 and 2014 were as follows: | |||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Net actuarial loss | $ | (5,659 | ) | $ | (7,178 | ) | |||||||||||
Deferred tax assets | 1,765 | 2,178 | |||||||||||||||
Other comprehensive income, net | $ | (3,894 | ) | $ | (5,000 | ) | |||||||||||
Changes in other comprehensive income (loss) during the year ended December 31, 2014 were as follows: | |||||||||||||||||
2014 | |||||||||||||||||
Net Actuarial loss | $ | (1,674 | ) | ||||||||||||||
Amortization of net actuarial loss | 411 | ||||||||||||||||
Deferred income taxes | 413 | ||||||||||||||||
Effect of exchange rate changes | (256 | ) | |||||||||||||||
Other comprehensive income (loss), net | $ | (1,106 | ) | ||||||||||||||
Net defined benefit plan costs for the years ended December 31, 2012, 2013 and 2014 include the following components: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||
Service costs | $ | 4,047 | $ | 4,511 | $ | 4,721 | |||||||||||
Interest costs | 1,807 | 2,104 | 2,410 | ||||||||||||||
Amortization of actuarial loss | 854 | 421 | 419 | ||||||||||||||
Expected return on plan assets | (961 | ) | (968 | ) | (1,719 | ) | |||||||||||
Net Defined Benefit Plan costs | $ | 5,747 | $ | 6,068 | $ | 5,831 | |||||||||||
The amount in other comprehensive income (loss) that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $5,582. | |||||||||||||||||
The weighted average assumptions used to determine the benefit obligations of the Gratuity Plan as of December 31, 2013 and 2014 are presented below: | |||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Discount rate | 9.55% | 8.50%-8.55% | |||||||||||||||
Rate of increase in compensation per annum | 5.20%-11.00% | 5.20%-11.00% | |||||||||||||||
The weighted average assumptions used to determine the Gratuity Plan costs for the years ended December 31, 2012, 2013 and 2014 are presented below: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||
Discount rate | 9.30%-9.70% | 8.85% | 9.50%-9.55% | ||||||||||||||
Rate of increase in compensation per annum | 5.20%-11.00% | 5.20%-11.00% | 5.20%-11.00% | ||||||||||||||
Expected long term rate of return on plan assets per annum | 7.30%-8.50% | 8.50% | 8.50% | ||||||||||||||
The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2013 and 2014 are presented below: | |||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Discount rate | 6.5 | % | 6.5 | % | |||||||||||||
Rate of increase in compensation per annum | 5.5 | % | 5.5 | % | |||||||||||||
The weighted average assumptions used to determine the Mexico Plan costs for the years ended December 31, 2012, 2013 and 2014 are presented below: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||
Discount rate | 6.5 | % | 6.5 | % | 6.5 | % | |||||||||||
Rate of increase in compensation per annum | 5.5 | % | 5.5 | % | 5.5 | % | |||||||||||
Expected long term rate of return on plan assets per annum | 0 | % | 0 | % | 0 | % | |||||||||||
The weighted average assumptions used to determine the benefit obligation of the Japan Plans as of December 31, 2013 and 2014 are presented below: | |||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Discount rate | 0.5 | % | 0.24%-1.44% | ||||||||||||||
Rate of increase in compensation per annum | 0 | % | 0.00% | ||||||||||||||
The weighted average assumptions used to determine the Japan Plans costs for the years ended December 31, 2012, 2013 and 2014 are presented below: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||
Discount rate | 0.9 | % | 0.9 | % | 0.50%-1.44% | ||||||||||||
Rate of increase in compensation per annum | 0 | % | 0 | % | 0.00% | ||||||||||||
Expected long term rate of return on plan assets per annum | 2.69 | % | 2.69 | % | 2.69% | ||||||||||||
The foregoing expected returns on plan assets are based on the Company’s expectation of the average long-term rate of return expected to prevail over the next 15 to 20 years on the types of investments prescribed by the statutory pattern of investment. | |||||||||||||||||
The Company assesses these assumptions with its projected long-term plans of growth and prevalent industry standards. Unrecognized actuarial loss is amortized over the average remaining service period of the active employees expected to receive benefits under the plan. | |||||||||||||||||
The fair value of the Company’s plan assets as of December 31, 2013 and 2014 by asset category are as follows: | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Asset Category | |||||||||||||||||
Cash | $ | 6,104 | $ | 6,104 | $ | — | $ | — | |||||||||
Fixed Income Securities (Note a) | 21,532 | 4,053 | 17,479 | — | |||||||||||||
Other Securities (Note b) | 2,085 | 512 | 1,573 | — | |||||||||||||
Total | $ | 29,721 | $ | 10,669 | $ | 19,052 | $ | — | |||||||||
As of December 31, 2013 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Asset Category | |||||||||||||||||
Cash | $ | 10,674 | $ | 10,674 | $ | — | $ | — | |||||||||
Fixed Income Securities (Note a) | 9,490 | 1,092 | 8,398 | — | |||||||||||||
Other Securities (Note b) | 2,634 | 1,326 | 1,308 | — | |||||||||||||
Total | $ | 22,798 | $ | 13,092 | $ | 9,706 | $ | — | |||||||||
(a) | Include investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. | ||||||||||||||||
(b) | Include investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. | ||||||||||||||||
The expected benefit plan payments set forth below reflect expected future service: | |||||||||||||||||
Year ending December 31, | |||||||||||||||||
2015 | $ | 4,487 | |||||||||||||||
2016 | 4,935 | ||||||||||||||||
2017 | 5,465 | ||||||||||||||||
2018 | 5,951 | ||||||||||||||||
2019 | 6,578 | ||||||||||||||||
2020 – 2024 | 33,833 | ||||||||||||||||
$ | 61,249 | ||||||||||||||||
The expected benefit plan payments are based on the same assumptions that were used to measure the Company’s benefit obligations as of December 31, 2014. | |||||||||||||||||
Defined contribution plans | |||||||||||||||||
During the years ended December 31, 2012, 2013 and 2014, the Company contributed the following amounts to defined contribution plans in various jurisdictions: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||
India | $ | 14,102 | $ | 14,443 | $ | 15,272 | |||||||||||
China | 10,888 | 14,681 | 14,518 | ||||||||||||||
U.S. | 3,012 | 3,268 | 5,565 | ||||||||||||||
U.K. | 1,444 | 1,789 | 3,361 | ||||||||||||||
Other Regions | 3,738 | 4,641 | 4,355 | ||||||||||||||
Total | 33,184 | 38,822 | 43,071 | ||||||||||||||
Stockbased_compensation
Stock-based compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock-based compensation | 18. Stock-based compensation | ||||||||||||||||
The Company has issued options under the Genpact Global Holdings 2005 Plan (the “2005 Plan”), Genpact Global Holdings 2006 Plan (the “2006 Plan”), Genpact Global Holdings 2007 Plan (the “2007 Plan”) and 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 such plan 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. | |||||||||||||||||
A brief summary of each plan is provided below: | |||||||||||||||||
2005 Plan | |||||||||||||||||
Under the 2005 Plan, which was adopted on July 26, 2005, the Company is authorized to issue up to 12,706,665 options (including an increase of 495,915 options representing the adjustment to outstanding stock-based awards as a result of the special cash dividend) to eligible persons and has granted 12,986,802 options (including 583,357 options representing the adjustment to outstanding stock-based awards as a result of the special cash dividend) up to the year ended December 31, 2014. | |||||||||||||||||
2006 Plan | |||||||||||||||||
Under the 2006 Plan, which was adopted on February 27, 2006, the Company is authorized to issue up to 4,942,369 options to eligible persons and has granted 5,328,697 options (including 68,005 options representing the adjustment to outstanding stock-based awards as a result of the special cash dividend) up to the year ended December 31, 2014. | |||||||||||||||||
2007 Plan | |||||||||||||||||
Under the 2007 Plan, which was adopted on March 27, 2007, the Company is authorized to issue up to 16,733,250 options to eligible persons and has granted 9,133,255 options (including 486,205 options representing the adjustment to outstanding stock-based awards as a result of the special cash dividend) up to the year ended December 31, 2014. | |||||||||||||||||
2007 Omnibus Plan | |||||||||||||||||
The Company adopted the 2007 Omnibus Plan on July 13, 2007 and amended and restated it on April 11, 2012. The 2007 Omnibus Plan provides for the grant of options intended to qualify as incentive stock options, non-qualified stock options, share appreciation rights, restricted share awards, restricted share units, performance units, cash incentive awards and other equity-based or equity-related awards. Under the 2007 Omnibus Plan the Company is authorized to grant awards for the issuance of up to a total of 23,995,184 common shares to eligible persons, of which 12,991,104 options (including 489,071 options representing the adjustment to outstanding stock-based awards as a result of the special cash dividend), 3,680,405 restricted share units (including 272,335 restricted share units representing the adjustment to outstanding stock-based awards as a result of the special cash dividend) and 7,837,377 performance units (including 482,341 performance units representing the adjustment to outstanding stock-based awards as a result of the special cash dividend) have been granted as of December 31, 2014. | |||||||||||||||||
Stock-based compensation costs relating to the foregoing plans during the years ended December 31, 2012, 2013 and 2014, were $31,999, $30,901 and $27,773, respectively, and have been allocated to cost of revenue and selling, general, and administrative expenses. | |||||||||||||||||
Tax benefits recognized in relation to the stock-based compensation charge during the years ended December 31, 2012, 2013 and 2014 were $8,032, $6,913 and $6,366, respectively. In addition, the Company realized a cash tax benefit of $2,277, $3,368 and $5,061, during the years ended December 31, 2012, 2013 and 2014, respectively. No excess tax benefit was realized on the options exercised during the years ended December 31, 2012, 2013 and 2014 and no amount was recorded through additional paid-in capital due to losses in U.S. subsidiaries. | |||||||||||||||||
Stock options | |||||||||||||||||
Options granted are subject to vesting requirements. Options granted under the plan are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes compensation cost over the vesting period of the option. Compensation cost is determined at the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model. | |||||||||||||||||
The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in 2013 and 2014. No options were granted in 2012 other than pertaining to the adjustment to outstanding stock options as a result of the special cash dividend paid in September 2012: | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Dividend yield | — | — | |||||||||||||||
Expected life (in months) | 84 | 84 | |||||||||||||||
Risk free rate of interest for expected life | 1.55% | 2.18% - 2.29% | |||||||||||||||
Volatility | 39.39% | 37.27% - 38.34% | |||||||||||||||
Volatility was calculated based on the historical volatility of the Company during a period equivalent to the estimated term of the option. The Company estimates the expected term of an option using the “simplified method,” which is based on the average of its contractual vesting term. The risk-free interest rate that the Company uses in the option valuation model is based on U.S. Treasury bonds with a term similar to the expected term of the options. The Company has not paid any regular cash dividends in the recent period and does not anticipate doing so in the foreseeable future. | |||||||||||||||||
The Company has issued, and intends to continue to issue, new common shares to satisfy stock option exercises under its incentive plans. | |||||||||||||||||
A summary of stock option activity during the years ended December 31, 2012, 2013 and 2014 is set out below: | |||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Shares arising | Weighted | Weighted average | Aggregate | ||||||||||||||
out of options | average | remaining | intrinsic | ||||||||||||||
exercise price | contractual life | value | |||||||||||||||
(years) | |||||||||||||||||
Outstanding as of January 1, 2012 | 13,734,820 | $ | 10.58 | 5.4 | $ | — | |||||||||||
Granted | — | — | — | — | |||||||||||||
Forfeited | (327,590 | ) | 11.28 | — | — | ||||||||||||
Expired | (81,053 | ) | 15.46 | — | — | ||||||||||||
Exercised | (2,539,517 | ) | 9.83 | — | 14,748 | ||||||||||||
Adjustment for special cash dividend | 1,626,638 | ||||||||||||||||
Outstanding as of December 31, 2012 | 12,413,298 | $ | 9.29 | 4.2 | $ | 77,017 | |||||||||||
Vested and exercisable as of December 31, 2012 and expected to vest thereafter (Note a) | 12,271,334 | $ | 9.28 | 4.2 | $ | 76,339 | |||||||||||
Vested and exercisable as of December 31, 2012 | 10,752,875 | $ | 8.97 | 3.8 | $ | 70,217 | |||||||||||
Weighted average grant date fair value of grants during the period | $ | — | |||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Shares arising | Weighted | Weighted average | Aggregate | ||||||||||||||
out of options | average | remaining | intrinsic | ||||||||||||||
exercise price | contractual life | value | |||||||||||||||
(years) | |||||||||||||||||
Outstanding as of January 1, 2013 | 12,413,298 | $ | 9.29 | 4.2 | $ | — | |||||||||||
Granted | 3,483,000 | 19.35 | — | — | |||||||||||||
Forfeited | (69,863 | ) | 10.65 | — | — | ||||||||||||
Expired | (88,295 | ) | 13.26 | — | — | ||||||||||||
Exercised | (4,635,977 | ) | 9.31 | — | 41,849 | ||||||||||||
Outstanding as of December 31, 2013 | 11,102,163 | $ | 12.4 | 5.2 | $ | 70,512 | |||||||||||
Vested and exercisable as of December 31, 2013 and expected to vest thereafter (Note a) | 10,759,137 | $ | 12.11 | 5.2 | $ | 70,465 | |||||||||||
Vested and exercisable as of December 31, 2013 | 7,091,889 | $ | 8.82 | 3 | $ | 67,719 | |||||||||||
Weighted average grant date fair value of grants during the period | $ | 8.33 | |||||||||||||||
Year ended December 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 | 520,000 | 17.54 | — | — | |||||||||||||
Forfeited | (250,673 | ) | 19.2 | — | — | ||||||||||||
Expired | (27,228 | ) | 12.32 | — | — | ||||||||||||
Exercised (Note b) | (3,972,535 | ) | 7 | — | 47,399 | ||||||||||||
Outstanding as of December 31, 2014 | 7,371,727 | $ | 15.44 | 5.9 | $ | 27,886 | |||||||||||
Vested as of December 31, 2014 and expected to vest thereafter (Note a) | 7,073,004 | $ | 15.19 | 5.9 | $ | 27,755 | |||||||||||
Vested and Exercisable as of December 31, 2014 | 3,542,821 | $ | 11.37 | 3.1 | $ | 26,781 | |||||||||||
Weighted average grant date fair value of grants during the period | $ | 7.54 | |||||||||||||||
(a) | Options expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
(b) | Of this, 2,138,601 options have been net settled upon exercise by issuing 1,485,826 shares (net of minimum statutory withholding taxes). | ||||||||||||||||
As of December 31, 2014, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $19,651, which will be recognized over the weighted average remaining requisite vesting period of 3.2 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. The fair value of each RSU is the market price of one common share of the Company on the date of the grant. The RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. | |||||||||||||||||
A summary of RSUs granted during the years ended December 31, 2012, 2013 and 2014 is set out below: | |||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Number of Restricted | Weighted Average | ||||||||||||||||
Share Units | Grant Date Fair Value | ||||||||||||||||
Outstanding as of January 1, 2012 | 2,262,153 | $ | 15.27 | ||||||||||||||
Granted | 185,551 | 15.95 | |||||||||||||||
Vested (Note b) | (779,986 | ) | 13.68 | ||||||||||||||
Forfeited | (251,651 | ) | 14.39 | ||||||||||||||
Adjustment for special cash dividend | 272,335 | ||||||||||||||||
Outstanding as of December 31, 2012 | 1,688,402 | $ | 13.74 | ||||||||||||||
Expected to vest (Note a) | 1,357,447 | ||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Number of Restricted | Weighted Average | ||||||||||||||||
Share Units | Grant Date Fair Value | ||||||||||||||||
Outstanding as of January 1, 2013 | 1,688,402 | $ | 13.74 | ||||||||||||||
Granted | 91,623 | 19.52 | |||||||||||||||
Vested (Note c) | (683,522 | ) | 14.28 | ||||||||||||||
Forfeited | (224,731 | ) | 13.6 | ||||||||||||||
Outstanding as of December 31, 2013 | 871,772 | $ | 13.96 | ||||||||||||||
Expected to vest (Note a) | 802,481 | ||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Number of Restricted | Weighted Average | ||||||||||||||||
Share Units | Grant Date Fair Value | ||||||||||||||||
Outstanding as of January 1, 2014 | 871,772 | $ | 13.96 | ||||||||||||||
Granted | 227,248 | 16.58 | |||||||||||||||
Vested (Note d) | (511,513 | ) | 13.83 | ||||||||||||||
Forfeited | (99,089 | ) | 13.77 | ||||||||||||||
Outstanding as of Dec 31, 2014 | 488,418 | $ | 15.36 | ||||||||||||||
Expected to vest (Note a) | 451,721 | ||||||||||||||||
(a) | RSUs expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
(b) | Of this, 717,448 RSUs were net settled upon vesting by issuing 506,473 shares (net of minimum statutory tax withholding). 102,000 shares vested in the year ended December 2011, shares in respect of which were issued in January 2013 (100,800 shares, net of minimum statutory withholding taxes). Shares in respect of an additional 13,719 RSUs, reflecting an adjustment to the 102,000 vested RSUs as a result of the special cash dividend, were issued in January 2013 (13,557 shares, net of minimum statutory withholding taxes). | ||||||||||||||||
Additionally, as of December 31, 2012, 4,533 RSUs vested (including 533 RSUs reflecting an adjustment to 4,000 vested RSUs as a result of the special cash dividend), shares in respect of which were issued in April 2013 (2,059 shares, net of minimum statutory withholding taxes). 44,286 RSUs vested in the year ended December 31, 2012, shares in respect of which were issued in January 2014 after withholding 681 shares to the extent of the minimum statutory withholding taxes. | |||||||||||||||||
(c) | Of this, 622,465 RSUs were net settled upon vesting by issuing 424,201 shares (net of minimum statutory tax withholding). 61,057 RSUs vested in the year ended December 31, 2013, shares in respect of which were issued in January 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | ||||||||||||||||
(d) | Of this, 418,821 RSUs were net settled upon vesting by issuing 285,706 shares (net of minimum statutory withholding taxes). 92,692 RSUs vested in the year ended December 31, 2014, shares in respect of which will be issuable on December 31, 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | ||||||||||||||||
As of December 31, 2014, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $4,433, which will be recognized over the weighted average remaining requisite vesting period of 2.1 years. | |||||||||||||||||
Performance Units | |||||||||||||||||
The Company also grants stock awards in the form of Performance Units, or PUs, under the 2007 Omnibus Plan. | |||||||||||||||||
The Company granted PUs, each of which represents the right to receive a 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. 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 will be based on a comparison of the final performance metrics to the specified targets. | |||||||||||||||||
A summary of PU activity during the years ended December 31, 2012, 2013 and 2014 is set out below: | |||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Number of | Weighted Average | Maximum Shares | |||||||||||||||
Performance Units | Grant Date Fair Value | Eligible to Receive | |||||||||||||||
Outstanding as of January 1, 2012 | 2,271,724 | $ | 15.17 | 3,247,322 | |||||||||||||
Granted | 1,200,000 | 15.25 | 1,800,000 | ||||||||||||||
Vested (Note b) | (772,745 | ) | 13.28 | (1,149,390 | ) | ||||||||||||
Forfeited | (139,809 | ) | 15.56 | (190,053 | ) | ||||||||||||
Adjustment for special cash dividend | 482,341 | 694,718 | |||||||||||||||
Outstanding as of December 31, 2012 | 3,041,511 | $ | 13.26 | 4,402,597 | |||||||||||||
Expected to vest (Note a) | 2,413,073 | ||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Number of | Weighted Average | Maximum Shares | |||||||||||||||
Performance Units | Grant Date Fair Value | Eligible to Receive | |||||||||||||||
Outstanding as of January 1, 2013 | 3,041,511 | $ | 13.26 | 4,402,597 | |||||||||||||
Granted | 2,025,090 | 18.57 | 3,694,635 | ||||||||||||||
Vested (Note c) | (1,024,434 | ) | 12.03 | (1,024,434 | ) | ||||||||||||
Forfeited | (426,345 | ) | 15.19 | (550,078 | ) | ||||||||||||
Addition due to achievement of higher than target performance goals (Note d) | 297,911 | 17.5 | |||||||||||||||
Reduction due to achievement of lower than maximum performance goals (Note e) | (373,702 | ) | |||||||||||||||
Outstanding as of December 31, 2013 | 3,913,733 | $ | 16.44 | 6,149,018 | |||||||||||||
Expected to vest (Note a) | 1,372,781 | ||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Number of | Weighted Average | Maximum Shares | |||||||||||||||
Performance Units | Grant Date Fair Value | Eligible to Receive | |||||||||||||||
Outstanding as of January 1, 2014 | 3,913,733 | $ | 16.44 | 6,149,018 | |||||||||||||
Granted | 1,337,750 | 16.78 | 2,729,125 | ||||||||||||||
Vested (Note f) | (1,469,200 | ) | 14.5 | (1,469,183 | ) | ||||||||||||
Forfeited (Note g) | (2,629,463 | ) | 17.3 | (2,664,980 | ) | ||||||||||||
Addition due to achievement of higher than target performance goals (Note f) | 139,930 | 12.04 | |||||||||||||||
Reduction due to achievement of lower than maximum performance goals (Note h) | (2,095,354 | ) | |||||||||||||||
Outstanding as of December 31, 2014 | 1,292,750 | $ | 16.78 | 2,648,626 | |||||||||||||
Expected to vest (Note a) | 1,153,277 | ||||||||||||||||
(a) | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||||||||||||||||
(b) | 28,901 of the PUs shown as vested as of December 31, 2012 represent an adjustment for the special cash dividend with respect to 214,880 PUs that had vested as of December 31, 2011, shares in respect of which were issued in January 2013 (156,511 shares, net of minimum statutory withholding taxes). | ||||||||||||||||
503,969 shares vested in respect of the PUs granted in March 2010 (including the PUs issued as an adjustment to account for the special cash dividend). Shares in respect of such PUs were issued in March 2013 (334,922 shares) and April 2013 (4,679 shares), net of minimum statutory withholding taxes. | |||||||||||||||||
231,029 shares vested in the year ended December 31, 2012 in respect of the PUs granted in August 2010. Shares in respect of these PUs were issued in January 2014 after withholding 92,994 shares representing the minimum statutory withholding taxes. | |||||||||||||||||
(c) | 1,033,474 shares and 130,890 shares, respectively, vested in respect of the PUs granted in March and June 2011, respectively. | ||||||||||||||||
(d) | Represents additional shares issued in respect of the PUs granted in March 2012 due to the achievement of higher-than-target performance. | ||||||||||||||||
(e) | Represents a reduction in the maximum shares eligible to vest for the PUs granted in March 2012. | ||||||||||||||||
Outstanding PUs as of December 31, 2013 includes 483,999, 1,250,807 and 657,000 shares underlying awards granted in May 2011, March 2013 and May 2013, respectively, for which the performance conditions were not fulfilled. | |||||||||||||||||
(f) | Vested PUs as of December 31, 2014 include an additional 139,930 shares issued for the PUs granted in March 2011 (122,490 shares) and June 2011 (17,440 shares). These shares, in addition to the shares referred to in note (c) above, were issued in March 2014 (697,853 shares) and April 2014 (432 shares) with respect to grants made in March 2011, and 77,619 shares were issued in March 2014 with respect to grants made in June 2011, after withholding shares to the extent of the minimum statutory withholding taxes. | ||||||||||||||||
Vested PUs as of December 31, 2014 also include 1,329,270 shares for the PUs granted in March 2012 based on the compensation committee’s certification of the achievement of the performance goals for the performance period based on the Company’s audited financial statements. Shares in respect of these PUs were issued in January 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||||||||||||||
(g) | 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, all of which were forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. | ||||||||||||||||
(h) | Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest with respect to 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, due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. | ||||||||||||||||
As of December 31, 2014, the total remaining unrecognized stock-based compensation costs related to PUs amounted to $14,267, which will be recognized over the weighted average remaining requisite vesting period of 2.1 years. | |||||||||||||||||
Employee Stock Purchase Plan (ESPP) | |||||||||||||||||
On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). | |||||||||||||||||
The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the 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 must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day 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 year ended December 31, 2012, 2013 and 2014, 86,214, 109,698 and 151,461 common shares, respectively, were issued under 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 years ended December 31, 2012, 2013 and 2014 was $153, $228 and $292, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital_stock
Capital stock | 12 Months Ended |
Dec. 31, 2014 | |
Capital stock | 19. Capital stock |
The Company’s authorized capital stock as of December 31, 2013 and 2014 consisted of 500 million common shares with a par value of $0.01 per share, and 250 million preferred shares with a par value of $0.01 per share. Of the above, the Company had 231,262,576 and 218,684,205 common shares, and no preferred shares, issued and outstanding as of December 31, 2013 and 2014, respectively. | |
Holders of common shares are entitled to one vote per share. Upon the liquidation, dissolution or winding up of the Company, common shareholders are entitled to receive a ratable share of the available net assets of the Company after payment of all debts and other liabilities. The common shares have no preemptive, subscription, redemption or conversion rights. | |
The Company’s board of directors by resolution can establish one or more series of preferred shares having such par value, designations, dividend rates, relative voting rights, conversion or exchange rights, redemption rights, liquidation rights and other relative participation, optional or other rights, qualifications, limitations or restrictions as may be fixed by the board of directors without any shareholder approval. Such rights, preferences, powers and limitations as may be established could also have the effect of discouraging an attempt to obtain control of the Company. These preferred shares are of the type commonly known as “blank-check” preferred shares. | |
Under Bermuda law, the Company may declare and pay dividends from time to time unless there are reasonable grounds for believing that the Company is or would, after the payment, be unable to pay its liabilities as they become due or that the realizable value of its assets would thereby be less than the aggregate of its liabilities, its issued share capital, and its share premium accounts. Under the Company’s bye-laws, each common share is entitled to dividends if, as and when dividends are declared by the Company’s board of directors. There are no restrictions in Bermuda on the Company’s ability to transfer funds (other than funds denominated in Bermuda dollars) in or out of Bermuda or to pay dividends to U.S. residents who are holders of common shares. The Company’s ability to declare and pay cash dividends is restricted by its debt covenants. | |
Dividend | |
On August 30, 2012, the Company declared a special cash dividend of $2.24 per share, or approximately $501,620 in aggregate value. The special cash dividend was paid on September 24, 2012 to shareholders of record as of the close of business on September 10, 2012. Further, in accordance with the terms of the Company’s stock-based compensation plans, in order to preserve the value of the stock-based awards outstanding as of the record date, the Company reduced the exercise price per share of each outstanding stock option award and increased the number of shares in relation to the outstanding stock-based awards as of the record date of the special cash dividend. | |
Stock Purchase | |
On April 8, 2014, the Company purchased 17,292,842 of its common shares at $17.50 per share for an aggregate cash amount of approximately $302,625 pursuant to the Company’s modified “Dutch Auction” self-tender offer announced on March 5, 2014. Under the terms of the offer the Company was authorized to purchase up to $300,000 of its common shares. The number of shares accepted for purchase included the Company’s exercise of its right to upsize the offer by up to 2% of the Company’s shares then outstanding. The purchased shares have been retired. | |
Any purchase by the Company of its common shares is accounted for when the transaction is settled. There were no unsettled share purchases as of December 31, 2014. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares. For the year ended December 31, 2014, $2,543 was deducted from retained earnings as direct costs related to share purchases. |
Earnings_per_share
Earnings per share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings per share | 20. Earnings per share | ||||||||||||
The Company calculates earnings per share in accordance with FASB guidance on Earnings per Share. Basic and diluted earnings per common share give effect to the change in the number of common shares of the Company. 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, common shares to be issued under the employee stock purchase plan and performance units, have been included in the computation of diluted net earnings per share and the weighted average shares outstanding, except where the result would be anti-dilutive. | |||||||||||||
The number of stock options outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 3,525,625, 2,616,000 and 3,758,000 for the years ended December 31, 2012, 2013 and 2014, respectively. | |||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Net income available to Genpact Limited common shareholders | $ | 178,216 | $ | 229,717 | $ | 192,002 | |||||||
Weighted average number of common shares used in computing basic earnings per common share | 223,696,567 | 229,348,411 | 220,847,098 | ||||||||||
Dilutive effect of stock-based awards | 5,835,949 | 6,405,856 | 4,321,567 | ||||||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 229,532,516 | 235,754,267 | 225,168,665 | ||||||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||
Basic | $ | 0.8 | $ | 1 | $ | 0.87 | |||||||
Diluted | $ | 0.78 | $ | 0.97 | $ | 0.85 | |||||||
Cost_of_revenue
Cost of revenue | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Cost of revenue | 21. Cost of revenue | ||||||||||||
Cost of revenue consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Personnel expenses | $ | 795,525 | $ | 904,445 | $ | 943,105 | |||||||
Operational expenses | 313,432 | 367,213 | 390,441 | ||||||||||
Depreciation and amortization | 48,809 | 47,913 | 44,542 | ||||||||||
$ | 1,157,766 | $ | 1,319,571 | $ | 1,378,088 | ||||||||
Selling_general_and_administra
Selling, general and administrative expenses | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selling, general and administrative expenses | 22. Selling, general and administrative expenses | ||||||||||||
Selling, general and administrative expenses consist of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Personnel expenses | $ | 314,587 | $ | 347,384 | $ | 419,299 | |||||||
Operational expenses | 133,173 | 128,982 | 157,755 | ||||||||||
Depreciation and amortization | 8,851 | 8,444 | 8,592 | ||||||||||
$ | 456,611 | $ | 484,810 | $ | 585,646 | ||||||||
Other_operating_income_expense
Other operating (income) expense, net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other operating (income) expense, net | 23. Other operating (income) expense, net | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Other operating (income) expense | $ | (3,185 | ) | $ | (3,259 | ) | $ | (3,163 | ) | ||||
Provision for impairment of capital work in progress / property, plant and equipment | 6,214 | 2,373 | — | ||||||||||
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | (3,013 | ) | (4,670 | ) | (3,707 | ) | |||||||
Other operating (income) expense, net | $ | 16 | $ | (5,556 | ) | $ | (6,870 | ) | |||||
Other_income_expense_net
Other income (expense), net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other income (expense), net | 24. Other income (expense), net | ||||||||||||
Other income (expense), net consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Interest income | $ | 12,007 | $ | 15,736 | $ | 4,405 | |||||||
Interest expense* | (28,121 | ) | (38,876 | ) | (33,800 | ) | |||||||
Provision (created) reversed for loss on divestures | (459 | ) | (3,487 | ) | — | ||||||||
Other income (expense) ** | 2,074 | 2,319 | 2,112 | ||||||||||
Other income (expense), net | $ | (14,499 | ) | $ | (24,308 | ) | $ | (27,283 | ) | ||||
* | The years ended December 31, 2012 and 2013 include $5,534 and $3,157, respectively, representing acceleration of the amortization of debt issuance costs relating to the prepayment and termination of the previous credit facility in August 2012, and the amendment of the new credit facility in June 2013 as described in Note 14. | ||||||||||||
** | The year ended December 31, 2012 includes $17,227, representing 2012 recapitalization expenses, net of reimbursement from GA and OH amounting to $17,000, as described in Note 1. |
Income_taxes
Income taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income taxes | 25. Income taxes | ||||||||||||
Income tax expense (benefit) for the years ended December 31, 2012, 2013 and 2014 is allocated as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Income from continuing operations | $ | 78,419 | $ | 71,100 | $ | 57,419 | |||||||
Other Comprehensive Income: | |||||||||||||
Unrealized gains (losses) on cash flow hedges | 12,055 | (13,542 | ) | 48,966 | |||||||||
Retirement benefits | (643 | ) | 138 | (413 | ) | ||||||||
Total income tax expense (benefit) | $ | 89,831 | $ | 57,696 | $ | 105,972 | |||||||
The components of income before income taxes from continuing operations are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Domestic (U.S.) | $ | (11,631 | ) | $ | 8,199 | $ | 19,614 | ||||||
Foreign (Non U.S.) | 274,640 | 297,952 | 229,976 | ||||||||||
Income before income taxes | $ | 263,009 | $ | 306,151 | $ | 249,590 | |||||||
Income tax expense (benefit) attributable to income from continuing operations consists of: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Current taxes : | |||||||||||||
Domestic (U.S. Federal Taxes) | $ | 2,171 | $ | 1,443 | $ | 3,768 | |||||||
Domestic (U.S. State Taxes) | 899 | 2,152 | 666 | ||||||||||
Foreign (Non U.S.) | 85,377 | 68,621 | 65,237 | ||||||||||
$ | 88,447 | $ | 72,216 | $ | 69,671 | ||||||||
Deferred taxes : | |||||||||||||
Domestic (U.S. Federal Taxes) | ($ | 7,819 | ) | $ | 8,357 | $ | 2,761 | ||||||
Domestic (U.S. State Taxes) | 546 | (2,216 | ) | (193 | ) | ||||||||
Foreign (Non U.S.) | (2,755 | ) | (7,257 | ) | (14,820 | ) | |||||||
($ | 10,028 | ) | ($ | 1,116 | ) | ($ | 12,252 | ) | |||||
Total income tax expense (benefit) | $ | 78,419 | $ | 71,100 | $ | 57,419 | |||||||
Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes, as a result of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Income before income tax expense | $ | 263,009 | $ | 306,151 | $ | 249,590 | |||||||
Statutory tax rates | 35 | % | 35 | % | 35 | % | |||||||
Computed expected income tax expense | 92,053 | 107,153 | 87,356 | ||||||||||
Increase (decrease) in income taxes resulting from: | |||||||||||||
Foreign tax rate differential | 2,408 | 520 | 2,339 | ||||||||||
Tax benefit from tax holiday | (25,554 | ) | (39,785 | ) | (35,868 | ) | |||||||
Tax exempt income | (1,077 | ) | (7,224 | ) | (8,572 | ) | |||||||
Non-deductible expenses | 959 | 5,637 | 5,319 | ||||||||||
Effect of change in tax rates | 635 | (2,268 | ) | 176 | |||||||||
Change in valuation allowance | 12,548 | 1,088 | (2,880 | ) | |||||||||
Prior year tax expense (benefit) * | (7,490 | ) | — | — | |||||||||
Intercompany transfers | — | — | 2,822 | ||||||||||
Other | 3,937 | 5,979 | 6,727 | ||||||||||
Reported income tax expense (benefit) | $ | 78,419 | $ | 71,100 | $ | 57,419 | |||||||
* | During 2012, the Company filed an income tax return in a foreign jurisdiction that resulted in the recognition of a deferred tax asset for a capital loss arising from an earlier period that amounted to $7,490. It was not more likely than not that the capital loss would be realized. Therefore, a full valuation allowance was established to offset the recorded deferred tax asset. | ||||||||||||
A portion of the profits of the Company’s operations is exempt from income tax in India. The tax holiday under the STPI Scheme was available for a period of ten consecutive years beginning in the year in which the respective Indian undertaking commenced operations and expired completely as of March 31, 2011. One of the Company’s Indian subsidiaries has fourteen units eligible for tax holiday as a Special Economic Zone unit in respect of 100% of the export profits for a period of 5 years from commencement, 50% of such profits for the next 5 years (year 6 to year 10 from commencement) and 50% of the profits for an additional period of 5 years (year 11 to year 15 from commencement), subject to the satisfaction of certain capital investment requirements. The complete tax holiday for the current SEZ units will start expiring from March 31, 2022 and will fully expire by March 31, 2029. | |||||||||||||
The basic earnings per share effect of the tax holiday is $0.11, $0.17 and $0.16, respectively, for the years ended December 31, 2012, 2013 and 2014. The diluted earnings per share effect of the tax holiday is $0.11, $0.17 and $0.16, respectively, for the years ended December 31, 2012, 2013 and 2014. | |||||||||||||
The components of the Company’s deferred tax balances as of December 31, 2013 and 2014 are as follows: | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
Deferred tax assets | |||||||||||||
Net operating loss carryforwards | $ | 74,259 | $ | 55,592 | |||||||||
Accrued liabilities and other expenses | 17,738 | 14,731 | |||||||||||
Provision for doubtful debts | 6,199 | 5,643 | |||||||||||
Property, plant and equipment | 5,110 | 4,647 | |||||||||||
Unrealized losses on cash flow hedges, net | 74,030 | 24,646 | |||||||||||
Share-based compensation | 19,673 | 11,226 | |||||||||||
Retirement benefits | 2,718 | 4,517 | |||||||||||
Deferred revenue | 38,051 | 41,024 | |||||||||||
Tax credit carryforwards | 12,299 | 36,602 | |||||||||||
Other | 7,640 | 6,906 | |||||||||||
Gross deferred tax assets | $ | 257,717 | $ | 205,534 | |||||||||
Less: Valuation allowance | (24,654 | ) | (21,094 | ) | |||||||||
Total deferred tax assets | $ | 233,063 | $ | 184,440 | |||||||||
Deferred tax liabilities | |||||||||||||
Intangible assets | $ | 29,102 | $ | 29,653 | |||||||||
Property, plant and equipment | 4,128 | 4,971 | |||||||||||
Deferred cost | 22,490 | 27,261 | |||||||||||
Investments in foreign subsidiaries not indefinitely reinvested | 24,948 | 17,429 | |||||||||||
Other | 7,530 | 8,415 | |||||||||||
Total deferred tax liabilities | $ | 88,198 | $ | 87,729 | |||||||||
Net deferred tax asset | $ | 144,865 | $ | 96,711 | |||||||||
As of December 31, | |||||||||||||
Classified as | 2013 | 2014 | |||||||||||
Deferred tax assets | |||||||||||||
Current | $ | 60,638 | $ | 45,486 | |||||||||
Non-current | $ | 89,305 | $ | 59,135 | |||||||||
Deferred tax liabilities | |||||||||||||
Current | $ | 614 | $ | 1,239 | |||||||||
Non-current | $ | 4,464 | $ | 6,671 | |||||||||
$ | 144,865 | $ | 96,711 | ||||||||||
The change in the Company’s total valuation allowance for deferred tax assets as of December 31, 2012, 2013 and 2014 is as follows: | |||||||||||||
Year ended December 31 | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Opening valuation allowance | $ | 11,542 | $ | 23,922 | $ | 24,654 | |||||||
Reduction during the year | (364 | ) | (2,643 | ) | (8,662 | ) | |||||||
Addition during the year | 12,744 | 3,375 | 5,102 | ||||||||||
Closing valuation allowance | $ | 23,922 | $ | 24,654 | $ | 21,094 | |||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. Management considers the scheduled reversal of deferred tax liabilities, projected taxable income and tax planning strategies in making this assessment. In order to fully realize a deferred tax asset, the Company will need to generate future taxable income prior to the expiration of the deferred tax asset governed by the tax code. Based on the level of historical taxable income and projections for future taxable income over the periods during which the Company’s deferred tax assets are deductible, management believes that it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances at December 31, 2014. The amount of the Company’s deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry-forward period are reduced. | |||||||||||||
In 2014, the Company determined that it was more likely than not that the deferred tax assets of a foreign subsidiary would be partially realized after considering all positive and negative evidence. Prior to 2014, because of significant negative evidence, including a history of losses, an uncertain revenue stream, and potential reorganization activity that could adversely affect the foreign subsidiary’s future operations and profitability on a continuing basis in future years, the Company determined that it was more likely than not that the deferred tax assets would not be realized. However, as of December 31, 2014, such subsidiary had realized cumulative pre-tax income for the preceding three years and has forecasted future pre-tax income sufficient to realize a portion of its deferred tax assets. After consideration of the relative impact of all evidence, both negative and positive, and the weight accorded to each, the Company concluded that it was more likely than not that a portion of the subsidiary’s deferred tax assets would be realized and that the applicable valuation allowance should be partially released up to $3,000. | |||||||||||||
As of December 31, 2014, the Company’s deferred tax assets related to net operating loss carry-forwards amounted to $55,592. Net operating losses of subsidiaries in the UK, Hong Kong, Australia, South Africa, Colombia, Brazil, India (unabsorbed depreciation) and Luxembourg amounting to $98,900 can be carried forward for an indefinite period. The remaining tax loss carry-forwards expire as set forth in the table below: | |||||||||||||
US - Federal | Europe | Others | |||||||||||
Year ending December 31, | |||||||||||||
2015 | $ | — | $ | 56 | $ | — | |||||||
2016 | — | 79 | 112 | ||||||||||
2017 | — | 147 | 206 | ||||||||||
2018 | — | 524 | 75 | ||||||||||
2019 | — | — | 116 | ||||||||||
2020 | — | — | 1,387 | ||||||||||
2021 | — | — | 1,259 | ||||||||||
2022 | — | 1,416 | 414 | ||||||||||
2023 | — | 11,202 | 5,479 | ||||||||||
2024 | — | 330 | 4,972 | ||||||||||
2025 | — | 30,515 | 3,918 | ||||||||||
2026 | — | 405 | — | ||||||||||
2030 | — | 228 | — | ||||||||||
2031 | 117,303 | 219 | — | ||||||||||
2032 | — | 75 | — | ||||||||||
2033 | 4,538 | — | — | ||||||||||
$ | 121,841 | $ | 45,196 | $ | 17,938 | ||||||||
Of the total U.S. federal net operating loss carry-forwards of approximately $121,841, $83,377 relates to excess tax deductions resulting from share-based compensation as of December 31, 2014. No federal deferred tax benefit has been recognized for this deduction. If and when realized, the tax benefit associated with this excess deduction will be credited to additional paid-in capital. | |||||||||||||
As of December 31, 2014, the Company had additional deferred tax assets on U.S. state and local tax loss carry-forwards amounting to $8,002 with varying expiration periods that begin to expire in 2016 through 2033. | |||||||||||||
As of December 31, 2014, the company had a total alternative minimum tax credit of $22,798, of which $11,709 and $8,597 for India will expire in 2024 and 2025 respectively, and the balance can be carried forward for an indefinite period. | |||||||||||||
As of December 31, 2014, the company had a total foreign tax credit of $15,296, which will expire as set forth in the table below: | |||||||||||||
Year ending December 31, | Amount | ||||||||||||
2019 | $ | 106 | |||||||||||
2020 | 681 | ||||||||||||
2021 | 399 | ||||||||||||
2022 | 778 | ||||||||||||
2023 | 683 | ||||||||||||
2024 | 12,649 | ||||||||||||
$ | 15,296 | ||||||||||||
Undistributed earnings of the Company’s foreign (non-Bermuda) subsidiaries amounted to approximately $514,823 as of December 31, 2014. The Company plans to indefinitely reinvest such undistributed earnings, except for those earnings for which a deferred tax liability has already been accrued or which can be repatriated in a tax-free manner. Accordingly, with limited exceptions, the Company does not accrue any income, distribution or withholding taxes that would arise if such earnings were repatriated. Due to the Company’s changing corporate structure, the various methods that are available to repatriate earnings, and uncertainty relative to the applicable taxes at the time of repatriation, it is not practicable to determine the amount of tax that would be imposed upon repatriation. If undistributed earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, the company will accrue the applicable amount of taxes associated with such earnings at that time. | |||||||||||||
As of December 31, 2014, $453,976 of the Company’s $461,788 in cash and cash equivalents was held by the Company’s foreign (non-Bermuda) subsidiaries. $9,120 of this cash is held by a foreign subsidiary for which the Company expects to incur and has accrued a deferred tax liability on the repatriation of $8,000 of retained earnings. $106,379 of the cash and cash equivalents held by our foreign subsidiaries is held in jurisdictions where no tax is expected to be imposed upon repatriation. | |||||||||||||
The following table summarizes activities related to our unrecognized tax benefits for uncertain tax positions from January 1 to December 31 for each of 2012, 2013 and 2014: | |||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Opening Balance at January 1 | $ | 23,712 | $ | 21,024 | $ | 21,832 | |||||||
Increase related to prior year tax positions, including recorded in acquisition accounting | 1,864 | 1,685 | 2,472 | ||||||||||
Decrease related to prior year tax positions | (3,144 | ) | (1,952 | ) | (1,002 | ) | |||||||
Decrease related to prior year due to lapse of applicable statute of limitation | — | — | (753 | ) | |||||||||
Increase related to current year tax positions, including recorded in acquisition accounting | 1,514 | 2,905 | 442 | ||||||||||
Decrease related to settlements with tax authorities | (2,492 | ) | — | — | |||||||||
Effect of exchange rate changes | (430 | ) | (1,830 | ) | (273 | ) | |||||||
Closing Balance at December 31 | $ | 21,024 | $ | 21,832 | $ | 22,718 | |||||||
As of December 31, 2012, 2013 and 2014, the Company had unrecognized tax benefits amounting to $20,871, $20,901 and 21,268, respectively, which, if recognized, would impact the effective tax rate. | |||||||||||||
As of December 31, 2012, 2013 and 2014, the Company has accrued approximately $3,423, $3,373 and $3,417 respectively, for interest relating to unrecognized tax benefits. During the years ended December 31, 2012, 2013 and 2014, the Company recognized approximately $887, $(50) and $44 respectively, for interest expense. As of December 31, 2013, and 2014 the company has accrued $350 and $561 for penalties. No penalties were accrued as of December 31, 2012. | |||||||||||||
In the next twelve months and for all tax years that remain open to examinations by U.S. federal and various state, local, and non-U.S. tax authorities, the Company estimates that it is reasonably possible that the total amount of its unrecognized tax benefits will vary. However, the Company does not expect significant changes within the next twelve months other than depending on the progress of tax matters or examinations with various tax authorities, which are difficult to predict. | |||||||||||||
With exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax audits by taxing authorities for years prior to 2009. The Company’s subsidiaries in India and China are open to examination by the relevant taxing authorities for tax years beginning on or after April 1, 2009, and January 1, 2000, respectively. The Company regularly reviews the likelihood of additional tax assessments and adjusts its reserves as additional information or events require. |
Segment_reporting
Segment reporting | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment reporting | 26. Segment reporting | ||||||||||||
The Company manages various types of business process and information technology services in an integrated manner for clients in various industries and geographic locations. The Company’s Chief Executive Officer, who has been identified as the Chief Operation Decision Maker (CODM), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenue and adjusted operating income by identified business units. The identified business units are organized for operational reasons and represent either services-based, customer-based, industry-based or geography-based units. There is significant overlap between the manner in which the business units are organized. Additionally, the composition and organization of the business units is fluid and the structure changes regularly in response to growth of the overall business, acquisitions and changes in the reporting structure, clients, services, industries served, and delivery centers. | |||||||||||||
Based on an overall evaluation of all facts and circumstances and after combining operating segments with similar economic characteristics that comply with other aggregation criteria specified in the FASB guidance on Segment Reporting, the Company has determined that it operates as a single reportable segment. | |||||||||||||
Net revenues by service type are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Business Process Outsourcing | $ | 1,456,171 | $ | 1,608,224 | $ | 1,736,716 | |||||||
Information Technology Services | 445,800 | 523,773 | 542,722 | ||||||||||
Total net revenues | $ | 1,901,971 | $ | 2,131,997 | $ | 2,279,438 | |||||||
Revenues from clients based on the industry serviced are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Banking, Financial Services and Insurance | $ | 796,655 | $ | 888,916 | $ | 940,345 | |||||||
Manufacturing including Pharmaceuticals and Medical Equipment Manufacturing | 640,553 | 711,184 | 796,872 | ||||||||||
Technology, Healthcare and Other Services | 464,763 | 531,897 | 542,221 | ||||||||||
Total net revenues | $ | 1,901,971 | $ | 2,131,997 | $ | 2,279,438 | |||||||
Net revenues from geographic areas based on the location of service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
India | $ | 1,197,400 | $ | 1,328,201 | $ | 1,505,960 | |||||||
Asia, other than India | 208,149 | 224,657 | 232,349 | ||||||||||
North and Latin America | 306,260 | 359,774 | 302,515 | ||||||||||
Europe | 190,162 | 219,365 | 238,614 | ||||||||||
Total net revenues | $ | 1,901,971 | $ | 2,131,997 | $ | 2,279,438 | |||||||
Revenues from GE comprised 26%, 23% and 20% of the consolidated total net revenues in 2012, 2013 and 2014, respectively. No other customer accounted for 10% or more of the Company’s consolidated total net revenues during these periods. | |||||||||||||
Property, plant and equipment, net by geographic areas are as follows: | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
India | $ | 112,971 | $ | 116,734 | |||||||||
Asia, other than India | 15,199 | 13,461 | |||||||||||
North and Latin America | 35,391 | 36,617 | |||||||||||
Europe | 9,643 | 9,124 | |||||||||||
Total | $ | 173,204 | $ | 175,936 | |||||||||
Related_party_transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related party transactions | 27. Related party transactions |
The Company has entered into related party transactions with GE and companies in which GE has a majority ownership interest or over which it exerts significant influence (collectively referred to as “GE” herein). During the year ended December 31, 2012, GE’s ownership of Company common shares decreased to less than 5.0% of the Company’s outstanding shares and it ceased to be a related party; accordingly, revenue from GE is no longer presented as related party revenue. Related party transactions during the year ended December 31, 2012 included transactions with a client who had a significant interest in the Company. During the year ended December 31, 2012, such interest decreased to less than 5% of the Company’s outstanding shares and such client is no longer a related party. The Company has also entered into related party transactions with its non-consolidating affiliates and a client in which one of the Company’s directors has a controlling interest. 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, as described in note 3A(d). The Company has also entered into related party transactions with a significant shareholder and its affiliates. During the year ended December 31, 2014, the Company also entered into related party transactions with its non-consolidating affiliates. | |
The Company’s related party transactions can be categorized as follows: | |
Revenue from services | |
For the year ended December 31, 2012, the Company recognized net revenues of $145 from a client in which one of the Company’s directors has a controlling interest. | |
For the year ended December 31, 2012, the Company recognized net revenues of $405 from a client which has a significant interest in the Company. | |
For the year ended December 31, 2013, the Company recognized net revenues of $938 from clients which are affiliates of a significant shareholder of the Company. | |
For the year ended December 31, 2014, the Company recognized net revenues of $285 from a client which is a significant shareholder of the Company. | |
For the year ended December 31, 2014, the Company recognized net revenues of $5,580, from a client which is one of the non-consolidating affiliates of the Company and this amount is receivable as of December 31, 2014. | |
Cost of revenue from services | |
The Company purchases certain services from its non-consolidating affiliates mainly relating to training and recruitment, the costs of which are included in cost of revenue. For the years ended December 31, 2012, 2013 and 2014, cost of revenue includes an amount of $2,458, $2,140 and $2,126, respectively. | |
Selling, general and administrative expenses | |
The Company purchases certain services from its non-consolidating affiliates mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the years ended December 31, 2012, 2013 and 2014, selling, general and administrative expenses includes an amount of $532, $505 and $613, respectively. Further, for the year ended December 31, 2014, the Company entered into transactions with a significant shareholder of the Company amounting to $900 and the same is outstanding as of December 31, 2014. | |
Investment in equity affiliates | |
During the years ended December 31, 2012, 2013 and 2014, the Company made investments of $205, $0 and $5,146, respectively, in its non-consolidating affiliates. As of December 31, 2014, the investment amount is outstanding and has been included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. Further, in the first quarter of 2013, the Company acquired the balance of the outstanding interest in its non-consolidating affiliate, NGEN for contingent consideration amounting to $158, which resulted in such affiliate becoming a wholly-owned subsidiary. The results of operations and the fair value of the assets and liabilities of such wholly-owned subsidiaries are included in the Company’s Consolidated Financial Statements from the date of acquisition. | |
As of December 31, 2013 and 2014, the Company’s investment in its non-consolidating affiliates amounted to $384 and $494, respectively. | |
Others | |
The Company has also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $1,530 that are receivable and have been included in prepaid expenses and other current assets in the consolidated balance sheet. |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and contingencies | 28. Commitments and contingencies |
Capital commitments | |
As of December 31, 2013 and 2014, the Company has committed to spend $4,491 and $6,073, 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 $10,362 as of December 31, 2013 and 2014, respectively. Bank guarantees are generally provided to government agencies, 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. |
Quarterly_financial_data_unaud
Quarterly financial data (unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly financial data (unaudited) | 29. Quarterly financial data (unaudited) | ||||||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
March 31, 2014 | June 30, 2014 | September 30, | December 31, | 2014 | |||||||||||||||||
2014 | 2014 | ||||||||||||||||||||
Total net revenues | $ | 528,190 | $ | 561,611 | $ | 588,107 | $ | 601,530 | $ | 2,279,438 | |||||||||||
Gross profit | $ | 203,901 | $ | 221,486 | $ | 233,632 | $ | 242,331 | $ | 901,350 | |||||||||||
Income from operations | $ | 77,247 | $ | 73,051 | $ | 72,867 | $ | 70,866 | $ | 294,031 | |||||||||||
Income before loss(gain) on Equity method investment activity, net and income tax expense | $ | 67,121 | $ | 62,717 | $ | 61,757 | $ | 62,790 | $ | 254,385 | |||||||||||
Net Income | $ | 50,853 | $ | 48,900 | $ | 46,666 | $ | 45,752 | $ | 192,171 | |||||||||||
Net income attributable to noncontrolling interest | $ | 240 | $ | (84 | ) | $ | 13 | $ | — | $ | 169 | ||||||||||
Net income attributable to Genpact Limited common shareholders | $ | 50,613 | $ | 48,984 | $ | 46,653 | $ | 45,752 | $ | 192,002 | |||||||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||||||||||
Basic | $ | 0.22 | $ | 0.23 | $ | 0.22 | $ | 0.2 | $ | 0.87 | |||||||||||
Diluted | $ | 0.21 | $ | 0.22 | $ | 0.21 | $ | 0.21 | $ | 0.85 | |||||||||||
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||||||||||
Basic | 232,093,917 | 217,541,960 | 216,472,908 | 217,279,606 | 220,847,098 | ||||||||||||||||
Diluted | 237,275,651 | 221,509,867 | 220,535,530 | 221,353,612 | 225,168,665 | ||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, | December 31, | 2013 | |||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
Total net revenues | $ | 503,848 | $ | 534,804 | $ | 534,886 | $ | 558,459 | $ | 2,131,997 | |||||||||||
Gross profit | $ | 192,122 | $ | 202,090 | $ | 205,597 | $ | 212,617 | $ | 812,426 | |||||||||||
Income from operations | $ | 73,949 | $ | 77,988 | $ | 85,957 | $ | 71,633 | $ | 309,527 | |||||||||||
Income before loss(gain) on Equity method investment activity, net and income tax expense | $ | 65,456 | $ | 84,633 | $ | 93,320 | $ | 62,573 | $ | 305,982 | |||||||||||
Net Income | $ | 48,252 | $ | 65,462 | $ | 71,431 | $ | 49,906 | $ | 235,051 | |||||||||||
Net income attributable to noncontrolling interest | $ | 1,515 | $ | 1,586 | $ | 1,169 | $ | 1,064 | $ | 5,334 | |||||||||||
Net income attributable to Genpact Limited common shareholders | $ | 46,737 | $ | 63,876 | $ | 70,262 | $ | 48,842 | $ | 229,717 | |||||||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.28 | $ | 0.31 | $ | 0.2 | $ | 1 | |||||||||||
Diluted | $ | 0.2 | $ | 0.27 | $ | 0.3 | $ | 0.21 | $ | 0.97 | |||||||||||
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||||||||||
Basic | 227,227,226 | 229,237,503 | 230,057,508 | 230,871,408 | 229,348,411 | ||||||||||||||||
Diluted | 233,620,751 | 235,329,303 | 236,336,924 | 237,730,091 | 235,754,267 |
Subsequent_events
Subsequent events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent events | 30. Subsequent events |
On January 27, 2015, the Company entered into a credit agreement under which it obtained two term loans in an aggregate amount of $672,500. The loans, which were repaid on January 30, 2015, were used in connection with the consummation of certain internal reorganization transactions. Borrowings under the credit agreement bore interest at a rate equal to 2.00% per annum. |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Basis of preparation and principles of consolidation | (a) Basis of preparation and principles of consolidation | |||
The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP). | ||||
The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company and all of its subsidiaries that are more than 50% owned and controlled, including variable interest entities in which the Company is the primary beneficiary. 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 consolidated financial statements represents the noncontrolling partners’ interest in the operation of Genpact Netherlands B.V., the noncontrolling shareholders’ interest in the operation of Hello Communications (Shanghai) Co., Ltd. and the profits or losses associated with the noncontrolling interest in such 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. Accordingly, noncontrolling interest relating to Genpact Netherlands B.V. has been computed prior to tax and disclosed accordingly in the Consolidated Statements of Income. During the year ended December 31, 2013, the Company completed the divestiture of Hello Communications (Shanghai) Co., Ltd as described in Note 3B(a). Further, during the year ended December 31, 2014, the Company purchased the noncontrolling interest in Genpact Netherlands B.V., resulting in the Company’s 100% control of the partnership. | ||||
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, undistributed foreign earnings planned to be indefinitely reinvested 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. | ||||
Revenue recognition | c) Revenue recognition | |||
The Company derives its revenue primarily from business process and technology management services, which are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been rendered and collectability is reasonably assured. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues on these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and receivables for the services rendered between the last billing date and the balance sheet date. | ||||
Customer contracts can also include incentive payments received for discrete benefits delivered to clients. Revenues relating to such incentive payments are recorded when the contingency is satisfied and the Company concludes the amounts are earned. | ||||
Revenue with respect to fixed-price contracts for the development of software and related services is recognized in accordance with the percentage of completion method. Guidance has been drawn from Financial Accounting Standards Board (“FASB”) guidance on Software—Revenue Recognition to account for revenue from fixed-price arrangements for software development and related services in conformity with FASB guidance on Revenue Recognition—Construction—Type and Production-Type Contracts. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. | ||||
The Company has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. | ||||
Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from customers have been included as part of revenues. | ||||
The Company enters into multiple-element revenue arrangements in which a customer may purchase a combination of its services. Revenue from multiple-element arrangements is recognized, for each respective element, based on (1) the attainment of the delivery criterion; (2) its fair value, which is determined using the selling price hierarchy of vendor-specific objective evidence (“VSOE”) of fair value, third-party evidence or best estimated selling price, as applicable, and (3) its allocated selling price, which is based on the relative sales price method. | ||||
Accounts receivable | d) Accounts receivable | |||
Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the Consolidated Statements of Cash Flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. | ||||
Cash and cash equivalents | (e) Cash and cash equivalents | |||
Cash and cash equivalents consist of cash and bank balances and all highly liquid investments purchased with an original maturity of three months or less. | ||||
Short- term investments | (f) Short- term investments | |||
All liquid investments with an original maturity greater than 90 days but less than one year are considered to be short-term investments. Marketable short-term investments are classified and accounted for as available-for-sale investments. Available-for-sale investments are reported at fair value with changes in unrealized gains and losses recorded as a separate component of other comprehensive income (loss) until realized. Realized gains and losses on investments are determined based on the specific identification method and are included in “Other income (expense), net.” The Company does not hold these investments for speculative or trading purposes. | ||||
Property, plant and equipment, net | (g) Property, plant and equipment, net | |||
Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are charged to earnings as incurred. The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: | ||||
Years | ||||
Buildings | 40 | |||
Furniture and fixtures | 4 | |||
Computer equipment and servers | 4 | |||
Plant, machinery and equipment | 4 | |||
Computer software | 4 | |||
Leasehold improvements | Lesser of lease period | |||
or 10 years | ||||
Vehicles | 4-Mar | |||
The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs incurred while developing internal-use computer software. Capitalized software costs are included in property, plant and equipment on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software. | ||||
Advances paid towards the acquisition of property, plant and equipment outstanding as of each balance sheet date and the cost of property, plant and equipment not put to use before such date are disclosed under “Capital work in progress.” | ||||
Research and development expense | (h) Research and development expense | |||
Development costs incurred for software to be sold, if any, are expensed as incurred as research and development costs until technological feasibility has been established for the product. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Thereafter, all software production costs will be capitalized and amortized over their useful lives and reported at the lower of unamortized cost and net realizable value. | ||||
Business combinations | (i) Business combinations, goodwill and other intangible assets | |||
The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any 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 10 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 | |||
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. | ||||
Impairment of long-lived assets | (j) Impairment of long-lived assets | |||
Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. | ||||
Foreign currency | (k) Foreign currency | |||
The consolidated financial statements are reported in U.S. dollars. The functional currency of Genpact Limited is the U.S. dollar. The functional currency for subsidiaries organized in Europe, other than the U.K., the Czech Republic and one subsidiary in Poland, is the Euro, and the functional currencies of subsidiaries organized in Brazil, China, Colombia, Guatemala, India, Japan, Morocco, South Africa, the Philippines, the U.K., Poland, the Czech Republic, Hong Kong, Singapore, Australia, Canada and United Arab Emirates are their respective local currencies. The functional currency of all other Company subsidiaries is the U.S. dollar. The translation of the functional currencies of the respective subsidiaries into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. | ||||
Monetary assets and liabilities of each subsidiary denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing at the balance sheet date. Transactions of each subsidiary in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. | ||||
Derivative instruments and hedging activities | (l) Derivative instruments and hedging activities | |||
In the normal course of business, the Company uses derivative financial instruments to manage fluctuations in foreign currency exchange rates. The Company purchases forward foreign exchange contracts to mitigate the risk of changes in foreign exchange rates on intercompany transactions and forecasted transactions denominated in foreign currencies. | ||||
The Company recognizes derivative instruments and hedging activities as either assets or liabilities in its consolidated balance sheets and measures them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Changes in the fair values of derivatives designated as cash flow hedges are deferred and recorded as a component of other comprehensive income (loss) reported under accumulated other comprehensive income (loss) until the hedged transactions occur and are then recognized in the consolidated statements of income along with the underlying hedged item and disclosed as part of “Total net revenues,” “Cost of revenue,” and “Selling, general and administrative expenses,” as applicable. Changes in the fair value of derivatives not designated as hedging instruments, and the ineffective portion of derivatives designated as cash flow hedges are recognized in the consolidated statements of income and are included in foreign exchange (gains) losses, net, and other income (expense), net, respectively. | ||||
With respect to derivatives designated as hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the inception of the hedge and on a quarterly basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative or a portion thereof is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, the Company will prospectively discontinue hedge accounting with respect to that derivative. | ||||
In all situations in which hedge accounting is discontinued and the derivative is retained, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent change in its fair value in the consolidated statements of income. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately, in foreign exchange (gains) losses, net in the consolidated statements of income, the gains and losses attributable to such derivative that were accumulated in other comprehensive income (loss). | ||||
Income taxes | (m) Income taxes | |||
The Company accounts for income taxes using the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases and all operating loss carry forwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period that includes the enactment date or the filing or approval date of the tax status change. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||||
The Company applies a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining, based on the technical merits, that the position will more likely than not be sustained upon examination. The second step is to measure the tax benefit as the largest amount of the tax benefit that is greater than 50% likely of being realized upon settlement. The Company includes interest and penalties related to unrecognized tax benefits within its provision for income tax expense. | ||||
Employee Benefit Plan | (n) Employee Benefit Plan | |||
Contributions to defined contribution plans are charged to consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. | ||||
The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. | ||||
Stock-based compensation | (o) Stock-based compensation | |||
The Company recognizes and measures compensation expense for all stock-based awards based on the grant date fair value. For option awards, grant date fair value is determined under the option-pricing model (Black-Scholes-Merton) and for awards other than option awards, grant date fair value is determined on the basis of the fair market value of a Company common share on the date of grant of such awards. The Company recognizes compensation expense for stock-based awards net of estimated forfeitures. Stock-based compensation recognized in the consolidated statements of income for the years ended December 31, 2012, 2013 and 2014 is based on awards ultimately expected to vest. As a result, the expense has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from such estimates. | ||||
Financial instruments and concentration of credit risk | (p) 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 investments, 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 25% of receivables as of December 31, 2013 and 2014, respectively. GE accounted for 26%, 23% and 20% of revenues for the years ended December 31, 2012, 2013 and 2014, respectively. | ||||
Earnings (loss) per share | (q) Earnings (loss) per share | |||
Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. | ||||
Commitments and contingencies | (r) Commitments and contingencies | |||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. | ||||
Recently adopted accounting pronouncements | (s) 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 | (t) 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) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Schedule of Estimated Economic Useful Lives of Property Plant and Equipment | The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: | ||
Years | |||
Buildings | 40 | ||
Furniture and fixtures | 4 | ||
Computer equipment and servers | 4 | ||
Plant, machinery and equipment | 4 | ||
Computer software | 4 | ||
Leasehold improvements | Lesser of lease period | ||
or 10 years | |||
Vehicles | 4-Mar | ||
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 | ||
Other intangible assets | 3-9 years |
Business_Acquisitions_and_Dive1
Business Acquisitions and Divestitures (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Third Pillar System Inc | |||||||
Purchase Price Allocation Based on Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase price based on the fair value of assets acquired and liabilities assumed as of the acquisition date: | ||||||
Cash Consideration | $ | 2,500 | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Net assets acquired | 199 | ||||||
Intangible assets | 298 | ||||||
Total identifiable net assets acquired | $ | 497 | |||||
Goodwill | 2,003 | ||||||
Total | $ | 2,500 | |||||
Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | |||||||
Business Acquisition Purchase Price Determination | The following table summarizes the allocation of the purchase price based on the fair value of the assets acquired and liabilities assumed as of the date of the acquisition, including measurement period adjustments: | ||||||
Purchase price | $ | 47,197 | |||||
Acquisition related costs included in selling, general and administrative expenses as incurred | 310 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Net assets acquired | 1,171 | ||||||
Intangible assets | 11,200 | ||||||
Total identifiable net assets acquired | $ | 12,371 | |||||
Goodwill | 34,826 | ||||||
Total | $ | 47,197 | |||||
Purchase Price Allocation Based on Fair Value of Assets Acquired and Liabilities Assumed | Pursuant to the terms of the acquisition agreements, the purchase consideration for the Jawood Business is comprised of the following: | ||||||
Purchase consideration after adjustment for closing date net debt working capital, indebtedness and cash | $ | 48,576 | |||||
Seller expenses | (1,379 | ) | |||||
Total purchase price | $ | 47,197 | |||||
Fair Value and Estimated Useful Lives of Intangibles | The values and estimated useful lives of the intangible assets are as follows: | ||||||
Value | Estimated useful | ||||||
life | |||||||
Customer related intangible assets | $ | 10,200 | 1 – 7 years | ||||
Marketing related intangible assets | 1,000 | 1 – 5 years | |||||
Pharmalink Consulting Inc | |||||||
Purchase Consideration for the Acquisition | The purchase consideration for the acquisition is set forth below: | ||||||
Cash consideration after preliminary adjustment for net debt and working capital | $ | 125,901 | |||||
Fair value of contingent earn-out consideration (ranging from $0 to $27,405) | 12,730 | ||||||
Total preliminary estimated purchase consideration | $ | 138,631 | |||||
Purchase Price Allocation Based on Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the estimated purchase price based on the fair value of the assets acquired and the liabilities assumed as of the date of acquisition including measurement period adjustments: | ||||||
Preliminary estimated purchase price | $ | 138,631 | |||||
Acquisition related costs included in selling, general and administrative expenses as incurred | 1,977 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Net assets acquired | 7,174 | ||||||
Intangible assets | 29,923 | ||||||
Deferred tax asset/(liability), net | (8,419 | ) | |||||
Total identifiable net assets acquired | $ | 28,678 | |||||
Goodwill | 109,953 | ||||||
Total | $ | 138,631 | |||||
Japan Finance and Accounting Service Delivery | |||||||
Purchase Consideration for the Acquisition | The purchase consideration for the acquisition is set forth below: | ||||||
Cash consideration after preliminary adjustment for pension underfunding and closing net assets value | $ | 10,599 | |||||
Fair value of contingent earn-out consideration (ranging from $0 to $15,750) | 11,198 | ||||||
Total preliminary estimated purchase consideration | $ | 21,797 | |||||
Business Acquisition Purchase Price Determination | The following table summarizes the allocation of the preliminary estimated purchase price based on the fair value of the assets acquired and the liabilities assumed as of the date of acquisition: | ||||||
Preliminary estimated purchase price | $ | 21,797 | |||||
Acquisition related costs included in selling, general and administrative expenses as incurred | 796 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||
Net assets acquired | (323 | ) | |||||
Customer related intangible assets | 7,522 | ||||||
Deferred tax asset/(liability), net | (2,496 | ) | |||||
Total identifiable net assets acquired | $ | 4,703 | |||||
Goodwill | 17,094 | ||||||
Total | $ | 21,797 |
Cash_and_cash_equivalents_Tabl
Cash and cash equivalents (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Cash And Cash Equivalents | Cash and cash equivalents as of December 31, 2013 and 2014 comprise: | ||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Deposits with banks | $ | 123,545 | $ | 130,610 | |||||
Other cash and bank balances | 447,731 | 331,178 | |||||||
Total | $ | 571,276 | $ | 461,788 | |||||
Accounts_receivable_net_of_res1
Accounts receivable, net of reserve for doubtful receivables (Tables) | 12 Months Ended | ||||||||||||
Dec. 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, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Opening Balance as of January 1 | $ | 8,704 | $ | 9,073 | $ | 16,560 | |||||||
Additions due to acquisitions | 184 | — | 178 | ||||||||||
Additions charged to expense | 3,878 | 11,420 | 3,107 | ||||||||||
Deductions | (3,693 | ) | (3,933 | ) | (4,653 | ) | |||||||
Closing Balance | $ | 9,073 | $ | 16,560 | $ | 15,192 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value of Assets and Liabilities Measured on Recurring Basis | The Company measures certain financial assets and liabilities, including derivative instruments, at their fair values on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2013 and 2014: | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | 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 December 31, 2014 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Derivative instruments (Note a) | $ | 33,967 | $ | — | $ | 33,967 | $ | — | |||||||||
Total | $ | 33,967 | $ | — | $ | 33,967 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (Note b) | $ | 101,516 | $ | — | $ | 101,516 | $ | — | |||||||||
Total | $ | 101,516 | $ | — | $ | 101,516 | $ | — | |||||||||
(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) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 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 | ||||||||||||||||||||||||||||||||||||||||
(note a) | (liability) (note b) | ||||||||||||||||||||||||||||||||||||||||
As of | As of | As of | As of | ||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts denominated in: | |||||||||||||||||||||||||||||||||||||||||
United States Dollars (sell) Indian Rupees (buy) | $ | 1,143,000 | $ | 1,282,800 | $ | (203,822 | ) | $ | (86,913 | ) | |||||||||||||||||||||||||||||||
United States Dollars (sell) Mexican Peso (buy) | 9,000 | 5,640 | (268 | ) | (514 | ) | |||||||||||||||||||||||||||||||||||
United States Dollars (sell) Philippines Peso (buy) | 52,200 | 72,900 | (2,357 | ) | (738 | ) | |||||||||||||||||||||||||||||||||||
Euro (sell) United States Dollars (buy) | 43,779 | 98,903 | (2,434 | ) | 5,458 | ||||||||||||||||||||||||||||||||||||
Euro (sell) Hungarian Forints (buy) | 4,121 | — | 131 | — | |||||||||||||||||||||||||||||||||||||
Euro (sell) Romanian Leu (buy) | 61,977 | 81,072 | 1,751 | 562 | |||||||||||||||||||||||||||||||||||||
Japanese Yen (sell) Chinese Renminbi (buy) | 30,731 | 28,586 | 1,970 | 2,766 | |||||||||||||||||||||||||||||||||||||
Pound Sterling (sell) United States Dollars (buy) | 94,338 | 133,435 | (4,312 | ) | 4,278 | ||||||||||||||||||||||||||||||||||||
Australian Dollars (sell) United States Dollars (buy) | 85,156 | 104,362 | 3,363 | 7,552 | |||||||||||||||||||||||||||||||||||||
$ | (205,978 | ) | $ | (67,549 | ) | ||||||||||||||||||||||||||||||||||||
(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 | As of | As of | As of | ||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other current assets | $ | 6,098 | $ | 16,636 | $ | — | $ | 202 | |||||||||||||||||||||||||||||||||
Other assets | $ | 1,865 | $ | 17,129 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | $ | 83,667 | $ | 64,650 | $ | 26 | $ | 965 | |||||||||||||||||||||||||||||||||
Other liabilities | $ | 130,248 | $ | 35,901 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||||||||||||||
Before- | Tax | Net of | Before- | Tax | Net of | Before- | Tax | Net of | |||||||||||||||||||||||||||||||||
Tax | (Expense) | tax | Tax | (Expense) | tax | Tax | (Expense) | tax | |||||||||||||||||||||||||||||||||
amount | or | Amount | amount | or | Amount | amount | or | Amount | |||||||||||||||||||||||||||||||||
Benefit | Benefit | Benefit | |||||||||||||||||||||||||||||||||||||||
Opening balance as of January 1 | $ | (203,006 | ) | $ | 71,125 | $ | (131,881 | ) | $ | (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 | (34,927 | ) | 12,651 | (22,276 | ) | (66,812 | ) | 25,239 | (41,573 | ) | (49,161 | ) | 17,498 | (31,663 | ) | ||||||||||||||||||||||||||
Changes in fair value of effective portion of outstanding derivatives, net | 4,323 | 596 | 4,919 | (109,008 | ) | 38,781 | (70,227 | ) | 90,005 | (31,468 | ) | 58,537 | |||||||||||||||||||||||||||||
Gain (loss) on cash flow hedging derivatives, net | 39,250 | (12,055 | ) | 27,195 | (42,196 | ) | 13,542 | (28,654 | ) | 139,166 | (48,966 | ) | 90,200 | ||||||||||||||||||||||||||||
Closing balance as of December 31 | $ | (163,756 | ) | $ | 59,070 | $ | (104,686 | ) | $ | (205,952 | ) | $ | 72,612 | $ | (133,340 | ) | $ | (66,786 | ) | $ | 23,646 | $ | (43,140 | ) | |||||||||||||||||
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 | Location of Gain | Amount of Gain | ||||||||||||||||||||||||||||||||||||
Cash Flow | recognized in OCI on | Gain (Loss) | (Loss) reclassified from OCI | (Loss) recognized in | (Loss) recognized | ||||||||||||||||||||||||||||||||||||
Hedging | Derivatives | reclassified from | into Statement | Income on Derivatives | in income on | ||||||||||||||||||||||||||||||||||||
Relationships | (Effective Portion) | OCI into | of Income | (Ineffective Portion | Derivatives | ||||||||||||||||||||||||||||||||||||
Statement of | (Effective Portion) | and Amount excluded | (Ineffective Portion | ||||||||||||||||||||||||||||||||||||||
Income (Effective | from Effectiveness | and Amount | |||||||||||||||||||||||||||||||||||||||
Portion) | Testing) | excluded from | |||||||||||||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||||||||||||||
Testing) | |||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | Year ended | |||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | 2012 | 2013 | 2014 | 2012 | 2013 | 2014 | |||||||||||||||||||||||||||||||||
Forward foreign exchange contracts | $ | 4,323 | $ | (109,008 | ) | $ | 90,005 | Revenue | $ | (4,432 | ) | $ | 7,548 | $ | (4,301 | ) | Foreign exchange | $ | — | $ | — | $ | — | ||||||||||||||||||
(gains) losses, net | |||||||||||||||||||||||||||||||||||||||||
Cost of revenue | (24,183 | ) | (59,929 | ) | (35,539 | ) | |||||||||||||||||||||||||||||||||||
Selling, general and | (6,312 | ) | (14,431 | ) | (9,321 | ) | |||||||||||||||||||||||||||||||||||
administrative | |||||||||||||||||||||||||||||||||||||||||
expenses | |||||||||||||||||||||||||||||||||||||||||
$ | 4,323 | $ | (109,008 | ) | $ | 90,005 | $ | (34,927 | ) | $ | (66,812 | ) | $ | (49,161 | ) | $ | — | $ | — | $ | — | ||||||||||||||||||||
Non-designated Hedges | |||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging | Location of (Gain) Loss recognized in Statement of | Amount of (Gain) Loss | |||||||||||||||||||||||||||||||||||||||
instruments | Income on Derivatives | recognized in Statement of | |||||||||||||||||||||||||||||||||||||||
Income on Derivatives | |||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||||||||||||||
Forward foreign exchange contracts (Note a) | Foreign exchange (gains) losses, net | $ | (3,884 | ) | $ | 18,353 | $ | (287 | ) | ||||||||||||||||||||||||||||||||
$ | (3,884 | ) | $ | 18,353 | $ | (287 | ) | ||||||||||||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||||||||||||||||||
Prepaid_expenses_and_other_cur1
Prepaid expenses and other current assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: | ||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Advance taxes | $ | 65,053 | $ | 61,251 | |||||
Deferred transition costs | 37,050 | 40,185 | |||||||
Derivative instruments | 6,098 | 16,838 | |||||||
Employee advances | 5,397 | 5,816 | |||||||
Advances to suppliers | 1,994 | 3,358 | |||||||
Prepaid expenses | 12,569 | 12,949 | |||||||
Customer acquisition cost | 1,904 | 5,557 | |||||||
Deposits | 3,896 | 1,754 | |||||||
Others | 5,152 | 7,772 | |||||||
$ | 139,113 | $ | 155,480 | ||||||
Property_plant_and_equipment_n1
Property, plant and equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, plant and equipment, net | Property, plant and equipment, net consist of the following: | ||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Land | $ | 10,566 | $ | 10,324 | |||||
Buildings | 48,743 | 46,272 | |||||||
Furniture and fixtures | 30,275 | 33,908 | |||||||
Computer equipment and servers | 163,106 | 176,572 | |||||||
Plant, machinery and equipment | 61,514 | 68,139 | |||||||
Computer software | 87,443 | 93,054 | |||||||
Leasehold improvements | 86,937 | 89,770 | |||||||
Vehicles | 6,506 | 6,607 | |||||||
Capital work in progress | 7,803 | 7,314 | |||||||
Property, plant and equipment, gross | $ | 502,893 | $ | 531,960 | |||||
Less: Accumulated depreciation and amortization | (329,689 | ) | (356,024 | ) | |||||
Property, plant and equipment, net | $ | 173,204 | $ | 175,936 | |||||
Goodwill_and_intangible_assets1
Goodwill and intangible assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Changes in Goodwill | The following table presents changes in goodwill for the years ended December 31, 2013 and 2014: | ||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Opening balance | $ | 956,064 | $ | 953,849 | |||||||||||||||||||||
Goodwill relating to acquisitions consummated during the period | 37,918 | 127,047 | |||||||||||||||||||||||
Goodwill relating to divestitures consummated during the period | (3,450 | ) | — | ||||||||||||||||||||||
Impact of measurement period adjustments | (362 | ) | — | ||||||||||||||||||||||
Effect of exchange rate fluctuations | (36,321 | ) | (23,682 | ) | |||||||||||||||||||||
Closing balance | $ | 953,849 | $ | 1,057,214 | |||||||||||||||||||||
Goodwill Allocated to Reporting Units | Goodwill has been allocated to the following reporting units, which represent different business units of the Company, as follows: | ||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
India | $ | 384,533 | $ | 477,969 | |||||||||||||||||||||
China | 45,699 | 60,585 | |||||||||||||||||||||||
Europe | 44,146 | 39,189 | |||||||||||||||||||||||
Americas | 46,583 | 46,583 | |||||||||||||||||||||||
Headstrong | 432,888 | 432,888 | |||||||||||||||||||||||
$ | 953,849 | $ | 1,057,214 | ||||||||||||||||||||||
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 December 31, 2014 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
carrying | amortization | carrying | amortization | ||||||||||||||||||||||
amount | amount | ||||||||||||||||||||||||
Customer-related intangible assets | $ | 288,983 | $ | 213,878 | $ | 75,105 | $ | 310,069 | $ | 228,095 | $ | 81,974 | |||||||||||||
Marketing-related intangible assets | 37,919 | 20,545 | 17,374 | 43,137 | 23,801 | 19,336 | |||||||||||||||||||
Other intangible assets | 10,245 | 3,608 | 6,637 | 19,002 | 5,768 | 13,234 | |||||||||||||||||||
$ | 337,147 | $ | 238,031 | $ | 99,116 | $ | 372,208 | $ | 257,664 | $ | 114,544 | ||||||||||||||
Estimated Amortization Schedule of Intangible Assets for Future Periods | The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: | ||||||||||||||||||||||||
For the year ending December 31: | |||||||||||||||||||||||||
2015 | $ | 27,577 | |||||||||||||||||||||||
2016 | 22,987 | ||||||||||||||||||||||||
2017 | 19,902 | ||||||||||||||||||||||||
2018 | 16,316 | ||||||||||||||||||||||||
2019 and beyond | 27,762 | ||||||||||||||||||||||||
$ | 114,544 | ||||||||||||||||||||||||
Other_assets_Tables
Other assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Assets | Other assets consist of the following: | ||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Customer acquisition cost | $ | 6,088 | $ | 15,035 | |||||
Advance taxes | 7,839 | 27,381 | |||||||
Deferred transition costs | 27,818 | 37,230 | |||||||
Deposits | 23,287 | 24,989 | |||||||
Derivative instruments | 1,865 | 17,129 | |||||||
Prepaid expenses | 4,895 | 2,565 | |||||||
Accounts Receivable due after one year | 15,844 | 11,635 | |||||||
Others | 9,729 | 10,742 | |||||||
$ | 97,365 | $ | 146,706 | ||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Future Minimum Lease Payments under Operating Lease Arrangements | Future minimum lease payments under these agreements are as follows: | ||||
Year ending December 31: | |||||
2015 | $ | 48,191 | |||
2016 | 45,628 | ||||
2017 | 37,894 | ||||
2018 | 28,956 | ||||
2019 | 24,888 | ||||
2020 and beyond | 89,737 | ||||
Total minimum lease payments | $ | 275,294 | |||
Accrued_expenses_and_other_cur1
Accrued expenses and other current liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: | ||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Accrued expenses | $ | 98,988 | $ | 114,770 | |||||
Accrued employee cost | 126,814 | 143,829 | |||||||
Deferred transition revenue | 46,895 | 49,792 | |||||||
Statutory liabilities | 24,466 | 24,713 | |||||||
Retirement benefits | 14,853 | 16,807 | |||||||
Derivative instruments | 83,693 | 65,615 | |||||||
Advance from customers | 18,334 | 19,857 | |||||||
Earn-out and deferred consideration | 3,492 | 3,232 | |||||||
Other liabilities | 4,457 | 12,399 | |||||||
$ | 421,992 | $ | 451,014 | ||||||
Longterm_debt_Tables
Long-term debt (Tables) | 12 Months Ended | ||||
Dec. 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 | ||||
2015 | $ | 4,288 | |||
2016 | 4,306 | ||||
2017 | 4,338 | ||||
2018 | 4,363 | ||||
2019 | 636,307 | ||||
$ | 653,602 | ||||
Other_liabilities_Tables
Other liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities | Other liabilities consist of the following: | ||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Accrued employee cost | $ | 5,103 | $ | 5,121 | |||||
Deferred transition revenue | 47,405 | 52,419 | |||||||
Retirement benefits | 24,330 | 29,652 | |||||||
Derivative instruments | 130,248 | 35,901 | |||||||
Amount received from GE under indemnification arrangement, pending adjustment | 7,839 | 5,129 | |||||||
Advance from customers | 8,000 | 6,000 | |||||||
Earn-out and deferred consideration | 9,857 | 30,758 | |||||||
Others | 10,102 | 11,662 | |||||||
$ | 242,884 | $ | 176,642 | ||||||
Employee_benefit_plans_Tables
Employee benefit plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Funded Status of Defined Benefit Plans and Amount Recognized | The following table sets forth the funded status of the defined benefit plans and the amounts recognized in the Company’s financial statements based on an actuarial valuation carried out as of December 31, 2013 and 2014. | ||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Change in benefit obligation | |||||||||||||||||
Projected benefit obligation at the beginning of the year | $ | 29,821 | $ | 28,596 | |||||||||||||
Service cost | 4,511 | 4,721 | |||||||||||||||
Actuarial loss (gain) | (1,310 | ) | 1,843 | ||||||||||||||
Interest cost | 2,104 | 2,410 | |||||||||||||||
Liabilities assumed on acquisition | — | 3,967 | |||||||||||||||
Benefits paid | (2,996 | ) | (3,736 | ) | |||||||||||||
Effect of exchange rate changes | (3,534 | ) | (1,356 | ) | |||||||||||||
Projected benefit obligation at the end of the year | $ | 28,596 | $ | 36,445 | |||||||||||||
Change in fair value of plan assets | |||||||||||||||||
Fair value of plan assets at the beginning of the year | $ | 14,957 | $ | 22,798 | |||||||||||||
Employer contributions | 12,325 | 7,139 | |||||||||||||||
Actual gain on plan assets | 1,037 | 1,907 | |||||||||||||||
Assets assumed on acquisition | — | 2,825 | |||||||||||||||
Acturial gain/(loss) | (6 | ) | (6 | ) | |||||||||||||
Benefits paid | (2,996 | ) | (3,736 | ) | |||||||||||||
Effect of exchange rate changes | (2,519 | ) | (1,206 | ) | |||||||||||||
Fair value of plan assets at the end of the year | $ | 22,798 | $ | 29,721 | |||||||||||||
Amounts Included in Other Comprehensive Income (Loss) | Amounts included in other comprehensive income (loss) as of December 31, 2013 and 2014 were as follows: | ||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Net actuarial loss | $ | (5,659 | ) | $ | (7,178 | ) | |||||||||||
Deferred tax assets | 1,765 | 2,178 | |||||||||||||||
Other comprehensive income, net | $ | (3,894 | ) | $ | (5,000 | ) | |||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in other comprehensive income (loss) during the year ended December 31, 2014 were as follows: | ||||||||||||||||
2014 | |||||||||||||||||
Net Actuarial loss | $ | (1,674 | ) | ||||||||||||||
Amortization of net actuarial loss | 411 | ||||||||||||||||
Deferred income taxes | 413 | ||||||||||||||||
Effect of exchange rate changes | (256 | ) | |||||||||||||||
Other comprehensive income (loss), net | $ | (1,106 | ) | ||||||||||||||
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the years ended December 31, 2012, 2013 and 2014 include the following components: | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||
Service costs | $ | 4,047 | $ | 4,511 | $ | 4,721 | |||||||||||
Interest costs | 1,807 | 2,104 | 2,410 | ||||||||||||||
Amortization of actuarial loss | 854 | 421 | 419 | ||||||||||||||
Expected return on plan assets | (961 | ) | (968 | ) | (1,719 | ) | |||||||||||
Net Defined Benefit Plan costs | $ | 5,747 | $ | 6,068 | $ | 5,831 | |||||||||||
Fair Values of Plan Assets | The fair value of the Company’s plan assets as of December 31, 2013 and 2014 by asset category are as follows: | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Asset Category | |||||||||||||||||
Cash | $ | 6,104 | $ | 6,104 | $ | — | $ | — | |||||||||
Fixed Income Securities (Note a) | 21,532 | 4,053 | 17,479 | — | |||||||||||||
Other Securities (Note b) | 2,085 | 512 | 1,573 | — | |||||||||||||
Total | $ | 29,721 | $ | 10,669 | $ | 19,052 | $ | — | |||||||||
As of December 31, 2013 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Asset Category | |||||||||||||||||
Cash | $ | 10,674 | $ | 10,674 | $ | — | $ | — | |||||||||
Fixed Income Securities (Note a) | 9,490 | 1,092 | 8,398 | — | |||||||||||||
Other Securities (Note b) | 2,634 | 1,326 | 1,308 | — | |||||||||||||
Total | $ | 22,798 | $ | 13,092 | $ | 9,706 | $ | — | |||||||||
(a) | Include investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. | ||||||||||||||||
(b) | Include investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. | ||||||||||||||||
Benefit Plan Payments Reflect Expected Future Service | The expected benefit plan payments set forth below reflect expected future service: | ||||||||||||||||
Year ending December 31, | |||||||||||||||||
2015 | $ | 4,487 | |||||||||||||||
2016 | 4,935 | ||||||||||||||||
2017 | 5,465 | ||||||||||||||||
2018 | 5,951 | ||||||||||||||||
2019 | 6,578 | ||||||||||||||||
2020 – 2024 | 33,833 | ||||||||||||||||
$ | 61,249 | ||||||||||||||||
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the years ended December 31, 2012, 2013 and 2014, the Company contributed the following amounts to defined contribution plans in various jurisdictions: | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||
India | $ | 14,102 | $ | 14,443 | $ | 15,272 | |||||||||||
China | 10,888 | 14,681 | 14,518 | ||||||||||||||
U.S. | 3,012 | 3,268 | 5,565 | ||||||||||||||
U.K. | 1,444 | 1,789 | 3,361 | ||||||||||||||
Other Regions | 3,738 | 4,641 | 4,355 | ||||||||||||||
Total | 33,184 | 38,822 | 43,071 | ||||||||||||||
Benefit Obligations Of Gratuity Plan | |||||||||||||||||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Gratuity Plan as of December 31, 2013 and 2014 are presented below: | ||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Discount rate | 9.55% | 8.50%-8.55% | |||||||||||||||
Rate of increase in compensation per annum | 5.20%-11.00% | 5.20%-11.00% | |||||||||||||||
Gratuity Plan Costs | |||||||||||||||||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the Gratuity Plan costs for the years ended December 31, 2012, 2013 and 2014 are presented below: | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||
Discount rate | 9.30%-9.70% | 8.85% | 9.50%-9.55% | ||||||||||||||
Rate of increase in compensation per annum | 5.20%-11.00% | 5.20%-11.00% | 5.20%-11.00% | ||||||||||||||
Expected long term rate of return on plan assets per annum | 7.30%-8.50% | 8.50% | 8.50% | ||||||||||||||
Benefit Obligations Of The Mexican Plan | |||||||||||||||||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2013 and 2014 are presented below: | ||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Discount rate | 6.5 | % | 6.5 | % | |||||||||||||
Rate of increase in compensation per annum | 5.5 | % | 5.5 | % | |||||||||||||
Mexican Plan Costs | |||||||||||||||||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the Mexico Plan costs for the years ended December 31, 2012, 2013 and 2014 are presented below: | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||
Discount rate | 6.5 | % | 6.5 | % | 6.5 | % | |||||||||||
Rate of increase in compensation per annum | 5.5 | % | 5.5 | % | 5.5 | % | |||||||||||
Expected long term rate of return on plan assets per annum | 0 | % | 0 | % | 0 | % | |||||||||||
Benefit Obligations Of Japan Plan | |||||||||||||||||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligation of the Japan Plans as of December 31, 2013 and 2014 are presented below: | ||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Discount rate | 0.5 | % | 0.24%-1.44% | ||||||||||||||
Rate of increase in compensation per annum | 0 | % | 0.00% | ||||||||||||||
Japan Plan Costs | |||||||||||||||||
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the Japan Plans costs for the years ended December 31, 2012, 2013 and 2014 are presented below: | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||
Discount rate | 0.9 | % | 0.9 | % | 0.50%-1.44% | ||||||||||||
Rate of increase in compensation per annum | 0 | % | 0 | % | 0.00% | ||||||||||||
Expected long term rate of return on plan assets per annum | 2.69 | % | 2.69 | % | 2.69% |
Stockbased_compensation_Tables
Stock-based compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-based Payment Award, Stock Options Granted, Valuation Assumptions | The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in 2013 and 2014. No options were granted in 2012 other than pertaining to the adjustment to outstanding stock options as a result of the special cash dividend paid in September 2012: | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Dividend yield | — | — | |||||||||||||||
Expected life (in months) | 84 | 84 | |||||||||||||||
Risk free rate of interest for expected life | 1.55% | 2.18% - 2.29% | |||||||||||||||
Volatility | 39.39% | 37.27% - 38.34% | |||||||||||||||
Summary of Stock Option Activity | A summary of stock option activity during the years ended December 31, 2012, 2013 and 2014 is set out below: | ||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Shares arising | Weighted | Weighted average | Aggregate | ||||||||||||||
out of options | average | remaining | intrinsic | ||||||||||||||
exercise price | contractual life | value | |||||||||||||||
(years) | |||||||||||||||||
Outstanding as of January 1, 2012 | 13,734,820 | $ | 10.58 | 5.4 | $ | — | |||||||||||
Granted | — | — | — | — | |||||||||||||
Forfeited | (327,590 | ) | 11.28 | — | — | ||||||||||||
Expired | (81,053 | ) | 15.46 | — | — | ||||||||||||
Exercised | (2,539,517 | ) | 9.83 | — | 14,748 | ||||||||||||
Adjustment for special cash dividend | 1,626,638 | ||||||||||||||||
Outstanding as of December 31, 2012 | 12,413,298 | $ | 9.29 | 4.2 | $ | 77,017 | |||||||||||
Vested and exercisable as of December 31, 2012 and expected to vest thereafter (Note a) | 12,271,334 | $ | 9.28 | 4.2 | $ | 76,339 | |||||||||||
Vested and exercisable as of December 31, 2012 | 10,752,875 | $ | 8.97 | 3.8 | $ | 70,217 | |||||||||||
Weighted average grant date fair value of grants during the period | $ | — | |||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Shares arising | Weighted | Weighted average | Aggregate | ||||||||||||||
out of options | average | remaining | intrinsic | ||||||||||||||
exercise price | contractual life | value | |||||||||||||||
(years) | |||||||||||||||||
Outstanding as of January 1, 2013 | 12,413,298 | $ | 9.29 | 4.2 | $ | — | |||||||||||
Granted | 3,483,000 | 19.35 | — | — | |||||||||||||
Forfeited | (69,863 | ) | 10.65 | — | — | ||||||||||||
Expired | (88,295 | ) | 13.26 | — | — | ||||||||||||
Exercised | (4,635,977 | ) | 9.31 | — | 41,849 | ||||||||||||
Outstanding as of December 31, 2013 | 11,102,163 | $ | 12.4 | 5.2 | $ | 70,512 | |||||||||||
Vested and exercisable as of December 31, 2013 and expected to vest thereafter (Note a) | 10,759,137 | $ | 12.11 | 5.2 | $ | 70,465 | |||||||||||
Vested and exercisable as of December 31, 2013 | 7,091,889 | $ | 8.82 | 3 | $ | 67,719 | |||||||||||
Weighted average grant date fair value of grants during the period | $ | 8.33 | |||||||||||||||
Year ended December 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 | 520,000 | 17.54 | — | — | |||||||||||||
Forfeited | (250,673 | ) | 19.2 | — | — | ||||||||||||
Expired | (27,228 | ) | 12.32 | — | — | ||||||||||||
Exercised (Note b) | (3,972,535 | ) | 7 | — | 47,399 | ||||||||||||
Outstanding as of December 31, 2014 | 7,371,727 | $ | 15.44 | 5.9 | $ | 27,886 | |||||||||||
Vested as of December 31, 2014 and expected to vest thereafter (Note a) | 7,073,004 | $ | 15.19 | 5.9 | $ | 27,755 | |||||||||||
Vested and Exercisable as of December 31, 2014 | 3,542,821 | $ | 11.37 | 3.1 | $ | 26,781 | |||||||||||
Weighted average grant date fair value of grants during the period | $ | 7.54 | |||||||||||||||
(a) | Options expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
(b) | Of this, 2,138,601 options have been net settled upon exercise by issuing 1,485,826 shares (net of minimum statutory withholding taxes). | ||||||||||||||||
Summary of Restricted Share Units Granted | A summary of RSUs granted during the years ended December 31, 2012, 2013 and 2014 is set out below: | ||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Number of Restricted | Weighted Average | ||||||||||||||||
Share Units | Grant Date Fair Value | ||||||||||||||||
Outstanding as of January 1, 2012 | 2,262,153 | $ | 15.27 | ||||||||||||||
Granted | 185,551 | 15.95 | |||||||||||||||
Vested (Note b) | (779,986 | ) | 13.68 | ||||||||||||||
Forfeited | (251,651 | ) | 14.39 | ||||||||||||||
Adjustment for special cash dividend | 272,335 | ||||||||||||||||
Outstanding as of December 31, 2012 | 1,688,402 | $ | 13.74 | ||||||||||||||
Expected to vest (Note a) | 1,357,447 | ||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Number of Restricted | Weighted Average | ||||||||||||||||
Share Units | Grant Date Fair Value | ||||||||||||||||
Outstanding as of January 1, 2013 | 1,688,402 | $ | 13.74 | ||||||||||||||
Granted | 91,623 | 19.52 | |||||||||||||||
Vested (Note c) | (683,522 | ) | 14.28 | ||||||||||||||
Forfeited | (224,731 | ) | 13.6 | ||||||||||||||
Outstanding as of December 31, 2013 | 871,772 | $ | 13.96 | ||||||||||||||
Expected to vest (Note a) | 802,481 | ||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Number of Restricted | Weighted Average | ||||||||||||||||
Share Units | Grant Date Fair Value | ||||||||||||||||
Outstanding as of January 1, 2014 | 871,772 | $ | 13.96 | ||||||||||||||
Granted | 227,248 | 16.58 | |||||||||||||||
Vested (Note d) | (511,513 | ) | 13.83 | ||||||||||||||
Forfeited | (99,089 | ) | 13.77 | ||||||||||||||
Outstanding as of Dec 31, 2014 | 488,418 | $ | 15.36 | ||||||||||||||
Expected to vest (Note a) | 451,721 | ||||||||||||||||
(a) | RSUs expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
(b) | Of this, 717,448 RSUs were net settled upon vesting by issuing 506,473 shares (net of minimum statutory tax withholding). 102,000 shares vested in the year ended December 2011, shares in respect of which were issued in January 2013 (100,800 shares, net of minimum statutory withholding taxes). Shares in respect of an additional 13,719 RSUs, reflecting an adjustment to the 102,000 vested RSUs as a result of the special cash dividend, were issued in January 2013 (13,557 shares, net of minimum statutory withholding taxes). | ||||||||||||||||
Additionally, as of December 31, 2012, 4,533 RSUs vested (including 533 RSUs reflecting an adjustment to 4,000 vested RSUs as a result of the special cash dividend), shares in respect of which were issued in April 2013 (2,059 shares, net of minimum statutory withholding taxes). 44,286 RSUs vested in the year ended December 31, 2012, shares in respect of which were issued in January 2014 after withholding 681 shares to the extent of the minimum statutory withholding taxes. | |||||||||||||||||
(c) | Of this, 622,465 RSUs were net settled upon vesting by issuing 424,201 shares (net of minimum statutory tax withholding). 61,057 RSUs vested in the year ended December 31, 2013, shares in respect of which were issued in January 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | ||||||||||||||||
(d) | Of this, 418,821 RSUs were net settled upon vesting by issuing 285,706 shares (net of minimum statutory withholding taxes). 92,692 RSUs vested in the year ended December 31, 2014, shares in respect of which will be issuable on December 31, 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | ||||||||||||||||
Summary of Performance Units Activity | A summary of PU activity during the years ended December 31, 2012, 2013 and 2014 is set out below: | ||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Number of | Weighted Average | Maximum Shares | |||||||||||||||
Performance Units | Grant Date Fair Value | Eligible to Receive | |||||||||||||||
Outstanding as of January 1, 2012 | 2,271,724 | $ | 15.17 | 3,247,322 | |||||||||||||
Granted | 1,200,000 | 15.25 | 1,800,000 | ||||||||||||||
Vested (Note b) | (772,745 | ) | 13.28 | (1,149,390 | ) | ||||||||||||
Forfeited | (139,809 | ) | 15.56 | (190,053 | ) | ||||||||||||
Adjustment for special cash dividend | 482,341 | 694,718 | |||||||||||||||
Outstanding as of December 31, 2012 | 3,041,511 | $ | 13.26 | 4,402,597 | |||||||||||||
Expected to vest (Note a) | 2,413,073 | ||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Number of | Weighted Average | Maximum Shares | |||||||||||||||
Performance Units | Grant Date Fair Value | Eligible to Receive | |||||||||||||||
Outstanding as of January 1, 2013 | 3,041,511 | $ | 13.26 | 4,402,597 | |||||||||||||
Granted | 2,025,090 | 18.57 | 3,694,635 | ||||||||||||||
Vested (Note c) | (1,024,434 | ) | 12.03 | (1,024,434 | ) | ||||||||||||
Forfeited | (426,345 | ) | 15.19 | (550,078 | ) | ||||||||||||
Addition due to achievement of higher than target performance goals (Note d) | 297,911 | 17.5 | |||||||||||||||
Reduction due to achievement of lower than maximum performance goals (Note e) | (373,702 | ) | |||||||||||||||
Outstanding as of December 31, 2013 | 3,913,733 | $ | 16.44 | 6,149,018 | |||||||||||||
Expected to vest (Note a) | 1,372,781 | ||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Number of | Weighted Average | Maximum Shares | |||||||||||||||
Performance Units | Grant Date Fair Value | Eligible to Receive | |||||||||||||||
Outstanding as of January 1, 2014 | 3,913,733 | $ | 16.44 | 6,149,018 | |||||||||||||
Granted | 1,337,750 | 16.78 | 2,729,125 | ||||||||||||||
Vested (Note f) | (1,469,200 | ) | 14.5 | (1,469,183 | ) | ||||||||||||
Forfeited (Note g) | (2,629,463 | ) | 17.3 | (2,664,980 | ) | ||||||||||||
Addition due to achievement of higher than target performance goals (Note f) | 139,930 | 12.04 | |||||||||||||||
Reduction due to achievement of lower than maximum performance goals (Note h) | (2,095,354 | ) | |||||||||||||||
Outstanding as of December 31, 2014 | 1,292,750 | $ | 16.78 | 2,648,626 | |||||||||||||
Expected to vest (Note a) | 1,153,277 | ||||||||||||||||
(a) | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||||||||||||||||
(b) | 28,901 of the PUs shown as vested as of December 31, 2012 represent an adjustment for the special cash dividend with respect to 214,880 PUs that had vested as of December 31, 2011, shares in respect of which were issued in January 2013 (156,511 shares, net of minimum statutory withholding taxes). | ||||||||||||||||
503,969 shares vested in respect of the PUs granted in March 2010 (including the PUs issued as an adjustment to account for the special cash dividend). Shares in respect of such PUs were issued in March 2013 (334,922 shares) and April 2013 (4,679 shares), net of minimum statutory withholding taxes. | |||||||||||||||||
231,029 shares vested in the year ended December 31, 2012 in respect of the PUs granted in August 2010 Shares in respect of these PUs were issued in January 2014 after withholding 92,994 shares representing the minimum statutory withholding taxes. | |||||||||||||||||
(c) | 1,033,474 shares and 130,890 shares, respectively, vested in respect of the PUs granted in March and June 2011, respectively. | ||||||||||||||||
(d) | Represents additional shares issued in respect of the PUs granted in March 2012 due to the achievement of higher-than-target performance. | ||||||||||||||||
(e) | Represents a reduction in the maximum shares eligible to vest for the PUs granted in March 2012. | ||||||||||||||||
Outstanding PUs as of December 31, 2013 includes 483,999, 1,250,807 and 657,000 shares underlying awards granted in May 2011, March 2013 and May 2013, respectively, for which the performance conditions were not fulfilled. | |||||||||||||||||
(f) | Vested PUs as of December 31, 2014 include an additional 139,930 shares issued for the PUs granted in March 2011 (122,490 shares) and June 2011 (17,440 shares). These shares, in addition to the shares referred to in note (c) above, were issued in March 2014 (697,853 shares) and April 2014 (432 shares) with respect to grants made in March 2011, and 77,619 shares were issued in March 2014 with respect to grants made in June 2011, after withholding shares to the extent of the minimum statutory withholding taxes. | ||||||||||||||||
Vested PUs as of December 31, 2014 also include 1,329,270 shares for the PUs granted in March 2012 based on the compensation committee’s certification of the achievement of the performance goals for the performance period based on the Company’s audited financial statements. Shares in respect of these PUs were issued in January 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||||||||||||||
(g) | 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, all of which were forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. | ||||||||||||||||
(h) | Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest with respect to 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, due to 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) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share | |||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Net income available to Genpact Limited common shareholders | $ | 178,216 | $ | 229,717 | $ | 192,002 | |||||||
Weighted average number of common shares used in computing basic earnings per common share | 223,696,567 | 229,348,411 | 220,847,098 | ||||||||||
Dilutive effect of stock-based awards | 5,835,949 | 6,405,856 | 4,321,567 | ||||||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 229,532,516 | 235,754,267 | 225,168,665 | ||||||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||
Basic | $ | 0.8 | $ | 1 | $ | 0.87 | |||||||
Diluted | $ | 0.78 | $ | 0.97 | $ | 0.85 | |||||||
Cost_of_revenue_Tables
Cost of revenue (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Cost of Revenue | Cost of revenue consists of the following: | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Personnel expenses | $ | 795,525 | $ | 904,445 | $ | 943,105 | |||||||
Operational expenses | 313,432 | 367,213 | 390,441 | ||||||||||
Depreciation and amortization | 48,809 | 47,913 | 44,542 | ||||||||||
$ | 1,157,766 | $ | 1,319,571 | $ | 1,378,088 | ||||||||
Selling_general_and_administra1
Selling, general and administrative expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Personnel expenses | $ | 314,587 | $ | 347,384 | $ | 419,299 | |||||||
Operational expenses | 133,173 | 128,982 | 157,755 | ||||||||||
Depreciation and amortization | 8,851 | 8,444 | 8,592 | ||||||||||
$ | 456,611 | $ | 484,810 | $ | 585,646 | ||||||||
Other_operating_income_expense1
Other operating (income) expense, net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Operating (Income) Expense, Net | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Other operating (income) expense | $ | (3,185 | ) | $ | (3,259 | ) | $ | (3,163 | ) | ||||
Provision for impairment of capital work in progress / property, plant and equipment | 6,214 | 2,373 | — | ||||||||||
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | (3,013 | ) | (4,670 | ) | (3,707 | ) | |||||||
Other operating (income) expense, net | $ | 16 | $ | (5,556 | ) | $ | (6,870 | ) | |||||
Other_income_expense_net_Table
Other income (expense), net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income (Expense), Net | Other income (expense), net consists of the following: | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Interest income | $ | 12,007 | $ | 15,736 | $ | 4,405 | |||||||
Interest expense* | (28,121 | ) | (38,876 | ) | (33,800 | ) | |||||||
Provision (created) reversed for loss on divestures | (459 | ) | (3,487 | ) | — | ||||||||
Other income (expense) ** | 2,074 | 2,319 | 2,112 | ||||||||||
Other income (expense), net | $ | (14,499 | ) | $ | (24,308 | ) | $ | (27,283 | ) | ||||
* | The years ended December 31, 2012 and 2013 include $5,534 and $3,157, respectively, representing acceleration of the amortization of debt issuance costs relating to the prepayment and termination of the previous credit facility in August 2012, and the amendment of the new credit facility in June 2013 as described in Note 14. | ||||||||||||
** | The year ended December 31, 2012 includes $17,227, representing 2012 recapitalization expenses, net of reimbursement from GA and OH amounting to $17,000, as described in Note 1. |
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Expense (Benefit) | Income tax expense (benefit) for the years ended December 31, 2012, 2013 and 2014 is allocated as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Income from continuing operations | $ | 78,419 | $ | 71,100 | $ | 57,419 | |||||||
Other Comprehensive Income: | |||||||||||||
Unrealized gains (losses) on cash flow hedges | 12,055 | (13,542 | ) | 48,966 | |||||||||
Retirement benefits | (643 | ) | 138 | (413 | ) | ||||||||
Total income tax expense (benefit) | $ | 89,831 | $ | 57,696 | $ | 105,972 | |||||||
Components of Income before Income Taxes from Continuing Operations | The components of income before income taxes from continuing operations are as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Domestic (U.S.) | $ | (11,631 | ) | $ | 8,199 | $ | 19,614 | ||||||
Foreign (Non U.S.) | 274,640 | 297,952 | 229,976 | ||||||||||
Income before income taxes | $ | 263,009 | $ | 306,151 | $ | 249,590 | |||||||
Income Tax Expense (Benefit) Attributable to Income from Continuing Operations | Income tax expense (benefit) attributable to income from continuing operations consists of: | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Current taxes : | |||||||||||||
Domestic (U.S. Federal Taxes) | $ | 2,171 | $ | 1,443 | $ | 3,768 | |||||||
Domestic (U.S. State Taxes) | 899 | 2,152 | 666 | ||||||||||
Foreign (Non U.S.) | 85,377 | 68,621 | 65,237 | ||||||||||
$ | 88,447 | $ | 72,216 | $ | 69,671 | ||||||||
Deferred taxes : | |||||||||||||
Domestic (U.S. Federal Taxes) | ($ | 7,819 | ) | $ | 8,357 | $ | 2,761 | ||||||
Domestic (U.S. State Taxes) | 546 | (2,216 | ) | (193 | ) | ||||||||
Foreign (Non U.S.) | (2,755 | ) | (7,257 | ) | (14,820 | ) | |||||||
($ | 10,028 | ) | ($ | 1,116 | ) | ($ | 12,252 | ) | |||||
Total income tax expense (benefit) | $ | 78,419 | $ | 71,100 | $ | 57,419 | |||||||
Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes | Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes, as a result of the following: | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Income before income tax expense | $ | 263,009 | $ | 306,151 | $ | 249,590 | |||||||
Statutory tax rates | 35 | % | 35 | % | 35 | % | |||||||
Computed expected income tax expense | 92,053 | 107,153 | 87,356 | ||||||||||
Increase (decrease) in income taxes resulting from: | |||||||||||||
Foreign tax rate differential | 2,408 | 520 | 2,339 | ||||||||||
Tax benefit from tax holiday | (25,554 | ) | (39,785 | ) | (35,868 | ) | |||||||
Tax exempt income | (1,077 | ) | (7,224 | ) | (8,572 | ) | |||||||
Non-deductible expenses | 959 | 5,637 | 5,319 | ||||||||||
Effect of change in tax rates | 635 | (2,268 | ) | 176 | |||||||||
Change in valuation allowance | 12,548 | 1,088 | (2,880 | ) | |||||||||
Prior year tax expense (benefit) * | (7,490 | ) | — | — | |||||||||
Intercompany transfers | — | — | 2,822 | ||||||||||
Other | 3,937 | 5,979 | 6,727 | ||||||||||
Reported income tax expense (benefit) | $ | 78,419 | $ | 71,100 | $ | 57,419 | |||||||
* | During 2012, the Company filed an income tax return in a foreign jurisdiction that resulted in the recognition of a deferred tax asset for a capital loss arising from an earlier period that amounted to $7,490. It was not more likely than not that the capital loss would be realized. Therefore, a full valuation allowance was established to offset the recorded deferred tax asset. | ||||||||||||
Components of Deferred Tax Balances | The components of the Company’s deferred tax balances as of December 31, 2013 and 2014 are as follows: | ||||||||||||
As of December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
Deferred tax assets | |||||||||||||
Net operating loss carryforwards | $ | 74,259 | $ | 55,592 | |||||||||
Accrued liabilities and other expenses | 17,738 | 14,731 | |||||||||||
Provision for doubtful debts | 6,199 | 5,643 | |||||||||||
Property, plant and equipment | 5,110 | 4,647 | |||||||||||
Unrealized losses on cash flow hedges, net | 74,030 | 24,646 | |||||||||||
Share-based compensation | 19,673 | 11,226 | |||||||||||
Retirement benefits | 2,718 | 4,517 | |||||||||||
Deferred revenue | 38,051 | 41,024 | |||||||||||
Tax credit carryforwards | 12,299 | 36,602 | |||||||||||
Other | 7,640 | 6,906 | |||||||||||
Gross deferred tax assets | $ | 257,717 | $ | 205,534 | |||||||||
Less: Valuation allowance | (24,654 | ) | (21,094 | ) | |||||||||
Total deferred tax assets | $ | 233,063 | $ | 184,440 | |||||||||
Deferred tax liabilities | |||||||||||||
Intangible assets | $ | 29,102 | $ | 29,653 | |||||||||
Property, plant and equipment | 4,128 | 4,971 | |||||||||||
Deferred cost | 22,490 | 27,261 | |||||||||||
Investments in foreign subsidiaries not indefinitely reinvested | 24,948 | 17,429 | |||||||||||
Other | 7,530 | 8,415 | |||||||||||
Total deferred tax liabilities | $ | 88,198 | $ | 87,729 | |||||||||
Net deferred tax asset | $ | 144,865 | $ | 96,711 | |||||||||
As of December 31, | |||||||||||||
Classified as | 2013 | 2014 | |||||||||||
Deferred tax assets | |||||||||||||
Current | $ | 60,638 | $ | 45,486 | |||||||||
Non-current | $ | 89,305 | $ | 59,135 | |||||||||
Deferred tax liabilities | |||||||||||||
Current | $ | 614 | $ | 1,239 | |||||||||
Non-current | $ | 4,464 | $ | 6,671 | |||||||||
$ | 144,865 | $ | 96,711 | ||||||||||
Change in Total Valuation Allowance for Deferred Tax Assets | The change in the Company’s total valuation allowance for deferred tax assets as of December 31, 2012, 2013 and 2014 is as follows: | ||||||||||||
Year ended December 31 | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Opening valuation allowance | $ | 11,542 | $ | 23,922 | $ | 24,654 | |||||||
Reduction during the year | (364 | ) | (2,643 | ) | (8,662 | ) | |||||||
Addition during the year | 12,744 | 3,375 | 5,102 | ||||||||||
Closing valuation allowance | $ | 23,922 | $ | 24,654 | $ | 21,094 | |||||||
Remaining Tax Loss Carry Forwards Expiration | The remaining tax loss carry-forwards expire as set forth in the table below: | ||||||||||||
US - Federal | Europe | Others | |||||||||||
Year ending December 31, | |||||||||||||
2015 | $ | — | $ | 56 | $ | — | |||||||
2016 | — | 79 | 112 | ||||||||||
2017 | — | 147 | 206 | ||||||||||
2018 | — | 524 | 75 | ||||||||||
2019 | — | — | 116 | ||||||||||
2020 | — | — | 1,387 | ||||||||||
2021 | — | — | 1,259 | ||||||||||
2022 | — | 1,416 | 414 | ||||||||||
2023 | — | 11,202 | 5,479 | ||||||||||
2024 | — | 330 | 4,972 | ||||||||||
2025 | — | 30,515 | 3,918 | ||||||||||
2026 | — | 405 | — | ||||||||||
2030 | — | 228 | — | ||||||||||
2031 | 117,303 | 219 | — | ||||||||||
2032 | — | 75 | — | ||||||||||
2033 | 4,538 | — | — | ||||||||||
$ | 121,841 | $ | 45,196 | $ | 17,938 | ||||||||
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions | The following table summarizes activities related to our unrecognized tax benefits for uncertain tax positions from January 1 to December 31 for each of 2012, 2013 and 2014: | ||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Opening Balance at January 1 | $ | 23,712 | $ | 21,024 | $ | 21,832 | |||||||
Increase related to prior year tax positions, including recorded in acquisition accounting | 1,864 | 1,685 | 2,472 | ||||||||||
Decrease related to prior year tax positions | (3,144 | ) | (1,952 | ) | (1,002 | ) | |||||||
Decrease related to prior year due to lapse of applicable statute of limitation | — | — | (753 | ) | |||||||||
Increase related to current year tax positions, including recorded in acquisition accounting | 1,514 | 2,905 | 442 | ||||||||||
Decrease related to settlements with tax authorities | (2,492 | ) | — | — | |||||||||
Effect of exchange rate changes | (430 | ) | (1,830 | ) | (273 | ) | |||||||
Closing Balance at December 31 | $ | 21,024 | $ | 21,832 | $ | 22,718 | |||||||
Segment_reporting_Tables
Segment reporting (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Net Revenues for Service Type | Net revenues by service type are as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Business Process Outsourcing | $ | 1,456,171 | $ | 1,608,224 | $ | 1,736,716 | |||||||
Information Technology Services | 445,800 | 523,773 | 542,722 | ||||||||||
Total net revenues | $ | 1,901,971 | $ | 2,131,997 | $ | 2,279,438 | |||||||
Revenues from Clients Based on Industry Serviced | Revenues from clients based on the industry serviced are as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Banking, Financial Services and Insurance | $ | 796,655 | $ | 888,916 | $ | 940,345 | |||||||
Manufacturing including Pharmaceuticals and Medical Equipment Manufacturing | 640,553 | 711,184 | 796,872 | ||||||||||
Technology, Healthcare and Other Services | 464,763 | 531,897 | 542,221 | ||||||||||
Total net revenues | $ | 1,901,971 | $ | 2,131,997 | $ | 2,279,438 | |||||||
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers | Net revenues from geographic areas based on the location of service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
India | $ | 1,197,400 | $ | 1,328,201 | $ | 1,505,960 | |||||||
Asia, other than India | 208,149 | 224,657 | 232,349 | ||||||||||
North and Latin America | 306,260 | 359,774 | 302,515 | ||||||||||
Europe | 190,162 | 219,365 | 238,614 | ||||||||||
Total net revenues | $ | 1,901,971 | $ | 2,131,997 | $ | 2,279,438 | |||||||
Property, Plant and Equipment, Net by Geographic Areas | Property, plant and equipment, net by geographic areas are as follows: | ||||||||||||
As of December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
India | $ | 112,971 | $ | 116,734 | |||||||||
Asia, other than India | 15,199 | 13,461 | |||||||||||
North and Latin America | 35,391 | 36,617 | |||||||||||
Europe | 9,643 | 9,124 | |||||||||||
Total | $ | 173,204 | $ | 175,936 | |||||||||
Quarterly_financial_data_unaud1
Quarterly financial data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Data | Three months ended | Year ended | |||||||||||||||||||
December 31, | |||||||||||||||||||||
March 31, 2014 | June 30, 2014 | September 30, | December 31, | 2014 | |||||||||||||||||
2014 | 2014 | ||||||||||||||||||||
Total net revenues | $ | 528,190 | $ | 561,611 | $ | 588,107 | $ | 601,530 | $ | 2,279,438 | |||||||||||
Gross profit | $ | 203,901 | $ | 221,486 | $ | 233,632 | $ | 242,331 | $ | 901,350 | |||||||||||
Income from operations | $ | 77,247 | $ | 73,051 | $ | 72,867 | $ | 70,866 | $ | 294,031 | |||||||||||
Income before loss(gain) on Equity method investment activity, net and income tax expense | $ | 67,121 | $ | 62,717 | $ | 61,757 | $ | 62,790 | $ | 254,385 | |||||||||||
Net Income | $ | 50,853 | $ | 48,900 | $ | 46,666 | $ | 45,752 | $ | 192,171 | |||||||||||
Net income attributable to noncontrolling interest | $ | 240 | $ | (84 | ) | $ | 13 | $ | — | $ | 169 | ||||||||||
Net income attributable to Genpact Limited common shareholders | $ | 50,613 | $ | 48,984 | $ | 46,653 | $ | 45,752 | $ | 192,002 | |||||||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||||||||||
Basic | $ | 0.22 | $ | 0.23 | $ | 0.22 | $ | 0.2 | $ | 0.87 | |||||||||||
Diluted | $ | 0.21 | $ | 0.22 | $ | 0.21 | $ | 0.21 | $ | 0.85 | |||||||||||
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||||||||||
Basic | 232,093,917 | 217,541,960 | 216,472,908 | 217,279,606 | 220,847,098 | ||||||||||||||||
Diluted | 237,275,651 | 221,509,867 | 220,535,530 | 221,353,612 | 225,168,665 | ||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, | December 31, | 2013 | |||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
Total net revenues | $ | 503,848 | $ | 534,804 | $ | 534,886 | $ | 558,459 | $ | 2,131,997 | |||||||||||
Gross profit | $ | 192,122 | $ | 202,090 | $ | 205,597 | $ | 212,617 | $ | 812,426 | |||||||||||
Income from operations | $ | 73,949 | $ | 77,988 | $ | 85,957 | $ | 71,633 | $ | 309,527 | |||||||||||
Income before loss(gain) on Equity method investment activity, net and income tax expense | $ | 65,456 | $ | 84,633 | $ | 93,320 | $ | 62,573 | $ | 305,982 | |||||||||||
Net Income | $ | 48,252 | $ | 65,462 | $ | 71,431 | $ | 49,906 | $ | 235,051 | |||||||||||
Net income attributable to noncontrolling interest | $ | 1,515 | $ | 1,586 | $ | 1,169 | $ | 1,064 | $ | 5,334 | |||||||||||
Net income attributable to Genpact Limited common shareholders | $ | 46,737 | $ | 63,876 | $ | 70,262 | $ | 48,842 | $ | 229,717 | |||||||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.28 | $ | 0.31 | $ | 0.2 | $ | 1 | |||||||||||
Diluted | $ | 0.2 | $ | 0.27 | $ | 0.3 | $ | 0.21 | $ | 0.97 | |||||||||||
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||||||||||
Basic | 227,227,226 | 229,237,503 | 230,057,508 | 230,871,408 | 229,348,411 | ||||||||||||||||
Diluted | 233,620,751 | 235,329,303 | 236,336,924 | 237,730,091 | 235,754,267 |
Organization_Additional_Inform
Organization - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Aug. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | Aug. 31, 2007 | Aug. 01, 2012 | Mar. 24, 2010 | Dec. 14, 2012 |
Organization [Line Items] | |||||||
Number of years of service | 16 years | ||||||
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 | ||||||
Total expenses incurred for 2012 recapitalization | 23,464 | ||||||
Reimbursement of expenses relating to 2012 recapitalization | 17,000 | ||||||
Selling, General and Administrative Expenses | |||||||
Organization [Line Items] | |||||||
Total expenses incurred for 2012 recapitalization | 6,237 | ||||||
Other income (expense) | |||||||
Organization [Line Items] | |||||||
Total expenses incurred for 2012 recapitalization | 17,227 | ||||||
Reimbursement of expenses relating to 2012 recapitalization | $17,000 | ||||||
Existing Shareholders | |||||||
Organization [Line Items] | |||||||
Number of common shares sold | 17,647,059 | ||||||
General Electric Company | |||||||
Organization [Line Items] | |||||||
Percent of ownership held | 9.10% | ||||||
General Atlantic | |||||||
Organization [Line Items] | |||||||
Percent of ownership held | 2.40% | ||||||
Oak Hill Capital Partners | |||||||
Organization [Line Items] | |||||||
Percent of ownership held | 2.40% | ||||||
Maximum | General Electric Company | |||||||
Organization [Line Items] | |||||||
Percent of ownership held | 5.00% | ||||||
Fortune Global 500 | Minimum | |||||||
Organization [Line Items] | |||||||
Number of clients | 125 |
Recovered_Sheet1
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Genpact Netherlands BV [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Percentage of equity interest acquired | 100.00% | ||
Minimum | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Short term investment, maturity period | 90 days | ||
Maximum | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Short term investment, maturity period | 1 year | ||
General Electric Company | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Percentage of accounts receivables | 25.00% | 28.00% | |
Percentage of revenues | 20.00% | 23.00% | 26.00% |
Estimated_Economic_Useful_Live
Estimated Economic Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 40 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer Equipment and Servers | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Plant, Machinery and Equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer Software | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Property, plant and equipment, estimated useful lives description | Lesser of lease period or 10 years |
Vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Estimated_Useful_Lives_of_Inta
Estimated Useful Lives of Intangible Assets Acquired (Detail) | 12 Months Ended |
Dec. 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 |
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 |
Purchase_Consideration_for_Acq
Purchase Consideration for Acquisition, Japan Finance and Accounting Service Delivery (Detail) (Japan Finance and Accounting Service Delivery, USD $) | Nov. 04, 2014 |
In Thousands, unless otherwise specified | |
Japan Finance and Accounting Service Delivery | |
Business Acquisition [Line Items] | |
Cash consideration after preliminary adjustment for pension | $10,599 |
Fair value of contingent earn-out consideration (ranging from $0 to $15,750) | 11,198 |
Total preliminary estimated purchase consideration | $21,797 |
Purchase_Consideration_for_Acq1
Purchase Consideration for Acquisition, Japan Finance and Accounting Service Delivery (Parenthetical) (Detail) (Japan Finance and Accounting Service Delivery, USD $) | Nov. 04, 2014 |
In Thousands, unless otherwise specified | |
Japan Finance and Accounting Service Delivery | |
Business Acquisition [Line Items] | |
Contingent earn-out component-Low end | $0 |
Contingent earn-out component-High end | $15,750 |
Business_Acquisitions_and_Dive2
Business Acquisitions and Divestitures - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 22, 2013 | Sep. 13, 2013 | Dec. 31, 2013 | 29-May-14 | Mar. 28, 2013 | Feb. 06, 2013 | Aug. 30, 2013 | Nov. 04, 2014 |
Business Acquisition [Line Items] | |||||||||||
Payment for business acquisitions, net of cash acquired | $130,809 | $49,235 | $55,901 | ||||||||
Increase (decrease) in goodwill | -362 | ||||||||||
Goodwill deductible for tax purposes | 37,628 | 38,512 | 38,512 | ||||||||
Proceeds from divestiture of business, net of cash divested (refer note 3B(a)) | 1,982 | ||||||||||
Hello Communications (Shanghai) Co., Ltd. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration | 998 | ||||||||||
Loss on sale | -447 | ||||||||||
Balance of cash & cash equivalents | 2,047 | ||||||||||
Proceeds from divestiture of business, net of cash divested (refer note 3B(a)) | -1,049 | ||||||||||
Clearbizz B.V. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration | 1 | ||||||||||
Loss on sale | -1,184 | ||||||||||
Gantthead.com, Inc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration | 3,171 | ||||||||||
Loss on sale | -2,303 | ||||||||||
Pharmalink Consulting Inc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | 2,200 | ||||||||||
Payment for business acquisitions, net of cash acquired | 123,701 | ||||||||||
Percent ownership interest acquired | 100.00% | ||||||||||
Non-current liability | 585 | ||||||||||
Acquired intangible assets, weighted average amortization period | 6 years | ||||||||||
NGEN Media Services Private Limited | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percent ownership interest acquired | 100.00% | ||||||||||
Enterprise value | 158 | ||||||||||
Business acquisition, date | 28-Mar-13 | ||||||||||
Percent ownership held, before acquisition | 50.00% | 50.00% | |||||||||
Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | 1,364 | ||||||||||
Payment for business acquisitions, net of cash acquired | 47,212 | ||||||||||
Acquired intangible assets, weighted average amortization period | 6 years | ||||||||||
Increase (decrease) in goodwill | -1,089 | ||||||||||
Seller expenses | 1,379 | 1,379 | |||||||||
Goodwill deductible for tax purposes | 32,656 | ||||||||||
Third Pillar System Inc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired intangible assets, weighted average amortization period | 8 years | ||||||||||
Enterprise value | 2,500 | ||||||||||
Held back amount | 225 | ||||||||||
Business acquisition, date | 30-Aug-13 | ||||||||||
Jawood Business Process Solutions, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percent ownership interest acquired | 100.00% | ||||||||||
Enterprise value | 51,000 | ||||||||||
Business acquisition, date | 6-Feb-13 | ||||||||||
Felix Software Solutions Private Limited | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percent ownership interest acquired | 100.00% | ||||||||||
Enterprise value | 2,295 | ||||||||||
Japan Finance and Accounting Service Delivery | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash and cash equivalents | 3,491 | ||||||||||
Payment for business acquisitions, net of cash acquired | $7,108 |
Purchase_Price_Allocated_Based
Purchase Price Allocated Based on Fair Value of Assets Acquired and Liabilities Assumed, Japan Finance and Accounting Service Delivery (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 04, 2014 |
In Thousands, unless otherwise specified | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Goodwill | $1,057,214 | $953,849 | $956,064 | |
Japan Finance and Accounting Service Delivery | ||||
Business Acquisition [Line Items] | ||||
Preliminary estimated purchase price | 21,797 | |||
Acquisition related costs included in selling, general and administrative expenses as incurred | 796 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Net assets acquired | -323 | |||
Customer related intangible assets | 7,522 | |||
Deferred tax asset/(liability), net | -2,496 | |||
Total identifiable net assets acquired | 4,703 | |||
Goodwill | 17,094 | |||
Total | $21,797 |
Purchase_Consideration_for_Acq2
Purchase Consideration for Acquisition (Detail) (Pharmalink Consulting Inc, USD $) | 29-May-14 |
In Thousands, unless otherwise specified | |
Pharmalink Consulting Inc | |
Business Acquisition [Line Items] | |
Cash consideration after preliminary adjustment for net debt and working capital | $125,901 |
Fair value of contingent earn-out consideration | 12,730 |
Total | $138,631 |
Purchase_Consideration_for_Acq3
Purchase Consideration for Acquisition (Parenthetical) (Detail) (Pharmalink Consulting Inc, USD $) | 29-May-14 |
In Thousands, unless otherwise specified | |
Pharmalink Consulting Inc | |
Business Acquisition [Line Items] | |
Contingent earn-out component-Low end | $0 |
Contingent earn-out component-High end | $27,405 |
Purchase_Price_Allocated_Based1
Purchase Price Allocated Based on Fair Value of Assets Acquired and Liabilities Assumed, Pharmalink (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 29-May-14 |
In Thousands, unless otherwise specified | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Goodwill | $1,057,214 | $953,849 | $956,064 | |
Pharmalink Consulting Inc | ||||
Business Acquisition [Line Items] | ||||
Preliminary estimated purchase price | 138,631 | |||
Acquisition related costs included in selling, general and administrative expenses as incurred | 1,977 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Net assets acquired | 7,174 | |||
Intangible assets | 29,923 | |||
Deferred tax asset/(liability), net | -8,419 | |||
Total identifiable net assets acquired | 28,678 | |||
Goodwill | 109,953 | |||
Total | $138,631 |
Purchase_Price_Allocation_Base
Purchase Price Allocation Based on Fair Value of Assets Acquired and Liabilities Assumed, Third Pillar Systems Inc. (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 30, 2013 |
In Thousands, unless otherwise specified | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Goodwill | $1,057,214 | $953,849 | $956,064 | |
Third Pillar System Inc | ||||
Business Acquisition [Line Items] | ||||
Cash Consideration | 2,500 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Net assets acquired | 199 | |||
Intangible assets | 298 | |||
Total identifiable net assets acquired | 497 | |||
Goodwill | 2,003 | |||
Total | $2,500 |
Purchase_Consideration_Jawood_
Purchase Consideration, Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited (Detail) (Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited, USD $) | Dec. 31, 2014 | Feb. 06, 2013 |
In Thousands, unless otherwise specified | ||
Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | ||
Business Acquisition [Line Items] | ||
Purchase consideration after adjustment for closing date net debt working capital, indebtedness and cash | $48,576 | |
Seller expenses | -1,379 | -1,379 |
Total | $47,197 |
Purchase_Price_Allocated_Based2
Purchase Price Allocated Based on Fair Value of Assets Acquired and Liabilities Assumed, Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 06, 2013 |
In Thousands, unless otherwise specified | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Goodwill | $1,057,214 | $953,849 | $956,064 | |
Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | ||||
Business Acquisition [Line Items] | ||||
Purchase price | 47,197 | |||
Acquisition related costs included in selling, general and administrative expenses as incurred | 310 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Net assets acquired | 1,171 | |||
Intangible assets | 11,200 | |||
Total identifiable net assets acquired | 12,371 | |||
Goodwill | 34,826 | |||
Total | $47,197 |
Fair_Value_and_Estimated_Usefu
Fair Value and Estimated Useful Lives of Intangibles, Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited (Detail) (USD $) | 12 Months Ended | 0 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Feb. 06, 2013 |
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 | |
Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | Customer-Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets value | $10,200 | |
Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | Customer-Related Intangible Assets | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year | |
Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | Customer-Related Intangible Assets | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 7 years | |
Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | Marketing-Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets value | $1,000 | |
Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | Marketing-Related Intangible Assets | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year | |
Jawood Business Process Solutions, LLC and Felix Software Solutions Private Limited | Marketing-Related Intangible Assets | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 5 years |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ||||
Deposits with banks | $130,610 | $123,545 | ||
Other cash and bank balances | 331,178 | 447,731 | ||
Total | $461,788 | $571,276 | $459,228 | $408,020 |
Reserve_for_Doubtful_Receivabl
Reserve for Doubtful Receivables (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Provisions for Doubtful Accounts [Line Items] | |||
Opening Balance | $16,560 | $9,073 | $8,704 |
Additions due to acquisitions | 178 | 184 | |
Additions charged to expense | 3,107 | 11,420 | 3,878 |
Deductions | -4,653 | -3,933 | -3,693 |
Closing Balance | $15,192 | $16,560 | $9,073 |
Recovered_Sheet2
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross accounts receivable | $540,946 | $521,677 | ||
Reserve for doubtful receivables | 15,192 | 16,560 | 9,073 | 8,704 |
Net accounts receivable | 525,754 | 505,117 | ||
Accounts receivable due after one year | 11,635 | 15,844 | ||
Accounts receivable from related parties | 5,840 | 403 | ||
Reserve for doubtful receivables from related parties | 0 | 0 | ||
Net accounts receivable from related parties | $5,840 | $403 |
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 $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative instrument, asset | $33,967 | [1] | $7,963 | [1] |
Total, assets | 33,967 | 7,963 | ||
Derivative instrument, liability | 101,516 | [2] | 213,941 | [2] |
Total, liabilities | 101,516 | 213,941 | ||
Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative instrument, asset | 33,967 | [1] | 7,963 | [1] |
Total, assets | 33,967 | 7,963 | ||
Derivative instrument, liability | 101,516 | [2] | 213,941 | [2] |
Total, liabilities | $101,516 | $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_Sheet3
Derivative Financial Instruments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Derivative [Line Items] | |
Forward foreign exchange contracts, minimum maturity period | 0 months |
Forward foreign exchange contracts, maximum maturity period | 60 months |
Aggregate_Notional_Principal_A
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Derivative financial instrument, balance sheet exposure asset (liability) | ($67,549) | [1] | ($205,978) | [1] |
United States Dollars (sell) Indian Rupees (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 1,282,800 | [2] | 1,143,000 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -86,913 | [1] | -203,822 | [1] |
United States Dollars (sell) Mexican Peso (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 5,640 | [2] | 9,000 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -514 | [1] | -268 | [1] |
United States Dollars (sell) Philippines Peso (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 72,900 | [2] | 52,200 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -738 | [1] | -2,357 | [1] |
Euro (sell) United States Dollars (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 98,903 | [2] | 43,779 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | 5,458 | [1] | -2,434 | [1] |
Euro (sell) Hungarian Forints (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 4,121 | [2] | ||
Derivative financial instrument, balance sheet exposure asset (liability) | 131 | [1] | ||
Euro (Sell) Romanian Leu (Buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 81,072 | [2] | 61,977 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | 562 | [1] | 1,751 | [1] |
Japanese Yen (sell) Chinese Renminbi (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 28,586 | [2] | 30,731 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | 2,766 | [1] | 1,970 | [1] |
Pound Sterling (sell) United States Dollars (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 133,435 | [2] | 94,338 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | 4,278 | [1] | -4,312 | [1] |
Australian Dollars (sell) United States Dollars (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 104,362 | [2] | 85,156 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | $7,552 | [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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | $202 | |
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | 965 | 26 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | 16,636 | 6,098 |
Cash Flow Hedges | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | 17,129 | 1,865 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | 64,650 | 83,667 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | $35,901 | $130,248 |
Cash_Flow_Hedges_Gains_Losses_
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Opening balance, before-tax amount | ($205,952) | ($163,756) | ($203,006) |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, before-tax amount | -49,161 | -66,812 | -34,927 |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | 90,005 | -109,008 | 4,323 |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | 139,166 | -42,196 | 39,250 |
Closing balance, before-tax amount | -66,786 | -205,952 | -163,756 |
Opening balance, tax (expense) or benefit | 72,612 | 59,070 | 71,125 |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, tax (expense) or benefit | 17,498 | 25,239 | 12,651 |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | -31,468 | 38,781 | 596 |
Gain (loss) on cash flow hedging derivatives, net | -48,966 | 13,542 | -12,055 |
Closing balance, tax (expense) or benefit | 23,646 | 72,612 | 59,070 |
Opening balance, net of tax amount | -133,340 | -104,686 | -131,881 |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, net of tax amount | -31,663 | -41,573 | -22,276 |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | 58,537 | -70,227 | 4,919 |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | 90,200 | -28,654 | 27,195 |
Closing balance, net of tax amount | ($43,140) | ($133,340) | ($104,686) |
Gains_or_Losses_Recorded_as_Co
Gains or Losses Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $90,005 | ($109,008) | $4,323 | |||
Amount of Gain (Loss) recognized in income on Derivative (Ineffective Portion and Amount excluded from Effectiveness Testing) | 0 | 0 | 0 | |||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -49,161 | -66,812 | -34,927 | |||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivative | -287 | 18,353 | -3,884 | |||
Revenue | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -4,301 | 7,548 | -4,432 | |||
Cost of Revenue | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -35,539 | -59,929 | -24,183 | |||
Selling, General and Administrative Expenses | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -9,321 | -14,431 | -6,312 | |||
Foreign Exchange Contract | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | 90,005 | -109,008 | 4,323 | |||
Amount of Gain (Loss) recognized in income on Derivative (Ineffective Portion and Amount excluded from Effectiveness Testing) | 0 | 0 | 0 | |||
Foreign Exchange Contract | 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 | ($287) | [1] | $18,353 | [1] | ($3,884) | [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. |
Recovered_Sheet4
Prepaid Expenses and Other Current Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses And Other Current Assets [Line Items] | ||
Advance taxes | $61,251 | $65,053 |
Deferred transition costs | 40,185 | 37,050 |
Derivative instruments | 16,838 | 6,098 |
Employee advances | 5,816 | 5,397 |
Advances to suppliers | 3,358 | 1,994 |
Prepaid expenses | 12,949 | 12,569 |
Customer acquisition cost | 5,557 | 1,904 |
Deposits | 1,754 | 3,896 |
Others | 7,772 | 5,152 |
Prepaid expenses and other current assets, net | $155,480 | $139,113 |
Recovered_Sheet5
Property, Plant and Equipment, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $531,960 | $502,893 |
Less: Accumulated depreciation and amortization | -356,024 | -329,689 |
Property, plant and equipment, net | 175,936 | 173,204 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,324 | 10,566 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46,272 | 48,743 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 33,908 | 30,275 |
Computer Equipment and Servers | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 176,572 | 163,106 |
Plant, Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 68,139 | 61,514 |
Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 93,054 | 87,443 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 89,770 | 86,937 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,607 | 6,506 |
Capital Work in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $7,314 | $7,803 |
Recovered_Sheet6
Property, Plant and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $51,064 | $52,815 | $56,089 |
Assets Held Under Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 1,786 | 1,726 | 1,830 |
Property, plant and equipment held under capital lease arrangements, gross | 3,435 | 3,524 | |
Depreciation Expense on Property, Plant And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 44,029 | 46,408 | 46,046 |
Computer Software Amortization | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 9,105 | 9,949 | 11,613 |
Effect of Reclassification of Foreign Exchange (Gains) Losses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $2,070 | $3,542 | $1,570 |
Changes_in_Goodwill_Detail
Changes in Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Opening balance | $953,849 | $956,064 |
Goodwill relating to acquisitions consummated during the period | 127,047 | 37,918 |
Goodwill relating to divestitures consummated during the period | -3,450 | |
Impact of measurement period adjustments | -362 | |
Effect of exchange rate fluctuations | -23,682 | -36,321 |
Closing balance | $1,057,214 | $953,849 |
Goodwill_Allocated_to_Reportin
Goodwill Allocated to Reporting Units (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Goodwill [Line Items] | |||
Goodwill | $1,057,214 | $953,849 | $956,064 |
India | |||
Goodwill [Line Items] | |||
Goodwill | 477,969 | 384,533 | |
China | |||
Goodwill [Line Items] | |||
Goodwill | 60,585 | 45,699 | |
Europe | |||
Goodwill [Line Items] | |||
Goodwill | 39,189 | 44,146 | |
Americas | |||
Goodwill [Line Items] | |||
Goodwill | 46,583 | 46,583 | |
Headstrong | |||
Goodwill [Line Items] | |||
Goodwill | $432,888 | $432,888 |
Recovered_Sheet7
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill Impairment | $0 | ||
Goodwill deductible for tax purposes | 37,628,000 | 38,512,000 | |
Amortization of acquired intangible assets | 28,543,000 | 23,645,000 | 23,233,000 |
Amortization of intangible assets recognized for minimum volume commitment from a client at the time of 2004 Reorganization | $0 | $0 | $72,000 |
Intangible_Assets_Acquired_Eit
Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $372,208 | $337,147 |
Accumulated amortization | 257,664 | 238,031 |
Net | 114,544 | 99,116 |
Customer-Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 310,069 | 288,983 |
Accumulated amortization | 228,095 | 213,878 |
Net | 81,974 | 75,105 |
Marketing-Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 43,137 | 37,919 |
Accumulated amortization | 23,801 | 20,545 |
Net | 19,336 | 17,374 |
Other Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 19,002 | 10,245 |
Accumulated amortization | 5,768 | 3,608 |
Net | $13,234 | $6,637 |
Estimated_Amortization_Schedul
Estimated Amortization Schedule of Intangible Assets for Future Periods (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Estimated Future Amortization Expense [Line Items] | ||
2015 | $27,577 | |
2016 | 22,987 | |
2017 | 19,902 | |
2018 | 16,316 | |
2019 and beyond | 27,762 | |
Net | $114,544 | $99,116 |
Other_Assets_Detail
Other Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Assets [Line Items] | ||
Customer acquisition cost | $15,035 | $6,088 |
Advance taxes | 27,381 | 7,839 |
Deferred transition costs | 37,230 | 27,818 |
Deposits | 24,989 | 23,287 |
Derivative instruments | 17,129 | 1,865 |
Prepaid expenses | 2,565 | 4,895 |
Accounts Receivable due after one year | 11,635 | 15,844 |
Others | 10,742 | 9,729 |
Other assets | $146,706 | $97,365 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments under Operating Lease Arrangements (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Operating Leases [Line Items] | |
2015 | $48,191 |
2016 | 45,628 |
2017 | 37,894 |
2018 | 28,956 |
2019 | 24,888 |
2020 and beyond | 89,737 |
Total minimum lease payments | $275,294 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases Disclosure [Line Items] | |||
Rent expenses | $57,178 | $55,450 | $49,912 |
Rental expense including effect of reclassification of foreign exchange (gains) losses | $1,823 | $2,851 | $1,112 |
Recovered_Sheet8
Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Accrued expenses | $114,770 | $98,988 |
Accrued employee cost | 143,829 | 126,814 |
Deferred transition revenue | 49,792 | 46,895 |
Statutory liabilities | 24,713 | 24,466 |
Retirement benefits | 16,807 | 14,853 |
Derivative instruments | 65,615 | 83,693 |
Advance from customers | 19,857 | 18,334 |
Earn-out and deferred consideration | 3,232 | 3,492 |
Other liabilities | 12,399 | 4,457 |
Accrued expenses and other current liabilities, net | $451,014 | $421,992 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 30, 2012 |
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $925,000 | ||||
Termination of credit facility | 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 | ||||
Acceleration amortization of debt issuance cost | 3,157 | 5,534 | |||
Term loan amounts outstanding | 653,602 | 657,864 | |||
Debt amortization expense | 11,274 | 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 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | 250,000 | ||||
Margin over LIBOR | 2.50% | ||||
Acceleration amortization of debt issuance cost | 54 | ||||
Term Loan Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | 675,000 | 675,000 | |||
Margin over LIBOR | 2.75% | ||||
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 |
Maturity_Profile_of_Term_Loan_
Maturity Profile of Term Loan Net of Debt Amortization Expense (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-Term Debt | ||
2015 | $4,288 | |
2016 | 4,306 | |
2017 | 4,338 | |
2018 | 4,363 | |
2019 | 636,307 | |
Term loan amounts outstanding | $653,602 | $657,864 |
ShortTerm_Borrowings_Additiona
Short-Term Borrowings - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Aug. 30, 2012 |
Line of Credit Facility [Line Items] | ||||
Fund-based and non-fund-based credit facilities limits available | $14,282 | $13,906 | ||
Utilization of credit facility for non fund-based usage | 8,138 | 6,689 | ||
Credit facility, maximum borrowing capacity | 925,000 | |||
Credit facility, amount utilized | 137,224 | 4,397 | ||
Margin over LIBOR | 2.75% | 2.75% | ||
Percentage of commitment fee | 0.50% | |||
Revolving credit facility, expiration month and year | 2017-08 | |||
Line of credit covenant condition | Indebtedness under the facility 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. | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, maximum borrowing capacity | 250,000 | |||
Margin over LIBOR | 2.50% | |||
Fund-Based Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, amount utilized | 135,000 | 0 | ||
Margin over LIBOR | 2.50% | 2.50% | ||
Non-Fund-Based Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, amount utilized | $2,224 | $4,397 |
Other_Liabilities_Detail
Other Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Line Items] | ||
Accrued employee cost | $5,121 | $5,103 |
Deferred transition revenue | 52,419 | 47,405 |
Retirement benefits | 29,652 | 24,330 |
Derivative instruments | 35,901 | 130,248 |
Amount received from GE under indemnification arrangement, pending adjustment | 5,129 | 7,839 |
Advance from customers | 6,000 | 8,000 |
Earn-out and deferred consideration | 30,758 | 9,857 |
Others | 11,662 | 10,102 |
Other Liabilities | $176,642 | $242,884 |
Funded_Status_of_Defined_Benef
Funded Status of Defined Benefit Plans and Amount Recognized (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at the beginning of the year | $28,596 | $29,821 | |
Service cost | 4,721 | 4,511 | 4,047 |
Actuarial loss (gain) | 1,843 | -1,310 | |
Interest cost | 2,410 | 2,104 | 1,807 |
Liabilities assumed on acquisition | 3,967 | ||
Benefits paid | -3,736 | -2,996 | |
Effect of exchange rate changes | -1,356 | -3,534 | |
Projected benefit obligation at the end of the year | 36,445 | 28,596 | 29,821 |
Fair value of plan assets at the beginning of the year | 22,798 | 14,957 | |
Employer contributions | 7,139 | 12,325 | |
Actual gain on plan assets | 1,907 | 1,037 | |
Assets assumed on acquisition | 2,825 | ||
Acturial gain/(loss) | -6 | -6 | |
Benefits paid | -3,736 | -2,996 | |
Effect of exchange rate changes | -1,206 | -2,519 | |
Fair value of plan assets at the end of the year | $29,721 | $22,798 | $14,957 |
Amounts_Included_in_Other_Comp
Amounts Included in Other Comprehensive Income (Loss) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | ($7,178) | ($5,659) |
Deferred tax assets | 2,178 | 1,765 |
Other comprehensive income, net | ($5,000) | ($3,894) |
Changes_in_Other_Comprehensive
Changes in Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |
Net Actuarial loss | ($1,674) |
Amortization of net actuarial loss | 411 |
Deferred income taxes | 413 |
Effect of exchange rate changes | -256 |
Other comprehensive income (loss), net | ($1,106) |
Net_Defined_Benefit_Plan_Costs
Net Defined Benefit Plan Costs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Service costs | $4,721 | $4,511 | $4,047 |
Interest costs | 2,410 | 2,104 | 1,807 |
Amortization of actuarial loss | 419 | 421 | 854 |
Expected return on plan assets | -1,719 | -968 | -961 |
Net Defined Benefit Plan costs | $5,831 | $6,068 | $5,747 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |
Amount in other comprehensive income (loss) expected to be recognized as component of net periodic benefit cost over next fiscal year | $5,582 |
Benefit Obligations Of Philippines Plan | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Expectation of the average long term rate of return expected, years | 15 years |
Benefit Obligations Of Philippines Plan | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Expectation of the average long term rate of return expected, years | 20 years |
Weighted_Average_Assumptions_u
Weighted Average Assumptions used to Determine Benefit Obligations, Gratuity Plan (Detail) (Benefit Obligations Of Gratuity Plan) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 9.55% | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 8.50% | |
Rate of increase in compensation per annum | 5.20% | 5.20% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 8.55% | |
Rate of increase in compensation per annum | 11.00% | 11.00% |
Weighted_Average_Assumptions_u1
Weighted Average Assumptions used to Determine Plan Costs, Gratuity Plan (Detail) (Gratuity Plan Costs) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 8.85% | ||
Expected long term rate of return on plan assets per annum | 8.50% | 8.50% | |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 9.50% | 9.30% | |
Expected long term rate of return on plan assets per annum | 7.30% | ||
Rate of increase in compensation per annum | 5.20% | 5.20% | 5.20% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 9.55% | 9.70% | |
Expected long term rate of return on plan assets per annum | 8.50% | ||
Rate of increase in compensation per annum | 11.00% | 11.00% | 11.00% |
Weighted_Average_Assumptions_u2
Weighted Average Assumptions used to Determine Benefit Obligations, Mexican Plan (Detail) (Benefit Obligations Of The Mexican Plan) | Dec. 31, 2014 | Dec. 31, 2013 |
Benefit Obligations Of The Mexican Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 6.50% | 6.50% |
Rate of increase in compensation per annum | 5.50% | 5.50% |
Weighted_Average_Assumptions_u3
Weighted Average Assumptions used to Determine Plan Costs, Mexico Plan (Detail) (Mexican Plan Costs) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Mexican Plan Costs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 6.50% | 6.50% | 6.50% |
Rate of increase in compensation per annum | 5.50% | 5.50% | 5.50% |
Expected long term rate of return on plan assets per annum | 0.00% | 0.00% | 0.00% |
Weighted_Average_Assumptions_u4
Weighted Average Assumptions used to Determine Benefit Obligations, Japan Plans (Detail) (Benefit Obligations Of Japan Plan) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.50% | |
Rate of increase in compensation per annum | 0.00% | 0.00% |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.24% | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.44% |
Weighted_Average_Assumptions_u5
Weighted Average Assumptions used to Determine Plan Costs, Japan Plans (Detail) (Japan Plan Costs) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.90% | 0.90% | |
Rate of increase in compensation per annum | 0.00% | 0.00% | 0.00% |
Expected long term rate of return on plan assets per annum | 2.69% | 2.69% | 2.69% |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.50% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.44% |
Fair_Value_of_Plan_Assets_Deta
Fair Value of Plan Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | $29,721 | $22,798 | $14,957 | ||
Fair Value, Inputs, Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | 10,669 | 13,092 | |||
Fair Value, Inputs, Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | 19,052 | 9,706 | |||
Fixed Income Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | 21,532 | [1] | 9,490 | [1] | |
Fixed Income Securities | Fair Value, Inputs, Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | 4,053 | [1] | 1,092 | [1] | |
Fixed Income Securities | Fair Value, Inputs, Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | 17,479 | [1] | 8,398 | [1] | |
Cash | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | 6,104 | 10,674 | |||
Cash | Fair Value, Inputs, Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | 6,104 | 10,674 | |||
Other Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | 2,085 | [2] | 2,634 | [2] | |
Other Securities | Fair Value, Inputs, Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | 512 | [2] | 1,326 | [2] | |
Other Securities | Fair Value, Inputs, Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets, fair value | $1,573 | [2] | $1,308 | [2] | |
[1] | Include investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. | ||||
[2] | Include investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. |
Fair_Value_of_Plan_Assets_Pare
Fair Value of Plan Assets (Parenthetical) (Detail) (Fixed Income Securities) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of investment in funds | 100.00% | 100.00% |
Expected_Benefit_Plan_Payments
Expected Benefit Plan Payments Reflecting Expected Future Service (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $4,487 |
2016 | 4,935 |
2017 | 5,465 |
2018 | 5,951 |
2019 | 6,578 |
2020 - 2024 | 33,833 |
Defined benefit plan expected future benefit payments | $61,249 |
Amounts_Contributed_to_Defined
Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | $43,071 | $38,822 | $33,184 |
India | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 15,272 | 14,443 | 14,102 |
China | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 14,518 | 14,681 | 10,888 |
Americas | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 5,565 | 3,268 | 3,012 |
U.K. | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 3,361 | 1,789 | 1,444 |
Other Regions | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | $4,355 | $4,641 | $3,738 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||
Aug. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 24, 2012 | Apr. 11, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividend per share | $2.24 | ||||||
Stock based compensation cost | $27,773,000 | $30,901,000 | $31,999,000 | ||||
Tax benefit recognized in relation to stock based compensation | 6,366,000 | 6,913,000 | 8,032,000 | ||||
Cash tax benefit related to share based compensation | 5,061,000 | 3,368,000 | 2,277,000 | ||||
Excess tax benefit realized on options exercised | 0 | 0 | 0 | ||||
Adjustments to additional paid in capital tax effect from share based compensation | 0 | 0 | 0 | ||||
Options granted, contractual period, years | 10 years | ||||||
Granted, shares arising out of options | 520,000 | 3,483,000 | 0 | ||||
Unrecognized stock-based compensation cost for options | 19,651,000 | ||||||
Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options vesting period, years | 4 years | ||||||
Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options vesting period, years | 5 years | ||||||
2007 Omnibus Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Amended Omnibus Plan, increase in number of common shares authorized for issuance | 6,314,496 | 2,544,327 | 5,593,200 | ||||
Number of common shares authorized for issuance | 23,995,184 | 15,000,000 | |||||
2005 Omnibus Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Amended Omnibus Plan, increase in number of common shares authorized for issuance | 495,915 | ||||||
2005 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common shares authorized for issuance | 12,706,665 | ||||||
Number of options granted | 12,986,802 | ||||||
2005 Plan | Special cash dividend | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Amended Omnibus Plan, increase in number of common shares authorized for issuance | 495,915 | ||||||
Number of options granted | 583,357 | ||||||
2006 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common shares authorized for issuance | 4,942,369 | ||||||
Number of options granted | 5,328,697 | ||||||
2006 Plan | Special cash dividend | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted | 68,005 | ||||||
2007 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common shares authorized for issuance | 16,733,250 | ||||||
Number of options granted | 9,133,255 | ||||||
2007 Plan | Special cash dividend | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted | 486,205 | ||||||
Employee Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average remaining requisite vesting period | 3 years 2 months 12 days | ||||||
Employee Stock Option | 2007 Omnibus Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted | 12,991,104 | ||||||
Employee Stock Option | 2007 Omnibus Plan | Special cash dividend | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted | 489,071 | ||||||
Restricted Share Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average remaining requisite vesting period | 2 years 1 month 6 days | ||||||
Minimum vesting schedules, months | 3 months | ||||||
Maximum vesting schedules, years | 4 years | ||||||
Unrecognized stock-based compensation cost | 4,433,000 | ||||||
Restricted Share Units | 2007 Omnibus Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted | 3,680,405 | ||||||
Restricted Share Units | 2007 Omnibus Plan | Special cash dividend | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted | 272,335 | ||||||
Performance Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average remaining requisite vesting period | 2 years 1 month 6 days | ||||||
Unrecognized stock-based compensation cost | 14,267,000 | ||||||
Performance Units | 2007 Omnibus Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted | 7,837,377 | ||||||
Performance Units | 2007 Omnibus Plan | Special cash dividend | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted | 482,341 | ||||||
Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of fair value per share allowed to eligible employees to purchase through payroll deductions | 90.00% | ||||||
Maximum percentage of employee's base salary allowed to be purchased | 15.00% | ||||||
Maximum dollar amount of common shares allowed to be purchased | 25,000 | ||||||
Common shares reserved for issuance | 4,200,000 | ||||||
Number of common shares issued under ESPP | 151,461 | 109,698 | 86,214 | ||||
Compensation expense for ESPP | $292,000 | $228,000 | $153,000 |
Significant_Assumptions_used_i
Significant Assumptions used in Determination of Fair Value of Options Granted (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions used to Determine Fair Value Options [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected life (in months) | 84 months | 84 months |
Risk free rate of interest for expected life | 1.55% | |
Risk free rate of interest for expected life, minimum | 2.18% | |
Risk free rate of interest for expected life, maximum | 2.29% | |
Volatility | 39.39% | |
Volatility, minimum | 37.27% | |
Volatility, maximum | 38.34% |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Shares arising out of options | ||||||
Outstanding, shares arising out of options, beginning balance | 11,102,163 | 12,413,298 | 13,734,820 | |||
Granted, shares arising out of options | 520,000 | 3,483,000 | 0 | |||
Forfeited, shares arising out of options | -250,673 | -69,863 | -327,590 | |||
Expired, shares arising out of options | -27,228 | -88,295 | -81,053 | |||
Exercised, shares arising out of options | -3,972,535 | [1] | -4,635,977 | -2,539,517 | ||
Adjustment for Special Cash Dividend | 1,626,638 | |||||
Outstanding, shares arising out of options, ending balance | 7,371,727 | 11,102,163 | 12,413,298 | |||
Vested and expected to vest thereafter, shares arising out of options | 7,073,004 | 10,759,137 | 12,271,334 | |||
Vested and Exercisable, shares arising out of options | 3,542,821 | [2] | 7,091,889 | [2] | 10,752,875 | [2] |
Weighted average grant date fair value of grants during the period | $7.54 | $8.33 | ||||
Weighted average exercise price | ||||||
Outstanding weighted average exercise price, beginning balance | $12.40 | $9.29 | $10.58 | |||
Granted, weighted average exercise price | $17.54 | $19.35 | ||||
Forfeited, weighted average exercise price | $19.20 | $10.65 | $11.28 | |||
Expired, weighted average exercise price | $12.32 | $13.26 | $15.46 | |||
Exercised, weighted average exercise price | $7 | [1] | $9.31 | $9.83 | ||
Outstanding weighted average exercise price, ending balance | $15.44 | $12.40 | $9.29 | |||
Vested and expected to vest thereafter, weighted average exercise price | $15.19 | [2] | $12.11 | [2] | $9.28 | [2] |
Vested and Exercisable, weighted average exercise price | $11.37 | $8.82 | $8.97 | |||
Weighted average remaining contractual life (years) | ||||||
Outstanding weighted average remaining contractual life (years) | 5 years 10 months 24 days | 5 years 2 months 12 days | 4 years 2 months 12 days | |||
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | 5 years 10 months 24 days | [2] | 5 years 2 months 12 days | [2] | 4 years 2 months 12 days | [2] |
Vested and Exercisable, weighted average remaining contractual life (years) | 3 years 1 month 6 days | 3 years | 3 years 9 months 18 days | |||
Aggregate intrinsic value | ||||||
Exercised, aggregate intrinsic value | $0 | $0 | $0 | |||
Outstanding aggregate intrinsic value, ending balance | 27,886 | 70,512 | 77,017 | |||
Vested and expected to vest thereafter, aggregate intrinsic value | 27,755 | [2] | 70,465 | [2] | 76,339 | [2] |
Vested and Exercisable, aggregate intrinsic value | $26,781 | $67,719 | $70,217 | |||
Vested stock options against which shares to be issued | 2,138,601 | |||||
Stock options settled on vesting by issuing shares (net of minimum tax withholding) | 1,485,826 | |||||
[1] | Of this, 2,138,601 options have been net settled upon exercise by issuing 1,485,826 shares (net of minimum statutory withholding taxes). | |||||
[2] | Options expected to vest reflect an estimated forfeiture rate. |
Summary_of_Restricted_Share_Un
Summary of Restricted Share Units Granted (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Number of Restricted Share Units | ||||||
Outstanding number of shares (Units), beginning balance | 3,913,733 | 3,041,511 | 2,271,724 | |||
Granted, number of shares (Units) | 1,337,750 | 2,025,090 | 1,200,000 | |||
Vested, number of shares (Units) | -1,469,200 | [1] | -1,024,434 | [2] | -772,745 | [3] |
Forfeited, number of shares (Units) | -2,629,463 | [4] | -426,345 | -139,809 | ||
Outstanding number of shares (Units), ending balance | 1,292,750 | 3,913,733 | 3,041,511 | |||
Expected to vest, number of shares (Units) | 1,153,277 | [5] | 1,372,781 | [5] | 2,413,073 | [5] |
Restricted Share Units | ||||||
Number of Restricted Share Units | ||||||
Outstanding number of shares (Units), beginning balance | 871,772 | 1,688,402 | 2,262,153 | |||
Granted, number of shares (Units) | 227,248 | 91,623 | 185,551 | |||
Vested, number of shares (Units) | -511,513 | [6] | -683,522 | [7] | -779,986 | [8] |
Forfeited, number of shares (Units) | -99,089 | -224,731 | -251,651 | |||
Adjustment for Special Cash Dividend | 272,335 | |||||
Outstanding number of shares (Units), ending balance | 488,418 | 871,772 | 1,688,402 | |||
Expected to vest, number of shares (Units) | 451,721 | [9] | 802,481 | [9] | 1,357,447 | [9] |
Weighted Average Grant Date Fair Value | ||||||
Outstanding weighted average grant date fair value, beginning balance | 13.96 | 13.74 | 15.27 | |||
Granted, weighted average grant date fair value | 16.58 | 19.52 | 15.95 | |||
Vested, weighted average grant date fair value | 13.83 | [6] | 14.28 | [7] | 13.68 | [8] |
Forfeited, weighted average grant date fair value | 13.77 | 13.6 | 14.39 | |||
Outstanding weighted average grant date fair value, ending balance | 15.36 | 13.96 | 13.74 | |||
[1] | Vested PUs as of December 31, 2014 include an additional 139,930 shares issued for the PUs granted in March 2011 (122,490 shares) and June 2011 (17,440 shares). These shares, in addition to the shares referred to in note (c) above, were issued in March 2014 (697,853 shares) and April 2014 (432 shares) with respect to grants made in March 2011, and 77,619 shares were issued in March 2014 with respect to grants made in June 2011, after withholding shares to the extent of the minimum statutory withholding taxes. Vested PUs as of December 31, 2014 also include 1,329,270 shares for the PUs granted in March 2012 based on the compensation committee's certification of the achievement of the performance goals for the performance period based on the Company's audited financial statements. Shares in respect of these PUs were issued in January 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||
[2] | 1,033,474 shares and 130,890 shares, respectively, vested in respect of the PUs granted in March and June 2011, respectively. | |||||
[3] | 28,901 of the PUs shown as vested as of December 31, 2012 represent an adjustment for the special cash dividend with respect to 214,880 PUs that had vested as of December 31, 2011, shares in respect of which were issued in January 2013 (156,511 shares, net of minimum statutory withholding taxes). 503,969 shares vested in respect of the PUs granted in March 2010 (including the PUs issued as an adjustment to account for the special cash dividend). Shares in respect of such PUs were issued in March 2013 (334,922 shares) and April 2013 (4,679 shares), net of minimum statutory withholding taxes. 231,029 shares vested in the year ended December 31, 2012 in respect of the PUs granted in August 2010 Shares in respect of these PUs were issued in January 2014 after withholding 92,994 shares representing the minimum statutory withholding taxes. | |||||
[4] | 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, all of which were forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company's audited financial statements. | |||||
[5] | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | |||||
[6] | Of this, 418,821 RSUs were net settled upon vesting by issuing 285,706 shares (net of minimum statutory withholding taxes). 92,692 RSUs vested in the year ended December 31, 2014, shares in respect of which will be issuable on December 31, 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||
[7] | Of this, 622,465 RSUs were net settled upon vesting by issuing 424,201 shares (net of minimum statutory tax withholding). 61,057 RSUs vested in the year ended December 31, 2013, shares in respect of which were issued in January 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||
[8] | Of this, 717,448 RSUs were net settled upon vesting by issuing 506,473 shares (net of minimum statutory tax withholding). 102,000 shares vested in the year ended December 2011, shares in respect of which were issued in January 2013 (100,800 shares, net of minimum statutory withholding taxes). Shares in respect of an additional 13,719 RSUs, reflecting an adjustment to the 102,000 vested RSUs as a result of the special cash dividend, were issued in January 2013 (13,557 shares, net of minimum statutory withholding taxes). Additionally, as of December 31, 2012, 4,533 RSUs vested (including 533 RSUs reflecting an adjustment to 4,000 vested RSUs as a result of the special cash dividend), shares in respect of which were issued in April 2013 (2,059 shares, net of minimum statutory withholding taxes). 44,286 RSUs vested in the year ended December 31, 2012, shares in respect of which were issued in January 2014 after withholding 681 shares to the extent of the minimum statutory withholding taxes. | |||||
[9] | 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) | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | |||||||
Minimum statutory withholding taxes, Shares | 681 | ||||||
RSUs net settled on vesting | 418,821 | 622,465 | 714,448 | ||||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 2,059 | 100,800 | 285,706 | 424,201 | 506,473 | ||
Special cash dividend | |||||||
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | |||||||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 13,557 | ||||||
Jan-15 | |||||||
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | |||||||
Shares to be issued on vested awards other than options | 61,057 | ||||||
December 31,2015 | |||||||
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | |||||||
Shares to be issued on vested awards other than options | 92,692 | ||||||
Jan-13 | |||||||
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | |||||||
Shares to be issued on vested awards other than options | 13,719 | ||||||
Vested RSU against which shares to be issued | 102,000 | ||||||
April, 2013 | |||||||
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | |||||||
Vested RSU against which shares to be issued | 4,533 | ||||||
April, 2013 | Special cash dividend | |||||||
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | |||||||
Vested RSU against which shares to be issued | 533 | ||||||
April, 2013 | Vested Shares | |||||||
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | |||||||
Vested RSU against which shares to be issued | 4,000 | ||||||
January, 2014 | |||||||
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | |||||||
Vested RSU against which shares to be issued | 44,286 |
Summary_of_Performance_Units_A
Summary of Performance Units Activity (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Number of Share Units | ||||||||
Outstanding number of shares (Units), beginning balance | 3,913,733 | 3,041,511 | 2,271,724 | |||||
Granted, number of shares (Units) | 1,337,750 | 2,025,090 | 1,200,000 | |||||
Vested, number of shares (Units) | -1,469,200 | [1] | -1,024,434 | [2] | -772,745 | [3] | ||
Forfeited, number of shares (Units) | -2,629,463 | [4] | -426,345 | -139,809 | ||||
Adjustment for special cash dividend | 482,341 | |||||||
Addition due to achievement of higher than target performance goals | 139,930 | [1] | 297,911 | [5] | ||||
Outstanding number of shares (Units), ending balance | 1,292,750 | 3,913,733 | 3,041,511 | |||||
Expected to vest, number of shares | 1,153,277 | [6] | 1,372,781 | [6] | 2,413,073 | [6] | ||
Performance Units | ||||||||
Number of Share Units | ||||||||
Granted, number of shares (Units) | 17,740 | 122,490 | ||||||
Weighted Average Grant Date Fair Value | ||||||||
Outstanding weighted average grant date fair value, beginning balance | $16.44 | $13.26 | $15.17 | |||||
Granted, weighted average grant date fair value | $16.78 | $18.57 | $15.25 | |||||
Vested, weighted average grant date fair value | $14.50 | [1] | $12.03 | [7] | $13.28 | [3] | ||
Forfeited, weighted average grant date fair value | $17.30 | [4] | $15.19 | $15.56 | ||||
Addition due to achievement of higher than target performance goals | $12.04 | [1] | $17.50 | [5] | ||||
Outstanding weighted average grant date fair value, ending balance | $16.78 | $16.44 | $13.26 | |||||
Maximum shares eligible to receive | ||||||||
Outstanding maximum shares eligible to receive, beginning balance | 6,149,018 | 4,402,597 | 3,247,322 | |||||
Granted, maximum shares eligible to receive | 2,729,125 | 3,694,635 | 1,800,000 | |||||
Vested, maximum shares eligible to receive | -1,469,183 | [1] | -1,024,434 | [2] | -1,149,390 | [3] | ||
Forfeited, maximum shares eligible to receive | -2,664,980 | [4] | -550,078 | -190,053 | ||||
Adjustment for special cash dividend | 694,718 | |||||||
Reduction due to achievement of lower than maximum performance goals | -2,095,354 | [8] | -373,702 | [9] | ||||
Outstanding maximum shares eligible to receive, ending balance | 2,648,626 | 6,149,018 | 4,402,597 | |||||
[1] | Vested PUs as of December 31, 2014 include an additional 139,930 shares issued for the PUs granted in March 2011 (122,490 shares) and June 2011 (17,440 shares). These shares, in addition to the shares referred to in note (c) above, were issued in March 2014 (697,853 shares) and April 2014 (432 shares) with respect to grants made in March 2011, and 77,619 shares were issued in March 2014 with respect to grants made in June 2011, after withholding shares to the extent of the minimum statutory withholding taxes. Vested PUs as of December 31, 2014 also include 1,329,270 shares for the PUs granted in March 2012 based on the compensation committee's certification of the achievement of the performance goals for the performance period based on the Company's audited financial statements. Shares in respect of these PUs were issued in January 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||||
[2] | 1,033,474 shares and 130,890 shares, respectively, vested in respect of the PUs granted in March and June 2011, respectively. | |||||||
[3] | 28,901 of the PUs shown as vested as of December 31, 2012 represent an adjustment for the special cash dividend with respect to 214,880 PUs that had vested as of December 31, 2011, shares in respect of which were issued in January 2013 (156,511 shares, net of minimum statutory withholding taxes). 503,969 shares vested in respect of the PUs granted in March 2010 (including the PUs issued as an adjustment to account for the special cash dividend). Shares in respect of such PUs were issued in March 2013 (334,922 shares) and April 2013 (4,679 shares), net of minimum statutory withholding taxes. 231,029 shares vested in the year ended December 31, 2012 in respect of the PUs granted in August 2010 Shares in respect of these PUs were issued in January 2014 after withholding 92,994 shares representing the minimum statutory withholding taxes. | |||||||
[4] | 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, all of which were forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company's audited financial statements. | |||||||
[5] | Represents additional shares issued in respect of the PUs granted in March 2012 due to the achievement of higher-than-target performance. | |||||||
[6] | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | |||||||
[7] | Of this, 622,465 RSUs were net settled upon vesting by issuing 424,201 shares (net of minimum statutory tax withholding). 61,057 RSUs vested in the year ended December 31, 2013, shares in respect of which were issued in January 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||||
[8] | Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest with respect to 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, due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company's audited financial statements. | |||||||
[9] | Represents a reduction in the maximum shares eligible to vest for the PUs granted in March 2012. Outstanding PUs as of December 31, 2013 includes 483,999, 1,250,807 and 657,000 shares underlying awards granted in May 2011, March 2013 and May 2013, respectively, for which the performance conditions were not fulfilled. |
Summary_of_Performance_Units_A1
Summary of Performance Units Activity (Parenthetical) (Detail) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Apr. 30, 2013 | Mar. 31, 2013 | Jan. 31, 2013 | Jun. 30, 2011 | Mar. 31, 2011 | Apr. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Granted number of shares (Units) | 1,337,750 | 2,025,090 | 1,200,000 | |||||||||||
Forfeited, number of shares (Units) | 2,629,463 | [1] | 426,345 | 139,809 | ||||||||||
Outstanding number of shares (Units), ending balance | 1,292,750 | 3,913,733 | 3,041,511 | 2,271,724 | ||||||||||
Addition due to achievement of higher than target performance goals | 139,930 | [2] | 297,911 | [3] | ||||||||||
Performance Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Granted number of shares (Units) | 17,740 | 122,490 | ||||||||||||
Shares issued, net of minimum statutory withholding taxes | 4,679 | 334,922 | 156,511 | |||||||||||
Reduction due to achievement of lower than maximum performance goals | 2,095,354 | [4] | 373,702 | [5] | ||||||||||
Minimum statutory withholding taxes, Shares | 92,994 | |||||||||||||
Performance Units | Grant Date March 2011 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares to be issued on vested awards other than options | 1,033,474 | |||||||||||||
Shares issued, net of minimum statutory withholding taxes | 432 | 697,853 | ||||||||||||
Reduction due to achievement of lower than maximum performance goals | 333,002 | |||||||||||||
Performance Units | Grant Date June 2011 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares to be issued on vested awards other than options | 130,890 | |||||||||||||
Shares issued, net of minimum statutory withholding taxes | 77,619 | |||||||||||||
Reduction due to achievement of lower than maximum performance goals | 39,285 | |||||||||||||
Performance Units | May 2011 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Outstanding number of shares (Units), ending balance | 483,999 | |||||||||||||
Performance Units | March 2013 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Outstanding number of shares (Units), ending balance | 1,250,807 | |||||||||||||
Performance Units | May 2013 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Forfeited, number of shares (Units) | 630,000 | |||||||||||||
Reduction due to achievement of lower than maximum performance goals | 985,500 | |||||||||||||
Outstanding number of shares (Units), ending balance | 657,000 | |||||||||||||
Performance Units | May 2011 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Forfeited, number of shares (Units) | 251,427 | |||||||||||||
Reduction due to achievement of lower than maximum performance goals | 121,000 | |||||||||||||
Performance Units | March 2013 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Forfeited, number of shares (Units) | 630,000 | |||||||||||||
Reduction due to achievement of lower than maximum performance goals | 616,568 | |||||||||||||
Jan 2013 | Performance Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares to be issued on vested awards other than options | 28,901 | |||||||||||||
Jan 2013 | Performance Units | Special cash dividend | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares to be issued on vested awards other than options | 214,880 | |||||||||||||
March and April 2013 | Performance Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares to be issued on vested awards other than options | 503,969 | |||||||||||||
January, 2014 | Performance Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares to be issued on vested awards other than options | 231,029 | |||||||||||||
Jan 2015 | Performance Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares to be issued on vested awards other than options | 1,329,270 | |||||||||||||
[1] | 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, all of which were forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company's audited financial statements. | |||||||||||||
[2] | Vested PUs as of December 31, 2014 include an additional 139,930 shares issued for the PUs granted in March 2011 (122,490 shares) and June 2011 (17,440 shares). These shares, in addition to the shares referred to in note (c) above, were issued in March 2014 (697,853 shares) and April 2014 (432 shares) with respect to grants made in March 2011, and 77,619 shares were issued in March 2014 with respect to grants made in June 2011, after withholding shares to the extent of the minimum statutory withholding taxes. Vested PUs as of December 31, 2014 also include 1,329,270 shares for the PUs granted in March 2012 based on the compensation committee's certification of the achievement of the performance goals for the performance period based on the Company's audited financial statements. Shares in respect of these PUs were issued in January 2015 after withholding shares to the extent of the minimum statutory withholding taxes. | |||||||||||||
[3] | Represents additional shares issued in respect of the PUs granted in March 2012 due to the achievement of higher-than-target performance. | |||||||||||||
[4] | Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest with respect to 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, due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company's audited financial statements. | |||||||||||||
[5] | Represents a reduction in the maximum shares eligible to vest for the PUs granted in March 2012. Outstanding PUs as of December 31, 2013 includes 483,999, 1,250,807 and 657,000 shares underlying awards granted in May 2011, March 2013 and May 2013, respectively, for which the performance conditions were not fulfilled. |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||
Aug. 18, 2014 | Aug. 30, 2012 | Aug. 01, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 05, 2014 | |
Class of Stock [Line Items] | |||||||
Common shares, authorized | 500,000,000 | 500,000,000 | |||||
Common shares, par value | $0.01 | $0.01 | |||||
Preferred shares, authorized | 250,000,000 | 250,000,000 | |||||
Preferred shares, par value | $0.01 | $0.01 | |||||
Common shares, issued | 218,684,205 | 231,262,576 | |||||
Common shares, outstanding | 218,684,205 | 231,262,576 | |||||
Common stock voting right | Holders of common shares are entitled to one vote per share | ||||||
Special cash dividend, per share declared | $2.24 | ||||||
Special cash dividend declared | $501,620,000 | $501,620,000 | |||||
Special cash dividend declared, payment date | 24-Sep-12 | ||||||
Special cash dividend declared, record date | 10-Sep-12 | ||||||
Shares purchased and retired (in shares) | 17,292,842 | ||||||
Common stock shares purchased price per share | $17.50 | ||||||
Aggregate amount of common stock shares purchased | 302,625,000 | 302,625,000 | |||||
Expenses related to stock purchase | 2,543 | ||||||
Maximum | |||||||
Class of Stock [Line Items] | |||||||
Stock purchase authorized amount | $300,000,000 | ||||||
Number of shares expected to purchased | 200.00% |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of stock awards outstanding but not included in the computation of diluted earnings per common share | 3,758,000 | 2,616,000 | 3,525,625 |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share (Abstract) | |||||||||||
Net income available to Genpact Limited common shareholders | $192,002 | $229,717 | $178,216 | ||||||||
Weighted average number of common shares used in computing basic earnings per common share | 217,279,606 | 216,472,908 | 217,541,960 | 232,093,917 | 230,871,408 | 230,057,508 | 229,237,503 | 227,227,226 | 220,847,098 | 229,348,411 | 223,696,567 |
Dilutive effect of stock-based awards | 4,321,567 | 6,405,856 | 5,835,949 | ||||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 221,353,612 | 220,535,530 | 221,509,867 | 237,275,651 | 237,730,091 | 236,336,924 | 235,329,303 | 233,620,751 | 225,168,665 | 235,754,267 | 229,532,516 |
Earnings per common share attributable to Genpact Limited common shareholders, Basic | $0.20 | $0.22 | $0.23 | $0.22 | $0.20 | $0.31 | $0.28 | $0.21 | $0.87 | $1 | $0.80 |
Earnings per common share attributable to Genpact Limited common shareholders, Diluted | $0.21 | $0.21 | $0.22 | $0.21 | $0.21 | $0.30 | $0.27 | $0.20 | $0.85 | $0.97 | $0.78 |
Cost_of_Revenue_Detail
Cost of Revenue (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Component of Operating Other Cost and Expense [Abstract] | |||
Cost of revenue | $1,378,088 | $1,319,571 | $1,157,766 |
Personnel expenses | |||
Component of Operating Other Cost and Expense [Abstract] | |||
Cost of revenue | 943,105 | 904,445 | 795,525 |
Operational expenses | |||
Component of Operating Other Cost and Expense [Abstract] | |||
Cost of revenue | 390,441 | 367,213 | 313,432 |
Depreciation and amortization | |||
Component of Operating Other Cost and Expense [Abstract] | |||
Cost of revenue | $44,542 | $47,913 | $48,809 |
Recovered_Sheet9
Selling, General and Administrative Expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Component of Operating Other Cost and Expense [Abstract] | |||
Selling, general and administrative expenses | $585,646 | $484,810 | $456,611 |
Personnel expenses | |||
Component of Operating Other Cost and Expense [Abstract] | |||
Selling, general and administrative expenses | 419,299 | 347,384 | 314,587 |
Operational expenses | |||
Component of Operating Other Cost and Expense [Abstract] | |||
Selling, general and administrative expenses | 157,755 | 128,982 | 133,173 |
Depreciation and amortization | |||
Component of Operating Other Cost and Expense [Abstract] | |||
Selling, general and administrative expenses | $8,592 | $8,444 | $8,851 |
Recovered_Sheet10
Other Operating Income (Expense), Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Other Operating Income [Line Items] | |||
Other operating (income) expense | ($3,163) | ($3,259) | ($3,185) |
Provision for impairment of capital work in progress / property, plant and equipment | 2,373 | 6,214 | |
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | -3,707 | -4,670 | -3,013 |
Other operating (income) expense, net | ($6,870) | ($5,556) | $16 |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other Income (Expense), Net | ||||||
Interest income | $4,405 | $15,736 | $12,007 | |||
Interest expense | -33,800 | [1] | -38,876 | [1] | -28,121 | [1] |
Provision (created) reversed for loss on divestures | -3,487 | -459 | ||||
Other income (expense) | 2,112 | [2] | 2,319 | [2] | 2,074 | [2] |
Other income (expense), net | ($27,283) | ($24,308) | ($14,499) | |||
[1] | The years ended December 31, 2012 and 2013 include $5,534 and $3,157, respectively, representing acceleration of the amortization of debt issuance costs relating to the prepayment and termination of the previous credit facility in August 2012, and the amendment of the new credit facility in June 2013 as described in Note 14. | |||||
[2] | The year ended December 31, 2012 includes $17,227, representing 2012 recapitalization expenses, net of reimbursement from GA and OH amounting to $17,000, as described in Note 1. |
Other_Income_Expense_Net_Paren
Other Income (Expense), Net (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Other Income (Expense) [Line Items] | ||
Acceleration amortization of debt issuance costs | $3,157 | $5,534 |
Total expenses incurred for 2012 recapitalization | 17,227 | |
Reimbursement of expenses relating to 2012 recapitalization | $17,000 |
Income_Tax_Expense_Benefit_Det
Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components Of Income Tax Expense Benefit [Line Items] | |||
Income from continuing operations | $57,419 | $71,100 | $78,419 |
Unrealized gains (losses) on cash flow hedges | 48,966 | -13,542 | 12,055 |
Retirement benefits | -413 | 138 | -643 |
Total income tax expense (benefit) | $105,972 | $57,696 | $89,831 |
Components_of_Income_before_In
Components of Income before Income Taxes from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Income Before Income Tax [Line Items] | |||
Domestic (U.S.) | $19,614 | $8,199 | ($11,631) |
Foreign (Non U.S.) | 229,976 | 297,952 | 274,640 |
Income before income tax expense | $249,590 | $306,151 | $263,009 |
Income_Tax_Expense_Benefit_Att
Income Tax Expense (Benefit) Attributable to Income from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current taxes, Domestic (U.S. Federal Taxes) | $3,768 | $1,443 | $2,171 |
Current taxes, Domestic (U.S. State Taxes) | 666 | 2,152 | 899 |
Current taxes, Foreign (Non-U.S.) | 65,237 | 68,621 | 85,377 |
Current taxes, Total | 69,671 | 72,216 | 88,447 |
Deferred taxes, Domestic (U.S. Federal Taxes) | 2,761 | 8,357 | -7,819 |
Deferred taxes, Domestic (U.S. State Taxes) | -193 | -2,216 | 546 |
Deferred taxes, Foreign (Non-U.S.) | -14,820 | -7,257 | -2,755 |
Deferred Income Tax Expense (Benefit), Total | -12,252 | -1,116 | -10,028 |
Reported income tax expense (benefit) | $57,419 | $71,100 | $78,419 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Line Items] | ||||
Statutory tax rates | 35.00% | 35.00% | 35.00% | |
Tax holiday, period, in years | 10 years | |||
Number of Special Economic Zone units held by Indian subsidiary eligible for tax holiday | 14 | |||
Deferred tax assets, valuation allowance | $21,094 | $24,654 | $23,922 | $11,542 |
Deferred tax assets related to net operating loss carry-forwards | 55,592 | 74,259 | ||
Net operating loss of subsidiary, carried forward | 98,900 | |||
Excess tax deductions resulting from share-based compensation | 83,377 | |||
Additional deferred tax assets on U.S. state and local tax loss carry-forwards | 8,002 | |||
Operating loss carry-forwards, expiration date, range start | 2016 | |||
Operating loss carry-forwards, expiration date, range end | 2033 | |||
AMT credit | 22,798 | |||
AMT expiration year | 2024 | |||
Tax credit carry | 15,296 | |||
Undistributed earnings of foreign subsidiaries (non-Bermuda) | 514,823 | |||
Cash and cash equivalents held by foreign (non-Bermuda) subsidiaries | 453,976 | |||
Cash and cash equivalents | 461,788 | 571,276 | 459,228 | 408,020 |
Cash held by foreign subsidiary | 9,120 | |||
Cash and cash equivalents held by foreign (non-Bermuda) subsidiaries for which no tax will accrue on repatriation of retained earnings | 106,379 | |||
Unrecognized tax benefits that would impact effective tax rate | 21,268 | 20,901 | 20,871 | |
Unrecognized tax benefits, interest on income taxes accrued | 3,417 | 3,373 | 3,423 | |
Unrecognized tax benefits, interest expense recognized | 44 | -50 | 887 | |
Accrued penalties | 561 | 350 | 0 | |
2024 | ||||
Income Tax Disclosure [Line Items] | ||||
AMT credit | 11,709 | |||
Minimum | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, expiring date | 3/31/22 | |||
Maximum | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, expiring date | 3/31/29 | |||
Foreign Subsidiary | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets, valuation allowance | 3,000 | |||
Retained Earnings | ||||
Income Tax Disclosure [Line Items] | ||||
Repatriation of retained earnings | 8,000 | |||
Tax Holiday For First 5 Years | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 100.00% | |||
Tax Holiday from year 6 to year 10 | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 50.00% | |||
Tax Holiday from year 11 to year 15 | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 50.00% | |||
Basic Earnings Per Share | ||||
Income Tax Disclosure [Line Items] | ||||
Earnings per share effect of tax holiday | $0.16 | $0.17 | $0.11 | |
Diluted Earnings Per Share | ||||
Income Tax Disclosure [Line Items] | ||||
Earnings per share effect of tax holiday | $0.16 | $0.17 | $0.11 | |
US - Federal | ||||
Income Tax Disclosure [Line Items] | ||||
Tax loss carry forwards subject to expiration | 121,841 | |||
Foreign Tax Authority [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carry | $15,296 |
Income_Tax_Expense_Benefit_Com
Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Rate Reconciliation [Line Items] | ||||
Income before income tax expense | $249,590 | $306,151 | $263,009 | |
Statutory tax rates | 35.00% | 35.00% | 35.00% | |
Computed expected income tax expense | 87,356 | 107,153 | 92,053 | |
Foreign tax rate differential | 2,339 | 520 | 2,408 | |
Tax benefit from tax holiday | -35,868 | -39,785 | -25,554 | |
Tax exempt income | -8,572 | -7,224 | -1,077 | |
Non-deductible expenses | 5,319 | 5,637 | 959 | |
Effect of change in tax rates | 176 | -2,268 | 635 | |
Change in valuation allowance | -2,880 | 1,088 | 12,548 | |
Prior year tax expense (benefit) | -7,490 | [1] | ||
Intercompany transfers | 2,822 | |||
Other | 6,727 | 5,979 | 3,937 | |
Reported income tax expense (benefit) | $57,419 | $71,100 | $78,419 | |
[1] | During 2012, the Company filed an income tax return in a foreign jurisdiction that resulted in the recognition of a deferred tax asset for a capital loss arising from an earlier period that amounted to $7,490. It was not more likely than not that the capital loss would be realized. Therefore, a full valuation allowance was established to offset the recorded deferred tax asset. |
Income_Taxes_Additional_Inform1
Income Taxes - Additional Information (Parenthetical) (Detail) (Foreign Jurisdictions, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Foreign Jurisdictions | |
Income Tax Disclosure [Line Items] | |
Deferred tax asset for capital loss | $7,490 |
Components_of_Deferred_Tax_Bal
Components of Deferred Tax Balances (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Deferred tax assets | ||||
Net operating loss carryforwards | $55,592 | $74,259 | ||
Accrued liabilities and other expenses | 14,731 | 17,738 | ||
Provision for doubtful debts | 5,643 | 6,199 | ||
Property, plant and equipment | 4,647 | 5,110 | ||
Unrealized losses on cash flow hedges, net | 24,646 | 74,030 | ||
Share-based compensation | 11,226 | 19,673 | ||
Retirement benefits | 4,517 | 2,718 | ||
Deferred revenue | 41,024 | 38,051 | ||
Tax credit carryforwards | 36,602 | 12,299 | ||
Other | 6,906 | 7,640 | ||
Gross deferred tax assets | 205,534 | 257,717 | ||
Less: Valuation allowance | -21,094 | -24,654 | -23,922 | -11,542 |
Total deferred tax assets | 184,440 | 233,063 | ||
Deferred tax liabilities | ||||
Intangible assets | 29,653 | 29,102 | ||
Property, plant and equipment | 4,971 | 4,128 | ||
Deferred cost | 27,261 | 22,490 | ||
Investments in foreign subsidiaries not indefinitely reinvested | 17,429 | 24,948 | ||
Other | 8,415 | 7,530 | ||
Total deferred tax liabilities | 87,729 | 88,198 | ||
Net deferred tax asset | $96,711 | $144,865 |
Change_in_Total_Valuation_Allo
Change in Total Valuation Allowance for Deferred Tax Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance [Line Items] | |||
Opening valuation allowance | $24,654 | $23,922 | $11,542 |
Reduction during the year | -8,662 | -2,643 | -364 |
Addition during the year | 5,102 | 3,375 | 12,744 |
Closing valuation allowance | $21,094 | $24,654 | $23,922 |
Remaining_Tax_Loss_Carry_Forwa
Remaining Tax Loss Carry Forwards Expiration (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
US - Federal | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | $121,841 |
US - Federal | 2031 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 117,303 |
US - Federal | Deferred Tax Assets Net Operating Loss Carry Forwards Expiring In Two Thousand Thirty Three [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 4,538 |
Europe | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 45,196 |
Europe | 2015 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 56 |
Europe | 2016 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 79 |
Europe | 2017 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 147 |
Europe | 2018 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 524 |
Europe | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,416 |
Europe | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 11,202 |
Europe | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 330 |
Europe | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 30,515 |
Europe | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 405 |
Europe | 2030 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 228 |
Europe | 2031 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 219 |
Europe | 2032 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 75 |
Others | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 17,938 |
Others | 2016 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 112 |
Others | 2017 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 206 |
Others | 2018 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 75 |
Others | 2019 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 116 |
Others | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,387 |
Others | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,259 |
Others | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 414 |
Others | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 5,479 |
Others | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 4,972 |
Others | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | $3,918 |
Foreign_Tax_Credit_Expiry_Peri
Foreign Tax Credit Expiry Period (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Income Tax Disclosure [Line Items] | |
Foreign tax credit | $15,296 |
2019 | |
Income Tax Disclosure [Line Items] | |
Foreign tax credit | 106 |
2020 | |
Income Tax Disclosure [Line Items] | |
Foreign tax credit | 681 |
2021 | |
Income Tax Disclosure [Line Items] | |
Foreign tax credit | 399 |
2022 | |
Income Tax Disclosure [Line Items] | |
Foreign tax credit | 778 |
2023 | |
Income Tax Disclosure [Line Items] | |
Foreign tax credit | 683 |
2024 | |
Income Tax Disclosure [Line Items] | |
Foreign tax credit | $12,649 |
Activities_Related_to_Unrecogn
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Unrecognized Tax Benefits [Line Items] | |||
Beginning Balance | $21,832 | $21,024 | $23,712 |
Increase related to prior year tax positions, including recorded in acquisition accounting | 2,472 | 1,685 | 1,864 |
Decrease related to prior year tax positions | -1,002 | -1,952 | -3,144 |
Decrease related to prior year due to lapse of applicable statute of limitation | -753 | ||
Increase related to current year tax positions, including recorded in acquisition accounting | 442 | 2,905 | 1,514 |
Decrease related to settlements with tax authorities | -2,492 | ||
Effect of exchange rate changes | -273 | -1,830 | -430 |
Ending Balance | $22,718 | $21,832 | $21,024 |
Net_Revenues_for_Service_Type_
Net Revenues for Service Type (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $601,530 | $588,107 | $561,611 | $528,190 | $558,459 | $534,886 | $534,804 | $503,848 | $2,279,438 | $2,131,997 | $1,901,971 |
Business Process Outsourcing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 1,736,716 | 1,608,224 | 1,456,171 | ||||||||
Information Technology Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $542,722 | $523,773 | $445,800 |
Revenues_from_Clients_Based_on
Revenues from Clients Based on Industry Serviced (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $601,530 | $588,107 | $561,611 | $528,190 | $558,459 | $534,886 | $534,804 | $503,848 | $2,279,438 | $2,131,997 | $1,901,971 |
Banking, Financial Services and Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 940,345 | 888,916 | 796,655 | ||||||||
Manufacturing including Pharmaceuticals and Medical Equipment Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 796,872 | 711,184 | 640,553 | ||||||||
Technology, Healthcare and Other Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $542,221 | $531,897 | $464,763 |
Net_Revenues_from_Geographic_A
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $601,530 | $588,107 | $561,611 | $528,190 | $558,459 | $534,886 | $534,804 | $503,848 | $2,279,438 | $2,131,997 | $1,901,971 |
India | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 1,505,960 | 1,328,201 | 1,197,400 | ||||||||
Asia, other than India | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 232,349 | 224,657 | 208,149 | ||||||||
North and Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 302,515 | 359,774 | 306,260 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $238,614 | $219,365 | $190,162 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Disclosure [Line Items] | |||
Percentage of consolidated revenue not exceeded by any customer | 10.00% | 10.00% | 10.00% |
General Electric Company | |||
Segment Reporting Disclosure [Line Items] | |||
Percentage of consolidated total net revenue | 20.00% | 23.00% | 26.00% |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net by Geographic Areas (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $175,936 | $173,204 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 116,734 | 112,971 |
Asia, other than India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 13,461 | 15,199 |
North and Latin America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 36,617 | 35,391 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $9,124 | $9,643 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
General Electric Company | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Percent of ownership held | 5.00% | |||
Customer Which Has Significant Interest In The Company | ||||
Related Party Transaction [Line Items] | ||||
Recognized net revenues | $405 | |||
Customer Which Has Significant Interest In The Company | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Percent of ownership held | 5.00% | |||
Customer in Which Company's Directors has a Controlling Interest | ||||
Related Party Transaction [Line Items] | ||||
Recognized net revenues | 145 | |||
Affiliate of Significant Shareholder | ||||
Related Party Transaction [Line Items] | ||||
Recognized net revenues | 285 | 938 | ||
Customer In Which Companys Non-consolidating Affiliates | ||||
Related Party Transaction [Line Items] | ||||
Recognized net revenues | 5,580 | |||
Non-Consolidating Affiliates | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenue | 2,126 | 2,140 | 2,458 | |
Selling, general and administrative expenses, net of recovery | 613 | 505 | 532 | |
Investment in equity affiliates | 5,146 | 0 | 205 | |
Balance of investment in non-consolidating affiliates | $158 | $494 | $384 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Dec. 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 | 6,073 | 4,491 |
Outstanding Bank Guarantees | ||
Commitments and Contingencies [Line Items] | ||
Commitments and contingencies | $10,362 | $11,086 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Line Items] | |||||||||||
Total net revenues | $601,530 | $588,107 | $561,611 | $528,190 | $558,459 | $534,886 | $534,804 | $503,848 | $2,279,438 | $2,131,997 | $1,901,971 |
Gross profit | 242,331 | 233,632 | 221,486 | 203,901 | 212,617 | 205,597 | 202,090 | 192,122 | 901,350 | 812,426 | 744,205 |
Income from operations | 70,866 | 72,867 | 73,051 | 77,247 | 71,633 | 85,957 | 77,988 | 73,949 | 294,031 | 309,527 | 264,345 |
Income before loss(gain) on Equity method investment activity, net and income tax expense | 62,790 | 61,757 | 62,717 | 67,121 | 62,573 | 93,320 | 84,633 | 65,456 | 254,385 | 305,982 | 262,992 |
Net income | 45,752 | 46,666 | 48,900 | 50,853 | 49,906 | 71,431 | 65,462 | 48,252 | 192,171 | 235,051 | 184,590 |
Net income attributable to noncontrolling interest | 13 | -84 | 240 | 1,064 | 1,169 | 1,586 | 1,515 | 169 | 5,334 | 6,374 | |
Net income attributable to Genpact Limited common shareholders | $45,752 | $46,653 | $48,984 | $50,613 | $48,842 | $70,262 | $63,876 | $46,737 | $192,002 | $229,717 | $178,216 |
Basic | $0.20 | $0.22 | $0.23 | $0.22 | $0.20 | $0.31 | $0.28 | $0.21 | $0.87 | $1 | $0.80 |
Diluted | $0.21 | $0.21 | $0.22 | $0.21 | $0.21 | $0.30 | $0.27 | $0.20 | $0.85 | $0.97 | $0.78 |
Weighted average number of shares outstanding basic | 217,279,606 | 216,472,908 | 217,541,960 | 232,093,917 | 230,871,408 | 230,057,508 | 229,237,503 | 227,227,226 | 220,847,098 | 229,348,411 | 223,696,567 |
Weighted average number of shares outstanding diluted | 221,353,612 | 220,535,530 | 221,509,867 | 237,275,651 | 237,730,091 | 236,336,924 | 235,329,303 | 233,620,751 | 225,168,665 | 235,754,267 | 229,532,516 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jan. 27, 2015 | Aug. 30, 2012 | Jun. 30, 2013 |
Credit facility, maximum borrowing capacity | $925,000 | |||
Maturity date of credit facility | 30-Aug-19 | |||
Term Loan Credit Facility | ||||
Credit facility, maximum borrowing capacity | 675,000 | 675,000 | ||
Term Loan Credit Facility | Subsequent Event | ||||
Credit facility, maximum borrowing capacity | $672,500 | |||
Maturity date of credit facility | 30-Jan-15 | |||
Periodic interest payment of credit facility | 2.00% | |||
Number of credit facilities obtained | 2 |