Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | G | |
Entity Registrant Name | GENPACT LTD | |
Entity Central Index Key | 1398659 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 218,798,779 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $434,310 | $461,788 |
Accounts receivable, net | 529,618 | 525,754 |
Deferred tax assets | 35,958 | 45,486 |
Prepaid expenses and other current assets | 180,918 | 155,480 |
Total current assets | 1,180,804 | 1,188,508 |
Property, plant and equipment, net | 173,576 | 175,936 |
Deferred tax assets | 59,125 | 59,135 |
Investment in equity affiliates | 3,050 | 494 |
Intangible assets, net | 117,286 | 114,544 |
Goodwill | 1,052,498 | 1,057,214 |
Other assets | 149,930 | 146,706 |
Total assets | 2,736,269 | 2,742,537 |
Current liabilities | ||
Short-term borrowings | 135,000 | 135,000 |
Current portion of long-term debt | 4,287 | 4,288 |
Current portion of capital lease obligations | 1,423 | 1,443 |
Accounts payable | 20,416 | 15,544 |
Income taxes payable | 25,671 | 13,586 |
Deferred tax liabilities | 1,395 | 1,239 |
Accrued expenses and other current liabilities | 376,527 | 451,014 |
Total current liabilities | 564,719 | 622,114 |
Long-term debt, less current portion | 648,235 | 649,314 |
Capital lease obligations, less current portion | 2,555 | 2,660 |
Deferred tax liabilities | 5,973 | 6,671 |
Other liabilities | 176,262 | 176,642 |
Total liabilities | 1,397,744 | 1,457,401 |
Shareholders' equity | ||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | ||
Common shares, $0.01 par value, 500,000,000 authorized, 218,684,205 and 219,697,679 issued and outstanding as of December 31, 2014 and March 31, 2015, respectively | 2,194 | 2,184 |
Additional paid-in capital | 1,307,820 | 1,296,730 |
Retained earnings | 430,055 | 398,706 |
Accumulated other comprehensive income (loss) | -401,544 | -412,484 |
Genpact Limited shareholders' equity | 1,338,525 | 1,285,136 |
Noncontrolling interest | 0 | 0 |
Total equity | 1,338,525 | 1,285,136 |
Commitments and contingencies | ||
Total liabilities and equity | $2,736,269 | $2,742,537 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 219,697,679 | 218,684,205 |
Common shares, outstanding | 219,697,679 | 218,684,205 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net revenues | ||
Net revenues from services | $587,153 | $528,190 |
Cost of revenue | ||
Services | 357,476 | 324,289 |
Gross profit | 229,677 | 203,901 |
Operating expenses: | ||
Selling, general and administrative expenses | 148,748 | 122,498 |
Amortization of acquired intangible assets | 7,341 | 6,018 |
Other operating (income) expense, net | -462 | -1,862 |
Income from operations | 74,050 | 77,247 |
Foreign exchange (gains) losses, net | 7,545 | 3,593 |
Other income (expense), net | -8,567 | -6,533 |
Income before equity-method investment activity, net and income tax expense | 57,938 | 67,121 |
Loss(gain) on equity-method investment activity, net | 2,223 | -20 |
Income before income tax expense | 55,715 | 67,141 |
Income tax expense | 11,062 | 16,288 |
Net income | 44,653 | 50,853 |
Net income attributable to noncontrolling interest | 240 | |
Net income attributable to Genpact Limited shareholders | 44,653 | 50,613 |
Net income available to Genpact Limited common shareholders | $44,653 | $50,613 |
Earnings per common share attributable to Genpact Limited common shareholders | ||
Basic | $0.20 | $0.22 |
Diluted | $0.20 | $0.21 |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | ||
Basic | 219,892,695 | 232,093,917 |
Diluted | 222,347,101 | 237,275,651 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $44,653 | $50,853 |
Other comprehensive income: | ||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 21,833 | 37,992 |
Other comprehensive income (loss) | 10,940 | 56,660 |
Non controlling Interest | ||
Net income | 240 | |
Other comprehensive income: | ||
Currency translation adjustments | -5 | |
Other comprehensive income (loss) | -5 | |
Comprehensive income (loss) | 235 | |
Parent Company | ||
Net income | 44,653 | 50,613 |
Other comprehensive income: | ||
Currency translation adjustments | -11,179 | 18,593 |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 21,833 | 37,992 |
Retirement benefits, net of taxes | 286 | 80 |
Other comprehensive income (loss) | 10,940 | 56,665 |
Comprehensive income (loss) | $55,593 | $107,278 |
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, 2013 | $1,324,068 | $2,310 | $1,268,344 | $511,699 | ($459,614) | $1,329 |
Beginning balance, value (in shares) at Dec. 31, 2013 | 231,262,576 | |||||
Issuance of common shares on exercise of options (Note 15) (in shares) | 1,081,905 | |||||
Issuance of common shares on exercise of options (Note 15) | -599 | 11 | -610 | |||
Issuance of common shares under the employee stock purchase plan (Note 15) (in shares) | 40,534 | |||||
Issuance of common shares under the employee stock purchase plan (Note 15) | 608 | 608 | ||||
Net settlement on vesting of restricted share units (Note 15) | -72 | 1 | -73 | |||
Net settlement on vesting of restricted share units (Note 15), shares | 49,129 | |||||
Net settlement on vesting of performance units (Note 15) | -6,500 | 9 | -6,509 | |||
Net settlement on vesting of performance units (Note 15), shares | 913,507 | |||||
Distribution to noncontrolling interest | -899 | -899 | ||||
Stock-based compensation expense (Note 15) | 4,973 | 4,973 | ||||
Comprehensive income: | ||||||
Net income | 50,853 | 50,613 | 240 | |||
Other comprehensive income | 56,660 | 56,665 | -5 | |||
End balance, value at Mar. 31, 2014 | 1,429,092 | 2,331 | 1,266,733 | 562,312 | -402,949 | 665 |
End balance, value (in shares) at Mar. 31, 2014 | 233,347,651 | |||||
Beginning balance, value at Dec. 31, 2014 | 1,285,136 | 2,184 | 1,296,730 | 398,706 | -412,484 | |
Beginning balance, value (in shares) at Dec. 31, 2014 | 218,684,205 | 218,684,205 | ||||
Issuance of common shares on exercise of options (Note 15) (in shares) | 659,257 | 659,257 | ||||
Issuance of common shares on exercise of options (Note 15) | 5,841 | 7 | 5,834 | |||
Issuance of common shares under the employee stock purchase plan (Note 15) (in shares) | 34,162 | |||||
Issuance of common shares under the employee stock purchase plan (Note 15) | 683 | 683 | ||||
Net settlement on vesting of restricted share units (Note 15) | -78 | 1 | -79 | |||
Net settlement on vesting of restricted share units (Note 15), shares | 65,244 | |||||
Net settlement on vesting of performance units (Note 15) | 8 | -8 | ||||
Net settlement on vesting of performance units (Note 15), shares | 845,524 | |||||
Stock repurchased and retired (Note16) | -13,298 | -6 | -13,292 | |||
Stock repurchased and retired (Note16) (in shares) | -590,713 | -590,713 | ||||
Expenses related to stock purchase (Note 16) | -12 | -12 | ||||
Stock-based compensation expense (Note 15) | 4,660 | 4,660 | ||||
Comprehensive income: | ||||||
Net income | 44,653 | 44,653 | ||||
Other comprehensive income | 10,940 | 10,940 | ||||
End balance, value at Mar. 31, 2015 | $1,338,525 | $2,194 | $1,307,820 | $430,055 | ($401,544) | |
End balance, value (in shares) at Mar. 31, 2015 | 219,697,679 | 219,697,679 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net income attributable to Genpact Limited shareholders | $44,653 | $50,613 |
Net income attributable to noncontrolling interest | 240 | |
Net income | 44,653 | 50,853 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 13,517 | 12,341 |
Amortization of debt issuance costs | 1,840 | 801 |
Amortization of acquired intangible assets | 7,341 | 6,018 |
Reserve for doubtful receivables | 872 | 197 |
Unrealized (gain) loss on revaluation of foreign currency asset/liability | 5,632 | 3,295 |
Equity-method investment activity, net | 2,223 | -20 |
Stock-based compensation expense | 4,660 | 4,973 |
Deferred income taxes | -2,559 | 123 |
Others, net | -44 | 741 |
Change in operating assets and liabilities: | ||
Increase in accounts receivable | -13,449 | -7,901 |
Increase in other assets | -10,414 | -16,968 |
Increase in accounts payable | 177 | 124 |
Decrease in other liabilities | -42,376 | -47,530 |
Increase in income taxes payable | 12,215 | 7,194 |
Net cash provided by operating activities | 24,288 | 14,241 |
Investing activities | ||
Purchase of property, plant and equipment | -13,991 | -14,530 |
Proceeds from sale of property, plant and equipment | 576 | 103 |
Investment in equity affiliates | -6,701 | |
Payment for business acquisitions, net of cash acquired | -11,678 | |
Net cash used for investing activities | -31,794 | -14,427 |
Financing activities | ||
Repayment of capital lease obligations | -539 | -502 |
Payment of debt issue cost | -1,045 | |
Repayment of long-term debt | -1,687 | -1,687 |
Proceeds from Short-term borrowings | 1,410,000 | |
Repayment of Short-term borrowings | -1,410,000 | |
Proceeds from issuance of common shares under stock-based compensation plans | 6,524 | 6,061 |
Payment for net settlement of stock-based awards | -5,603 | -8,099 |
Payment of earn-out consideration | -126 | |
Distribution to noncontrolling interest | -899 | |
Payment for stock purchased and retired | -13,298 | |
Payment for expenses related to stock purchase | -12 | |
Net cash used for financing activities | -15,786 | -5,126 |
Effect of exchange rate changes | -4,186 | 1,302 |
Net decrease in cash and cash equivalents | -23,292 | -5,312 |
Cash and cash equivalents at the beginning of the period | 461,788 | 571,276 |
Cash and cash equivalents at the end of the period | 434,310 | 567,266 |
Supplementary information | ||
Cash paid during the period for interest | 6,943 | 6,143 |
Cash paid during the period for income taxes | 13,120 | 21,907 |
Property, plant and equipment acquired under capital lease | $372 | $534 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2015 | |
Organization | 1. Organization |
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. | |
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 its credit facility as described in Note 12. |
Summary_of_significant_account
Summary of significant accounting policies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Summary of significant accounting policies | 2. Summary of significant accounting policies | ||||
(a) Basis of preparation and principles of consolidation | |||||
The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |||||
The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for the interim periods are not necessarily indicative of the results for the full year. | |||||
The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. | |||||
The noncontrolling interest disclosed in the accompanying unaudited interim consolidated financial statements represents the noncontrolling partners’ interest in the operation of Genpact Netherlands B.V. and the profits or losses associated with such noncontrolling interest. 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 unaudited interim Consolidated Statements of Income. During the year ended December 31, 2014, the Company purchased such noncontrolling interest, as a result of which the Company has 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, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. | |||||
(c) 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, 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. | |||||
(d) Financial instruments and concentration of credit risk | |||||
Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, short term deposits, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 25% and 22% of receivables as of December 31, 2014 and March 31, 2015, respectively. GE accounted for 21% and 19% of revenues for the three months ended March 31, 2014 and 2015, respectively. | |||||
(e) Recently adopted accounting pronouncements | |||||
There are no recent accounting pronouncements issued by authoritative bodies that have been adopted by the Company. |
Business_acquisitions_and_dive
Business acquisitions and divestitures | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business acquisitions and divestitures | 3. Business acquisitions and divestitures | ||||
A. Acquisitions | |||||
(a) Acquisition of wealth management operations in the U.S. | |||||
On January 16, 2015, the Company acquired certain assets and assumed certain liabilities of Citibank, N.A. comprising a portion of its U.S. wealth management operations for cash consideration of $11,678. In connection with the transaction, the Company hired certain employees of the seller’s U.S. wealth management business. With this transaction, the Company has acquired an end-to-end, technology-enabled wealth management service offering. There are no contingent consideration arrangements in connection with the acquisition. | |||||
The Company recorded $9,100 in customer related intangible assets which have a weighted average amortization period of five years. Goodwill arising from the acquisition amounted to $3,400, has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The Company also assumed a pre-existing liability of the seller amounting to $822 in connection with the acquisition. Acquisition-related costs amounting to $798 have been included in selling, general and administrative expenses as incurred. The results of operations of the business acquired and the fair value of the assets acquired and liabilities assumed are included in the Company’s Consolidated Financial Statements with effect from January 16, 2015, the date of the acquisition. | |||||
(b) Acquisition of delivery center in Japan. | |||||
On November 4, 2014, the Company acquired finance and accounting service delivery centre in Japan. In connection with the acquisition, the Company entered into a five-year Business Process Outsourcing (“BPO”) Agreement. 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 will be determined based on additional services contracted by the delivery center for the period from November 4, 2014 to November 4, 2021. The total consideration paid by the Company at closing for the acquisition 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 services offerings. | |||||
As of the date of these financial statements, the purchase consideration is pending final adjustment for pension underfunding and closing date net assets value in accordance with the terms of the agreement which may result in a corresponding adjustment to goodwill during the measurement period. The Company is also evaluating certain pension assets and 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 initial 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 the 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 customer-related intangible assets in the table above have a weighted average amortization period of 7 years. | |||||
The results of operations of the delivery center 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. | |||||
(c) 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 in accordance with the terms of acquisition agreement 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 preliminary 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- 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. |
Cash_and_cash_equivalents
Cash and cash equivalents | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Cash and cash equivalents | 4. Cash and cash equivalents | ||||||||
Cash and cash equivalents as of December 31, 2014 and March 31, 2015 comprise: | |||||||||
As of December 31, | As of March 31, | ||||||||
2014 | 2015 | ||||||||
Deposits with banks | $ | 130,610 | $ | 96,737 | |||||
Other cash and bank balances | 331,178 | 337,573 | |||||||
Total | $ | 461,788 | $ | 434,310 | |||||
Accounts_receivable_net_of_res
Accounts receivable, net of reserve for doubtful receivables | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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: | |||||||||
Year ended December 31, | Three months ended | ||||||||
2014 | March 31, 2015 | ||||||||
Opening Balance as of January 1 | $ | 16,560 | $ | 15,192 | |||||
Additions due to acquisitions | 178 | — | |||||||
Additions charged to cost and expense | 3,107 | 872 | |||||||
Deductions | (4,653 | ) | (137 | ) | |||||
Closing Balance | 15,192 | 15,927 | |||||||
Accounts receivable were $540,946 and $545,545 and the reserves for doubtful receivables were $15,192 and $15,927, resulting in net accounts receivable balances of $525,754 and $529,618 as of December 31, 2014 and March 31, 2015, respectively. In addition, accounts receivable due after one year of $11,635 and $9,319 as of December 31, 2014 and March 31, 2015, respectively, are included under other assets in the Consolidated Balance Sheets. | |||||||||
Accounts receivable from related parties were $5,840 and $2,064, as of December 31, 2014 and March 31, 2015, respectively. There are no reserves for doubtful receivables in respect of amounts due from related parties. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Measurements | 6. Fair Value Measurements | ||||||||||||||||
The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2014 and March 31, 2015: | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Derivative instruments (Note a) | $ | 33,967 | $ | — | $ | 33,967 | $ | — | |||||||||
Total | $ | 33,967 | $ | — | $ | 33,967 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (Note b) | $ | 101,516 | $ | — | $ | 101,516 | $ | — | |||||||||
Total | $ | 101,516 | $ | — | $ | 101,516 | $ | — | |||||||||
As of March 31, 2015 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Derivative instruments (Note a) | $ | 52,904 | $ | — | $ | 52,904 | $ | — | |||||||||
Total | $ | 52,904 | $ | — | $ | 52,904 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (Note b) | $ | 85,559 | $ | — | $ | 85,559 | $ | — | |||||||||
Total | $ | 85,559 | $ | — | $ | 85,559 | $ | — | |||||||||
(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 underlying currencies. The quotes are taken from an independent market database. |
Derivative_financial_instrumen
Derivative financial instruments | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Derivative financial instruments | 7. Derivative financial instruments | ||||||||||||||||||||||||||||
The Company is exposed to the risk of rate fluctuations on foreign currency assets and liabilities, and foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities, and foreign currency denominated forecasted cash flows. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts. The Company enters into these contracts with counterparties which are banks or other financial institutions, and the Company considers the risk of non-performance by the counterparties not to be material. The forward foreign exchange contracts mature between zero and sixty-nine months and the forecasted transactions are expected to occur during the same period. | |||||||||||||||||||||||||||||
The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: | |||||||||||||||||||||||||||||
Notional principal amounts | Balance sheet exposure asset (liability) | ||||||||||||||||||||||||||||
(note a) | (note b) | ||||||||||||||||||||||||||||
As of December 31, | As of March 31, | As of December 31, | As of March 31, | ||||||||||||||||||||||||||
2014 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||||
Foreign exchange forward contracts denominated in: | |||||||||||||||||||||||||||||
United States Dollars (sell) Indian Rupees (buy) | $ | 1,282,800 | $ | 1,447,300 | $ | (86,913 | ) | $ | (72,126 | ) | |||||||||||||||||||
United States Dollars (sell) Mexican Peso (buy) | 5,640 | 17,250 | (514 | ) | (1,012 | ) | |||||||||||||||||||||||
United States Dollars (sell) Philippines Peso (buy) | 72,900 | 72,900 | (738 | ) | (444 | ) | |||||||||||||||||||||||
Euro (sell) United States Dollars (buy) | 98,903 | 109,774 | 5,458 | 15,756 | |||||||||||||||||||||||||
Euro (sell) Romanian Leu (buy) | 81,072 | 67,667 | 562 | 1,989 | |||||||||||||||||||||||||
Japanese Yen (sell) Chinese Renminbi (buy) | 28,586 | 34,956 | 2,766 | 2,281 | |||||||||||||||||||||||||
Pound Sterling (sell) United States Dollars (buy) | 133,435 | 117,920 | 4,278 | 9,530 | |||||||||||||||||||||||||
Australian Dollars (sell) United States Dollars (buy) | 104,362 | 94,891 | 7,552 | 11,371 | |||||||||||||||||||||||||
$ | (67,549 | ) | $ | (32,655 | ) | ||||||||||||||||||||||||
(a) | Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. | ||||||||||||||||||||||||||||
(b) | Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. | ||||||||||||||||||||||||||||
FASB guidance on Derivatives and Hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the statement of financial position. In accordance with the FASB guidance on Derivatives and Hedging, the Company designates foreign exchange forward contracts as cash flow hedges for forecasted revenues and the purchase of services. In addition to this program, the Company has derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge the foreign exchange risks related to balance sheet items such as receivables and intercompany borrowings denominated in currencies other than the underlying functional currency. | |||||||||||||||||||||||||||||
The fair value of the derivative instruments and their location in the Company’s financial statements are summarized in the table below: | |||||||||||||||||||||||||||||
Cash flow hedges | Non-designated | ||||||||||||||||||||||||||||
As of December 31, | As of March 31, | As of December 31, | As of March 31, | ||||||||||||||||||||||||||
2014 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets | $ | 16,636 | $ | 28,036 | $ | 202 | $ | 508 | |||||||||||||||||||||
Other assets | $ | 17,129 | $ | 24,360 | $ | — | $ | — | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | $ | 64,650 | $ | 48,941 | $ | 965 | $ | 195 | |||||||||||||||||||||
Other liabilities | $ | 35,901 | $ | 36,423 | $ | — | $ | — | |||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in earnings as incurred. | |||||||||||||||||||||||||||||
In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: | |||||||||||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||||||||
2014 | 2015 | ||||||||||||||||||||||||||||
Before-Tax | Tax | Net of tax | Before-Tax | Tax | Net of tax | ||||||||||||||||||||||||
amount | (Expense) or | Amount | amount | (Expense) or | Amount | ||||||||||||||||||||||||
Benefit | Benefit | ||||||||||||||||||||||||||||
Opening balance as of January 1 | $ | (205,952 | ) | $ | 72,612 | $ | (133,340 | ) | $ | (66,786 | ) | $ | 23,646 | $ | (43,140 | ) | |||||||||||||
Net gains (losses) reclassified into statement of income on completion of hedged transactions | (12,400 | ) | 4,356 | (8,044 | ) | (9,254 | ) | 3,251 | (6,003 | ) | |||||||||||||||||||
Changes in fair value of effective portion of outstanding derivatives, net | 47,238 | (17,290 | ) | 29,948 | 24,564 | (8,734 | ) | 15,830 | |||||||||||||||||||||
Gain (loss) on cash flow hedging derivatives, net | 59,638 | (21,646 | ) | 37,992 | 33,818 | (11,985 | ) | 21,833 | |||||||||||||||||||||
Closing balance as of March 31 | $ | (146,314 | ) | $ | 50,966 | $ | (95,348 | ) | $ | (32,968 | ) | $ | 11,661 | $ | (21,307 | ) | |||||||||||||
Gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: | |||||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain | Location of Gain | Amount of Gain | Location of Gain | Amount of Gain (Loss) | ||||||||||||||||||||||||
Hedging Relationships | (Loss) recognized in | (Loss) reclassified from | (Loss) reclassified | (Loss) recognized in | recognized in income on | ||||||||||||||||||||||||
OCI on Derivatives | OCI into Statement of | from OCI into | Income on | Derivatives (Ineffective | |||||||||||||||||||||||||
(Effective Portion) | Income (Effective | Statement of Income | Derivatives | Portion and Amount | |||||||||||||||||||||||||
Portion) | (Effective Portion) | (Ineffective Portion | excluded from | ||||||||||||||||||||||||||
and Amount | Effectiveness Testing) | ||||||||||||||||||||||||||||
excluded from | |||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||
Three months ended | Three months ended | Testing) | Three months ended | ||||||||||||||||||||||||||
March 31, | March 31, | March 31, | |||||||||||||||||||||||||||
2014 | 2015 | 2014 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||
Forward foreign exchange contracts | $ | 47,238 | $ | 24,564 | Revenue | $ | (670 | ) | $ | 2,495 | Foreign exchange | $ | — | $ | — | ||||||||||||||
(gains) losses, | |||||||||||||||||||||||||||||
net | |||||||||||||||||||||||||||||
Cost of revenue | (9,398 | ) | (9,427 | ) | |||||||||||||||||||||||||
Selling, general and | (2,332 | ) | (2,322 | ) | |||||||||||||||||||||||||
administrative | |||||||||||||||||||||||||||||
expenses | |||||||||||||||||||||||||||||
$ | 47,238 | $ | 24,564 | $ | (12,400 | ) | $ | (9,254 | ) | $ | — | $ | — | ||||||||||||||||
Non-designated Hedges | |||||||||||||||||||||||||||||
Derivatives not | Location of (Gain) Loss | Amount of (Gain) Loss | |||||||||||||||||||||||||||
designated as hedging | recognized in Statement of | recognized in Statement of | |||||||||||||||||||||||||||
instruments | Income on Derivatives | Income on Derivatives | |||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
2014 | 2015 | ||||||||||||||||||||||||||||
Forward foreign exchange contracts (Note a) | Foreign exchange (gains) losses, net | $ | (27 | ) | $ | (2,244 | ) | ||||||||||||||||||||||
$ | (27 | ) | $ | (2,244 | ) | ||||||||||||||||||||||||
(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 | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Prepaid expenses and other current assets | 8. Prepaid expenses and other current assets | ||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
As of December 31, | As of March 31, | ||||||||
2014 | 2015 | ||||||||
Advance taxes | $ | 61,251 | $ | 76,915 | |||||
Deferred transition costs | 40,185 | 36,148 | |||||||
Derivative instruments | 16,838 | 28,544 | |||||||
Employee advances | 5,816 | 5,084 | |||||||
Advances to suppliers | 3,358 | 1,440 | |||||||
Prepaid expenses | 12,949 | 15,775 | |||||||
Customer Acquisition Cost | 5,557 | 5,919 | |||||||
Deposits | 1,754 | 2,817 | |||||||
Others | 7,772 | 8,276 | |||||||
$ | 155,480 | $ | 180,918 | ||||||
Property_plant_and_equipment_n
Property, plant and equipment, net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, plant and equipment, net | 9. Property, plant and equipment, net | ||||||||
Property, plant and equipment, net consist of the following: | |||||||||
As of December 31, | As of March 31, | ||||||||
2014 | 2015 | ||||||||
Property, plant and equipment, gross | $ | 531,960 | $ | 540,629 | |||||
Less: Accumulated depreciation and amortization | (356,024 | ) | (367,053 | ) | |||||
Property, plant and equipment, net | $ | 175,936 | $ | 173,576 | |||||
Depreciation expense on property, plant and equipment for the three months ended March 31, 2014 and 2015 was $10,748 and $11,717, respectively. The amount of computer software amortization for the three months ended March 31, 2014 and 2015 was $2,156 and $2,362, respectively. | |||||||||
The depreciation and amortization expense set forth above includes the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $563 and $562 for the three months ended March 31, 2014 and 2015, respectively. |
Goodwill_and_intangible_assets
Goodwill and intangible assets | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and intangible assets | 10. Goodwill and intangible assets | ||||||||||||||||||||||||
The following table presents changes in goodwill for the year ended December 31, 2014 and three months ended March 31, 2015: | |||||||||||||||||||||||||
Year ended | Three months ended | ||||||||||||||||||||||||
December 31, 2014 | March 31, 2015 | ||||||||||||||||||||||||
Opening balance | $ | 953,849 | $ | 1,057,214 | |||||||||||||||||||||
Goodwill relating to acquisitions consummated during the period | 127,047 | 3,400 | |||||||||||||||||||||||
Effect of exchange rate fluctuations | (23,682 | ) | (8,116 | ) | |||||||||||||||||||||
Closing balance | $ | 1,057,214 | $ | 1,052,498 | |||||||||||||||||||||
The total amount of goodwill deductible for tax purposes is $37,628 and $40,186 as of December 31, 2014 and March 31, 2015, 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, 2014 | As of March 31, 2015 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
carrying | amortization | carrying | amortization | ||||||||||||||||||||||
amount | amount | ||||||||||||||||||||||||
Customer-related intangible assets | $ | 310,069 | $ | 228,095 | $ | 81,974 | $ | 317,795 | $ | 233,693 | $ | 84,102 | |||||||||||||
Marketing-related intangible assets | 43,137 | 23,801 | 19,336 | 43,061 | 24,585 | 18,476 | |||||||||||||||||||
Other intangible assets | 19,002 | 5,768 | 13,234 | 20,865 | 6,157 | 14,708 | |||||||||||||||||||
$ | 372,208 | $ | 257,664 | $ | 114,544 | $ | 381,721 | $ | 264,435 | $ | 117,286 | ||||||||||||||
Amortization expenses for intangible assets for the three months ended March 31, 2014 and 2015 were $6,018 and $7,341, respectively, and are disclosed in the consolidated statements of income under amortization of acquired intangible assets. |
Shortterm_borrowings
Short-term borrowings | 3 Months Ended | |
Mar. 31, 2015 | ||
Short-term borrowings | 11. Short-term borrowings | |
The Company has the following borrowing facilities: | ||
(a) | Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2014 and March 31, 2015, the limits available were $14,282 and $14,417, respectively, out of which $8,138 and $8,366 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 12. 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 Process Solutions, LLC and Felix Software Solutions Private Limited in February 2013. Additionally, this facility was utilized in part to fund 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 both December 31, 2014 and March 31, 2015, a total of $137,224 was utilized, of which $135,000 constituted funded drawdown and $2,224 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, 2014 and March 31, 2015. 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 three months ended March 31, 2015, the Company is in compliance with all of the financial covenants. | |
(c) | On January 27, 2015 and March 23, 2015, the Company obtained short-term loans in the amount of $672,500 and $737,500, respectively, from Morgan Stanley Senior Funding, Inc. in connection with certain internal reorganization transactions. These loans bore interest at a rate of 2.00% per annum and were fully repaid on January 30, 2015 and March 26, 2015, respectively. The Company recorded $1,045 in debt issuance expenses and $235 in interest with respect to the amounts borrowed under the short-term loans. |
Longterm_debt
Long-term debt | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Long-term debt | 12. 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 and (iii) for general corporate purposes of the Company, 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, 2014 and March 31, 2015, the outstanding term loan, net of debt amortization expense of $11,274 and $10,664 was $653,602 and $652,522, respectively. As of December 31, 2014 and March 31, 2015, the term loan bore 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 March 31, 2015 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 | $ | 3,210 | |||
2016 | 4,306 | ||||
2017 | 4,338 | ||||
2018 | 4,363 | ||||
2019 | 636,305 | ||||
$ | 652,522 | ||||
Accrued_expenses_and_other_cur
Accrued expenses and other current liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accrued expenses and other current liabilities | 13. Accrued expenses and other current liabilities | ||||||||
As of December 31, | As of March 31, | ||||||||
2014 | 2015 | ||||||||
Accrued expenses | $ | 114,770 | $ | 110,652 | |||||
Accrued employee cost | 143,829 | 86,378 | |||||||
Deferred transition revenue | 49,792 | 45,585 | |||||||
Statutory liabilities | 24,713 | 28,886 | |||||||
Retirement benefits | 16,807 | 20,099 | |||||||
Derivative instruments | 65,615 | 49,136 | |||||||
Advance from customers | 19,857 | 22,711 | |||||||
Earn-out consideration | 3,232 | 3,211 | |||||||
Other liabilities | 12,399 | 9,869 | |||||||
$ | 451,014 | $ | 376,527 | ||||||
Employee_benefit_plans
Employee benefit plans | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Employee benefit plans | 14. Employee benefit plans | ||||||||
The Company has employee benefit plans in the form of certain statutory and other schemes covering its employees. | |||||||||
Defined benefit plans | |||||||||
In accordance with Indian law, the Company provides a defined benefit retirement plan (the “Gratuity Plan”) covering substantially all of its Indian employees. In accordance with Mexican law, the Company provides termination benefits to all of its Mexican employees. In addition, certain of the Company’s subsidiaries in the Philippines and Japan have sponsored defined benefit retirement programs. | |||||||||
Net defined benefit plan costs for the three months ended March 31, 2014 and 2015 include the following components: | |||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Service costs | $ | 1,190 | $ | 1,384 | |||||
Interest costs | 619 | 678 | |||||||
Amortization of actuarial loss | 78 | 85 | |||||||
Expected return on plan assets | (447 | ) | (549 | ) | |||||
Net Gratuity Plan costs | $ | 1,440 | $ | 1,598 | |||||
Defined contribution plans | |||||||||
During the three months ended March 31, 2014 and 2015, the Company contributed the following amounts to defined contribution plans in various jurisdictions: | |||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
India | $ | 3,575 | $ | 3,909 | |||||
U.S. | 1,591 | 2,628 | |||||||
U.K. | 545 | 1,040 | |||||||
China | 3,537 | 3,516 | |||||||
Other Regions | 1,186 | 1,106 | |||||||
Total | 10,434 | 12,199 | |||||||
Stockbased_compensation
Stock-based compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Stock-based compensation | 15. 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 and 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, shares underlying 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. | |||||||||||||||||
Stock-based compensation costs relating to the foregoing plans during the three months ended March 31, 2014 and 2015, were $4,902 and $4,579, respectively, and have been allocated to cost of revenue and selling, general, and administrative expenses. | |||||||||||||||||
Stock options | |||||||||||||||||
Options granted are subject to a vesting requirement. 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 the three months ended March 31, 2015. No options were granted in the three months ended March 31, 2014. | |||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||
Dividend yield | — | ||||||||||||||||
Expected life (in months) | 84 | ||||||||||||||||
Risk free rate of interest for expected life | 1.99 | % | |||||||||||||||
Volatility | 34.97 | % | |||||||||||||||
A summary of stock option activity during the three months ended March 31, 2015 is set out below: | |||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||
Shares arising | Weighted average | Weighted average | Aggregate | ||||||||||||||
out of options | exercise price | remaining | intrinsic | ||||||||||||||
contractual life | value | ||||||||||||||||
(years) | |||||||||||||||||
Outstanding as of January 1, 2015 | 7,371,727 | $ | 15.44 | 5.9 | $ | — | |||||||||||
Granted | 170,000 | 22.77 | — | — | |||||||||||||
Forfeited | — | — | — | — | |||||||||||||
Expired | — | — | — | — | |||||||||||||
Exercised | (659,257 | ) | 8.86 | — | 9,487 | ||||||||||||
Outstanding as of March 31, 2015 | 6,882,470 | $ | 16.26 | 6.1 | $ | 48,967 | |||||||||||
Vested as of March 31, 2015 and expected to vest thereafter (Note a) | 6,578,643 | $ | 15.99 | 6.1 | $ | 47,743 | |||||||||||
Vested and Exercisable as of March 31, 2015 | 2,883,564 | $ | 11.94 | 3 | $ | 32,599 | |||||||||||
Weighted average grant date fair value of grants made during the period | $ | 9.15 | |||||||||||||||
(a) | Options expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
As of March 31, 2015, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $19,193, which will be recognized over the weighted average remaining requisite vesting period of 3.1 years. | |||||||||||||||||
Restricted Share Units | |||||||||||||||||
The Company has granted restricted share units, or RSUs, under the 2007 Omnibus Plan. Each RSU represents the right to receive one common share at a future date. The fair value of each RSU is the market price of one common share of the Company on the date of the grant. The RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. | |||||||||||||||||
A summary of RSUs granted during the three months ended March 31, 2015 is set out below: | |||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||
Number of Restricted Share | Weighted Average Grant Date | ||||||||||||||||
Units | Fair Value | ||||||||||||||||
Outstanding as of January 1, 2015 | 488,418 | $ | 15.36 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested (Note a) | (8,942 | ) | 14.32 | ||||||||||||||
Forfeited | (12,422 | ) | 13.93 | ||||||||||||||
Outstanding as of March 31, 2015 | 467,054 | $ | 15.41 | ||||||||||||||
Expected to vest (Note b) | 439,485 | ||||||||||||||||
(a) | Vested RSUs have been net settled upon vesting by issuing 5,417 shares (net of minimum statutory tax withholding). | ||||||||||||||||
(b) | RSUs expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
61,057 RSUs vested in the year ended December 31, 2013, in respect of which 59,827 were issued in January 2015 after withholding shares to the extent of the 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 March 31, 2015, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $3,490, which will be recognized over the weighted average remaining requisite vesting period of 2.0 years. | |||||||||||||||||
Performance Units | |||||||||||||||||
The Company also grants stock awards in the form of performance units, or PUs, under the 2007 Omnibus Plan. | |||||||||||||||||
Each PU represents the right to receive one common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. The PUs granted under the plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. Over the performance period, the number of shares to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. | |||||||||||||||||
A summary of PU activity during the three months ended March 31, 2015 is set out below: | |||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||
Number of | Weighted | Maximum Shares | |||||||||||||||
Performance Units | Average Grant | Eligible to Receive | |||||||||||||||
Date Fair Value | |||||||||||||||||
Outstanding as of January 1, 2015 | 1,292,750 | $ | 16.78 | 2,648,626 | |||||||||||||
Granted | 562,000 | 22.77 | 1,405,000 | ||||||||||||||
Vested | — | — | — | ||||||||||||||
Forfeited | (16,350 | ) | 16.78 | (24,525 | ) | ||||||||||||
Addition due to achievement of higher than target performance goals (Note a) | 51,595 | 16.78 | |||||||||||||||
Reduction due to achievement of lower than maximum performance goals (Note b) | (1,296,105 | ) | |||||||||||||||
Outstanding as of March 31, 2015 | 1,889,995 | $ | 18.56 | 2,732,996 | |||||||||||||
Expected to vest (Note c) | 1,588,070 | ||||||||||||||||
(a) | Represents additional shares awarded ranging from 0.8% to 6.6% of the target shares as a result of the achievement of higher-than-target performance for the PUs granted in April 2014. | ||||||||||||||||
(b) | Represents a 143.4% and 49.2% reduction in the maximum shares eligible to vest as a result of the certification of the level of achievement of the performance goals for the PUs granted in April 2014. | ||||||||||||||||
(c) | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||||||||||||||||
(d) | 1,329,270 PUs granted in March 2012 vested as of December 31, 2014 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 such PUs were issued in January 2015 (845,524 shares after withholding shares to the extent of the minimum statutory withholding taxes). | ||||||||||||||||
As of March 31, 2015, the total remaining unrecognized stock-based compensation costs related to PUs amounted to $22,029, which will be recognized over the weighted average remaining requisite vesting period of 2.2 years. | |||||||||||||||||
Employee Stock Purchase Plan (ESPP) | |||||||||||||||||
On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). | |||||||||||||||||
The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day in the subsequent May, August, November and February of each year. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP. | |||||||||||||||||
During the three months ended March 31, 2014 and 2015, 40,534 and 34,162 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 three months ended March 31, 2014 and 2015 was $71 and $81, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital_Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2015 | |
Capital Stock | 16. Capital Stock |
Stock Repurchase Plan | |
In February 2015, the Company’s Board of Directors authorized a program to repurchase up to $250,000 in value of the Company’s common shares. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the three months ended March 31, 2015 the Company purchased 590,713 of its common shares at a weighted average price of approximately $22.51 per share for an aggregate cash amount of approximately $13,298. The purchased shares have been retired. | |
The Company records repurchases of its common shares on the settlement date of each transaction. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares purchased. For the three months ended March 31, 2015, $12 was deducted from retained earnings as direct costs related to share repurchases. |
Earnings_per_share
Earnings per share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings per share | 17. 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, performance units and common shares to be issued under the employee stock purchase plan, have been included in the computation of diluted net earnings per share and the weighted average shares outstanding, except where the result would be anti-dilutive. | |||||||||
The number of stock options outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 3,379,764 and 3,928,000 for the three months ended March 31, 2014, and 2015, respectively. | |||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Net income available to Genpact Limited common shareholders | $ | 50,613 | $ | 44,653 | |||||
Weighted average number of common shares used in computing basic earnings per common share | 232,093,917 | 219,892,695 | |||||||
Dilutive effect of stock-based awards | 5,181,734 | 2,454,406 | |||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 237,275,651 | 222,347,101 | |||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||
Basic | $ | 0.22 | $ | 0.2 | |||||
Diluted | $ | 0.21 | $ | 0.2 | |||||
Cost_of_revenue
Cost of revenue | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Cost of revenue | 18. Cost of revenue | ||||||||
Cost of revenue consists of the following: | |||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Personnel expenses | $ | 227,027 | $ | 242,948 | |||||
Operational expenses | 86,421 | 102,797 | |||||||
Depreciation and amortization | 10,841 | 11,731 | |||||||
$ | 324,289 | $ | 357,476 | ||||||
Selling_general_and_administra
Selling, general and administrative expenses | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Selling, general and administrative expenses | 19. Selling, general and administrative expenses | ||||||||
Selling, general and administrative expenses consist of the following: | |||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Personnel expenses | $ | 89,506 | $ | 105,838 | |||||
Operational expenses | 30,929 | 40,562 | |||||||
Depreciation and amortization | 2,063 | 2,348 | |||||||
$ | 122,498 | $ | 148,748 | ||||||
Other_operating_income_expense
Other operating (income) expense, net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other operating (income) expense, net | 20. Other operating (income) expense, net | ||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Other operating (income) expense | $ | (220 | ) | $ | (462 | ) | |||
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | (1,642 | ) | — | ||||||
Other operating (income) expense, net | $ | (1,862 | ) | $ | (462 | ) | |||
Other_income_expense_net
Other income (expense), net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other income (expense), net | 21. Other income (expense), net | ||||||||
Other income (expense), net consists of the following: | |||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Interest income | $ | 1,359 | $ | 1,196 | |||||
Interest expense | (7,761 | ) | (10,221 | ) | |||||
Other income (expense) | (131 | ) | 458 | ||||||
Other income (expense), net | $ | (6,533 | ) | $ | (8,567 | ) | |||
Income_taxes
Income taxes | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Income taxes | 22. Income taxes | ||||
The Company determines the tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. | |||||
As of December 31, 2014, the Company had unrecognized tax benefits amounting to $22,718, including an amount of $21,268 which, if recognized, would impact the effective tax rate. | |||||
The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2015 to March 31, 2015: | |||||
Opening Balance at January 1 | $ | 22,718 | |||
Increase related to prior year tax positions, including recorded in acquisition accounting | 2 | ||||
Decrease related to prior year tax positions | (346 | ) | |||
Effect of exchange rate changes | (5 | ) | |||
Closing Balance at March 31 | $ | 22,369 | |||
The Company’s unrecognized tax benefits as of March 31, 2015 include an amount of $20,927 which, if recognized, would impact the effective tax rate. As of December 31, 2014 and March 31, 2015, the Company has accrued approximately $3,417 and $3,582, respectively, for interest relating to unrecognized tax benefits. During the year ended December 31, 2014 and the three months ended March 31, 2015, the company recognized approximately $44 and $165, respectively, in interest expense. As of December 31, 2014 and March 31, 2015, the Company has accrued approximately $561 and $557, respectively, for penalties. |
Related_party_transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related party transactions | 23. Related party transactions |
The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates. | |
The Company’s related party transactions can be categorized as follows: | |
Revenue from services | |
During the three months ended March 31, 2014 and March 31, 2015, the Company recognized net revenues of $71 and $99, respectively, from a client which is a significant shareholder of the Company. | |
During the three months ended March 31, 2015, the Company recognized net revenues of $2,039 from a client which is one of the non-consolidating affiliates of the Company. This amount is receivable as of March 31, 2015. | |
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 three months ended March 31, 2014 and 2015, cost of revenue includes an amount of $533 and $390, respectively. | |
Selling, general and administrative expenses | |
The Company purchases certain services from its non-consolidating affiliates mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the three months ended March 31, 2014 and 2015, selling, general and administrative expenses includes an amount of $137 and $95, respectively. Further, during the three months ended March 31, 2015, the Company entered into transactions with a significant shareholder of the Company amounting to $399 and $1,299 is outstanding as of March 31, 2015. | |
Investment in equity affiliates | |
During the three months ended March 31, 2015, the Company invested $4,777 in its non-consolidating affiliates and made payments of $6,701, of which $5,146 was outstanding as of December 31, 2014 and $1,555 represents investments made during the first quarter of 2015. As of March 31, 2015, an investment amounting to $3,222 is outstanding and has been included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. | |
As of December 31, 2014 and March 31, 2015, the Company’s investment in its non-consolidating affiliates amounted to $494 and $3,050, respectively. | |
Others | |
The Company has also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $1,744 that are receivable and have been included in prepaid expenses and other current assets in the consolidated balance sheet as of March 31, 2015. |
Commitments_and_contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and contingencies | 24. Commitments and contingencies |
Capital commitments | |
As of December 31, 2014 and March 31, 2015, the Company has committed to spend $6,073 and $4,592, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of such purchases. | |
Bank guarantees | |
The Company has outstanding bank guarantees amounting to $10,362 and $10,590 as of December 31, 2014 and March 31, 2015, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purposes of maintaining a bonded warehouse. These guarantees may be revoked by the government agencies if they suffer any losses or damage through the breach of any of the covenants contained in the agreements governing such guarantees. | |
Other commitments | |
The Company’s business process delivery centers in India are 100% export oriented units or Software Technology Parks of India units (“STPI”) under the STPI guidelines issued by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores, and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. |
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Event | 25. Subsequent Event |
Pursuant to its share repurchase program, the Company repurchased approximately 1,117,625 of its common shares between April 1, 2015 and May 8, 2015, at a weighted average price of approximately $22.56 per share for an aggregate cash amount of approximately $25,216. |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Basis of preparation and principles of consolidation | (a) Basis of preparation and principles of consolidation | ||||
The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |||||
The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for the interim periods are not necessarily indicative of the results for the full year. | |||||
The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. | |||||
The noncontrolling interest disclosed in the accompanying unaudited interim consolidated financial statements represents the noncontrolling partners’ interest in the operation of Genpact Netherlands B.V. and the profits or losses associated with such noncontrolling interest. 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 unaudited interim Consolidated Statements of Income. During the year ended December 31, 2014, the Company purchased such noncontrolling interest, as a result of which the Company has 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, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. | |||||
Business combinations | (c) Business combinations, goodwill and other intangible assets | ||||
The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired, 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. | |||||
Financial instruments and concentration of credit risk | (d) Financial instruments and concentration of credit risk | ||||
Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, short term deposits, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 25% and 22% of receivables as of December 31, 2014 and March 31, 2015, respectively. GE accounted for 21% and 19% of revenues for the three months ended March 31, 2014 and 2015, respectively. | |||||
Recently adopted accounting pronouncements | (e) Recently adopted accounting pronouncements | ||||
There are no recent accounting pronouncements issued by authoritative bodies that have been adopted by the Company. |
Summary_of_significant_account2
Summary of significant accounting policies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
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) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
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 initial 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 the 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 | |||
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 preliminary 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 |
Cash_and_cash_equivalents_Tabl
Cash and cash equivalents (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Cash And Cash Equivalents | Cash and cash equivalents as of December 31, 2014 and March 31, 2015 comprise: | ||||||||
As of December 31, | As of March 31, | ||||||||
2014 | 2015 | ||||||||
Deposits with banks | $ | 130,610 | $ | 96,737 | |||||
Other cash and bank balances | 331,178 | 337,573 | |||||||
Total | $ | 461,788 | $ | 434,310 | |||||
Accounts_receivable_net_of_res1
Accounts receivable, net of reserve for doubtful receivables (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Reserve for Doubtful Receivables | The following table provides details of the reserve for doubtful receivables recorded by the Company: | ||||||||
Year ended December 31, | Three months ended | ||||||||
2014 | March 31, 2015 | ||||||||
Opening Balance as of January 1 | $ | 16,560 | $ | 15,192 | |||||
Additions due to acquisitions | 178 | — | |||||||
Additions charged to cost and expense | 3,107 | 872 | |||||||
Deductions | (4,653 | ) | (137 | ) | |||||
Closing Balance | 15,192 | 15,927 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value of Assets and Liabilities Measured on Recurring Basis | The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2014 and March 31, 2015: | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Derivative instruments (Note a) | $ | 33,967 | $ | — | $ | 33,967 | $ | — | |||||||||
Total | $ | 33,967 | $ | — | $ | 33,967 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (Note b) | $ | 101,516 | $ | — | $ | 101,516 | $ | — | |||||||||
Total | $ | 101,516 | $ | — | $ | 101,516 | $ | — | |||||||||
As of March 31, 2015 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant Other | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Derivative instruments (Note a) | $ | 52,904 | $ | — | $ | 52,904 | $ | — | |||||||||
Total | $ | 52,904 | $ | — | $ | 52,904 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (Note b) | $ | 85,559 | $ | — | $ | 85,559 | $ | — | |||||||||
Total | $ | 85,559 | $ | — | $ | 85,559 | $ | — | |||||||||
(a) | Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. | ||||||||||||||||
(b) | Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. |
Derivative_financial_instrumen1
Derivative financial instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure | The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: | ||||||||||||||||||||||||||||
Notional principal amounts | Balance sheet exposure asset (liability) | ||||||||||||||||||||||||||||
(note a) | (note b) | ||||||||||||||||||||||||||||
As of December 31, | As of March 31, | As of December 31, | As of March 31, | ||||||||||||||||||||||||||
2014 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||||
Foreign exchange forward contracts denominated in: | |||||||||||||||||||||||||||||
United States Dollars (sell) Indian Rupees (buy) | $ | 1,282,800 | $ | 1,447,300 | $ | (86,913 | ) | $ | (72,126 | ) | |||||||||||||||||||
United States Dollars (sell) Mexican Peso (buy) | 5,640 | 17,250 | (514 | ) | (1,012 | ) | |||||||||||||||||||||||
United States Dollars (sell) Philippines Peso (buy) | 72,900 | 72,900 | (738 | ) | (444 | ) | |||||||||||||||||||||||
Euro (sell) United States Dollars (buy) | 98,903 | 109,774 | 5,458 | 15,756 | |||||||||||||||||||||||||
Euro (sell) Romanian Leu (buy) | 81,072 | 67,667 | 562 | 1,989 | |||||||||||||||||||||||||
Japanese Yen (sell) Chinese Renminbi (buy) | 28,586 | 34,956 | 2,766 | 2,281 | |||||||||||||||||||||||||
Pound Sterling (sell) United States Dollars (buy) | 133,435 | 117,920 | 4,278 | 9,530 | |||||||||||||||||||||||||
Australian Dollars (sell) United States Dollars (buy) | 104,362 | 94,891 | 7,552 | 11,371 | |||||||||||||||||||||||||
$ | (67,549 | ) | $ | (32,655 | ) | ||||||||||||||||||||||||
(a) | Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. | ||||||||||||||||||||||||||||
(b) | Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. | ||||||||||||||||||||||||||||
Fair Value of Derivative Instruments and Location in Financial Statements | The fair value of the derivative instruments and their location in the Company’s financial statements are summarized in the table below: | ||||||||||||||||||||||||||||
Cash flow hedges | Non-designated | ||||||||||||||||||||||||||||
As of December 31, | As of March 31, | As of December 31, | As of March 31, | ||||||||||||||||||||||||||
2014 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets | $ | 16,636 | $ | 28,036 | $ | 202 | $ | 508 | |||||||||||||||||||||
Other assets | $ | 17,129 | $ | 24,360 | $ | — | $ | — | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | $ | 64,650 | $ | 48,941 | $ | 965 | $ | 195 | |||||||||||||||||||||
Other liabilities | $ | 35,901 | $ | 36,423 | $ | — | $ | — | |||||||||||||||||||||
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: | ||||||||||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||||||||
2014 | 2015 | ||||||||||||||||||||||||||||
Before-Tax | Tax | Net of tax | Before-Tax | Tax | Net of tax | ||||||||||||||||||||||||
amount | (Expense) or | Amount | amount | (Expense) or | Amount | ||||||||||||||||||||||||
Benefit | Benefit | ||||||||||||||||||||||||||||
Opening balance as of January 1 | $ | (205,952 | ) | $ | 72,612 | $ | (133,340 | ) | $ | (66,786 | ) | $ | 23,646 | $ | (43,140 | ) | |||||||||||||
Net gains (losses) reclassified into statement of income on completion of hedged transactions | (12,400 | ) | 4,356 | (8,044 | ) | (9,254 | ) | 3,251 | (6,003 | ) | |||||||||||||||||||
Changes in fair value of effective portion of outstanding derivatives, net | 47,238 | (17,290 | ) | 29,948 | 24,564 | (8,734 | ) | 15,830 | |||||||||||||||||||||
Gain (loss) on cash flow hedging derivatives, net | 59,638 | (21,646 | ) | 37,992 | 33,818 | (11,985 | ) | 21,833 | |||||||||||||||||||||
Closing balance as of March 31 | $ | (146,314 | ) | $ | 50,966 | $ | (95,348 | ) | $ | (32,968 | ) | $ | 11,661 | $ | (21,307 | ) | |||||||||||||
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | Gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: | ||||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain | Location of Gain | Amount of Gain | Location of Gain | Amount of Gain (Loss) | ||||||||||||||||||||||||
Hedging Relationships | (Loss) recognized in | (Loss) reclassified from | (Loss) reclassified | (Loss) recognized in | recognized in income on | ||||||||||||||||||||||||
OCI on Derivatives | OCI into Statement of | from OCI into | Income on | Derivatives (Ineffective | |||||||||||||||||||||||||
(Effective Portion) | Income (Effective | Statement of Income | Derivatives | Portion and Amount | |||||||||||||||||||||||||
Portion) | (Effective Portion) | (Ineffective Portion | excluded from | ||||||||||||||||||||||||||
and Amount | Effectiveness Testing) | ||||||||||||||||||||||||||||
excluded from | |||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||
Three months ended | Three months ended | Testing) | Three months ended | ||||||||||||||||||||||||||
March 31, | March 31, | March 31, | |||||||||||||||||||||||||||
2014 | 2015 | 2014 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||
Forward foreign exchange contracts | $ | 47,238 | $ | 24,564 | Revenue | $ | (670 | ) | $ | 2,495 | Foreign exchange | $ | — | $ | — | ||||||||||||||
(gains) losses, | |||||||||||||||||||||||||||||
net | |||||||||||||||||||||||||||||
Cost of revenue | (9,398 | ) | (9,427 | ) | |||||||||||||||||||||||||
Selling, general and | (2,332 | ) | (2,322 | ) | |||||||||||||||||||||||||
administrative | |||||||||||||||||||||||||||||
expenses | |||||||||||||||||||||||||||||
$ | 47,238 | $ | 24,564 | $ | (12,400 | ) | $ | (9,254 | ) | $ | — | $ | — | ||||||||||||||||
Non-designated Hedges | |||||||||||||||||||||||||||||
Derivatives not | Location of (Gain) Loss | Amount of (Gain) Loss | |||||||||||||||||||||||||||
designated as hedging | recognized in Statement of | recognized in Statement of | |||||||||||||||||||||||||||
instruments | Income on Derivatives | Income on Derivatives | |||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
2014 | 2015 | ||||||||||||||||||||||||||||
Forward foreign exchange contracts (Note a) | Foreign exchange (gains) losses, net | $ | (27 | ) | $ | (2,244 | ) | ||||||||||||||||||||||
$ | (27 | ) | $ | (2,244 | ) | ||||||||||||||||||||||||
(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) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: | ||||||||
As of December 31, | As of March 31, | ||||||||
2014 | 2015 | ||||||||
Advance taxes | $ | 61,251 | $ | 76,915 | |||||
Deferred transition costs | 40,185 | 36,148 | |||||||
Derivative instruments | 16,838 | 28,544 | |||||||
Employee advances | 5,816 | 5,084 | |||||||
Advances to suppliers | 3,358 | 1,440 | |||||||
Prepaid expenses | 12,949 | 15,775 | |||||||
Customer Acquisition Cost | 5,557 | 5,919 | |||||||
Deposits | 1,754 | 2,817 | |||||||
Others | 7,772 | 8,276 | |||||||
$ | 155,480 | $ | 180,918 | ||||||
Property_plant_and_equipment_n1
Property, plant and equipment, net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, plant and equipment, net | Property, plant and equipment, net consist of the following: | ||||||||
As of December 31, | As of March 31, | ||||||||
2014 | 2015 | ||||||||
Property, plant and equipment, gross | $ | 531,960 | $ | 540,629 | |||||
Less: Accumulated depreciation and amortization | (356,024 | ) | (367,053 | ) | |||||
Property, plant and equipment, net | $ | 175,936 | $ | 173,576 | |||||
Goodwill_and_intangible_assets1
Goodwill and intangible assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Changes in Goodwill | The following table presents changes in goodwill for the year ended December 31, 2014 and three months ended March 31, 2015: | ||||||||||||||||||||||||
Year ended | Three months ended | ||||||||||||||||||||||||
December 31, 2014 | March 31, 2015 | ||||||||||||||||||||||||
Opening balance | $ | 953,849 | $ | 1,057,214 | |||||||||||||||||||||
Goodwill relating to acquisitions consummated during the period | 127,047 | 3,400 | |||||||||||||||||||||||
Effect of exchange rate fluctuations | (23,682 | ) | (8,116 | ) | |||||||||||||||||||||
Closing balance | $ | 1,057,214 | $ | 1,052,498 | |||||||||||||||||||||
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, 2014 | As of March 31, 2015 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
carrying | amortization | carrying | amortization | ||||||||||||||||||||||
amount | amount | ||||||||||||||||||||||||
Customer-related intangible assets | $ | 310,069 | $ | 228,095 | $ | 81,974 | $ | 317,795 | $ | 233,693 | $ | 84,102 | |||||||||||||
Marketing-related intangible assets | 43,137 | 23,801 | 19,336 | 43,061 | 24,585 | 18,476 | |||||||||||||||||||
Other intangible assets | 19,002 | 5,768 | 13,234 | 20,865 | 6,157 | 14,708 | |||||||||||||||||||
$ | 372,208 | $ | 257,664 | $ | 114,544 | $ | 381,721 | $ | 264,435 | $ | 117,286 | ||||||||||||||
Longterm_debt_Tables
Long-term debt (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
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 | $ | 3,210 | |||
2016 | 4,306 | ||||
2017 | 4,338 | ||||
2018 | 4,363 | ||||
2019 | 636,305 | ||||
$ | 652,522 | ||||
Accrued_expenses_and_other_cur1
Accrued expenses and other current liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accrued Expenses and Other Current Liabilities | |||||||||
As of December 31, | As of March 31, | ||||||||
2014 | 2015 | ||||||||
Accrued expenses | $ | 114,770 | $ | 110,652 | |||||
Accrued employee cost | 143,829 | 86,378 | |||||||
Deferred transition revenue | 49,792 | 45,585 | |||||||
Statutory liabilities | 24,713 | 28,886 | |||||||
Retirement benefits | 16,807 | 20,099 | |||||||
Derivative instruments | 65,615 | 49,136 | |||||||
Advance from customers | 19,857 | 22,711 | |||||||
Earn-out consideration | 3,232 | 3,211 | |||||||
Other liabilities | 12,399 | 9,869 | |||||||
$ | 451,014 | $ | 376,527 | ||||||
Employee_benefit_plans_Tables
Employee benefit plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the three months ended March 31, 2014 and 2015 include the following components: | ||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Service costs | $ | 1,190 | $ | 1,384 | |||||
Interest costs | 619 | 678 | |||||||
Amortization of actuarial loss | 78 | 85 | |||||||
Expected return on plan assets | (447 | ) | (549 | ) | |||||
Net Gratuity Plan costs | $ | 1,440 | $ | 1,598 | |||||
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the three months ended March 31, 2014 and 2015, the Company contributed the following amounts to defined contribution plans in various jurisdictions: | ||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
India | $ | 3,575 | $ | 3,909 | |||||
U.S. | 1,591 | 2,628 | |||||||
U.K. | 545 | 1,040 | |||||||
China | 3,537 | 3,516 | |||||||
Other Regions | 1,186 | 1,106 | |||||||
Total | 10,434 | 12,199 | |||||||
Stockbased_compensation_Tables
Stock-based compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 the three months ended March 31, 2015. No options were granted in the three months ended March 31, 2014. | ||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||
Dividend yield | — | ||||||||||||||||
Expected life (in months) | 84 | ||||||||||||||||
Risk free rate of interest for expected life | 1.99 | % | |||||||||||||||
Volatility | 34.97 | % | |||||||||||||||
Summary of Stock Option Activity | A summary of stock option activity during the three months ended March 31, 2015 is set out below: | ||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||
Shares arising | Weighted average | Weighted average | Aggregate | ||||||||||||||
out of options | exercise price | remaining | intrinsic | ||||||||||||||
contractual life | value | ||||||||||||||||
(years) | |||||||||||||||||
Outstanding as of January 1, 2015 | 7,371,727 | $ | 15.44 | 5.9 | $ | — | |||||||||||
Granted | 170,000 | 22.77 | — | — | |||||||||||||
Forfeited | — | — | — | — | |||||||||||||
Expired | — | — | — | — | |||||||||||||
Exercised | (659,257 | ) | 8.86 | — | 9,487 | ||||||||||||
Outstanding as of March 31, 2015 | 6,882,470 | $ | 16.26 | 6.1 | $ | 48,967 | |||||||||||
Vested as of March 31, 2015 and expected to vest thereafter (Note a) | 6,578,643 | $ | 15.99 | 6.1 | $ | 47,743 | |||||||||||
Vested and Exercisable as of March 31, 2015 | 2,883,564 | $ | 11.94 | 3 | $ | 32,599 | |||||||||||
Weighted average grant date fair value of grants made during the period | $ | 9.15 | |||||||||||||||
(a) | Options expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
Summary of Restricted Share Units Granted | A summary of RSUs granted during the three months ended March 31, 2015 is set out below: | ||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||
Number of Restricted Share | Weighted Average Grant Date | ||||||||||||||||
Units | Fair Value | ||||||||||||||||
Outstanding as of January 1, 2015 | 488,418 | $ | 15.36 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested (Note a) | (8,942 | ) | 14.32 | ||||||||||||||
Forfeited | (12,422 | ) | 13.93 | ||||||||||||||
Outstanding as of March 31, 2015 | 467,054 | $ | 15.41 | ||||||||||||||
Expected to vest (Note b) | 439,485 | ||||||||||||||||
(a) | Vested RSUs have been net settled upon vesting by issuing 5,417 shares (net of minimum statutory tax withholding). | ||||||||||||||||
(b) | RSUs expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
Summary of Performance Units Activity | A summary of PU activity during the three months ended March 31, 2015 is set out below: | ||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||
Number of | Weighted | Maximum Shares | |||||||||||||||
Performance Units | Average Grant | Eligible to Receive | |||||||||||||||
Date Fair Value | |||||||||||||||||
Outstanding as of January 1, 2015 | 1,292,750 | $ | 16.78 | 2,648,626 | |||||||||||||
Granted | 562,000 | 22.77 | 1,405,000 | ||||||||||||||
Vested | — | — | — | ||||||||||||||
Forfeited | (16,350 | ) | 16.78 | (24,525 | ) | ||||||||||||
Addition due to achievement of higher than target performance goals (Note a) | 51,595 | 16.78 | |||||||||||||||
Reduction due to achievement of lower than maximum performance goals (Note b) | (1,296,105 | ) | |||||||||||||||
Outstanding as of March 31, 2015 | 1,889,995 | $ | 18.56 | 2,732,996 | |||||||||||||
Expected to vest (Note c) | 1,588,070 | ||||||||||||||||
(a) | Represents additional shares awarded ranging from 0.8% to 6.6% of the target shares as a result of the achievement of higher-than-target performance for the PUs granted in April 2014. | ||||||||||||||||
(b) | Represents a 143.4% and 49.2% reduction in the maximum shares eligible to vest as a result of the certification of the level of achievement of the performance goals for the PUs granted in April 2014. | ||||||||||||||||
(c) | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||||||||||||||||
(d) | 1,329,270 PUs granted in March 2012 vested as of December 31, 2014 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 such PUs were issued in January 2015 (845,524 shares after withholding shares to the extent of the minimum statutory withholding taxes). |
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share | |||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Net income available to Genpact Limited common shareholders | $ | 50,613 | $ | 44,653 | |||||
Weighted average number of common shares used in computing basic earnings per common share | 232,093,917 | 219,892,695 | |||||||
Dilutive effect of stock-based awards | 5,181,734 | 2,454,406 | |||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 237,275,651 | 222,347,101 | |||||||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||
Basic | $ | 0.22 | $ | 0.2 | |||||
Diluted | $ | 0.21 | $ | 0.2 | |||||
Cost_of_revenue_Tables
Cost of revenue (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Cost of Revenue | Cost of revenue consists of the following: | ||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Personnel expenses | $ | 227,027 | $ | 242,948 | |||||
Operational expenses | 86,421 | 102,797 | |||||||
Depreciation and amortization | 10,841 | 11,731 | |||||||
$ | 324,289 | $ | 357,476 | ||||||
Selling_general_and_administra1
Selling, general and administrative expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: | ||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Personnel expenses | $ | 89,506 | $ | 105,838 | |||||
Operational expenses | 30,929 | 40,562 | |||||||
Depreciation and amortization | 2,063 | 2,348 | |||||||
$ | 122,498 | $ | 148,748 | ||||||
Other_operating_income_expense1
Other operating (income) expense, net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Operating (Income) Expense, Net | |||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Other operating (income) expense | $ | (220 | ) | $ | (462 | ) | |||
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | (1,642 | ) | — | ||||||
Other operating (income) expense, net | $ | (1,862 | ) | $ | (462 | ) | |||
Other_income_expense_net_Table
Other income (expense), net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income (Expense), Net | Other income (expense), net consists of the following: | ||||||||
Three months ended March 31, | |||||||||
2014 | 2015 | ||||||||
Interest income | $ | 1,359 | $ | 1,196 | |||||
Interest expense | (7,761 | ) | (10,221 | ) | |||||
Other income (expense) | (131 | ) | 458 | ||||||
Other income (expense), net | $ | (6,533 | ) | $ | (8,567 | ) | |||
Income_taxes_Tables
Income taxes (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions | The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2015 to March 31, 2015: | ||||
Opening Balance at January 1 | $ | 22,718 | |||
Increase related to prior year tax positions, including recorded in acquisition accounting | 2 | ||||
Decrease related to prior year tax positions | (346 | ) | |||
Effect of exchange rate changes | (5 | ) | |||
Closing Balance at March 31 | $ | 22,369 | |||
Organization_Additional_Inform
Organization - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 1 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Aug. 30, 2012 | Mar. 31, 2015 | Aug. 31, 2007 | Aug. 01, 2012 | Dec. 14, 2012 | Mar. 24, 2010 | Dec. 31, 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 | ||||||
Special cash dividend, per share declared | $2.24 | ||||||
IPO | |||||||
Organization [Line Items] | |||||||
Number of common shares sold | 17,647,059 | ||||||
General Atlantic | |||||||
Organization [Line Items] | |||||||
Percent of ownership held | 2.40% | ||||||
Oak Hill Capital Partners | |||||||
Organization [Line Items] | |||||||
Percent of ownership held | 2.40% | ||||||
General Electric Company | |||||||
Organization [Line Items] | |||||||
Percent of ownership held | 9.10% | ||||||
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) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
General Electric Company | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Percentage of accounts receivables | 22.00% | 25.00% | |
Percentage of revenues | 19.00% | 21.00% | |
Genpact Netherlands BV | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Ownership interest | 100.00% |
Estimated_Useful_Lives_of_Inta
Estimated Useful Lives of Intangible Assets Acquired (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
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 |
Recovered_Sheet2
Business Acquisitions and Divestitures - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||||
Mar. 31, 2015 | Nov. 04, 2014 | 29-May-14 | Jan. 16, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $1,052,498,000 | $1,057,214,000 | $953,849,000 | |||
Payment for business acquisitions, net of cash acquired | 11,678,000 | |||||
Japan Finance and Accounting Service Delivery | ||||||
Business Acquisition [Line Items] | ||||||
Customer related intangible assets | 7,522,000 | |||||
Acquired intangible assets, weighted average amortization period | 7 years | |||||
Goodwill | 17,094,000 | |||||
Cash and cash equivalents | 3,491,000 | |||||
Payment for business acquisitions, net of cash acquired | 7,108,000 | |||||
Tax benefit for amortization | 0 | |||||
Pharmalink Consulting Inc | ||||||
Business Acquisition [Line Items] | ||||||
Customer related intangible assets | 29,923,000 | |||||
Acquired intangible assets, weighted average amortization period | 6 years | |||||
Goodwill | 109,953,000 | |||||
Cash and cash equivalents | 2,200,000 | |||||
Payment for business acquisitions, net of cash acquired | 123,701,000 | |||||
Percentage of equity interest acquired | 100.00% | |||||
Non-current liability | 585,000 | |||||
Citibank NA | Wealth Management Business | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration to acquired certain assets and assumed certain liabilities | 11,678,000 | |||||
Contingent consideration arrangements | 0 | |||||
Customer related intangible assets | 9,100,000 | |||||
Acquired intangible assets, weighted average amortization period | 5 years | |||||
Goodwill | 3,400,000 | |||||
Liabilities assumed | 822,000 | |||||
Acquisition related cost | $798,000 |
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 |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 04, 2014 |
In Thousands, unless otherwise specified | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Goodwill | $1,052,498 | $1,057,214 | $953,849 | |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | 29-May-14 |
In Thousands, unless otherwise specified | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Goodwill | $1,052,498 | $1,057,214 | $953,849 | |
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 |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ||||
Deposits with banks | $96,737 | $130,610 | ||
Other cash and bank balances | 337,573 | 331,178 | ||
Total | $434,310 | $461,788 | $567,266 | $571,276 |
Reserve_for_Doubtful_Receivabl
Reserve for Doubtful Receivables (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Provisions for Doubtful Accounts [Line Items] | |||
Opening Balance | $15,192 | $16,560 | $16,560 |
Additions due to acquisitions | 178 | ||
Additions charged to cost and expense | 872 | 197 | 3,107 |
Deductions | -137 | -4,653 | |
Closing Balance | $15,927 | $15,192 |
Recovered_Sheet3
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross accounts receivable | $545,545,000 | $540,946,000 | |
Reserve for doubtful receivables | 15,927,000 | 15,192,000 | 16,560,000 |
Net accounts receivable | 529,618,000 | 525,754,000 | |
Accounts receivable due after one year | 9,319,000 | 11,635,000 | |
Accounts receivable from related parties | 2,064,000 | 5,840,000 | |
Reserve for doubtful receivables from related parties | $0 | $0 |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities Measured on Recurring Basis, Including Derivative Instruments (Detail) (Fair Value, Measurements, Recurring, USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative instrument, asset | $52,904 | [1] | $33,967 | [1] |
Total, assets | 52,904 | 33,967 | ||
Derivative instrument, liability | 85,559 | [2] | 101,516 | [2] |
Total, liabilities | 85,559 | 101,516 | ||
Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative instrument, asset | 52,904 | [1] | 33,967 | [1] |
Total, assets | 52,904 | 33,967 | ||
Derivative instrument, liability | 85,559 | [2] | 101,516 | [2] |
Total, liabilities | $85,559 | $101,516 | ||
[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_Sheet4
Derivative Financial Instruments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Derivative [Line Items] | |
Forward foreign exchange contracts, minimum maturity period | 0 months |
Forward foreign exchange contracts, maximum maturity period | 69 months |
Aggregate_Notional_Principal_A
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Derivative financial instrument, balance sheet exposure asset (liability) | ($32,655) | [1] | ($67,549) | [1] |
United States Dollars (sell) Indian Rupees (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 1,447,300 | [2] | 1,282,800 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -72,126 | [1] | -86,913 | [1] |
United States Dollars (sell) Mexican Peso (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 17,250 | [2] | 5,640 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -1,012 | [1] | -514 | [1] |
United States Dollars (sell) Philippines Peso (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 72,900 | [2] | 72,900 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | -444 | [1] | -738 | [1] |
Euro (sell) United States Dollars (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 109,774 | [2] | 98,903 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | 15,756 | [1] | 5,458 | [1] |
Euro (Sell) Romanian Leu (Buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 67,667 | [2] | 81,072 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | 1,989 | [1] | 562 | [1] |
Japanese Yen (sell) Chinese Renminbi (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 34,956 | [2] | 28,586 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | 2,281 | [1] | 2,766 | [1] |
Pound Sterling (sell) United States Dollars (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 117,920 | [2] | 133,435 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | 9,530 | [1] | 4,278 | [1] |
Australian Dollars (sell) United States Dollars (buy) | ||||
Derivative [Line Items] | ||||
Derivative instrument notional principal amount | 94,891 | [2] | 104,362 | [2] |
Derivative financial instrument, balance sheet exposure asset (liability) | $11,371 | [1] | $7,552 | [1] |
[1] | Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. | |||
[2] | Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company's exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. |
Fair_Value_of_Derivative_Instr
Fair Value of Derivative Instruments and Location in Financial Statements (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | $508 | $202 |
Not Designated as Hedging Instrument | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | 195 | 965 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | 28,036 | 16,636 |
Cash Flow Hedges | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | 24,360 | 17,129 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | 48,941 | 64,650 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | $36,423 | $35,901 |
Cash_Flow_Hedges_Gains_Losses_
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Opening balance, before-tax amount | ($66,786) | ($205,952) |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, before-tax amount | -9,254 | -12,400 |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | 24,564 | 47,238 |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | 33,818 | 59,638 |
Closing balance, before-tax amount | -32,968 | -146,314 |
Opening balance, tax (expense) or benefit | 23,646 | 72,612 |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, tax (expense) or benefit | 3,251 | 4,356 |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | -8,734 | -17,290 |
Gain (loss) on cash flow hedging derivatives, net | -11,985 | -21,646 |
Closing balance, tax (expense) or benefit | 11,661 | 50,966 |
Opening balance, net of tax amount | -43,140 | -133,340 |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, net of tax amount | -6,003 | -8,044 |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | 15,830 | 29,948 |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | 21,833 | 37,992 |
Closing balance, net of tax amount | ($21,307) | ($95,348) |
Gains_or_Losses_Recorded_as_Co
Gains or Losses Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $24,564 | $47,238 | ||
Amount of Gain (Loss) recognized in income on Derivative (Ineffective Portion and Amount excluded from Effectiveness Testing) | 0 | 0 | ||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -9,254 | -12,400 | ||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivative | -2,244 | -27 | ||
Revenue | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 2,495 | -670 | ||
Cost of Revenue | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -9,427 | -9,398 | ||
Selling, General and Administrative Expenses | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | -2,322 | -2,332 | ||
Foreign Exchange Contract | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | 24,564 | 47,238 | ||
Amount of Gain (Loss) recognized in income on Derivative (Ineffective Portion and Amount excluded from Effectiveness Testing) | 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 | ($2,244) | [1] | ($27) | [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_Sheet5
Prepaid Expenses and Other Current Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses And Other Current Assets [Line Items] | ||
Advance taxes | $76,915 | $61,251 |
Deferred transition costs | 36,148 | 40,185 |
Derivative instruments | 28,544 | 16,838 |
Employee advances | 5,084 | 5,816 |
Advances to suppliers | 1,440 | 3,358 |
Prepaid expenses | 15,775 | 12,949 |
Customer acquisition cost | 5,919 | 5,557 |
Deposits | 2,817 | 1,754 |
Others | 8,276 | 7,772 |
Prepaid expenses and other current assets, net | $180,918 | $155,480 |
Recovered_Sheet6
Property, Plant and Equipment, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $540,629 | $531,960 |
Less: Accumulated depreciation and amortization | -367,053 | -356,024 |
Property, plant and equipment, net | $173,576 | $175,936 |
Recovered_Sheet7
Property, Plant and Equipment, Net - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $13,517 | $12,341 |
Depreciation Expense on Property, Plant And Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | 11,717 | 10,748 |
Computer Software Amortization | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | 2,362 | 2,156 |
Effect of Reclassification of Foreign Exchange (Gains) Losses | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $562 | $563 |
Changes_in_Goodwill_Detail
Changes in Goodwill (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Opening balance | $1,057,214 | $953,849 |
Goodwill relating to acquisitions consummated during the period | 3,400 | 127,047 |
Effect of exchange rate fluctuations | -8,116 | -23,682 |
Closing balance | $1,052,498 | $1,057,214 |
Recovered_Sheet8
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill deductible for tax purposes | $40,186 | $37,628 | |
Amortization of acquired intangible assets | $7,341 | $6,018 |
Intangible_Assets_Acquired_Eit
Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $381,721 | $372,208 |
Accumulated amortization | 264,435 | 257,664 |
Net | 117,286 | 114,544 |
Customer-Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 317,795 | 310,069 |
Accumulated amortization | 233,693 | 228,095 |
Net | 84,102 | 81,974 |
Marketing-Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 43,061 | 43,137 |
Accumulated amortization | 24,585 | 23,801 |
Net | 18,476 | 19,336 |
Other Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 20,865 | 19,002 |
Accumulated amortization | 6,157 | 5,768 |
Net | $14,708 | $13,234 |
ShortTerm_Borrowings_Additiona
Short-Term Borrowings - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2013 | Aug. 30, 2012 | Mar. 23, 2015 | Jan. 27, 2015 | |
Line of Credit Facility [Line Items] | ||||||
Fund-based and non-fund-based credit facilities limits available | $14,417,000 | $14,282,000 | ||||
Utilization of credit facility for non fund-based usage | 8,366,000 | 8,138,000 | ||||
Credit facility, maximum borrowing capacity | 925,000,000 | |||||
Credit facility, amount utilized | 137,224,000 | 137,224,000 | ||||
Margin over LIBOR | 2.75% | 2.75% | ||||
Percentage of commitment fee | 0.50% | 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. | |||||
Short term loans | 135,000,000 | 135,000,000 | ||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, maximum borrowing capacity | 250,000,000 | |||||
Margin over LIBOR | 2.50% | |||||
Fund-Based Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, amount utilized | 135,000,000 | 135,000,000 | ||||
Margin over LIBOR | 2.50% | 2.50% | ||||
Non-Fund-Based Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, amount utilized | 2,224,000 | 2,224,000 | ||||
Consortium of financial institutions | ||||||
Line of Credit Facility [Line Items] | ||||||
Short term loans | 737,500,000 | 672,500,000 | ||||
Short term borrowings fixed interest rate | 2.00% | |||||
Debt issuance cost | 1,045,000 | |||||
Interest expense | $235 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | 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 | |||
Term loan amounts outstanding | 652,522 | 653,602 | ||
Debt amortization expense | 10,664 | 11,274 | ||
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Long-Term Debt | ||
2015 | $3,210 | |
2016 | 4,306 | |
2017 | 4,338 | |
2018 | 4,363 | |
2019 | 636,305 | |
Term loan amounts outstanding | $652,522 | $653,602 |
Recovered_Sheet9
Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Accrued expenses | $110,652 | $114,770 |
Accrued employee cost | 86,378 | 143,829 |
Deferred transition revenue | 45,585 | 49,792 |
Statutory liabilities | 28,886 | 24,713 |
Retirement benefits | 20,099 | 16,807 |
Derivative instruments | 49,136 | 65,615 |
Advance from customers | 22,711 | 19,857 |
Earn-out consideration | 3,211 | 3,232 |
Other liabilities | 9,869 | 12,399 |
Accrued expenses and other current liabilities, net | $376,527 | $451,014 |
Net_Defined_Benefit_Plan_Costs
Net Defined Benefit Plan Costs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | $1,384 | $1,190 |
Interest costs | 678 | 619 |
Amortization of actuarial loss | 85 | 78 |
Expected return on plan assets | -549 | -447 |
Net Gratuity Plan costs | $1,598 | $1,440 |
Amounts_Contributed_to_Defined
Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | $12,199 | $10,434 |
India | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 3,909 | 3,575 |
UNITED STATES | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 2,628 | 1,591 |
U.K. | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 1,040 | 545 |
China | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 3,516 | 3,537 |
Other Regions | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | $1,106 | $1,186 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Aug. 30, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2012 | Sep. 24, 2012 | Apr. 11, 2012 | Dec. 31, 2014 | Jan. 31, 2015 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividend per share | $2.24 | |||||||||
Stock based compensation cost | $4,579 | $4,902 | ||||||||
Options granted, contractual period, years | 10 years | |||||||||
Granted, shares arising out of options | 170,000 | 0 | ||||||||
Unrecognized stock-based compensation cost for options | 19,193 | |||||||||
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 | 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 | |||||||||
Employee Stock Option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Weighted average remaining requisite vesting period | 3 years 1 month 6 days | |||||||||
Performance Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Weighted average remaining requisite vesting period | 2 years 2 months 12 days | |||||||||
Vested, number of shares (units) | 1,329,270 | |||||||||
Unrecognized stock-based compensation cost | 22,029 | |||||||||
Restricted Share Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Weighted average remaining requisite vesting period | 2 years | |||||||||
Minimum vesting schedules, months | 3 months | |||||||||
Maximum vesting schedules, years | 4 years | |||||||||
Vested, number of shares (units) | 8,942 | [1] | 92,692 | 61,057 | ||||||
Common shares issued net of shares for tax withholdings | 5,417 | 59,827 | ||||||||
Unrecognized stock-based compensation cost | 3,490 | |||||||||
Employee Stock Purchase Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of closing price per share allowed to eligible employees to purchase through payroll deductions | 90.00% | |||||||||
Maximum percentage of employee's base salary allowed to be purchased | 15.00% | |||||||||
Maximum dollar amount of common shares allowed to be purchased | 25 | |||||||||
Common shares reserved for issuance | 4,200,000 | |||||||||
Number of common shares issued under ESPP | 34,162 | 40,534 | ||||||||
Compensation expense for ESPP | $81 | $71 | ||||||||
[1] | Vested RSUs have been net settled upon vesting by issuing 5,417 shares (net of minimum statutory tax withholding). |
Significant_Assumptions_used_i
Significant Assumptions used in Determination of Fair Value of Options Granted (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Assumptions used to Determine Fair Value Options [Line Items] | |
Dividend yield | 0.00% |
Expected life (in months) | 84 months |
Risk free rate of interest for expected life | 1.99% |
Volatility | 34.97% |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Shares arising out of options | ||||
Outstanding, shares arising out of options, beginning balance | 7,371,727 | |||
Granted, shares arising out of options | 170,000 | 0 | ||
Forfeited, shares arising out of options | 0 | |||
Expired, shares arising out of options | 0 | |||
Exercised, shares arising out of options | -659,257 | |||
Outstanding, shares arising out of options, ending balance | 6,882,470 | 7,371,727 | ||
Vested and expected to vest thereafter, shares arising out of options | 6,578,643 | [1] | ||
Vested and Exercisable, shares arising out of options | 2,883,564 | |||
Weighted average grant date fair value of grants made during the period | $9.15 | |||
Weighted average exercise price | ||||
Outstanding weighted average exercise price, beginning balance | $15.44 | |||
Granted, weighted average exercise price | $22.77 | |||
Forfeited, weighted average exercise price | $0 | |||
Expired, weighted average exercise price | $0 | |||
Exercised, weighted average exercise price | $8.86 | |||
Outstanding weighted average exercise price, ending balance | $16.26 | $15.44 | ||
Vested and expected to vest thereafter, weighted average exercise price | $15.99 | [1] | ||
Vested and Exercisable, weighted average exercise price | $11.94 | |||
Weighted average remaining contractual life (years) | ||||
Outstanding weighted average remaining contractual life (years) | 6 years 1 month 6 days | 5 years 10 months 24 days | ||
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | 6 years 1 month 6 days | [1] | ||
Vested and Exercisable, weighted average remaining contractual life (years) | 3 years | |||
Aggregate intrinsic value | ||||
Exercised, aggregate intrinsic value | $9,487 | |||
Outstanding aggregate intrinsic value, ending balance | 48,967 | |||
Vested and expected to vest thereafter, aggregate intrinsic value | 47,743 | [1] | ||
Vested and Exercisable, aggregate intrinsic value | $32,599 | |||
[1] | Options expected to vest reflect an estimated forfeiture rate. |
Summary_of_Restricted_Share_Un
Summary of Restricted Share Units Granted (Detail) (Restricted Share Units (RSUs), USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Restricted Share Units (RSUs) | ||||
Number of Restricted Share Units | ||||
Outstanding number of shares (Units), beginning balance | 488,418 | |||
Granted, number of shares (Units) | 0 | |||
Vested, number of shares (Units) | -8,942 | [1] | -92,692 | -61,057 |
Forfeited, number of shares (Units) | -12,422 | |||
Outstanding number of shares (Units), ending balance | 467,054 | 488,418 | ||
Expected to vest, number of shares (Units) | 439,485 | [2] | ||
Weighted Average Grant Date Fair Value | ||||
Outstanding weighted average grant date fair value, beginning balance | $15.36 | |||
Granted, weighted average grant date fair value | $0 | |||
Vested, weighted average grant date fair value | $14.32 | [1] | ||
Forfeited, weighted average grant date fair value | $13.93 | |||
Outstanding weighted average grant date fair value, ending balance | $15.41 | $15.36 | ||
[1] | Vested RSUs have been net settled upon vesting by issuing 5,417 shares (net of minimum statutory tax withholding). | |||
[2] | RSUs expected to vest reflect an estimated forfeiture rate. |
Summary_of_Restricted_Share_Un1
Summary of Restricted Share Units Granted (Parenthetical) (Detail) (Restricted Share Units (RSUs)) | 1 Months Ended | 3 Months Ended |
Jan. 31, 2015 | Mar. 31, 2015 | |
Restricted Share Units (RSUs) | ||
Schedule Of Activity Related To Restricted Shares And Restricted Share [Line Items] | ||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 59,827 | 5,417 |
Summary_of_Performance_Units_A
Summary of Performance Units Activity (Detail) (Performance Units, USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | ||
Performance Units | |||
Number of Share Units | |||
Outstanding number of shares (Units), beginning balance | 1,292,750 | ||
Granted, number of shares (Units) | 562,000 | ||
Vested, number of shares (Units) | -1,329,270 | ||
Forfeited, number of shares (Units) | -16,350 | ||
Addition due to achievement of higher than target performance goals | 51,595 | [1] | |
Outstanding number of shares (Units), ending balance | 1,889,995 | 1,292,750 | |
Expected to vest, number of shares | 1,588,070 | [2] | |
Weighted Average Grant Date Fair Value | |||
Outstanding weighted average grant date fair value, beginning balance | $16.78 | ||
Granted, weighted average grant date fair value | $22.77 | ||
Vested, weighted average grant date fair value | $0 | ||
Forfeited, weighted average grant date fair value | $16.78 | ||
Addition due to achievement of higher than target performance goals, weighted average grant date fair value | $16.78 | [1] | |
Reduction due to achievement of lower than maximum performance goals | $0 | [3] | |
Outstanding weighted average grant date fair value, ending balance | $18.56 | $16.78 | |
Maximum shares eligible to receive | |||
Outstanding maximum shares eligible to receive, beginning balance | 2,648,626 | ||
Granted, maximum shares eligible to receive | 1,405,000 | ||
Vested, maximum shares eligible to receive | 0 | ||
Forfeited, maximum shares eligible to receive | -24,525 | ||
Reduction due to achievement of lower than maximum performance goals, maximum shares eligible to receive | -1,296,105 | [3] | |
Outstanding maximum shares eligible to receive, ending balance | 2,732,996 | 2,648,626 | |
[1] | Represents additional shares awarded ranging from 0.8% to 6.6% of the target shares as a result of the achievement of higher-than-target performance for the PUs granted in April 2014. | ||
[2] | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||
[3] | Represents a 143.4% and 49.2% reduction in the maximum shares eligible to vest as a result of the certification of the level of achievement of the performance goals for the PUs granted in April 2014. |
Summary_of_Performance_Units_A1
Summary of Performance Units Activity (Parenthetical) (Detail) (Performance Units) | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested, number of shares (units) | 1,329,270 | ||
Common shares issued net of shares for tax withholdings | 845,524 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Addition due to achievement of higher than target performance, percentage | 0.80% | ||
Reduction due to achievement of lower than maximum performance, percentage | 49.20% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Addition due to achievement of higher than target performance, percentage | 6.60% | ||
Reduction due to achievement of lower than maximum performance, percentage | 143.40% |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Feb. 28, 2015 |
Class of Stock [Line Items] | ||
Shares repurchased and retired (in shares) | 590,713 | |
Common stock shares repurchased price per share | $22.51 | |
Aggregate amount of common stock shares repurchased | $13,298 | |
Expenses related to stock repurchase | 12 | |
Share Repurchase Program | ||
Class of Stock [Line Items] | ||
Aggregate amount of common stock shares repurchased | 13,298 | |
Maximum | ||
Class of Stock [Line Items] | ||
Stock repurchase authorized amount | $250,000 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of stock options outstanding but not included in the computation of diluted earnings per common share | 3,928,000 | 3,379,764 |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share (Abstract) | ||
Net income available to Genpact Limited common shareholders | $44,653 | $50,613 |
Weighted average number of common shares used in computing basic earnings per common share | 219,892,695 | 232,093,917 |
Dilutive effect of stock-based awards | 2,454,406 | 5,181,734 |
Weighted average number of common shares used in computing dilutive earnings per common share | 222,347,101 | 237,275,651 |
Earnings per common share attributable to Genpact Limited common shareholders, Basic | $0.20 | $0.22 |
Earnings per common share attributable to Genpact Limited common shareholders, Diluted | $0.20 | $0.21 |
Cost_of_Revenue_Detail
Cost of Revenue (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Component of Operating Other Cost and Expense [Abstract] | ||
Cost of revenue | $357,476 | $324,289 |
Personnel expenses | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Cost of revenue | 242,948 | 227,027 |
Operational expenses | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Cost of revenue | 102,797 | 86,421 |
Depreciation and amortization | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Cost of revenue | $11,731 | $10,841 |
Recovered_Sheet10
Selling, General and Administrative Expenses (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Component of Operating Other Cost and Expense [Abstract] | ||
Selling, general and administrative expenses | $148,748 | $122,498 |
Personnel expenses | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Selling, general and administrative expenses | 105,838 | 89,506 |
Operational expenses | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Selling, general and administrative expenses | 40,562 | 30,929 |
Depreciation and amortization | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Selling, general and administrative expenses | $2,348 | $2,063 |
Recovered_Sheet11
Other Operating Income (Expense), Net (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Components of Other Operating Income [Line Items] | ||
Other operating (income) expense | ($462) | ($220) |
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | -1,642 | |
Other operating (income) expense, net | ($462) | ($1,862) |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Income (Expense), Net | ||
Interest income | $1,196 | $1,359 |
Interest expense | -10,221 | -7,761 |
Other income (expense) | 458 | -131 |
Other income (expense), net | ($8,567) | ($6,533) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Line Items] | ||
Amount of unrecognized tax benefits | $22,369 | $22,718 |
Unrecognized tax benefits that would impact effective tax rate | 20,927 | 21,268 |
Unrecognized tax benefits, interest on income taxes accrued | 3,582 | 3,417 |
Unrecognized tax benefits, interest expense recognized | 165 | 44 |
Accrued penalties | $557 | $561 |
Activities_Related_to_Unrecogn
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Schedule of Unrecognized Tax Benefits [Line Items] | |
Beginning Balance | $22,718 |
Increase related to prior year tax positions, including recorded in acquisition accounting | 2 |
Decrease related to prior year tax positions | -346 |
Effect of exchange rate changes | -5 |
Ending Balance | $22,369 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Related Party Transaction [Line Items] | |||
Investment in equity affiliates outstanding | $3,050 | $494 | |
Significant Shareholder of Company | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | 99 | 71 | |
Non-Consolidating Affiliates | |||
Related Party Transaction [Line Items] | |||
Cost of revenue | 390 | 533 | |
Selling, general and administrative expenses, net of recovery | 95 | 137 | |
Selling, general and administrative expenses, net of recovery outstanding | 1,299 | ||
Investment in equity affiliates | 4,777 | 1,555 | |
Balance of investment in non-consolidating affiliates | 3,050 | 494 | |
Investment in equity affiliates outstanding | 6,701 | 5,146 | |
Non-Consolidating Affiliates | Prepaid Expenses and Other Current Assets | |||
Related Party Transaction [Line Items] | |||
Reimbursements receivable | 1,744 | ||
Non-Consolidating Affiliates | Accrued Expenses and Other Current Liabilities | |||
Related Party Transaction [Line Items] | |||
Balance of investment in non-consolidating affiliates | 3,222 | ||
Non-Consolidating Affiliates | Significant Shareholder of Company | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative expenses, net of recovery | 399 | ||
Affiliate of Significant Shareholder | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | $2,039 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 4,592 | 6,073 |
Outstanding Bank Guarantees | ||
Commitments and Contingencies [Line Items] | ||
Commitments and contingencies | $10,590 | $10,362 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | 8-May-15 |
Subsequent Event [Line Items] | ||
Shares repurchased and retired (in shares) | 590,713 | |
Common stock shares repurchased price per share | $22.51 | |
Aggregate amount of common stock shares repurchased | $13,298 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Shares repurchased and retired (in shares) | 1,117,625 | |
Common stock shares repurchased price per share | $22.56 | |
Aggregate amount of common stock shares repurchased | $25,216 |